WEEK OF THURSDAY, JANUARY 26, 2017
A Singular Voice in an Evolving City
WWW.MIAMITODAYNEWS.COM $4.00
OUTLOOK 2017
Local film industry flickers with incentives gap, pg. 13 MORE VISITORS, MORE HOTELS: The Greater Miami Convention & Visitors Bureau broke news at Mayor Carlos Giménez’s State of the County address last week, reporting a 2% increase in visitors for 2016. “We sold more rooms than ever and built more, too, which support a lot of jobs,” said Rolando Aedo, bureau chief marketing officer and executive vice president. Speaking to the Trade and Tourism Committee Jan. 19, standing in for bureau President and CEO William D. Talbert III, Mr. Aedo said this success was despite the Zika scare, problems in Brazil and strength of the dollar. Looking to 2017, Mr. Aedo said 14 more hotels will come online, adding more than 2,000 rooms. Mr. Talbert was attending the US Conferences of Mayors, which Miami will host in June, “a tradition to be there and promote” Miami. Commissioner Rebeca Sosa, chairing the meeting, said when she officially becomes committee head next month she will excuse bureau officials from reports unless there’s something new.
Most job categories expected to continue to expand, pg. 14
The Achiever
Plans to nail down new CEO in March By Susan Danseyar
FLYING HIGHER: Miami International Airport set a record in 2016 by serving nearly 44.6 million travelers, up 234,000. It was the seventh consecutive year of passenger growth. The airport broke its 2015 record for annual freight traffic, too, up .37% to 2.18 million tons, the Miami-Dade Aviation Department said. Annual passenger traffic grew 0.53%. While travel between Miami and Brazil alone – the airport’s top international market – fell 600,000 passengers in 2016, increases in other countries and domestically kept the airport on an upward trend. Domestic passengers rose 0.26% to 23.2 million, while international traffic grew .82% to nearly 21.4 million. SHUT IT DOWN: Miami city commissioners have passed a resolution by Francis Suarez urging the Florida Legislature to ban the red light camera program in its entirety, as proposed by Sen. Frank Artiles and Rep. Brian Avila. Their bills propose to repeal the Mark Wandall Traffic Safety Act, removing the authorization of cities such as Miami to install and use red light cameras. “I have always advocated against red light cameras,” Mr. Suarez said. Citing the Department of Highway Safety and Motor Vehicles 2015 Red Light Camera Report, he said car crashes have actually increased at intersections with red light cameras. GAS PRICE DIPS: Miami retail gasoline prices fell 2.2 cents a gallon in the week ended Sunday to average $2.42 per gallon, according to GasBuddy price-tracking service. That left local prices averaging 44.2 cents per gallon higher than a year earlier and 4.2 cents a gallon higher than a month earlier. National prices were lower, averaging $2.30 a gallon.
Photo by Cristina Sullivan
Lior Haiat
Consul general sees Miami as Israel’s Latin America hub The profile is on Page 4
River interests can’t swallow pair of restaurants
By John Charles Robbins
If it were up to the Miami River Commission, it would bar restaurants planned for two riverfront sites zoned marineindustrial. As it is, however, the decision is left to the city planning director after the negative river commission votes. A rare special river commission meeting Monday considered two separate plans for restaurants in vacant riverfront buildings: nShahab Karmely and his KAR Properties propose River Arts Complex, to transform three warehouses into a dining and event space at 125, 129 and 131 NW South River Drive. It includes a partnership with Yachtlife, a private club with yacht sales and rentals. The plan sets aside one commercial fishing boat slip to provide fresh seafood catches to the restaurant and public. n Henry Greenberg, with Longmore LLC, proposes remodeling two buildings at a former Anchor Marine boatyard at 961 NW Seventh St., with one becoming a 200-seat restaurant with outdoor dining, the other storage and an office for a
Agenda
Beacon job lineup solid
commercial yacht charter service, with one slip for fresh seafood deliveries for the restaurant. While both sites are zoned marineindustrial, a restaurant would be allowed with special permission or by warrant – a special conditional use that the planning director decides, subject to appeal by neighboring property owners. A motion to recommend a warrant for River Arts Complex failed Monday on a vote of 6 “no” to 5 “yes.” A motion to recommend denial of the Longmore plan passed unanimously. Fran Bohnsack, former executive director of the Miami River Marine Group, spoke against the restaurants on marine-industrial land. The not-for-profit trade association supports the “working river.” Ms. Bohnsack said she’s been fighting for the working river nearly 20 years and feels “invested in it.” She said it wouldn’t be right to back approval of the restaurants on marine-industrial land. She said there’s been no demonstration that the restaurant is an accessory use and, in fact, she sees it as a major use. “In my view, it is a betrayal,” said Ms.
Bohnsack. “It’s a working river. Give it time to evolve. Don’t give away what’s been reserved for [the marine industry].” The River Arts Complex has met objections all along from Cory Offutt, owner of a neighboring boatyard. For months he’s spoken against the plan and the loss of marine-industrial property. He says a restaurant with outdoor dining is incompatible with a loud, smelly boatyard. Mr. Offutt’s lawyer, Tucker Gibbs, said there’s no evidence the restaurant would be an accessory use, and in fact he said it would be the site’s primary use – “the tail wagging the dog.” The Longmore proposal brought out opposing Spring Garden Historic District residents. The site is directly south of the long-established residential neighborhood. Residents were concerned about potential restaurant noise, particularly from outdoor dining and entertainment. The river commission voted to recommend that the city amend its zoning code for similar warrant applications by inserting criteria for marine-industrial as the primary use and other uses allowed by warrant to be measured as the “secondary/accessory use.”
The search for a Beacon Council CEO is right on track, with a wide range of strong local and national candidates to run the county’s official economic development partnership, says Chair Jaret L. Davis, co-managing shareholder of Greenberg Traurig’s Miami office. Korn Ferry, hired to hunt for a president and CEO soon after Larry Williams resigned and moved to Atlanta, has followed the mandate for a comprehensive search and offered nominees experienced in economic development and in the public and private sectors, Mr. Davis told Miami Today this week. “We were quite happy with the cross-section,” he said. “The anticipated timeline is by the end of the first quarter to narrow down and interview our first slate of candidates, next down to the finalists and then finalize our decision by the end of the first quarter.” SheldonAnderson, a past Beacon Council chair and past president and CEO of Northern Trust’s southeast region, was named interim president and CEO in October. Mr. Davis said he’s quite proud of the committee’s diversity. One third are African American, one third Hispanic. “The committee represents a true cross section from the community with members in fields ranging from real estate to law, financial services, aviation and the media.” Additionally, Mr. Davis said, the team is 50% male, 50% female, with half being former Beacon Council chairs and the rest including companies the council helped. Committee members include New Leaders Taskforce Chair Maya Tzur, a branch representative for Bank United; Sid Levin, founding chair of the Beacon Council; and Pandwe Gibson, founder of EcoTech Visions, a company the Beacon Council aided. “We felt it was important to have representation on the search committee by an outside company the Beacon Council has helped,” Mr. Davis said. “Someone we assist will know what works.”
DOWNTOWN DIGS INTO SUPPORT FOR A RIVER TUNNEL ...
2
$18 MILLION KEEPS DOWNTOWN TRI-RAIL TIE ON TRACK ...
8
ALL-STAR GAME SUPPORT POINTEDLY SKIPS MARLINS ...
2
NEARLY 5-YEAR SUPPLY OF LUXURY CONDOS FOR SALE ...
9
FIRST GAME-CHANGER GRANT NEARS THE FINISH LINE ...
3
AIRPORT SIGNS CONTRACTS CRASH AS NO LOCALS WIN ...
