Miami Today: Week of Thursday, May 14, 2015

WEEK OF THURSDAY, MAY 14, 2015

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Destination status skyrocketing Design District’s prices, pg. 15 BOOMING CONSTRUCTION: Contracts for future construction in South Florida more than doubled in March, rising from $400.6 million to $801.8 million Dodge Data & Analytics reports. For the first three months of the year, the gain is solid but less pronounced, up 39% from $1.65 billion last year to $2.3 billion this year.

For the year to date, residential contracts for future work rose 30% while all other contracts increased 57%.

Parking agency’s downtown site may get apartments, retail, pg. 17

THE ACHIEVER

Barriers in court, state

MOUNTIES IN MIAMI: A county committee was to discuss this week a study that could put police back on horses in Miami-Dade. A resolution

by Commission Javier Souto would ask the mayor’s office to study horseback patrols and report within 90 days. The county disbanded its mounted patrol in 2009. The study would look at using mounted patrols to control crowds and deter crime, The study would also determine where funds for a mounted patrol would come from and calculate their costs.

The measure was to come before the committee in April but consideration was deferred because Mr. Souto was absent.

COMPENSATION COSTS RISE: South Florida’s employee compensation costs rose 2.1% in March from a year earlier, trailing most of the largest 15 metropolitan areas, according to figures released last week by the US Bureau of Labor Statistics. Compensation costs rose 4.4% in the 12-month period in Seattle, which was the highest percentage gain in the nation. Other big gainers: Atlanta 3.9%, Boston 3.6%, Chicago and Los Angeles 3.3%, and San Jose, CA, 2.9%. In Detroit alone did costs fall, onetenth of one percent.

UPGRADE TAKES OFF: Miami-Dade County commissioners voted 11-0 last week to allow Miami International Airport plans to spend $212 million to upgrade its Central Terminal’s Concourse E. Commissioners accepted $4.6 million from the Florida Department of Transportation to help fund the project. The state department already had $22 million in its five-year work plan ticketed for the project, leaving the county Aviation Department to fund about almost $186 million from its reserve maintenance budgets to finish the job. Items included in the plans for Concourse E and Concourse E satellite include four new passenger bridges, nine new passenger elevators, air conditioning replacement and refurbishing, reroofing and installation of efficient LED lighting fixtures.

THE LINEUP: County commissioners last week voted 11-0 to direct Mayor Carlos Gimenez to report within 60 days every senior position expected to be vacated by retirements in the next three years.

R. Alexander Acosta

Photo by Marlene Quaroni

Focus on FIU law school, US Century Bank quality The profile is on Page 4

Water bonds get A+ rating but serious warnings Miami-Dade’s race to meet a federal consent decree and bolster creaky water and sewer systems by spending $13.5 billion within a decade in the largest capital upgrade in county history won a favorable bond grade coupled with serious warnings last week.

Fitch Ratings, which the county pays to grade its bond debt, gave A+ ratings to more than $2 billion in current water and sewer bonds and $480 million in debt that the county is to issue next week while hinting that the county might not raise rates fast enough to repay bondholders.

Fitch headed one warning “Weak Financial Forecasting.” Fitch analysts wrote, “The absence of well-defined financial policies coupled with the lack of timely longterm financial and rate forecasts is a growing concern, particularly as debt issuance and capital spending ramps up over the coming years.”

Despite warnings, the rating stayed at A+, far better than in February 2013, when Fitch downgraded county water and sewer bonds from A+ to AA-. The lower the grade, the more interest the county pays to borrow.

AGENDA

No cameras ticketed for red light use

$500,000 rate-setting study still afloat, pg. 2 “Timely execution of the [capital improveThe system’s debt now is $2,952 for every customer, up from $2,699 in February 2013. At that time, Fitch warned that debt was expected to climb as high as $3,500 per customer within five years. Last week, Fitch warned that the five-year outlook has soared past $6,200.

That’s because the county is pushing multiple water and sewer upgrades through the pipeline simultaneously. An internal report going to county commissioners this week showed 12 separate projects for system upgrades were in procurement in April, with 32 more to be advertised within 90 days.

The county this fiscal year has budgeted $305.5 million for that broad spectrum of upgrades, the internal report says, but only $105.4 million had been spent in the first six months.

Fitch noted that the number and pace of improvements – many due under the $1.6 billion consent decree – is a major concern.

“The department must execute a multitude of capital projects simultaneously to meet regulatory deadlines,” Fitch wrote.

ment program] is viewed as a risk. Recent upper management changes appear designed to bring additional expertise to the department in this area. However, the absence of defined financial policies and internal long-term financial and rate forecasting are concerning, given the magnitude of the capital needs.”

Department leadership changed this year when Bill Johnson was named head of the state’s Enterprise Florida economic development team. He was replaced by Lester Sola, who had been directing the county’s Internal Services Department.

The Water and Sewer Department is the Southeast’s largest utility, the county says, with more than 429,000 customers, water services wholesaled to 15 municipalities and sewer services wholesaled to 13.

After two years of flat rates, water and sewer rate increases were 8% in fiscal 2014 and 6% this year. While the department needs increases of about 6% a year through the next decade to repay rapidly rising debt, Fitch notes that the real figure can only be set when each county budget is final.

Red-light cameras at MiamiDade intersections are getting a stop sign from officials before they ever click.

A memo from Deputy Mayor Russell Benford asks a county committee this week to junk proposals for the first 50 redlight cameras under county control because the program has both courts and state legislators seeing red.

More than 80 Florida cities have been using cameras to ticket red-light scofflaws with a fine of $158, $75 of it going to the city, the rest to the state. It has become a profitable tool, with the City of Miami’s take Florida’s highest in 2013 at $5.8 million.

The county waited until December 2013 to seek proposals from camera vendors, who were to run the program for 40% of fines off the top. Proposals were due Jan. 24, 2014 – but the county put on the brakes and didn’t choose.

Since then, courts have found that red-light cameras in Hollywood were illegal because the camera vendor, not police, was deciding who had run lights illegally, and 24,000 Broward tickets got tossed out.

Meanwhile, a June 15 court case is pending over the legality of red-light ticketing in MiamiDade, a separate federal classaction suit here against 38 cities and counties could require refunds on past red-light tickets, and legislative opponents of the system are awaiting the next session in Tallahassee.

In fiscal 2013-14, localities got about $50 million of Florida’s $105 million in red-light camera fines. About half the $50 million went to the camera vendors, according to a 2014 study by state legislative analysts.

If Miami-Dade commissioners do toss out vendors’ bids, it wouldn’t prejudice them if the county ever decided to use redlight cameras, Mr. Benford’s memo said. Nor would the county action affect cities’ redlight camera use.

TEED OFF COMMISSIONERS QUESTION T-SHIRT SPENDING ... 2

COUNTY REJECTS LIMITS ON REDEVELOPMENT AGENCIES ... 10

WAIT FOR GAMBLING LAWS STALLS CASINO’S BUILDING ...

