Miami Today: Week of Thursday, July 7, 2016

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A Singular Voice in an Evolving City

WEEK OF THURSDAY, JULY 7, 2016

WWW.MIAMITODAYNEWS.COM $4.00

HEALTH UPDATE

Middle school targets health care industry careers, pg. 15 SCHOOLS GO FOR FUNDING: The MiamiDade County Public Schools plan to sell $190 million in general obligation bonds Aug. 2 and to issue $296 million in tax anticipation notes next week. The bonds are secured by the school district’s unlimited taxing authority and are part of the district’s $1.2 billion voter-approved bond authorization for a variety of construction and renovation projects at schools throughout the district. The notes, dated July 31, are due to be repaid Feb. 23, 2017, and will provide operating cash for this fiscal year. Investor service Moody’s last week assigned a Aa3 rating to the bonds and a MIG 1 rating to the notes. The district is the fourth largest in the nation, with 465 schools, 356,480 students and 38,944 employees.

Key factors bring stability to health care costs, pg. 17

THE ACHIEVER

BY SUSAN D ANSEYAR

CONSTRUCTION SOARS: Construction starts in Miami-Dade And Broward counties in May rose 23% in value from May 2015, Dodge Data & Analytics reported last week. Total area starts during the month were valued at more than $570 million, up 23% from the $464.6 million in May 2015. Residential starts rose 62% to $366 million during the period, while nonresidential fell 15% to $204 million. As Miami Today reported last week, construction jobs also rose in May, up 17.1% in Miami-Dade. Nationally, May construction spending dipped 0.8% from April, falling to $1.143 trillion, according to the Associated General Contractors of America. Year to date, Dodge reported an 8% construction starts gain in South Florida, matching the 8% national increase reported by the Associated General Contractors. COUNTY BONDS RATED A+: A bond issue by Miami-Dade County to repay old bonds at a $42 million savings was assigned an A+ rating by Fitch Ratings last week, just a week after county commissioners authorized the bonding. The $350 million in special obligation revenue bonds will repay bonds issued in 1996 and 2005. The new bonds are payable from net proceeds from the county’s 3% convention development tax on hotel rooms other than in Bal Harbour and Surfside. The bonds are expected to be issued in August. WEST DADE BIKE PATH: The Miami-Dade County Department of Transportation and Public Works plans to create an off-road bicycle path along Southwest 144th Avenue between Southwest Ninth and 42nd streets. Area residents will be informed of details of the project, which includes signage and pavement markings along the path, at a meeting from 6:30 to 8 p.m. July 20 at Braddock Senior High School, 3601 SW 147th Ave. Details: Karla Damian (786) 469-5420.

Kathleen Moorman

Photo by Marlene Quaroni

Spearheads real estate for Baptist Health South Florida The profile is on Page 4

Expanded taxes to aid homeless gaining ground BY CATHERINE LACKNER

Trust’s reserves save transient beds, pg. 18 all three cities would have to pass resolu-

The campaign to have Miami Beach, Surfside and Bal Harbour contribute a percentage of their food and beverage revenues to fight homelessness is moving forward. “We continue to have a dialogue, and there have been some positive conversations,” said Ron Book, chair of the Miami-Dade Homeless Trust. Because they are subject to taxes that do not exist on the mainland, the three cities were exempted, when the legislation was negotiated 22 years ago, from the 1% tax on food and beverages that helps fund the homeless trust. Miami’s Downtown Development Authority, which has said that downtown is inordinately affected by homelessness, launched a campaign last year to get the three cities to pay what the authority considers to be a long-overdue share. At a June 30 homeless trust meeting, Jay Solowsky, who has served as the downtown authority’s outside counsel, asked how the trust’s effort on that front is going. “Thank you for the question,” Mr. Book said. “The chair continues to communicate with Miami Beach and Bal Harbour. We

have yet to have communication with Surfside. Your question prompts me to appoint you as a one-person committee. You are designated to have a conversation with Surfside staff. I can communicate to you what I’d like your message to be. “As it relates to Miami Beach, the chair has continued to have dialogue with the city. I’m going to take this opportunity to communicate directly with Commissioner Malakoff,” he said, referring to Joy Malakoff, a Miami Beach commissioner who serves on the homeless trust. “I know that she has had some conversations with leadership folks in the community on the issue as it relates to Miami Beach. I’ve had some fairly extensive conversations with the manager, Jimmy Morales, and a number of conversations, although not in recent time, with Mayor [Philip] Levine.” He said he has also talked at length with Miami Beach Commissioner Ricky Arriola, “who has expressed a direct interest in leading the effort on the Beach to extend the tax.” To change the law, governing bodies in

AGENDA

Wastewater pump fixes flow ahead

tions and send them to the Florida Legislature, which could then remove the exemption. “I don’t believe it is productive to advance a doubling of the tax,” said Mr. Book, who is a lobbyist. “That won’t happen. We cannot get the votes.” Negotiating with the cities, not only about their potential contributions but also about the services they’d like to receive, is a better route, he said. “I am encouraged, for first time in the three years we’ve been talking about this, that there is a willingness on the Beach to engage in this dialogue and advance it. I would like to move this more quickly,” Mr. Book said. Though the Legislature doesn’t convene until March, bills can be filed in early fall and “you enhance your percentage chances” by filing bills and having them go through committees before the session starts, he added. “Let me be clear: if we are going to end homelessness in our community, we will only end it if we get the three communities that are not participating in the food and beverage tax to participate. It is the only way.”

The Miami-Dade Water and Sewer Department is making headway upgrading pump stations in a $13.5 billion improvement program, having finished 22 of about 200 to be done by 2031 to 2036. Program components include a federal consent decree that requires the county to improve its wastewater system to comply with the Clean Water Act, discharge permits and state environmental laws. Douglas Yoder, department deputy director, said the consent decree pinpoints 33 pump stations that require work. He told Miami Today that 21 of those need work to ensure they have capacity to transmit flow and 12 have operational issues such as running too long because a pipe is leaking. To date, Mr. Yoder said seven of the 33 pump stations in the consent decree have been upgraded. Of the department’s 1,047 pump stations, 15 others have already been upgraded as part of the pump station improvement program, also a component of the $13.5 billion capital program, which will provide pump stations upgrades and new sewer force mains. The capital improvements comprise other projects, including new water treatment plants and new pump stations in areas such as Brickell that have had substantial, rapid development. Department Director Lester Sola recently told county commissioners the administration is looking at all the pump stations for a “quick fix” to get them out of moratorium. “The department is committed to completing the capital improvement program in a way that will deliver a new and improved water and sewer system,” he told Miami Today this week. “While we work toward meeting higher demands for production of water and treatment of wastewater with new stateof-the-art facilities, we are taking interim steps to improve certain system components to offer immediate increased capacity where there was none.”

BEACHES IN MIAMI BEACH TO GET WIDER, ADDED SAND ...

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CINEMAS SETTLE FRAY OVER MERRICK PARK THEATER ...

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2,300 BRICKELL CONDOS THAT WERE DUE ARE DELAYED ...

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ROYAL CARIBBEAN SEEKS TO ALTER PORTMIAMI LEASE ...