10
VIEWPOINT: CONVERT STADIUM QUERIES TO REAL BIDS ...
6
CITY DEVELOPMENT PLAN AIRING RATED IN DECIBELS ...
17
2
MIAMI TODAY
TODAY’S NEWS
The Insider
Downtown digs into a river tunnel By Catherine Lackner
NEW GOALS FOR ONE GOAL: The Beacon Council’s One Community One Goal plans to shift priorities in an enhanced strategic plan under two new private sector co-chairs, Penny Shaffer and Maria C. Alonso, the two announced last week. One Community One Goal aims to rally the community around building significant and higher-paying jobs in a series of targeted industries. Penny Shaffer Dr. Shaffer is market president of Maria Alonso Florida Blue; Ms. Alonso is senior vice president, market manager enterprise business & community engagement for Bank of America. They succeed co-chairs Nelson Lazo, CEO of Doctors Hospital Baptist Health, who is now Beacon Council chair-elect, and Matt Haggman, Knight Foundation Miami program director.
Directors of Miami’s Downtown Development Authority heard Francis Suarez, Miami commissioner and mayoral aspirant, ask their support Friday for a tunnel beneath the Miami River just east of Brickell Avenue. The downtown authority has waged battle with the US Coast Guard, Florida Department of Transportation and Miami River Commission over what it says are improper openings of the Brickell Avenue bridge that bring traffic to a standstill downtown and in ASSET MANAGER MOVES IN: TH Real Estate, a division of TIAA surrounding areas. So far, it’s a Global Asset Management with $96 billion in global real standoff, with the authority calling estate investments under management, has opened an for help from Sen. Bill Nelson and office in Miami at 801 Brickell Ave. to manage activity the river commission getting supin the Southeast and in Latin America. Manuel Martin, port from Rep. Ileana Ros-Lehtinen. who had headed the company’s activities in Spain and “It doesn’t take a rocket scientist Portugal, will head the office. TH Real Estate says it to understand that one of our bigmanages $10.5 billion in assets in 36 million square feet gest challenges is the inability to in the Southeast and Latin America, including Waterford get around Miami when that bridge at Blue Lagoon office park, 701 and 801 Brickell office buildings, and the Village of Merrick Park shopping Manuel Martin is up,” Mr. Suarez said. The bridge center on mostly city-owned land in Coral Gables. opens more than 26,000 times per GRANT FOR RECYCLING: Miami commissioners have accepted a 2016 year, he said, costing millions in lost Coca-Cola/Keep America Beautiful Public Space Recycling Bin Grant. The productivity due to snarled traffic. city was chosen to receive 90 recycling bins, valued at about $32,500, to “Downtown creates $4.5 bilbe placed in public spaces to support city-wide recycling efforts. The city lion in sales tax revenue, and that must buy 30 matching recycling bins for up to $10,070. doesn’t count future growth,” he ESTEFANS HONORED: Joe DiMaggio Children’s Hospital, part of the said. “Downtown deserves this, and Memorial Healthcare System, will it would cost about one-quarter of present its “Joe DiMaggio American what the PortMiami tunnel cost.” Icon Award” tonight (1/26) to MiThe first step is getting the project ami’s Emilio and Gloria Estefan for on the Florida Department of Transrepresenting high values and having influenced society with their contributions. The event begins at 6:30 p.m. at the Diplomat Beach Resort, 3555 S Ocean Drive in Hollywood. The stand-alone hospital facility has Emilio and Gloria Estefan 224 licensed beds and seven operating rooms. Earlier winners of the award have included the Miami Heat’s Pat Riley and former President Bill Clinton.
UM HELP ADS UP: Applications are being accepted through Jan. 27 for quality non-profits to get the free aid of PhilADthropy, a University of Miami initiative in its eighth year that provides million-dollar advertising campaigns to not-for-profits on a zero-dollar budget. For 25 straight hours, School of Communication students will use their design, writing, social media film and marketing skills to complete entire campaigns that the 12 chosen non-profits can use. The creative activity will take place on campus starting at 11 a.m. Friday, Feb. 10, and continuing to noon Feb. 11. Details, Meryl Blau, mblau@Miami.edu. To apply, go to www.philadthropy.com. GUN BUY BACK: Miami-Dade County Commissioner Sally A. Heyman is partnering with Miami-Dade Police Department, City of North Miami Councilman Scott Galvin, City of North Miami Police Department and the police departments of Aventura, Bay Harbor Islands, Biscayne Park, North Miami Beach and Sunny Isles Beach, along with the Miami-Dade County Association of Chiefs of Police, to sponsor a Safer Communities Gun Buy Back. Anyone can drop off a firearm with no questions asked, from 10 a.m. to 2 p.m. Feb. 18 at the SoLe Mia sales office site, 15045 Biscayne Blvd. In exchange for turning in a gun, individuals may receive a gift card for local retailers up to $200. The event is intended for the general public. Commercial firearms dealers are not eligible for rewards. Free gun locks for safe gun storage will be offered. Details: (305) 940-9980; mention Gun Buy Back. GIFT TO VULNERABLE: Commercial realty broker Edie Laquer is establishing the Edie Laquer Foundation Women and Children’s Rights Attorney Chair at Legal Services of Greater Miami, for which there will be a celebration with over 100 people Feb. 9 at the Rubell Family Collection in Wynwood. The gift aims to ensure the most vulnerable – women and children – will always have an attorney representing them in the civil justice system, and that their right to safe, affordable, decent housing along with access to health care will always be protected by legal services staff. “We are so very grateful to Edie for being a trailblazer and establishing the first endowed attorney chair at Legal Services,” wrote Executive Director Marcia Cypen. “Her vision and philanthropic leadership will make a lasting impact on women and children in our community for generations to come.” CITY WANTS WEB FEEDBACK: Miami has released an “Alpha” website – alpha.miamigov.com – and wants you to take a peek. Built over the course of just a few weeks, the Alpha is not a replacement for the city’s existing site at miamigov.com but is a prototype of a design intended to be more service-driven, responsive and user-friendly. It incorporates mobile device compatibility, easy navigation, better search capability, data-driven content, ADA-compliant design and a new layout featuring local art. The city used surveys, met with staff and analyzed web traffic to shape the site’s development. Users can continue providing feedback via the link on the Alpha site. The feedback is to play a role in the redesign of the city’s entire website in coming months. The Alpha site features select services and topics, showcasing more conversational language and the ability to request services such as pothole repair and tree trimming through the site. CORRECTION: In the article “County to start water transportation with two express routes,” page 9 in the Jan. 19 edition, the builder of a dock for water taxis near the Venetian Causeway should have been identified as the City of Miami Beach.
WEEK OF THURSDAY, JANUARY 26, 2017
‘It doesn’t take a rocket scientist to understand that one of our biggest challenges is the inability to get around Miami when that bridge is up.’ Francis Suarez portation’s five-year plan, he said. “If it gets on the five-year plan, it’s going to happen.” It’s also crucial to have the tunnel ranked as a top-tier priority by the Metropolitan Planning Organization, he said. “I’m here to get your support, just as you supported Tri-Rail,” Mr. Suarez told the group. The downtown authority contributed $1.3 million to the effort to bring commuter trains downtown. He
likened the tunnel to the train effort. “A lot of entities were involved, and they each put in something. This probably will require multiple funding sources, too.” He said he has asked Bruno Barreiro, county commission and authority board member, to drum up support from the county, and has prepared a packet of information for the secretary of the Florida Department of Transportation. “From the moment I came in, we’ve been dealing with this issue, and it gets quite heated,” said Ken Russell, authority chair and Miami commissioner. “I’ve been trying to find a peaceful middle ground, and I’ve traveled enough to see that other cities have done this.” “I’ve been begging for a tunnel since Day One,” said board member Alan Ojeda, who is president of Rilea Development Group and who chairs the authority’s Transit, Connectivity and Mobility Committee. The idea has been talked about for at least 15 years, said board member Gary Ressler, who is a principal of the Tilia Family of Companies. “It’s a great idea,” said board member Richard Lydecker, who is senior partner of the Lydecker-Diaz law firm. “We have lobbyists,” both locally and in Tallahassee. He suggested getting all of the lobbyists together to gather support for the issue in both jurisdictions.
