A Singular Voice in an Evolving City
WEEK OF THURSDAY, JUNE 11, 2015
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GOALS CONFERENCE REVIEW
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Don’t wait and miss chances in Cuba, chamber told, pg. 15
Millennials creating new types of banking environment, pg. 18
HONG KONG BOUND: The Greater Miami Chamber of Commerce’s Americas Linkage Committee, chaired by Hernando Gomez of Morrison Brown Argiz & Farra, is planning on representing Miami at the Asian Financial Forum in Hong Kong next Jan. 18 and 19. He said the forum is one of the world’s largest financial events. The Americas Linkage Committee this past year partnered with the Florida International Bankers Association for a trade mission to China in which the chamber’s Banking and Finance Committee was also involved. This trip would be the second step in promoting Miami to Chinese industries, particularly banking, to build relationships and bring foreign investors back to South Florida.
THE ACHIEVER
EXTENDED TAX ROLE: Miami-Dade County’s Strategic Planning and Government Operations Committee unanimously authorized the extension of the 2015 certified tax roll for real and personal property Tuesday. Due to the number of Value Adjustment Board appeals filed each year, the county doesn’t expect to complete the hearing process for the 2015 tax roll until sometime in 2016. Because tax bills are mailed on or before Nov. 1, the parcels whose owners request Value Adjustment Board hearings may require subsequent adjustments to their assessment. Therefore, final certification of the tax roll cannot be made until all the hearings are done. KEEPING TRACK: The Miami-Dade Strategic Planning and Operations Committee unanimously adopted a resolution Tuesday asking the county attorney to demand that the mayor comply if a directive or request to him by the full commission, one of its committees or an individual commissioner is late. The county attorney would use the directives database set up in 2003, which includes the due date and status of directives or requests. It’s maintained by the clerk of the board. Previously, the county auditor was to track the database and report quarterly to the commission. However, the commission decided that wasn’t the best procedure because the quarterly reports are voluminous and frequently are too slow to report the status of directives and requests. The full commission is next to vote on the measure. DRIVE IN: Auto dealership Warren Henry Auto Group says it plans to move its headquarters from 20860 NW Second Ave. to a master planned community off Biscayne Boulevard at Northeast 151st Street, where the company plans a 100,000-square-foot dealership. The company now has seven franchise locations. Its new home will be in the site formerly known as Biscayne Landing and now called SoLô Mia, owned by Turnberry Associates and LeFrak.
Matt Haggman
Photo by Marlene Quaroni
Building Miami entrepreneurs at Knight Foundation The profile is on Page 4
Cities, county may take up film incentive slack BY CATHERINE LACKNER
”You could be as big as California” in the film county commission this summer. “It’s up to the mayor and the board of commissioners to industry, big-name executive tells Miami, pg. 2 make the decision. It would be in addition to, As the contentious special session of the
Florida Legislature creaks and rumbles toward a June 20 conclusion, no one really knows the fate of film industry tax credits. Local governments are therefore considering their own inducements. Two bills – later combined into one – that would have re-invigorated the state’s tax credit program are dead until next year, said Pieter Bockweg, executive director of the Omni Community Redevelopment Agency and a member of the Florida Film and Entertainment Advisory Council. It’s not known whether, or how much, money will be allocated to the moribund program as part of the general budget, he told participants at last week’s Miami Media and Film Market conference sponsored by CAMACOL, the Latin chamber of commerce in Miami. “The situation in Tallahassee is very fluid.” The state’s film incentives come in the form of tax credits based on the scope of the production, number of local people hired, the season in which filming occurs
AGENDA
and several other variables. The credits can be sold at the end of the term if the production doesn’t need the equivalent tax relief. For the past three years, the Legislature has not added funds to the program, and coffers are nearly dry. Industry stakeholders organized intense lobbying campaigns each of those years, crisscrossing the state to spread the message that productions bring economic benefits to all of Florida. But “We’re the prettiest girl in the room,” said Sandy Lighterman, Miami-Dade County film commissioner. “There is some jealousy,” despite the fact that a 2014 proposal would have provided benefits – and presumably attracted business – to counties that do not see many film productions. Miami Beach, Jacksonville, Sarasota and Tampa all offer their own versions of tax credits or some inducement to attract films. “We’re moving in that direction,” Ms. Lighterman said. Her office is in the process of preparing a feasibility study, requested by Mayor Carlos Gimenez, that is to be presented to the
not instead of, the state program,” Though it does not have the fiscal resources that the state government does, “the county’s got to take the lead,” Ms. Lighterman said. “The City of Miami could also take the lead.” It is hoped that some other municipalities and entities like the Greater Miami Convention & Visitors Bureau will also get involved. It’s well known that 40 US states – as well as many foreign governments – offer incentive programs, some of which are quite lucrative. Kevin Sharpley, producer and chairman of the Miami-Dade Film Commission, has had a project on the books for several years that will probably be filmed outside Florida. “It’s a Miami story, a South Beach story,” he said. “But if there are no incentives, it will not be shot here.” Miami, he said, has “one of the best crew bases in the country,” but if the tax credit program stalls and the industry falters, “those jobs won’t be coming back.”
Key freight agent plans 100-job site A major player in the expanding freight forwarding arena plans a Doral area base with 100 jobs. The firm’s identity was under wraps as county commissioners last week OK’d up to $60,000 in job incentives over a five-year period, a 20% match for a state payment that comes after the jobs exist. The company is the secondlargest agent connecting shippers to truck carriers in a widely fragmented industry, according to the application from the Beacon Council, Miami-Dade’s economic development partnership. The company falls into the category of freight forwarders, marine shipping agents and customs brokers. An April analysis by IBISWorld says the industry has a $114 billion annual revenue and lacks dominant players. The analysis shows annual industry growth of 5.1%, more than double the gain in Gross Domestic Product, and forecasts continued 4.9% a year growth through 2020. Nationally, 329,163 persons worked in the industry in April, spread among 70,992 businesses. The Midwest-based company targeting a Miami satellite, codenamed “Project Transport,” opened 12 satellite offices in the past five years, Deputy Mayor Jack Osterholt wrote to commissioners. A 7,500-square-foot site the firm would seek in the Doral area would mark its Miami debut. Most large firms in the industry already have Miami operations. The 100 workers would average $52,500 yearly in salary, far above area average. The company plans $565,000 in capital expenditure here, mostly for computer equipment and office furnishings. Shielding a firm’s identity when the county and the state offer job rebates is usual because they generally compete with other areas for the applicant. “Project Transport” is also considering locations in Arizona, Indiana, Minnesota, New York and Texas, commissioners were told.
