Miami Today: Week of Thursday, July 16, 2015 by Miami Today

WEEK OF THURSDAY, JULY 16, 2015

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Warehouse vacancies falling, operators keep buying pg. 13 RACE DROPS MIAMI: Miami isn’t a host for the second season of the FIA Formula E Championship, the world’s first electric racing series. On Friday, the FIA World Motor Sport Council approved the calendar for the second season and first-season venues Miami and Monaco aren’t included, while Paris was added. This was confirmed via an email exchange Tuesday between Miami Today and City Commissioner Marc Sarnoff’s office, which had inquired about the matter. Chuck M. Martinez, Miami ePrix general manager, wrote: “The 2016 FE schedule is indeed out and Miami is not on it. This may change, but we won’t know for certain until September…. I’ll keep you posted on any developments.” The news is contrary to what city officials agreed to just before Miami hosted the electric cars March 14. City commissioners on Feb. 26 approved a pact to host the race yearly through 2019. The race was held on stretches of Biscayne Boulevard and wrapped around AmericanAirlines Arena along the waterfront, in Mr. Sarnoff’s district.

Exploding Doral office market supports a growing city, pg. 16

THE ACHIEVER

BY JOHN CHARLES ROBBINS

DISTRICT FOR WORLDCENTER: County commissioners unanimously approved creation of a Community Development District for Miami Worldcenter on Tuesday despite the number of residents who spoke against the developers as well as the proposed project on 24 acres of mostly vacant land in Park West. The construction, bounded by Northeast Sixth and 11th streets and between North Miami and Northeast Second avenues, is to include residential, retail, office, hotel, retail, restaurant and entertainment uses. A community development district is a special taxing district that may levy taxes and assessments and issue bonds. The taxes and assessments are added to the tax bill for the payment of the infrastructure including design, construction, acquisition and maintenance of roadway improvements, streetlights, water distribution systems, sewers, storm water management and landscape buffers. OFF HOURS: The Miami-Dade Transit and Mobility Services committee last week unanimously recommended that the county commission require that work affecting arterial county roadways be performed during non-peak traffic periods and encourage other government agencies and municipalities in Miami-Dade to adopt similar measures to address traffic congestion. Bruno A. Barreiro said that at some point the committee will have to look at deliveries in the urban core, such as an 18-wheeler stopping in the middle of a road to make a delivery as traffic piles up behind. Major cities, he said, require companies to deliver at night.

Christine Barney

Photo by Marlene Quaroni

Seeks chamber of commerce dashboard of success The profile is on Page 4

County struggles to escape ‘toxic issue’ of tolls BY SUSAN D ANSEYAR

A county committee plans to meet with Miami-Dade Expressway Authority officials annually to discuss citizens’ concerns with rising tolls on state expressways and establish ways the public might know sooner about projects that will affect their daily commutes and wallets. Transit and Mobility Services Chairman Esteban Bovo Jr. told committee members July 8 he has become a target on Twitter over transportation. “This has become such a toxic issue for citizens that it warrants attention,” he said of rising toll rates. Many South Florida commuters have been angry since November, when tolls rose on westbound state roads 836 (the Dolphin Expressway) and 112 (Airport Expressway), which link I-95 to the airport. For the first time, drivers have to pay 70 cents with SunPass – or $1.40 if they don’t have a transponder – in each direction between the airport and I-95. Previously, drivers only paid tolls eastbound on these expressways as they headed to I-95. Mr. Bovo said MDX’s work hasn’t al-

AGENDA

Businesses may decide stadium use

ways been communicated well, so county lawmakers then take the burden of the public’s frustration. To that end, he co-sponsored a resolution with Commissioner Rebeca Sosa that would have directed the mayor’s office to plan a public awareness campaign letting residents know that MDX is a state agency, separate from the county commission, and has sole authority to control rates. Additionally, the campaign was to publicize that county commissioners passed legislation urging MDX to avoid future toll increases, reduce rates or cap them at existing levels; eliminate use of the consumer price index as the basis for toll increases; study the expressways’ toll increases with public input; and impose a moratorium on rising rates, “which heavily burden the county’s low and middle income,” while MDX studies the issue and presents its findings to the public and commissioners. However, Mr. Bovo ultimately agreed to defer the resolution when some committee members expressed a preference for meeting with MDX to discuss concerns rather than passing legislation, a step Barbara Jor-

dan likened to “what the state does to us,” which she said commissioners resent. Vice Chair Dennis Moss concurred. “We sit here when Tallahassee attacks us and we resist that approach,” he said. “As an alternative, let’s have a sit-down with MDX and understand what their thinking is and how we can deal with this toll nightmare.” Ms. Jordan is to work on a legislative request by the committee to meet annually with MDX. Xavier Suarez referred to the DolphinPalmetto Interchange (826-836) as a “monstrosity” under construction four years for which drivers now must pay in tolls. “The intersection has gobbled up some cars that we’ve never seen again,” he said. “We’ve got to get MDX to see they can’t keep going as they are now.” The public needs to know sooner about the work MDX is doing, Mr. Bovo said. “Tensions are increasing,” he said in reference to emails and tweets he receives from angry residents. “The intent here is to slow the tide, get the public more involved with what MDX is doing and have input.”

