Miami Today: Week of Thursday, July 20, 2017

WEEK OF THURSDAY, JULY 20, 2017

A Singular Voice in an Evolving City

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LUXURY CAR TRACK/HOTEL SEEKS INCENTIVES TO BUILD ON 160 COUNTY-OWNED ACRES, pg. 2 PRICES TICK DOWN IN AREA: Consumer prices in South Florida fell two-tenths of a percentage point from May 1 to the end of June, the US Bureau of Labor Statistics reported last week. Even with the short-term decline, however, the area’s consumer prices rose for the 12 months ended June 30. The price of food rose nine-tenths of a percentage point during the two-month period of general price decline in the area, according to the bureau’s Consumer Price Index, a gain led by a 1.4% rise in the price of food at home. But since June 2016, the price of food at home in South Florida actually declined overall by three-tenths of a percentage point.

The Achiever

By John Charles Robbins

KEY BISCAYNE TROLLEY AWAITED: Key Biscayne’s trolley service, which is still in the developmental stages months after a resolution to approve the village’s use of county transit surtax funds to run its own trolleys, may undergo changes due to upcoming Citizens’Independent Transportation Trust changes to the municipal transportation program if they are approved by the county commission, said Ana de Varona, capital projects and procurement director for the Village of Key Biscayne. According to Ms. de Varona, the changes would allow municipalities to use Citizens’ Independent Transportation Trust funds for on-demand services for the first and last mile from established transit routes. For now, the village in collaboration with the Key Biscayne Community Foundation offers visitors and residents an on-demand service within Key Biscayne municipal boundaries.

IN THE SWIM: In addition to other improvements at Curtis Park, the community swimming pool is being replaced in the City of Miami park at 1901 NW 24th Ave. in Allapattah. City commissioners on July 13 awarded West Construction Inc. a contract to build the pool for $2,983,745 plus a 10% contingency, for a total up to $3,282,119.50. Of two bidders, the Department of Procurement recommended West. The park features a football field and running track, soccer fields, basketball courts, a playground, and a boat launch on the north side of the Miami River. The park is one of many in the city that had contaminated soil and is undergoing environmental remediation.

GASSING GAME: Gasoline prices trickled down in Miami last week to $2.20 a gallon, 11.4 cents a gallon lower than the same day a year earlier and 12.8 cents a gallon lower than a month earlier, according to GasBuddy price tracking service. “Gas prices could inch a little higher this week,” said Mark Jenkins, a spokesman for AAA Florida. Said Patrick DeHaan of GasBuddy, “We’re likely again to see something of everything: gas prices rising in most areas, falling in a few...”

Barbara Pimentel

Photo by Cristina Sullivan

Leads Customs Brokers & Forwarders Association The profile is on Page 4

Hyatt lease tied to Brickell tunnel staging area

By John Charles Robbins

If the Hyatt hotel and adjacent Knight Convention Center downtown are razed for redevelopment, part of the high-profile riverfront site could become a staging area to dig a Brickell tunnel under the river.

That’s just one of many possibilities considered now that city officials and Hyatt reps are renegotiating a lease extension of the city-owned site, with the hotel giant wishing to run the convention center.

Staging for a tunnel has been mentioned a few times in the past three months as city officials worked toward getting a Hyatt lease extension on November’s election ballot.

City voters must approve any sale or lease of city-owned waterfront.

Staging was most recently discussed during the July 13 city commission meeting at which Ken Russell moved to withdraw the Hyatt lease from consideration and the vote was unanimous.

Mr. Russell is pushing for a new master plan of the riverfront and inclusion of a large open green space or park.

To get Hyatt onboard with that will take

Fire station comes free in city deal

further negotiation, said City Manager Daniel Alfonso, and there isn’t time to resolve the matter to make the Nov. 7 ballot.

Commissioner Francis Suarez likes Mr. Russell’s suggestion and seconded his motion to withdraw – a move requested by the city manager.

With the property so near the Brickell Avenue Bridge, building staging rights into a lease makes sense, some commissioners have said. The Hyatt abuts the southbound lane of Brickell Avenue.

Downtown and Brickell traffic comes to a standstill several times a day when the bridge opens to let river vessels pass.