3

COMMISSION TRIES TO ALTER COUNTY BUDGET PROCESS ... 11

VIEWPOINT: TALE OF TWO ACTIONS ON PROTECTIONISM ...

6

COMMERCIAL REALTY TAX CUT AWAITING LEGISLATURE ... 15

TRAFFIC DILEMMA AS BOAT SHOW, ART FEST COINCIDE ...

9

OUR WORKFORCE HOUSING CALLED 10,000 UNITS SHORT ... 22

WEEK OF THURSDAY, MAY 14, 2015

TODAY’S NEWS

MIAMI TODAY

3

Wait for new gambling law stalls development by casino

BY JOHN CHARLES ROBBINS

As owners await new Florida gambling legislation, it will probably be another year or more before commercial land across the street from Magic City Casino in Miami sees a construction crane.

That’s the assessment from Isadore Havenick, vice president of political affairs for Magic City Casino.

The vacant parcels have been used for years for parking by nearby commercial enterprises, which lease the spaces.

There were plans to build a new full-service restaurant there, but those aspirations remain unfulfilled, due in large part to inaction by state lawmakers, according to Mr. Havenick. The legislature adjourned abruptly May 1 without acting on broad legislation that could have changed the face of gambling in Florida.

The company doesn’t want to develop the vacant lots next door to the casino until the Legislature takes some action to provide new opportunities to gaming industry, Mr. Havenick said.

“We have spoken with a couple restaurants,” Mr. Havenick said of the vacant lots, with an eye toward cementing a commitment, but they cannot “due to the fact, there’s no legislation for a fifth year in a row telling how our business will be operating in the future, so most of our plans are on hold.”

The vacant property is at 400, 408 and 440 NW 36th Court, a portion of 460 NW 36th Court and a portion of 427 NW 37th Ave. The lots are adjacent to a long-established residential area.

Last summer, West Flagler Associates LTD, which owns and runs the casino as well as dog races at the site, requested a rezoning and a land use change to allow for commercial redevelopment.

West Flagler Associates requested the land use designation be changed from duplex

Photos by Maxine Usdan

Land that the Magic City Casino targets for development is now a parking lot as new laws are awaited.

residential to restricted commercial to create two blocks suitable for commercial development, potentially a full-service restaurant.

Magic City Casino, west of Little Havana, offers slot machines, poker and live and simulcast dog racing. The facility also hosts occasional entertainment acts.

The company since the early 1950s has owned these two vacant blocks, at times using them for parking to serve its Flagler Dog Track, the flea market at the dog track in 1990s, and occasionally for the casino, the successor to the dog track, according to the rezoning application.

In a cover letter to the city’s Planning and Zoning Department supportive of the land changes, an attorney for the company said an earlier road closure was related to these changes.

The slice of Northwest Fourth Terrace between the properties was closed as part of the replatting of the two blocks fronting Northwest 37th Avenue to create a commercial tract big enough to develop com-

mercially, “potentially a full-service restaurant to service the growing number of visitors and residents of the area,” the application said.

“This portion of Northwest 37th Avenue, which is a major section line road, is one of the gateways to Miami International Airport,” wrote the company’s attorney. “Development of this parcel with commercial/restaurant uses is appropriate and desirable to serve this area.”

The company said that the buffer and design safeguards of Miami 21 – the city’s zoning code – will ensure that any commercial development will be appropriately designed to protect the surrounding residential areas.

The portions of the two parcels that front on Northwest 37th Avenue were already zoned for restricted commercial uses.

City commissioners approved the request, but there’s been no

construction.

Mr. Havenick said another legislative session has come and gone in Tallahassee with no new legislation for private gaming operations.

Until they have a better idea of what the future holds for Magic City Casino, he said last week, those lots across the street will remain vacant.

Eventually those lots will be developed, but for now they’re “waiting to see,” said Mr. Havenick.

“The future the gaming business is in limbo… We’re waiting for some certainty, and we can’t make the best decisions for what will go there on that property until we know what happens [to the casino],” he said.

Asked what his vision is for the commercial development across the street, he said it’s hard to say.

“We don’t know, until we know what we can do on the casino piece,” he said. “We want everything to work in synergy with each other… We want everything to work together.

“We want to do something there and get the property developed and get people to work,” Mr, Havenick said, “but until the state Legislature gives us a direction going forward, we’re handcuffed.”

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Development is planned, said Isadore Havenick, but “until the state Legislature gives us a direction going forward, we’re handicapped.”

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, MAY 14, 2015

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

State’s taxpayers win, but county’s take a protectionist hit Fair competition in government contracts got a win at the state level last week but took another hit in MiamiDade.

Legislative leaders sent to Gov. Rick Scott a bill on Thursday to prohibit using local prefer- Michael Lewis ences in construction contract selections when half or more of the costs will be paid from state-appropriated funds.

But in Miami-Dade, commissioners voted unanimously to create a local preference for goods made or grown here when the county is the buyer.

Local preferences always sound like wonderful agents to build up the local economy but they have one serious drawback – they actually tear it down. A few local businesses wind up economic winners but every other business and the taxpayers lose.

Serious research by the Virginia Association of Government Purchasing found a long list of cons when local businesses get a head start in any competition for government contracts.

For one, government officials by design might not buy from the most efficient source because outsiders don’t get a fair shot at contracts.

Local buying also reduces the pool of bidders, and it’s frequently the best

vendors who don’t compete, raising the prices government pays for inferior services and goods.

Those increased costs taken as a whole might in fact lead to higher local taxes, the Virginia study found.

Further, one local preference leads to others in other communities in retaliation or for self protection, so that in fact Miami-Dade firms might be at a disadvantage elsewhere. The Virginia study stretches that thought to the concept that businesses might actually avoid moving here rather than risk retaliation when they bid elsewhere.

Because the Virginia team was also looking from an inside government viewpoint, it noted the added costs to government in administering the local preference program, including the painstaking gathering of proof that goods are in fact produced locally – after all, just because it doesn’t say “Made in China” doesn’t mean it was really made in Miami-Dade. How do you know for sure?

The purchasing group also sees added bid protests springing from local preference contracts and possible legal challenges on exactly what “local” means and who is really “local.”

The group correctly notes that it’s hard to have joint purchasing agreements across government boundaries that save money in economy of buying scale when other jurisdictions aren’t insiders in the legislation. There go those

giant economy size discounts.

Finally, the Virginia study notes that in five states local preferences have been found in court to be unconstitutional barriers to interstate commerce.

All the more work for our law department.

None of those reasons – or others we cited three weeks ago – gave MiamiDade commissioners pause as they unanimously told the administration to set up local preferences in purchases of goods, preferences not spelled out in either method or degree of preference.

That’s all to come later.

Yet with no specifics at all, commissioners didn’t bother to discuss the measure in either its committee stop or at the fully commission meeting last week – they passed it without a single word.