City leaders are moving to define Miami Marine Stadium’s future. After accepting an $80,000 grant to investigate the concrete stadium’s underwater supports July 9, commissioners debated the purpose and use of the idled stadium after it is restored. Then they unanimously directed City Manager Daniel Alfonso to request proposals or letters of interest from potential operators to help answer the question: What do we do with Marine Stadium? Marc Sarnoff, who made the motion, said it’s a way to get business to tell the city how the waterfront Virginia Key stadium, idle since Hurricane Andrew hit in 1992, can be used. Commissioners didn’t decide on its use, or the intensity of use at adjacent Marine Stadium Park. The city is spending more than $16 million to turn the area around the stadium into a flex park as part of a deal with the National Marine Manufacturers Association to bring the Miami International Boat Show to Virginia Key next February. Once the boat show exits, the park would have new sporting fields and open space. The intensity of use at the park has troubled some commissioners and led to a legal battle with Key Biscayne, which let loose a volley of lawsuits against the city and launched a public relations campaign that has attacked the city and boat show organizers. A joint meeting between the two elected bodies in June found no resolution, but the city and island village remain in private mediation. A contractor’s removal of mangroves along with non-native trees beside the stadium has only stirred contention. Commissioners Frank Carollo and Francis Suarez were unhappy that the city manager’s office didn’t deliver as promised a full report on the mangrove removal July 9. Both want that report at the July 23 meeting.

OFFICIALS PLAN DENVER TRIP TO LEARN TRANSIT TIPS ...

NEW CUBAN MUSEUM SET FOR LATE AUGUST WRAP-UP ...

ALL ABOARD FLORIDA LINES UP A TEAM OF PROVIDERS ...

MIAMI WILDS PARK COULD MAKE IT MINUS PHASE TWO ...

VIEWPOINT: TAKE THIRD STEP TO PLAY FAIR ON BONDS ...

DESIGN DISTRICT TO CONTROL STREET LIGHTS, SIGNS ...

COUNTY GIVES RIVER LAND TO DEVELOPER FOR A PARK ...

GABLES EXTENDING TROLLEY SERVICE TO THE SOUTH ...

TODAY’S NEWS

WEEK OF THURSDAY, JULY 16, 2015

MIAMI TODAY

All Aboard lines up team to create, service its Miami-Orlando rail link BY JOHN CHARLES ROBBINS

All Aboard Florida is busy lining up its corporate partners in its quest to establish a new passenger rail service, and creating new jobs in its wake. All Aboard Florida recently selected Siemens Corp. as the full maintenance provider for its passenger rail trains connecting Orlando and Miami, starting in 2017. As part of a 30-year contract, Siemens will maintain and service all aspects of All Aboard Florida’s passenger rail vehicles, including inspections, corrective and preventative maintenance, and provisioning of parts and labor. All maintenance-and-service operations are to be housed at a new state-of-the-art facility south of Orlando International Airport and a new smaller complex to be built in West Palm Beach, creating full-time employment for about 70 Siemens and 40 All Aboard Florida employees. As previously announced, Siemens is also building the trainsets for the project, which will be constructed at its solarpowered rail manufacturing plant in Sacramento. “Siemens is extremely proud to expand our relationship with All Aboard Florida as a key tech-

nology and service partner for this important passenger rail project,” said Chris Maynard, vice president of customer services for Siemens Mobility. “By combining our globallyinspired, modern service methodology and experience with our own technology, we are confident that the All Aboard Florida service will be among the best in the nation,” Mr. Maynard said. “Siemens shares All Aboard Florida’s commitment to meeting the highest standards of trainset safety and reliability in the industry,” said Mike Reininger, president of All Aboard Florida. “We are pleased that, in working closely with Siemens on state-of-the-art train design and engineering, our partnership with the company has grown even stronger.” The news comes just weeks after All Aboard Florida announced that it had reached an agreement with Archer Western to improve rail infrastructure on the corridor for its new passenger rail service. More than 100 construction workers will soon begin upgrading the 66-mile rail corridor between Miami and West Palm Beach. Archer Western will provide construction-management and general-contracting services

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for the project, which include safety improvements and upgrades, track work, rail signalization and structural construction. It will also perform work on 185 grade crossings; install quiet zones, where applicable; and build a new running repair facility in West Palm Beach. “Modernizing the rail infrastructure is central to All Aboard Florida’s new rail operations and to our commitment to public safety,” Mr. Reininger said. All Aboard Florida says it is investing $1.5 billion to modernize the historic Henry Flagler rail corridor, improvements needed for its passenger rail trains. Work crews will adhere to pre-set work schedules that All Aboard Florida has coordinated in advance with communities along the corridor. Work on safety upgrades at grade crossings and quiet zones will be performed at the same time. “Archer Western is proud to partner with All Aboard Florida to create this new passengerrail system,” said Daniel P. Walsh, Archer Western president. “We believe the service will transform the way people move between South and Central Florida, and will give residents and visitors a safe and comfort-

A Siemens technician inspects the wheel system on a rail locomotive.

able alternative to highway-andair travel,” he said. Archer Western has led major transportation projects across Florida and throughout the country, including SunRail, the popular transit system in Orlando. Construction for the All Aboard Florida project is expected to create more than 10,000 jobs annually during construction, and 2,000 permanent jobs once service begins. Currently, foundation work continues in earnest at three main stations – Miami, Fort Lauderdale and West Palm Beach. Siemens Corp., a US subsidiary of Siemens AG, designs and manufactures commuter and regional passenger trains, light rail and streetcars, metros, locomotives, passenger coaches and high-speed trainsets. In the US, Siemens is providing rail vehicles, locomotives,