CORAL GABLES SEEKS DEVELOPER AT GARAGE SITES ...
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LOOKING FOR NEW TOOLS TO ASSESS COUNTY BUDGET ...
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BIG BUS PLAN MIGHT BE OUR NEXT BIG TRANSIT STEP ...
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DON’T GO IT ALONE GOING ABROAD, CHAMBER WARNED ... 12
VIEWPOINT: CHAMBER TOLD IT’S THE TRANSIT DRIVER ...
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BIG VISITOR GAP CITED IN AMATEUR SPORTS FACILITIES ... 14
COUNTY DEBATES WHEN WORKSHOPS ARE TOO MUCH ...
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INTERNATIONAL BANKS CREATE GLOBAL TRAINING HUB ...
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WEEK OF THURSDAY, JUNE 11, 2015
TODAY’S NEWS
MIAMI TODAY
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Photos by Marlene Quaroni
“No appetite to go to the voters and ask them for more money,” said Esteban Bovo Jr. Ric Katz is at right. Javier Rodriguez, left; Jack Stephens, who said nobody wants to pay.
No consensus on next move in drive to get Miami moving BY CATHERINE LACKNER
Everyone acknowledges that something must be done to address South Florida’s growing transportation gridlock, but there is very little consensus on next moves. “There’s no appetite to go to the voters and ask for more money,” said Esteban Bovo Jr., a Miami-Dade County commissioner who was a panelist at a critical issues panel on funding transportation priorities, part of the Greater Miami Chamber of Commerce’s annual goals conference. “The residents have been very clear. They say ‘We’ve given you money, and you guys have blown it.’ The county commission is very invested in this; every conversation turns into a transportation discussion.” The demand on county roads has been exacerbated by a decision by the Miami-Dade Expressway Authority (MDX) to install toll-taking lasers on gantries along the entire length of its five expressways. Prior to that, drivers could exit at strategic points to avoid tolls. “Today, we are pricing our product,” said Javier Rodiguez, MDX executive director. Because of the space between toll plazas, previously only 25% of drivers paid a toll, he said. Despite a public outcry, usage is up, he added. Traffic on the expressway today is 3% higher than the day before tolls were raised last year, he said. “The reality is, we have a car culture,” Mr. Bovo said, and residents in the outlying areas can find themselves paying as much
as $20 per day in tolls. “Our conversations with our state and federal representatives have not been good.” Don’t expect much help from the federal government, said Drew Preston, director of congressional and public affairs for the US Chamber of Commerce. In fact, Congress looks to Florida and other “city-states” that are doing well to justify the argument that federal help is not needed. “There are a lot of people in Washington now who are looking to get out of the business of paying for anything,” he said. “It’s not a lack of money; it’s a lack of trust,” he explained. “It’s understandable, and it permeates all levels of government,” given Washington’s stalemate over recent years. “Congress has no problems spending money when it wants to. What’s missing is the political courage and willpower,” especially to raise the federal gasoline tax, Mr. Preston said. “They’re looking for signals from the electorate that it’s okay to invest in infrastructure.” That might be a long-term solution, he said, “But in the near term, I’m not optimistic. Florida is well-positioned to absorb a scale-back in federal dollars, but you’d better start planning to do [transportation improvements] yourselves.” But rallying Washington to the cause “is our role,” said Ric Katz, president and founder of Communikatz and former chair of the chamber’s transportation committee. “Congress is responsive to the business world.” Mr. Katz conceded, however, that federal money comes with
expensive strings. He has been involved for several years in the Tri-Rail East Coast Corridor project, which has been delayed by federal environmental studies and other time-consuming requirements. Panel moderator Tom Hudson, vice president of news and special correspondent for WLRN, said a tourism tax has been suggested. “They flush our toilets, they use our streets. Why not use that tax for infrastructure improvements?” Mr. Hudson asked. He agreed with Mr. Bovo that “residents are starving for results. They never got what they were promised” from a 2004 half-penny sales tax increase.
An added tax for transportation could sunset, or end, after 10 years, Mr. Bovo suggested. It could pay for things like bus rapid transit, which removes buses from traffic and places them on a rail-like system with limited stops. “We are dotted with rail lines all over the place,” he said. “If the residents don’t see some sort of movement, they will move on.” “I’ve always supported all types of funding for transportation,” Mr. Rodriguez said. “We’re looking at opportunities along rail lines. We’re not opposed to rail at all; the future is not on the highways.” Instead of looking for outside money, he suggested transporta-
tion impact fees, similar to the fees developers are required to pay when they build large projects. “The only way we’re going to do this is locally; if we look to the federal government, we’ll fail.” “We’re looking for a gamechanger,” said Jack Stephens, executive director of the South Florida Regional Transportation Authority, which steers the TriRail East Coast Corridor project. “Everybody wants it, but nobody wants to pay for it.” “There are solutions, and there is funding for solutions,” said Charles Scurr, executive director of the Citizens Independent Transportation Trust, “but it’s going to take all of our efforts to move the dial.”
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WEEK OF THURSDAY, JUNE 11, 2015
MIAMI TODAY
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Chamber looks to add clout as few elected officials show up BY JOHN CHARLES ROBBINS
The Greater Miami Chamber of Commerce needs to get its mojo back. That was the charge echoed Friday when chamber members bemoaned the fact that very few elected government officials from the area bothered to attend this year’s chamber Goals Conference. The need for the chamber to work hard toward regaining the power and influence it had with elected leaders came up during the Government Affairs Group’s workshop. Stories were told of the chamber’s massive clout back in the day, when the chamber would set its goals, share those with elected leaders, and see desires come to fruition. Maurice A. Ferré, a former Miami mayor, county commissioner and state lawmaker, recounted a time 30 to 40 years ago when the chamber had plenty of influence and sway. If the chamber wanted something done, “it got done,” he said. “I could rattle off a hundred things that got done, all initiatives of the chamber,” Mr. Ferré said. He said the chamber should reclaim its role as the conscience of the community, and being a “doer.” Mr. Ferré said the community came together in the past and got things done. Jose Fuentes, immediate past chairman of the Government Affairs Group, agreed. “Many years ago, the chamber was the muscle,” he said. It’s time to get that influence back, he said. “We have to be strong.” Mr. Fuentes said the chamber needs to show strength in order to develop new business for the region and make MiamiDade stronger. The chamber needs to be a strong leader again, said Mr. Fuentes, and “when being a
leader, you piss off some people.” He said it might take being controversial. “Guess what? That’s not a bad thing.” Members of the Government Affairs Group agreed that part of the problem was a lack of involvement and interest from the men and women in power today. Looking around the conference room, Mr. Ferré said, “Where are the political leaders?” “The mayors are not here… where are they?” he asked, calling out the Miami-Dade County mayor, City of Miami mayor and City of Miami Beach mayor for not attending. Mr. Ferré is today a member of the Florida Transportation Commission, Miami-Dade Metropolitan Planning Organization and vice chairman of the Miami Expressway Authority. Group members noted the attendance of only a few local elected officials to the two-day conference including county commissioners Bruno A. Barreiro and Daniella Levine Cava, and Miami Commissioner Frank Carollo. County Commissioner Esteban Bovo Jr. was a panelist Thursday at the main meeting on transportation. Pinecrest councilman James McDonald attended. One elected official from Cutler Bay in attendance – she was at the Government Affairs Group session Friday – said she was there primarily to represent the YMCA. Group members suggested – being that it is election season – inviting candidates to meet with chamber leaders on important matters, from persons running for local offices up to presidential candidates. Art Noriega, group member, suggested getting the League of Cities involved. “Almost all are elected officials… tap into them,” he suggested. Mr. Noriega agreed the chamber needs to be a stronger advo-
Photo by Marlene Quaroni
Maurice Ferré: chamber should reclaim role as community conscience.
