Miami Today: Week of Thursday, August 20, 2015

WEEK OF THURSDAY, AUGUST 20, 2015

A Singular Voice in an Evolving City

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Mediterranean Village drawings readied for a Gables OK, pg. 15 GARAGE DEVELOPMENTS: Coral Gables received five responses by Friday’s deadline for preliminary concepts of private development on the sites of two city-owned central business district garages. The site of Garage 1, at 245 Andalusia Ave., has 34,941 square feet, and Garage 4, at 2450 Salzedo St., has 55,000 square feet. Zoning would allow up to 315,000 square feet of private development for mixed use and 1,000 public parking spaces (122,294 square feet at Garage 1, 192,000 at Garage 4), with potential to transfer development rights between the two. City staff and officials are under a cone of silence about the proposals, which were to include qualifications along with preliminary concept development. In June, officials said short-listed proposers would be invited to submit more detailed secondstage proposals.

Multi-family residential buyers’ demand exceeds supply, pg. 16

THE ACHIEVER

ISRAELI ENTREPRENEURSHIP PACT: Miami Dade College and Tel Aviv University are to sign an agreement this week to promote cooperation between entrepreneurs in Miami and Israel. The agreement is to initially bring Israeli start-up leaders, tech gurus and professors to Miami to share their experience and build relationships with local entrepreneurs.

Oren Simanian, founder of StarTau, Tel Aviv University’s entrepreneurship center, is to represent his university at the signing ceremony and lead a seminar on entrepreneurship tonight (8/20) at Miami Dade’s Wolfson Campus. The ceremony was originally scheduled for June 25, but a US State Department computer glitch created delays for thousands of travelers, including the Israeli delegation, trying to enter the country.

ECONOMIC DEVELOPMENT UPDATE: Mayor Carlos Gimenez is to report on the negotiation process for projects in line to share in $75 million in Economic Development funds to county commissioners at their next full meeting Sept. 1. Commissioners previously set a six-month deadline for projects to reach a deal with the county on thresholds developers are to meet, essentially bringing jobs and economic development to Miami-Dade. Should agreements for any projects not have been reached yet, tax funds for them are to be reallocated to others.

GAS FALLS HERE, RISES THERE: Gas prices in Miami fell 2.5 cents a gallon in the week ended Sunday to $2.55 per gallon, 88.8 cents a gallon lower than a year ago and 18.2 cents lower than a month ago. Nationally, AAA said, prices are the lowest since the Great Recession as the price of oil fell to its lowest since March 3, 2009. But in the Midwest, gas prices spiked sharply, up by more than 50 cents a gallon in days.

Photo by Marlene Quaroni

Donna Abood

Chairing Beacon Council drive to lure new business The profile is on Page 4

No get-rich-quick Brazil business, feds caution

BY CARLA VIANNA

Those looking to do business with Brazil were told the process may take longer than expected in a Greater Miami Chamber of Commerce Americas Linkage committee meeting last week.

“Anyone that’s wanting to go to Brazil and make money quickly: I want you to stop and think more toward the long-term,” said Maria Cameron, Brazil senior desk officer for the International Trade Administration in the US Department of Commerce. “Be committed to spending a lot of time to get business done in Brazil.”

Attending were executives interested in joining the chamber trade mission leaving Oct. 24 to three Brazilian cities. By show of hands, many have done business in Brazil.

“Brazil has a growing middle class with a real hunger for US goods and services,” Ms. Cameron told them.

Trade between the countries hit almost $73 billion last year, according to the Department of Commerce. Brazil, which has the world’s seventh-largest economy, is the US’s ninth-largest trading partner.

Last year, the US was the second-largest

AGENDA

exporter to Brazil behind China, accounting for 15% of Brazil’s imports.

Stanley Rigaud, Beacon Council international economic development manager, said Brazilian companies coming to South Florida say the influx of Chinese exports is “killing their ability to sell there.”

Alex Rey, executive VP of Merrick Capital Partners, said US banking regulations make it hard for local banks to do business with Brazilians.

With five offices in Brazil, the International Trade Administration’s goal is to increase trade and investment between the two countries by helping professionals at both ends, Ms. Cameron said.

After Edward Snowden’s disclosures of global surveillance, relations between the US and Brazil worsened, she said, but they have recently improved due to visits by both countries’ officials.

“The first thing you need to do is get down to Brazil,” Ms. Cameron said.

A heavy tax burden and complex regulatory system, coupled with a teetering economy, requires US businesses to spend time learning the ins and outs of Brazil’s business environment.

“Doing business in Brazil is challenging,” Ms. Cameron said. “You can’t go down without your eyes wide open and [without] being prepared. The tax system is a nightmare. The legal system is a headache.”

US businesses were advised to establish a local presence, consult legal and tax advisors, and work with trusted customs brokers and freight-forwarders.

During the annual US-Brazil CEO Forum, 24 CEOs from both nations recommended issues the International Trade Administration should tackle. This year they asked to focus on infrastructure.

Another priority was to speed up trade.

“Our goal is just to make it easier for you to make it through customs with your goods,” Ms. Cameron said.

Other goals include aligning US and Brazilian standards, improving regulatory coherence and expanding investment opportunities.

The mission is a great first step, Ms. Cameron told the meeting.

“Our purpose is to understand,” Hernando Gomez, Americas Linkage chair, told those interested in expanding opportunities abroad and attracting businesses to Miami.

Frenk vows to roadmap UM’s future New University of Miami President Julio Frenk says he plans to create a roadmap for the university’s future that will begin with a listening project in his first 100 days in office.

The former dean of public health at Harvard who earlier was Mexico’s minister of health took office Sunday, replacing Donna Shalala in becoming the university’s sixth president.

In a message to the university community, he announced a Sept. 10 Town Hall meeting at which “we will define a structured process to collect, collate, and synthesize the suggestions from all members of our community.”

His open letter linked to details of the meeting, which say it “is open only to UM students, faculty, staff, alumni, and friends. Tickets are required and are available on a first-come, first-served basis.”

Tickets for all groups other than students must come through the university’s BankUnited Center online system, and “you must set up an account to get a ticket,” the university stated.

It is unclear whether Dr. Frenk will make earlier appearances before large groups.

“I arrive with fresh ideas, shared aspirations, and boundless excitement to join the past and current members of the U community in a common journey,” he wrote.

“As the university enters its tenth decade,” he continued, “I believe this is a perfect opportunity to look back to where we have been, to make a close assessment of where we are today, and to use these vantage points to define a roadmap toward our second century.”

His message said that the Sept.

10 session will be his “first Town Hall meeting.” He did not list dates of future meetings.