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components and systems to more than 25 agencies in major cities including New York, Boston, Philadelphia, Atlanta, Houston, San Diego, St. Louis, Washington, DC, and more. Cities also rely on Siemens to provide traction-power substations and electricity transmission, as well as signaling and control technology for passenger rail and transit systems. With 343,000 employees in more than 200 countries, Siemens AG reported worldwide revenue of $98 billion in fiscal 2014. Siemens in the US reported revenue of $22.2 billion, including $5.2 billion in exports, and employment of about 50,000 people throughout all 50 states and Puerto Rico. All Aboard Florida is an intercity passenger rail project being developed by Florida East Coast Industries, a commercial real estate, transportation and infrastructure company.

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TODAY’S NEWS

WEEK OF THURSDAY, JULY 16, 2015

MIAMI TODAY

County gives river land to developer for a park BY JOHN CHARLES ROBBINS

The public will be the beneficiary of a new riverfront park, thanks to an agreement between Miami-Dade government and the developer of mixed-use River Landing Shops and Residences. County commissioners declared surplus county-owned land at 1280 NW 11th St. and authorized its conveyance to River Landing Conservation Foundation Inc., a not-forprofit, to create and maintain green space, seawall, landscaping, lighting and a riverwalk open to the public. River Landing is planned for 1480 NW North River Drive near Miami’s Health District. It’s to rise on the site of former Mahi Shrine Auditorium, which was demolished last year. The 8.14-acre development is to include 426,000 square feet of retail and restaurant space, 475 market-rate apartments in two towers, and parking for about 2,200 vehicles. Andrew Hellinger, manager of River Landing Development LLC, formed the foundation in order to acquire and improve the county land. Today it is an aging parking lot used by the county, near Northwest North River Drive and Northwest 14th Avenue due east of the former shrine. The county’s resolution requires the foundation to spend at least $3,974,223 to improve and maintain the property, restricts site use and re-conveyance, and provides for a reverter at no cost to the county if conditions aren’t met to comply with the intent of the county commission. Earlier this year, Deputy Mayor Jack Osterholt told commissioners that staff decided to use a conveyance rather than a lease as the developer would be responsible for all improvements and the property would revert to the county if it wasn’t maintained to county satisfaction in perpetuity. The resolution conveying the county land to the foundation refers to enhancing the Health District. Mr. Hellinger has said that River Landing will be a catalyst for urban renewal in the Health District. “It will help fill the district’s gap and demand for shops, restaurants and market-rate apartments. The Health District is the densest employment area in Miami with over 45,000 employees working around the clock in world-class research institutions, hospitals, medical schools, science labs and the court system. Our intent is to provide employees, residents and tourists a desirable place to live and visit and a new place to shop and dine,” Mr. Hellinger said. In March, the developer received $7.5 million from the county from an economic development fund. The developer requested the funds as reimbursement for infrastructure costs. In order to collect the funds, the developer must complete the project and prove jobs

have been created. The county’s economic development fund was part of a $2.9 billion voter-approved Building Better Communities General Obligation Bond Program. As part of his application for county funds, Mr. Hellinger’s company detailed economic impact projections affecting the Health District neighborhood and beyond. “When River Landing is completed, the households occupying the proposed rental units and workers at the project during their work day will spend approximately $10.1 million annually in retail and food and beverage establishments,” the application stated. It’s anticipated that at least

River Landing Shops and Residences is to have 475 apartments, 426,000 square feet of retail and dining.

85% of these expenditures will be within the City of Miami. “When completed a total of 980 workers will be employed at River Landing inclusive of retail and food service workers as well as people involved in project leasing and operations,

Tomás P. Regalado Mayor City of Miami

maintenance and parking,” the application said. Economic impact to the area, the application said, includes about $15 million to the county and city in impact fees, water and sewer connection fees, building permits and other sur-

Ross Report on Real Estate

Mikki Canton, Esq Managing Director 2I¿FH RI International Business Development

CITY OF MIAMI EB-5 REGIONAL CENTER HOUSING SUMMIT AND CALL FOR CONSTRUCTION PROJECTS “We have had the conversation and recognize we have a problem -- but it will take much more than that for our communities to effectively deal with the ‘housing crisis’ confronting diverse segments of our community. I believe it is most timely to highlight The City of Miami EB-5 Regional Center front and center as a tool to implement an ambitious agenda to build housing projects to meet our construction project development needs.” “Therefore, I call upon our civic, business and political leadership to partner with The City of Miami EB-5 Regional Center to develop specialized housing construction projects to include, but not limited to, affordable, workforce, median income, living facilities for the elderly, assisted living facilities and retirement communities which offer medical and other support to residents.” Tomás P. Regalado, Mayor of the City of Miami ~*~*~ CITY OF MIAMI EB-5 REGIONAL CENTER HOUSING SUMMIT and CALL FOR CONSTRUCTION PROJECTS Wednesday, July 29, 2015 9am to 1pm Miami City Hall Chambers 3500 Pan American Drive Miami, Florida 33133

charges. River Landing Development is an affiliate of Hellinger Penabad Cos., a real estate investment, management and advisory firm in Coral Gables. HPC is led by Mr. Hellinger and Coralee Penabad.