Downtown’s $50,000 all-star game gift excludes all support of Marlins By Catherine Lackner
While directors of Miami’s Downtown DevelopmentAuthority agreed to donate $50,000 to baseball’s 88th All Star Game in July, some were careful to point out that they were doing so to boost tourism downtown, not to support the Miami Marlins. The Marlins, along with Major League Baseball, will host the related events July 7-11. It’s the first time the baseball classic, which dates to 1933 and is expected to generate about $70 million in economic impact, will be held in Miami. The five days of events will bring in thousands of visitors and well as television and radio crews from 57 countries, said Kim Stone, who is executive vice president and general manager of The Heat Group and of AmericanAirlines Arena. “This is what we want downtown.” “I’m generally not in favor of spending money,” said board member Jerome Hollo, vice president of Florida East Coast Realty. “My question is, do we know where the money is going to go?” The Marlins have agreed to put pamphlets about downtown attractions in each room of the 18 hotels that are hosting visitors to the event, said Lauren Bourgoyne, authority team leader of marketing and communications.Additional money will be spent on signage about downtown for 12 events, she added. All Star venues include the University of Miami, Florida International University, AmericanAirlines Arena, Bayfront Park, Pérez Art Museum Miami, Miami Beach Convention Center, Hotel InterContinental and Marlins Park.
The game itself will be broadcast to an estimated 100 million homes and a press corps of more than 2,500 is expected. “I’ve heard their presentation, and I continue to oppose this,” said board member Gary Ressler, who is a principal of the Tilia Family of Companies. “It’s ironic that the Marlins should come to us for $50,000, when they lied to this community and they have zero presence in it. I consider this request insulting.” “We’re hoping for repeat business downtown; that’s where you get your return on investment,” said board member Alvin West, who is senior “We can’t pout and be angry vice president and chief financial about it forever,” said Alvin West. officer of the Greater Miami Convention & Visitors Bureau. “If we don’t invest the money, we don’t get that return. I know how everyone We want to hear from YOU! feels about what happened. But the Phone: (305) 358-2663 stadium is here, the team is here. We can’t pout and be angry about Staff Writers: it forever.” Camila Cepero “Al and Gary are both right,” said ccepero@miamitodaynews.com board member Richard Lydecker, Susan Danseyar senior partner of the Lydecker-Diaz sdanseyar@miamitodaynews.com law firm. “But this is our opportunity to create an experience for visitors, John Charles Robbins jrobbins@miamitodaynews.com to make sure their experience is a good one.” Letters to Editor “The All Star Game is really editor@miamitodaynews.com more about Major League Baseball People Column than about the Marlins,” said board people@miamitodaynews.com member Greg West, who is senior vice president of ZOM Living. Michael Lewis mlewis@miamitodaynews.com “I’m not necessarily a baseball fan, but we have to look at this in context,” said authority chair Ken Russell, who is a Miami commisLike us: sioner. “It’s our job to promote Miami Today downtown.” The board agreed to approve Follow us: the expenditure, with Mr. Ressler @MiamiTodayNews dissenting.
WEEK OF THURSDAY, JANUARY 26, 2017
TODAY’S NEWS
MIAMI TODAY
3
First of game-changer development grants nears finish line By Susan Danseyar
After two years of negotiations, the Carrie Meek Foundation is closing in on having the first project to win preliminary approval to receive an economic development grant from Miami-Dade. It’s for a commercial facility at Opalocka airport that’s moving on to certification. In 2014, the county commission voted to award $5 million from the Building Better Communities General Obligation Bond program to the non-profit, contingent upon a final agreement concerning primarily job creation and related requirements. Last week, the Miami-Dade Economic Prosperity Committee unanimously recommended that the full commission approve the final agreement for the project. It was 2004 when the Building Better Communities General Obligation Bond program under which the grants are being made was approved. A pot of $75 million was set aside for projects that were considered game-changers in local economic and job development. A cluster of alternative projects has won commission approval for slices of the funding when previously approved ones fell through; however, other than the Carrie Meek Foundation project, all others in line are still negotiating with the county.
Inspector General Mary Cagle is concerned about a jobs cutback.
Commissioner Dennis Moss: not all are qualified for $50,000 jobs.
Commissioner Xavier Suarez: it “is coming in like a freight train.”
The Meek Foundation hired developer Foundry Commercial of Orlando to complete its fourphase, commercial warehouse complex with aviation and nonaviation components at the airport where Amazon is expected to be a tenant. The project is to create 1,000 permanent jobs for five years, according to the agreement, with 500 at an average annual wage ranging from $27,499.68-$24,017, depending on whether the computation includes benefits, which is the county’s living wage. The other 500 jobs are to pay whatever is minimum wage per law. According to a memo from Deputy Mayor Jack Osterholt, the applicant has agreed that at least 700 certified new jobs at the distribution project will be available to qualified residents
of Miami-Dade, and to satisfy the promise they will advertise at least twice in a local publication or other media and hold a minimum of two job recruiting fairs. The project is projected to cost $92 million, including public infrastructure of $5 million. Before the vote, however, some committee members questioned whether the county should require that the positions in job-creation projects pay annual salaries at or above the average county living wage. Inspector General Mary Cagle, who attended the Jan. 19 committee meeting, in a report to commissioners expressed concern with a “significant” job reduction and that an average of the county’s living wage can be misleading. “That doesn’t mean all 500 people will be paid the county’s living wage,” she said during the
meeting. “It’s an average. It’s phenomenal this project is going forward, but if we’re giving them $5 million and the program is set up to bring jobs to MiamiDade and that they be good ones, wouldn’t it be wonderful if they were all paying the living wage?” When commissioners asked if it might be better for the county to set standards for wages, Deputy Director for the Department of Regulatory and Economic Resources Leland Salomon said asking that a minimum wage be set for these new jobs is a good concept and a fair request. Yet to institute such a requirement in the middle of a program is another matter, he said. “I’m not sure what effect that would have now when we’ve been negotiating for two years,” Mr. Salomon said. “It’s the nature of the beast
that when we’re giving money to developers, we’re saying you have to certify these jobs. But it’s not the developer who’s doing the hiring; it’s the tenant, which adds another layer.” Mr. Salomon also reported that 500 of the jobs will pay the county’s living wage. Commissioner Barbara Jordan, who has been working with the Meek Foundation and Foundry for years on the project, said 100% of the 1,000 jobs will be certified and, while it’s unfortunate the county didn’t negotiate specific minimum requirements for salaries, she has already taken steps toward improving the situation. Commissioner Dennis Moss said everyone would love to have $50,000 jobs in Miami-Dade, but not everyone is qualified for them. Rather, he said, some need entrylevel positions and he’s grateful jobs are being created at all and that people will be receiving livable wages. “All jobs created in MiamiDade based on the industry are not going to be Silicon Valley jobs, much as I’d love to have them,” Mr. Moss said. Committee Chair Xavier Suarez said none of the other projects given preliminary grant approval is ready to produce 1,000 jobs and this one “is coming in like a freight train.”
