Miami Today: Week of Thursday, April 6, 2017

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WEEK OF THURSDAY, APRIL 6, 2017

A Singular Voice in an Evolving City

WWW.MIAMITODAYNEWS.COM $4.00

TODAY’S NEWS

County police director rejects dashboard cameras buy, pg. 8 GABLES GETS HEADQUARTERS: Spainbased Cosentino Group, which produces and distributes surfaces for architecture and design, is moving its US headquarters from Houston to Coral Gables this summer, bringing in more than 85 high-wage jobs. The company had had its US headquarters in Houston since 1997. “We need our corporate headquarters to be located in a global city, from where we can centralize management for the American continent,” said Eduardo Cosentino, executive vice president of global sales and CEO of Cosentino North America. “Without a doubt this move will help us in our objective of expanding even more in the USA over the coming years.” The company is based in Cantoria, Almeria.

Casino giant’s plan for hotel atop bus terminal waits, pg. 8

The Achiever

By John Charles Robbins

CONSTRUCTION STARTS FALL: South Florida construction starts fell 20% in value in February from February 2016, Dodge Data & Analytics reported, and fell 14% overall for the first two months of the year. The change was vastly different between residential and nonresidential construction, with residential falling 42% in February and 40% overall for the year while nonresidential construction values rose 31% in February and 49% for the first two months of the year. Total construction starts for the first two months in South Florida were more than $1.4 billion, versus nearly $1.7 billion for the first two months of 2016, Dodge reported. BRAZILIAN AIRLINE ADDED TO MIA LINE-UP: Avianca Brasil announced Tuesday that it will launch daily passenger service between Miami International Airport and Sao Paulo on June 23. Miami will be the first US destination and only the second outside of Brazil for the airline. Avianca Brasil will be the airport’s third airline serving Brazil, MIA’s top international market in 2015 with more than 2.1 million total passengers. CLEANSING CURTIS PARK: Work was to begin Monday at the City of Miami’s Curtis Park, 1901 NW 24th Ave., for environmental remediation and improvements. Curtis was one of several city parks impacted by contaminated soil. The project will consist of soil remediation, removing soil and replacing it with clean fill and protective covering. Construction is expected to take about nine months at a cost of $4,926,879.94. The contractor is Cherokee Enterprises Inc. The park will be closed two to four weeks for required air monitoring analysis. Results will go to the Miami-Dade County Environmental Resources Management to determine if areas in the park can stay open during the work. If so, Cherokee is to work in phases to minimize closure in other park areas. Work will start with the tennis courts. All work is to be from 8 a.m. to 5 p.m. Monday through Saturday.

Photo by Cristina Sullivan

Adalnio Senna Ganem

Consul general promotes awareness of ties with Brazil The profile is on Page 4

Growth in room supply squeezes hotel industry By Camila Cepero

Negative totals in three key performance metrics are squeezing Miami-Dade’s hotel industry, the most recent data from STR reveal. The national visitor industry data and analytics company’s most recent monthly data show that as of February, year-to-date occupancy here is down to 80.1%, a 2.7% drop from February year-to-date 2016. The report’s census included 422 hotels and 54,805 rooms in February, up from 404 hotels and 52,203 rooms in February 2016. The occupancy dip has pushed down average daily rates, said Jan Freitag, senior vice president of Lodging Insights for STR. The average daily rate as of February yearto-date is $223.58, off 8%, down even farther from the 1.8% decrease last year to $243.02. However, before the 2016 dip, average daily rates in February year-to-date 2015 rose 10.3% to $247.57 from the previous year. “The room rates increased a healthy amount in 2015 but then declined in 2016 because of the influx of new supply,” Mr. Freitag said, coupled with such other handicaps as the spread of Zika virus and economic and political turmoil in such