“I feel a bit like a freshman myself,” the 61-year-old president wrote, “unpacking boxes and anticipating what the years ahead will hold for all of us who will call this remarkable institution our home.”

KEY TENNIS TOURNAMENT SEEKING MORE STADIUMS ...

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MEGA-YACHT MARINA STARTS SALES AS OKS SOUGHT ...

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LATE-NIGHT DOWNTOWN RAIL MIGHT SERVE THE CITY ...

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TAKE YOUR BREAK AT A HOTEL, HOTEL STAFFS TOLD ...

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VIEWPOINT: MAZE CONGESTS STEPS TO ADD MOBILITY ...

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SCIENCE MUSEUM CLOSURE A PRELUDE TO NEW HOME ...

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, AUGUST 20, 2015

THE INSIDER CHAMPIONING BUSINESS: The Emerging Leadership Council of the Miami Beach Chamber of Commerce will host the ninth annual “Champions of Business” panel at 11:30 a.m. Aug. 28 at the St. Regis Bal Harbour Resort, 9703 Collins Ave. Panelists include Billy Corben, documentary film director; Jessica Goldman, CEO of Goldman Properties; Ralph Pagano, chef and television personality; and Rene Ruiz, fashion designer. Moderator is Eddie Dominguez, senior vice president and director of Jessica Goldman marketing, communications and community relations at City Bank. Details: (305) 674-1300.

SUBMERGED LANDS: In August 2014, Miami voters approved a charter amendment requiring that methods be adopted by ordinance to administer leases or management agreements for any city-owned submerged lands. City commissioners have granted preliminary approval of an ordinance amendment spelling out those new rules. The charter amendment allows the city to enter into leases or management agreements for any city-owned submerged lands “with entities having a Adam Barrett says the tournament site must make vital changes in four to nine years in order to remain. possessory or ownership interest in the abutting riparian uplands for building marinas, docks, or like facilities, using methods adopted by ordinance on the condition that such leases or management agreements result in a return to the city of at least fair market value.” A second and final reading of the ordinance is expected soon after the city commission’s August break.

IT FOR BAPTIST HEALTH: Cerner, a health care technology firm, was selected by Baptist Health South Florida to implement its electronic health record system across all of Baptist’s hospitals, physician offices and outpatient locations. According to a release, Cerner’s system will enhance the revenue cycle management solutions program it already provides for Baptist Health, giving the organization an integrated health information technology system. “...it is essential that we have industry-leading health IT solutions to manage care,” said Ralph Lawson, executive vice president and Ralph Lawson chief financial officer, Baptist Health South Florida. The system “will propel Baptist Health toward our goal of improving care coordination and reducing the cost of care.”

EYES SET ON HONDURAS: Enterprise Florida, the state’s economic development organization, is leading an export sales mission to Honduras from Dec. 1-3. Exports from Florida to Honduras increased 7.7% over last year. Ranked as Florida’s ninth top merchandise trading partner, Honduras provides the state’s exporters with a wide range of opportunities for US goods and services, according to Enterprise Florida. Target industries in the Central American country include safety and security equipment, hotel and restaurant equipment, and clinical equipment, among others. In fiscal 2014-2015, Enterprise Florida hosted 29 international trade shows and missions. Details: Stephanie Pavolini at spavolini@enterpriseflorida.com or Jorge Riano at jriano@enterpriseflorida.com.

SAFE IN TIANJIN BLAST: Florida International University students enrolled in the university’s Hospitality & Tourism Management program at Tianjin University of Commerce in China were unaffected by the explosion at Tianjin’s port, said Mike Hampton, dean of FIU’s Chaplin School of Hospitality and Tourism Management. “The campus is about an hour west of where the port is,” Dr. Hampton told Miami Today. “It hasn’t had any impact on any of our team [members] or campus.” Classes begin Aug. 24, he said, so FIU students weren’t on campus at the time of the explo- Mike Hampton sion, which occurred the night of Aug. 12. Dr. Hampton said university staff reached out to students to see if they or family members were affected by the explosion, but according to responses given, none was.

HELPING ITS OWN BACKYARD: OneUnited Bank, one of the leading African-American owned banks in the US, announced a $1 million commitment to help families become first-time homeowners or refinance homes. The “Yes! In Our Backyard” project will target Liberty City residents in the bank’s “backyard,” which includes 79th Street corridor neighborhoods from Northwest 62nd to 95th streets and Northwest Seventh to 37th avenues. The year-long initiative beginning Sept. 1 will provide financial education on four topics, free office space for nonprofits and counseling agencies, access to the Waive Program and up to 10 first-mortgage home loans under the UNITY Home Loan Program to first-time homebuyers with household incomes at or below 80% of area median income or in census tracts at or below 80% of area median income.

LANDSCAPING COSTS: Miami commissioners have authorized City Manager Daniel Alfonso to amend an agreement with Kimley-Horn and Associates Inc., adding $250,000 to the deal “to fund anticipated new work orders for outstanding and foreseeable future design and construction administration services,” says the resolution. The amendment brings the contract total to $500,000. The original contract was for miscellaneous architectural services.

TOPPING OFF CELEBRATED: Rilea Group’s Daniel Alfonso The Bond on Brickell condominium has officially topped off construction at 44 stories. Slated for use in early 2016, the 328-unit luxury tower is on track to become the first residential building completed on Brickell Avenue since the recession. Located at 1080 Brickell Ave., the tower is nearly sold out with 97% of the units under contract. The development team of Rilea Group and MDR Toledo, along with Coastal Construction, celebrated with a topping-off party last week at the project site for hundreds of its construction workers.

CORRECTION: Jessica Keller is the Coral Gables assistant public works director.

Tennis tourney set on Key for now, but organizers seek more stadiums

BY SUSAN DANSEYAR

The Miami Open will take place March 21-April 3, 2016, and almost certainly in the same location for a few more seasons, despite ongoing litigation concerning control over Key Biscayne’s Crandon Park, where the tennis tournament has been held every year since 1987.

However, officials for tournament organizer International Players Championship Inc. (IPC) are not sanguine Adam Barrett the event can continue for the nine years remaining on its lease with the county. “For the short term, the event is here and it’s healthy,” said Adam Barrett, tournament director. “We’re looking to deliver the best product it can be.”

What concerns Mr. Barrett is how viable the Crandon Park location will be in three or four years when, he says, he believes standards will change.

“There’s growth in this industry and, in order to be a top-level event, you have to keep up facilities,” he told Miami Today this week. Mr. Barrett said tournament events of the Miami Open’s size have at least three or four stadiums and are working on supplying even more courts.

The tennis center at Crandon Park only has one stadium and Mr. Barrett said that will not be enough to keep the event going.