cate and more relevant. “Let’s draw those elected policymakers here,” he said, suggesting the chamber work hard to explain the importance of the elected leaders’ presence. One person at the group session suggested campaign contributions might get the attention of politicians. “They’ll come if the price is right,” he said. Javier Betancourt, group member and deputy director of Miami’s Downtown Development Authority, said the chamber ought to reach out to voters directly because “ultimately they react to what the voters want,” he said of elected officials. This year’s Goals Conference was different than most, as state legislators weren’t finished with the budget and in fact were back in Tallahassee in a rare special session. “Normally, at this time we’d be talking about budget [for next year],” said Mr. Fuentes. But there is no locked in state budget yet, even though state lawmakers are constitutionally
required to have a budget in place by July 1. “It’s going to be messy,” he said of the special session to wrestle with healthcare issues and a budget both parties are willing to accept. Mr. Ferré suggested there’d be value in having the MiamiDade delegation in the capital join forces with the elected representatives of other urban areas in South Florida for a little extra clout. “The way to get things done is together,” Mr. Ferré said. Mr. Betancourt said Mr. Ferré was right in suggesting more influence could be wielded if Miami-Dade’s delegation joined forces with legislative delegations from neighboring metropolitan areas, but “we first need a unified voice… we need to find common ground.” The Government Affairs Group is in a way a funnel through which most of the chamber’s annual goals are refined and then presented to the executive committee for a vote.
They ultimately go to the chamber’s Board of Directors. The final list of goals, as they relate to bodies of government, would then be pushed to the respective governments for action. “How can we be better advocates [of the chamber’s goals]? How can we do a better job,” asked Joe Yesbeck, new chair of the group. The group announced Friday that chamber member Glenn Cooper, an attorney, has been tapped as a liaison between chamber committees and the Government Affairs Group. There seems to be a disconnect between the various committees and the group, group members said, and it’s hoped Mr. Cooper will facilitate better communication as a kind of “two-way conduit.” Ana Sotorrio, group member, said, “It will be an advantage to have a liaison,” and should help the chamber frame important issues. “Transportation is at the forefront of everyone’s agenda,” Mr. Fuentes said. “It’s time to take a holistic look at transportation needs.” The chamber’s last serious look at the issue was a transit summit back in 1987. “Transportation is a major, major issue. There is no bigger topic,” he said. Mr. Betancourt cited plans to send a group from Miami to Denver to study how that city has successfully dealt with public transportation needs. The outing had been planned for spring but has been moved to September, he said. “Here lies the dilemma,” said group member Sergio Abreu. In the past, chamber officials would brainstorm on solutions to problems, take the solution to policymakers and get the funding or authority to implement that solution. “I’m not sure we have a solution on transportation,” Mr. Abreu said.
Tech guru Medina gets Flagler award BY SUSAN D ANSEYAR
Like Henry Flagler, Manny Medina recognized Miami’s potential. In honor of his vision and leadership, Mr. Medina received the Henry M. Flagler Community Builder Award during the Greater Miami Chamber of Commerce’s two-day community planning and goals conference last week. The founder and board chairman of eMerge Americas, Mr. Medina said he was humbled and honored by the recognition. “It is very much your award,”
he told the business leaders assembled for the June 5 ceremony at the Hilton Miami Downtown. “I’m proud of how you turned out and responded to the call.” Technology affects us all, Mr. Medina said. “We sit on the epicenter of a multi-trillion-dollar opportunity.” Mr. Medina has spent more than 30 years as a successful businessman with expertise in technology, finance, international business and government contractor. In 1980, he founded Terremark as a commercial real estate company, constructing
office buildings. Mr. Medina raised over $1 billion for Terremark, shifted it into information technology services throughout the US, Europe, Latin America, the Middle East and Asia and sold it to Verizon Communication in 2011 for $2 billion. Credited with setting Miami as the technology hub of the Americas, Mr. Medina said everything for eMerge America coalesced with the community’s help. “All of you came together in a way I have never seen in this city before, and I’ve been here for a very long time,” he
Photo by Marlene Quaroni
Manny Medina; Ezequiel Ladron de Guevara, KPMG; Christine Barney.
said. During this year’s second eMerge Americas technology conference, Poland and Italy closed a deal. “Think of that,” Mr. Medina said. “And it happened right here in Miami.”
He thanked the business community for its help and support, closing by saying, “I’m not sure how Henry Flagler would have felt about someone receiving this award with a Cuban accent.”
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MIAMI TODAY
GOALS CONFERENCE REVIEW
WEEK OF THURSDAY, JUNE 11, 2015
Grappling with the income divide BY CATHERINE LACKNER
Broadening its service to a community segment that still struggles amidst prosperity is an important goal for the Nonprofit Business Committee of the Greater Miami Chamber of Commerce. Despite Miami-Dade County’s booming economy, 44% of its families are “asset-limited, income-constrained and employed,” essentially the working poor, said Laurie Zapletal, committee chair and business deposits officer at BB&T. If their numbers are combined with families whose income falls below the federal poverty level, the percentage rises to 50%, she added. In two Miami-Dade municipalities – Florida City and Opalocka – 79% of families are financially strapped, she told committee workshop attendees at the chamber’s annual goals conference. “We want to develop short-, medium- and long-term strategies to address this,” Ms.