Maybe it sounded so good to have local business that nobody stopped to think about why in the end it will have a few business winners and all taxpayers as losers.

In Tallahassee, meanwhile, the Associated Builders and Contractors of Florida got a bill passed 28-9 by the Senate and 95-22 by the House recognizing drawbacks of limiting competition by giving unfair advantage to local bidders.

That bill decreases instances in which geographic bidding preferences could be imposed in construction contracts based on bids issued by state colleges,

counties, municipalities or school districts. If more than half the money in those bids comes ultimately from the state, local preferences will be outlawed as of July 1 if the governor signs the bill.

It’s true, of course, that local preferences have one good point. If you are an inefficient local provider who can’t match outsiders in quality or price of your goods you can get contracts from local government if outsiders are barred or handicapped in the bidding. Some folks argue that such artificial protection allows weak businesses to get strong and hence improve.

Unfortunately, other studies show that not only do local preferences raise prices government pays, but the local firms that win actually average less profit on the deal than outsiders would have.

They’re too inefficient to do better.

Chalk that up as a lose-lose.

New Commissioner Daniella Levine Cava last week issued a press release hailing her triumph in building more local preferences into the Miami-Dade government framework and noted that the mayor’s office is now left to develop the strategies and the rules to make it all work.

Good luck, Mr. Mayor. Your problem is, it doesn’t really work.

Preferences are the economic equivalent of a big bag of candy – attractive and tasty, true, but not nourishing, and the more of it you try, the worse off you’re going to be.

Historic accord on parallel efforts to build cross-bay rail link On May 4, the Beach Corridor Transit Connection Study Policy Executive Committee passed a momentous resolution to proceed with the Miami-Miami Beach rail connector, which has been in the works for Xavier Suarez more than a decade.

This resolution is unprecedented in various ways including, and most notably, the fact that the Baylink committee represents the mayors of three governments (Miami, Miami Beach and the county) plus two members of the countywide Metropolitan Planning Committee, which includes representatives of various cities, the school board and the Florida Department of Transportation.

The resolution embodies a historic agreement to proceed along parallel lines towards the ultimate goal of building a cross-bay rail system that also serves a local population on each side of the bay.

In roughly chronological fashion, the resolution accomplished the following objectives: 1. First, it resolved a simmering feud between Miami and Miami Beach as to which city would be first in line for funds necessary to build each city’s internal loops.

2. Secondly, it established the necessary elements of the entire system: (a) “Direct connection” configuration using the MacArthur Causeway, (b) “light rail” in nature, (c) a “dedicated right-of-way,” (d) compatible “design, technology and fare collection.” These common elements

The Writer Xavier L. Suarez is Miami-Dade County Commissioner for District 7. constitute what is referred to as “interoperability” or, in common parlance, the ability to operate in perfect harmony.

3. It freed the two cities (Miami Beach and Miami) to proceed independently with their own environmental analysis and funding efforts. This is important because it accelerates the process of approval, design and funding of the two intra-city loops, while not retarding the more complicated environmental assessment of the cross-bay component, which is inherently a cumbersome federal process that can take as much as four years.

4. The State of Florida is established as the coordinating agency for the “entire project,” which means that it will be a clearing house for all three components going forward and will ensure harmony of design, environmental assessment and

L ETTERS

operation. Thus, if federal financing facilities (bringing lower interest rates) were available for any component, that opportunity will remain open.

5. A timetable of one year is set for the cities to proceed with their own loops. In effect, it is entirely possible that intracity service on both sides of the bay will start much before the more costly, more complicated and more environmentally sensitive cross-bay link is completed.

Bid solicitation, which is to be carried out the by state, can thus proceed in phases.

6. When completed, the entire Baylink project “shall be maintained and operated by one entity.”

All of this represents an almost miraculous meeting of the minds among four jurisdictions and five agencies on a matter that was last studied and planned more than a decade ago (2004).

If we could use a homespun analogy, what has been done is to take a twowheeled carriage, spin forward its two wheels while the body of the carriage is still being assembled, and complete the

TO THE

Explore naming rights use at Miami Marine Stadium Re: funding restoration of the Miami Marine Stadium itself, why not explore naming rights with companies like Red Bull and Budweiser? Red Bull could add Miami to its global air races and sponsor hydroplane racing. Budweiser has a natural affinity to the Marine Stadium through its long unlimited hydroplane racing history – at one time the annual races began

E DITOR

or ended at the Marine Stadium.

As for those soccer fields made of artificial turf, you gotta be kidding.

They’re no different than paving over land with a parking lot.

May I suggest making the Marine Stadium basin more bather-friendly instead, i.e., on the south and east sides, clear the overgrowth and add a sloping beach with palm trees and picnic tables.

DC Copeland

assembly while in motion. (In engineering science, the analogy that is used is of an airplane whose interior space is totally revamped, while in flight.)

For reasons that I personally find incomprehensible, the county has dragged its feet in approving the Preliminary Design and Environmental study for the entire project. Last Monday, Mayor Carlos Gimenez insisted on a three-month hiatus for that approval, even though 87% of the funding is in place from the state and the Citizens Independent Transportation Trust, and the remaining 13% was committed, on the record, by the two cities and the county itself.

But the carriage is moving forward, and I suspect that the two cities will push and pull until the project is finally underway, despite the sluggishness of the much bigger county government.

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TODAY’S NEWS

WEEK OF THURSDAY, MAY 14, 2015

MIAMI TODAY

9

Traffic dilemma as boat show, Grove arts festival coincide

BY JOHN CHARLES ROBBINS

The second weekend in February 2016 will be a very busy time for the City of Miami and environs.

The Miami International Boat Show is to be staged at Miami Marine Stadium Park and basin for the first time, and the annual Coconut Grove Arts Festival unfolds the same weekend.

Both events are tremendously popular and draw hundreds of thousands of visitors to the area.

Getting a handle on how to deal with added traffic to the city’s already congested roadways is a challenge.

City government administrators, along with officials of the Miami Parking Authority, organizers of the boat show and others, have been holding strategy meetings to develop parking and transportation plans for that time period.

Authority CEO Art Noriega gave a status report of those talks to the city’s Off-Street Parking Board on May 6.

Mr. Noriega mentioned the challenge presented by the converging of the two major events.

He said he and Authority COO Alejandra Argudin met several times with the major players to discuss the logistics of the weekend and devise a plan for “park and ride opportunities, that will limit the number of cars going over to the Key.”

Art Noriega views park and ride.

Mr. Noriega said the National Marine Manufacturers Association (NMMA), the organization that produces the boat show, is working on several “park and ride” and “park and boat” opportunities to help move people around during the show, set for Feb. 11-15. The arts show in neighboring Coconut Grove is scheduled Feb. 13-15.

On May 7, the NMMA unveiled a transportation plan for the 2016 Progressive Insurance Miami International Boat Show.