The idea of boring a tunnel under the river to keep Brickell traffic flowing to and from downtown has gained momentum. Earlier this year, the Miami Downtown Development Authority and the Miami River Commission supported the concept.

Mr. Suarez has strongly advocated for a tunnel and was the first to suggest the Hyatt site be considered for a temporary staging area.

At a meeting May 25, Mr. Suarez said: “On the negotiations for the Hyatt, can I just have a point of order on that? Something to

think about: If we end up demoing the Hyatt, or if they end up demoing the Hyatt, keep the right to be able to keep it as a staging ground for the Brickell tunnel – staging for the construction … because that could be significant in terms of eliminating the chaos that would be created by trying to build a tunnel in that area, having a huge staging site there; just build that in.”

He revisited the idea July 13.

“Unfortunately, this one is just not ready,” Mr. Suarez said of the Hyatt lease. “I don’t think there’s been sufficient discussion on staging for the tunnel.”

Mr. Russell also spoke of staging on July 13.

“This could also be an incredible staging area for other projects in the vicinity. If we start getting forward movement on the tunnel, you’ve got this entire area along the river which can stage construction for not only that hotel but the tunnel and bridge improvements and whatever,” he said.

In advocating for a riverfront park, Mr. Russell showed images from a previous master plan about 10 years old by architect Bernard Zyscovich, showing a lush, green riverfront park.

Miami will get a free state-ofthe-art fire station in a public-private partnership to join properties on Southwest Second Avenue in Brickell.

City commissioners on July 13 directed City Manager Daniel Alfonso to cut a deal in which the city and Southside Place LLC consolidate properties to permit Southside to provide benefits that include a fire station and a mixed-use tower with first floor retail and a parking garage.

Commissioner Frank Carollo spoke in favor of the proposal.

“This is all about public safety,” he said, noting the city will benefit from a new fire station and new trucks and equipment.

A background memo notes that the city owns Fire Station No. 4 at 1105, 1115, 1131, and 1133 SW Second Ave. and Southside Place owns the adjacent 191 SW 12th St. The developer has offered to consolidate its property with the city’s, for no compensation, unifying the sites under city ownership.

Southside has offered to build a state-of-the-art, larger, $8 million fire station at its own expense and intends to develop an attached mixed-use residential tower with parking and first floor retail.

Mario Garcia-Serra, an attorney for Southside, said the station will match city specifications, at about 30,000 square feet and two floors with a mezzanine, and the tower will rise above.

The resolution notes several other benefits Southside is promising, including giving 50 parking spaces valued at $1.5 million to the city to be managed by the Miami Parking Authority; and an annual profit participation payment equal to 5% of the available cash, with $800,000 paid in advance.

The deal also calls for $2.2 million from Southside toward new vehicles and equipment for the fire station.

The agreement allows for continued fire service seamlessly, said Mr. Garcia-Serra, as the station would be finished before the old one is closed.

COUNTY REFUNDS BOND ISSUES TO SAVE $7.7 MILLION ...

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37% AGREE OUR AGGRESSIVE DRIVING OUT OF CONTROL ...

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COLLISION ON WHETHER TO DERAIL VAST TRAIN PLANS ...

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VIEWPOINT: NEW FACTS PROVIDE A VITAL PERSPECTIVE ...

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FOURTH MARINA SITE CONCEPT PLANS 230 APARTMENTS ...

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, JULY 20, 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

Startling new facts provide vital perspective on key issues New federal statistics unveiled last week paint an image of Miami vastly different from the televised pictures of the glistening metropolis that the nation was concurrently viewing during coverage of Major Michael Lewis League Baseball’s All-Star Game.

National images of downtown Miami, South Beach, Brickell Avenue and our upscale hot spots are very real but only part of the community. Fully inclusive statistics from the Census Bureau’s new American Community Survey look far different.

Those facts deserve close government and civic study as clues to directions for future policies, ranging from dealing with poverty to education, transportation, housing and health care.

Those figures show, for example, that half of the 1.3 million in Miami-Dade County over age 16 who earn anything at all take in less than $35,000 a year, and that only 8.6% earn more than $100,000.

