Miami Today: Week of Thursday, September 3, 2015

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WEEK OF THURSDAY, SEPTEMBER 3, 2015

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Despite commodities’ dip, labor keeps building costs high, pg. 13 STADIUM ACCOUNTING CONTINUES: No arbitration has been set for a dispute between Major League Baseball’s Miami Marlins and Miami-Dade County because the two parties are still in discussion regarding the amount that should be counted toward the team’s share of the stadium’s construction cost. The county attorney’s office says it cannot predict precisely when the date will be set as dialogue is ongoing. The stadium contract states that any dispute or controversy arising over $5 million or less must be resolved by final and binding arbitration. Currently, the Marlins claim $110.9 million should be counted toward the team owner’s share of spending for building the team’s Little Havana home but county auditors are disputing $4.2 million, or 3.8% of that total. When an arbitration date is set, the issue will go before a panel of three independent arbitrators acting under the auspices and rules of the American Arbitration Association. The hearing would be scheduled so that it’s completed within 60 days of the filing date.

Brickell City Centre realigns use of rising tower for offices, pg. 16

THE ACHIEVER

BY SUSAN D ANSEYAR

TRANSPARENCY IN BOND VOTES: Miami-Dade commissioners were to vote Tuesday to require disclosure of estimated operating and maintenance costs for proposed bond-funded projects and the precise funding source. However, Dennis Moss expressed concerns and wanted to discuss them but sponsors Juan C. Zapata and Esteban L. Bovo were not present when the item came up at 6:44 p.m. Therefore, the commission is to bring it back in the future. The resolution states that general obligation bond proceeds can’t be used to operate and maintain projects funded by such bonds, and it’s not currently clear to voters that expenses will come from their real estate taxes. The commission adopted the ordinance on first reading 9-2 on June 2. The Strategic Planning and Government Operations Committee unanimously voted July 7 to recommend that the full commission pass the item. NESTLED AWAY: Residential parking at Jackson Medical Towers, 1500 NW 12th Ave., is going to be relocated to an area of about 110 spaces in the parking garage in order to provide them with exclusive parking. This will require new parking access revenue control equipment at the facility, part of the Jackson Health System. The Miami Parking Authority operates the garage for the health system and will be reimbursed. The city’s OffStreet Parking Board has approved the purchase and installation of the new equipment from Scheidt & Bachmann. The cost is estimated at $21,174, and with an added 15% contingency fee, the project total is $24,351.

Wayne Eldred

Photo by Marlene Quaroni

Restaurateur promotes service as Coral Gables theme The profile is on Page 4

All-Aboard Florida closes on final downtown land BY JOHN CHARLES ROBBINS

All Aboard Florida has closed on the final land it needs to redevelop six blocks of downtown, as nearly 100 workers continue to forge the foundation of a new train station that will bring passenger rail to Miami’s urban core. All Aboard Florida just closed on 2 acres in Overtown, a move that clears the way to construct 3 MiamiCentral, a mixed-use complex that is to bring Class A office space, retail and a grocer to the neighborhood. The property is hugged by Northwest Sixth and Seventh streets and Northwest First Court and Second Avenue. Its neighbor to the east is the Miami-Dade County Administration Building. One of the first tenants at 3 MiamiCentral will be All Aboard Florida, which will relocate its corporate headquarters from Coral Gables to the new site. The plan also promises dedicated parking for the historic Lyric Theater nearby. Addressing an issue that has plagued Overtown for years, 3 MiamiCentral will feature a national grocer, the company said. Hundreds of residents expressed this need to

AGENDA

Courthouse gets safety thumbs-up

All Aboard Florida executives at a meeting in 2013. “I’m excited to see this project moving forward and continuing to spur job creation and economic investment in historic Overtown and downtown Miami,” said Miami-Dade County Commissioner Audrey Edmonson. “This is one of several developments that will truly be a catalyst for transforming Overtown into a sustainable community where people can live, work and play.” The plan calls for a 12-story building that will house a grocer at about 29,000 square feet on the ground floor, nearly 97,000 square feet of office space, 33,161 square feet of commercial/retail space, and a garage to park 1,096 vehicles. It’s perhaps the smallest piece of All Aboard Florida’s full development vision for downtown, which is to see a major train station, MiamiCentral, rise to be a transportation hub connecting All Aboard Florida passenger trains, Metrorail and Metromover, county buses, city trolleys and taxis, and possibly link with Tri-Rail. The major part of MiamiCentral is about 9 acres west of Northwest First Avenue. Work

to drill 50- to 100-foot pilings continues today, with 1,587 piles in place and about 40 to go, the company said this week. The transportation hub will also include a mix of uses, with residential, office, commercial and a retail concourse. All Aboard Florida has picked Facchina Construction of Florida for pre-construction and construction-management for 3 MiamiCentral. Construction is to begin this year, and sub-contractor and career opportunities are to be announced in coming months. The complex, to be done in the first quarter of 2017, seeks LEED Silver certification. Others working on 3 MiamiCentral are AECOM, a global provider of professional, technical and management support services in transportation and other markets, which is designing the complex, and Miami-based Design2Form, which is design consultant and bringing knowledge of the history and culture of Overtown to the project. The centerpiece of 3 MiamiCentral is to be a mural by Miami-based sculptor and visual artist Robert McKnight.

Engineering consultants have inspected all courts in the county except the new Children’s Courthouse and Overtown Transit Village and found all structurally safe to use, including the much-maligned Dade County Courthouse. A report that commissioners received Tuesday states that Rizo Carreño & Partners analyzed the historic Dade County Courthouse, built in 1928 on West Flagler Street, and recommended a 40-year recertification reliant on completing ongoing work including on 130 basement columns, anticipated by the last quarter of 2017; the exterior terracotta and plaza restoration, anticipated by summer 2016; and minor isolated repairs to non-structural reinforcing steel on five floors. The consultant listed other needed work including replacing panels on four floors as well as securing exposed wiring on eight floors. The deterioration of the Dade County Courthouse has long been a topic of discussion, with some judicial leaders saying that the building has organic system collapse and significant electrical and air quality issues. But in 2014, voters rejected a tax increase to fund a $390 million replacement. After the election, Chief Judge Bertila Soto said she and others were asking elected leaders to find $25 million to repair deteriorating support columns. Judge Soto set a priority of finding a new building even before discovery of problems with basement supports. She told Miami Today in early 2014 that the courthouse is too small for the 11th Judicial Circuit’s needs: not every floor has a bathroom, some civil judges don’t have a courtroom, and the probate division has none at all. This week’s report to commissioners also listed countyowned buildings and private space suitable for the relocation of court operations in an emergency.