He said the stadium at Crandon Park was considered state-ofthe-art when it was built for the 1993 tournament but is no longer one of the top venues on the world tennis circuit.

“We will continue to do everything we can to maintain a firstclass, top-level event but, without adding new facilities at the park, we can’t maintain our status,” Mr. Barrett said. “In the next four to nine years, if we don’t make changes, we won’t have the standards for a top-level event.”

He maintains IPC cannot make any changes to the park property without receiving permission from Bruce Matheson, whose family donated the land for Crandon Park in the 1940s and does not want tournament use

expanded for more stadiums.

In fact, Mr. Barrett said he believes Mr. Matheson is virtually holding IPC hostage with what he claims is his insistence on determining the use of what really belongs to the public. He also questions decisions county government has made, along with its attorneys’ research, and proposes the Miami Open would not be in its current precarious situation had IPC received support from public servants.

“Mr. Matheson has no legitimate ownership interest in Crandon Park and his alleged right by ‘inheritance’ to determine the use of Crandon Park land is based upon a complexly woven set of lies,” he wrote in a May 5 letter to Mayor Carlos Gimenez. “Nevertheless, because of the county government’s failure to pay attention to detail, Mr. Matheson now controls almost everything that is allowed to happen in all 900 acres of the park: its two miles of Atlantic Ocean beach, its picnic areas and nature center, its 18-hole golf course, its marina, its environmental treasures and its tennis center.”

Mr. Barrett wrote the letter to Mr. Gimenez to request that he and commissioners “represent the will of the citizens of the county who have voiced their overwhelming support for the tennis center improvements and the long-term future of the tournament” and also that the mayor instruct the county attorney exactly how he wishes him to proceed in response to IPC’s February appeal, seeking to reverse Judge Marc Schumacher’s September ruling in favor of the Matheson family keeping the park as it is now.

Currently, Mr. Barrett said, both sides have filed their briefs and await a hearing date in the Third District Court of Appeals which he anticipates will be at some point this fall.

“I can’t believe the mayor believes 800 acres should be controlled by one person,” he said this week in reference to the letter he wrote in May. “I felt the mayor would want this park to be controlled by elected officials to do what’s in the best interest of the public.”

Miami-Dade County has a policy of not specifically commenting on the matter of pending

litigation, according to Michael Spring, special advisor to the mayor. “The county is proud of its stewardship of our outstanding parks department including our largest public park, Crandon Park,” he said in a written statement.

“We strive to Michael Spring balance the needs of all park users with the restrictions in place on the development and use of the Crandon Park. We continue to be very supportive of the Miami Open and are working cooperatively with the tournament to ensure the ongoing success of this major sports event.”

Mr. Barrett said 72% of voters stated in the November 2012 election they wanted improvements made to the Crandon Park tennis facility. In the past, he said, county attorneys missed vital information, most particularly that the Matheson family did not have any property interest in the land and should have no right to change the deed restriction.

Mr. Barrett also said he’s not even sure if IPC will have the choice to remain at Crandon Park should the county have to ask Mr. Matheson if the lease can be renewed when the nine years are up.

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

TODAY’S NEWS

WEEK OF THURSDAY, AUGUST 20, 2015

MIAMI TODAY

3

Late-night downtown rail operations might finally serve city

BY CATHERINE LACKNER

A crucial piece of the downtown transportation puzzle – late-night service on Metrorail and Metromover – might finally fall into place, says Javier Betancourt, deputy director of Miami’s Downtown Development Authority.

For some time, the authority has been trying to persuade Miami-Dade County Transit (MDT) to run the services later in the evening, Mr. Betancourt told a

meeting of the Greater Miami Chamber of Commerce’s New World Center Committee at the chamber’s goals-setting conference in June.

The idea was that people going to the Arsht Center, dining late, going to clubs, or attending sports events that might run overtime could leave their cars at home and not worry about being stranded, he explained then. Metromover stops running at midnight; Metrorail is shut down shortly thereafter.

“It is both Metromover and Metrorail we’re interested in, because they connect,” Mr. Betancourt said last week.

Metromover riders can get from the Arsht Center on the north to Brickell on the south, but beyond that they need to connect with the larger Metrorail system if they want to leave the area by rail, he said.

The county transit department has not been responsive so far, he said. “But MDT is undergoing a transition in leadership,” he said. Alice Bravo, former Mi-

ami deputy city manager, last month was named director of Miami-Dade Transit.

“Alice understands the 24-hour nature of downtown, and that might result in MDT’s becoming more responsive to our request,” Mr. Betancourt said. “Part of it is fiscal – we understand that the department has its constraints.

“And we know she has a lot of things to work on,” he said, “so we’re waiting until Alice gets acclimated. But then we’ll try again.”

New foreign trade zone hub on way, 35 likely in three years

BY SUSAN DANSEYAR

Port officials estimate Prologis, one of the world’s largest industrial property owners, should receive permission in the near future to create a foreign trade zone magnet hub in Northwest Miami-Dade County, adding to the growing number of sites PortMiami oversees since winning approval to create a foreign trade zone three years ago.

The magnet site that Prologis seeks would function within a far larger foreign trade zone that PortMiami operates, stretching from Southwest Eighth Street to the Broward County line, said Eric K. Olafson, manager of trade development and Foreign Trade Zone 281 at PortMiami.

He anticipates Prologis, which wants to operate 320,000 square feet as a magnet foreign trade zone in the Beacon Lakes Industrial Park that it owns and is building out, will hear about its application in less than 60 days.

Magnet operations, Mr. Olafson said, encompass a greater area than usage-driven sites, and aim to attract multiple operators rather than a single company.

“We have this alternative system to set up additional foreign trade zones,” Mr. Olafson said.

“In just three years, we’ll have

Photo by Maxine Usdan

Freight rail now links PortMiami with Northwest Dade, traversing an area where 35 trade hubs are due.

35, probably more than any county in the nation.”

Foreign Trade Zone 281 was established by county commissioners under the alternative site framework on Aug. 2, 2012.

The zone currently has a service area that includes the northern half of Miami-Dade and consists of 34 sites including three magnet sites: Site 1, 520 acres, Dante

B. Fascell Port of Miami. 1015 North America Way; Site 2, 423 acres with a sunset on Aug. 2, 2022, Flagler Logistics Hub, 6875 NW 58th St.; and Site 3, 419 acres, with a sunset on Aug. 2, 2017, Flagler Station, 10505 NW 112th Ave. The proposed Site 31 for Prologis is adjacent to the Miami Customs and Border Protection

port of entry.

The economic benefit of the sites to Miami is enormous, Mr. Olafson said. The federal government controls foreign trade zones, which are based near seaports and airports and allow merchandise to enter the US or be held without paying Customs duties or other ad valorem taxes, offering US businesses a level

playing field in competing with companies abroad.

