Miami Today: Week of Thursday, June 30, 2016

A Singular Voice in an Evolving City

WEEK OF THURSDAY, JUNE 30, 2016

WWW.MIAMITODAYNEWS.COM $4.00

FINANCIAL TRENDS

Mortgage financing easier, but not for everyone, pg. 13 REVIEW CHARTER PROPOSALS: Miami Commissioner Francis Suarez, chair of the 14member City of Miami Charter Review and Reform Committee, presented the group’s final report to commissioners June 23. Mr. Suarez called the committee’s 17 recommended changes to the city’s rule book “very comprehensive reforms.” They include form of government, how to handle city-owned property, public safety issues and more. The city commission will decide which recommended changes to place before voters in the November general election. Commissioners scheduled a workshop to review the committee’s report for 9 a.m. July 13 at City Hall. It will be open to the public. A second meeting might choose which of the 17 recommendations to condense into ballot questions.

Brexit brings surprise demand for currency exchange, pg. 14

THE ACHIEVER

BY JOHN CHARLES ROBBINS

HOTEL OCCUPANCY DIPS: Miami-Dade’s average daily hotel occupancy fell to 81.3% for the first five months of this year from 82.5% in the same five months of 2015. The number of rooms sold in that period actually rose 2.5%, from just under 6.3 million total last year to close to 6.5 million this year, but that gain couldn’t keep pace with the 4.1% increase in rooms in the county as new hotels have been added since May 2015. The room supply of 50,533 in the period last year increased to 52,618 available each night this year. The Greater Miami Convention & Visitors Bureau points out that revenue per available room, which fell from $189.36 in the first five months last year to $181.62 this year, declined 4.1% but was still third highest in the US. Also third highest was average daily room rate, which fell 2.6% year over year to $223.45.

UNIVERSITY’S LARGEST FALL CLASS: Florida Memorial University in Miami Gardens says it has accepted its largest class ever for fall, 3,780 applicants of the 7,000 who applied. The academic profile for the university has increased to a grade point average of 3.0, with the required Scholastic Aptitude Test scores raised by 100 points. Reynolds Brown, vice president of enrollment management, said social media and specialized email media and marketing strategies added to the influx of students at the historically black university, as did on-line campus tours. Of applicants this year, 70% were from Florida, the university said.

WYNWOOD BUY: New York investor Aron Rosenberg has purchased a corner lot in Wynwood adjacent to a site he purchased in March with the aim of development of an undisclosed project. He paid $11.5 million for 2916 N Miami Ave., across from the Midtown Malmart development site, after spending $6.5 million in March for 2994 N Miami Ave.

Oscar Feldenkreis

Photo by Marlene Quaroni

Melds fashion, marketing strength to guide Perry Ellis The profile is on Page 4

Mana’s Wynwood trade, art, retail hub gets OK

BY JOHN CHARLES ROBBINS

The vision to transform more than 23 acres of mostly barren lots into a center for trade, art, retail and more survived its first hurdles when Miami commissioners granted preliminary approval of land use and zoning changes for Mana Wynwood last week.

The large project proposed by Moishe Mana promises to bring millions in new tax dollars to the city and county and create thousands of jobs. The plan also offers the city a new fire station.

The long-term project is planned in the southwest corner of the Wynwood Arts District.

While the Wynwood Business Improvement District board supports the project, that support is tied to conditions that were negotiated over nine months.

City commissioners are supportive too, but Chairman Keon Hardemon is pushing Mr. Mana for local jobs, good wages and the inclusion of affordable housing before the commission’s final votes.

Commissioners approved on first reading two ordinances. One rezones the property to the Mana Wynwood Special Area Plan, or

AGENDA

Attractions multiplying at SkyRise

SAP. The other is a development agreement between the developer and the city.

The purpose of a Special Area Plan is to allow parcels greater than nine abutting acres to be master planned to integrate public and private improvements and infrastructure.

The Mana Wynwood SAP is a six-part phased project that includes 9,719,083 square feet of development, consisting of about 3,482 residential units, 8,483 parking spaces, 51,146 square feet of civic space and 168,287 square feet of open space.

The development agreement would authorize residential, commercial, lodging, civic, educational and civil support, parking garage and other uses authorized by the Mana Wynwood SAP. “This is a very exciting project for us,” said Iris Escarra, an attorney representing Mr. Mana, who she said has worked hard to get community input into the project.

Project architect Bernard Zyscovich called the project “truly transformational,” a major urban space “not driven by residential development,” although that is a part.

Arts and education will be a major part of Mana Wynwood, he said, along with commercial job creation for the city.

SkyRise Miami, a 1,000-foot vertical amusement center planned to become the focal point of Miami’s skyline, is evolving with added attractions.

“We’re still hoping to recommence the construction by year’s end,” developer Jeff Berkowitz told Miami Today on Tuesday.

Sports and entertainment company Legends announced Monday it will help design and operate the tower, planned to rise over Biscayne Bay behind Bayside Marketplace. Mr. Berkowitz said he still plans to boast in 2020 that SkyRise Miami is the tallest building in Florida.

Legends said SkyRise will offer multiple observation venues, interactive exhibits, thrill rides, family attractions and dining options.

When unveiled in 2014, SkyRise was to include observation decks, nightclubs, a flight simulator and a bungee jump-like platform, costing an estimated $430 million.

But the cost, Mr. Berkowitz told Miami Today on Tuesday, “has escalated beyond that, based on additional attractions that we’ve added.”

Without citing specifics, he said, “We’ll be announcing the attractions as we go forward. We’ve added very exciting amusements to the project, as we work with Legends to maximize both the experience and the revenue.”

Legends, owned by the New York Yankees and Dallas Cowboys, said it will be responsible for the tower’s development and operation, creating guest interactions and food and beverage offerings, executing marketing, programming and sales strategies, and overseeing day-to-day management.

Legends is making a financial investment in the project, Mr. Berkowitz said. He declined to say how much.

The tower is to rise on cityowned land that was a parking lot for Hard Rock Cafe. In 2014, commissioners approved new leases to allow the project, and voters OK’d the deal.

Mr. Zyscovich said Mana Wynwood will carve out open space to be designed as Mana Commons, extending several blocks through the site. The commons area would be about 110,000 square feet, or 2.5 acres.

A presentation from Mr. Mana said anticipated economic benefits from the project include 14,860 construction jobs, with about $715 million in wages; 22,000 direct and indirect new full-time jobs, generating $1 billion annually; and $36 million in annual ad valorem taxes.

Remaining concerns cited by the Wynwood Business Improvement District include ensuring that Mana will support the district’s expansion so that the development’s significant impact on the community can be balanced with its contribution to enhanced security and sanitation services.

The district also wants Mana to adhere to 100- to 120-foot setbacks on Northwest Second Avenue, which is the heart of Wynwood and the center of much of the neighborhood’s activity, and limit its use of temporary use permits for special events More variety slows project, pg. 8 at Mana Wynwood.

FOR QUICK FIXES, COUNTY USES REHABILITATED PUMPS ...

2

MEXICO MISSION BRINGS BACK PORT TRADE ALLIANCES ...

9

PILOT EFFORT MAY BAR SOME NIGHT STORE DELIVERIES ...

3

650 RENTAL UNITS ON RIVER CHANNEL GET THUMB’S UP ... 22

VIEWPOINT: MAYOR-MANAGER AN INCOMPATIBLE ROLE ...

6

MIDTOWN RENTS, DEMAND SOAR, OUTPACING BRICKELL ... 23

CONSTRUCTION EMPLOYMENT SWELLS BY 17% IN YEAR ...

8

AMERICA’S LINKAGE TEAM PLANS A MISSION TO SPAIN ...

23

2

MIAMI TODAY

TODAY’S NEWS

THE INSIDER TICK-TOCK, TICK-TOCK: Miami Commissioner Francis Suarez thinks it takes far too long to get a building permit in the city, especially if you’ve got a small project and you don’t have a team of architects and lawyers to speed the process. Commissioners recently approved his resolution directing administrators to examine the building department’s permitting processes, particularly for smaller projects and for applicants who don’t use a permit expediter, and recommend how to improve them.

Improvements could include using the existing electronic system for permit approval, hiring more plans examiners, introducing a true fasttrack process, allowing engineers to certify plans through peer reviews, coordinating between departments for issuing building permits, and anything to lessen the time it now takes to issue building permits. The administration is to report study results in 60 days.