WATSON ISLAND MARINA CREATING ARTIFICIAL REEF ...

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WEALTHY CHINESE EXPLORING MIAMI BUSINESS TIES ...

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HIGH-PROFILE TEAMS SEEKING NO-BID AIRPORT SITES ...

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COMMISSION SEEKS PRIVATE MEETINGS TWO BY TWO ...

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VIEWPOINT: SCHOOLING BEFORE OR AFTER ELECTION? ...

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GABLES LOOKS TO MINIMIZE IMPACT OF POWER LINE ...

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NO RUSH BY SOCCER USERS FOR A LANDFILL STADIUM ...

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ERASING EASEMENT COULD BOOST DESIGN DISTRICT ...

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, SEPTEMBER 3, 2015

THE INSIDER LIGHTS, CAMERA, TAX BREAKS: The Miami-Dade County Commission on Tuesday unanimously passed a resolution by Commissioner Rebeca Sosa urging the Florida Legislature to revitalize the state’s film incentive program, which has not seen new funding in three years. “We need incentives to help keep film and television productions in Florida and in Miami-Dade County, where these industries have been an important source of jobs for our residents,” Ms. Sosa said in a release. Direct local direct spending by the Rebeca Sosa entertainment industry increased $500 million during the four-year period in which the incentive program was fully funded, she noted. In 2010-2011, Miami-Dade alone saw $380 million in economic impact, which has now sharply diminished. TASK FORCE PROTECTION: Commissioners voted unanimously Tuesday to amend powers and duties of the Miami-Dade County Public Private Partnership (P3) Task Force to protect members from conflict of interest. The 15 members were originally going to identify potential projects addressing infrastructure needs that are suitable for publicprivate partnership financing. Now, the commission has revised the group’s duties to focus on recommending changes in ordinances, resolutions, regulations, implementing orders and administrative practices to advance P3 partnerships. Additionally, the deadline for the task force’s report of its findings has been extended to within 300 days from the resolution becoming effective. BEST-LAID PLANS: An Aug. 31 meeting of the Metropolitan Planning Organization (MPO)’s Fiscal Priorities Committee was to begin at 1:30 p.m. By 2:15 p.m., only committee chair Commissioner Daniella Levine Cava and Oliver Gilbert III, mayor of Miami Gardens, had arrived. The five other committee members – Carlos Hernandez, Philip Levine and Jeff Porter, mayors of Hialeah, Miami Beach and Homestead respectively, along with county commissioners Audrey Edmonson and Juan Zapata – were no-shows, so Ms. Levine Cava cancelled the meeting. “It only works when we have quorum,” she Daniella Levine Cava said. INFORMATION UNDERLOAD: On the committee meeting agenda that day: a presentation on bus rapid transit (requested by Jean Monestime, chair of both the county commission and the MPO), a report on potential funding sources, and a discussion on options for the “first and last mile,” the distance people have to bridge between public transit and their homes or destinations. Ms. Levine Cava apologized for having to cancel the meeting and thanked the presenters “who spent their time and effort to be prepared, and Jean Monestime braved weather and traffic to be here.” ABSENCE ALLOWED: Javier Rodriguez, executive director of the Miami-Dade Expressway Authority, missed the agency’s Aug. 25 meeting, but he had a good reason. He is president of the International Bridge, Tunnel and Turnpike Association, which was meeting in Dublin Aug. 30Sept. 2. “We cannot be prouder of him,” said Louis Martinez, authority board chair. “We are incredibly lucky to have a nationally and internationally recognized leader as our director.” ARGUABLY BETTER: After being told that the Miami-Dade Expressway Authority’s rebate program has taken off with consumers, and being briefed on projects that are moving forward, Louis Martinez, authority board chair, said he is encouraged by the progress taking place. “There’s a saying among lawyers: if the facts are on your side, you argue the facts,” he said. “If the law is on your side, you argue the law. If neither is on your side, you just argue. We have the facts on our side.” CREDIT WHERE DUE: An Aug. 25 meeting of the Miami-Dade Expressway Authority ended with a cake, congratulations and a standing ovation for board member Maurice Ferre, who celebrated, with wife Mercedes, their 60th wedding anniversary that day. “Unaccustomed as I am to public speaking,” quipped Mr. Ferre, a former Miami mayor and longtime civic activist, “the success of our marriage is 100% her doing.” SEA LEVEL CENTER: Florida International University has launched a Sea Level Solutions Center Maurice Ferre and named research scientist Tiffany Troxler with its Southeast Environmental Research Center and Department of Biiological Sciences as its director. The center is to combine expertise in natural, physical and social sciences, along with architecture, engineering, computer sciences, law, communications, business health and tourism management to develop long-term strategies in the face of rising seas. SMOOTH MOVES: The Florida Department of Transportation is planning the milling and resurfacing of part of West Flagler Street. City commissioners have granted a state request to work on about 10 feet of city-owned property at 2200 W Flagler, home of the Miami Police South Station, as part of the project. The city’s property will be used “solely for sloping, tying in, harmonizing, and reconnecting existing features of the property with the roadway improvements.” The agreement runs through February 2018. CORRECTION: New University of Miami President Julio Frenk comes here after being dean of Harvard University’s T.H. Chan School of Public Health. CORRECTION: Tim Rodgers’ last name was misspelled in the Aug. 27 Achiever profile. CORRECTION: Last week’s report on the Miami Yacht Harbor project proposed for PortMiami incorrectly stated that Miami-Dade County staff had recommended the project. The county was still evaluating land use options for the site at the time. Subsequently, the county’s Trade and Tourism Committee refused to endorse the proposal.