Americas Linkage travels target Hong Kong signing By Camila Cepero
The Greater Miami Chamber of Commerce is jetting off to Asia in April for an Americas Linkage business development trip to China and Hong Kong. The delegation is to make stops in Guangzhou, Shanghai, Tianjin and Beijing and Hong Kong from April 13-25. Americas Linkage is a chamber program that facilitates business development opportunities through a series of business missions throughout the world. Linkage missions include country briefings, business meetings, seminars and networking opportunities. “During our trips we try to elevate the business profile of South Florida,” said Hernando Gomez, chair of the chamber’s International Business group and director of business valuation and litigation support at MBAF. “Basically, our role is to educate and facilitate business opportunities,” Mr. Gomez said. “It’s a hard endeavor to put Miami on the map,” he said. “Americas Linkage has been around for many years and has concentrated on better-known markets like Latin America, Europe, Spain and France, but for a few years we’ve been trying to put efforts together to understand what is going on in Asia and see how our members can benefit from it.” This mission will be the chamber’s third official trade mission to the region and will take a maximum of 20 people. Chamber officials hope to sign a memorandum of understand-
ing with the Hong Kong General Chamber of Commerce. “Hong Kong is a good gateway for companies who want to do business in China or in Asia,” Mr. Gomez said. “Hong Kong is a large recipient of Chinese investments as well, so companies don’t have to go to mainland China to take advantage of those investments or those investors.” Just as Miami serves as the gateway to LatinaAmerica, he said, Hong Kong serves as the gateway to Asia. In the past, delegations have included attorneys and bankers and representatives from sectors such as the financial services, real estate, trade, and import-export. This time around, organizers plan stops at the Hong Kong Electronics Fair and Guangzhou’s Canton Fair, one of the largest import-export trade fairs in Asia. “The American Chamber of Commerce in South China has a mandate that if businesses want to go global, they need to go to the US and do business here,” Mr. Gomez said. “Most of them are concentrated in states familiar to them, like New York, California and Texas, so we’re trying to beat that and see what opportunities we can offer them here.” The delegation is also planning to visit the Florida International University campus in Tianjin. “I think Hong Kong and Miami are very similar,” Mr. Gomez said. “Hong Kong connects the mainland and we connect the US, and we’ve been very warmly welcomed, so we want that type of partnership to continue.”
CHANGING THE FUTURE OF
CANCER CARE
Miami Cancer Institute at Baptist Health South Florida brings world-class cancer care to the South Florida community. The Institute’s new leading-edge facility combines the most advanced technology with world-renowned cancer experts, surrounding patients and their loved ones with a team dedicated to their physical and emotional well-being. As Florida’s only member of the Memorial Sloan Kettering Cancer Alliance, Miami Cancer Institute brings unparalleled discoveries and cutting-edge research right here to South Florida. With its doors now open, the Institute provides hope and healing to patients and their families.
Become a Miami Cancer Institute champion of cancer research and treatment by donating at MiamiCancerInstitute.com.
A not-for-profit organization supported by philanthropy and committed to our faith-based charitable mission of medical excellence
6
MIAMI TODAY
VIEWPOINT
WEEK OF THURSDAY, JANUARY 26, 2017
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
Convert interest in running marine stadium into formal bids Interest by four big-name operators in running a restored Miami Marine Stadium is exciting. But it’s a long road from inquiries to actually running the site. Before the city requests proposals – a process that Michael Lewis should end before construction begins – the city itself must make key decisions that will in turn shape the request for an operator. Mayor Tomás Regalado told Miami Today two weeks ago that the Miami Heat, Miami Dolphins, Live Nation and SMG have all asked about running the restored stadium. Operators of the Heat in particular, he said, have asked a number of times. These candidates all are highly reputable. All but the Dolphins already operate government-owned facilities in Miami-Dade County. None is the kind of fly-by-night operator that plagued failed city-owned waterfront deals in past years. With such good candidates, the city should get expressions of formal interest that actually put something on paper. So, what should the city want on that paper? The mayor told us the city would maintain the stadium – using income from a lease with
nearby marina operators – much as government maintains AmericanAirlines Arena and Marlins Stadium. He also mentioned a ticket surcharge on patrons. He didn’t cite any payment from stadium operators. The benefit seems to be that the city itself wouldn’t lose money on operations as it will on maintenance and restoration. That means taxpayers would fund the $45 million restoration and the operator would get a free ride to generate as much profit as possible from ticket sales, concessions, subleases, sponsorships, advertising, naming rights, parking revenues and any other revenue streams. That’s similar to the baseball stadium deal with the Marlins – the public builds and maintains a site and the operator gets all the revenues. It’s a poor model of public risks and operator rewards. We trust that city officials’ formal request for an operator will read far differently. Whether through a flat fee or revenue sharing, the stadium operator ought to pay part of costs to both renovate the stadium and maintain it. The high-level interest by potential bidders should obviate any free ride for the operator of premium Virginia Key city-owned land. The second decision is the length of a lease. A short term offers maximum flexibility to both sides but provides the least insurance to the city that taxpayers won’t have to run the stadium if it isn’t profitable, as it wasn’t when the city ran it until it closed in 1992. Another key decision is what uses the city will allow. An operator with free rein would
pay more to use the site than one restricted to powerboat races or concerts. A site that may also be used for meetings, conventions, consumer shows, trade shows, weddings, or a dining venue like the city’s Jungle Island would be more profitable because a good operator would keep the venue active as many days and hours as it could. A corollary decision is what else the city will make available to the stadium operator. The flex park surrounding the stadium on three sides has room for parking, tents, trade shows, concessions – in fact, whatever the contract allows. The city’s rowing club that the Miami Boat Show used last year is adjacent. The more flexibility, the higher the return and the more the city should get. Finally, the city should resurrect a proposal that Mayor Regalado himself made years ago: create a foundation to fund stadium needs. The stadium operator could be required to pay a fixed amount to that foundation each year, with an addition from rising receipts – not profits, but all receipts – divided equally between the foundation and the city’s general fund, to benefit all taxpayers. One thing the city need not do is force an operator to hire from nearby nor pay wages above what the operator pays elsewhere in the region. Artificially high wages would make a stadium deal far less attractive, and Key Biscayne residents certainly don’t need special offers of jobs. But there is a need to work with Key Biscayne. That need is not in law – it’s totally
To compete, Miami must brew winning formula In an increasingly challenging global economy, it is “competitiveness” that provides significant advantages to nations and to firms. According to the latest Global Competitiveness Report produced by the World Economic Forum, the US Jerry Haar moved up from No. 5 in 2013 to No. 3, just behind Switzerland and Singapore.At the firm level, 16 of the top 20 most competitive consumer goods companies are American, as are the overwhelming majority of technology companies. Missing from these rankings, however, is an overlooked reality that is shaping the competitive landscape – namely, the competitiveness and innovativeness of states and cities. How the US fares as a nation impacts us less than how our state and communities score in this regard. So just how competitive and innovative are Florida, in general, and Miami, specifically? Perusing streams of economic and business data reveals a mixed picture. Sure, a highly favorable climate and the lack of a state income tax are big pluses. The Tax Foundation’s State Business Tax Climate Index ranks Florida No. 4 among the best states for business. On the other hand, half the states in the country have a lower cost of living than Florida, and the American Society of Civil Engineers’ “2016 Report Card for Florida’s Infrastructure” grades us a “C”. At the metropolitan level, Greater Miami has made a quantum leap over the past decade and set the stage for increased momentum as a competitive locale. En-
The Writer