The association, in conjunction with the City of Miami, says it has constructed comprehensive parking and transportation plans spanning water taxis, shuttles, public transportation access, VIP and valet parking, and “abundant” public parking options, all strategically placed throughout Miami and on Virginia Key to accommodate boat

show attendees and exhibitors.

One of the more exciting and efficient elements of the boat show’s transportation efforts is the addition of water taxis, according to the association. With its easily accessible on-water location at Miami Marine Stadium Park, the boat show’s water taxi plan makes it possible for the show to transport up to 25,000 people to the event daily by water, it stated.

As part of the boat show’s transportation efforts, the city hired consultant Kimley Horn to make a thorough traffic study to better understand the most efficient and effective means of getting vehicles on and off Rickenbacker Causeway while keeping traffic flowing at all major intersections leading to the causeway.

Rebuilt in 1985 using taxpayer dollars, Rickenbacker Causeway provides public access to Virginia Key and Key Biscayne. The causeway also is the primary thoroughfare that connects Miami with both Virginia Key and Key Biscayne, making it a critical traffic point and access area.

Given the importance of the causeway to the entire MiamiDade County community, NMMA and the city used the traffic study as a foundation for developing a traffic plan to minimize the boat show’s impact for five days, the association stated.

The traffic plan, coupled with

Alice Bravo cites shared planning.

parking within the show site.

Easy access to public transportation.

Freebee electric car service on call for shuttling to and from water taxi ports and hotels in Coconut Grove, Brickell and downtown areas.

Guaranteed parking space inclusive of water taxi or shuttle for exhibitors and attendees when purchased in advance online.

The traffic, transportation and parking plans were developed by NMMA in conjunction with the City of Miami Transportation Department, Miami Police Department, Miami-Dade County Police Department and Miami Deputy City Manager Alice Bravo and were shared with the Village of Key Biscayne.

“Transportation is a critical component of building a successful new show as it ensures a smooth process for everything from parking and traffic to crowd flow,” said Thom Dammrich, NMMA president.

Ms. Bravo said the plans will help reduce traffic congestion.

“The parking, traffic and transportation plan created by the City of Miami and the NMMA, with their more than 74 years planning the Miami International Boat Show in our city, is one of the most traffic congestion-reducing plans we have seen,” she said.

parking and transportation plans, creates one of the most efficient transportation efforts in the boat show’s 74-year history, the group says. As a result, the boat show is poised minimize interruption and cause little to no congestion, especially in getting on and off the Rickenbacker Causeway, according to the NMMA. Highlights of the plan include: 10,000 parking spaces in downtown Miami, with shuttle and water taxi service to the show.

Water taxi service to the show at convenient points throughout Miami.

An additional 3,800 pre-paid parking spaces on Virginia Key adjacent to the show for exhibitors and attendees (nearly double the public parking available to the show when it was in Miami Beach).

VIP parking on Virginia Key Details: with private car or shuttle service www.miamiboatshow.com to the entrance and VIP valet

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MIAMI TODAY

TODAY’S NEWS

T HE L AST W O R D BEFORE IT HAPPENS: Miami commissioners have approved allocating $120,789.13 to Florida International University to develop and run a predictive crime analytics program. This is aimed to assist the Miami Police Department in making deployment decisions and increase crime clearance rates, specifically for auto thefts and robberies. The money comes from a grant awarded to the city by the US Department of Justice, Office of Justice Programs, Bureau of Justice Assistance. FIU’s Department of Criminal Justice, within the School of International & Public Affairs, is in partnership with the city’s police department and has identified an associate professor who is qualified in building and interpreting predictive crime models, city officials said.

CLIMBING ALOFT: Lima, Peru, native Leslie Weil, who for two years had been general manager of Courtyard Marriott in Miami, has become the first general manager of Aloft South Beach, a Starwood Hotels & Resorts property at 2360 Collins Ave. that is to open May 28. She had earlier worked for Turnberry Associates in a variety of management posts and as general manager of the Hampton Inn Suite Hallandale Beach.

She has a bachelor of science degree in hospitality management from Florida International University.

PORTS RANK HIGH: East Coast ports are growing faster than on the West Coast, according to CBRE Group Inc.’s “North America Ports Logistics Annual Report.” Port Everglades in Broward and PortMiami ranked 12th and 13th, respectively, among seaport markets based on industrial real estate fundamentals and infrastructure capabilities. Based on port shipping volume and growth alone, Los Angeles, New York and New Jersey and Long Beach held top spots, while Port Everglades and PortMiami ranked 11th and 12th. Volume at both ports grew 8.5% year over year. “Port Everglades continues to be Florida’s top seaport for import/ export trade,” said Quinn Eddins, CBRE Florida director of research and analysis. “But a shortage of large blocks of Class A industrial space in Broward County – or the development sites to build more – has constrained further expansion of the industrial market here. Meanwhile, PortMiami, which moves less volume overall than the port just to its north, is still the leading gateway to Central and South America, and is also one of the busiest ports in the US for refrigerated cargo traffic.” Details: http:// f.tlcollect.com/fr2/215/82000/North_America_Ports_LogisticsAnnual_Report-2015.pdf BUSINESS IN CUBA: Four attorneys with Buchanan Ingersoll & Rooney’s Miami office are to travel to Havana this month as part of a larger mission organized by The Florida Bar International Law Section to study business, culture, education and the changing life in Cuba.

Richard Morgan, Jennifer Olmedo-Rodriguez, Matthew Feeley and Jose Florez will attend the four-day educational exchange May 27-30.

The program will include lectures including by Cuban attorney Rafael M. Hernandez, who will speak about the rule of law as part of Cuban reforms; journalist Marc Frank – the longest serving foreign correspondent in Cuba – who will offer insights on economic, political and social issues on the island; and Carlos Alzugaray, former Cuban ambassador to the European Union and former director of the Institute of Foreign Affairs, who will discuss the history of Cuban-American relations and explain the current political considerations playing a role in the ongoing discussions between the countries.

BUYERS MARKET: The number of sale listings for all Miami-Dade properties ranging from $100,000 to $999,999 was up 16.9% in March from a year earlier and up 2.3% from the prior month, according to a market report by Avatar Real Estate Services. March property sales were 1,061, down 6.8% from 1,139 year over year and 14.1% higher than the 930 sales in February. Listings under contract totaled 1,505 properties, up 11.1% from 1,355 in February and up 10.3% from the previous year. The average sold price per square foot of $250 was up 6% compared to $235.9 in February and up 2.6% from $243.7 in March 2014. The median sold price in March increased 7.1% from February and the average sold price also increased 8.4% from February.

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WEEK OF THURSDAY, MAY 14, 2015

Highest-priced office sale per foot expected to create pricing pattern

BY SUSAN DANSEYAR

The sale announcement of landmark office building 800 Brickell on Tuesday for $111.6 million, or $533 per square foot, will probably set a precedent of pricing in the Brickell area, experts say.

RREEF Property Trust, an arm of Deutsche Bank, purchased the 15-story tower from Stiles Corp., which bought the building in partnership with Guggenheim Real Estate in 2004 for $34 million. According to Stiles, the sale represents the highest price per square foot in the Brickell submarket.