Photo by Maxine Usdan

Flagstone Property Group progresses on deep water marina at the site where it began its lease in 2001.

Mega-marina begins artificial reef BY JOHN CHARLES ROBBINS

Flagstone Property Group’s work to build the area’s first deep water marina for super-yachts includes creation of an artificial reef. Flagstone is developing a corner of city-owned Watson Island into a multi-million dollar resort called Island Gardens. The developer said this week it has begun installation of the Brickell Mitigation Reef Site, designed to offset impacts to hard bottom habitat and foster new marine life. Upon completion, it could be home to approximately 5.43 acres of offsite habitat. Development at The Deep Harbour at Island Gardens includes coral, sponge and seagrass relocation. This week, Flagstone released details of its overall environmental mitigation plan. The work thus far has included: Relocation of 27 hard coral colonies and 10 soft coral colonies (permit conditions required the removal and relocation of just 14 hard corals and 10 soft corals). Removal of 59 sponges and placing them in a relocation site (permit conditions required the relocation of just 30 specimens).

Removal of 2,000 seagrass plugs and transporting them to a temporary holding site. When the dredging phase is completed, these plugs will be replanted in the filled dredge hole. Identification of additional donor locations where 8,000 additional seagrass plugs will be removed and replanted. Creation of an artificial reef to off-set impacts to habitat at the project site. Deployment of 232 reef balls on site and 2,159 reef balls at the Brickell Mitigation Reef Site. Reef balls are made of concrete and used to create artificial reefs. The company said mitigation endeavors will continue for 5 years following completion of marina construction to ensure all mitigation goals have been fulfilled. Flagstone says it has invested more than $10 million in mitigation work for the marina so far. While the new seawall/bulkhead has been completed, dredging near the property continues in anticipation of decking and pier work. When the marina is finished it will be able to accommodate up to 50 mega- or super-yachts, up to lengths of about 550 feet, the developers say.

Miami Circle parking gains BY MARILYN BOWDEN

Public parking for visitors to the Miami Circle appears to be one step closer to realization. The Miami Parking Authority’s plan for 21 paid parking spaces under the Brickell Bridge has been held up for five years by a series of bureaucratic roadblocks. Most recently, officials at the state’s Department of Historical Resources rejected the plan’s latest revision, stating it could not be approved or endorsed “until access and land use issues are resolved.” That requirement instigated an extensive land use review by the Florida Department of Transportation, which owns the proposed parking site. The access road to the site runs in front of the 10-acre Icon Brickell complex, which includes the Viceroy Hotel. In an email at the end of Au-

gust to various agencies involved in the project, W.E. Reuben, property management administrator in the Department of Transportation’s Miami office, said his research turned up a 1995 Private Access Road Agreement granting use of the access road to the grantee – which, in the intervening 20 years, has become the Miami Circle. The relevant documents “were provided to the interested parties for their review and consideration,” a spokesperson for the transportation department wrote in an email, “expressing that we can only recommend they reach their own conclusions as to the situation and if any further action is proposed. It is the Department’s intention not to pursue this matter further.” Attempts to reach Miami Parking Authority before deadline for comment were not successful.

The city and county are working together to get water and sewer lines to the property. In June, Miami city commissioners approved an agreement with Miami-Dade County to bring public water and sewer service to 1050 MacArthur Causeway for Flagstone. The June 25 resolution says Flagstone Island Gardens LLC currently has leases on the property and has requested the city and the county to enter into a triparty agreement in order for the necessary water and sanitary sewer services to be provided to the development. The county is the sole provider of water and sanitary sewer services in Miami-Dade and has agreed to provide the services for the mixed-use project. The city owns the 6.5-acre site. Voters approved leasing the land to Flagstone for the development back in 2001. Numerous delays, including the economic downturn and port tunnel dredging, held back Flagler’s plans for years. Marine mitigation began at the site in May 2014, which represented a formal commencement of work on the project, city officials confirmed. Island Gardens is to include dual hotels, fractional residential units, high-end retail stores and the deep water marina.

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, SEPTEMBER 3, 2015

MIAMI TODAY

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Tennis stadium center court for oral arguments in December BY SUSAN DANSEYAR

Organizers for the Miami Open, who are fighting to build three additional stadiums at the tennis center in Key Biscayne’s Crandon Park, may get their day in court. On Monday, the Third District Court of Appeals scheduled oral arguments Dec. 14 for International Players Championship versus Miami-Dade County, Bruce Matheson, Matheson family members and the National Park Conservation Association.

Miami Open tournament organizer International Players Championship (IPC) filed an appeal in February, seeking to reverse Judge Marc Schumacher’s September ruling in favor of the Matheson family keeping the park as it is now. The family donated the land for Crandon Park in the 1940. However, the court reserves the right to cancel oral arguments at any time. According to Enrique D. Arana of Carlton Fields Jorden Burt, one of the attorneys representing the Matheson family, the Third District Court of Appeals does not

grant oral argument in every case. There will still be a decision based on briefs both sides filed and the record in trial court, but the judge may not deem it necessary to hear two sides present their arguments if there’s no dispute of fact. The tennis tournament has been held at the Crandon Park location since 1987. In recent years, however, IPC began litigation over what it believes are unlawful restrictions for keeping up the facilities. Tournament director Adam Barrett wrote to Mayor Carlos Gimenez in May, saying county government’s failure to pay atten-

tion to detail could very well mean the end of the Miami Open at its current location. Last month, Mr. Barrett told Miami Today he would have thought the mayor would want the park controlled by elected officials to do what’s in the best interest of the public. Ironically, Mr. Matheson said, IPC’s proposed expansion would adversely affect the public. In order to build the proposed 6,000-, 4,000- and 3,000-permanent-seat structures, IPC would have to remove six tennis courts from the site that the public now uses.