With the growing number of foreign trade zones here, Mr. Olafson said, major retailers will use Miami for distribution to North American markets as well as in Latin America and the Caribbean.

“Miami-Dade has 280 million square feet of warehouse space and [the market] is still growing,” he said. “The more warehouses built here, the more merchandise will be coming.”

The benefits also complement air freight, Mr. Olafson said.

Merchandise coming through Miami International Airport can be put through a foreign trade zone.

“The dredge [to deepen the seaport], more foreign trade zones than anywhere in the nation – it’s all coming together to make Miami a global logistics hub,” he said. Moreover, Mr. Olfason said, PortMiami signed a memorandum of understanding in March with the Free Trade Zone Associations of Panama.

“The MOU states that PortMiami FTZ 281 and the Panamanian Free Trade Zone Associations will collaborate on promoting bilateral trades, expanding our trade zones and sharing best practices,” he said. “This agreement is the first of its kind.”

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, AUGUST 20, 2015

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

Maze of solutions congests efforts to enhance our mobility Escalating concern about getting around Miami in predictable time dominates serious news. As ever-larger construction involves more and more people, we belatedly find it’s time to plan for the impact of Michael Lewis that growth.

A few years ago local mobility was not center stage. Today, it overflows the stage. A review of Miami Today’s pages for the past six weeks finds articles touching on 49 distinct aspects of the mobility issue.

The fact that these articles derive from a broad range of groups shows both the spread of efforts to grope for solutions and their lack of coordination.

In the disconnected category are plans in both Coral Gables and Miami Beach to expand free local trolley lines. At the same time a University of Miami bus system goes off campus to other popular points.

Meanwhile, an exclusive Miami Today report showed that county bus ridership fell 8% in a year, with some blame placed on free trolleys that siphon riders from paid county routes. Broader bus tracking aims to rebuild that ridership as the county orders 64 new jumbo buses.

All the while, expressway buses are planned, Miami again looks to create a trolley line, and Miami Beach moves rapidly on its end of a Bay Link rail

Photo by Maxine Usdan

The Downtown Development Authority wants fewer lanes of traffic on this part of US 1.

system that would include a City of Miami line of some sort and would eventually join another link over one causeway or another.

As we plan new modes, some seek more one-way streets to speed traffic while others aim to narrow those same streets and make them two way to favor pedestrians instead of moving cars faster.

Miami Beach mobility planning puts pedestrians first and cars last, while Miami’s Downtown Development Authority seeks to narrow car use of the major north-south route, Biscayne Boulevard, which is US 1, to make it a walking street downtown.

At the same time, downtown plans a new pattern of street signs to help people navigate, suburban areas look to traffic circles and speed bumps to slow cars, everyone wants to get traffic lights in sync to move cars faster, and one county commissioner is pushing reversible lanes on roadways to shift with the direction that cars flow in rush hours.

Then there’s car use. Ride sharing is a major aim, development of housing clustered around Metrorail stations tar-

L ETTERS Money is available to run Tri-Rail to Dolphin Mall

gets those who might not have cars at all, and Miami Beach plans a web of charging stations for those who switch from gasoline to battery power.

Others strive to make highways more efficient. The 826-836 interchange to speed traffic, which has been in the works for years, is nearly done.

Wynwood businesses seek an expressway exit for connectivity.

Another set of answers targets rail traffic. Some county commissioners want to use CSX rail tracks for commuter rail, while funding has about come together for a Tri-Rail link to a new All Aboard Florida station downtown that will itself link all of South Florida with Orlando.

The big transit roadblock is funding.

Some seek to pay for it with a City of Miami trust fund, others seek tax increment districts in which businesses that benefit from nearby transit would fund rail construction and operations, and still others see tourists paying a sales tax to aid transit. More than 50 officials and citizens flew to Denver to see how that area has managed transit challenges.

Meanwhile, officials fend off criticism of higher expressway tolls to fund future

TO THE

isting Metromover, planned expansions and yearly operations and maintenance through the two community redevelopment agencies, Downtown Development Authority, WorldCenter Community Development District, All Aboard Florida special area plan and county impact fees.) If we cannot fund transit with six existing possible funding sources, then we are doomed everywhere else.

2. Ask the Florida Department of Transportation and the Metropolitan Planning Organization to place on fiveyear funding cycle and apply for a federal TIGER grant.

3. Shift Metromover’s share of the half-cent transit tax to Tri-Rail for the ongoing operations and maintenance costs of the Dolphin Mall route.

The money is out there. Our South Florida district of the Florida Department of Transportation has a yearly budget larger than some states. We have to decide as a community where this money goes: seaports, airports, rail, freight inter-logistics, transit, bicycle improvements, trails, intersection upgrades, maintenance, sidewalks, landscaping, message boards, cameras, etc.?

Alexander Adams

There is an immediate solution for Tri-Rail east-west Dolphin Mall service.

Recent news articles summarizing the cost of construction at approximately $112 million should be an easy sell to the Metropolitan Planning Organization / Florida Department of Transportation [FDOT] for the size of the project. (Consider that the MiamiDade Expressway Authority is spending over $1 billion on the east-west artery, Florida Department of Transportation/Turnpike is spending over $1 billion on express lanes.)

Tri Rail could be up and running in less than five years east-west to Dolphin Mall and north-south on the coastal route serving over 25 miles.

The key is always money. One idea for the Tri-Rail east-west plan: the operations and maintenance for the new east-west route are estimated around $78 million per year by the Metropolitan Planning Organization’s study and this happens to be approximately the current cost of Metromover services in downtown Miami that are paid for by the transit tax.

1. Transferring the Metromover entirely to the City of Miami transportation department will save Miami-Dade Transit $78 million a year. (The city/ county has six existing funding sources Our motto is pretty lame. May I sugdowntown that could pay for the ex- gest “Where the sun shines best”? The

Replace lame motto with ‘Where sun shines best’

transit. We want more ways to get around, but we resent paying for them.

Because all of these steps together wouldn’t clear every hurdle to MiamiDade mobility, officials also seek services nearer neighborhoods so that residents don’t have to travel, including a $10 million county government hub in West Dade. Another target is the socalled last mile, the link from a home to mass transit.

And as we try to pry drivers out of the flood of cars that increasingly clogs our roadways, falling gas prices are likely to remain the lowest in years, encouraging more of us to stay behind the wheel burning cheaper fuel in stalled traffic.

All of that mobility battle and more reported in just six weeks.

As we grope everywhere for answers, the lack of coordination and agreed-on priorities might be our most serious impediments, even worse than the dearth of cash to do the job. As long as government spreads efforts thin so that every commissioner benefits equally, we’re likely to keep sitting in traffic without real solutions, burning that admittedly cheaper gas and fuming at delays.