by Audrey Ross Spotlight: Key Biscayne Key Biscayne is the ultimate opportunity for family living in a luxury setting. It’s a secluded town, just 30-minutes from cosmopolitan Miami. This barrier reef island is accessible via the Rickenbacker Causeway. Surrounded by the Atlantic Ocean and Biscayne Bay, this sophisticated village is one of the most coveted places to live in all of greater Miami-Dade County. The island offers full service luxury condos with year round resort type living, as well as older, classic, large Floridian-style homes along the coast some of which directly face the stunning Miami sky-

line. The median sale price for single-family homes is $2.75 million. There are two excellent public schools and a private school for the area’s children: Key Biscayne Elementary serves K-8. Mast Academy is the local high school. Key Point Academy is the local independent school for K-8. The atmosphere is laid back and supports an active lifestyle with plenty of opportunities for golf, tennis, surfing and diving. This family friendly town is also a boaters’ paradise. The city enforces strict policies to maintain the low-key lifestyle. The

majority of the island is protected parkland, which keeps the island from being over run with development and preserves its unique old world charm. Whether a year-round residence or winter retreat, it’s the perfect place to escape the demanding fast pace of urban living for a quiet, high quality of life, close to a major metropolitan city. For professional advice on all aspects of buying or selling real estate, please contact me at aross@miamirealestate.com or 305-960-2575, or come by the office at 355 Alhambra Circle, 9th Floor, in Coral Gables.

Advance registration is mandatory due to occupancy capacity restrictions. Please pre-register via email to tmorales@miamigov.com no later than Friday, July 24, 2015.

www.miamirealestate.com

CITY OF MIAMI, FLORIDA NOTICE OF PUBLIC HEARING

ANY PERSON WHO RECEIVES COMPENSATION, REMUNERATION OR EXPENSES FOR CONDUCTING LOBBYING ACTIVITIES IS REQUIRED TO REGISTER AS A LOBBYIST WITH THE CITY CLERK PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS AND COMMITTEES OR THE CITY COMMISSION. A COPY OF THE APPLICABLE ORDINANCE IS AVAILABLE IN THE OFFICE OF THE CITY CLERK (MIAMI CITY HALL), LOCATED AT 3500 PAN AMERICAN DRIVE, MIAMI, FLORIDA, 33133.

AT THE SCHEDULED MEETING OF THE COMMISSION OF THE CITY OF MIAMI, FLORIDA, TO BE HELD ON JULY 23, 2015, AT 9:00 A.M., IN ITS CHAMBERS AT CITY HALL, 3500 PAN AMERICAN DRIVE, THE MIAMI CITY COMMISSION WILL CONSIDER THE FOLLOWING ITEM RELATED TO THE REGULAR AGENDA:

A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, ACCEPTING THE PLAT ENTITLED “DERBY SUBDIVISION”, A SUBDIVISION IN THE CITY OF MIAMI, SUBJECT TO ALL OF THE CONDITIONS OF THE PLAT AND STREET COMMITTEE AND THE PROVISIONS CONTAINED IN CITY CODE SECTION 55-8, AND ACCEPTING THE DEDICATIONS SHOWN ON SAID PLAT, LOCATED ALONG THE NORTH SIDE OF NORTHEAST 29 STREET ADJACENT TO BISCAYNE BAY; AUTHORIZING AND DIRECTING THE CITY MANAGER AND CITY CLERK TO EXECUTE SAID PLAT; AND PROVIDING FOR THE RECORDATION OF SAID PLAT IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA.

A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, ACCEPTING THE PLAT ENTITLED “MIAMI WORLDCENTER PLAT 1”, A REPLAT IN THE CITY OF MIAMI, SUBJECT TO ALL OF THE CONDITIONS OF THE PLAT AND STREET COMMITTEE AND THE PROVISIONS CONTAINED IN CITY CODE SECTION 55-8, AND ACCEPTING THE DEDICATIONS SHOWN ON SAID PLAT, LOCATED BETWEEN NE 1 AVENUE AND NE 2 AVENUE, AND BETWEEN NE 10 STREET AND THE FLORIDA EAST COAST RAILWAY RIGHT OF WAY; AUTHORIZING AND DIRECTING THE CITY MANAGER AND CITY CLERK TO EXECUTE SAID PLAT; AND PROVIDING FOR THE RECORDATION OF SAID PLAT IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA.

Copies of the proposed Resolution are available for review at the Public Works Department, Survey and Land Records Section of the Construction Division, located at 444 SW 2nd Avenue, 4th Floor, during regular working hours. Phone 305-4161232.

The Miami City Commission requests all interested parties be present or represented at this meeting and are invited to express their views. Should any person desire to appeal any decision of the City Commission with respect to any matter considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made, including all testimony and evidence upon which any appeal may be based (F.S. 286.0105).

In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in these proceedings may contact the Office of the City Clerk at (305) 250-5361 (Voice) no later than two (2) business days prior to the proceeding or at (305) 250-5472 (TTY) no later than three (3) business days prior to the proceeding.