The biggest single group of workers – almost a quarter of them – earn $15,000 to $25,000. Very few of that group could have afforded to fill the empty seats seen at that televised baseball game.

The earnings figures show just how important education can be in Miami. Of persons over 25 who had any earnings, those who didn’t graduate from high school averaged $17,473 yearly, high school grads got $22,192, those with some college $30,280, with bachelor’s degrees $41,080 and with graduate or professional degrees $58,205.

Only 5.5% of Miami-Dade County’s working population takes public transit to commute to work, for which the county will spend about $10 per trip going and coming for users.

The study shows that 80.1% of those over 25 who work have high school degrees or more. The trick will be to nudge the degreed percentage higher and higher, raising not only community standards but also incomes.

As the county’s Transportation Planning Organization targets the future, it should carefully examine not only county incomes and employment distributions but also how we commute. We need to either change commuting habits or forget about adding mass transit, which may be the community’s largest immediate concern.

Of the county’s 1,184,481 workers 16 and over, more than three-quarters – 76.9%, a whopping 910,339 persons – commute to jobs alone in a car, truck or van. Only 9.2% – 109,178 workers – carpooled.

But the shocker is public transportation. Only 5.5% of our workers, 64,597 of them, commute via public transit, which includes Metrorail, Metromover,

L etters More acceleration likely for autonomous vehicles

Miami Today’s article last week “Transportation planners factoring in autonomous vehicles” is a very conservative assessment. Many in the industry – including those developing the technology, vehicle manufacturers, other countries, and other US Departments of Transportation – are targeting 2026-2035 for widespread adoption of the technology and full integration.

The laws (legislative processes) and the regulations (administrative processes) necessary to allow for the full integration of autonomous vehicles are responsive to public demand. Our increasingly global population will demand this.

Please just think about the examples of ride-sharing itself (Uber and Lyft), alternative lodging (AirBnB), and relaxation of social standards (attire, behavior, modesty, etc.) that were inconceivable 15 years ago. There are very large groups of people, coming here regularly, who have little experience in driving; and there are equally large numbers who are aging or who otherwise have no interest in driving,

buses, trolleys and even special service transportation – everything but taxis.

That’s fewer than 33 million trips a year to and from work on mass transit, for which Miami-Dade County alone in the year ahead is budgeted to spend about $10 per trip just in operations – or $20 per commuter a day.

Not only is our percentage of commuters far lower than most cities’, but our costs are high, and fares pay only about 18% of those costs. Those numbers raise serious policy issues.

Gender divisions also raise questions, more national than local. While the county is 52.2% female, in many job classifications the preponderance of workers are male, including jobs where physical need appears immaterial.

Simple examples: more than three quarters of computer, engineering and science occupations workers are male, and the numbers rise to more than 78% in computer and mathematical occupations and nearly 85% in architecture

to the

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particularly in mind-numbing traffic.

Greater acceleration is very likely.

John Dohm

Leaders let Knight Center area crumble; plan needed

It’s an embarrassment to our community and Downtown Miami for our commissioners and city officials to have allowed the state in which the Hyatt, the James L Knight Center and the waterfront river area are today.

The James L. Knight Center was an incredible facility with top-notch performers and events. It’s sad to see its condition today.

The Riverwalk area where Bijan’s Restaurant once operated was a beautiful area that we have just ignored and allowed to dilapidate over the years.

Our city leaders are hypocrites and

and engineering jobs. More than 61% of management jobholders are male.

In lower-paid professions, however, the balance is reversed. In education, training and library occupations, for example, 74% of workers are female.

Affordable and workforce housing supplies have been called scarce in Miami-Dade. The census report affirms the need.

While developers have targeted luxury condos and apartments, just 9% of the county’s 452,826 owner-occupied housing units bring monthly housing expenditures of $3,000 or more and just 1.4% of renter-occupied units do.

Occupants of the largest single category for both owner-occupied and renteroccupied housing pay $1,000 to $1,500 per month – 35.5% of all owner-occupied and 20.8% of renter-occupied housing.

Indeed, 37% of all renter-occupied units rent at less than $1,000 monthly – but very little housing is added to the market in that range. Miami-Dade’s median household income of $43,129 is definitely too low to afford most of our new construction.