If 49 disconnected mobility efforts prove nothing else, they show that we’re headed in far too many directions simultaneously. We can’t both narrow and expand the same stretches of roadway, but we’re trying to. And if we fund free trolleys, why expect more of us to board paid buses headed the same way?

The jam of solutions rivals the jam of traffic. Let’s get some adult supervision in government so that we’re all playing the traffic game with the same aim.

E DITOR

county could use the U2 hit “Miami” to create an edgy feel, i.e., exciting, for a commercial. Link to that song: http:// bit.ly/1KhoDfs Begin around 4:12 to hear Bono yell the “slogan.”

Some local songsmith could sample the music and update it with an EDM edge. To get permission from Bono and company, you could promise to name a street after them, you know, like we do all the time for lesser, more obscure people.

DC Copeland

Motto aims to build trust You miss the point of Miami-Dade’s “Delivering Excellence Every Day” motto. It is intended for internal use and acquaintance, not external identity. As one commissioner has noted, “We have to build trust.” This motto is a feeble attempt to do that.

Peter Forrest

Listen to Jackie Gleason

Regarding a motto for Miami-Dade, from Jackie Gleason: “Miami, the sun and fun capital of the world.” It doesn’t get any better than that. ”Delivering Excellence” was never Susan Weitz intended to be a tourism slogan, but a motivator for the county workforce. I don’t believe the “Windy City” and other well-known nicknames are official motmiamitodaynews.com toes for their jurisdictions.

FOUNDED JUNE 2, 1983 What’s wrong with “The Magic City” VOLUME XXXIII No. 13 ENTIRE CONTENTS © 2015 that’s been around for quite a while? I To contact us: believe that refers to the greater region.

News (305) 358-2663 Advertising (305) 358-1008 Rhonda Victor Sibilia

Make ‘The Magic City’ county’s official motto

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WEEK OF THURSDAY, AUGUST 20, 2015

TODAY’S NEWS

MIAMI TODAY

7

Telemundo at capacity, as 354 film telenovelas

BY NICOLÁS RIVERO

Telemundo has been busy at its production studio in Hialeah.

In July, Nielson reported that the network had its best primetime ratings ever in the second quarter of fiscal 2015, delivering a 32% share among Spanish-language audiences 18-49.

And the network has no plans to slow down, according to Telemundo Studios General Manager Joshua Mintz. He said the Hialeah studio, where most of the network’s telenovelas are written, filmed and produced, has been working at or beyond capacity since he took over in 2011.

That has an impact on MiamiDade County that goes beyond the screen, he said, because the studio employs 354 people to produce two novelas simultaneously at a rate of about an episode a day.

Network spokesperson Michelle Alban said telenovela budgets vary widely, but gener-

ally come in the range of about $10 million for a full-length series. Telemundo Studios in Hialeah produced four novelas in 2014 and is scheduled to produce four more in 2015.

Undoubtedly, a sizeable portion of those budgets goes toward paying foreign talent who may not live in Miami full-time.

But Ms. Alban, who said she could not comment on the details of Telemundo’s expenditures, said most of that money stays in Miami-Dade in the form of building materials, furniture and wardrobe purchases, location rentals and a permanent local staff.

Telemundo Studios, just northwest of Miami International Airport, is a near-constant construction site. Spokesperson Elizabeth Vazquez said that for a typical novela, inhouse crews build from 100 to 250 elaborate sets over the course of a six-month production cycle.

Although the faucets in the

Massive studio project moves onto lease stage

BY CATHERINE LACKNER

“We’re making progress” on a mammoth studio complex comprising 11 sound stages and 4 million cubic feet of water in 10 giant tanks, said Rodolfo Paiz, a principal of Miami Ocean Studios LLC. His company is in lease negotiations for 160 acres of county-owned land at 20000 NW 47th Ave. “We have moved beyond the conceptual stage into the language of the actual lease,” he said last week. “This is a very large piece of land, so the county, understandably, is moving cautiously. In general, things are going well.”

Once the lease is signed, he said, his company will begin $30 million in infrastructure improvements, including roads and sewers. Some reimbursement might be available from a slice of the county’s general obligation bonds that voters approved in 2002 that grants monies for economic development.

The parcel lies in an unincorporated area known as County Club of Miami, between the Palmetto Expressway and the Florida Turnpike, near the Miami-Dade/Broward county line and north of Opa-locka Executive Airport. The state transportation department has plans to widen Northwest 47th Avenue next year, which is a key advantage of the site.

Once the infrastructure is in, construction will commerce and will take roughly two years, Mr. Paiz said when the deal was announced in January. The sound stages, the largest of which is to be 24,000 square feet, are to have ceiling heights of 33 to 45 feet to accommodate lighting and electrical needs.

The studios also must be able to

withstand a category 5 hurricane, he added at that time.

“If you figure the kind of structure that is that big, with no column in the middle, that’s a huge block of clear space,” he said. “All of this stuff needs to be well-engineered. Fortunately, the process of knowing how to do it is already out there.”

The water features include a canal that is to be 100 feet wide and 3,000 feet long, one water tank 300 by 200 feet, and one 30 feet deep, he said. “One of things Miami has going for it is water, but it can be inconvenient and unsafe to shoot in open water, so we’ve designed these tanks,” Mr. Paiz has said.

“This is a complete package; it will have few competitors worldwide.”

Mr. Paiz, a third-generation member of a Guatemalan family that has historically specialized in retail, said his company ran a number of scenarios before committing to the studio project.

He has estimated that the project will add about 3,100 direct jobs during construction and 2,700 high-paying positions for film crews and others who work in the complex once it is open. A hotel is also planned for the property and will be probably be run by a concessionaire, he added.

Mr. Paiz has said he hopes Miami Ocean Studios will also become a business accelerator.

“In a place like Miami, you always have start-ups,” he said earlier this year. “We will be looking for people who are doing cool things that are applicable to recording, and might take a portion of equity in their companies. We hope folks who are trying new things and looking for resources will find us.”

Photo by Maxine Usdan

Two Telemundo telenovelas are filmed concurrently, says Joshua Mintz, at the rate of an episode a day.

faux-kitchens may not run, each set must contain enough detail to be convincing. Accordingly, the studio has accumulated 130,000 props ranging from flower pots to football helmets, mostly from local vendors.

“There’s a difference between what we do and what a movie or general market production does,” Mr. Mintz said. “We’re producing two novelas a day, every day. A movie will be here

for a couple of days and then go and take the people they brought with them.”

Beyond the direct economic impact of permanent and constant production, he said, the studio also boosts the community in a less tangible way.