Todd B. Hannon City Clerk #22678

Todd B. Hannon City Clerk #22679

WEEK OF THURSDAY, JULY 16, 2015

TODAY’S NEWS

MIAMI TODAY

New Cuban Museum set for late August wrap-up BY CARLA VIANNA

A final completion date for the Cuban Museum’s new building has been set for late August, finally solidifying what has been a fluid timeline for the center’s completion. Part of the team spearheading the project met Friday to track its progress, said Raul Rodriguez, who heads Rodriguez and Quiroga Architects. Substantial completion of the new 15,000square-foot building at 1200 Coral Way is set for Aug. 14. The completed building is to be handed over two weeks after that. An official opening has yet to be set. From his understanding, Mr. Rodriguez said, the museum would like to open its exhibit in time for Art Basel in December. But a statement sent to Miami Today by Ileana Fuentes, the museum’s cultural consultant, said a launch date has not been determined due to the museum’s ongoing construction. A two-year construction hiatus, caused by Miami-Dade County’s temporary halt of parts of a bond program funding cultural infrastructure, has delayed the museum’s opening date by three years, Miami Today reported. In March 2014, the museum was to open in early this year. In May, the reported opening date was Nov. 20. Ms. Fuentes did say a fundraising event campaign is on the horizon “to ensure the success of the museum.” Miami

Today was told in May the museum is collecting “anything and everything” related to the Cuban émigré community. The museum will tell the story of those who left their country in search of freedom after 1959, Ms. Fuentes’ statement read. The museum will be moving from its current location at 1500 S Dixie Hwy., where as of March of last year it was staying rentfree in a Bank of America-owned building. Photos posted on the Cuban Museum’s Facebook page show progress within the interior of the new building, including a finished sleek, white, marble-like interior and a matching spiral staircase. Its new home is to include a 5,000-plus-square-foot gallery, a movie and live plays theater on the second floor, a sculpture garden, a gift shop, and roof space for outdoor concerts. The new building’s purchase and reconstruction is funded by $10 million in bond borrowing administered by the county’s Building Better Communities Bond Program. The museum currently operates on a $150,000 annual budget funded by grants and donations, but once operations in the new building begin, Ms. Fuentes told Miami Today last year, she expects the budget to increase to about $1 million during its first year of operations. At that time, she reported slow progress in achieving grants due to the new building’s ongoing construction, but said donations and grants would come flowing in the minute the museum was inaugurated.

Photo by Maxine Usdan

The owners plan to place a mixed-use development on the site of Fox’s in a changing South Miami area.

Fox’s, fixture since 1946, due to close BY CATHERINE LACKNER

To the dismay of regulars and even some who drive from distances, Fox’s Sherron Inn, a South Miami neighborhood hangout since 1946, is to close its doors July 31. “This place means something to a lot of people,” said Ricardo Gutierrez, its manager. Since word of its impending demise got around, “We’ve been swamped,” he said. The owner, Dixie Acquisitions Number One LLC, led by Venezuelan businessman Rene Dahdah, is planning to hold onto

the property and put a mixeduse development there, Mr. Gutierrez said. Dixie Acquisitions Number One LLC bought the restaurant and bar about five years ago, according to county property records. Fox’s location at 6030 S Dixie Hwy. puts it in the middle of an area that is rapidly developing; new office towers and retail complexes are rising in what was once a quiet suburb. It is close to Metrorail, the Shoppes of Sunset, South Miami Hospital and the University of Miami. Directly north of Fox’s, at 5958 S Dixie Hwy., the Comras

Co. is developing a two-story complex on the site of the former New Chinatown restaurant and the Swim-Bike-Ride Triathlon shop. It can house offices, retail or restaurant space, according to the company’s website. The 22,000-square-foot site offers US 1 frontage and could be built out for occupancy next year. The Fox’s site comprises 6,007 square feet; the building itself covers 4,504 square feet, according to property records. It was assessed for tax purposes at $842,019 this year, the records indicated.

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The Cuban Museum, shown in March, has yet to set an opening date.

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MIAMI TODAY

WEEK OF THURSDAY, JULY 16, 2015

Miami Wilds theme park could survive minus second phase BY SUSAN DANSEYAR

Miami Wilds LLC remains enthusiastic about its proposed theme park to be built in the ZooMiami area and is evaluating the feasibility of a phased approach to expedite plans for the multi-million-dollar entertainment complex. According to George Navarrete, deputy director of parks for Miami-Dade County, a Phase 1 development could include a water park, limited lodging and some retail; and Phase 1 would take place all within existing county property. That could later include development on neighboring US Coast Guard property, he said, that would include the theme park and significant retail. â&#x20AC;&#x153;We always anticipated the Miami Wilds project would be developed in two phases, with Phase 2 following immediately behind Phase 1,â&#x20AC;? said Paul Lambert, project director for Miami Wilds LLC. â&#x20AC;&#x153;What was unanticipated, I think we can safely say by nearly everyone in our group and county government, was that US Fish & Wildlife would require such an extended habitat survey and approval process associated with the Phase II site even though the Miami Wilds plan does not call

for developing in any of the Pine Rockland Forest,â&#x20AC;? he said. According to Mr. Navarrete, significant environmental surveying for evidence of listed endangered species has already taken place on county property. He said additional environmental surveys, following US Fish & Wildlife Service protocols, could begin on Coast Guard property as early as August and be completed by August 2016. â&#x20AC;&#x153;These surveys will assist the service in determining permitting and mitigation requirements,â&#x20AC;? Mr. Navarrete said. â&#x20AC;&#x153;We will have a better sense of the timetable once the environmental surveys are completed and reviewed by the service.â&#x20AC;? The federal habitat review has created uncertainty associated with timing and developable land parcel that would be included in any transfer of Coast Guard property to the county, Mr. Lambert said. â&#x20AC;&#x153;As a result, weâ&#x20AC;&#x2122;ve had to rethink an approach to include a ready-to-develop Phase 1 program without being dependent upon Phase 2 coming to fruition,â&#x20AC;? he said â&#x20AC;&#x153;After going through heavy additional planning and review, we are convinced that the Phase I project stands on its own legs financially, has few if any of the