Canal to get its pollution restoration

Latin American markets as Brazil, which had been Miami’s largest feeder market abroad. Nonetheless, average daily rates in the county sit roughly $100 above the national average. Unsurprisingly, revenue per available room (RevPAR) also took a hit, down to $179.07, off 10.5% from the same time last year. Even last year, when it was down 5.1% from 2015, RevPAR sat at $200.08. However, supply and demand have both increased in numbers and percentages, the report shows. Demand has increased 1.9% to 2,584,099 rooms. At the same time last year, demand sat at 2,535,745, up 0.2% from 2015. “During the last several months, the number of people coming into Miami hasn’t grown as much as it used to, but even in January of 2017 we had 1.1% more visitors than we had in January of 2016,” said Rolando Aedo, executive vice president and chief marketing officer for the Greater Miami Convention & Visitors Bureau. “Room demand has increased – we’re selling more rooms than a year ago – which is good news because it means people are traveling,” Mr. Freitag said.

But, with Miami being a hot market, he said, there has been significant impetus to build new hotels, increasing supply. Thus, similarly to demand, supply is up to 3,226,396 room nights sold, an increase of 5% in February 2017 alone. Nonetheless, the rise in supply has all but cancelled out the boost from the rise in demand, leading revenue to drop. Mr. Aedo said that the “top challenge from the hotels’ perspective is dramatic increases in inventory.” Following the trend of the 2015 increase in average daily rates, revenues in 2015 shot up 15.6% to $626,359,706 before dropping last year. As of February year-to-date, total revenues were at $577,755,660, down 6.2% from 615,241,052 in February year-to-date 2016, which was in itself a 1.6% dip from 2015. “They are in fact negative numbers – RevPAR was down 7.4% [in February 2017], but it was less down than it was in January and December, November and October of 2016,” Mr. Aedo said. “While they’re still technically down, they are trending in the right direction and closing the gap.”

The long-awaited cleanup of Wagner Creek and Seybold Canal is expected to start next month, says Horacio Stuart Aguirre, Miami River Commission chairman. Cleanup of the long-polluted Miami River tributary comes two years after the city commission approved the Wagner Creek and Seybold Canal Maintenance Dredging and Environmental Cleanup Project. The city has lined up the permits and money for the $23 million dredging and cleanup, but a start has been delayed as the city procurement department wrangled with bidders. Eventually, the city rejected all bids and started a fresh solicitation last summer. “The Miami River Commission is appreciative that after the second request for proposals the City of Miami has recommended Sevenson Environmental Services Inc.... to conduct the fully-funded and permitted Wagner Creek and Seybold Canal Maintenance Dredging and Environmental Cleanup Project,” Mr. Aguirre said this week. He said city officials estimate dredging will begin in May. “The Miami River Commission thanks the City of Miami, Florida Inland Navigation District and the State of Florida for funding the project, which will improve the local economy and remove toxic sediments, including dioxin, from the most polluted waterway in the State of Florida,” he said. The project aims to remove accumulated sediments and dioxins, a hazardous chemical bound to the sediments, and restore stormwater capacity in Wagner Creek and Seybold Canal. Dredging is to start where Wagner Creek flows out of a culvert at Northwest 20th Street and continue to where Seybold Canal empties into the river 2.5 miles away. The plan is to excavate accumulated contaminated sediment and truck it to a landfill. Sevenson says it has done more than 1,400 projects with a total value of more than $4.2 billion, including cleanup at the infamous Love Canal.

MDX AIMS TO EXTEND SR 836 IN GAMECHANGER BELTWAY ...

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BEACH OFFER MAY PRODUCE MILLIONS TO AID HOMELESS ...

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AUTHORITY EYES BUILDING PART OF SMART TRANSIT PLAN ...

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VIRGINIA KEY DOCK, SEAWALL ADVANCE OVER PROTESTS ...

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AIRBNB’S TAX DEAL DOESN’T COVER REGULATORY ISSUES ...

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TRANSPORTATION HUB TO HELP UNCLOG GOLDEN GLADES ...

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VIEWPOINT: MIAMI RULES ON HIRING LAW FIRM NEED HELP ...

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FINAL STATE OF CITY LOOKS AHEAD TO MARINE STADIUM ...

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Miami Today: Week of Thursday, April 6, 2017 by Miami Today - Issuu