All the exterior shots in each telenovela are filmed in and around Miami. Even the scenery that viewers see outside the windows of indoor sets comes

from photos the studio has taken at local houses it rents for production. Ms. Vazquez said these images are then broadcast to over 120 countries in more than 40 languages.

“Our shows are exported to many countries, and when you watch them, what you see is Miami,” Mr. Mintz said. “It’s a window to see how beautiful the city is. I’m certain it attracts people and businesses here.”

WEEK OF THURSDAY, AUGUST 20, 2015

TODAY’S NEWS

MIAMI TODAY

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Mega-yacht marina sales start as developer seeks approvals

BY JOHN CHARLES ROBBINS

The plan to build a secure marina for mega-yachts on the Miami River is moving forward at a steady speed, with sales for the unique project kicking off a couple of weeks ago.

SeaVault is designed as a temporary home for 14 mega-yachts with living quarters for captain and crew. The plan includes a clubhouse, tennis court, swimming pool, cold storage building and private vehicle parking on a secured site with tropical landscaping.

The start of sales for SeaVault coincided with the launch of the project’s website, seavaultmiami .com, said property owner and developer Homero Meruelo.

The sleek new website opens with a video tour along the Miami River and advances the value of “security, privacy, legacy.”

SeaVault is billed as a stateof-the-art mega-yacht marina complex with 14 of the world’s most elaborate yacht berths, all available for individual, deeded slip ownership, for vessels up to 230 feet (70 meters) long.

Mr. Meruelo and his team have been working on this project for more than a year now and he said this week he’s pleased to be gaining momentum this summer.

Admitting the permitting process can be cumbersome, Mr. Meruelo said they have applied to all agencies involved in commerce on the river, from the federal level to Miami-Dade County’s Department of Environmental Resources Management (DERM) and the City of Miami.

For the project to proceed, the city’s planning and zoning office needed to approve the crew living quarters as part of the commercial marina.

The approval in the form of a letter was great news for Mr. Meruelo.

“That was a very exciting day, yes,” he said.

“We’ve just received approval of the City of Miami to build this facility. Now it’s on to the board of county commissioners,” which will be called on to OK the DERM plans related to SeaVault, said Mr. Meruelo.

The developer is shooting for

The 14 slips for mega-yachts on the Miami River would offer deeded slip ownership up to 230 feet long.

LEED (Leadership in Energy & Environmental Design) certification, and the goal is to garner a silver rating. LEED is a green building certification program that recognizes best-in-class building strategies and practices.

The site on the south side of the river at 1583 NW 24th Ave. has been home to a working marina for decades, with some of the structures dating to the 1940s and ’50s.

The current plan shows slips for 14 mega-yachts: three 35by-150-foot slips; two 43-by200-foot slips; two 50-by-200foot slips; two 50-by-230-foot slips; three 40-by-165-foot slips; and two 40-by-150-foot slips.

The developer says the project will bring to the Miami River the very sought-after mega-yacht industry, which has gravitated toward Broward and Palm Beach counties.

“I’m looking forward, finally, to having a major yachting facility in Miami. That has been lacking for so many years,” Mr. Meruelo said.

Sales have only just begun, but there’s plenty of interest in what SeaVault has to offer, he said.

“Our brokers are dealing right now with four very interested parties – four prominent vessels out there looking for a home here in Miami,” said Mr. Meruelo. Those yachts are in

the 200-foot-long range, he said.

Architects working on a project say it is the first of its kind in the world – everything in one location for the owners of big boats.

“They belong on the Miami River, sheltered and closed, and in close proximity to all of Miami’s social life,’ Mr. Meruelo said of the all-in-one mega-yacht marina plan.

Success of the sales, he said,

will determine the next steps.

“Obviously, that’s the catalyst to get this project under way,” he said.

The goal is to reach 50% sales (seven slips) by the end of 2015, he said. If that occurs, he said, the first steps of construction will start in the first quarter of 2016 – dredging and dismantling the existing marina.

Mr. Meruelo said if work begins then, he anticipates comple-

tion of SeaVault by the first quarter of 2017.

The only other venue planning to afford a place to keep the larger mega- and superyachts is the deep harbor marina being built as part of Island Gardens on Watson Island.

Mr. Meruelo said he’s looking forward to the opening of the Island Gardens marina and sees it as “a conduit to what we are doing.” He views the island marina as transient and SeaVault as more permanent.

He said he does not see the island marina as competition.

“On the contrary, we complement each other.”

“We may have a slip vacant and Watson Island has overflow, Watson can lease these slips, too. We’re not competing at all,” Mr. Meruelo said.

Flagstone Island Gardens LLC plans to build a resort destination on the island with dual hotels, fractional residential units, high-end retail stores and a deep water marina said to be designed for for up to 50 “superyachts” of up to 550 feet.

The SeaVault project earned the support of the Miami River Commission in part because commissioners said it helps maintain the busy waterway as a working river, with active commercial marine uses.

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MIAMI TODAY

11

Take a break with a break in rates, hotel workers told sources at the JW Marriott Marquis Miami and president of the South Florida Hospitality Human Resources Association.

“There are so many worldclass hotels here in South Florida, [but] our own employees are not being able to go and visit them because of the high rates,” Ms. Zerpa said. “They work so hard, but they never get to be on the other side.”

The Betsy Hotel in South Beach is offering 15% off its best available rate now through to Sept. 30. The Biltmore Hotel in Coral Gables is offering discounted rates for its standard superior rooms, junior suites and one-bedroom suites.

Sonesta in Coconut Grove is offering 35% off its best available rate.

B Y C ARLA V IANNA

A national initiative led by the U.S. Travel Association has cascaded its way through the state down into Miami’s hospitality industry.

In Miami, employees within the hospitality industry are being told to do something unordinary: take time off.

The Summer Wellness program, a product of the Greater Miami & the Beaches Hotel Association and the South Florida Hospitality Human Resources Association, is encouraging local hotels to offer special rates for all employees within the hospitality industry. Special rates will be offered from now until Sept. 30.

The goal is to incentivize employees to actually take their time off and spend those vacation days at local hotels, in turn boosting personal well-being as well as the local economy.

“Americans in general are not taking their vacation,” said Wendy Kallergis, president of the hotel association. In fact, Americans fail to use 429 million vacation days every year, according to the U.S. Travel Association.

The hospitality industry in particular, Ms. Kallergis said, is guilty of turning its back on earned vacation days.

Project: Time Off, as the initiative is known on a national level, is the U.S. Travel Association’s research-driven plan “to prove the personal, business, social and economic benefits that taking earned time off can deliver,” according to its website.

Visit Florida is a founding partner of the national project, said Bill Talbert, chairman of Visit Florida’s Board of Directors and president and CEO of the Greater Miami Convention & Visitors Bureau.