Jerry Haar is a business professor at Florida International University and a global fellow at the Woodrow Wilson International Center for Scholars in Washington, DC. His latest book is “Innovation in Emerging Markets.” trepreneurship has been incorporated into our DNA now. The main institutional drivers such as the Knight Foundation, eMerge Americas and the county have been the catalysts for growing entrepreneurial endeavors. Moreover, other key drivers such as Venture Hive, Endeavor and the educational community (Launch Pad at UM; Start-up FIU; and MDC’s 10,000 Small Businesses and the Idea Center) have stepped up to the plate to enhance our community’s competitiveness. Not surprisingly, our region ranks No. 2 in start-up creation, according to a Kauffman Foundation study, right behind Austin. With coding academies popping up and projects such as Magic City, a tech innovation district, coming to Little Haiti, there is much to be optimistic about. However, we should not blind ourselves to where we come up short. The same study that ranks us No. 2 in start-up creation ranks us second to last for scale-ups (just ahead of Detroit). Miami is only 14th in the nation in venture capital; and without those resources, start-ups cannot tap into the monetary infusion necessary to survive and thrive. One should not discount, either, quality of life issues such as transportation, housing and schools that may impact (negatively) start-ups’ decision to remain in our region or move elsewhere for the scale-up phase. For without scaling up, we cannot reap
the benefits of the most advanced stage of entrepreneurship and competitiveness – innovation. That term has become misused and overused in our community almost as much as the cringe-worthy term “awesome”. The reality is that we may be entrepreneurial and competitive (with selected products and services) but we are not innovative for the most part. Uber is innovative. UberEats is not. Magic Leap and U.S. Stem Cell are innovative. A chain of sushi restaurants and an app that finds you good concert tickets are not. The precursor and driver of greater competitiveness, let alone innovation, is first-rate human capital. Urbanologist Richard Florida in his “The Rise of the Creative Class” suggests that a creative class, consisting of professionals in innovative and artistic occupations, is the main catalyst for continued development of modern cities. His report “Miami’s Great Inflection,” a product of the FIU-Miami Creative Initiative, is most instructive and spells out both the challenges and opportunities before us. As with nations and industries, the competitiveness of cities can ebb and flow. For Miami, what happens at the national level or even state level will impact us (and challenge us) far less than what occurs in other metro areas such as Boston, Raleigh, Washington and San Francisco. Competing successfully is contingent upon creating a winning formula to continually improve human and physical infrastructure and public services, providing affordable housing, boosting educational and workforce performance, and increasing employment opportunities at all levels. Mr. Florida’s “Miami’s Great Inflection” is not just an engaging diagnostic report but a spot-on prescription and call to action.
the city’s decision – but to keep from overwhelming the only roadway to the island. A concert in a 5,000-seat venue is reasonable; an event on the grounds of 35,000 people who would all arrive and depart in a narrow time window might not be. The city should be a good neighbor. These decisions will affect not just an operator but exactly how to restore the stadium. Boat races differ from concerts or conventions. Numbers of attendees and types of events make a difference. Those are valid reasons to sign up the operator in advance. Another reason is to protect taxpayers. The shape of a request for operators, including all financial aspects, will determine who will bid. Without a sensible bid it’s foolhardy to restore the stadium unless the city finds independent, guaranteed revenues to fund everything that an operator would. If nobody will bid enough to run a great bayfront site, the whole basis of restoration will be in doubt. Informal expressions of interest are heartening. Now is the time for the city to turn them into a concrete proposal that can go to voters for their required approval first, conditional upon studies now being made about whether the decayed stadium can actually be restored. Then, with an operator approved and a formal go-ahead on construction, the city can borrow the $45 million to restore the stadium with full assurance that the job can be done at that price and that, after 25 years, guaranteed users await a finished stadium.
Letters to the Editor Fort Lauderdale Beach far outshines Ocean Drive
Ocean Drive in South Beach looks Third World when compared to Fort Lauderdale Beach. One gets the distinct impression that the businesses do whatever they want, without any consideration for aesthetics. It appears cluttered and dirty and does not attract well-heeled patrons the way Fort Lauderdale does. Perception is everything, when trying to attract sophisticated clientele. Take a page from both Hollywood and Fort Lauderdale beaches, i.e., street pavers, bicycle lanes, decorative walls on the ocean side of the street and proper landscaping, in addition to the above improvements. Gerwyn Flax
miamitodaynews.com FOUNDED JUNE 2, 1983 VOLUME XXXIV No. 35 ENTIRE CONTENTS © 2017
To contact us: News Advertising Classifieds Subscriptions Reprints
(305) 358-2663 (305) 358-1008 (305) 358-1008 (305) 358-2663 (305) 358-2663
Editor and Publisher / Michael Lewis Vice President / Carmen Betancourt-Lewis
MIAMI TODAY (ISSN: 0889-2296) is published weekly for $145 per year; airmail: to Europe $190 per year, the Americas $145 per year. Published by Today Enterprises Inc., 2000 S. Dixie Highway, Suite 100, Miami, Florida 33133, USA. Periodicals postage paid at Miami, FL. POSTMASTER: Send address changes to MIAMI TODAY, 2000 S. DIXIE HIGHWAY, SUITE 100, MIAMI, FLORIDA 33133.
8
TODAY’S NEWS
MIAMI TODAY
WEEK OF THURSDAY, JANUARY 26, 2017
$18 million in bonds keeps Tri-Rail downtown link on track By John Charles Robbins
City leaders have followed through on part a financial commitment to help establish a passenger rail link for Tri-Rail into downtown Miami. Plans call for Tri-Rail to have a place inside the new MiamiCentral station from All Aboard Florida, now under construction paralleling Northwest First Avenue. The station will serve as a major transportation hub and be home to Brightline, a privately-run passenger rail service from here to Orlando, to debut later this year. City commissioners on Jan. 12 declared the city’s intent to issue tax-exempt or taxable special purpose improvement bonds, or both, in the expected total of $18 million to reimburse itself for funds it advanced for expenses of public governmental capital improvements at MiamiCentral. This is part of an agreement among the city, the Southeast Overtown/Park West Community RedevelopmentAgency (CRA) and the South Florida Regional Transportation Authority, which manages Tri-Rail. Miami city commissioners sit as a board of directors for the community redevelopment agencies in the city, with each CRA having its own annual budget. The Nov. 28, 2016, agreement says the anticipated total costs to
Jack Stephens: help from friends.
The tri-county rail service will get a Miami location inside the new All Aboard Florida station downtown.
bring the Tri-Rail link into the new station is $50.4 million. Earlier estimates had pegged the total at about $70 million. The agreement notes that to assist in the Tri-Rail Downtown Miami Link Project, the CRA, the city and the transportation authority wish to facilitate reimbursement to the authority of design and construction costs for additional platform improvements to the MiamiCentral station. The related governmental capital improvements will consist of: a 62,000-square-foot passenger platform and associated trackage for Tri-Rail commuter trains; a mezzanine level consisting of columns and related structures that support
the Tri-Rail platform and associated trackage; and “only the shared MiamiCentral Station capital project elements including... portions of elevators, escalators, support spaces, and storage areas …” According to the transportation authority, others agreeing to help pay for bringing the Tri-Rail link into downtown Miami include MiamiDade County, the City of Miami, the Omni/Midtown Community Redevelopment Agency, Miami’s Downtown DevelopmentAuthority, Bayfront Park Management Trust, All Aboard Florida and the state. The massive steel and concrete transportation facility, MiamiCentral, continues to rise on the footprint of the city’s former train station, just
north of the county’s government center tower. The new rail station is being integrated with the Miami-Dade County Metrorail and Metromover systems and is being considered a major transit hub for the city, with connections to buses, trolleys, taxis and more. MiamiCentral is also bringing together a mix of retail and offices. Jack Stephens, transportation authority executive director, in his recent report focusing on the year ahead, spoke of the cooperation and partnership that is bringing more transit options to Miami. “The most exciting development on the horizon is a partnership with All Aboard Florida (AAF) that will
provide a one-seat ride into downtown Miami. Construction of the new MiamiCentral station is well under way and is anticipated to be completed in mid to late 2017,” said Mr. Stephens. “Once completed and Brightline begins operation, as AAF has named its service, we will be able to transport our passengers directly into downtown Miami. The new station will eventually serve as the southern-most terminus of Tri-Rail Coastal Link, a new service that is proposed to operate on the FEC corridor through the downtowns of South Florida’s coastal cities,” he said. All Aboard Florida, owned by Florida East Coast Railway, offered the regional transportation authority the opportunity to run tracks and Tri-Rail trains into the vast station it’s building downtown.