A PLEA FOR FUNDING: A rise in gun violence against Miami youths is a form of domestic terrorism, says city Commissioner Keon Hardemon. He sponsored a resolution urging the US Attorney General and the US Attorney for the Southern District of Florida “to use all available resources to investigate and prosecute acts of domestic terrorism in the City of Miami, thus eliminating the terror these individuals inflict on our neighborhoods.” The commission approved the measure unanimously June 23. “We need more support from our federal partners in order to solve this issue,” said Keon Hardemon Mr. Hardemon, who chairs the commission. The resolution quotes Katherine Fernandez Rundle, state attorney for Eleventh Judicial Circuit of Florida: “I deeply believe that it takes a partnership of citizens, law enforcement and prosecutors to get these shooters off our streets.

Everyone must do their part.”

836 SW EXTENSION STUDY: There will be a corridor workshop for the SR 836/Dolphin Expressway southwest extension study from 6 to 9 tonight (6/30) at the Archbishop Coleman F. Carroll High School gym, 10300 SW 167th Ave. BANNING FRACKING: Miami-Dade commissioners unanimously approved on first reading last week a county-wide ban on well stimulation techniques for oil and gas exploration, commonly referred to as “fracking.” The ordinance, sponsored by Daniella Levine Cava, will go to the Metropolitan Services Committee for a public hearing Sept. 13. If ultimately passed by the full commission, Miami-Dade would become the largest county in the state to ban fracking and would join more than 70 other local governments that have either prohibited the Daniella Levine Cava practice or called for Florida to ban it.

TRAILING THE MONEY: Three trail projects have received more than 56% of the funds that the state has sent to Miami-Dade County’s Parks, Recreation, and Open Spaces Department over the past 10 years, according to a report by Mayor Carlos Gimenez, made at the request of Commissioner Javier Souto. The state send the county department more than $30.7 million over that period, with almost $17.3 million of that going to the Ludlam Trail, the Snake Creek Trail and the Biscayne Trail. The Ludlam Trail got $6,534,940, the Snake Creek trail $6,480,000 and the Javier Souto Biscayne Trail $4,350,000 from the state.

CITY BOND SALES: Hallandale Beach was to sell $23.3 million in capital improvement revenue bonds this week to partially refund city obligations under a loan agreement with the Florida Municipal Loan Council and to finance construction of a fire station and a recreation center. The sale was to follow $56.1 million in general obligation bonds issued the week before for park and recreation facilities. Fitch Ratings rated this week’s issue at AA and last week’s at AA+.

SHELTER EXPANSION A GO: Two zoning items tied to a plan for a new women’s shelter in Overtown gained final Miami City Commission approval June 23. The $25 million Lotus Village entails redeveloping the existing property by replacing five buildings with a single, apartmentstyle residential building. The commission approved a land use change and rezoning of about 1.3 acres at 220 and 226 NW 16th St. Lotus House has served more than 1,800 women over the past decade, yet turns away nearly 2,000 women and children yearly because the buildings are too small and outdated. Redevelopment of Lotus House Women’s Shelter will provide housing and expanded supportive services for women and children, a neighborhood health clinic and a children’s wellness center.

FUNDING STADIUM RESTORATION: Miami city commissioners on June 23 authorized City Manager Daniel Alfonso to accept donations associated with a crowd-funding campaign by the National Trust for Historic Preservation and Heineken USA Inc. to raise funds to renovate Miami Marine Stadium. City officials plan to restore the waterfront stadium on Virginia Key, abandoned and deteriorating since Hurricane Andrew in 1992.

Crowd-funding raises contributions from a large number of people, often via internet-mediated registries.

Funds raised through these efforts are to be used to Daniel Alfonso remove the remaining seats inside of the stadium and repair any damage caused by their removal. Any remaining funds raised through these efforts after the seat removal are to be appropriated and expended by a separate commission vote.

CITY CENTRE PRICES RISE: Swire Properties Inc. says Brickell City Centre’s REACH residential tower has sold more than 90% of its units and holds well over $180 million in closings while RISE, the second condominium tower, is more than 45% sold. Unit sale prices increased by 10% as of June, Swire said.

CORRECTION: In a June 16 Best of Miami article about transportation leaders, the first name of Neal Sklar, a partner at the Peckar & Abramson law firm who developed last September’s P3 Institute Conference, was misspelled.

WEEK OF THURSDAY, JUNE 30, 2016

To meet water, sewer crisis decree, county looks to rehabilitated pumps

BY SUSAN DANSEYAR

When county commissioners unanimously approved ratifying contracts the administration awarded as part of the Water and Sewer Department’s Consent Decree and Capital Improvement Program Acceleration last week, Chairman Jean Monestime said he will meet with Director Lester Sola to discuss his concerns that only 10 or 12 of 1,100 water and sewer pumps throughout the county will be brand new. The majority, Mr. Sola said, will be rehabilitated.

At this time, he told the commission, the department is close to rehabilitating or building 200 pump stations.

“We’re looking at all the pump stations for quick fixes to get them out of moratorium,” Mr. Sola said in reference to the resolution ratifying the actions of the administration: awarding a $8.8 million, six-year contract for upgrades to the MiamiDade North District Wastewater District Plant; a $8.8 million, six-year contract for upgrades to the Miami-Dade South District Wastewater Treatment

‘We’re looking at all the pump stations for quick fixes to get them out of moratorium.’

Lester Sola Plant; a $10,760.850, 462-day contract for a 36-inch ductile iron water transmission main along Southwest 152nd Street from Southwest 137th to 112th avenues; and a $17,895,350, 834-day contract to construct the North District Wastewater Treatment Plant Pretreatment and Sludge Transfer Rehabilitation.

On Sept. 3, 2014, commis-

sioners authorized the administration to award contracts for funded capital projects and related goods and services to accelerate the approval of the Water and Sewer Department’s consent decree projects and those identified in the department’s multi-year capital improvements program without the need for prior board approval but subject to its ratification.

Before last week’s vote, Juan C. Zapata formally announced he would be abstaining in compliance with Danielle Levine Cava’s new ordinance pertaining to elected officials’ transparency about conflict of interest.

“It has come to my attention that I have a potential conflict of interest [having been in a business relationship with one of the contractors being awarded a professional agreement],” he said. “It is with an abundance of caution that I will be removing myself from the chamber.”

Mr. Zapata continued to list the dictates of the legislation he would follow, including filing a statement. His words were met with laughter from more than one fellow commissioner.

Turnpike’s support for transit limited by its mission, county planners learn

BY CATHERINE LACKNER

Now that the Strategic Miami Area Rapid Transit plan has been launched, members of MiamiDade County’s Metropolitan Planning Organization (MPO) want to make sure critical alliances are in place to support the program.

The plan identifies six corridors for improvements, with express-bus service feeding commuters into the corridors in some cases. Some of the buses are envisioned to run along the shoulders of the Florida Turnpike.

“I have a question and a concern,” said Dennis Moss, county commissioner, MPO member and chair of its Transit Solutions Committee. “One of the concerns I have is the role that the Turnpike Authority, or Enterprise, will play as part of our SMART plan. We have advocated for bus express rapid transit Dennis Moss that depends on having access to certain turnpike thoroughfares.”

The Turnpike Enterprise is building its own express lanes now, he said, along the same corridors, and that might jeopardize access for the express buses.

“We need to have the Turnpike here as part of our discussions,” Mr. Moss said. “We need their buy-in for this to work.”

“We have reached out, with the mayor’s office, to the Turnpike,” said Aileen Boucle, MPO

executive director. Alice Bravo, director of the county’s Transit & Public Works Department, has been part of the effort, she said.

“We’ve asked the head of the Turnpike to come here to Miami and meet with us directly, so we can brief them on the SMART plan and discuss the critical role the Turnpike has to advance the plan,” she said. That meeting has been set for Sept. 1, and Jim Boxold, director of the Florida Department of Transportation, has been notified of it.

“We hope to have a favorable meeting and a very favorable response,” Ms. Boucle said.

“I will note that the Turnpike does routinely coordinate with the MPO and their plans,” said Jim Wolfe, new transportation department secretary for District 6, covering Miami-Dade and Monroe counties.

“The turnpike is very different from the rest of FDOT [Florida Department of Transportation] in that their money is toll revenue, and the projects they do are supported by bonds issued based on future toll revenues,” Mr. Wolfe said. “That gives the Turnpike certain limitations in the use of their funds. They have covenants with bondholders.”

While the Turnpike Enterprise is supportive of transit projects, “that isn’t their mission,” Mr. Wolfe said. “The rest of FDOT is likely to be a more active partner on the SMART plan.”