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VIEWPOINT: TRY BANISHING NOISE, NOT THE TRUCKERS ...

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BOARD TELLS CITY TO REJECT KEY MARINA PROPOSALS ...

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MIAMI’S COMMISSION TO WEIGH 17 CHARTER CHANGES ...

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HISTORIC BUENA VISTA FACES DEVELOPMENT PRESSURE ... 23


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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, JULY 7, 2016

THE INSIDER MAYORS TO MEET AGAIN: An alliance between mayors of Northeast Miami-Dade municipalities, created to resolve common issues including evacuation times and beach nourishment, hasn’t convened during the past three months. The group hopes to meet this fall, said Aventura mayor Enid Weisman. According to Surfside mayor Daniel Dietch, the next step will be meeting with the Miami-Dade County Office of Resilience. GAS PRICES DIP: Independence Day gasoline at the pump in Miami averaged $2.36 per gallon, eighttenths of a cent lower than a week earlier, 4.3 cents a gallon lower than a month earlier and 40.7 cents lower than on July 4, 2015, according to the GasBuddy price-tracking service. Nationally, prices at the pump on July 4 averaged $2.26 per gallon, 3 cents a gallon lower than a week earlier, 10 cents a gallon less than a month earlier and 50.7 cents lower than on Independence Day in 2015. Enid Weisman

WAZE TO EASE CONGESTION: Miami-Dade County and the Waze Connected Citizens Program will partner to provide county construction, crash and road closure data to the free crowd-sourced traffic and navigation app so that Waze users can see as they drive road closures, One beach erosion hotspot will be filled from the Fontainebleau to the Blue and Green Diamond condos. traffic delays and other issues that influence mobility. The association was announced last week. Waze contributes its own information supplied by user drivers. “Many of our residents rely on mobile GPS to navigate them safely around the county,” said Alice Bravo Mayor Carlos Gimenez, “and now we can be part of the ride.” Said county transportation chief Alice Bravo, “it is our hope that everyone will use this kind of information for all of their trips in order BY CAMILA CEPERO to ease congestion.”

Two beach hotspots to be widened in Miami Beach in $12 million pact

FUNDS FOR FIREFIGHTERS: An allocation up to $950,000 is being made from city general fund transfers and fire impact fees in Miami for the Department of Fire-Rescue’s Comprehensive Cancer Prevention Program, after a vote of city commissioners June 23. Experts say firefighters face dangers from some chemicals associated with their jobs. The resolution notes that on June 9 the fire chief and the International Association of Fire Fighters Local 587 president made a presentation on the department’s cancer prevention program. The objectives of the plan are to enhance personal protective equipment, to implement environmental protection systems (exhaust removal), implement early cancer prevention and protection (diagnostic), and develop awareness and education. ADVANCING LEGISLATIVE PRIORITIES: Miami-Dade County Commissioners Sally Heyman, Audrey Edmonson and Daniella Levine Cava received the Presidential Advocacy Award during the 2016 Florida Association of Counties (FAC) Annual Conference & Exposition. The award is given annually to commissioners from Florida who have shown exceptional leadership in partnering with FAC to advance the counties’ legislative agenda. Ms. Heyman is chair of the Public Safety Committee; Ms. Levine Cava is chair of the Growth Management, Agriculture and Environment Audrey Edmonson Committee; and Ms. Edmonson is chair of the Urban Caucus. LEGION OF HONOR TO VETS: In a tribute to World War II US veterans who fought alongside France, Consul General of France in Miami Philippe Létrilliart was to award the French Legion of Honor to the soldiers in Orlando Veterans Medical Affairs Medical Center on July 6. The Legion of Honor is the highest French distinction created to reward military and civil merit in the service of France. Well-known recipients include Victor Hugo, author of Les Misérables; inventor Thomas Edison; and Dwight D. Eisenhower, 34th president of the United States. CODE COMPLIANCE TOOLS: Miami Commissioner Wifredo “Willy” Gort sponsored two amendments to city ordinances designed as added tools for code enforcement and compliance. City commissioners adopted both on a final reading June 23. One provides for the denial or revocation of a certificate of use when the holder’s accompanying Business Tax Receipt or BTR has been denied, suspended or revoked. The zoning administrator may revoke a certificate of use for several reasons, including that the holder (tenant/ owner) is engaging in an activity from the premises Wifredo “Willy” Gort that doesn’t comply with a zoning ordinance or other city ordinance. The amendment adds that right if a BTR has been denied, suspended or revoked. The second measure streamlines the process for the city manager to deny an application for a Business Tax Receipt, and ensures that notices are sent to the holder/tenant and property owner. ADVISORY FIRM PICKS MIAMI: Driven by what it labels economic and political instability in Latin America, 40-year-old global advisory and fund administration firm Maitland, which is based in Malta, has opened an office in downtown Miami. The site at 150 NE Second Ave., suite 805, is its second in the US. The other is in Manakin Sabot, VA. The company has 13 other offices, including in the Isle of Man, Luxembourg, Mauritius, Monaco, the British Virgin Islands, Cayman Islands and Ireland. Benjamin Reid, senior business development and client manager for Latin America, heads the Miami office. “Our LatAm business has been growing quickly,” said David Kubilis, head of business development, “so opening a Miami office fits perfectly with our strategy of expanding where clients are located.” TRAINEES TAKE WING: The Miami-Dade Aviation Department launched its Administrative Trainee Program, which provides professional work experience in the aviation industry for recent college graduates, with three area students. The competitive program is available for up to three college graduates for one year. CORRECTION: In the Best of Miami issue, the name of the co-chair of the sustainability practice at Greenberg Traurig, honored as a thought leader, is Kerri Barsh.

The US Army Corps of Engineers’ Jacksonville District has awarded a Florida small business an almost $12 million contract to renourish and widen beaches at two Miami Beach hotspots near 46th Street and 54th Street. Eastman Aggregate Enterprises LLC of Lake Worth was awarded the $11,889,480.65 contract last Thursday to focus on more than 3,000 feet of critically eroded shoreline. In 1968, Congress authorized the US Army Corps of Engineers to construct the Dade County Beach Erosion Control and Hurricane Protection Project after county officials requested federal assistance with shore erosion. With the completion of a nourishment contract in the Bal Harbour area in 2014, all major sand sources offshore of Miami-Dade County were exhausted. As a result, the 220,000 cubic yards of sand needed for the Miami Beach Hotspots project will come from an upland sand mine and be hauled in by the truckloads – between 18,500 and 22,000 of them. “The Miami Beach Hotspots contract was set aside for small business, as part of the Jacksonville District’s longstanding commitment to advocate for and utilize small businesses to help achieve our missions,” said Erica Skolte of the U.S. Army Corps of Engineers’ Jacksonville District South Florida Restoration Office. “By building and preserving the small business industrial base, we are able to contribute to diversity, competition, economic growth, and our national security.” Bids were due June 14 and there was healthy competition for the contract, she said, with The Corps receiving eight bids. The crown of the 46th Street erosional hotspot fill area will begin just north of 44th Street, near the southern end of the Fontainebleau Hotel, 4441 Collins Ave., and end between the twin towers of the Blue and Green Diamond Condominiums, 4775

Staging at Beach View Park will handle work for this beach widening.