Absorbing history of notoriety at oldest US public hospital By Marilyn Bowden
David Oshinsky, whose 2005 bestseller “Polio: An American Story” won the Pulitzer Prize in History, follows that achievement with “Bellevue: Three Centuries of Medicine and Mayhem at America’s Most Storied Hospital,” an absorbing history of the country’s oldest – and possibly most controversial – public hospital. Mr. Oshinsky will address members of the Prologue Society at noon today (1/26) in the Riviera Country Club, 1155 Blue Road, Coral Gables. The society, dedicated to the appreciation of history, is sponsored by Brickell Bank, Miami Today and Books & Books. Guests are invited to attend one event annually before registering as a member. (Membership information: theprologuesoci-
ety@gmail.com or 305-323-1154) In the 1800s a pair of exposés in the New York World by a journalist working undercover as Nellie Bly took New York by storm. Bly, who had herself admitted to Bellevue’s psychiatric facility, “vividly described the crowded wards, the freezing temperatures, the filthy bedding and moth-eaten clothing,” Mr. Oshinksy writes. Ever since, he says, Bellevue has shared notoriety with London’s Bedlam as an infamous madhouse. “The relentless focus on its eccentricities has obscured its role as our quintessential public hospital,” he writes, “the flagship institution of America’s largest city, where free hospital care is provided to the ‘medically indigent’as a right, not a privilege. In that role, Bellevue has borne witness to every imaginable
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY PLEASE ALL TAKE NOTICE that the Board of Commissioners Meeting of the Southeast Overtown/Park West Community Redevelopment Agency (SEOPW CRA) is scheduled to take place on Monday, January 30, 2017 at 5:00 p.m., underneath the I-395 overpass in Overtown, between 13th and 14th street on N.W. 1st Ct., Miami, FL 33136 All interested persons are invited to attend. For more information please contact the SEOPW CRA office at (305) 679-6800.
#25358
Clarence E. Woods III, Executive Director Southeast Overtown/Park West Community Redevelopment Agency
disease and public health scare, every economic swing and population surge, every medical breakthrough and controversy going back more than two centuries.” It is this larger role as America’s oldest public hospital – “a vital safety net, a place of caring and a place of last resort” – that Mr. Oshinsky’s book seeks to restore. Bellevue’s history is also a study in American epidemiology, from the typhus outbreak among Irish immigrants in the mid-19th century to the successful treatment of an Ebola patient in 2012. Legally bound to treat all who enter its doors regardless of their ability to pay – unlike private hospitals in the city, which as recently as the 1980s refused to admit AIDS patients – Bellevue has always attracted doctors and medical students because of the opportunity it provides to study a broad spectrum of diseases and conditions. This led to the founding of Bellevue Hospital Medical College, which opened its doors on April 11, 1861, the day before the Civil War began. A leader in healthcare innova-
F ilming 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) 860-3823; and the Miami Beach Office of Arts, Culture and Entertainment-Film and Print Division, (305) 673-7070. HG Producers. Miami. HG Women Apparel. Crandon Park Beach. 55 Productions. Pompton Plains. Owner/Director. Port of Miami. Great Artists Series. Miami. 50 Years of Culture in South Florida as brought by. Miami Beach citywide. Sunsetprod Inc. New York. Les Angels. Countywide. NHNZ Ltd. Dunedin. What the Florida. Countywide, Miami Beach citywide. Machete Productions. Los Angeles. Wags Miami Season 2. Countywide, Miami Beach citywide. N House Productions. Miami. Carters. Countywide.
tions, from ambulances to the use of anesthesia to the training of professional nurses, Bellevue was also the site of New York’s first citywide morgue. Nellie Bly’s exposé was hardly the hospital’s last brush with bad publicity. The use of questionable new treatments in psychiatric wards, such as electric shock treatment – now known as ECT – and LSD, raised ethical concerns. The efficacy of Bellevue’s security system was called into question
in
M iami
Pro One Productions Inc. Miami Beach. Otto Kids. Countywide, Miami Beach citywide. N House Productions. Miami. Zara Catalogue. Countywide, Miami Beach citywide. McCray Martin Productions. Miami Beach. InditexFashion Catalogue. Countywide, Miami Beach citywide. Summit Productions Inc. Fort Lauderdale. Bon Prix. Countywide, Miami Beach citywide. Stillmax Media LLC. Miami Shores. Fashion Catalog-Brice/ Laura. Countywide, Miami Beach citywide. Dennis Mosner Photography. Union City. Toys R Us Spring 17. Tropical Park. OSK Marketing and Communications Inc. New York. AMG Editorial and PR. Crandon Park Beach, Hobie Beach, Matheson Hammock Park, Miami Beach citywide, Port of Miami Tunnel. P. Studios Productions Inc. Miami Beach. Top Shop. Countywide, Miami Beach citywide. Pro One Productions Inc. Miami Beach. Otto Fashion Swim. Countywide, Miami Beach citywide. Pro One Productions Inc. Miami Beach. Otto Fashion 1. Countywide, Miami Beach citywide.
by the 1989 murder of a doctor in her office. Between 1983 and 1997 the hospital went through 14 executive directors, prompting a local assemblyman to remark, “We’ve had more Bellevue heads than [New York Yankees owner] George Steinbrenner had managers.” Flooding during Hurricane Sandy shut Bellevue down for 99 days – but this time, the author writes, there was a silver lining: it brought recognition of “how valuable Bellevue’s services were, and how hard it was to get on without them.” David Oshinsky is a professor in New York University’s Department of History and director of the Division of Medical Humanities at the NYU School of Medicine. His articles and reviews appear regularly in the New York Times and Wall Street Journal. “Bellevue: Three Centuries of Medicine and Mayhem at America’s Most Storied Hospital,” by David Oshinsky, 388 pages, is $30 hardbound from Doubleday, a division of Penguin Random House. Details: www. doubleday.com.