However, the Turnpike Enterprise will offer toll-free transponders to express buses, he said, which is proof of its support for mass transit.

Mr. Moss suggested the group

get state legislators involved. “Everything kind of falls on us locally, but we’ve got state representatives who have some oversight and responsibility for FDOT and the Turnpike. We need their buy-in.”

“I really believe that change has to occur at the state level, whether it’s through statute or just the will of the state transportation department,” said Bruno Barreiro, county commissioner and MPO member. “We know they are very, very conservative with their dollars, but they have the ability and the capacity to add infrastructure, early on, that would help expand our systems. That should be a coordinated effort with the MPO.”

We want to hear from YOU! Phone: (305) 358-2663 Staff Writers: Camila Cepero ccepero@miamitodaynews.com Susan Danseyar sdanseyar@miamitodaynews.com John Charles Robbins jrobbins@miamitodaynews.com Letters to Editor editor@miamitodaynews.com People Column people@miamitodaynews.com Michael Lewis mlewis@miamitodaynews.com

Like us: Miami Today Follow us: @MiamiTodayNews

WEEK OF THURSDAY, JUNE 30, 2016

TODAY’S NEWS

MIAMI TODAY

3

Miami pilot program may bar some night delivery to stores

BY JOHN CHARLES ROBBINS

Commercial deliveries in the dead of night are keeping some Miamians from getting a restful sleep, according to Miami City Commissioner Francis Suarez.

He wants to change that.

Mr. Suarez authored a proposal to limit commercial delivery hours to businesses that abut residential neighborhoods.

It passed unanimously on first reading June 23. A final vote could come in late July.

The specific proposal would limit off-street freight and commercial deliveries to businesses within 100 feet of properties in the T-3 Transect Zone – typical residential neighborhoods of single-family homes and duplexes under the city’s Miami 21 zoning ordinance.

Mr. Suarez said his office has been inundated with complaints about deliveries in the night.

“We’re having a variety of issues,” he said, “particularly one with the Home Depot on 29th Avenue and Eighth Street that has for many years been creating a variety of issues with our residents, and some of our residents have not been able to sleep at night because deliveries are coming in at all hours.

“So this is meant to ensure

Francis Suarez: an issue of sleep.

that our residents have a peaceful night’s sleep, and deliveries can be made within hours that are reasonable and not in the middle of the night,” he said.

The amendment says work and noise created by off-street freight and commercial deliveries directly affects residential neighborhoods adjacent to the delivery sites, and these deliveries at any hours of the day or night directly impact the quality of life in single-family and small multi-family residential zones.

The measure says it’s in the city’s best interests to curtail freight and commercial delivery times to have less of a negative impact on the lives and welfare of the residents within 100 feet of a delivery site.

The amendment also notes

that commercial property owners can control deliveries to their properties.

The proposal would outlaw freight or commercial deliveries within 100 feet of a T-3 Transect Zone between 11 p.m. and 6 a.m. Violations would trigger $500 fines to the property owner.

After Commissioner Wifredo “Willy” Gort raised concerns, commissioners agreed that the rule would only apply in Mr. Suarez’s District 4 as a pilot program.

Mr. Gort asked if the proposed rule would apply to the entire city. He mentioned that a produce market in his district – District 1, which includes Allapattah – starts work at 3 a.m. with deliveries and the business is within 100 feet of a T-3 neighborhood.

“If you stop those people from deliveries at 3 in the morning, it’s going to affect their business quite a bit,” Mr. Gort said.

Mr. Suarez asked Mr. Gort if he gets complaints about the early morning deliveries to that market. Mr. Gort said no, but he said his office receives continual noise complaints about train whistles in the middle of the night.

“I get complaints about the

Willy Gort: more peak hour traffic.

whistle blowing at 4 in the morning, and I haven’t been able to stop that for the last three years,” he said.

“So how do we work it out, because I get complaints about this – big time,” responded Mr. Suarez. “I’ve been getting these complaints routinely for years, and the city attorney knows because she’s been copied on all the emails.”

City Attorney Victoria Méndez suggested looking at all the T-3 areas in the city before the final vote.

“Look, you’ve got to really analyze it,” Mr. Gort said.

“You’ve got Eighth Street, you’ve got Flagler, Northwest Seventh Street, so this is something we really need to look at.

At the same time, you’re put-

ting all this traffic on the street at peak hours… I don’t know,” said Mr. Gort.

“I hear you,” said Mr. Suarez.

“A lot of times when we do things we’re balancing a variety of interests, and I think for me, my number one interest is the residents that I represent,” Mr. Suarez said.

Mr. Suarez made the backup warning sound for large vehicles – “beep-beep-beep” – and said if there were loud deliveries next to his house at 4 a.m. he would be “very upset.”

Mr. Gort suggested looking at traffic patterns in this attempt to avoid the noise of commercial deliveries disturbing abutting residential areas.

“I’m open to anything that solves my problem but doesn’t create a problem for your district,” Mr. Suarez said.

The result was that the proposal will be amended before a final vote, limiting its scope to commercial deliveries within 100 feet of T-3 properties in District 4, on a trial basis for one year.

Mr. Suarez said the program can be analyzed after the first year before considering whether to expand it to all businesses that abut T-3 Transect Zones citywide.

Photo by Maxine Usdan

Charles Scurr cited talks with Uber on the feeder patterns to transit.

Trust puts first and last mile first

BY CATHERINE LACKNER

Among priorities for next year, the Citizens’ Independent Transportation Trust has targeted solutions for the “first and last mile,” the distance commuters travel from their homes to public transit and from transit to their destinations.

“There’s been a lot of discussion with Uber on how we can more efficiently come up with that feeder pattern,” Executive Director Charles Scurr told the trust’s directors June 16. Plans are underway for the trust to hold a half-day symposium on the issue before year’s end, he added.

“We want to bring in some of our best local talent, and maybe there are a couple of national speakers we might want to bring in,” he said. “We want to work with the Transit & Public Works Department and our other transportation partners to put together a good strategy for that first and last mile.

“It’s going to require changes to our ordinance, because we have some real restrictions about what surtax funds can be used for in this regard,” Mr.

Scurr said. “We think a good progressive approach is the way to go.”

The group also will continue to host transportation summits, which it has done since 2013.

The next is tentatively planned for next May or June. “We want it to be timely; that would be right before All Aboard Florida opens, so we think it might be a good time.” The trust might wait until after the train service has launched, however. “Maybe we need to build on that success,” Mr. Scurr said.

A third goal is to repackage and re-market PTP 2.0, the trust’s roadmap for transit improvements. Though public acceptance has been excellent since the new transportation funding plan was announced last October, Mr. Scurr said, a new and enhanced logo, a “rebranding” of the trust as its creator and more community outreach might boost it even further.

The executive director’s office will present final objectives and a proposed 2016-17 budget to the board in July, he said, to be in sync with Miami-Dade County’s budget process.

INNOVATION FOR TOMORROW

Miami Cardiac & Vascular Institute at Baptist Health South Florida has advanced care in the region for nearly 30 years – keeping innovation and the highest quality at the heart of everything we do.

The Institute is composed of a multidisciplinary team of physicians who have achieved international acclaim for their breakthrough research and impact on cardiovascular care. Experience the advantage of our commitment to helping patients lead healthy lives.

Call 786-596-2700 today to see one of our experts or learn more by visiting BaptistHealth.net/Heart

$ QRW IRU SURðW RUJDQL]DWLRQ VXSSRUWHG E\ SKLODQWKURS\ DQG FRPPLWWHG WR RXU IDLWK EDVHG charitable mission of medical excellence. For giving opportunities, visit BaptistHealth.net/Foundation

6

MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, JUNE 30, 2016

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

Mayor and manager roles are incompatible – split the job Commissioner Rebeca Sosa is moving to rework county hall by splitting the jobs of mayor and manager.

Don’t fall asleep on me here. This isn’t minutia.

It could be pivotal to leadership of a Michael Lewis county in the global spotlight that’s larger than many nations in economy, size and population.

We rolled manager and mayor into one job four years ago. By luck, that’s done no harm yet, because Mayor Carlos Gimenez is actually a solid government manager. But we aren’t likely for decades to find another former commissioner who had also run a major government as a hired hand and is a nuts-andbolts guy. It’s luck, pure and simple.

Commissioner Sosa didn’t say so, but separating the jobs again would remove the luck and set up structure that will be vital when a mayor with different strengths who hasn’t administered big government wins office.