The real estate investment management business paid more than triple its last sales price and 2014 assessment of $37 million.

“From an economic view, if a building sells for $533 per square foot, the buyer would need to get very high rents to justify the price,” said Tom Dixon, president of Dixon Commercial Real Estate. On the other hand, he said, when one has that kind of money to invest, opportunities are scarce.

“Years ago, one would never buy a building without a return of 8%,” Mr. Dixon said. “Now, any return on an income investment property is better than the alternatives.”

Photo by Maxine Usdan

15-story office building at 800 Brickell Ave. sold for $111.6 million.

Developed in 1981 by Intercap, 800 Brickell is currently 89% leased to tenants that include State Trust Group, Anheuser Busch, Sol Group, Conill Advertising, Banco de Brasil, TotalBank, Conde Nast America, BoConcept and Dannon Foods.

The sale price will probably set a pattern of pricing, Mr. Dixon said. He predicts there will “be a lot of buzz’ about the transaction when the Commercial Industrial Association of

South Florida meets today (5/ 14) and presents its office market report.

The building is directly south of Swire’s now-rising Brickell City Centre, whose 80-plus story tower is to be built across the street. No start date for that construction has been announced. Swire several years ago paid $64.1 million for 700 and 710 Brickell, the properties that will become the portion of the new tower fronting Brickell.

Summer internships get funds boost

BY CATHERINE LACKNER

Directors of the Southeast Overtown/Park West Community Redevelopment Agency (CRA) voted to allocate $305,000 to Urgent Inc. for an expanded paid summer internship program for inner-city students aged 16 to 24.

This year, 65 students from Overtown and surrounding areas will be able to participate (up

from 60) and the internships will be eight weeks as opposed to six weeks as in previous years, said a letter from Saliha Nelson, the organization’s vice president, to Clarence E. Woods III, CRA executive director.

“Youth earn, learn, and grow under the direction of industry professionals, teaching artists and entrepreneurs in an expanded field of institutes (six, up from four),” Ms. Nelson’s letter continued.

The program, she said, is designed to fuel growth in industry sectors that have been identified by countywide job development program One Community One Goal as sources of high-paying jobs and economic growth, including film and radio, graphic arts, information technology, cultural tourism and business management.

Urgent, Inc. has run the summer program – which also provides job coaching, crisis intervention and leadership development – for the CRA since 2013.

Eligible interns can earn high school or college credit through a partnership with Miami-Dade Public Schools and Miami Dade College, Ms. Nelson said. The group also receives federal and local funding from organizations including The Children’s Trust.

“A lot of jobs are going to be opening up, for which we will need training” when Miami Worldcenter and other projects come to fruition, said Wifredo “Willy” Gort, CRA director and Miami city commission chairman. “If we’re going to create value, it’s important we that have the right people for those jobs.”

“It’s imperative that we invest some resources in this,” agreed Francis Suarez, CRA director and Miami commissioner. Too often, he said, inner-city youths are targets of violence.

“The funding is highly appropriate for a program like this,” said Keon Hardemon, CRA chair and Miami commissioner. “Our children greatly need it, and not just in the summer.”

WEEK OF THURSDAY, MAY 14, 2015

MIAMI TODAY

15

Bid to cut commercial real estate tax targets special session

BY SUSAN D ANSEYAR

Legislation to end taxes on commercial real estate didn’t pass in Tallahassee before the Legislature’s abrupt ending, but business leaders say it’s possible lawmakers will approve a 1% reduction should the matter come before a special session tentatively scheduled for June 1-20.

Sen. Dorothy Hukill, a Port Orange Republican, filed SB 140, which asks for the 1% reduction yearly. Both the Community Affairs and Finance and Tax committees in the Senate approved it unanimously, which is a good sign, according to Curtis B. Hunter, a partner with Berger Singerman and member of its business, finance and tax practice team. He said a similar bill in the 2014 session never made it out of committee.

Other legislation has asked to eliminate the tax entirely, Mr. Hunter said, but Ms. Hukill has proposed doing it slowly, which he says is a good start. He said the tax generates about $1.5

A 1% cut in the tax is reasonable for this year, said Curtis Hunter.

billion a year. A reduction of 1% is reasonable, Mr. Hunter said, as the impact on state revenue will be minimal.

Florida imposes a sales tax of 6% on the “total rent” charged under a lease. In specific situations, counties are authorized to levy an additional discretionary sales surtax on the charges subject to sales tax. Particular payments by a tenant may be classified as rental consideration and subject to sales tax, includ-

ing not only base rent but additional rent and common area maintenance charges as well.

Consequently, many Florida businesses end up paying 6.5% to 7.5% sales tax on their total rent obligations.

Opponents of ending the tax say it would drain government coffers and hurt public services.

Proponents say eliminating the tax would allow landlords to collect higher rents, boosting commissions for commercial agents and brokers, or give landlords the option of lowering their rents to be more price-competitive in leasing their space, thus freeing up money for expansion of jobs.

Putting money back into the pockets of companies that could create jobs, grow and expand productivity would more than replace the revenue lost by eliminating the tax, proponents say.

Ms. Hukill plans to add her bill to the list for June but there’s no guarantee it will be considered. If a large number of bills is added to the agenda, the 20-day session probably won’t be

Jack Lowell said a 1% cut would issue a pro-business message.

enough time for lawmakers to review them all and act.

Lawmakers haven’t worked out the agenda for the special session but their primary job will be to pass a state budget.

House and Senate members had a $4 billion divide over health care spending in their earlier budget plans. The regular 60day session ended on a bitter note May 1 with the House leaving three days early, killing dozens of bills.

Should Ms. Hukill’s bill not pass this year, Mr. Curtis said she’ll continue to bring it until it does.

Jack Lowell, executive vice president of Pointe Group, agrees a 1% reduction won’t have tremendous impact. It’s a good idea, he said, and the passage of SB 140 pass will send a positive, pro-business message.

Florida is the only state that taxes commercial real estate to this degree, Mr. Lowell said.

Depending on the submarket, tenants can be paying a huge amount of money. In Brickell, for example, Mr. Lowell said he’s seen some rents at $50 per square foot, so a 7% tax of that is a lot.

Yet, he’s torn and does not think the tax can be eliminated entirely without a replacement, because the state needs a steady source of money for vital services such as public education.

“We have to look every year at our budget and see where the revenue stream is,” Mr. Lowell said. “Incremental elimination of the tax would give us time to find other resources.”

Destination status sends Design District land prices soaring

BY SUSAN D ANSEYAR

Commercial land prices have gone sky high in the Design District over the past year or so, industry experts say, because it’s finally becoming a destination.

There was talk among developers a while back that this small Miami neighborhood – about 10 square blocks – could never be an area of the city where people would deliberately set out to visit, said Marc Shuster, a partner with Berger Singerman who focuses his practice on commercial real estate transactions. “That notion has been disabused by all the luxury retailers already there and coming in, paying up to $250 per square foot.”