Zapletal said. They include attraction or creation of jobs in mid- and high-salary fields, boosting the availability of affordable housing and improving health-care delivery. “We are looking at all of the issues.” “It’s important to collaborate with others,” said Jodie Knofsky, committee task force member and consultant for the Center for Social Change. “We also want to showcase nonprofits to the business community.” Last year, the committee held several events – including a seminar on how nonprofits can boost their social media clout, a workshop on brand-building, and two awards programs to recognize innovative programs and community involvement – that were well attended, said Isabelle Pike, committee vice chair and development director at Branches, an agency that helps families gain financial literacy. “It’s important for us to be linked,” said David Landsberg, president and CEO of Goodwill
South Florida. “The nonprofit segment is sizeable.” To that end, the committee will host “A Perfect Match: Leading Our Community to a Stronger Future” on June 17. It gives young professionals an opportunity to get involved. Reaching a younger audience is among the committee’s goals. Other objectives discussed: Focus on membership engagement and broaden community impact through collaboration with other chamber committees Make chamber memberships affordable to nonprofits and small businesses. Expand activities with the Leadership Miami program for young executives. Continue to recognize excellence in nonprofit management. Create new revenue streams for nonprofits. Consider hosting a short training session for nonprofits’ new board members. Coordinate a chamber-wide volunteer day.
Photo by Marlene Quaroni
Jessica Berrin, Baptist Health South Florida; Matthew Pinzur, Jackson Health System; and Ellen Blasi of the Green Companies at workshop.
Health committee may spotlight the uninsured BY SUSAN DANSEYAR
examine ways government spending on healthcare could be more efficient. In late May, the commission began examining the financial records of hospitals reimbursed by government for treating low-income patients. Moreover, Mr. Siegel said, the Supreme Court is to rule this month on whether federal subsidies granted to people living in states that don’t have their own health insurance exchanges comply with the Affordable Care Act. Should the justices rule that such subsidies are illegal, people living in states that use the federal healthcare marketplace – including Florida – may lose their subsidies. “We have people who are against the ACA but we have the largest number using it,” Ms. Berrin said. “I’m not sure everyone is fully understanding what this will be like for them if the money goes away.” Moving forward, workshop attendees said, the committee should convene people, including elected officials and media, to explain the structure of how healthcare issues are unfolding now. Other suggested goals for 2015-2016 include looking at ways to handle mental health and substance abuse; advocating increased coverage for wellness modalities such as nutrition, massage, yoga, and exercise; working with the chamber’s technology committee to examine cyber crime in healthcare, one of the main targets due to the amount of information medical facilities maintain; and supporting increased care for Alzheimer’s, dementia and other senior health issues. It’s a horrible day for anyone who has been forced to take a parent’s car keys away, Mr. Siegel said. For anyone faced with helping aging parents while juggling the demands of caring for children still at home, the Greater Miami Chamber of Commerce’s healthcare committee is holding a forum June 18 on ways the “sandwich generation” can balance caregiving and careers. In coming days, the committee is to cement the five goals for 2015-2016. Those wishing to add ideas can contact Tania Valenzuela, (305) 577-5491 or tvalenzuela@miamichamber.com
A woman passed a blind man on the street holding a sign asking for assistance and changed his original “I’m blind. Please help” to “It’s a beautiful day. I can’t see it.” Stephen H. Siegal shared this story with those at the healthcare committee workshop during the Greater Miami Chamber of Commerce’s annual two-day goals conference to stress what the man’s condition means for his quality of life. “We need to have a commonality of language,” said Mr. Siegal, an attorney of counsel in the Miami office of Broad and Cassel and vice chair of the committee. “We don’t yet have that to humanize what’s happening to those without access to healthcare.” To that end, the committee will look into a half-day summit open to the business community where the uninsured can share their experiences. Given the fight in Tallahassee over Medicaid expansion, workshop attendees agreed the committee needs “a commissioner of common sense” to point out the obvious in ways they have not yet been successful. Healthcare is on the forefront of the special session taking place right now, said Jessi Berrin, director of government and community relations for Baptist Health South Florida. Legislators want to be re-elected, she said, urging everyone in the room to put pressure on their representatives to protect funding for the uninsured. The workshop was Thursday, a day before the House rejected a Senate plan that sought a waiver under a privately-run health insurance plan called the Florida Health Exchange. Also termed FHIX, the plan would have allowed low-income residents in the state to buy subsidized private insurance from a new state exchange of the federal exchange under the Affordable Care Act, paid for with Medicaid expansion money. It’s a precarious time in Florida to be an uninsured individual or a not-for-profit hospital. Ms. Berrin said Gov. Rick Scott’s Commission on Healthcare and Hospital Funding will meet in Miami July 13 with hospitals he feels are not doing Details: Online registration well. The governor established the for “The Sandwich Generanine-member commission to tion,” Miamichamber.com
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GOALS CONFERENCE REVIEW
MIAMI TODAY
WEEK OF THURSDAY, JUNE 11, 2015
Big gap cited in amateur sports facilities that lure visitors BY JOHN CHARLES ROBBINS
Greater Miami is losing the game when it comes to sports tourism. That seemed to be the consensus of the Sports Committee during the Greater Miami Chamber of Commerce’s Goals Conference last week. There is a great need in the area for amateur sports facilities and the sports tourism those types of venues could draw, said committee members. As part of the committee’s brain-storming to pick its top goals, a push to gain amateur sporting fields, parks and facilities topped the list. “It’s a big market we haven’t capitalized on, in part because we don’t have the facilities” said Art Noriega, committee chairman. “There is a real need for facilities for amateur sports,” said Bob Fitzsimmons, committee member. Mr. Noriega said a profound economic opportunity is passing Miami by. “We are missing a huge opportunity,” he said. “We could be hosting a lot at the amateur level.” Mr. Noriega said it was unfortunate that the Miami-Dade Sports Commission was defunded and is being absorbed into the Greater Miami Convention & Visitors Bureau. But he said the pressure for bringing amateur sports facilities and advocating for sports tourism should now be directed to the bureau. Face it, Miami is a great place for sports. “We have the per-
fect landscape for it,” said Mr. Noriega, who is CEO of the Miami Parking Authority. The warm climate is the perfect venue for all levels of sports activity, he said, including professional, amateur and recreational. He mentioned access to the water, having a “decent” parks system, and quality university system. He also cited the huge success of sports tourism for Florida cities like Orlando. Amateur sporting facilities were built and hotels, restaurants and stores sprouted nearby to support them. Mr. Noriega said he grew up in the Tampa area, where every public high school had its own stadium. In Miami-Dade, he said, schools share facilities. Committee members agreed that adding sports facilities to accommodate amateur tournaments and contests would increase tourism – more people mean more money flowing into the region. The committee agreed to approach the visitors bureau asking that it take a more active role in attracting amateur sporting events and that it work to secure added infrastructure and facilities, perhaps through private funding or public-private partnerships. The committee agreed to research the potential economic impact on the area from sports tourism and amaetur sporting events if the area builds the necessary infrastructure. “Sports tourism is the driver,” said Mr. Noriega. A recent study referenced by
Photo by Marlene Quaroni
Bob Fitzsimmons of Rumberger, Kirk & Caldwell and Art Noriega, right, Miami Parking Authority, talk. Jennifer Sanchez records aims.