Before we merged two opposite roles, we hired professional county managers to carry out policies set by our legisla-

tive branch, the county commission, and actions ordered by our executive branch, the mayor. Control was always with the mayor and commission, never the manager, who could be fired anytime.

The mayor, as today, was elected as our county’s face, the person who had the bully pulpit to rally the public and other elected officials toward major actions, set out broad county vision, greeted dignitaries and guided us in crises. You could liken it to the national role of president.

The manager’s role required very different skills and personality. The manager – the good ones – ran a staff of 25,000, 88% in union jobs, with an even hand without regard to outside pressures. The manager had to slot people in the right roles and be sure they performed, but also had to protect staff from public or internal retribution.

Most important, the manager had to carry out commission policy and the mayor’s orders. Managers made no policy but administered the policies of others. They had to report to both commissioners and the mayor, follow directives and provide information.

A manager also had to know every function, from police and fire to sewers and water, from land use and planning to housing, from air and sea ports to budgeting and fiscal controls. It’s the

job a large company’s chief operating officer does.

That manager’s job sounds nothing like the mayor’s, does it?

The mayor is the outside gal or guy, rallying the public, attending gatherings, putting out the county’s message, while at the same time politicking to get commissioners aboard on major visions, programs the county needs.

The manager, meanwhile, is Ms. or Mr. Inside, planning and carrying out policies and making what the mayor and commission decide work well, at lowest cost and highest impact.

Stitching the two jobs together was a big error, akin to asking the principal ballerina to also run the theater or the star quarterback to also manage ticket sales and the stadium.

But while Mayor Gimenez has been a good manager, that hasn’t always helped him lead as a mayor.

For example, as manager, the commission frequently orders Mr. Gimenez to report in 60 days or carry out commission policy. But the mayor is our highest elected official, not an employee.

He should stand on his own as a power and a leader, one who needs to line up commission votes for his policies – a stance that is undercut by the job requirement that he also follow commission orders as manager.

This is one of four major fixes that

county structure needs (the others are paying commissioners fairly, not the present $6,000; electing them from districts but with countywide voting, to reduce parochialism; and incorporating the whole county into cities to free every commissioner to look at big picture opportunities).

Depending on the people involved, county government might work well even with all these structural flaws or could occasionally stumble with even the best structure. But the right format vastly increases the odds of better public service.

Facing a balky committee, Ms. Sosa this month delayed action on a mayormanager split to instead study how other big counties handle that issue and look at other changes. But she made it clear that she wants to move fast, though change wouldn’t take effect until 2020.

Oddly, as Ms. Sosa moves to set a county flaw aright, Miami commissioners are being asked to look at city charter changes that would merge the roles of manager and mayor there, copying the error that Ms. Sosa is seeking to erase.

One principle applies in both city and county: a mayor should be a strong visionary leader with clout, a manager should a solid internal organizer who sets no policy but carries it out with brains and backbone. Those aren’t the same skills or the same job. Separate them.

To make cars optional, bring back the neighborhood circulator When I recently called a ride-share company I was given the option of ride sharing for $3 or riding alone for $30. Suffice it to say, I chose the $3 ride share option, received a significant discount and had the Xavier Suarez luxury of riding with a celebrity.

Aside from the occasional ‘luck of the draw’ ride share experience noted above, there is an indubitable issue looming before us – the immediate need for a more cohesive travel system between county transportation facilities and the surrounding neighborhoods that utilize public transit.

For example, one of my aides routinely commutes to work by public transportation (it is worthy to note that only 7% of Miami-Dade County’s commuters use public transit), and not only has to have her husband drive her to the bus stop but spends a goodly portion of her time waiting at each bus interval prior to reaching the Metrorail station.

Virtually every public transit trip most likely includes a personal method of travel at the beginning or the end; often it is a car, which then has to be parked in a lot costing as much as $4 a day. Walking, bicycling or for-hire transportation services are popular alternatives for traveling “the first and last mile,” which is the segment of the commute not served by mass transit.

In the incorporated areas, the first and last mile is often provided by trolleys, operated by cities using their 20% share of the half-penny sales tax. However, the unincorporated areas do not receive their

The Writer Xavier Suarez is the Miami-Dade County commissioner for District 7. fair share of that tax and are particularly devoid of public transit options. Instead of being “car-optional” they are “carrequired.”

During the past year, I have had Sunshine meetings with commissioners who have few, or no, municipal governments in their district (Juan Zapata, Javier Souto) and with the chairman of the Transit and Mobility Committee (Esteban Bovo Jr.) in an effort to provide neighborhood circulators that will solve the last-mile dilemma and feed the mass-transit system, thus clearing the roads of the maddening traffic that is threatening to paralyze our county’s roadways.

The effort culminated with a resolution passed unanimously in committee June 15. If approved by the commission as a whole and given legal force as an enabling ordinance, we will move toward a system of no fewer than 500 “neighborhood circulators” (otherwise known as “jitneys,” minibuses or “guaguitas”).

County administrators, using more refined – and confusing – terminology call them “on-demand flexible circulators (ODFC).” I want to shorten that to “ondemand circulators (ODC)” and set a low fare of $1, which lends itself to a nickname of “one-dollar circulators (“ODC”).

Owner-operators of the ODCs would be required to carry only passengers who are bound for Metrorail or Metrobus stops. Once arriving there, the passengers would automatically be issued a “one-day golden pass” (or “ODG”) to

ride the system one way to their commuting destinations.

The project would start with 500 newly licensed, private vehicles, presumably with a capacity of eight to 12 passengers; and priority would be given to existing “for-hire chauffeurs” for the granting of these licenses. This would fulfill a promise made by many of us, including Chairman Jean Monestime, to give our longsuffering taxi drivers relief from the sudden, unlicensed (but very efficient) competition of Uber/Lyft.

Ultimately, here are the goals we will achieve: Provide existing for-hire chauffeurs with more opportunities to deliver transportation services to the public.

Feed the Metrorail/Metrobus systems by circulating on-demand vehicles that would transport passengers to nearby county transit facilities during peak commuter hours, thereby decreasing overall traffic.

Incentivize the use of mass transportation by giving passengers of the ODCs a one-day pass to use the Metrorail or Metrobus.

Provide a mechanism for increasing multiple passenger travel throughout the county (similar to what Uber and Lyft are doing – what these companies com-

L ETTERS

TO THE

E DITOR

monly refer to as “ride sharing”).

Expand the capacity of ride sharing to include options that would transport as many as 12 passengers (mini-buses or jitneys).

Compete with privately-funded Uber/ Lyft systems by adding the 500 private vehicles.

Miami-Dade County needs to be at the forefront of mass transit initiatives. Otherwise, here’s what will happen: “Nature abhors a vacuum” and nature, in this case, is the privately owned Uber/Lyft, where chauffeurs work for wages but don’t share in the profits.

As policy-makers in public transportation, we have a limited window of opportunity to facilitate last-mile service to our commuters while empowering our longsuffering chauffeurs with a license (a.k.a. “medallion”) that enables them to be the owner of the franchise and reap the profits. The time to act is now!

MIAMITODAY miamitodaynews.com FOUNDED JUNE 2, 1983 VOLUME XXXIV No. 5 ENTIRE CONTENTS © 2016

To contact us: News Advertising Classifieds Subscriptions Reprints

(305) 358-2663 (305) 358-1008 (305) 358-1008 (305) 358-2663 (305) 358-2663

Editor and Publisher / Michael Lewis Vice President / Carmen Betancourt-Lewis

Air link, marketing normal It’s funny to read what the “experts” suggested was necessary to lure Chinese to Miami. I must be an expert then because to me it was just common sense.

DC Copeland

MIAMI TODAY (ISSN: 0889-2296) is published weekly for $145 per year; airmail: to Europe $190 per year, the Americas $145 per year.

Published by Today Enterprises Inc., 2000 S. Dixie Highway, Suite 100, Miami, Florida 33133, USA. Periodicals postage paid at Miami, FL. POSTMASTER: Send address changes to MIAMI TODAY, 2000 S. DIXIE HIGHWAY, SUITE 100, MIAMI, FLORIDA 33133.

WEEK OF THURSDAY, JUNE 30, 2016

TODAY’S NEWS

MIAMI TODAY

9

Mexico mission returns with port trade route alliances

BY MARCUS LIM

A Mexico trade mission organized by Enterprise Florida bolstered businesses seeking – and matched with – trade partners across the border. The biggest beneficiaries were Florida’s ports, which signed a memorandum of understanding with the Mexico Gulf Coast ports.