3 high-profile groups recommended for no-bid airport retail concessions BY SUSAN D ANSEYAR

Although a county committee ultimately recommended that the Aviation Department waive competitive bidding for proposed leases with three highprofile local entities at Miami International Airport, Commissioner Dennis Moss expressed frustration last week that a report he requested on the process was not supplied. “When I ask that items be on an agenda, I expect that they will,” he said to airport officials during the Trade and Tourism Committee meeting Aug. 27. “The report on no bid concession contracts is not here, so now we have a problem.” Tony Quintero, associate aviation director, apologized and said the report was prepared by staff members but, during a period of confusion, somehow “fell through the cracks.” Should the full commission approve by two-thirds vote, the airport will be authorized to sign leases with Bongos Cuban Café doing business as Estefan Kitchen Express and Perry Ellis Menswear for shops in the North

Terminal Marketplace, as well as with non-profit Miami Children’s Museum for an interactive exhibit on the second floor of Concourse E. “We continue to reach out to iconic brands and they reach out to us,” said Emilio Gonzalez, director of the aviation department. “We want to populate our airport so it’s reflective of our community.” Mr. Moss said he wanted the report to be certain when waiving competitive bidding for lease awards the county is being fair to everyone who wants to bring an iconic, unusual idea. Mr. Gonzalez said the Aviation Department works carefully with the businesses wanting to operate at the airport. “We want them to succeed,” he said, adding that his department has been aware for a long time there’s a need to create a sense of destination for its passengers to showcase local businesses. If approved, Bongos Cuban Café Miami Inc. will occupy 529 square feet and pay the department the greater of 14% of gross revenues for food sales

plus 19% of gross for alcohol sales or a guaranteed minimum of $156,000 (based on 19% of projected annual sales of $821,000). The terms are an eight-year lease with option to renew for two years. Perry Ellis Menswear will also pay the department the greater of 14% of gross or $18,686.25 based on the Oct. 1, 2014, terminal class 5 lease currently at $83.05 per square foot (for 225 square feet) and 14% of gross. Terms are a four-year lease with option to renew one four-year term and one two-year term. The interactive exhibit space for children would be 1,500 square feet just past the Concourse E security checkpoint where children can view the airfield. Per the agreement, Miami Children’s Museum would conceptualize the layout; install all equipment, materials and furniture; provide removal or replacement of equipment deemed a safety hazard or inoperable within 48 hours; obtain all required insurance; and report to the department each Dec. 1 on the operating budget for the next fiscal year.

Photo by Maxine Usdan

Bongos, Perry Ellis and Children’s Museum are in line for retail sites.

The department would reimburse the museum for all direct costs of operation – including material, equipment and maintenance of the exhibit. The museum could solicit charitable contributions to fund the exhibit, reducing the department’s reimbursement amount. The Aviation Department anticipates the reimbursement to be less than $500,000, subject to available funds in its budget. Terms are a 10-year lease with option to renew one five-year term. Deputy Mayor Jack Osterholt advised commissioners via a memo to waive competitive bid

procedures for these local businesses. As was the case with the Miami Heat store, he said, it is in the best interest of the county to do so for Bongos and Perry Ellis because of the international recognition and uniqueness of the local brands. Additionally, Mr. Osterholt said, most large international airports have children’s play areas where they can learn to think as well as play. Commissioners and the Aviation Department have long wanted to provide a children’s play area and had discussions with other companies, he said, but none came to fruition.

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, SEPTEMBER 3, 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

Which should come first, their election or their education?

Maybe it has something to do with a Harvard degree. At services Saturday for deceased Northern Trust Vice Chairman Bill Allen, we heard that he’d jested at a Harvard Business School reunion that Michael Lewis while classmates had gone on to successful careers, he had become a NASCAR driver. It was typical of the veteran banking leader’s sense of humor. Also last week, we learned that Miami-Dade Commissioner Juan Zapata ordered a county check to pay $30,961 for attending Harvard’s John F. Kennedy School of Government this fall. Typical of his sense of humor, when his order leaked out he said he’d never intended that the county pay the full cost of his master of public administration. It may be true. That check order, which he later cancelled, sure wouldn’t have paid the full cost. Harvard lists the mid-career master’s at $88,862 for the full year. The check wouldn’t even have covered the first semester. That leaves Mr. Zapata among a se-

lect group of commissioners who haven’t yet been to Harvard – leaving the un-Harvarded ample excuse for not reading things like contracts for baseball stadiums that cost taxpayers billions. Think about it: Mayor Carlos Gimenez went to a special Harvard program when he was a City of Miami firefighter, a program not paid by taxpayers. Former commissioner Katy Sorenson went to the same program. As commissioners they both voted against baseball stadium financing. Then there’s Commissioner Xavier Suarez, who studied government and law at Harvard before he was elected, and Chairman Jean Monestime, who went to the same special Harvard program as Ms. Sorenson and Mayor Gimenez. Neither Mr. Suarez nor Mr. Monestime was on the commission when the stadium deal passed 9-4 – nor was soon-to-be Harvard educated Mr. Zapata. When we argued a month ago that our commissioners, who get only $6,000 a year for what needs to be fulltime work, should get far more so that they can afford to read and digest legislation that could cost taxpayers millions unnecessarily, we now admit we should have taken into account the Harvard factor. More education seems to produce good results.