Florida Forward shows that last year amateur sports had a total economic output of $5.4 billion to the state, and attracted more than 4.3 million visitors. The fate of idled Miami Marine Stadium Park on Virginia Key was mentioned during the session. Once a vibrant and popular venue, the iconic concrete waterfront stadium has sat abandoned and decaying since 1992’s Hurricane Andrew. “This was a major event space that fell into disrepair, but it had
hosted concerts and boat races and more,” said Mr. Noriega. City leaders are finally committed to rehabilitating the stadium and the grounds around it, he said, and there is a huge push to redevelop the area. However, it is being met with “push back” and opposition, particularly from Key Biscayne officials. Members of Key Biscayne’s village council have repeatedly complained that they are not being included in deciding the fate of the stadium and park, and they worry that overuse could plug
the only way in and out of the island, Rickenbacker Causeway, with traffic. The city administration is working on a plan to spend more than $16 million to transform the area around the stadium into a flex park to host the 2016 Miami International Boat Show and afterward to install soccer fields at the site. The plan is controversial, and already one city commissioner has begun to back away from the expanded uses on Virginia Key. “No one wants to own it… for political reasons,” Mr. Noriega said. Meanwhile, the land goes unused. Other topics in the Sports Committee huddle included the plan for a skate park downtown under a portion of I-95. A nonprofit organization plans to repurpose an area under the highway as a skate park, Mr. Noriega said, and might break ground on the project in three to four months. Mr. Fitzsimmons, chair of the Sports Hall of Champions Task Force, announced plans for this year’s awards dinner and induction ceremony. The chamber hasn’t held a Hall of Champions event since 2011. The goal was to induct four Miami sports figures into the hall each year. This year’s ceremony is tentatively scheduled in the last two weeks of September, said Mr. Fitzsimmons, on the centerfield platform at Marlins Stadium – with a great view of the city, said committee members. “This will be a really good event,” said Mr. Fitzsimmons.
Chamber set to move from paper to action on sea level rise BY SUSAN DANSEYAR
Regional advocates for responsible planning and management of natural resources say Miami, while prudent to seek expert advice from outsiders, must itself do the work that will ensure it remains livable. That was just one suggestion from a very small but highly determined group attending a workshop for the sustainable energy and environment committee during the Greater Miami Chamber of Commerce’s goals conference last week. Continue working and building on plans set last year, they said, but also educate the public on Amendment 1, better utilize blustery conditions on the coastline for wind turbines and eliminate the seemingly widespread resistance to them, involve the business community on its initiatives, achieve a critical mass to advocate for sustainable energy, and partner with the chamber’s transportation team to look at similar concerns such as the effects of emissions. It is now time, committee members and workshop attendees agreed, to move from “paper to action” on the issue of sea level rise. It’s not a debatable issue anymore but a measurable, trackable and relentless reality, said Harvey Ruvin, Miami-Dade County clerk of courts and chair of the Miami-Dade County Sea Level Rise Task Force. “We all learned in ninth grade that when water heats, it expands,” he said. “We need to look at our urban infra-
structure and re-invent it to meet the threat of sea level rise.” The task force, created by county commissioners in July 2013, has several recommendations moving forward, the most critical of which is selecting engineering and other relevant expertise to develop a capital plan for fortifying infrastructure to withstand climate change and sea level rise. “To protect $6 trillion in our built environment, we’ll need a capital plan of possibly $50 million,” Mr. Ruvin said during the workshop. The task force recommends the comprehensive plan should include desalination plants, the lifting of roads, where to raise land and where to create canals. “It’s great to have the chamber focus on this issue, which wasn’t always the case,” Mr. Ruvin said. The task force recommendations, which he said would not have been possible without Nicole Hefty, who heads the office of sustainability for the Miami-Dade Department of Regulatory and Economic Resources, are now in the hands of Mayor Carlos Gimenez. Committee chairman Irela M. Bagué, president of Bague Group, described the group’s 2014-2015 goals: Promote the Southeast Florida Regional Climate Action Plan, a collaboration formed by representatives of Palm Beach, Broward, Miami-Dade and Monroe counties to devise plans for action in reducing greenhouse gas emissions and adapting to regional and local impacts of a changing climate, and highlight areas
of local business opportunities and collaborate with local League of Cities, Clean Cities Coalition and nearby counties on their renewable energy initiatives. Position Greater Miami favorably as pro-active in response to media portrayal as “Ground Zero” for sea level rise and highlight recent efforts, particularly those in Miami Beach, to become a more resilient community. Conduct three events highlighting sustainable issues such as eco-tourism, green mobility, the insurance impact and sustainable green jobs. Monitor and continue to advocate for needed water and sewer upgrades in Miami-Dade. For 2015-2016, the committee will stress the importance of the Everglades Restoration Plan. “For every $1 invested in Everglades restoration, our economy receives $4 back,” Ms. Bagué said. “It’s about our water supply, it’s important for our economy and it’s the right thing to do.” At beginning of the workshop, J.L. “Buck” Martinez, senior director for South Florida Power & Light Co.’s office of clean energy, said the energy industry is one of most dynamic. FPL, he said, provides the majority of its electricity through natural gas (66.4%) and nuclear generation (21.7%). Smaller portions come from purchased power (6.5%), oil (.1%), coal (5.2%) and solar (.1%). He said FPL plans to build three new solar photovoltaic power plants by 2016.