Environmental surveys dictate a timetable, said George Navarrete.

federal approval complications and substantially more limited public funding needs compared to the larger Phase 2 effort, and will both feed and feed off of new energy created at the front gate of ZooMiami.â&#x20AC;? The latest developments have been helpful for identifying the project character, said Jack Illes, creative partner for Miami Wilds LLC. â&#x20AC;&#x153;I have been personally focused for the last four months on community engagement, and have had the opportunity to meet a number of the thought leaders involved in the scientific, environmental and business communities locally,â&#x20AC;? Mr. Illes said. â&#x20AC;&#x153;Those conversations â&#x20AC;&#x201C; with a variety of local groups such as the National Park Service, Ever-

In Memoriam â&#x20AC;˘ Robert Marcuse Robert J. Marcuse Banker, Author and 9th President of FIBA Dear FIBA members and friends, It is with great sadness that we share with you that our esteemed colleague Robert J. Marcuse passed away on Thursday, July 9th, 2015 in Montevideo, Uruguay. He was a kind luminary who greatly affected the vision and success of FIBA and he will be terribly missed. Mr. Marcuse was Past President/Chair of FIBA and a longtime executive at Banque Sudameris in Miami, Venezuela, Uruguay, Argentina and Peru. He was instrumental in WKH GHYHORSPHQW RI WKH UHODWLRQVKLS ZLWK )(/$%$1 HVSHFLDOO\ GXULQJ WKH ÂżUVW *HQHUDO Assembly held in Miami in 1988. During Marcuseâ&#x20AC;&#x2122;s presidency, FIBAâ&#x20AC;&#x2122;s bylaws were amended to allow supporting members to join the organization. He also authored several books on banking such as More Banks Than Bankers, El Banco 1XHVWUR GH &DGD 'tD ,QWHUQDWLRQDO %DQN 2SHUDWLRQV ,QWURGXFFLyQ D OD WHUPLQRORJtD Âżnanciera, Operaciones bancarias internacionales en AmĂŠrica Latina, TambiĂŠn... tambiĂŠn: OD 'DQ]D GH ODV 2SFLRQHV DQG 'LFFLRQDULR GH WpUPLQRV ÂżQDQFLHURV EDQFDULRV On a personal note he was over the years my boss, my mentor and my friend and I will miss him. Please keep his wife Aida, children and grandchildren in your thoughts and prayers. Kind regards, David Schwartz President and CEO FIBA (Florida International Bankers Association)

glades Foundation, academics at FIU and FAU, local chamber and trade groups, and the local business community in the Redland â&#x20AC;&#x201C; have helped us develop a better understanding of the opportunity at Miami Wilds.â&#x20AC;? Mr. Illes said thereâ&#x20AC;&#x2122;s is an exceptional opportunity for Miami Wilds LLC to create a unique destination that can serve as an environmental showcase, a focal point for the South Dade community, and as a gateway to the other attractions in South Dade. â&#x20AC;&#x153;The unique character of the destinations and natural environment that surround us will serve to create the personality and character of the new attractions at Miami Wilds,â&#x20AC;? he said. Specifically, Mr. Illes said, the Pine Rocklands forest affords Miami Wilds LLC the opportunity to broaden awareness among its visitors about the Everglades ecosystem and its importance to South Florida. â&#x20AC;&#x153;We have proposed to set up a conservancy to restore, manage and protect the forest, and believe that we can create a showcase for environmental awareness and responsibility through our efforts,â&#x20AC;? he said. â&#x20AC;&#x153;The heritage museums now in place â&#x20AC;&#x201C; the Gold Coast Railroad Museum and the South Florida Mili-

tary Museum and Veterans Memorial â&#x20AC;&#x201C; also serve as an opportunity to create a setting at Miami Wilds that further showcases the unique local history and culture of South Florida.â&#x20AC;? A significant development at the zoo itself is the new entry and Everglades exhibit area, Mr. Illes said, which the developers see as both the centerpiece and foundation for the entire Miami Wilds project. â&#x20AC;&#x153;Given our strategic location within the larger Everglades ecosystem, between two of the Everglades Park entrances,â&#x20AC;? Mr. Illes said, â&#x20AC;&#x153;we feel the new Zoo Everglades exhibit offers an exceptional platform to build on that will focus attention at Miami Wilds on the unique natural environment and local culture, and to attract new visitors to a destination appealing to locals and visitors alike.â&#x20AC;? From the outset, Mr. Illes said, Miami Wilds has had three primary objectives: expand awareness and visitation to the zoo; create new opportunities, both jobs and education, for local residents in South Dade County; and protect and preserve the unique forest setting with the zoo and heritage museums now in place, all based on a commercially viable business plan that supports these objectives.