Commercial land prices went up because “all the pieces are coming together” for building the Design District, Mr. Shuster said. The high-end retailers are established, he said, and the advent of office and hospitality is coming.

“Now, the district will need local lunch places where people can eat and the Design District will be a destination for years to come.”

Historically know as Buena Vista, this area is roughly bound

by Northeast 36th Street (US 27) to the south, North 43rd Street to the north, Northwest First Avenue to the west and Biscayne Boulevard to the east.

In the 1980s and early 1990s,

Photo by Maxine Usdan

Design District land prices rose in a short time from $1,100 per square foot to $3,000, said Lyle Chariff.

a number of historians and market watchers say, the Design District had fallen to urban decay. In the late 1990s and early 2000s, however, that arts and design stores began opening in some of the old warehouse buildings that dot the district.

Today, the Design District is growing in popularity and its name is almost synonymous with high fashion.

Mr. Shuster said developer Craig Robins should be ap-

plauded for what he’s done: purchasing many run-down buildings, renovating them and persuading top designers to relocate or open shops in the district.

These luxury brands have validated the area, said Lyle Chariff, president of Chariff Realty Group. The quality of the tenants and the fact that they are signing leases is the “Good Housekeeping” sign of approval, he said.

The Design District has seen land prices increase from $1,100 per square foot to $3,000 in a fairly short time, Mr. Chariff said. There are condo, hotel and retail projects still underway, so the next validation point will be when the bulk of them are built, which Mr. Chariff said is about three or four years away.

At that time, he said, industry experts will be able to re-evaluate what rents prices can be and

determine the value of the improved real estate.

Mr. Shuster said it can sometimes be unclear which neighborhoods will “catch on fire,” but the hospitality and food ventures help create destination districts.

“There’s a lot of construction going on now, so we can’t really get a sense of foot traffic yet,” he said. “Once the projects are finished, we’ll start seeing more people walking around the district.”

No one is making more land in the Design District, Mr. Chariff said, so there won’t be much to buy once all the old buildings are purchased and developed. However, he said, neighborhoods around this part of the city – west up to I-95, particularly Northwest Second Avenue – have seen commercial land prices increase.

At one time, Mr. Chariff said, developers were paying $20 per square foot in this area but prices have now risen to at least $100 per square foot.

The Design District, like all parts of Miami, is not immune to global macro factors, Mr. Shuster said. Any bubble or meltdown will be felt, he said, but in step with the rest of our communities.

“There’s been a steady increase of development in the Design District,” he said. “The smart money will continue to invest, and it will remain a vibrant market.”

16

MIAMI TODAY

COMMERCIAL REAL ESTATE & OFFICE SPACE

WEEK OF THURSDAY, MAY 14, 2015

Complaints about flood insurance rate increases muted

BY CATHERINE LACKNER

Rate increases and other charges for flood insurance kicked in April 1 but reaction has been mixed, sources say.

The complaints haven’t been as shrill as expected, said Jorge Pena, managing director of ASI Florida and president of the Commercial and Industrial Association of South Florida. The changes include a per-policy annual fee of $250 and rate hikes that Mr. Pena said can be as much as 300%.

“Different areas got increases, for a variety of reasons,” he said. But flood insurance is usually inexpensive, he said, so even a three-fold increase might not impact the budget of the average busi-

ness. Also, some property escrow accounts aren’t immediately updated when fees increase, so some property owners don’t know about the increases yet.

Primary flood insurance, routinely excluded from other insurance policies, is only available from the Federal Emergency Management Agency (FEMA), and the maximum coverage is $500,000 per structure on both the building and its contents. As premiums increase, private insurance companies might enter the market, but that hasn’t happened yet, observers say.

Addressing the rate increases is “a top priority” of Gov. Rick Scott and Jeff Atwater, the state’s chief financial officer, Mr. Pena said. It is hoped that the

matter will be discussed when the Legislature convenes an emergency session next month, he added.

What has affected her clients most is the $250 fee and a change in the way claims are paid, said Leslie Carpenter of the Keen, Battle and Mead insurance agency. Both changes, part of the Biggert-Waters Flood Insurance Reform Act of 2012, apply only to dwellings that are not the insured’s primary residence, such as investment properties. Many of Ms. Carpenter’s clients own units that they rent out; some are in vulnerable waterfront locations like the Florida Keys.

The $250 fee “is really a hidden tax,” Ms. Carpenter said. Additionally, FEMA

has changed the way it pays claims on properties the owner occupies less than 79% of the time. Rather than paying to replace the structure, it now will only pay the actual cash value of the property.

The rationale for the change is that homeowners are more likely to protect and secure properties they actually live in, rather than units they own in remote locations.

“But a storm is no respecter of people or properties,” Ms. Carpenter said. “It doesn’t know who lives there.” The change is unfair, she said, and while some parts of the Biggert-Waters Act have been changed because of protests from lenders, these provisions stand for the time being.

Doral becomes heart of West Dade’s high-end office market

BY CATHERINE LACKNER

The West Dade office market, which years ago comprised buildings near Miami International Airport with small pockets near Dadeland and Kendall, now has coalesced around the Doral area, observers say, where class A space is in strong demand.

“We have the only true class A building in Doral,” said Masoud Shojaee, president and chairman of the board of Shoma Group, referring to One Park Square, part of the 51-acre mixed-use Park Square complex.

Completed in 2010, the 281,000-square-foot building is 90% leased, with Amadeus North America occupying 100,000 square feet. Blanca Commercial Real Estate Inc. is the leasing agent.

“The West Dade market is very unique,” Mr. Shojaee said.

Its base formerly was logistics firms and others who need quick airport access, but that has enlarged to include other businesses that are drawn by the area’s proximity to the Florida Turnpike and state roads 826, 112, 836, as well as I-75.

Another office building is planned and will be delivered in less than three years, Mr. Shojaee said. It will definitely be a class A structure. “We have too much class B in Doral, and we are not interested in class B. Our project will be

Doral office market’s vacancy is less than 10%, said Tere Blanca.

Photo by Maxine Usdan

“The West Dade market is very unique,” said Shoma’s Masoud Shojaee at One Park Square at Doral.

unique,” he said.

The area will only get more attractive with the addition of Park Square, Mr. Shojaee said.

“What was lacking was mixeduse.” The retail component of the project is 70% leased, and the company expects to pull permits for it within 45 days.

Tenants include a Fresh Market grocery store, Segafredo restaurant, a sushi bar, a CinéBistro luxury dinner and movie theater, and others.

“We’re spending a lot of money on a central fountain area with lighting and computergenerated music shows,” he said, which will be reminiscent

of the Bellagio hotel in Las Vegas. “It’s very exciting and will be a huge asset for Doral.”

Shoma had the complex on the drawing boards before the 2008 downturn but had to postpone it, he added, but now the time is right.