They are being designed, Mr. Martinez said, to cost-effectively complement other major system improvements, which include the retirement of some of the company’s oldest fossil fuel-burning units and the continued investment in clean, fuel-efficient, 24-hour power generated from US-produced natural gas and zero-emissions nuclear fuel. Noting the small solar percentage right now, Nigel B. Patterson asked why Florida doesn’t have a greater commitment to solar energy compared with California, the first state to provide at least 5% of its overall electricity from utility-scale solar power. At this time, solar energy is more expensive than nuclear and natural gas, Mr. Martinez said, adding that FPL surveys show customers aren’t willing to pay even small increases to their bills. With the large number of low-income residents and those living on fixed incomes, he said, the utility has to be mindful of those issues. As the economics of solar power improve in the years ahead, he said, FPL believes it will be able to harness more and more sunshine cost-effectively for the benefit of all its customers. When asked why FPL is not harnessing wind on the coastline for energy, Mr. Martinez said most seaside residents don’t want wind turbines in their neighborhoods because they think of them as unsightly. “Ultimately, we’ll have to go offshore,” he said. “We need a combined, balanced approach right now.”
WEEK OF THURSDAY, JUNE 11, 2015
GOALS CONFERENCE REVIEW
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Don’t wait and miss Cuba business chances, chamber told BY SUSAN D ANSEYAR
Miami cannot afford to wait and miss any opportunities in Cuba now that relations with the US are being restored after nearly six decades of mistrust, said panelists during a critical issues panel at the Greater Miami Chamber of Commerce Goals Conference last week, but they advise proceeding with awareness of the unknowns and conviction not to put Cubans at risk. This is an historic turning of the page based on the conviction that a policy of engagement works, said David A. Duckenfield, deputy assistant secretary for outreach with the US Bureau of Public Affairs. Although there’s more work ahead to lift the trade embargo and ensure reopening of embassies, he said establishing commercial relations will help Cubans be less dependent economically on their government. Right now, Mr. Duckenfield said, US business can explore a number of services for potential agreements including Cuba’s sorely lacking telecommunications infrastructure and the growing number of Cubans working in the private sector who have hired employees and expanded small businesses. Yet, he said, telecommunications is a delicate market as the Cuban government is reluctant to give the Internet to its people. Therefore, Mr. Duckenfield said, US businesses need to understand the political science and walls that have been established and be diplomats. “We need to sequence this transition politically first and
Photos by Marlene Quaroni
Political considerations come before business: Carlos Saladrigas.
economically second,” said Carlos A. Saladrigas, chairman of Regis HR Group and Concordia Behavioral Health. “The Internet will not come to Cuba until there’s a business climate to support it,” he said. “We need to help Cuba with forces of change.” This will take time, Mr. Saladrigas said, but the floodgate of change has already been opened and no one can hold it back. “Since Dec. 17, a new gold rush was unleashed and it appears the Cuban government has not begun to understand what this means,” he said. “It’s an ideological hangover and paranoia is keeping things at bay for now, but change is inevitable. This is most certainly a time for diplomacy, said Pedro A. Freyre, chairman of Akerman’s international law practice. He warned US businesses to be careful as the road to democracy and prosperity in Cuba does
not go through Tallahassee or our federal government. Cuba is a dictatorship, still a police state, Mr. Freyre said. “It’s very easy to take a tough stance when we live in a free country, but we have to be thoughtful as to what we ask Cuban people to do,” he said. “It will take a while for Cuba to be what we want it to be and we cannot put Cubans at risk to further our own goals.” On a hopeful note, Mr. Freyre said he has vast faith in the Cuban people and confidence in their abilities. “When they no longer have fear over where they will get their next meal, they will go to their government and say they don’t want to be treated like this anymore,” he said. “The best thing we can do here is empower them to say that.” Mr. Freyre said we should forget the Castro brothers and instead realize there’s a middle level of bureaucrats who will be
“We cannot put Cubans at risk to further our own goals”: Pedro Freyre.
making decisions. “Telecommunications is critical to Cuba and they understand the power of information,” he said. “The US can say we have all these products and ask whether they want them or not, forcing the bureaucrats to make a decision.” The key word is patience, said Lauren L. Valiente, senior counsel and litigation attorney with Foley & Lardner LLP in Tampa. She explained there are still very tight regulations under US law governing what businesses here can do in Cuba and advised knowing exactly what they are as well as Cuba’s set of laws. “The Cuban government has said it will protect its current political system and won’t just allow the US to do whatever it wants,” Ms. Valiente said. “We must wait to see what the parameters are.” As the daughter of Cubanborn parents, she said she fully understands the different points
of view on lifting the embargo. “Will there be repayment for property?” she asked. It will be a long process to address the myriad issues, she said, including whether new regulations will stand when we have a new president. Change will take time but it will happen, said Kai Peter Schoenhals Garcia, a director in the Dominican Republic of asset management firm VICINI, where he is responsible for trade and customs issues, new businesses and regional expansions. “Although it will be slow, you need to get into the game and talk to the new entrepreneurs in Cuba,” he said. “Capitalism will bring winners and losers.” Right now, he said, there’s a bit of trepidation, and he hears Cubans say at least they have good medicine. “You need to show the capital system works for small businesses so they lose that fear and believe in a capital system.”
Internships called proper path to prepare students for work BY CARLA VIANNA
Working with businesses and schools to better prepare students to enter the workforce was a concern in last week’s Greater Miami Chamber of Commerce Goals Conference. The answer, Education Committee members said, is to fuel the city’s internship programs. Fernando Figueredo, executive director of Florida International University’s Career Services Office, pointed out that many businesses believe universities aren’t teaching students the proper skills to enter the workforce. “We, the universities, are focused on academics, and we must abide by a number of accreditation standards,” Mr. Figueredo said. “So it is imperative for the business community to support our efforts to get students ready for careers by giving them internships.” Committee Chairman Keith Fletcher of City Year Miami had attendees congregate in groups of three or four to discuss goals. A common theme among groups was to increase internships as a way to bridge the gap between students who are graduated and those who are market-ready. Whether graduated students are sufficiently prepared to join the workforce is a common
Photo by Marlene Quaroni
In an education breakout group, FIU’s Ellen Forman, Sandra Gonzalez-Levy and Diana Rivero huddle with Christina Crespi of the Downtown Development Authority, Margaret Brisbane of Miami-Dade County.