Collins Ave. The access route and staging area – for construction equipment, crews and trucks hauling sand – will be at Indian Beach Park, 4601 Collins Ave. The crown of the 54th Street erosional hotspot fill area will begin at the south end of the Carriage House Condominium, 5401 Collins Ave., and end near the northerly end of the Castle Beach Condominium, 5445 Collins Ave. The access route and staging area will be at Beach View Park, 5301 Collins Ave. “The renourished beach will help protect infrastructure, including iconic, historically and architecturally significant buildings on South Beach,” said project manager Laurel Reichold in a statement. “The Corps builds beaches to protect infrastructure, preserve wildlife, support the economy, and build coastal resiliency,” Ms. Reichold said. “Widening the beach to about 230 feet also improves habitat for sea turtle nesting.” The beach will still be accessible by the public at both locations during the work, though some beach access areas will be closed due to safety concerns. Orange fencing and barricades will mark construction areas; beachgoers should use caution around these areas. Fill operations, tilling, demobilization and restoration of the 46th Street access is scheduled to be complete by Nov. 9, with the

remainder of the project expected to be completed by spring 2017. The public can attend an informational meeting at the Ronald Shane Center at 6500 Indian Creek Drive, Miami Beach, at 6 p.m. July 12. The meeting will be hosted by the US Army Corps of Engineers, Miami-Dade County and the City of Miami Beach. A brief presentation will be followed by questions and answers. Details: Erica Skolte, Erica.A.Skolte@usace.army.mil or (561) 472-8893.

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

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TODAY’S NEWS

WEEK OF THURSDAY, JULY 7, 2016

MIAMI TODAY

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2,300 Brickell condos once due in first quarter became zero BY MARILYN BOWDEN

Although developers have held back on adding new product to the Brickell condo market in response to a slowdown in sales, area brokers say the market is still resilient – and there’s no cause for alarm. According to ISG World’s Miami Report, more than 2,300 units in eight projects had once been slated for delivery in the first quarter this year. No new inventory actually arrived in the period, and during those three months, only 74 units sold. Annual sales in the Brickell condo market over the past five years, ISG reports, averaged 625 – more than 150 a quarter if sales were evenly distributed throughout the year. The market’s sluggishness, brokers say, can be pinned to a number of factors. “The biggest culprit seems to be the US dollar,” said ISG principal Craig Studnicky. Due to the strength of the dollar versus weak Latin American currencies, he said, sales from Latin America are off about 75%. “With this high dollar it’s very hard to get money out of South America,” he said. “Demand is as strong as ever. We just have to wait for it to become more affordable.” There are some positive signs. The US dollar “continues to depreciate against the Brazilian real, which is what we need to see the return of the Brazilian buyer,” Mr. Studnicky said. “When they start to move, buyers in other South American countries tend to watch and follow.” Nayla Benitez, manager of EWM Realty International’s Brickell office, pointed to market saturation as a major factor in the construction slowdown. “There are so many different moving parts,” she said, “but the

Market saturation was a major factor in the Brickell construction slowdown, said Nayla Benitez of EWM.

NEW BRICKELL CONDOS 2016-2017 Projects

Number of Units

Projected Delivery

390 390 328 453 358 332 180 387 450

2016 2016 2016 2016 2017 2017 2017 2017 2017

Brickell City Centre Reach Brickell City Centre Rise The Bond on Brickell SLS Brickell Residences Brickell Heights East Brickell Heights West Echo Brickell 1010 Brickell SLS Lux Source: EWM Realty International

most obvious is the increase in inventory.” Over the past year, she said, there’s been a 19% increase, representing about 30 months of supply. Looking at the $1 millionplus market exclusively, Ms. Benitez said, that figure jumps to about 70 months. A nine-month supply is considered a balanced

market. “We still have a handful of buildings that are not finished,” she said. “They will bring on nearly 3,000 units between 2016 and 2017. “So we are looking at a bit of saturation, but we feel the market will correct itself. Even with this level of inventory we are very

optimistic that the market will not see the drops in prices we saw in the last cycle.” For the moment, though, she said, sales are down 30% from this time last year. “That has everything to do with Latin America,” Ms. Benitez said. “It will be interesting to see what happens in the next six months. There will be opportunities created, but as more units come in, we will see owners in older buildings trying to sell at a very competitive rate.” Alicia Cervera LaMadrid, managing partner of Cervera Real Estate, said demand remains very high but inventory in new buildings along the Brickell Avenue corridor is substantially sold out. “Sales are going very well,” she said. “Miami is very resilient. We fall, we get up and we keep going.” The fact that some developers are dragging their feet in Brickell, Ms. Cervera LaMadrid said, has more to do with their own larger

EWM Realty International Makes History!

Coconut Grove

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strategies. “They are looking not just at what they have on Brickell but also what they have north of Brickell,” she said. “I don’t think anyone is rushing to introduce new product that is the same as existing inventory, but we may see some that are unique coming to market.” Current financial trends may help make Miami condos more affordable, Mr. Studnicky said. Federal Reserve Chair Janet Yellen “is not only considering not raising interest rates,” he said, “but is toying with a negative interest rate. That will keep mortgage rates low and keep the US dollar softening against other currencies.” As Latin American buyers hold back, brokers say they are training their sights on other opportunities, both foreign and domestic. “We are beginning to see other groups looking at the market,” Ms. Benitez said. “We have inquiries from Turkey and China, for example. At the end of the day, Miami is an epicenter. We are still at a lower price point than New York, Boston and Chicago.” She said Home Services Lending Group, a mortgage brokerage affiliated with EWM, has a new program to ease qualification requirements for local condo buyers. “We now have to qualify not only the buyer but also the condo,” said Sam Pink, a mortgage loan officer with Homes Services Lending Group, and that becomes prohibitive because condo associations charge prospective buyers for information. “Our condo team will follow up with the condo association to qualify the building, and we will absorb the cost. “Once we have qualified one buyer, it will be a much shorter process for other buyers in that building.”


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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, JULY 7, 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

Noisy night deliveries? Try banishing noise, not the trucks As Miami grows, no quality-of-life solution is truly simple. What sounds like a simple answer can actually be extremely complex, and not everyone can be 100% satisfied. But we can Michael Lewis try. Miami Beach residents rely on meetings and convention income but reject the traffic that a new convention hotel would bring. Do we build it or not? Bicyclists and automobiles jockey for primacy on roadways. Who gets priority? And what about pedestrians? Neighborhoods that face rising traffic as drivers cut through to avoid congested highways seek to close streets or install traffic-calming devices, thus pushing cars back to main arteries and slowing them even more. Does speed or the neighborhood win? Developers build condos with no parking to cut costs. Condo buyers like parking. City officials say lack of parking will add mass transit use. Visitors to condo areas find parking impossible. What’s the right mix? The list of dilemmas is long and the questions more complex than these hints. Balancing competing interests gets harder as stakes get higher. A classic simple solution that is anything but has just surfaced in Miami, where residents complain to city Commissioner Francis Suarez that night deliveries to nearby stores awaken them.