“It was a natural for Visit Florida to be a founding partner,” Mr. Talbert said. “Travel and tourism is our No. 1 industry.”

If Americans were to use

Details: Visit the Greater Miami & the Beaches Hotel Association website for all their unused time off, it an online code, for example, if via a hotel website, said Jeishy participating hotels and would deliver a $160 billion applying the discounted rates Zerpa, director of human re- rates. jolt to the US economy, create 1.2 million new American jobs and generate $21 billion in federal, state and local revenues, the travel association reported.

“It’s OK to take time off,” Mr. Talbert said. “It’s good for your health. It’s good for the economy. Jobs! Jobs!

Jobs!”

The campaign trickled down to the local level, as it commonly does, and the Summer Wellness program was created.

Within two days of notifying hotels of the program via email, Ms. Kallergis said, 10 hotels had instantly agreed to participate.

She said she hopes to expand the Summer Wellness program to all entities that make up Miami’s hospitality industry, including restaurants and attractions such as Jungle Island.

Employees taking advantage of the discounts will fill out a form to prove they work within the industry, and then be given Photo by Maxine Usdan

“There are so many world-class hotels here in South Florida, [but] our own employees are not being able to go and visit them because of the high rates,” said Jeishy Zerpa of the JW Marriott Marquis downtown.

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, AUGUST 20, 2015

Action stalls on hotel-apartments-retail complex on US 1

BY CATHERINE LACKNER

The Coral Gables Planning and Zoning Board last week deferred making a decision on recommendations by city staff that Paseo de la Riviera, a mixed-use project at 1350 S Dixie Hwy., go forward, subject to conditions.

About 250 neighbors and others turned out for the Aug. 12 meeting, but by the time the developer, an attorney for the neighbors, and city staff had made their cases, there was no time left for public comment.

The board is to take the issue up again Sept. 16, and if it approves, the plans must go before the city commission.

On about 2.7 acres, Paseo de la Riviera would include a 10story, 252-room hotel; an 8story, 234-unit apartment building; 19,218 square feet of groundfloor retail, 46,948 square feet of open space, a six-story parking garage with 838 spaces, a large “paseo,” or gathering space, and arcades along US 1.

The total area is 404,610 square feet, with 360 feet of frontage on US 1. The two proposed buildings are approximately 142.6 feet tall.

They would replace the current Holiday Inn, a three-story, 155-room hotel with 109 offstreet parking spaces in a surface parking lot, city documents note.

The developer, NP-International, had requested a zoning change from commercial lowrise intensity to commercial highrise intensity, which would permit it to build a structure as tall as 190 feet. City staff recommended approval, as long as the developer voluntarily agreed to limit the building height to 142.6 feet.

The developer also sought designations as a planned area development and mixed-use site, which would allow the relaxing of certain standards in return for benefits for the public.

The recommendation from staff was for approval on all requests, but with conditions.

Two proposed buildings are 142.6 feet tall on 2.7 acres where a Holiday Inn now stands in Coral Gables.

Any building within 100 feet of a residential property will be limited to a height of 45 feet, and if no building permit is obtained within 18 months, the zoning would revert to commercial lowrise.

Many of the other conditions are standard to a large development: any potential traffic issues be resolved, the developer cannot lease out any of the parking to an outside entity, plans must be approved in advance, and parameters that normally apply to any construction within the city must be followed.

Jeffrey Bass, who represents NP-International with co-counsel Laura Russo, said Paseo de la Riviera is an “exemplary” example of transit-oriented development, lying across US 1 from the University Metrorail Station.

A planned pedestrian overpass spanning US 1 will connect the project to the transit system and university. The surrounding neighborhood is largely strip shopping centers and multi-family residential, Mr. Bass said.

“This project is about connectivity, it’s about creating community, and ensuring development that promotes walking, biking and opportunities for social exchange in a public space,”

‘I would say the current code is very complex. The tools we have are not quite right for transitoriented development.’

Ramon Trias, Planning and Zoning Director said Jorge Hernandez, its architect.

The paseo, which he called “an urban living room,” will be landscaped and equipped with street furniture, fountains and public art, he added. More than 40% of the ground floor is public space, with arcades that are 20 feet tall and a portico facing the highway, he said.

The site is the deepest lot in the area at 325 feet, Mr. Hernandez said, “allowing us to do something very unique here.

Rather than have the buildings broad-shouldered to the corridor, we can turn them 90 degrees and have the thin dimensions face the avenue.” It would allow direct access to Jaycee Park, behind the site, from US 1, he added.

Because US 1 is 150 feet wide,

the height of the buildings is in scale, Mr. Hernandez said. The complex’s shorter buildings face the residential section, he said.

The developers held more than 45 meetings, he said. “As a result, the project evolved. We removed an entire floor of the apartment building, provided public bike storage for Metrorail users, and added a roundabout,” among other improvements, he said. “I believe we brought you the very best use that we could for this parcel of land,” he said.

Traffic can only enter or leave Paseo de la Riviera from US 1 and will not funnel through the residential neighborhood, said Tim Plummer, a traffic consultant with David Plummer & Associates. “The plan minimizes impact on the surrounding area, in my opinion.”

“We’ve had a lot of public input,” said Ramon Trias, planning and zoning director. While the developer is technically correct that the properties immediately surrounding the project are multi-family, “there is a singlefamily neighborhood very close by, and it is a very different scale,” he said.

The height of the two buildings is probably the most significant sticking point, he said. “The

massing of the building attempts to meet the code requirement,” he said, “and it’s close.”

“The project has been reviewed multiple times by every department that has a say in development and I believe the project has become better,” Mr. Trias said. “I would say the current code is very complex. The tools we have are not quite right for transit-oriented development.”

A city document notes that what happens with Paseo de la Riviera might be precedent-setting, because other Metrorail stations that are in or near Coral Gables will probably be targeted for these sorts of developments.

“My clients object to this application as an unwarranted increase in commercial intensity bulk and height, abutting a lowintensity residential neighborhood,” said Tucker Gibbs, attorney for the Riviera Neighborhood Association. “This project is complex and multi-faceted. It seeks to do several things: it more than doubles the allowable square footage and triples the allowable height, all without a city-approved plan regarding future development of the area.”

The city has been studying a plan for the entire US 1 corridor within its city, and a report was scheduled to be presented Wednesday, Mr. Trias said.

“But the word has gone forth: built this project now and plan later,” Mr. Gibbs said. He also said the project is more compatible with Gables One, a tower that is 142 feet tall, than with the surrounding neighborhood.