debate within the local business community, said Msgr. Franklyn Casale, president of St. Thomas University. Aligned with the One Community One Goal initiative established by the Beacon Council to expand job growth in the community, the committee aims to work with the Talent Development Network to connect local talent to local businesses. Msgr. Casale told the committee that it should strive to get
businesses directly involved with internship initiatives. “What we need to do is get businesses more involved by showing them the direct benefit of [having] an intern; the potential for hiring as a result of interns, and the fact that they are actually contributing to the educational infrastructure of the community,” Msgr. Casale said. “With all the students we have in Miami, we need to just incrementally develop more and more
internships if we want to be globally competitive,” he said, suggesting a goal to double internships available for students each year – for example, from 200 to 400 to 800. Sean Foreman, outgoing committee chairman, said the committee felt good about its goals from the previous year. Last year’s goals included: converging technology and education, cultivating a culture of entrepreneurship, linking higher
education institutions and business owners to retain local talent, and examining the impact of early learning on workforce development. Two committee meetings, a roundtable event on entrepreneurship and a $2,500 scholarship award were noted as committee accomplishments. An additional event is scheduled June 18. Let’s Talk Tech & Ed will showcase results of a survey by the Education and Technology Committees and discuss how technology has affected workforce needs and internship trends. Two additional ideas were emphasized during the workshop: David Lawrence Jr., chair of the Children’s Movement of Florida, urged the committee to support an early learning initiative that takes form in a 24-hour service hotline, tailored to each county, in which mothers could call in and get helpful advice and information on all childcare matters. Another was to better market South Florida’s higher education scene by emphasizing the quality the quality of its institutions. “We would like more people to know,” Msgr. Casale said. “It’s a story we need to keep telling.”
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FINANCIAL TRENDS
WEEK OF THURSDAY, JUNE 11, 2015
International bankers to open training hub with global reach BY CARLA VIANNA
The Florida International Bankers Association is on the verge of launching its newly renovated training facility, equipped with the latest video and livestreaming technology, with the intent to expand its global audience. The FIBA Institute for Financial Education will serve as an education center with technology at the heart of it, said President and CEO David Schwartz. However, educational programs aren’t a novelty within the association. Workshops and classes have been previously provided live and in-person, either in the US or other countries. They’ve also been provided online. But now the association will be able to make its online sessions live and interactive. “It will allow us to provide those programs in real-time, around the world,” Mr. Schwartz said. The project, which cost several hundred thousand dollars according to Mr. Schwartz, has been in the making since last November
and is now in its final stages. An official launch is expected June 24. “In March of this year I was able to sign a memorandum of understanding with the Hong Kong Institute of Bankers, who have expressed their keen desire to be trained in the latest compliance information to adhere to the new banking standards as they reach Asia,” said Roberto Muñoz, the banking association’s chairman. “We’re also interested in introducing our regulations to other countries by use of this technology – video and related streaming – on a live basis and through our library, as a way to enhance banking around the world.” With this new facility, Mr. Schwartz said, Roberto Muñoz the association will expand its global reach while maintaining “a personal feel to it.” For example, a pre-recorded online session with an instructor will turn into a live session with an instructor, with
the participant able to virtually communicate with the instructor and ask live questions, regardless of where he or she is watching from. “That is one of the key goals of making this investment,” Mr. Schwartz said. “Given distance, it’s... not always easy to travel to local countries to deliver this content.” The association hired Casaplex, a technology company with an office on Brickell Avenue that specializes in creating smart homes and smart buildings, to renovate what used to be a conference room with minimal technology, said Roberto Muñoz, the banking association’s chairman. Derek Goldstein, principal and founder of Casaplex, said there will be two 84inch and one 98-inch displays in the new facility. One of the 84-inch displays will be an interactive touch-screen, and all three will be 4K resolution – meaning they’re four times the resolution of normal high-definition displays. Additional high-tech amenities include a lighting control system and automated shades.
Mr. Goldstein dubbed it a “smart training facility.” Mr. Muñoz said the center will be partially run by the association’s educational committee. The demand for the association’s programs has grown, Mr. Schwartz said, an example being the increased attendance at the association’s annual Anti Money Laundering Compliance Conference. This year, more than 1,400 participants showed up compared to about 100 to 150 when the conference was first held 15 years ago, he said. The Florida International Banking Association is a not-for-profit trade association with members spanning Europe, the US, Latin America and the Caribbean. Its fee-based programs are tailored for anyone in the financial service industry looking for education on compliance, wealth management and trade finance. The association offers compliance certifications in partnership with Florida International University College of Business Administration’s Executive and Professional Education department.
Bankers take different paths to deal with mobile millennials BY CARLA VIANNA
It should come as no surprise that the millennial generation has a mobile-first perspective when it comes to banking. Millennials want quick, paperless and seamless transactions, local bankers agree, but not all face-to-face interactions have been lost. To better understand the millennial banking customer, Wells Fargo conducted a study last year. Millennials, it found, are struggling with debt. Forty-two percent reported debt as biggest financial concern, and 39% said they’re overwhelmed with debt, compared to 23% of baby boomers, according to the study. However, even though this generation is concerned with outstanding debt, millennials feel confident in many aspects Photo by Maxine Usdan of their lives, said Joe Atkinson, “They are less tied-up in buying a house and see the benefits of renting,” said Orlando Roche of Sabadell. Wells Fargo’s South Florida region president. For example, said she’s observed millennials vices such as Citibank’s auto- automatically transferred from the study found that 84% be- starting to save earlier with ser- save plan, in which money is a checking to savings account. lieve they have the skills to succeed in their career, and more than three-quarters believe if they lost their job they would find a comparable one within the year (compared to 58% of boomers), Mr. Atkinson said. Because millennials were around to experience the 2008 recession firsthand, or witnessed their parents experiencing it, they realize saving is important. However, only 55% are currently saving for retirement, and those who aren’t do not plan to start until age 35, the study found. Millennials are have been described as mobile individuals – they go where the opportunity goes, said Orlando Roche, Miami-Dade County regional president for Sabadell Bank & Trust. “They are less tied-up in buying a house and see the benefits of renting,” Mr. Roche said. Photo by Marlene Quaroni Citi Retail Banking Miami Market President Diane Ryan Millennials are struggling with debt but feel confident in many aspects of their lives, said Joe Atkinson.
Banks, in turn, are adapting to this new generation while keeping core fundamentals, like relationship-building and efficiency, intact. They provide mobile apps. They use social media. They launch paperless accounts. “Millennials typically look for a seamless transition when going through a technology experience,” Mr. Atkinson said. For this reason, Wells Fargo has simplified its authentication processes via phone. A caller who goes through the process once won’t have to again, regardless of whether the call is transferred to a bank teller. “Banks have to adjust, and we have been able to serve clients in the best way possible by using technology,” Mr. Roche said. Relationships aren’t disappearing, he said, they’re just being managed differently. Before, it was one-on-one meetings. Now, millennials lean toward creating virtual relationships with bankers via email, text and video conferencing. A 2014 Citibank survey found that 53% of consumers avoid writing paper checks, and more than 20% of customers younger than 40 do not own a checkbook. Keeping in mind that millennials are going paperless, Citibank launched the Access Account, which is a checkless banking account with low or avoidable monthly charges and no overdraft fees. Although millennials prefer online banking or email correspondence, Mr. Atkinson said he’s noticed a preference to have face-to-face interaction when it comes to millennials making an important financial decision. When they don’t step into the branch, Ms. Ryan said Citibank is engaging them through social media. The bank also designed an app for the Apple Watch. “We’re finding new ways to resonate with this demographic,” she said.