L ETTERS

So maybe instead of paying our commissioners enough to fund food and shelter we could pay them in degrees – college degrees. Either that or elect commissioners who are already educated to do the job. It’s no wonder that Mr. Zapata regularly asks Mayor Gimenez to make enough studies to fill a good-sized bookshelf – the mayor has been to Harvard and Mr. Zapata hasn’t yet. The mid career special program for a master’s in public administration at Harvard could fill the bill for Mr. Zapata but it would burn a healthy hole in his office budget, which is the source he was tapping to fund his degree. Harvard lists the tuition at $45,697, plus $8,040 for the mid career program, plus $428 for course materials, a $175 activity fee, a $310 health services fee, $1,042 for the student health fee and $2,390 for student health insurance, or $58,082 in direct fees to Harvard. The check Mr. Zapata ordered was only about half that. So either he was paying only the first semester or he had negotiated away many costs, like the $3,742 total health fees. The county already pays Mr. Zapata’s health insurance, and surely he wouldn’t double-dip to pay his health insurance twice. He did, of course, ask if the county could pay his travel. Harvard lists per-

TO THE

sonal expenses and travel at an added $5,580, room and board at $23,380 and books and supplies at $1,820, bringing total program costs to $88,862. But surely Mr. Zapata would fly back and forth to county meetings and wouldn’t live in dorms, so taxpayers would have picked up some or all of those costs too. With his sense of humor, we’re sure he could explain just what he planned. As things stand, he says he might settle for a shorter course at Harvard for less than $13,000 cost to taxpayers – plus, of course, travel and lodging. It’s costly, but cheaper than a $3 billion stadium. But while Harvard looks great on a politician’s resume, we have pretty decent education available for county officials right here in Miami that would cost taxpayers less tuition and save a lot on travel and hotel rooms. Maybe the county could buy a package degree deal for all the commissioners. Ask new University of Miami President Julio Frenk. He could tell you. But then, Dr. Frenk has Harvard on his own resume – he just was dean of the Harvard school of public health. On second thought, let’s just compensate our elected officials decently and let them pay for their own educations aboveboard. You can only stretch our sense of humor so far.

E DITOR

Tourney head went too far The Miami Open Tennis tournament has been great for Miami and I am a big fan, but [tournament director] Adam Barrett is way out of line questioning Bruce Matheson’s integrity. The courts can decide the legal issues and so far have sided with Mr. Matheson, who is a man of principle and goodwill. Right or wrong, Mr. Matheson is doing what he believes is best for the preservation of Crandon Park, one of the many generous gifts to South Florida from his pioneer family. I am sure the residents of Key Biscayne would look forward to the tournament relocating off the island at the end of the lease. Maybe the new mega mall out west would be more a prestigious location. Miami Open tournament packs the current stadium in Key Biscayne’s Crandon Park. Tom Byrne available US jobs were STEM-related, workforce, and represent the largest yet employers could not find qualified number of new recruits in our Armed Forces for decades to come. potential employees to fill them. A new slogan for Miami-Dade County: Consequently, sustained public sector In fact, we cannot maintain Florida’s The county of sunshine, warm waters and our nation’s critical technological expenditures, university leadership and and fun. innovative edge in the 21st century philanthropic efforts such as our founJoseph Szot economy without far more emphasis on dation must immediately be directed to STEM-focused college degrees if our preparing our new Hispanic majority for collegians, and our rising Hispanic stu- the ever-changing STEM requirements to enter the professional workforce. dent population, do not pursue them. While Governor Scott has wisely iniSadly, for the past two decades there Your Aug. 6 article entitled “Below- has been a flight from STEM majors tiated programs to recognize our invalupar engineering jobs market still hun- throughout the nation. This disturbing able STEM teachers and encourage more STEM activities for our K-12 students, gers for talent” written by Nicholás trend cannot continue. It is true that Silicon Valley execuRivero is spot on. As a staff director for the the Brinker tives began saying several years ago that Education Initiative, a Miami project of Florida would be the nation’s epicenter the Harry S. and Mary Ellen Brinker Jr. for Hispanic-owned high tech firms. Foundation Inc. devoted to immersing Without question, Miami will become a Hispanic/Latino students in science, dominant STEM oriented model city. technology, engineering and mathemat- Where Miami goes, the nation will go. Have an opinion Our Hispanic millennials and youth ics (STEM), I can assure you that STEMon an issue of importance? related careers will become a huge por- are the youngest, largest and fastestSend your letter to editor@miami growing demographic in South Florida tion of our future job market. todaynews.com, with Letter to the This was underscored during the and throughout the nation. They will Editor on the topic line. Great Recession when 2 million of the imbue our student population, our

On rebranding the county

Advance STEM careers for more young Hispanics

Make Your Views Known

there is still much more work to be done at the collegian level. To learn more, visit brinker educationinitiative.org Matthew Veritas Tsien

Donald Trump as diplomat Diplomacy is an important part of a President’s duties. There have been many women in positions of political leadership of their countries. England – Margaret Thatcher and we can add Queen Elizabeth; Israel – Golda Meir; Germany – Angela Merkel; India – Indira Gandhi; South Korea – Park Geun-hye. Can you imagine Donald Trump making the same comment to any one of them that he made to the Fox news reporter Megyn Kelly about blood coming out of their eyes or “wherever.” Our founding fathers and mothers would turn over in their graves – twice. Harry N. Turk

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WEEK OF THURSDAY, SEPTEMBER 3, 2015

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Matchmaking forum promotes public-private partnerships BY CATHERINE LACKNER

Miami-Dade County and the Miami Finance Forum are among the sponsors of “The P3 Pipeline: a Forum for the Private Sector,” a matchmaking event of sorts, set for Sept. 24-25 at Florida International University’s north campus. “Over the past few years, there’s been a lot of Edward Marquez interest in P3s,” said Edward Marquez, county deputy mayor and finance director. Public/private partnerships, or P3s, have been used internationally for years, he said, especially in Canada and Great Britain. “Lots of private-sector folks have been asking us how we are going to participate in the P3 arena,” he said. P3s are not new to MiamiDade County, he added, explaining that they have been executed successfully at Miami International Airport, at PortMiami, and for the construction of the PortMiami Tunnel. “The county has lots of projects in the planning stages, both funded and unfunded,” Mr. Marquez. “We don’t care if a project is done by the public or the private sector, as long as the taxpayers and the public get the best and most cost-effective service.” A long list of projects to be discussed includes roads, bridges, libraries, parks, aviation and cargo facilities, courthouses, correctional facilities, and water and sewer treatment plants. None of the projects is at the requestfor-proposals (RFP) stage, Mr. Marquez said, but some could advance to that point within the next Frank Rapoport year. “This is informational, so that when we do get to the RFP stage with some of these, people will know what we have in mind and,