“Doral is a rich city; there is a lot of job growth here,” Mr. Shojaee said. “The city is working hard to transform it into a mini Brickell, and it will happen.”

“Doral office space has a vacancy rate of less than 10%,” said Tere Blanca, who is founder, president and chief executive officer of Blanca

The tightness of that market might benefit office space nearby, including Lennar Corporate Center, at the State Road 836 extension and the Florida Turnpike.

“What’s great is the location; that has always been its biggest strength,” said Douglas Okun, senior vice president at Continental Real Estate Companies, the leasing broker. “One of the amazing things is that we’re now getting some decision-makers who live in Doral and who don’t want to travel far. Here, you’re on the outskirts with a strong amenities base but you’re not having the congestion of downtown Doral.”

The four-building, 290,000square-foot complex was built about 20 years ago by the Lennar Corp., which is still the anchor tenant. The class B space fetches rents of about $25 per square foot, full service. It is 97% leased now, and even in the economic downtown, occupancy hovered in the low 90% range, Mr. Okun said.

“Tenants out here understand the traffic patterns,” he said.

“Traffic congestion and how to reduce their employees’ drive times is a top priority for people when they’re choosing offices.”

Commercial Real Estate Inc. It has attracted the entertainment and media industry (The Miami Herald and Univision) as well international trade (Hellman Worldwide Logistics), healthcare (Blue Cross Blue Shield) and travel (Carnival and Norwegian cruise lines and Amadeus travel data support).

“In the past few years, there has also been an explosion in residential,” she said. “Given what’s happened with traffic, people who live in certain neighborhoods don’t want to go east and battle the congestion.

They’re staying a little more within their community.”

Notwithstanding that, the Doral market is strong because of its connection to highways throughout the tri-county area, Ms. Blanca said. “It is a great base for employment, especially if you have employees who live everywhere from Southwest Broward to Homestead.”

Harley-Davidson USA, she added, just moved from Miramar to One Park Square.

Market demand will remain strong, she predicted. “There are barriers to entry, because there is very little land.”

Rates for class A space are about $35 per square feet gross, and around $28 per square foot for class B. “There have definitely been increasing rents in the market,” she said. “I think this year we’ll see we’re in very tight market, especially with no new office construction under- Decision makers who live in Doral add office too, said Douglas Okun. way.”

18

MIAMI TODAY

COMMERCIAL REAL ESTATE & OFFICE SPACE

WEEK OF THURSDAY, MAY 14, 2015

Walkability, niche environment hallmark of Beach offices

BY CATHERINE LACKNER

Miami Beach’s office market is evolving along with the city itself, say brokers who work there.

“Miami Beach was one of the pioneers of walkability and urbanism,” said Tere Blanca, founder, president and chief executive officer of Blanca Commercial Real Estate Inc., who has two floors of an iconic building at 605 Lincoln Road for sale or long-term lease.

The building, formerly the Latin American headquarters of Sony Music, sits at Lincoln Road and Pennsylvania Avenue, across from the H & M clothing store.

Ms. Blanco has available the sixth and seventh floors, a 20,600-square-foot space that boasts an internal staircase connecting the two floors.

“We represent the largest owner in the building; it’s a spectacular space,” Ms. Blanco said. The lease or sale will include two signs atop the building, a prime branding opportunity on one of Miami Beach’s busiest streets, she added.

“It’s a great location with all the amenities for employees,” including shopping and restau-

Photo by Maxine Usdan

“It is a very niche environment here,” said Michiel Johan van de Kreeke, shown at Fifth Street and Lenox.

rants, she said. As a bonus, the zoning permits residential uses, so it can literally be a live/work/ play space. “It’s fantastic and vibrant – about as urban as you can get,” Ms. Blanca said.

“It’s a very niche environment here,” said Michiel Johan

van de Kreeke, asset manager at Pointe Group Advisors, who is leasing space in Fifth and Lenox, a five-story building at 429 Lenox Ave. in the trendy South of Fifth neighborhood.

Many current and prospective tenants live nearby, at Wil-

liams Island or in the South Pointe corridor, he said. They desire an office away from home and tend to be seasonal tenants, hailing from Europe or South America, he added.

“Because it is seasonal, you can demand higher pricing. The

tenant needs a short-term lease and that puts us in the driver’s seat.”

The office suites are fully furnished, down to the telephone, Mr. van de Kreeke said, so a client can sign a lease one day and be working the next.

“It’s close enough to home but far enough away,” he said.

“They can’t really get anything else like it.”

The building comprises retail space on the ground floor, interior parking on the second and third floors, and penthouse office space on the fifth. It attracts a different clientele than does Brickell, downtown Miami or even Lincoln Road, he said.

“They are the low-profile movers and shakers with the flexibility to work from anywhere – money managers, brokers, in the technology business.”

Assessing the office space market on Miami Beach can be tricky, he conceded. “You can’t really classify it here – there is no rhyme or reason to it yet.

“It’s evolving just as the city is,” Mr. van de Kreeke said.

“This city is so young, and it’s always changing and trying to find itself. Being a boutique building fits perfectly with that idea.”

Furniture store gets its first city OK for seat on boulevard

BY JOHN CHARLES ROBBINS

A plan to bring a furniture store to Biscayne Boulevard and a companion duplex on a back lot with shared underground parking has earned preliminary approval from Miami city commissioners.

The approval of a first reading of two amendments that would change the land use map and the zoning classification for part of the property came over the objections of some neighbors.

The proposal has divided property owners in the Palm Grove neighborhood, and opponents continue to claim it would constitute spot zoning.

The area is between 61st and 58th streets, and includes the neighborhoods of MiMo, Morningside and Palm Grove, in a stretch that has up to five different zoning classifications.

Existing uses are predominantly residential and commercial.

One amendment would change the future land use designation of property at 5907 NE Fifth Ave. from single-family residential to low-density restricted commercial.

The other amendment proposes changing the zoning classification from T5-L to T4-O for the property at 5900 Biscayne Blvd., and from T3-L to T4-O for the property at 5907 NE Fifth Ave. Owner and developer Jacques Miodownik proposes to build a furniture sales and showroom facility along Biscayne Boulevard, with a height not to exceed 35 feet, and a duplex on a back lot, with shared underground parking.

The matter first came before

The city area involved has up to five different zoning classifications.

the city commission March 26.

After commissioners heard from people and organizations both for and against the changes, the matter was deferred to April 23. Commissioners directed the planning and zoning staff to clean up the record.

A phrase that opponents picked up on and repeated was “spot zoning.” The term appears in an analysis written by a planning and zoning department staffer.

On March 26, Planning Director Francisco Garcia said the term was inaccurate and “inappropriately used” in the staff analysis. At the follow-up meeting April 23, Mr. Garcia said the term was a “careless reference” and he wished to have it retracted.

Mr. Garcia went on to describe the criteria of spot zon-

ing, established in case law over the years.