The May 23 to 26 trip saw directors from key ports strike a strategic alliance between Florida and Mexico to increase trade and traffic.

Juan Kuryla, director of PortMiami, found his trip successful after he eyed establishing a trade route to hasten distribution of goods from Mexico to the US. “Mexico is a tremendous growth region for us,” Mr. Kuryla said. “It is a very viable trade route to import products from Mexico and export products from Miami to the Mexican ports.”

PortMiami was among six Florida ports on the trip to sign the memorandum of understanding that applies to all Florida ports and to all Mexican Gulf Ports including Tuxpan, Tampico, Morelos and Velacruz.

The Florida ports have constantly proposed to Mexican maritime authorities that shipping products by water to Florida is cheaper than the traditional truck routes from Mexico to Texas.

“The larger purpose of the mission is two-fold. One is to increase trade and the other is to raise awareness about the

Enterprise Florida’s Bill Johnson, left, and Governor of the Yucatan Rolando Zapata Bello meet in Mexico City during the trade mission.

tremendous capacity of Florida ports and in particular Miami,” Mr. Kuryla said. “We want to become a viable option versus the traditional land bridge that has been the preferred way of shipping Mexican goods to the United States.”

Attorney Alan Becker, vice chair of Enterprise Florida’s board, went on the trip and was pleased with the results. He said he was happy to see that Florida and Mexico will expand their trade services, saying that Florida will be able to distribute Mexican goods across the US faster than the land route.

“We were able to demonstrate that [Mexico] would save time, money and eliminate an awful lot of pollution by entering the US through Florida by water,” Mr. Becker said. “Sometimes the trucks have enormous backlogs sitting in the back, spewing pollution. They can reach

the market more efficiently, cost-effectively by going by water rather than land.”

Mr. Kuryla said goods from Mexico such as televisions, iPads and other electronics that come to Florida by water will then be sent by train to the main distribution center in Jacksonville and then be transported around the nation, a cheaper and quicker alternative.

The memorandum of understanding would also largely benefit Florida, especially MiamiDade County. Manny Mencia, Enterprise’s senior vice president of international trade & development, cited trade and logistics as the number one employer in the county. The added route would create more jobs in the sector to help gather the goods from Mexico and export goods there.

“The port agreement is extremely important because the

most trade from Mexico to the US goes by land,” Mr. Mencia said. “Our strategy is to siphon some of that cargo into the Florida ports, which could create a significant number of jobs if we can even deviate 1% of the cargo that goes through the border. Attracting cargo and developing cargo ties are very important to us.”

The ports were not the only beneficiaries of the Mexico trip, as 35 Florida businesses reported to Enterprise how successful its matchmaking program was in giving companies that have never been to Mexico one-on-one meetings with similar business interests.

Over 250 appointments were made for the companies. Mr. Mencia said estimates of sales projections for the businesses to generate deals exceed $23 million in the next 12 months after meetings on the mission.

Companies’ feedback to Mr. Becker shows that some deals are already underway.

Maxim Weitzman, managing director of Concept II Cosmetics, email him that his company is “already in conversations with one of the distributors” to close on a business engagement.

Sergio Trevino, senior account executive of Holiday House Distributing, wrote that his company “had some very good meetings, with high levels of interest in our products.”

Marco Flores, director of business development, International Medicine Institute at UHealth – the University of Mi-

ami Health System, went to collaborate on research methods concerning genomics with different hospitals and establish partnerships with medical universities for exchange programs – and because the university’s new president, Julio Frenk, is a Mexican who started in the health sector.

“We thought this particular mission would be very beneficial for us because of his name and influence on the market,” Mr. Flores said.

Mr. Flores also praised Mexico for already conducting genomic and genetic testing, something he hopes UHealth can learn more about from them.

“What we asked from them is inviting them to come over to see what type of work we are developing in that particular subject in the University of Miami and find opportunities we can collaborate effectively,” Mr. Flores said. “We had frequent meetings and we are looking forward to develop those opportunities.”

As business ties were being forged, Mr. Becker also emphasized stronger political relations between Mexico and Florida. In that regard, he and outgoing Florida Secretary of Commerce Bill Johnson met with Mexico’s political leaders as a sign of goodwill.

“We hope to generate more business for Florida from our perspective,” Mr. Becker said.

“Florida as a state does not buy into the political rhetoric spewed throughout the election campaign.”

Public-private deal aims to hand construction novices jobs

BY CATHERINE LACKNER

A unique public-private partnership aims to equip construction novices not only with skills and credentials, but also with a job.

To get area residents ready for job opportunities that upcoming mega-projects will create, the Southeast Overtown/ Park West Community Redevelopment Agency, Miami Worldcenter, contractor Coastal Tishman and Miami Dade College ‘s Training for Manufactured Construction program have launched a partnership to offer neighborhood residents classes that can lead to a new career.

The 72-hour class series, which is free, is to begin in July in Overtown and will teach basic safety with hand and power tools, construction math, communication skills, introduction to construction drawings, employability skills and hazardous and non-hazardous materials handling. Students who successfully complete it receive an OSHA (Occupational Safety & Health Administration) 10 license, said Clarence Woods III, redevelopment agency executive director.

They then have the option to complete another 20-hour course, which can qualify them for an OSHA 30 license, “which most contractors require to get onto the job site,” he said.

The developers have prom- fied residents can be found, they ognized credentials that are completely portable,” Mr. Kneski ised to hire neighborhood resi- next must hire from low-indents for 30% of unskilled and come ZIP codes, then Miamisaid.

The curriculum that will 10% of skilled jobs. If no quali- Dade County at large. launch June 20 has been designed specifically for these students, and those who complete Get the facts about it successfully will be offered a job on the Miami Worldcenter site, he said. “It’s nice to see an employer who has really bought L e a d e r s F o r L i f e into the program.”

The first track of classes will JacksonProstateFacts.org be held in the morning; it’s contemplated that a second track would meet concurrently in the evening, for students who already have a day job but want to expand their education and opportunities.

“The evening students will be part of our regular classes, but they will still have the same content as the morning stuby Audrey Ross dents,” Mr. Kneski said. “I have made it clear to all of the stuBuy & Hold Exit Strategy dents that there is nothing to The Buy & Hold investment to sell. Your exit the buy and hold strategy stop them from completing the strategy is a long term strat- wanted strategy may also simply may be the best exit stratewhole program, even after they egy for investors looking to be how you plan to make gy. You can rent the home build wealth through real your money from your in- and recoup some of the have gotten that job.”

Real estate investors vestment. It’s best to have money you invested over The mammoth mixed-use estate. count on a turn in the mar- multiple exit strategies the long term. This may property, which is to rise in ket or plan to add value to when you’re using the buy also allow you to buy some Park West, is the beneficiary of the home in another way. and hold real estate strategy. time until the home is worth also a plan investors use Turning Buy & Hold into more and you can sell it for tax breaks forecast to be as It’s when they want to rent the Your Exit Strategy May- D ODUJHU SURÀW high as $6.889 million per year home, while waiting for the be you purchased a property For professional advice with the intent of renovat- on all aspects of buying through 2030. Those tax breaks right time to sell it.

The Exit Strategy An exit LQJ DQG VHOOLQJ LW IDVW RU ÁLS- or selling real estate, are tied to the promise that Mi- strategy is what you use ping the property. While in please contact me at ami Worldcenter would be a when you need to get out the renovation process, you aross@miamirealestate.com “direct pipeline to thousands of of a real estate deal before found more issues than you or 305-960-2575, or come your anticipated date. It’s budgeted for. This could WKH RIÀFH DW $Ojobs and opportunities for small basically a plan on what to cause the deal to leave you E\ hambra Circle, 9th Floor, businesses,” according to a do with the property if you with a loss or barely break- in Coral Gables.Gables.

2014 agreement when the need to sell sooner than you ing even. In this case, using www.miamirealestate.com project was approved.

Prostate Cancer

Clarence Woods III: successful students will get OSHA licenses.

“The core curriculum assumes the person has never picked up a tool in his life; there’s a strong safety component,” said John Kneske, the manufactured construction program’s director. “Manufactured construction,” he said, refers to new and high-tech construction techniques, many of which will be used to build Miami Worldcenter.

Classes are limited to 25 students, but because demand has been so great, another track may be added. “We get more and more calls each day,” Mr. Woods said.

“Miami Worldcenter and Coastal Tishman are really committed to this,” he added. “They want to get out in front of the hiring process.”