Mr. Suarez produced a simple, apparently logical answer: outlaw freight and commercial deliveries between 11 p.m. and 6 a.m. to any business within 100 feet of a residential zone. Though a key target is a Home Depot in Little Havana, his measure would have applied citywide. But Commissioner Willy Gort raised a concern about a produce market in his area. “If you stop those people from deliveries at 3 in the morning it’s going to affect their business quite a bit,” he noted. Produce markets sell at dawn, but they can’t sell without fresh produce. Exit one market. The commission eventually moved to limit the night delivery ban to just Mr. Suarez’s area for a one-year trial. A final vote is due soon. As Miami moves to bar night deliveries, New York thrives with its Off-Hour Delivery Project, created five years ago to encourage store deliveries through the night. The results, according to Rensselaer Polytechnic Institute, whose federally financed study kick-started the plan, is that city streets got cleaner and less congested and business profits rose. In the program, more than 400 New York businesses get freight deliveries between 10 p.m. and 6 a.m. instead of normal business hours. Those companies were paid $2,000 to join in for at least three months, whereas Miami would fine businesses $500 for taking deliveries at similar times. In New York, truck drivers get store keys to drop off goods and lock up afterward. Participants include Whole Foods Markets, the Waldorf Astoria, CVS, Foot Locker and Gristedes Supermarkets, but also small stores and restaurants.

Stores and restaurants are happier because erratic daytime deliveries trigger supply shortages. Benefits to truck drivers include 50% faster delivery than mornings and 130% faster than midday, no parking tickets (in a city where delivery trucks average $500 to $1,000 a month in parking fines), easier delivery, less congestion and lower stress. The main community benefit of night delivery is that streets are less congested in daytime after trucks traveling at low speeds and often double-parking to deliver leave the roads. No wonder Julius Caesar banned deliveries during daylight hours to reduce congestion in ancient Rome, or that Rome today limits such deliveries, along with outside automobiles. In fact, New York’s adoption of OffHour Delivery Project as part of its sustainability plan has spread. The Federal Highway Administration and the Environmental Protection Agency created a fund to spread the project across the nation. Orlando and Washington, DC, got federal grants to set up off-hours deliveries. Chicago, Boston and Atlanta all expressed interest. Abroad, London has already made timing of deliveries central in its plans, and São Paulo began a pilot program in October 2014. The New York program found that off-hours delivery built economic competitiveness, reduced congestion and environmental pollution, and improved sustainability, quality of life and livability. Also, according to a study of the New York program, use of low-noise delivery technologies ensures that local com-

munities don’t suffer. “By using adequate equipment and training staff on low-noise operation, a significant noise reduction compared to conventional loading procedures can be reached,” according to “Silence ELearning for Engineers,” which examined the issue. It found that a Dutch project for night deliveries held maximum sound levels to 60 decibels. Setting a maximum noise level rather than limiting delivery hours might be Miami’s solution. Boston’s municipal code, for example, says anything louder than 50 decibels from 11 p.m. to 7 a.m. is excessive, but allows 70 decibels at other hours. Using low-noise loading and unloading equipment “and training the staff for quiet operation can make the delivery quiet, thus tolerable during the night,” according to “Silence E-Learning for Engineers.” Miami may have it backward – it should grab the many benefits of supplying businesses at night when streets are nearly bare by encouraging a shift to ease traffic, but tie in rewards for lownoise delivery and penalties for excessive noise. That could meet everyone’s aims far better than banning delivery trucks when traffic is light and forcing them to roll when traffic is heavy. Because Miami can’t build more roads, one way to reduce congestion is to get more people to drive in the middle of the night, not at rush hour. Delivery trucks would be a good start. Encourage more of that. Maybe some of that federal study money that Orlando and others have gotten could quietly help us take that long step forward.

Pondering the emotional development of the male of the species I envy my wife. When we go for walks with another couple she usually goes next to the woman, and I usually get stuck with the man. While the women get to talk about how they are feeling and how life is going, I get to hear Isaac Prilleltensky exhilarating updates on garage renovations. From garage talk they move to the latest Harley-Davidson model, followed by an analysis of why the Marlins are still an awful team. If I get a lucky break my male companion will ask me how I am doing, but I quickly learned that they have no interest whatsoever in the answer. Male Friend: How are you doing? Isaac: Well, as of late… Male Friend (interrupting me, of course): Great! Have you been to Home Depot lately? Weed and Feed is on sale. This recurring and traumatic experience has led me to ponder the emotional development of the male species. If most males have the emotional brain of a pea and all they can talk about is completely devoid of depth, feelings, meaning, nuance and commitment, where does that leave me? I have an adorable and wonderful friend that all he can talk about is the state of his roof and the brake pads on his car. We used to go for walks together and he’d pick up

The Writer Isaac Prilleltensky is dean of the School of Education and Human Development and the vice provost for institutional culture at the University of Miami. He is the author of the book “The Laughing Guide to Well-Being: Using Humor and Science to Become Happier and Healthier.” old newspapers from the ground in case there were coupons for Home Depot. The one emotion that men do often express is anger. They are so detached from their feelings that, when something doesn’t go their way, frustration turns quickly into aggression. Their inability to process the mildest threat leads them to a complete meltdown. I know a specimen who, when the world doesn’t behave according to his whim, goes into a predictable pattern: (a) regression to prenatal stage, (b) nonsensical verbiage, (c) self-pity, (d) pouting, (e) abusive language, (f) threat of retaliation, and (g) rant about lack of justice, to say nothing of Donald Trump. Next to anger, control and domination are pretty common expressions of the male species, not to mention sexual supremacy, which seems to be concerning Donald Trump as well lately. We are not talking here about subtle control and flirtation, but Rambo-style

brutality. These might have been useful in the African Savanna, but somebody forgot to tell them that most of us are no longer running away from packs of Tyrannosaurs, and we’re definitely not interested in Trump’s virility. Despite the fact that most of us are no longer running away from Tyrannosaurs, most of us still worry about a lot of stuff. In my dreams, I have some recurring fears: 1. I am late for my flight. 2. I find myself naked in a busy intersection. 3. I am not prepared to teach my class (this one comes in several varieties: somebody assigned me to teach nuclear physics, Chinese, or organic chemistry). 4. I lost my wallet. 5. I lost my bag. 6. I ate meat. 7. I am late paying my life insurance. To cope with my fears, I obsessively plan (all my life insurance policies are on automatic debit). It usually works, but I still have some primal fears of public shame, as in numbers 2 and 3 above. I thought of getting degrees in nuclear physics, Chinese and organic chemistry, but I couldn’t possibly pass the new SAT. To prevent the humiliation of number 2 I always leave home with my clothes on. Not only that, but I also take a change of clothes. Number 7 above presents a unique challenge. I worry a lot about my family. This one is not hard to decipher. I lost my

parents when I was 8 years old (no joke). Both died in a car accident. It doesn’t take a psychoanalyst to figure out I worry about death, my own and others’. Ora, my wife, uses a wheelchair and she has a hard time getting up from bed, which is when I come in. The other night I woke up thinking that if I die in the middle of the night of a heart attack she might not be able to get up the next day and she would die from starvation, our son would become an orphan, and it is all MY FAULT, and I’m not even alive to feel guilty. Which is why I have never seen a life insurance policy I didn’t like.