Photo by Maxine Usdan

Successful public-private partnerships in this area include the PortMiami Tunnel, said Edward Marquez.

hopefully, will come up with some new ideas.” Traditionally, governments would fund projects, write specifications, and then award the construction to the lowest bidder, said Frank M. Rapoport, chief strategy advisor of the P3 Institute, which is producing the conference. “That model is broken,” he said. “P3s have flipped it on its head.” Though there are many ways to structure public/private partnerships, governments are increasingly attracted to models that require the private sector to assume more risk, he explained. “Teams that win don’t get repaid until they finish the project,” he said, which is an incentive to complete it on time and on budget. “The winning team is totally at risk, because they’re not going to get paid back unless the project is successful.” In some cases, the contractor is responsible for the operation and maintenance for a given number of years, which motivates the partner to build a quality project from the start, he added. Payback can come from user fees, a fixed sum from the public sector, or some other mechanism, Mr. Rapoport said. “P3s come in lots of flavors.” With returns in the 8% to

12% range, institutional investors including pension plans and life insurance companies have become very interested, he added. Florida, and especially Miami-Dade County, “are probably the most dynamic markets in the US” for these types of partnerships, and thus attractive to investors, he said. “Government doesn’t have

the money to get these projects started, but they can do that with P3s, and some of these projects are suitable,” he said. “This is simply an innovative project-delivery vehicle in which private industry is on the hook for building government assets The county wants the private sector to know they’re serious about this.”

“The basic purpose of the conference is to educate people to the opportunities that could be out there,” said Bob Burleson, president of the Florida Transportation Builders Association Inc., “and that includes opportunities beyond transportation.” Mr. Burleson, whose group is among the event’s sponsors, stressed the flexibility that P3s can provide. “Lots of times, there are ways to help advance projects that don’t hit the state or local balance sheets.” He cited the PortMiami Tunnel as a successful public/private partnership, particularly since the debt service was paid before it was built. But, he said, “I like to caution people that P3s are not a panacea – they don’t create money.” There are deals in which the private-sector partner doesn’t assume all the risk, and in those cases, debt service and other expenses must be met somehow, he said. “P3s are a really valuable tool to enable us to get some projects out quickly, but we need to make sure we recognize that it doesn’t solve the issue: we need more money overall,” Mr. Burleson said. “I don’t know any concessionaire who’s going to build out of the goodness of his heart.”

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Wealthy Chinese art-realty buyers explore Miami business BY CARLA VIANNA

Twenty-two wealthy Chinese art collectors with ties to real estate have expressed interest in visiting Miami this year to explore the city’s business environment and investment opportunities. Invited by Peng Lu, associate provost of international programs at Florida International University, the businessmen want to understand how business is done in the US. Mr. Lu believes Miami is the best place to do so, he told members of the Greater Miami Chamber of Commerce last week. Among the delegates are to be a Chinese developer and an individual referred to as the king of frozen food, Mr. Lu told a group of local executives during the first Asia-Miami Task Force meeting Friday. Seth Gordon, chair of the chamber’s newest committee and local public relations specialist, suggested involving Mayor Carlos Gimenez with the trade mission. “From the chamber’s perspective, if there’s going to be significant Chinese-Asian presence in Miami we have to prepare for it,” Mr. Gordon said, laying out the blueprint for last week’s discussion. While the Americas Linkage committee focuses on trade missions abroad and outbound recruitment of investors, the Asia-Miami Task Force plans to take an internal approach. “This is going to be more inbound. What can we do? What should we do to make Miami

Photo by Maxine Usdan

Andy Dominguez of Resorts World Miami listens as Peng Lu, FIU’s associate provost for international programs, tells chamber members about 22 wealthy Chinese who actively target Miami for business.

more Asia-savvy?” Mr. Gordon asked. Andy M. Perez, CEO of EB5 Visa Funds, said Florida lags behind other states because it lacks the infrastructure Chinese investors are looking for. More specifically, he said, Miami lacks a Chinatown. Mr. Gordon toyed with the idea of a “new, modern version of a Chinatown, in representation of modern-day China.” But Mr. Lu quickly jumped in, saying the fact that Miami

lacks a central Chinese community is, in fact, what attracts many investors to the region. “The reason Miami can compete with New York is because the Chinese come here, [and] easily put themselves in mainstream US society,” Mr. Lu contended. Rather than enclose themselves in a separate community within a community, he said, Chinese businessmen, investors, families, etc., want to “emerge themselves into US society, not steer themselves away.”

Notice of Public Budget Hearing NOTICE IS GIVEN that a Public Budget Hearing will be held by the Miami-Dade County Board of County Commissioners on Thursday, September 17, 2015, at 5:01 PM, regarding the County’s Budget and proposed millage rates for Fiscal Year 2015-16. The hearing will take place in the Commission Chambers, located on the Second Floor of the Stephen P. Clark Center, 111 N.W. First Street, Miami, Florida 33128. All interested parties may appear and be heard at the time and place specified. Miami-Dade County provides equal access and equal opportunity and does not discriminate on the basis of disability in its programs or services. For material in alternate format, a sign language interpreter or other accommodation, please call 305-375-2035 or send email to agendco@miamidade.gov. HARVEY RUVIN, CLERK CHRISTOPHER AGRIPPA, DEPUTY CLERK