WEEK OF THURSDAY, JUNE 11, 2015
FINANCIAL TRENDS
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Delinquent properties tumble again BY JOHN CHARLES ROBBINS
Photo by Maxine Usdan
Half of UM’s MBA students study finance, said Dean Eugene Anderson.
Miami financial scene boosts university roles BY CARLA VIANNA
The finance major in local colleges and universities continues to see an influx of students, particularly within the investment realm, and business schools point to Miami’s budding financial scene as a determining factor. “It used to be largely banking and international banking,” said Stephen Morrell, professor of economics and finance at Barry University. But now, with the wealth management and investment side of the city growing, students are becoming more aware of that, he said. Within the finance major itself, the investment side garners more interest, Mr. Morrell said. Within investment, he’s observed an uptrend of students studying to become security analysts and portfolio managers. As more financial firms gain a foothold here, students’ financial interests continue to peak, said Eugene Anderson, dean of the University of Miami School of Business. Dean Anderson said finance is one of the fastest-growing areas at his business school. Anuj Mehrotra, vice dean of graduate business programs and executive education at UM’s business administration school, said there’s been an increase in the private wealth management sector. Even if students pursue other majors within business, such as accounting, marketing or economics, finance studies usually sneak their way in. Mr. Morrell said he’s seeing plenty of students at Barry double-majoring, for example, in accounting and finance, or coupling finance with a minor such as statistics. The universities respond to the increased demand with programs like Barry’s Student Managed Investment Fund, which offers the opportunity for students to invest real money as
well as educate younger students in financial literacy. UM launched a master’s of science in finance last year, Mr. Mehrotra said. This year they received four to five times more applications for the program, he said. “There is an increase in demand for these specialty master’s programs in areas of finance and business analytics programs,” Mr. Mehrotra said. “There’s also a demand from many of recruiters as well as many opportunities for students in the job market in [those areas].” Dean Anderson agreed, saying financial firms are hiring again. At UM, about 50% of students seeking a master of business administration pursue finance as a concentration area, while 20% pursue business analytics. Florida International University has one of the largest master’s programs in real estate in Florida, with demand growing for the university’s international real estate graduate degree. At FIU’s College of Business, an accounting minor adopted last year has been increasingly popular with finance majors. Within the university’s undergraduate and graduate programs, demand is increasing for financial software courses. Big data and business analytics are trending upward too, Mr. Mehrotra said. Although Miami Dade College does not offer a full, fouryear undergraduate degree in finance, it has seen growth in degrees within banking, said Thania Rios, associate dean of the school of business. At a more advanced level, research in neuroscience is being applied to the investment field at Barry – essentially studying brain reactions and decision-making when markets go well or turn sour.
The number of properties eligible for liens after missing the April 1 deadline to pay real estate taxes in Miami-Dade County continues to drop, which is consistent with an improving economy. This is good news for the taxing units in the county – cities, villages, schools, fire departments – as they will see little to no change in the regular periodic tax payments from the county. That’s the word from the Tax Collector’s Office. Delinquent properties for tax year 2014 totaled 48,636. That’s how many were advertised in this year’s annual delinquent property tax certificate sale, according to Marcus L. Saiz de la Mora, county tax collector. But some property owners made good in the days leading up to last week’s online auction, where 37,599 properties were open and available for sale on June 1, said Mr. Saiz de la Mora. Last spring the total of delinquent properties was 54,488, a decline from the 2013 tally of 55,564. The numbers illustrate a much improved tax collection rate for Miami-Dade and all of the taxing units in the county that rely on the county to collect and distribute the taxes throughout the year, according to the Tax Collector’s Office. By comparison, when the area was still in the clutches of the economic downturn the county saw 76,290 properties delinquent in 2010, still a sizeable drop from the 85,318 in 2009, according to county records. The county has lately seen an average tax collection rate of about
94%, considered a healthy rate. Successful collection means taxing units can expect to receive revenues in a timely manner. If the delinquency rate is higher, the timing of the governments’ tax receipts could be impacted. If the process is working well, say with a collection rate of 92% or better, the taxing units get their money on a regular schedule. Real property tax notices are mailed to the owner and address of record on or before each Nov. 1 for the prior calendar year January through December. The property values are based on a value assessment as of Jan. 1. Upon completion of the certified tax roll, the property appraiser delivers the certified tax roll to the tax collector, who mails tax notices to the last owner of record and collects monies due for the various taxing authorities. Property taxes are payable by March 31. Properties are considered delinquent April 1 if taxes aren’t paid. According to Florida statute, the taxpayer is “held to know” when taxes are due and payable. If a taxpayer does not receive a tax notice in November, it is the taxpayer’s responsibility to contact the Tax Collector’s Office to request a duplicate tax notice. Beginning on or before June 1, the tax collector is required by law to hold a tax certificate sale. The tax certificate represents a lien on unpaid real estate. Interest accrues on the tax certificate from June 1 until the taxes are paid. The amount of the certificate is the sum of the unpaid real
estate tax and the non-ad valorem assessments, penalties, advertising costs and fees. Each year’s tax sale – an online auction – begins June 1 and runs four days. Prospective buyers bid percentage rates and are willing to pay the outstanding taxes. This money is also collected and distributed by the county to the taxing units. The result of last week’s auction was a total face value sold of more than $154 million, said Mr. Saiz de la Mora. “Monies received through the sale will be distributed to the various taxing authorities in MiamiDade County, providing funds necessary to cover their budgeted operations for the remainder of the fiscal cycle,” he said. The county tax office handles billing on more than 880,000 properties. Each year’s delinquent real estate tax list is typically published in May. The tax lien is really a financing instrument that accomplishes two things: It gives delinquent taxpayers additional time to pay taxes, and also allows the taxing authority to get the much-needed funding for public services for the remainder of the fiscal year. Delinquent property owners get a two-year window to pay back taxes, fees and interest. If there are no bidders for the tax certificate, the certificate is “struck off” or issued to MiamiDade County and is retained in possession of the tax collector. Also, a tax certificate representing less than $100 in delinquent taxes on property that has been granted homestead exemption is struck off to the county. Any tax certificate stuck off to the county accrue 18% interest.
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