Students can continue with the college’s 880-hour manufactured construction program and receive not only college credits but “seven nationally rec-

STU.EDU

Ross Report on Real Estate

WEEK OF THURSDAY, JUNE 30, 2016

MIAMI TODAY

13

Financial Trends Getting a mortgage easier, but not for many in Miami-Dade

BY CAMILA CEPERO

Although scoring a mortgage is easier now than it was in the midst of the recession, borrowers with less than pretty credit scores in the mid 600s are finding it difficult to do so. As nationwide acceptable scores rise, borrowers in Miami continue to have some of the lowest, while upper-income and upper-scorerange borrowers have close to nothing to worry about.

A real estate analytics report in December by real estate marketplace Zillow showed that for the first time since 2012, getting a mortgage was harder than it was a year earlier, largely because lenders were raising the bar on what they think is a minimally acceptable credit score.

The Zillow Mortgage Access Index – a measure of how easy or difficult it is to get a mortgage relative to pre-bubble norms – stood at 62.7 at the end June 2015, down from 67.8 in June 2014 and the first annual decline in three years, the report said.

“Despite the rare dip… it’s worth noting that even though it has gotten modestly more difficult to get a mortgage compared to a year ago, it remains far easier than during the depths of the recession in 2011, when the index bottomed at 11.9,” the report said.

The housing market crash, although now in our rearview mirror, left mortgage lenders extremely cautious about who can and should qualify for a mortgage, said Patricia Perez, a mortgage loan officer at Paramount Residential Mortgage Group.

Speaking about safeguards that were put in place as a result of regulatory changes after the crisis, she said, “we all have to adhere to them, and there have been quite a few major changes made in the last seven years.”

Nowadays, lenders look at

Photo by Maxine Usdan

Marc Halpern says small price correction may aid middle-income mortgage borrowers, not lower income.

factors such as income, tax credit and pay stubs to determine what borrowers can afford and what they can borrow faithfully, Ms. Perez said. “As an industry, we don’t want to go through the pain of the crash again.”

A potential borrower with a score of “740 [scores range from 300-850] is an A+ client who can get conventional financing,” Ms. Perez said, but “even if someone has a fantastic credit score of 740+ they can still get denied for the mortgage if they don’t meet the income or asset requirements,” Ms. Perez said.

The big banks usually want to see higher scores, roughly 640, whereby mortgage lenders work with lower scores, she said.

A score of 620 is the minimum score requirement to be able to get a Fannie Mae conventional loan, but FHA financing can be obtained with a 580

score and only 3½% down payment, Mr. Perez said. “Rates would be higher, but at least the person can buy a home.”

Borrowers with 550 scores, Ms. Perez said, may have the option of using portfolio lending. However, they must qualify for the loan, be able to provide 20% down and will deal with higher rates.

According to a credit research report by FICO, the company whose scores are the most common measure of consumer credit risk, Miami appears to continue to struggle in comparison to the New York, San Francisco, Phoenix, Las Vegas and Washington, DC, Metropolitan Statistical Areas. “[One half] of the mortgage performance story of the Great Recession is how the distribution of FICO Scores shifted for US consumers with at least one open mortgage trade. As expected, more mortgage con-

sumers had FICO Scores less than 580 during the worst of the economic downturn,” the FICO report stated.

“Miami appears to continue to struggle in comparison to the other MSAs,” the FICO report said. “The other five MSAs have roughly 7% or fewer consumers with low credit scores, and they appear to have largely reverted to their pre-recession figures. But Miami continues to have over 13% of consumers with a score less than 580, about 50% more than the prerecession figure.”

“There is no faster and safer way to accumulate wealth than buying a property,” Ms. Perez said, adding that an increase in the value of a property over time allows people to eventually sell it for a profit. “If someone is low-income and they can’t even buy their starter home, they may be in poverty for the rest of their lives,” she said.

“Local people – those that live and work here – have been priced out the last few years.

Prices in Miami have gone up too much,” she said. “Those with average incomes can’t even afford a condo. The major problem is with affordability here in Miami, because properties are more expensive than people can afford.”

However, there are affordable pockets throughout the county in places like Homestead, Miami Gardens and Hialeah, said Marc Halpern of Halpern & Associates Mortgage Corp.

“We’re thinking that maybe there’s going to be a small correction in price, but that isn’t necessarily going to solve the problem for low-income people.

But it will at least help the middleincome people,” Ms. Perez said.

“The bigger picture really is that obviously people with lower credit scores are more of a default risk,” Mr. Halpern said. “Obviously, if a person is not paying their bills what’s the likelihood of them paying mortgage bills?”

Plain and simple, people with lower credit scores are considered to be more risky.

The biggest safeguard put in place, Mr. Halpern said, is industry-wide mandatory mortgage loan officer licensing.

“Only a licensed mortgage loan officer can quote an interest rate,” Ms. Perez said. Depending on the overall picture of the buyer, the loan officer would recommend the best program so they can become a homeowner.”

“The trigger words are ‘ability to pay,’” Mr. Halpern said.

The most important thing to keep in mind, he said, is that a lot goes into mortgage lending.

“It’s important to mention each person’s situation is different, so it’s important that people speak to a loan officer,” Ms. Perez said. “The credit score is just one piece of the puzzle, a super important one, but not the only thing lenders look at.”

County to save 13.9% by refinancing $350 million in bonds

BY SUSAN DANSEYAR

Miami-Dade County will issue up to $350 million in special obligation refunding bonds to repay all or a portion of outstanding bonds from 1996 and 2005 at an estimated savings of 13.95%.

County commissioners unanimously voted last week to authorize the issuance of Series 2016 Refunding Bonds, which are special and limited obligations of Miami-Dade derived primarily from convention development tax.

According to the resolution, the overall fiscal impact will be positive. Based on market conditions as of May 20, the refunding will generate debt service savings of about $73 million over the 24-year life of the bond issuance, said Deputy

Mayor Edward Marquez in a memo to commissioners. In today’s dollars, he said, that’s a net savings of $42 million or 13.9% of the total amount refunded.

“Consistent with the county’s refunding policy, the net present value savings that will be achieved by issuing the Series 2016 Refunding Bonds exceeds a 5% threshold,” Mr. Marquez said. Additionally, he said, the final maturity of the series is not greater than the final maturity of the refunded bonds on Oct, 1, 2040.

The estimated cost of issuance is $2.7 million, of which Mr. Marquez said $1.2 million represents the amount paid to the underwriters.

The bond series are expected to be issued in August.

With rates dropping around the world,

Miami-Dade County could be achieving yet more savings when refinancing its debt in the future.

The 10-year Treasury note is often considered the point of reference for most kinds of debt in the US, including municipal. While no one can precisely predict the continuing effect of Britain’s vote to exit the European Union on Miami-Dade’s rate of borrowing, the Wall Street Journal reported Monday that investors “piled into safe-haven sovereign debt,” pushing the yield on 10-year U.K. government bonds below 1% for the first time, and the yield on the US 10-year note sunk close to the historical low: 1.461% from 1.577% on Friday, the lowest since July 2012, when the yield closed at 1.404%.

German bunds [the equivalent of a US

Treasury bond] and other developed market debt also gained on the risk aversion following the June 23 “BRexit vote,” the article stated. “The global selloff and concerns over economic growth have led investors to predict rate cuts from some countries and a further postponement for the U.S. Federal Reserve in raising rates, further influencing how government debt trades.”

Some investors have started to bet that the Fed may need to reverse its tightening policy and lower rates, showing how anxious some are to the potential fallout from BRexit, the article reports. “The yield on the two-year Treasury note, highly sensitive to the Fed’s policy outlook, was recently at 0.580%, down from 0.653% Friday.”

16

FINANCIAL TRENDS

MIAMI TODAY

WEEK OF THURSDAY, JUNE 30, 2016

10 banks invest in new Community Development Fund

BY SUSAN DANSEYAR

The Community Development Fund recently launched with $25 million in invested capital from 10 banks, the majority Florida-based, which board of trustees chairman and fund advisor Kenneth H. Thomas describes as among the nation’s leading and most community-minded banks.

First investors UMB Bank NA in Kansas City, MO; NorthEast Community Bank in NY; Century Savings Bank in New Jersey; and locally City National Bank, Coconut Grove Bank, Florida Community Bank NA, Gibraltar Private Bank & Trust Co., HomeBanc NA, Sabadell United Bank NA and TotalBank should be commended for taking a leadership role in this new community development initiative, Dr. Thomas said.

“They stepped up to the plate because they’re concerned about economic development in their local neighborhoods,” he told Miami Today. “This is a brand new start-up, and usually people want to see a track record before committing capital.”