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MIAMI TODAY

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WEEK OF THURSDAY, JULY 7, 2016

Cinemas settle fray over Merrick Park multi-screen theater BY CATHERINE LACKNER

With a controversy among the Coral Gables cinema community settled, General Growth Properties and Landmark Theatres are free to negotiate with the City of Coral Gables to put a multi-screen theater at the Village of Merrick Park. The proposed theater would occupy 25,000 square feet on the third floor, in the space vacated when Borders Booksellers closed several years ago. Though details of the lease are still to be worked out, it’s thought that the cinemas will be small boutique spaces that will share a patio and lounge area where patrons can buy food and drink. General Growth Properties, which manages the Village of Merrick Park, approached the city several months ago requesting permission to add the theater to the mall, which sits on a city-owned former equipment yard between LeJeune Road and Ponce de Leon Boulevard just north of US 1. But there was opposition from the Coral Gables Art Cinema, which operates in a city-owned building at 260 Aragon Ave. Steven Krams, the cinema’s founder and president, argued that the Landmark Theatre chain might have an unfair advantage

‘We know of no other issues to be raised.’ Cathy Swanson-Rivenbark

Photo by Maxine Usdan

General Growth Properties and Landmark Theatres will negotiate a multi-screen theater with the city.

in securing films. “I’m pleased to inform you that the two sides have been able to come to an agreement as to how to proceed,” Craig Leen, Gables city attorney, told the city commission June 14. Typically, leases on city facilities are worked out administratively, but “this was a special

case, because it has caused a lot of debate and some controversy. It was the goal of the city to resolve the controversy, and I believe we have done that,” Mr. Leen said. An affirmative commission vote means the city manager’s office would be free to negotiate the lease, he said. “This would become final then.”

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 THUSDAY, JULY 14, 2016, 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 “CVS ON 57TH AVENUE”, 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 SW 7 STREET AND SW 8 STREET, AND BETWEEN SW 57 AVENUE AND APPROXIMATELY 310 FEET TO THE EAST OF SW 57 AVENUE, 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 305-416-1232. The Miami City Commission requests all interested parties be present or represented at the meeting and may be heard with respect to any proposition before the City Commission in which the City Commission may take action. Should any person desire to appeal any decision of the City Commission with respect to any matter to be 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 DFFRPPRGDWLRQV WR SDUWLFLSDWH LQ WKLV SURFHHGLQJ PD\ FRQWDFW WKH 2I¿FH RI WKH &LW\ &OHUN DW 9RLFH QR ODWHU WKDQ ¿YH EXVLQHVV GD\V SULRU WR WKH SURFHHGLQJ 77< XVHUV PD\ FDOO YLD )ORULGD 5HOD\ 6HUYLFH QR ODWHU WKDQ ¿YH EXVLQHVV GD\V SULRU WR the proceeding.

“We know of no other issues to be raised,” said Cathy Swanson-Rivenbark, Gables city manager. After many discussions with General Growth Properties and Landmark Theatres, “The Coral Gables Art Cinema feels it can exist in harmony with the proposed new theater,” Mr. Krams told the commission. “The tenant will not cause the cinema to be excluded from accessing any film title it wishes from the various film distributors. This is known as clearance. This was always at the heart of our concerns, and our main objections no longer exist.” Not only have General Growth Properties and Landmark Theatres agreed not to compete for

NOTICE TO THE PUBLIC CITY OF MIAMI, FLORIDA PLEASE ALL TAKE NOTICE THAT a special meeting of the City of Miami Commission has been scheduled for Wednesday, July 13, 2016, at the City of Miami City Hall, 3500 Pan American Drive, Miami, Florida 33133. A private attorney-client session will be conducted under the parameters of §286.011(8), F.S. The person chairing the City of Miami Commission meeting will announce the commencement of an attorney-client session, closed to the public, for purposes of discussing the pending litigation case of: Securities and Exchange Commission v. City of Miami, Florida and Michael Boudreaux, Case No. 13-CV-22600, pending in the United States District Court for the Southern District of Florida, to which the City is presently a party. This private meeting will begin at approximately 11:00 a.m. (or as soon thereafter as the Commissioners’ schedules permit) and conclude approximately one hour later. The session will be attended by the members of the City Commission: Chairman Keon Hardemon, Vice-Chairman Ken Russell, and Commissioners Wifredo “Willy” Gort, Frank Carollo, and Francis Suarez; the City Manager, Daniel J. Alfonso; the City Attorney, Victoria Méndez; Deputy City Attorneys John A. Greco and Barnaby L. Min; Division Chief for General Litigation Christopher A. Green; Senior Assistant City Attorneys Henry J. Hunnefeld and Robin Jones Jackson; Thomas Scott, Esq.; and Scott Cole, Esq. A cerWL¿HG FRXUW UHSRUWHU ZLOO EH SUHVHQW WR HQVXUH WKDW WKH VHVVLRQ LV fully transcribed and the transcript will be made public upon the conclusion of the above-cited, ongoing litigation. At the conclusion of the attorney-client session, the Commission meeting will be reopened and the person chairing the Commission meeting will announce the termination of the attorney-client session.

Todd B. Hannon City Clerk # 22821

access to films, but General Growth has offered space for advertising for the art cinema in the mall and on its website, and the partners have agreed to donate $50,000 to help with programming for the arts cinema. “Our expectation is that this relationship will grow in the future,” Mr. Krams said. He thanked John Charters, General Growth Properties executive vice president, and Michael Fadden, who he identified as executive vice president of Landmark Theatres, “for their genuine desire to resolve all these issues,” as well as Mr. Leen and Ms. SwansonRivenbark for “providing a framework to integrate this agreement” into the deal. “It’s taken a lot of meetings and a lot time to figure this thing out,” Mr. Charters said. “We appreciate the partnership we feel we have with the city, even separate from this issue. You’ve always been very supportive. We’ve had issues to work through, but, at the end of the day, we all seem to get there.”

Todd B. Hannon City Clerk #22826


WEEK OF THURSDAY, JULY 7, 2016

TODAY’S NEWS

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PortMiami cruise passenger loads fall 6.2%, bond rating firm reports

Photo by Maxine Usdan

PortMiami has long billed itself as the “cruise capital of the world.”