150 TV jobs, 80 in energy get county incentives fuel BY SUSAN D ANSEYAR

County commissioners passed legislation Tuesday that is to reward creation of potentially 230 jobs and help retain 800 full-time equivalent jobs over a three-year period. The Beacon Council applied for economic development incentives under the Targeted Jobs Incentive Fund ordinance on behalf of what the resolution referred to as â&#x20AC;&#x153;confidential Project Novel,â&#x20AC;? which is planning to retain and expand its broadcasting/digital media relations headquarters in MiamiDade. The unnamed television and cable broadcasting company is planning a consolidation or expansion requiring a new 450,000-square foot, state-ofthe-art center in District 12; currently employs 800 workers at its facility; and is committing to create an added 150 jobs over a three-year period as a condition to disbursement of the incentive funds. The company agrees that the 150 new workers will earn an average annual salary of $89,000, excluding benefits. The incentive program specifies that an approved project generally must create at least 150 new jobs, retain them for at least three years and make at least a $3 million capital investment to receive the incentive. The county uses general revenues to fund the initiative. Based on the conditions set forth in the ordinance, confidential Project Novel is eligible for $3 million in assistance to be

paid over a six-year period. However, the Beacon Council is also projecting approximately $5,494,784 in additional general fund revenues to the county from the capital investment commitment stated in this companyâ&#x20AC;&#x2122;s application. Based on those projections, this incentive would yield a net positive fiscal impact of $2,494,784 to the countywide general fund over six years, according to a memo by Deputy Mayor Jack Osterholt. Commissioners also approved authorization of Project Zorin, a hydrogen energy company harnessing a pioneering energy source technology, as a qualified target industry business and entitled to $560,000 in tax funds over a six-year period. The state will provide $448,000 (80%) and the county will provide up to $112,000 (20%) in matching funds from countywide general fund revenues for a six-year period beginning in fiscal 2016. Project Zorin plans to establish an 18,000-square-foot corporate headquarters for its alternative energy company in Miami-Dade. The precise location is undetermined. The project plans to create 80 new full-time equivalent jobs, paying an average annual salary of $92,442, which represents more than 200% of the state average wage, over a three-year period. According to documents submitted by the Beacon Council on behalf of Project Zorin, employee benefits associated with each newly created job will be $13,000 a year.

WEEK OF THURSDAY, JULY 16, 2015

MIAMI TODAY

As rents rise, experts expect office towers to change hands BY SUSAN D ANSEYAR

Large and prominent officer towers have and will continue to change hands now that increasing rental rates provide a greater rate of return for investors, market experts say. The Brickell corridor, in particular, has seen rents jump 10% to 15% and they’re projected to increase even more in the coming 12 to 24 months, said Andrew Easton, who leads the office investment and brokerage branch for the Easton Group. There’s been evidence over the past five months of this change in the market. In May, 800 Brickell Ave. sold for $111.6 million, about $534 per square foot. Guggenheim Investments and Stiles Realty sold the 15-story, 209,122-squarefoot office building to Chicagobased RREEF, an arm of Deutsche Bank. At the time, a representative of Stiles said in a written statement that the sale represented the highest price per square foot in the Brickell market. It is nearly 90% leased. In February, South American investors paid $140 million, $485 per square foot, to Brickell Office Plaza Inc. for the SunTrust Bank office tower at 777 Brickell Ave. The 13-story, 288,485square-foot building is 93% leased. Photo by Maxine Usdan 15-story office building 800 Brickell sold for $111.6 million in May. There’s a lot more demand

Trophy towers are few: Jon Blunk. Brickell rents up: Andrew Easton.

for office towers in South Florida with the return on investment much higher than a few years ago and very little new construction planned, Mr. Easton said. The lack of any real product limits investors to just a few “trophy” buildings, said Jon Blunk, senior director of office leasing for Cushman & Wakefield. Miami Tower at 100 SE Second St. is about to hit the market, he said, re-trading just four years after it was last sold, which is good for the market and will set new barometers for pricing. In addition, Mr. Blunk said he’s heard the 27-story 1221 Brickell will hit the market soon. “There’s a real drive for investors in a 24/7 market,” he said. “They’re buying into what the city is going to be.” This cycle has peaked for the

construction of new, state-ofthe-art office towers. Market analysts have been saying for a while that it makes more financial sense for developers to build mixed-used projects. With additional condo units, a lot more people are living in the city, Mr. Blunk said, so Miami is on its way to being a true, global 24hour, seven-day-a-week market. “Prices for office towers are driven up by where potential investors think rents will grow,” he said. “I see a spike in rents and think that will keep happening for the next 24 months.” The money for these prominent office towers is coming from foreign capital, but also lately a lot of institutional money, Mr. Blunk said, including REITS, large insurance companies and pension funds.

Warehouse vacancy keeps falling, big operators keep buying BY CARLA VIANNA

Vacancy rates in the Miami industrial sector remain low, dropping from about 4% in the first quarter of the year to 3.8% now, CBRE reported. Seagis Property Group, a Pennsylvania-based company that owns 5 million square feet of industrial property in South Florida, will continue to expand its base here, although there are no current deals on the horizon, said Ronald Marrero, director of investments and leasing for the company’s South Florida offices. “There aren’t that many buildings available for sale,” Mr. Marrero said, adding that it’s difficult for users – let alone an investor – looking for 50,000 square feet of space to find a warehouse of that size. Most tenants use less than 50,000 square feet, he said. Seagis currently owns close to 100 properties in the MiamiDade and Broward County areas – 93 to be exact. The last property the company purchased was a 30,096-squarefoot multi-tenant industrial building in Miami Gardens, Miami Today reported in January.