“Don’t be fooled and don’t kid yourselves: these neighbors have been saddled by the Gables One mistake since 1971. Everyone knows that was a bad project,” he said. “Is that a valid benchmark? Gables One is the tallest on US 1 in Coral Gables.

“US 1 needs a clear set of planning documents and guidelines, and you do not have it in front of you,” Mr. Gibbs told the board. “At its core, this proposal is about cramming as much development as the city will allow on those 2.7 acres. Protection of this neighborhood is taking a backseat to the project’s relationship with US 1, the University of Miami and the Metrorail station.”

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These film permits were issued last week by the Miami-Dade County Department of Regulatory & Economic Resources’ Office of Film and Entertainment, (305) 375-3288; the Miami Mayor’s Office of Film, Arts & Entertainment, (305) 8603823; and the Miami Beach Office of Arts, Culture and Entertainment-Film and Print Division, (305) 673-7070.

Mesquite Productions Inc. Homestead. Bloodline Season 2. Mesquite Productions Inc. MEADOW STREET FILMS LLC. Brooklyn. Jacqueline.

Sunny Isles Beach.

Nevarez Communications. Doral. Promotion-SCCU. City of Cutler Bay, City of Doral, City of Hialeah.

National Water Restoration. Hallandale Beach. National Water Restoration. Haulover Beach Park.

Totem Films and Video Production LLC. Clearwater.

Hitachi Train Systems. Miami-Dade County Transit.

Upmarket/Illustra Films. San Anselmo. Jet-Surf.

Haulover Beach Park.

Paragon Production Services Inc. Miami Beach. Babson College. Miami Beach citywide.

Cisneros Studios LLC. Medley. La Revista de Zuleyka.

City of Hialeah, Unincorporated Miami-Dade County.

44 BLUE PRODUCTIONS INC. California. Tentatively Rock and a Hard Place. Turner Guilford Knight Correctional Center.

HIGH NOON PRODUCTIONS LLC. Denver. Quinceanera.

Countywide, Miami Beach citywide, Unincorporated Miami-Dade County.

WEEK OF THURSDAY, AUGUST 20, 2015

COMMERCIAL & OFFICE SPACE

MIAMI TODAY

15

Mediterranean Village construction drawings move ahead

BY SUSAN D ANSEYAR

Mediterranean Village at Ponce Circle is proceeding on schedule, say its developers, who plan to submit construction drawings currently being prepared to the City of Coral Gables by year’s end.

At the same time, engineers are devising proposed construction techniques for excavating and sealing the two-story underground garage that will house all truck deliveries and pickups, along with underground parking, according to Eddie Avila of Key Realty Advisors Inc. Once the company receives approvals from the city, he said, Mediterranean Village developer Agave Ponce LLC expects to spend 36 months constructing all aspects of the project.

Agave Ponce is working with the Miami-Dade Water & Sewer Department regarding utility hook-ups. To date, five construction companies have bid and Agave expects to select a construction management firm in the coming weeks.

Agave Ponce is also in initial discussions with hotel companies to operate the 184-key luxury hotel.

In June, city commissioners approved the $500 million mixed-use project that will rise on the former Old Spanish Village site, 6.74 vacant acres a few blocks south of Miracle Mile and the central business district. The largest development ever in Coral Gables, Mediterranean Village is to include about 300,000 square feet of retail and restaurant space and about 300,000 square feet of offices along with the 184-room hotel and about 230 residential units.

Mediterranean Village developer Agave Ponce LLC expects to spend 36 months building the project.

Photo by Maxine Usdan

Five construction companies have bid to develop the massive project on this site along Ponce de Leon.

In June, commissioners unanimously approved the project “in concept” but disagreed, 3-2, on allowing the

Commercial insurance rate cuts may be large

BY CATHERINE LACKNER

The trend for commercial insurance rates to decline, fueled by competition created when more companies entered the Florida market last year, is still strong and may continue, observers say.

“Everything is moving in a positive direction as far as rates go,” said Jorge Pena, managing director of ASI Florida and recently installed president of the Latin American Association of Insurance Agencies. He said rate drops of 20% to 40% are not unusual.

“The fact that we have not had a major storm in 10 years has built confidence within the companies, and if we continue this way, we’ll probably see more and more companies entering the commercial insurance market in Florida. Reinsurance rates have also gotten better, so that is helping companies to improve their premiums.”

But one storm cloud looms on the horizon, Mr. Pena said.

“The one big factor that keeps rates higher than they could be is that, unfortunately, South

Florida has a tendency to use unconventional methods for reporting claims.”

Rather than directly handling a claim with the company, some holders of commercial insurance hire intermediaries such as public adjusting companies or attorneys to file or manage their claims, he explained.

“That raises costs,” Mr. Pena said, as well as acts as a disincentive for companies to do business here. “That definitely is the No. 1 reason companies are still not as aggressive as they could be to enter the market in South Florida,” he said.

“In the past 12 months, we’ve seen the trend of decreasing premiums,” said Mario Paradela, founding partner of Global Risk LLC. He said his agency has seen rates decease 5% to 10% overall, but “it is on a case-bycase basis.”

He said he is confident that the trend will continue. “Anything can change at any time,” Mr. Paradela said, “but I don’t see any reason this shouldn’t continue for at least the next six to 12 months.”

218-foot-tall main building to have a two-story, rooftop restaurant. Vince Lago and Jeannett Slesnick cast the opposing

votes, saying they had concerns about a building higher than the 190.5 feet of habitable space the city currently allows.

Should the two-story restaurant not work out as planned, the developer agreed to return to the commission for acceptance of another use.

After several years in planning stages, Agave Ponce agreed to a number of changes, including reducing size and massing by eliminating 109,798 square feet; reconfiguring the hotel driveway so that it’s off of Malaga Avenue instead of Ponce de Leon Boulevard; adding plazas and open spaces; and lowering the scale of buildings near the Art Center Building, a central feature in the project, to give it more prominence.

Earlier last spring, the developers had already agreed to eliminate a movie theater, daycare center and third residential tower.

By June, the development agreement was also refined to better define the public benefits and off-site improvements, including a $1.4 million contribution for police and fire services.

The developers are giving the city $27,829,000 in public benefits. All are above and beyond what the code presently requires: an additional $2.7 million for art in public places, along with the required 1% of construction costs ($5 million); $2 million each for neighborhood streetscape east and west of the project, Ponce de Leon (north); $125,000 for University Drive streetscape (south); $200,000 for Santander Avenue streetscape; $1.5 million for publicly accessible rooftops; $16,990,000 to enhance trolley service; $100,000 for a trolley stop; $100,000 for bicycle support facilities and parking; and $114,000 for electric vehicle charging stations.

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MIAMI TODAY

WEEK OF THURSDAY, AUGUST 20, 2015