Royal Caribbean seeks to alter port lease, raise guarantee $100 million Royal Caribbean Cruises would guarantee Miami-Dade County more than $140 million in dockage fees for its present cruise terminal at PortMiami for the next ten years – more than $100 million above the present guarantee for that period – in a contract amendment before county commissioners this week. The amendment, which did not get the normal county committee review, is distinct from an agreement also before the commission this week for the cruise line to build and operate a 10-acre cruise ship terminal elsewhere on the port. The existing agreement for the present terminal space dedicated to Royal Caribbean, Terminal G, was to expire Sept. 30, 2021. The amendment before commissioners now would extend an agreement to Sept. 30, 2026. During that period, the cruise line would pay the county from $10.5 million in fiscal 2016 to $14.8 million in fiscal 2016. That payment guarantee, says a memo to commissioners prepared by Deputy Mayor Jack Osterholt, “is equivalent to a minimum passenger guarantee of 600,000 passenger moves through Terminal G each fiscal year,” up from the current 325,000 guarantee. Because each passenger normally departs and returns to PortMiami, 600,000 passenger moves equates to 300,000 passengers. The amendment would provide for one five-year renewal period starting in 2026, based on mutual agreement. The county would be guaranteed $100 million from Royal Caribbean over that five-year renewal period, based on an annual guarantee of 750,000 passenger moves. In the amendment, the cruise line would be paid two separate incentives: A parking incentive, unchanged from the current deal between the county and the cruise line. That payment is based on the cruise line’s share of paid parking at the seaport and would amount to about $1.6 million a year payment to the line now and about $2 million a year if the option of a renewal after 2026 is exercised. A marketing incentive based on passenger thresholds. Carnival Corp., the port’s largest tenant, already receives such an incentive, but Royal Caribbean

has not gotten one. Under the amendment before commissioners, incentives would start Oct. 1, 2017, ranging between $292,000 and $370,000 per year, based on passenger moves. Marketing incentives would rise markedly to $622,000 to $700,000 per year in a renewed contract in 2026 based on a 750,000-moves guarantee. The two incentives mean that the county would pay Royal Caribbean almost $2 million a year while the line is paying the county $10.5 million to use the terminal. The marketing incentives are to be used by Royal Caribbean to offset its commitment of $1 million annually toward a marketing campaign to increase tourism for ships berthed at the port. Royal Caribbean Cruises Ltd. is the world’s second-largest cruise brand. Like the larger Carnival Corp., Royal Caribbean is headquartered in Miami. But it has berthed its largest ships at Port Everglades, not PortMiami, because Miami’s seaport could not accommodate their size. The construction by the line of its own terminal, Terminal A, would bring those ships to Miami too. The line does homeport vessels of three of its brands at PortMiami: Royal Caribbean International, Celebrity Cruises and Amazara Club Cruises. This month, Enchantment of the Seas and Empress of the Seas are to sail from PortMiami. Those same two ships are to sail from the port in August and September as well, and will be joined by Grandeur of the Seas on Oct. 26. By November, the company will have six cruise ships sailing from the port as the winter season cruise traffic builds. The new 170,000-square-foot terminal that would be part of a separate contract coming before county commissioners this week would be home port to a 5,400passenger Oasis-class ship, the world’s largest, and other Royal Caribbean vessels. Royal Caribbean has 46 total ships in its fleet and 10 under order, Mr. Osterholt’s memo told commissioners. The line has been at PortMiami more than 45 years. It now accounts for about 15% of the port’s traffic and is anticipated to account for more than 30% when the new terminal enters service.

PortMiami cruise passenger volume, which dipped a half percentage point in 2015, was down 6.2% for this fiscal year through March, according to a bond rating report issued last week by Fitch Ratings. Despite Miami Today requests, port officials have not been available in recent weeks to detail passenger or financial figures. But county Office of Management and Budget data show that through February, the port was ahead of its budgeted passenger totals, with 2,529,190 combined boardings and departures through the first five months of the fiscal year. Fitch, which is hired by the county to rate its bonds, says a decrease of passenger traffic of about 1% was budgeted at PortMiami this fiscal year. The drop far larger than the expected 1%, Fitch says, “was driven by a decline in Resort World Bimini SuperFast Ferry (Bimini) passengers.” The casino ferry service, Fitch wrote, “has been suspended until the company purchases a new ferry ship. Service is expected to resume in fiscal 2017.” The Bimini casino ferry service by the Malaysia-owned Genting subsidiary had earlier said it would have a new ship in spring but

would not offer overnight trips. The trips had begun from PortMiami in mid-2013 as day trips, then went to overnight service and then to two-day trips three days a week. But the suspension of the Resort World service, while reducing PortMiami traffic, has not had major impact on the seaport’s revenue, Fitch wrote, because the company continues to pay minimum annual guaranteed revenues to the port. Such contractual guarantees “continue to provide a solid anchor to performance at the port,” Fitch wrote, “with fiscal 2015’s guarantees of $101 million equaling roughly 74% of the year’s operating revenues.” The same is true of guaranteed cargo revenues from the three major terminal operator tenants, Seaboard Marine, South Florida Container Terminal/Terminal Link and the Port of Miami Terminal Operating Company. Total cargo minimum annual guarantees were $47 million for fiscal 2015 and are to rise steadily to $58 million by 2020, Fitch says. Fitch affirmed the port’s A rating on the county’s $577 million in outstanding seaport revenue bonds, which are secured by the port’s revenues. Fitch said that

the rating reflected the port’s minimum annual guaranteed revenue plus the port’s “leading market position evidenced by its ranking as the third largest cruise port in the world and among the largest ports in the state of Florida in terms of cargo volume.” But the port’s strengths, Fitch wrote, “are moderated by the port’s higher than average leverage compared to peers and the potential for sizable future borrowings.” Fitch noted that the port completed a $1 billion capital improvement plan in 2015, focused on deeper dredging to allow the larger post-Panamax ships from the newly opened Panama Canal to access the port. The port’s capital improvement program through fiscal 2020, Fitch wrote, is budgeted at $394.7 million. The port’s operating revenues increased 7.9% in the past fiscal year, the third consecutive year of growth, which Fitch attributed to tariff and contract rate increases for cruise ships and more cargo activity. Container volume, up 14.9% last fiscal year, hit 1 million 20-foot container equivalent units for the first time since fiscal 2005. Container volume this year, Fitch said, is up 6% through March.

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 THURSDAY, JULY 14, 2016, 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 “RIVER LANDING”, 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 ALONG THE SOUTHWESTERLY SIDE OF NW NORTH RIVER DRIVE, AT NW 13 TERRACE. 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 305-416-1232. The Miami City Commission requests all interested parties be present or represented at the meeting and may be heard with respect to any proposition before the City Commission in which the City Commission may take action. Should any person desire to appeal any decision of the City Commission with respect to any matter to be 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 DFFRPPRGDWLRQV WR SDUWLFLSDWH LQ WKLV SURFHHGLQJ PD\ FRQWDFW WKH 2I¿FH RI WKH &LW\ &OHUN DW 9RLFH QR ODWHU WKDQ ¿YH EXVLQHVV GD\V SULRU WR WKH SURFHHGLQJ 77< XVHUV PD\ FDOO YLD )ORULGD 5HOD\ 6HUYLFH QR ODWHU WKDQ ¿YH EXVLQHVV GD\V SULRU WR the proceeding.