TODAY’S NEWS
WEEK OF THURSDAY, JANUARY 26, 2017
MIAMI TODAY
9
Gables to cut deal with Related-Morris team on garage sites By Catherine Lackner
After a two-hour discussion, Coral Gables commissioners authorized City Manager Cathy Swanson-Rivenbark to negotiate with Coral Gables City Center, a project by The Allen Morris Co. and The Related Group, to replace two antiquated parking garages. If no deal is reached within six months, the city will then negotiate with TC Gables LLC, an affiliate of Terranova Corp., or it may pursue other plans. Both developers responded to a request for proposals (RFP) last year. “They are both experienced, and they both submitted proposals with varying degrees of non-conformity to the RFP,
that need to be addressed in the negotiation process,” said Javier Betancourt, city director of economic development. “The city commission will retain full control over this process,” said Craig Leen, city attorney. Neither proposer has a vested right to protest the commission’s decision, he added, and that has been made clear since the beginning of the process. “We really want to be at the negotiating table, but the RFP process doesn’t allow any back-and-forth,” Ms. Swanson said. Municipal Garage 1, on Andalusia Avenue between Ponce de Leon Boulevard and Salzedo Street, is a three-level concrete building with 282 spaces (272
permitted, 10 for public use). Municipal Garage 4, on Andalusia Avenue between Salzedo Street and LeJeune Road, is a three-level structure with 349 spaces (285 permitted and 64 for public use). Coral Gables City Center submitted three proposals, but – while it was chosen as top proposer by an evaluation committee – the developer and the city disagree about which of the three plans would be the best use for the two garages. TC Gables submitted just one proposal, but Josh Gelfman, Terranova director of development, told the commission Tuesday “I’d be prepared to make another offer tomorrow.” Commissioner Patricia Keon said she
was unwilling to allow Ms. SwansonRivenbark to negotiate any deal that would involve the sale of city land. The request for proposals said the city would strongly prefer to lease, rather than sell, the two garages, but it doesn’t forbid a sale. “We should stay consistent with the RFP,” said Vice Mayor Frank Quesada. “It’s a mistake to limit staff before we see an offer. If we chop them off at the legs, we’re going to get an inferior product.” “The details will all fall into place,” said Commissioner Jeannett Slesnick. “She’s a great negotiator. “All negotiations are give-and-take,” said Mayor James Cason. “We’re just talking about letting her talk.”
Luxury condos on market would take nearly 5 years to sell By Marilyn Bowden
Plagued by swelling inventory and sagging sales, Miami-Dade County’s supply of luxury condos – defined as those priced at more than $1 million – stood at 2,549 by the end of 2016, according to a new market report from EWM Realty International. At today’s sales pace, it would take 57.9 months to sell them all, a 69% surge over the months of supply recorded at the end of 2015. That’s by far the highest backlog since the end of 2008, when the end of a building boom collided with the recession, briefly sending the supply in that category to a dizzying 80 months. Months of supply is “the most important metric” in residential real estate, says Ron Shuffield, EWM’s president. It’s calculated using units for sale at the end of the month and the average number of sales over the previous three months. In general, Realtors consider a nine-month supply healthy. During 2016, the supply of single-family homes in the luxury category rose by 19%, from 18.9 months at the end of 2015 to 27.2 months at the end of last month, when inventory on the market, EWM reports, was 1,673 luxury homes. Inventories climbed in the rest of the market as well over the past year. EWM reports the supply of condos for sale at less than $1 million rose 45% over the past year – from 8.3 months to 11.4 – while the inventory of single-family homes under $1 million rose 11%, from 3.8 to 4.4 months, still not high enough to meet demand. Statistics from the fourth quarter 2016 Elliman Report, which focuses on the relatively high-end island and coastal neighborhoods,
MIAMI-DADE RESIDENTIAL MARKET 2016 Condos over $1 million For sale Sold Months supply at end of month
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept .
Oct .
Nov.
Dec.
2,281 69 33.1
2,424 64 37.9
2,492 70 35.6
2,534 81 31.3
2,532 66 38.4
2,541 73 34.8
2,491 51 48.8
2,456 59 41.6
2,418 69 35
2,422 51 47.5
2,537 45 56.4
2,449 44 57.9
Condos under $1 million For sale Sold Months supply at end of month
10,790 947 11.4
11,195 1,041 10.8
11,256 1,299 8.7
11,290 1,257 9
11,281 1,251 9
11,365 1,335 8.5
11,342 1,127 10.1
11,253 1,171 9.6
11,451 1,097 10.4
11,703 983 11.9
12,009 953 12.6
11,941 1,046 11.4
Single family homes over $1 million For sale Sold Months supply at end of month
1,566 63 24.9
1,660 83 20
1,726 81 21.3
1,760 67 26.3
1,768 81 21.8
1,741 102 17.1
1,698 78 21.7
1,641 73 22.5
1,689 64 26.4
1,678 55 30.5
1,713 77 22.2
1,673 62 27.2
Single family homes under $1 million For sale Sold Months supply at end of month
4,373 795 5.5
4,458 919 4.9
4,415 1,135 3.9
4,285 1,150 3.7
4,195 1,143 3.7
4,259 1,242 3.4
4,283 1,112 3.9
4,337 1,246 3.5
4,421 1,111 4
4,503 999 4.5
4,537 977 4.6
4,462 1,015 4.4
Source: EWM Realty International
support EWM’s findings. In the luxury condo category – defined by Douglas Elliman brokerage as the top 10% of the market – this report found active listings in Miami Beach and the barrier islands increased 79.4% since fourthquarter 2015, for a 67-month supply. At the same time the inventory of luxury single-family homes grew by 96.2%, representing 84 months of supply. In mainland coastal communities, Elliman’s report registers a 39.1% increase in luxury condos to absorb, equaling 53.3 months of inventory. The top 10% of single-family homes in these areas fared somewhat better, with a 17.2-month absorption rate, 14.5% higher than at the end of 2015. At the lowest end of the mar-
ket, however, these trends are reversed. Mr. Shuffield says in 2016 48% of single-family homes sold countywide went for under $300,000, resulting in robust gains in median prices in markets such as Homestead, Hialeah and Miami Gardens, “but we are running out of inventory in those places. In many areas, it’s under two months.” He attributes the oversupply in the luxury market primarily to its reliance on international buyers. “From our records,” Mr. Shuffield says, “we know that in 2014, 42% of all sales over $1 million in Miami-Dade were made to buyers from outside the US. Today it is 35%. “So I think currency exchange issues have had the largest impact
on our buyers over the past two years.” Due to home value changes and hikes in exchange rates, EWM finds that a Venezuelan wishing to buy a home in Miami valued at $1 million in 2015 would end up paying 73.9% more in actual costs. For an Argentine, the bill would be 36.3% higher. Only Brazilians and Russians would find themselves paying less. The inescapable conclusion, Mr. Shuffield says: Prices for luxury properties have to come down. “I believe we have the largest pent-up demand of luxury buyers we have ever had in Miami,” he says. “With the population growth we have, the appeal of our architecture, our cultural amenities, health care and flights
to all over the world, we will continue to draw people here from places where currency rates are declining. “But in the short term the only fix is to lower prices to be in line with their expectations, because right now there’s more supply than demand.” Over the past six months, Mr. Shuffield says, the pricing on 37% of the county’s million-dollar inventory was reduced an average of 14%. In Miami Beach and the barrier islands, The Elliman Report found sales across all price ranges and property types dropped 21.5% during 2016, while prices rose 5.3%. For coastal mainland properties, it quotes 13.6% fewer sales and price hikes of 11.8%.
17,000 visit event-laden Biscayne Green boulevard in 17 days By Catherine Lackner
The Biscayne Green demonstration, which is described as an ‘urban intervention,’ has exceeded expectations, observers say, and has inspired a promise. As of Tuesday, the repurposed area on Biscayne Boulevard between Southeast Second and Northeast First streets has received 16,939 visits as tracked by sensors. The project transformed surface parking lots into colorfully decorated spaces with picnic benches, a playground, a dog park and other amenities from Jan. 6-26. Events – 35 in 20 days – included
art displays, live music performances, movies, happy hours, yoga, soccer, bike rides and play dates. It was created by Miami’s Downtown Development Authority with a $146,000 grant from the Knight Foundation, said Fabian De La Espriella, a member of the authority’s planning, design and transportation team. The authority won a Knight Arts Challenge that launched the project, he said. “We curated the events to be as diverse as possible,” he said at the authority’s meeting Friday. “The response has been very positive, better than we could have imagined. We had people come here all
the way from Fort Lauderdale.” Partners included Miami, MiamiDade County, Bayfront Park, the Adrienne Arsht Center, Pérez Art Museum Miami, the Florida Department of Transportation, and Miami Dade College, he said. For years, the authority has advocated for Biscayne Green, which aims to reduce driving lanes from eight to four or six from Biscayne Boulevard Way to Northeast Eighth Street and replace them with grass, trees, street furniture and other features that will link Biscayne Bay and Bayfront Park to downtown. “This is a massive undertaking,” said
Ken Russell, authority chair and Miami commissioner. He vowed to make Biscayne Green a permanent fixture “before I leave office. I’m a convert.” Set for 6 p.m. this evening (1/26) is Biscayne Green’s Last Hoorah, with live music by the Grammy-nominated Palo and by Patrick & The Swayzees. Food by Biscayne Tavern, Doggy Style Miami Hot Dogs, Pinch Miami, and Box of Chacos, and hand-crafted cocktails by Mac’s Pubs, will also be available, according to the project’s website. Details: www.biscaynegreenmiami. com.