For legal ads online, go to http://legalads.miamidade.gov

Public Notice NOTICE IS GIVEN that the Second Budget/Committee of the Whole Meeting of the Miami-Dade County Board of County Commissioners has been scheduled for Thursday, September 10, 2015, at 9:30 AM. This meeting of the Committee of the Whole is called to review and discuss the Mayor’s proposed Fiscal Year 2015-16 Budget, and the Commission Auditor’s findings, results, recommendations and proposed budget for the Board of County Commissioners and all departments and divisions that report directly to the Board. The Second Budget/Committee of the Whole meeting is scheduled to take place in the Commission Chambers, located on the Second Floor of the Stephen P. Clark Center, 111 N.W. First Street, Miami, Florida 33128. All interested parties may appear at the time and place specified. A person who decides to appeal any decision made by any board, agency, or commission with respect to any matter considered at its meeting or hearing, will need a record of proceedings. Such persons may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based. Miami-Dade County provides equal access and equal opportunity and does not discriminate on the basis of disability in its programs or services. For material in alternate format, a sign language interpreter or other accommodation, please call 305-375-2035 or send email to: agendco@miamidade.gov. HARVEY RUVIN, CLERK CHRISTOPHER AGRIPPA, DEPUTY CLERK For legal ads online, go to http://legalads.miamidade.gov

“In L.A., all services are provided by Chinese services. They

don’t use US services. Here, they need you,” Mr. Lu told committee members. “We don’t want to create a [cloister], but I think it would be good to have some services provided here that understand the Chinese culture,” Mr. Gordon said. Educating foreign investors on condominium ownership regulations and such other topics as EB-5 visas, which allow major investors to obtain green card status in the US, allowing them and their families to live in the US permanently, should make the committee’s priority list, members agreed. Airline connection, an increasingly popular topic within efforts to connect Asia’s and Miami’s business worlds, was also brought up. “The airport director is very focused on that,” Mr. Gordon said, although the pending question is whether enough demand exists to supplement a direct flight. The committee expects to meet a second time at the end of the month to further develop a solid goal lineup for the year ahead.

Miami Parking Authority talks up PayByPhone gain BY JOHN CHARLES ROBBINS

Miami was the first major US city to use modern PayByPhone mobile payment for public parking. The program’s success has been a model for others, and the Miami Parking Authority got the chance to share its story at the National Parking Association’s 64th Annual Convention & Expo. Perhaps the best part: The annual get-together unfolds this week in Miami’s backyard. The event – which brings together the most prominent experts in the parking industry – began Monday and concludes today (9/3) at the Fontainebleau Miami Beach. On Tuesday, Miami Parking Authority COO Alejandra Argudin, and Barrie Arnold, chief commercial officer of PayByPhone, delivered a presentation showcasing the parking agency’s success in leveraging new technology to improve efficiency, increase revenue and reduce maintenance costs. It was in 2008 that the parking authority, guided by the city’s Off-Street Parking Board, cut a deal with new company PayByPhone. By downloading an application to their smartphones, drivers are able to pay for parking in on-street and off-street parking spaces managed by the authority. It has led to the gradual removal of traditional parking meters throughout the city. In December 2014, the authority began absorbing the PayByPhone convenience fee of 35 cents per parking session. Since then, consumer use of the PayByPhone technology has increased dramatically, the authority reports.

In June, authority CEO Art Noriega reported the agency had surpassed its PayByPhone goal of 50% use, noting that 52.7% of all on-street parking revenue came from PayByPhone. In July the agency reported the user rate reached 56% for the mobile online application, and the number of people registered rose to 412,000. “Wow. Amazing,” was the reaction from Stephen Nostrand, a member of the Off-Street Parking Board. In May, revenue from PayByPhone was $783,260. Ms. Argudin said other municipalities had been asking for details on the successful program. “We made the gold standard,” she said. You can register with PayByPhone through the website: www.paybyphone.com. Registration is free. When you register, the system will prompt you for information such as your mobile telephone number, email address and credit card that will be used to pay for parking. Once registered, you will need to download the PayByPhone mobile app. Any Smartphone, such as Apple iPhone, Android or Blackberry can use the service. A PayByPhone feature alerts you via text message when your parking session is about to expire, allowing you to extend the time without having to walk to the vehicle and avoid a citation. Motorists can also use PayByPhone in neighboring Coral Gables and South Miami. The National Parking Association, founded in 1951, has more than 2,500 members and represents all facets of the parking industry.


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WEEK OF THURSDAY, SEPTEMBER 3, 2015

Brickell City Centre shifts target for a 12-story office tower BY CARLA VIANNA

Brickell City Centre announced Tuesday the rebranding of its office component to incorporate two Class A office buildings equaling 260,000 square feet, both of which will be ready by year’s end. Although the project long has been known to include the two office buildings, the rebranding of its logo and subsequent announcement comes at a strategic time, said Jack Lowell with Pointe Group Advisors, now part of Colliers International. With delivery about six months out, Swire Properties – the developer behind the giant mixed-use project at the center of Miami’s urban core – is pushing to attract tenants for both office towers: Two Brickell City Centre, and the remaining space in its other, newly branded tower, Three Brickell City Centre.

The new logo embodies both towers by adding an additional dot to represent Three Brickell City Centre, Swire told Miami Today. Three Brickell City Centre was originally designated as a wellness center, but current market conditions swayed the developer elsewhere. The rebranding will make sure tenants in the market know that both buildings are up for lease as office space, without the medical wellness center component, Edward Owen, Swire’s office leasing manager, told Miami Today on Tuesday. The reason for dropping the center and adopting more office space was to “further Brickell’s growth as a leading international business hub,” according to a press release. Akerman LLP, a major law firm, has leased 80% of Three Brickell City Centre. The lease was signed last year, and

until now the tower was usually referred to as Akerman’s building or some variant of that. Rents are more than $50 a square foot in key office towers in Brickell, including 801 Brickell Center and 1450 Brickell, Mr. Lowell said. “There’s clearly a good increase in the market with the amount of leasing activity and the increase in rental rates that’s given everybody the confidence that it’s probably time to think about another office building,” said Jonathan Kingsley, executive VP at Colliers International South Florida. The average asking lease rate in the Brickell area is $41.08, which is higher than all other areas of the county, according to CBRE’s second quarter market report. The Brickell area has a total office vacancy of 12.3%, leading the average office vacancy for Miami’s cen-

tral business district, which totals 15.7%. “Given the strong conditions on Brickell Avenue for Class A office space, the record rent growth in the last two years, the record occupancy – seen both in downtown as well as Brickell – there’s great stability in the Class A market,” Mr. Kingsley said. “Swire has recognized that and taken advantage of this increased level of activity.” Mr. Owen told Miami Today that Swire is negotiating with potential tenants for Two Brickell City Centre, which is attracting financial service providers and law firms, although he would not release names. Mr. Lowell pointed out that most tenants whose leases are up next year have already made their decisions. There have been some new entries within the market, however, he said, making the supply of prospects “pretty good.”