Todd B. Hannon City Clerk # 22823


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MIAMI TODAY

WEEK OF THURSDAY, JULY 7, 2016

Advisory board tells city to throw out marina proposals BY JOHN CHARLES ROBBINS

Start from scratch. That’s the advice to Miami city commissioners from the new Virginia Key Advisory Board, to throw out all pending proposals for marinas on Virginia Key and start again from square one. The advisory board is wasting no time diving into deep waters and taking action on major issues. On June 29, at only its third meeting, the board voted to recommend the city throw out all proposals for marinas on the barrier island, request new proposals and require that all proposals conform to the official Virginia Key Master Plan adopted by city commissioners July 22, 2010. The resolution passed. Steve Kneapler and Esther Alonso voted ‘no,’ and Spencer Crowley III abstained. The city owns most of the barrier island, connected to the mainland and Key Biscayne by the Rickenbacker Causeway, including Miami Marine Stadium. The marina that fills the smaller basin northwest of the abandoned stadium is operated under an old lease. More than a year ago, the city began looking for a new operator. On June 15, 2015, the Department of Real Estate and Asset Management requested proposals for an integrated package to “plan, redesign, renovate or redevelop, lease, manage and operate a mixed-use waterfront facility including, but not limited to, two marinas, a boatyard, dock master’s office, ship’s store, dry storage, wetslip docks, and at least one restaurant.” The request went through several addenda, including one

An image from a Miami Planning Department presentation to the trust that discussed flex park plans.

that called for adding 300 wet slips and the possibility of locating some of those slips in the big basin fronting the stadium. Three companies submitted proposals. After evaluation by a selection committee, Virginia Key LLC, also known as RCI Group, was chosen. The second- and third-place bidders filed protests but the city commission rejected them. RCI Group’s $100 million redevelopment plan includes a large dry-storage building with an automated system to retrieve boats, a new layout for docks in the smaller basin, a two-story building for restaurant uses, a public baywalk and more. At its meeting May 24, the advisory board discussed calling on the city to toss out all marina proposals and start the process again. Instead, it passed a resolution requesting the city commission not allow additional wet slips in the big basin. From the outset, members of

the advisory board haven’t been shy about expressing frustration and concerns about what’s taken place on the island since the 2010 master plan was adopted. Some board members have railed against administrative staff about inconsistent master plan documents, and about changes to the island in recent years, including inviting the Miami International Boat Show to host its annual event on the land and water surrounding the idled stadium. At the June 29 meeting, City Manager Daniel Alfonso asked the advisory board to listen to a presentation from the winning proposer for marina operations. An architect with Arquitectonica represented the RCI Group and presented a slide show on the plan. The proposal would have parking spaces in the lower levels of the main structure, with storage of boats above. The site

plan calls for four pedestrian access points near the planned marina. The RCI proposal also includes grand stairs overlooking Biscayne Bay and a viable public baywalk with continuous shade, the representative said. Board members questioned RCI about plans for wet slips in the main basin. Carter N. McDowell, an attorney representing RCI, said the developer had designs that included some wet slips in the basin but had alternative plans without slips in the basin, taking the basin’s historic designation into consideration. One plan showed 151 wet slips in the basin, said Mr. McDowell, but the removal of those proposed slips would not impact the overall development proposal from RCI. Mr. McDowell said he was aware that city commissioners have decided they don’t want any slips in the basin, and he

said RCI understands and would comply with those wishes. Advisory board member Lynn B. Lewis asked him if RCI would promise in writing that it wouldn’t pursue the 151 wet slips in the basin. “We’ve said we’d not put them in,” said Mr. McDowell, pointing out that no lease has been negotiated. “We don’t have a lease yet,” he said. Ms. Lewis pushed the point, asking again if a promise would be made. “Yes, we’re happy to not put the slips there,” Mr. McDowell said. It didn’t seem to matter when the advisory board later voted to have the commission toss out the entire request for proposals. Board member Vinson Richter wanted the record to be clear: the board had played no role in the request for proposals. “There’s no way we vetted it, accept it or endorse it,” said Mr. Richter. “We’ve seen a nice presentation. That should be it.” The resolution recommending the commission throw out all proposals and request new proposals consistent with the official Virginia Key Master Plan included the note that the advisory board did not favor any of the current bidders. The city commission has scheduled a special meeting for 9 a.m. July 20 to decide the fate of the current request for proposals. The city commission established the advisory board in January. It is to advise the commission on the mission, vision, business plan, governance and operation of the island and basin, the implementation of the Virginia Key 2010 Master Plan and the restoration of the stadium.

City to look for space design of what was to be a flex park BY JOHN CHARLES ROBBINS

City of Miami officials are promising the newly established Virginia Key Advisory Board that it will play a major role in the continuing evolution of the barrier island. Members of the city’s planning department made a presentation June 29 to the board about the so-called flex park surrounding idled Miami Marine Stadium. “We’re just beginning to dissect this,” said David Snow, a planner, referring to uses of the city-owned flex park. “We’ll get an RFQ (Request for Quotations) going as the next step, and we will engage this board every step of the way,” he said. The RFQ would be an invitation to “get a design for that space,” said Mr. Snow. Advisory board members have been critical of work done on the land adjacent to the waterfront stadium, in particular that the area has been paved over for use as a base for massive tents to accommodate the Miami International Boat Show. Potential future uses at the flex park have caused argument among city commissioners and led to litigation

with Key Biscayne. In a June 29 presentation titled “Miami Marine Flex-Park, An Arena of Opportunity,” the planning department listed three short-term priorities: Accessibility, activation and experience. There is a need for unrestricted access to a waterfront that is currently underutilized, the presentation said. The flex park “will provide a nexus of opportunity to activate a large waterfront space within the region’s urban area,” it said. Activities and uses could include: waterfront yoga, fitness programs, stand up paddleboards and kayaking, dragon boats, skateboarding, rock climbing, popup spaces, parklets, food trucks, performance spaces and outdoor art spaces. Kevin Kirwin, parks director, is an exofficio member of the new board. He said the department is excited about all of the “cool ideas we’re tossing around to activate that space, and use the entire space.” City planning and park officials are looking at short-term programming and long-term planning for city-owned property on the island, he said. Mr. Kirwin said they will propose $200,000 in the 2016-2017 budget for

Virginia Key drawings the public saw showed soccer fields beside Marine Stadium.

planning for the flex space, part of a $2 million request for improvements island-wide. Board member Gary Milano asked, if the city is going back to the drawing board on plans for using the flex space, is it possible some of the pavement could be removed? Mr. Snow said the planning department would work with a designer on “what stays and what goes.” “Wonderful,” responded Mr. Milano. Board Chairman Gregory Bush asked that the city consider something substantial for the site. “It could be an amazingly attractive space,” he said. “I don’t want to disparage your ideas, but we should do something stunning, all enduring.”

Mr. Snow responded, “We agree. This is one of the city’s best opportunities for public open space.” City Manager Daniel Alfonso said if the city intends to restore and use the stadium, those patrons will need a place to park. Board member Robert Vernon said a key point to stress to any designers working on a long-term plan for the flex space is that it needs to be “green in concept.” “Now it’s all asphalt. It doesn’t need to be all pavement,” he said, noting plans for parking elsewhere on the island and bringing flex space users and stadium patrons by trolley to the site, and the possibility of building an adjacent parking garage.