Photo by Maxine Usdan

Seagis has acquired 93 properties like this one at 3450 NW 115th Ave., but not many are for sale today.

Mr. Marrero said owner-users, or users who are buying their own buildings as opposed to renting, have made a comeback. Now that financing is available for buyers, it may make more sense to buy a building rather than lease it. Other warehouse giants in

South Florida include Prologis, which owns Prologis Beacon Lakes, a 478-acre park at the Florida Turnpike and Northwest 25th Street; and Liberty Property Trust, which owns Miami International Tradeport, a ninebuilding industrial park under construction in Medley.

Brian Smith, the South Florida executive director for Cushman & Wakefield’s industrial brokerage services, said he expects continued growth in warehousing demand. Activity is seen throughout the entire county, he said, agreeing with Mr. Marrero on the

low availability of space. Medley and Airport West still remain the main market areas, he said. There were 462,383 square feet of industrial space put into use in Medley during the most recent quarter, according to CBRE. Another 701,022 square feet are under construction. Companies have been shuffling in and out of warehouses throughout the county due to consolidations or expansions, Mr. Smith said. Forever 21, for example, is moving from its 25,000-square-foot warehouse to one double its size in Medley. Another large third-party logistics company is expanding from its 55,000-square-foot warehouse to more than 100,000 square feet in the Airport West area, but Mr. Smith could not disclose the client’s name. “Industrial real estate in South Florida is a mature sector, meaning we don’t jump by 30% and decrease by 30%,” Mr. Smith said, differentiating the industrial market from the boom-andbust cycles of the residential realm. “Year over year, we won’t see a huge jump. We’ll see consistent growth and health in terms of absorption and vacancy.”

MIAMI TODAY

COMMERCIAL & OFFICE SPACE

WEEK OF THURSDAY, JULY 16, 2015

Exploding Doral office market supports growing population BY CATHERINE LACKNER

When it comes to Doral’s office market, the maxim “If you build it, they will come” is frequently cited as a rationale for its success. “Doral has been exploding in the past few years,” said Jon Chassen, partner in the law firm Bilzin Sumberg’s real estate and distressed property groups. “If your population moves west, you need infrastructure to support that population, and that includes residential and office space. And the population there is increasing significantly.” There are large office complexes occupied by owner-users, including Lennar Corp., but the vast majority of offices are occupied by small- to mid-sized companies, he said. Many locate there to be easily accessible to their employees, as the area has good access to the Florida Turnpike, State Roads Photo by Maxine Usdan 826 and 836, and I-75. Con“If your population moves west, you need infrastructure to support that population,” said Jon Chassen. versely, companies that open

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offices in Doral can offer employees who live farther east a less-stressful reverse commute, he added. “It’s not going to be for everybody,” Mr. Chassen said. “Certain businesses need to be downtown or in Brickell - law firms, financial institutions - and those guys are not going to change. But for a lot of other folks, if you don’t need to be downtown, and your employees live out west and they can be working and living in the same place, it’s a no-brainer.” “Running a company in Doral has been traditionally been less expensive, both in terms of operating expenses and rent, than in the central business district or Brickell,” said David Martin, president and co-founder of Terra Inc., which has retail and residential projects in the area. “It’s cost-effective, there is good employment here and the city is pro-business.” Rates for class A space are about $35 per square feet gross and around $28 per square foot for class B, observers say. Terra’s latest project, Doral Commons, a 140,000-squarefoot retail center at Northwest 107th Avenue and 74th Street, is 90% leased, with tenants including Publix supermarket, Citibank, GNC, AT&T Wireless, McDonald’s and TJ Maxx, the company said in a release. “We’ve been in Doral for 10 years,” Mr. Martin said. “It’s always been a strategic location for office and residential,” given its proximity to major roadways and Miami International Airport. “It started out as an industrial area; then office and residential started to grow,” he explained. “Now there are homes available to employees of major companies, and that did not exist 20 years ago. It crosses off every check mark in the box, and when employees want to live here, that creates demand for office space.” Masoud Shojaee, president and chairman of the board of Shoma Group, has said his company has the only class A building in Doral, referring to One Park Square, part of the 51acre, mixed-use Park Square complex. Completed in 2010, the 281,000-square-foot building is 90% leased, with Amadeus North America occupying 100,000 square feet. Blanca Commercial Real Estate Inc. is the leasing agent. He is eager to firm up plans for a second class A building, which could be delivered within two years, Mr. Shojaee said this week. Bernard Zyscovich will be the architect. “It will be something different, something people have not seen before,” Mr. Shojaee said. Asked how traffic – challenging enough now during morning, evening, and lunch rush hours – will accommodate all of the new growth, he suggested the city beef up existing trolley program. “The city should ask the developers to pitch in,” Mr. Shojaee said. “The developers should assume some of the cost. Leave a legacy, that’s our philosophy.”

MIAMI TODAY

WEEK OF THURSDAY, JULY 16, 2015

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