The Community Development Fund is only available to federallyinsured banks and thrifts to help them meet the requirements of the 1977 Community Reinvestment Act (CRA), which mandates that they make capital available to the

Ken Thomas with his first book on “Community Reinvestment Performance” and Sen. William Proxmire.

entire community where the banks and thrifts serve including lowand moderate-income communities. A $1 million minimum is required.

Dr. Thomas said the fund will invest primarily in securities issued or guaranteed by the US government or its agencies and other investment-grade fixed-income securities, and may at times invest in securities rated below investment grade. According to the website for the Community Development Fund, under normal circumstances the fund will seek to invest at least 90% of its net

assets in debt securities and other debt instruments that the fund’s investment advisor believes will be CRA-qualifying.

Banks are rated every three years on their compliance with CRA requirements that have three components: lending, services and investment.

“This fund seeks to positively impact community development, and we need community development here in South Florida more than anywhere to increase affordable and workforce housing alternatives, especially for low- and moderate-income households, so

multifamily developments that are affordable to our work force and low-and moderate income households.”

Dr. Thomas founded Miamibased Community Development Fund Advisors LLC, registered with the US Securities and Exchange Commission as an investment advisor, and acts as the fund’s investment advisor. All banks investing with the fund also have access to him for CRA questions.

A Miami-based economist and independent bank consultant, Dr. Thomas’ first book on the CRA, “Community Reinvestment Performance,” was the only publication on the act endorsed by Sen. William Proxmire, chairman of the Senate Banking Committee and referred to as the “father of the CRA.” Dr. Thomas said he was blessed to have known Sen. Proxmire, whose accomplishments were many, including the Golden Fleece Awards and “being the first politician to advance real campaign reform.” His greatest, however, was pushing this law through Congress in 1977, Dr. Thomas said, despite considerable headwinds from other politicians, the banking industry and even the Federal Reserve.

critically needed in our real estate market,” Dr. Thomas said. “Study after study document that we are the, or one of the, least affordable housing markets in the nation, and this means that we must provide more opportunities for low- and moderate-income homebuyers, especially first-time homebuyers, in our local real estate market.”

Historically, Dr. Thomas said, our real estate market has been skewed to upper-income buyers.

“Instead of going closer to the water and closer to the sky in new Details: www.Community super condos, we need to encourDevelopmentFund.com age more inland single-family and

South Florida’s loan totals rise while delinquencies drop

BY CAMILA CEPERO

Loan totals in South Florida increased once again this year while delinquent loan totals dropped and the area market stayed in better shape than most of the country. However, it’s not all good news, as lower income brackets saw most loans granted to more affluent borrowers.

“South Florida banks have made tremendous progress in both the level of lending and in the quality of that lending over the last several years,” said Karen Dorway, president and director of research for BauerFinancial, a national independent bank and credit union rating and research firm based in Coral Gables.

At the end of March 2012, she said, the 56 banks headquartered in Miami-Dade and Broward counties had $35.8 billion in outstanding loans – and 7.6% of those loans were delinquent, compared with a national average of 4.1%.

Three years later, at the end of March 2015, there were 44 banks headquartered in MiamiDade and Broward counties and outstanding loans had risen to $51.4 billion. However, delin-

quent loans had dropped to 1.3% compared to a national average of 1.8%.

Based on the most recent data from the end of March this year, there are 41 banks headquartered in Miami-Dade and Broward counties, which again saw a rise to $53.9 billion in outstanding loans and a drop to 0.8% delinquent loans as compared to a national average of 1.6%.

“Local banks still have just over twice the level of repossessed real estate on their books as compared to the national average, which is not surprising given the level of repossessions during the recession. Working through that level of real estate is a time-consuming process.

Although ‘twice the national average’ may sound like a large number, it’s only 0.182% of total assets – quite manageable,” Ms. Dorway said.

“Nationwide, there was a slight uptick in delinquent commercial and industrial loans in the first quarter 2016, so that bodes watching in our local economy through 2016.”

“Community development is so important,” said Ken Thomas, president of Community

Karen Dorway cites big progress.

Development Fund Advisors, the registered investment adviser to The Community Development Fund, a market-rate bond fund that invests in high credit quality fixed-income securities.

The most recent numbers from federal documents show that most conventional loans are going to upper-income borrowers, he said.

“All studies show that we are the least-affordable housing market in the country,” Mr. Thomas said. “Developers in Miami, they’re moving toward the east, toward the water and moving toward the skies with condos, and who can afford

those but upper-income people?

Low- and moderate-income people need affordable workforce housing. They don’t need homes by the water, they don’t need condos, they need single-family homes.”

The county’s median household income is roughly $50,000, Dr. Thomas said. Low income is considered 50% of that, so $25,000. Moderate income is 80% of the median, so $40,000 or less, middle income is 80% to 120% and upper income is 120% and above.

Around 40% of people fall into the low- to moderate-income bracket, he said, but the most recent numbers show that they are getting less than 15% of loans and, “even worse,” only 10% of the dollar value.

Last year, the Federal Reserve sent sharp warnings of an interest rate increase likely to happen this month. Now, after a lack of any change, officials are speculating that Brexit has made the bank stop and rethink the increase.

Dr. Thomas agreed, adding that the rise in rates could have been halted because of the international strife, as is often the case.

DON’T MISS A COPY OF MIAMI TODAY Subscribe to our e-Paper only $60 a year

• Full color • Easy to read & navigate • 10 years of archived articles • Available before print edition Get a free demo at miamitodayepaper.com Call Miami Today at 305-358-2663 or email circulation@miamitodaynews.com

MIAMITODAY

“International volatility, whether it be in China or terrorism or the Brexit proposal, that volatility in markets is keeping rates low. Lower rates encourage more lending,” he said, but “seniors are killed with low rates, not getting anything for their CDs, and home loans are going for the upper market, not lower income.”

When looking at the number for total bank loans, Dr. Thomas said, the bank environment has at least improved.

“In Miami and in Miami-Dade County we have one of the most unequal income distributions... with very, very, very high wealth in one end and one of the highest poverty rates for a big city [in the other end]. It’s a barbell distribution with very little in the middle. That’s very much what we have here in South Florida.”

Smaller banks with “outstanding CRA ratings,” Mr. Thomas said, like Sabadell United Bank, City National Bank of Florida, TotalBank, Florida Community Bank, Gibraltar Private Bank & Trust and Coconut Grove Bank are now the ones typically lending and helping lower- and middle-income borrowers.

WEEK OF THURSDAY, JUNE 30, 2016

MIAMI TODAY

STAY

CON

NEC

TED

Subscribe to our E-paper only $60 a year • Full color • Easy to read and navigate • Unlimited access to 10 years of searchable archives • New issues available before print edition

Go to www.miamitodayepaper.com for a free demo Wherever you are, Miami Today can be

MIAMITODAY

17

WEEK OF THURSDAY, JUNE 30, 2016

TODAY’S NEWS

MIAMI TODAY

23

Midtown rents and demand rise, Brickell going other way

BY CAMILA CEPERO

Demand and rental rates keep rising in Midtown’s high-rises as the area continues to see a steep rise in popularity, but demand and construction in Brickell is on the opposite trajectory, while extra supply does nothing to improve the situation.

Hyde Midtown had broken ground by the end of 2015 with 410 units advancing in the pipeline, according to the Miami Downtown Development Authority’s Greater Downtown Miami Annual Residential Market Study Update, prepared by Integra Realty Resources.

The project spent less than 15 months in contracting before moving to construction.

Midtown is bordered by Interstate 195 in the north, Northwest 29th Street in the south, a rail line in the east and Interstate 95 to the west.

In the first quarter of this year, projects proposed in greater Midtown Miami were Midtown 29, with 309 units, and Midtown East, with 700 units.

Currently, two Midtown rental projects – Midtown 5 with 400 units and District 36 with 197 units – are under construction, both likely to open by the first quarter of 2017 or earlier.

Aside from the 400 luxury apartments, Midtown 5 will have retail and office space.

However, unlike Midtown, under-construction Brickell residential units declined year-overyear from 3,983 in December

Photo by Maxine Usdan

Midtown 5, with 400 units, is one of two rental projects rising, both to open by the first quarter of 2017.

2014 to 3,614 units in December 2015. This inventory will decline again, the report said.

In November, Miami Today reported that units at Hyde Midtown were selling for an average of $490,400. As of first quarter of 2016, that selling price had increased to $565,900, with average unit square footage being 1,100 at $550 per square foot.