HEALTH UPDATE

WEEK OF THURSDAY, JULY 7, 2016

MIAMI TODAY

17

Key factors combine to bring stability to healthcare costs B Y C ATHERINE L ACKNER

A variety of factors has helped keep healthcare costs steady, observers say. “Growth in healthcare spending has remained relatively stable in the United States, Florida and South Florida,” said Karoline Mortensen, an associate professor at the University of Miami’s Department of Health Sector Management & Policy. “Healthcare spending comprises the largest component of the state budget,” she explained. “The combination of effects from the Great Recession and the Affordable Care Act (ACA) has slowed growth in Medicare spending from the levels projected by the Congressional Budget Office.

“Florida’s move to mandatory managed care for Medicaid enrollees has resulted in modest growth and predictability in Medicaid spending, but the participating insurance companies have pressed for higher reimbursements,” Dr. Mortensen said. “More than 1.5 million people in Florida have purchased individual insurance coverage on the Healthcare Exchanges, the highest enrollment of any state. The premiums for these enrollees are subsidized for the vast majority of enrollees, and the premiums for this coverage decreased by double digits for the average ‘silver’ plan in Florida in 2016,” she said. ACA plans are separated into four categories – bronze, silver, gold and

platinum – based on the percentage the plan pays of the member’s average overall healthcare costs. The percentages the plans will spend are 60% (bronze), 70% (silver), 80% (gold) and 90% (platinum), according to the ACA website. “We have seen statewide medical cost trends going up slightly this year, but they are still at low levels relative to the past five or 10 years,” said Toni Woods, spokesperson for Florida Blue. “We do not necessarily see any significant variations on a regional basis relative to our overall trend.” Controlling pharmacy costs is often cited as a key to keeping healthcare costs low. Some insurers have instituted a “step” regimen that requires

patients to try a cost-effective “first choice” medication before a costlier “second choice” medication is approved for coverage. “Florida Blue currently uses step therapy to allow patients to try equally effective and usually less expensive drugs before ‘stepping up’ to more expensive and potentially less efficacious drugs (sometimes name brands) that can cost individuals, employers and employees more money and impact the price of insurance and out-ofpocket costs,” Ms. Woods said. “Doctors always retain their ability to prescribe a different drug if they deem it a better treatment. Florida Blue seeks to provide the best care for patients at an affordable cost.”

Audit shows profit at Jackson, 53 days of cash on hand BY SUSAN D ANSEYAR

For the fourth year in a row, Jackson Health Trust operated at a profit for fiscal 2014-2015, ending with a working capital surplus of about $81.9 million and 53 days cash on hand, according to an audit completed by independent auditors KPMG. Mark Knight, chief financial officer for Miami-Dade’s public hospital network, said the audit shows Jackson Health Trust in an overall strong financial position, with a total of $64 million in hospital operations on the bottom line. As of Sept. 30, 2015, total assets increased by about $87.9 million, the audit states. This increase is primarily due to an increase in capital assets of $72.6 million, as a result of increased capital expenditures funded by the Miracle Building General Obligation Bond program, which included the land purchased for the construction of Jackson West. Current assets increased by $16.2 million, the audit states, mainly related to an increase in inventories of $3.4 million and an increase in prepaid expenses of $3 million. Additionally, unrestricted

cash increased $53.9 million, offset by estimated third-party receivables, which decreased $50.4 million. The 53 days’ unrestricted cash on hand Sept. 30, 2015, is compared with 41 days Sept. 30, 2014. Days net in accounts receivable at Sept. 30, 2015, and Sept. 30, 2014, were 40 and 42, respectively. The audit reported total liabilities increased about $95.6 million; current liabilities decreased about $45.6 million, primarily because of a decrease of $33.9 million in estimated payables due to third-party payers. The decrease in third-party payers liability was primarily due to a decrease in the last quarter in low-income pool payables, the audit reports. Long-term debt fell about $13.3 million, because of the refinancing of the 2005 and 2015A bond issues. Net patient revenue was about $931 million, up $80.9 million or 10% from the prior fiscal year, the audit reports. The trust’s adjusted admissions for the current fiscal year were at 79,644 – 9.8% more adjusted admissions than the prior year.

Photo by Maxine Usdan

An $88 million asset increase was due primarily to increased capital expenditures funded by bonding.

Garage opening ends first phase of Mount Sinai expansion BY CATHERINE LACKNER

A750-space garage, the first phase of an ambitious $270 million expansion at Mount Sinai Medical Center in Miami Beach, is complete and employees will begin parking there this week, said Joanna Palmer, Mount Sinai spokesperson. The next phase, the groundbreaking for the surgical tower – which will double the number of surgeries Mount Sinai can perform from the current 13,000 per year – will be held later this month or in early August, she said. The seven-story tower will hold 154 private rooms, each overlooking Biscayne Bay, and12 new operating rooms. “Mount Sinai is very much a surgical destination,” said Steven Sonenreich, medical center president and CEO, when the project was announced. “More than 70% of our patients

come from an area outside of Miami Beach.” Groundbreaking for the new emergency department – which will be able to accommodate up to 100,000 visits a year – will follow in the fall, and both facilities are expected to be completed by the summer of 2018, Ms. Palmer said. The new structure will house the City of Miami Beach’s Emergency Management Department, which will have a command center there for weather emergencies and other crises, as well as a 40,000square-foot emergency treatment space with more than 50 individual rooms. The current emergency department opened in 1972 to accommodate 25,000 visits per year but continues to see more than 50,000 visits annually. In total, the expansion will increase the hospital’s campus by 350,000 square feet. About

‘More than 70% of our patients come from an area outside of Miami Beach.’ Steven Sonenreich $110 million was funded through bond issues, and the remainder will be funded by the hospital’s operations and the Mount Sinai Medical Center

Foundation, the hospital’s fundraising arm. “While the garage was being built, we’ve been doing some enabling projects,” Ms. Palmer said, which included relocating the Mount Sinai’s Wien Center for Alzheimer’s Disease & Memory Disorders, which had occupied the land slated for the surgical center. “We have moved some MRI and CAT scan suites to clear the way for the groundbreaking,” Ms. Palmer said. “But it has been business as usual throughout, so as not to impact the needs of patients.” Fitch Ratings last week issued a BBB+ rating on Mount Sinai’s bonds and rated the institution’s outlook stable. Fitch in its report said the medical center as of March 31 had $321.3 million in unrestricted cash and investments, including $49.6 million of investments that are not restricted

at the foundation. That equated to 221.5 days of cash on hand, well above the median of 162 days for other BBB-rated bonding entities, Fitch noted. Fundraising continues to be steady, with $16.1 million raised last year, Fitch said. “Fitch believes that the foundation will meet its fundraising goal of $50 million, which will be combined with a $45 million equity contribution from the foundation.” Fitch noted that the medical center’s service area is heavily weighted toward governmental payors, 65% Medicare and Medicaid gross payors, “which challenges profitability.” Still, it noted that the center generated $20.8 million operating income in fiscal 2015, “reflecting strong volumes and good expense control.” The operating margin was 7.3% in the first quarter of this fiscal year, Fitch said.


24

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WEEK OF THURSDAY, JULY 7, 2016

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