The criteria include, in part, the size of the parcel being rezoned, the existing adjacent zoning classifications, and the benefits and detriments to the parcel and surrounding parcels.

A rezoning must not be considered arbitrary or capricious, said Mr. Garcia, and instead should be “harmonious” with surrounding parcels.

Mr. Garcia said his department wanted to reassert its position that if this project is built as proposed will harmonize with surrounding property.

“It is not spot zoning. It is transitional in nature, and not detrimental,” he told the commission.

Attorney Ben Fernandez, representing the developer, said he concurred with the case law

presented. “This is not spot zoning,” he said.

Another factor impacting the debate is that the city’s Planning, Zoning and Appeals Board recommended denial of the proposed amendments. Mr. Garcia pointed out, however, that since the recommended denial vote the developer agreed to a covenant on the land – basically making a promise to build what is proposed.

Mr. Fernandez referenced the covenant. “Our covenant tempers it all,” he told the commission.

Attorney John Lucas, representing the owner of a home across the street from the back parcel, argued the proposal would be spot zoning.

The only purpose of the change was to extend commercial zoning into the established residential neighborhood, he said.

The commercial zoning would “intrude” into the residential area and be a detriment to it, Mr. Lucas said.

“There is no evidence this up-zone will be compatible,” he said.

“You are the gatekeepers,” Mr. Lucas told commissioners.

“You have a very serious call here and we ask you say ‘no – it’s not going to happen.’”

Mr. Fernandez argued for the changes.

“Our application is compatible with the surrounding area,” he said, pointing out other nearby commercial uses.

Commissioner Keon Hardeman asked about the covenant from the developer.

Mr. Fernandez said it ensures the land on Fifth will not have commercial use and “it ties us

‘It is not spot zoning. It is transitional in nature, and not detrimental.’

Francisco Garcia to the site plan.”

The back parcel is in the Palm Grove Historic District, but there are no historically-designated structures on the land.

The developer proposes two residential units on the back parcel, as a transition use between the commercial of Biscayne Boulevard and the residential uses to the west.

Commissioners also reviewed letters showing support of the proposal from the Cushman School, the MiMo business association and Palm Grove association.

The commission’s preliminary approval denied the request to change the zoning of the Biscayne Boulevard parcel from T5-L to T4-O, but did grant the request to change the zoning of the parcel at 5907 NE Fifth Ave. from T3-L to T4-O. Planning staff said the developer can accomplish his plans for the Biscayne Boulevard property under the current zoning.

WEEK OF THURSDAY, MAY 14, 2015

TODAY’S NEWS

MIAMI TODAY

23

Beach vote paves way for Bass Museum to close, expand

BY CHRISTINA CEPERO UMPIERRE

The Bass Museum of Art on Miami Beach will close Sunday until fall 2016 to increase programming space by 47.5% on its existing footprint with a $7.5 million city grant.

The Miami Beach Historic Preservation Board voted 6-0 Tuesday to approve the partial demolition, renovation and expansion of the two-story structure at 2100 Collins Ave. The interior reconfiguration involves replacing a ramp with a staircase and enclosing the courtyard and terrace to boost programmable space from 17,772 square feet to 26,212.

The Bass will add two galleries for a total of five and two classrooms for a total of three.

The museum attracted a record 65,000 visitors during its 50th anniversary year in 2014, doubling attendance in five years.

“We need our building to catch up with us,” said Silvia Karman Cubiñá, the museum’s executive director and chief curator since 2008.

An average of 300 people a week participate in the museum’s educational programs.

The redesign will include a reception area with a shop and added classroom space to offer more classes to more children and add an after-school program.

“We’re going to change the character of the visitor experience,” said Mrs. Cubiñá. “When we designed the building it was in a time when visitors came to museums in a very contemplative mode. They came to see art and they left.

“Now museums are asked to be places of entertainment, to have coffee, educational programs, be much more interactive.”

During construction, the museum will display contemporary art in the first floor lobby of the Miami Beach Regional Library across the street as well as outdoors in Collins Park outside its entrance.

“We’re going to be sharing resources,” said Jennifer Shipley, library branch manager.

“I think it’s a positive situation.”

Miami-Dade County issued the Friends of the Bass Museum a temporary permit from September 2015 to September 2016 for bassX to display nine exhibits in the library’s first floor lobby and offer weekly programs in its upstairs classroom, including Bass Babies and portfolio classes.

The museum office will remain on site and summer camp will also be held at the Bass while the building is prepared for construction, which will start in mid-August.

Museum leaders are interviewing contractors this week.

The 2,000-piece collection is to be transported to a secured warehouse.

Designed in 1930 by Russell Pancoast, grandson of Miami Beach pioneer John A. Collins, the Art Deco building at 2100 Collins Ave. housed the Miami Beach

If You’re Going

The Bass Museum of Art closes Sunday as it expands its exhibition space by almost half with city aid.

Photo by Maxine Usdan

“We need our building to catch up with us,” said Silvia Karman Cubiñá.

Public Library and Art Center before the Bass opened there in 1964.

In 1978, the building was placed on the National Register of Historic Places, and in 2002 the museum added 16,000 square feet designed by Japa-

nese architect ArataIsozaki in collaboration with his New York partner David Gauld.

The Bass is again working with Mr. Isozaki and Mr. Gauld for its interior expansion.

“I’ve been to Tokyo three

times to meet with him,” Mr. Gauld said. “He very much supports everything we’re doing.”

Miami Beach city planning staff recommended approval.

Tracy Slavens, attorney for the Friends of the Bass Museum, said the museum agreed to city staff’s request to keep intact an original staircase, develop a lighting plan and ensure the coral stone west wall is protected.

“You’ve really brought the museum into its own,” said city historic preservation board member Jane Gross. “People who visit here now actually go to the museum.”

Gary Farmer, the city’s cultural affairs program manager, commended museum leadership for coming up with the plan to expand without building an addition, which would have cost $15 million.

The city commission approved the $7.5 million grant

Bass Museum of Art 2100 Collins Ave., Miami Beach (305) 673-7530 Bassmuseum.org General admission: $8 adults, $6 seniors and students with I.D. Free for members and children under 6.

Free this Sunday.

Hours:12-5 p.m. Wednesday-Sunday (open Friday until 9 p.m.)

Note: Galleries will close Sunday through fall 2016 for renovations. A pop-up gallery will be at Miami Beach Regional Library, 227 22nd St. (between Collins and Liberty), Miami Beach, from September 2015-September 2016. for the work from its capital budget in 2013.

The museum’s annual budget is $3 million, Mrs. Cubiñá said, adding that two-thirds comes from fundraising and the rest from municipal funds.

The City of Miami Beach owns the building and collection while a 26-member board runs the museum, which has 21 fulltime employees and 1,200 members.

“They have really made a name for themselves in the national art world,” Mr. Farmer said.

Exhibits initiated at the Bass have gone to museums in Purchase, NY; Dallas, and Cincinnati.

24

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