WEEK OF THURSDAY, JANUARY 26, 2017
OUTLOOK 2017
MIAMI TODAY
13
Film industry flickers as incentive lack deters production By Catherine Lackner
In 2017, Miami’s film industry continues to struggle with the fact that production decision-makers want to film here but are dissuaded by Florida’s lack of an incentive program. There are bright spots on the horizon, however. “Probably the biggest thing that would represent Miami is for Moonlight to do well at the Oscar awards,” said Graham Winick, film and event production manager for the City of Miami Beach. “It is significant in Miami’s film history and a beautiful story. It’s a high water mark for us, and we couldn’t be more pleased.” Moonlight was written and directed by Barry Jenkins, based on the play In Moonlight Black Boys Look Blue by Tarell Alvin McCraney. Both were born and raised in Miami. Producer Adele Romanski, who urged Mr. Jenkins to embark on the project, is a graduate of Florida State University, Mr. Winick said. Moonlight premiered at the Telluride Film Festival last fall and this month won the accolade “best motion picture, drama” at the Golden Globe Awards, where it was also nominated in five other categories. The film has been nominated in eight Oscar categories, including best picture. The local film industry is stinging from the loss of two major television shows, Mr. Winick said. Netflix’s Bloodline is wrapping up its final season and HBO’s Ballers was lured away to California, where it was offered double incentives to leave Florida, according to industry reports. Viewers aged 18-49, advertisers’ most coveted demographic, make up 60% of the Ballers’ audience, Mr. Winick added. “The loss of those two shows is really jarring, but the ground is not well fertilized,” Mr. Winick said. “We have nothing to help us attract productions.” At one time, Florida had a wellfunded tax incentive program that allowed it to lure television shows, films and other productions. But lawmakers declined to add new funds for the program for the past four years and it is now defunct. Some possibilities do exist, among them the film Spring Breakers: The Second Coming, directed by Harmony Korine and depicting the adventures of four
“Probably the biggest thing that would represent Miami is for Moonlight to do well at the Oscar awards,” which is significant in our film history, said Miami Beach film and production manager Graham Winick.
Deep City may be shot elsewhere: Miami Beach’s Graham Winick.
Studio heads want to come here but need aid: Sandy Lighterman.
girls who come to Florida on break from college; and Deep City, a television show about the Miami music scene, Mr. Winick said. Deep City is produced by Oscar winners Callie Khouri and T Bone Burnett and was created by Juan Carlos Coto, a University of Miami graduate whose credits include From Dusk Till Dawn, Nikita and 24, he added. “They desperately want to make the show here, but it may be shot elsewhere,” Mr. Winick said. The same is true of the third and fourth installments of the Bad
Boys film franchise, which will be released back-to-back, he said. The first and second action-comedy films, directed by part-time Miami resident Michael Bay, were shot here. “They’re saying to us, ‘Miami is a character in our films. How can you help us?’ They’re just looking for something, anything, any kind of economic support.” Not only are productions and jobs going to states that have reliable and well-funded incentive programs, but so are graduates of Florida’s film and digital production schools, and this will
For first time in decades no big TV series in Florida, said Kelly Paige.
figure prominently in this year’s industry appeal to the Florida Legislature. “We will make the argument collectively that at least half of the students educated – some of them by Bright Futures scholarships – ultimately move to another state. Our graduates are moving to California, New York, Georgia and other states that have incentive programs. There’s not enough work here, and six decades of infrastructure is being annihilated,” he said. “Deep City, which is being produced by the makers of Nashville, has been scouting here for awhile,” said Sandy Lighterman, film and entertainment commissioner for Miami-Dade County. “They’ve said they want to shoot this in Miami, and they will probably bring some secondunit production here,” meaning outdoor shoots to establish a sense of place, she said. “That doesn’t bring long-term job creation to Miami-Dade County.” First-unit filming, in which the show’s primary actors are involved, may The Netflix series Bloodline is wrapping up its final season of work. be shot somewhere else, she added.
Ms. Lighterman said she has been speaking with studio heads while representing Miami-Dade County at the Sundance Film Festival in Park City, Utah. “They all want to bring productions to Miami, but it doesn’t fit with the business model they’re married to,” she said. “They will go where the business climate is more favorable.” Because multiple channels of distribution exist today, profit margins have gotten thinner and productions more costconscious, she explained. On the local level, “We are working on a program to attract productions to Miami-Dade County,” she said. But the film industry will also continue its push in Tallahassee. “We need to be part of the conversation, even if they don’t listen to us,” Ms. Lighterman said. “We still have to talk about why this industry is so important to the entire state, and to Miami-Dade County in particular.” “For the first time in decades, Florida will not have a high impact TV series being shot anywhere in the state,” said Kelly Paige, president of the Film Florida advocacy group and owner of the Level Talent Group in Tampa. “There will be no postcard of our state being played in so many countries and at the same time providing jobs and infusing (per 13-week season) upwards of $30 million into the local economy.” However, building on the success of Moonlight, “We are optimistic and working hard to attract business,” she said via email. “We now have many local film offices that offer enticements to shoot in their area. There will probably not be a traditional incentive program, such as there are in Georgia, Louisiana and California. “We are looking toward leadership for a constructive, open dialogue to keep our sought-after film graduates here, and more than 50,000 industry professionals working, so they will not be a drain on unemployment services,” she added. “We know we have lost numerous Florida-based TV series and films,” Ms. Paige said. “There are many productions that want to shoot here. The question is, will some – will any – still come when other states offer a discount to shoot there?”
24
WEEK OF THURSDAY, JANUARY 26, 2017
MIAMI TODAY
Gold Medal Awards Have you, your company or organization been recognized by your professional peers with an honor in 2016?
2017
Then Go for the Gold!
You are a potential candidate for Miami Today’s 18th Annual Gold Medal Awards. A panel of top-level, Miami-based judges will select Gold, Silver, and Bronze individual and organization winners who will be honored at an invitation-only reception and dinner. Winners will be featured in an exclusive Miami Today Gold Medal Awards special section published in 2017.
Nominations must be submitted by February 14 Send this form and no more than two 8 1/2 x 11 pages of supporting materials to: Miami Today Gold Medal Awards By Mail: 2000 South Dixie Highway, Suite 100, Miami, FL 33133 By Email: marketing@miamitodaynews.com or go to www.miamitodaynews.com and click on the Gold Medal Awards application link
Person, Company or Organization: Award honoree received in 2016: Upon what was the award based: Honoree contact name: Address of honoree: Phone:
Fax:
Email:
If you have questions, contact marketing@miamitodaynews.com
(Honoree cannot be employed by or be a subsidiary of the honoring organization. Gold Medal winners from 2015 and 2016 are not eligible.)
MiaMiToday A Singular Voice in an Evolving City