Downtown Doral opens school, prepares to add first phase BY CARLA VIANNA

Codina Partners’ $1 billion mixed-use project in Doral is quickly embodying its goal to create a live, work, play – and learn – environment. Children from Kindergarten through third grades marched into the developer’s evolving Downtown Doral project and reported to their first day of school at the new Downtown Doral Charter Elementary School on Aug. 24. “The next 12 months is going to be very exciting for Downtown Doral,” said Ana-Marie Codina Barlick, CEO of Codina Partners. “People will really be able to understand our vision much better than you would’ve even two months ago.” The school opened for prekindergarten and kindergarten through third grades on MiamiDade County’s first day of school. About 500 students are enrolled, Ms. Codina Barlick said. Next year, fourth grade will be added; and fifth the following year. The first phase of the 120acre development’s retail and restaurant component, all 80,000 square feet of it, will be

Ana-Marie Codina Barlick: next 12 months will be very exciting.

opening in December or January. Half of the space will be taken up by stores, while the other half restaurants. Most of the space is leased, and tenants are now completing their own interiors, she said. Among the tenants are Continental Bank; Dragonfly, an Asian restaurant chain; and GDB Fashions. The first condo tower – 5252 Paseo – was completed this year and is 100% sold out. Residents are expected to move in January. The second tower – 5300 Paseo – has 60% of its units sold, and will be delivered mid2016, Ms. Codina Barlick said. The average cost of the residential condos within the project

is $300,000. Eighty-five townhomes are also on their way, she said, with a number of them already occupied with residents. Construction on the remaining homes should be completed before year’s end. The developer won’t quit on its Doral transformation any time soon. “This is a 120-acre-project,” Ms. Codina Barlick said. “It’ll take a number of years to build. We’ll just continue, as we finish one phase, to move into the next one.” There will eventually be a last phase, but that’s about five to seven years down the road, she said. More announcements will come this year, she said, including a grocery store. A second phase of retail construction (this one composed of 60,000 additional square feet) is to begin construction mid2016. Phase two is now being pre-leased, Ms. Codina Barlick said. Eight to 10 residential towers are expected in total, as well as another three office buildings, including a Class A building now

Maria Juncadella: construction developed more office prospects.

in its planning stage. “[The] 8355 building will be located between the 8333 and Doral’s Government Center. Prospects include new-to-market national and international firms,” said Maria Juncadella, VP principal at Fairchild Partners, the real estate brokerage leasing office space in Downtown Doral. Overall, the project promises more than 1 million square feet of office space. Six office buildings now stand, four of which existed on the property when it was purchased. 8333 Downtown Doral on 53rd Street was completed in 2010. Also on that street is

the 7950 Office Condominium. The Davenport, the Dawson, the Spokane and the Trenton buildings are the renovated legacy buildings. The new buildings are being leased at $32.50 per square foot, while the legacy buildings are going for $28 a square foot. “In the last six months with all the construction – the residential towers and the additional townhomes coming online – that has created many more prospects for the office portion,” Ms. Juncadella said, adding that an exclusive gym and media conference center will be built at the center of the office campus. Fairchild Partners has closed on 20,000 square feet of new leases in the park this year and is currently negotiating another 20,000-plus, she said. Dentaquest relocated from Coral Gables and expanded from 10,000 to 23,000 square feet, while Aerotek relocated from Miami Lakes and expanded to 10,000 square feet. Other tenants include Mediterranean Shipping and Hamburg Sud, both of which also recently expanded.

Volatile stocks don’t ruffle realty B Y C ARLA V IANNA

Miami’s commercial real estate market has felt little material impact from the current slide in US stocks, although the increased volatility did strengthen the real estate’s reputation as a safer refuge for investors. “This is more of a reminder, or a little bit more of a wake-up call than an actual call to action,” said Ken Krasnow, executive managing director of South Florida at Colliers International. “In general, real estate has proven to be the preferred asset class over the years, even with the latest stock market run that we’ve been on.” In the long-run, real estate outperforms the stock market in terms of return on investments, he added. Volatility

pushes investors to take note of that. Buying and selling real estate is a more sophisticated kind of investment, which usually calls for an operating platform, said Tony Arellano, executive VP of Metro 1 Commercial. Although real estate is looked at as a traditionally safe harbor for longterm investment, a slight slide in stocks won’t necessarily catalyze a flood of capital to the commercial market. “It’s just a part of diversified strategies,” Mr. Arellano said. “[Investors] may allocate more money to real estate when there’s more volatility in the stock market, but at this time there’s more money than deals to begin with. So, I don’t think having more cash in the market would help anybody.” Capital is certainly not an issue in today’s local commer-

cial real estate market, both experts agree. “The challenge is finding quality assets that are actually going to be traded,” Mr. Krasnow said. From a macro perspective, a global economic slowdown may drive flight capital to Miami, Mr. Krasnow said. Overall, he contends, the short-term stock volatility is beneficial to Miami’s real estate market; it encourages higher net worth investors to move cautiously away from the stocks and into real estate’s safer harbor. Mr. Arellano, on the other hand, doesn’t believe China’s volatile stock market has any short-term impact on today’s local commercial market, which is based on fundamental economic drivers, he said, all of which are relatively strong in the US economy.


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WEEK OF THURSDAY, SEPTEMBER 3, 2015

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