Meanwhile, the average prices of units for 12 projects under construction projects in Brickell was $718,928.

One reason behind the rising popularity of Midtown living is the probability of getting “more for your money,” said Jon Mann, a

Coldwell Banker Miami residential real estate broker associate.

“People want to be where the action is,” he said, adding that proximity to Wynwood’s shops, restaurants and cafes is giving Midtown an “eclectic, artsy feel,” and being a short drive from South Beach is appealing to those who have been priced out of that area.

Mr. Mann attributes Midtown’s popularity to a natural maturation – a move from an older, very established area to a new one with more opportunity.

“Midtown doesn’t really have trophy properties, they’re more traditional one to two bed-

Chamber’s Americas Linkage team planning business mission to Spain

BY CAMILA CEPERO

Americas Linkage, a Greater Miami Chamber of Commerce program, will be facilitating a business mission to Spain in September with the intent of helping South Florida and Spanish organizations establish business ties and promote connections between economies.

The mission, organized by the chamber’s program focused on the development of business opportunities through a series of missions throughout the world, will visit Madrid, Sevilla and Málaga.

“The trip is to essentially introduce Miami businesses to Spanish opportunities and encourage linkages between our economies,” said Brian Fonseca, director of the Jack D. Gordon Institute for Public Policy at Florida International University’s Steven J. Green School of International and Public Affairs.

The Andalusia Technology Park in Málaga will be one of the technology sector inspired stops on the mission, in addition to attending Greencities, a forum of urban intelligence and sustainability. Also in Málaga, the group will visit cruise terminals and cargo ports.

Mr. Fonseca, who chairs the

Americas Linkage committee, said that in Madrid and Sevilla, the chamber hopes to engage organizations from the energy sector, such as natural gas companies.

Although not confirmed, he said, there are talks of making connections with the large earth space sector in Madrid, and the aerospace cluster in Andalusia.

In general, he said, the main sectors involved will be energy, aerospace, technology and tourism.

While the chamber doesn’t yet have a full list of which organizations will be participating in the mission, Mr. Fonseca said that organizers are in “full recruitment mode.”

“We’re working with the community to assess [their] interests and to [find] businesses really interested in building the bridge between South Florida and Spain and attracting investment from Spain to South Florida,” he said.

The chamber is seeking organizations interested in participating in the trip by engaging with its members, Mr. Fonseca said.

“We’re less in the driver’s seat and more in the facilitator seat,” he said. “We’re working with Spanish authorities as well as with chambers of commerce in Spain, the American embassy,

and the Spanish Consulate to identify the best access points for us.”

Last year, Americas Linkage visited Colombia, Mr. Fonseca said, and is eyeing China as a potential destination after the Spain mission.

“We’re looking at pulsing where our members are interested in building bridges.”

While the mechanics are still being worked out, Mr. Fonseca said, he expects plenty of opportunities to make connections prior to the trip so members can engage while in Spain and follow up when they return.

“Spain has chambers and organizations that also facilitate this kind of engagement and consulates have an interest as well, so we’re working through those organizations. For example, Invest In Spain is one of the organizations we’re looking to meet with when we arrive in Madrid – it’s essentially like a chamber of commerce.”

The mission is to take place Sept. 30-Oct. 7.

Details: Liane Ventura, (305) 577-5445 or lventura@miamichamber.com and Crystal Renta, (305) 5775486 or crenta@miamichamber.com.

rooms,” Mr. Mann said, adding that the more expensive Brickell properties aren’t necessarily priced as trophy properties either.

Brickell condo units that their owners lease out need to be

renting for over $10,000 a month in order to realistically cover property taxes and maintenance fees, he said.

There’s simply more supply in Brickell, he said, and rising rates have only magnified the negative effects.

“We simply can’t take any more out of renters’ pockets; they just don’t have any more to give.” Mr. Mann said.

As Brickell becomes more “Wall Street,” he said, it’s only a matter of time before the rest of the world becomes aware of Midtown and its next-door neighborhood, Edgewater – something he expects to see happen in 10 years’ time.

As of the first quarter of 2016, Edgewater had seen completed 561 units, with 2,252 more under construction and 2,009 more proposed. The 207-unit Bentley Edgewater marks the first condo-hotel of this cycle, Mr. Mann said, and has begun taking reservations.

“Rents will continue to increase in Midtown as the area becomes more of a destination,” Mr. Mann said. “Until supply increases, rents will continue to go up.”

CLASSIFIED ADVERTISING Employment

Legal Advertising

Banking

Fictitious Name

JPMorgan Chase & Co. has an opening for an Investor Team Lead (Southern Cone Region) position in Miami, Florida. Thoroughly understand clients’ needs and objectives, build trust with clients and effectively manage relationships. Must be able to speak, read, and write in Spanish.

Licenses 7, 63 required. Up to 50% travel may be required to work on projects at various, unanticipated sites throughout the United States and in Southern Cone countries in South America, including, but not limited to: Argentina, Bolivia, Chile, Ecuador, Paraguay, Peru, and Uruguay. Please fax your resume to (312) 732-7830 with following job ID clearly indicated: [MR 160066776].

JPMorgan Chase & Co. supports workforce diversity.

Notice Under Fictitious Name Law Pursuant to Section 865.09, Florida Statutes NOTICE IS HEREBY GIVEN that the undersigned, desiring to engage in business under the fictitious name of PB STATION located at 121 SE 1st Street, in the County of Miami-Dade, in the City of Miami, Florida, 33131, intends to register the said name with the Division of Corporations of the Florida Department of State, Tallahassee, Florida.

Nutrition Consultant YWCA Miami accepting bids for Nutrition Consultant for Early Childhood Program.

Bid closes 06/30/2016305-377-9922 x204 smejia@ywca-miami.org.

Dated at Miami, Florida, this 28th Day of June, 2016.

LANGFORD PARTNERS, LLC Owner

Fictitious Name Notice Under Fictitious Name Law Pursuant to Section 865.09, Florida Statutes NOTICE IS HEREBY GIVEN that the undersigned, desiring to engage in business under the fictitious name of THE LANGFORD HOTEL located at 121 SE 1st Street, in the County of Miami-Dade, in the City of Miami, Florida, 33131, intends to register the said name with the Division of Corporations of the Florida Department of State, Tallahassee, Florida.

Mental Health Consultant

Dated at Miami, Florida, this 28th Day of June, 2016.

LANGFORD PARTNERS, LLC Owner

YWCA Miami accepting bids for Mental Health Consultant for Early Childhood Program. Bid closes 06/30/2016 305-377-9922 x204 smejia@ywca-miami.org

Fictitious Name

FIND

US ON THE WEB reliable news first at miamitodaynews.com

Notice Under Fictitious Name Law Pursuant to Section 865.09, Florida Statutes NOTICE IS HEREBY GIVEN that the undersigned, desiring to engage in business under the fictitious name of SOBE YOU HOTEL located at 1018 Jefferson Avenue, in the County of Miami-Dade, in the City of Miami, Florida, 33139, intends to register the said name with the Division of Corporations of the Florida Department of State, Tallahassee, Florida.

Dated at Miami, Florida, this 22nd Day of June, 2016.

1018 JEFFERSON, LLC Owner

Reprints of Miami Today make great selling tools.

Contact Angela at 305-358-2663, ext. 105

MIAMITODAY See an article you want to share?

24

MIAMI TODAY

WEEK OF THURSDAY, JUNE 30, 2016

NATIONAL NEWSPAPER ASSOCIATION

Recognizes in three categories over national weekly and daily papers

1st Place Best

Newspaper Promotion We focus on the

FACTS FLUFF We leave the

to others

If knowledge is power then our readers are the most powerful people in town.

Use Miami Today to reach the most action-prone, inquisitive consumers.

We have the strongest readership base in South Florida and advertising with us should be a must if you are looking for results.

Meet Fluffy.

Call our Advertising Department at 305-358-1008 for more information.

MIAMITODAY A Singular Voice in an Evolving City

1st Place Best

Editorial

June 18, 2015, column by Michael Lewis “Free speech trumps school system’s gag rule on teachers” “A well-deserved rant against an over-reaching school district teaching a bad lesson,” the judges wrote.

3rd Place Best

Serious Column

December 10, 2015, column by Michael Lewis “Creak, clank, bump, wreak, clatter: Welcome to Miami” “Nicely done with a topic most wouldn’t think about,” the judges wrote.

OUR QUALITY NEWS AND EFFECTIVE REPORTING CONTINUE TO STAND OUT NATIONALLY.

STAND OUT WITH US