And as Washington debates the Affordable Care Act, note that last year, when the survey was completed, of the 2.6 million non-institutionalized residents of Miami-Dade, more than one-quarter – 669,182 – had no health insurance coverage whatsoever, public or private.

That included 61,426 residents under 18.

Answers to policy questions that these startling census figures trigger are complex, but the report at least provides a map of reality, a starting point in setting goals. Our residents are Miami-Dade’s key to economic growth, and we must assess realistically where they are today.

We all love the glittering pictures we show the world of Miami. But internally, we need to see – and act on – the whole picture.

E ditor

only get involved when they can be in the limelight. None of them has cared enough about the city or Downtown Miami, otherwise the entire area would not be in the condition that it is today.

And we want to say that Miami is a world city that can compete with other metropolitan areas in the US and the world and attract major conventions and events? What a joke!

Come on, let’s be real.

As long as we as citizens do not hold these politicians accountable and continue to allow them to be re-elected, we are just as responsible as they are for the demise of such a beautiful area and waterfront property.

Let’s stop the talking and take action.

Let’s put together a plan now, not a year from now, and move forward and make Miami proud.

Vilma Quintana

This isn’t rocket science. If you want to see how it’s done the right way, check out Tampa’s.

In exchange for more space, let Hyatt build higher – and require them to come up with an iconic design for that valuable piece of land, something that will tell anyone looking at it that the city it’s in is MIAMI. DC Copeland

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Make Riverwalk wider

In the redesign, hopefully they will make the Riverwalk outside the widest section. Right now, for the most part, it averages just two people wide (with most of the width maybe a little wider if you walk sideways like a crab).

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.

WEEK OF THURSDAY, JULY 20, 2017

MIAMI TODAY

TODAY’S NEWS

9

FIU offering nation’s first bachelor’s in Internet of Things

By Gabi Maspons

Florida International University is offering the country’s first bachelor’s degree program in the Internet of Things (IoT) next spring.

The Internet of Things is the global infrastructure that connects all physical and virtual devices that are capable of being identified and integrated into communication networks. Home security systems, smart devices and even cars are all connected through the internet and make up the IoT. “We came up with the idea through my research in cyber security and IoT and saw real potential,” said Kemal Akkaya, IoT program director and professor in the Department of Electrical and Computer Engineering.

“There are many applications of IoT in different disciplines, with new opportunities in technology, funding and research,” Dr. Akkaya said. “When we checked to see if any degrees were offered [elsewhere] at the undergraduate level and found none, we saw an opportunity to train our students and design an entirely new curriculum to accommodate their needs.”

FIU’s bachelor degree program will teach students how to manage both the technology and hardware on the growing network of smart devices.

“When students graduate with

degrees in either computer science or engineering they need extra training at an additional cost to the company to fill the gaps,’ Dr. Akkaya said. “Computer science students do programming that applies to IoT devices, but don’t know much about hardware, communication capabilities or cyber security vulnerabilities; while engineering students learn about the hardware and memory of IoT, but don’t know much about programming,” Dr. Akkaya said.

“This degree is geared to provide a comprehensive education that specializes in all areas of IoT: hardware, software, communication and cyber security; it will allow students to get a breadth of knowl-

Ballpark garage great fit for Wellmax medical hub

By John Charles Robbins

It took a few years to find a good fit for the retail space in the Marlins ballpark parking garages, but a health care service provider is making it work.

Wellmax Health Delivery Network LLC, a Florida company doing business as Wellmax Medical Centers, moved into the commercial space at 1422 NW Seventh St. in April 2016.

The garages are owned by the city and operated by the Miami Parking Authority, under the direction of the city’s Off-Street Parking Board.

Authority CEO Art Noriega said Wellmax is very successful at the location.

“They’ve been in business and operating there for a while now,” said Mr. Noriega. “Wellmax is tremendously successful there. It’s a very busy operation.”

The company is leasing about 14,000 square feet for a primary care medical clinic, general offices and administrative space. That represents about one-quarter of the retail space at the garages, which amounts to more than 53,000 square feet.

The company recently renegotiated the lease for the space with the city’s asset management department, and Mr. Noriega presented the new agreement to the parking board for a vote. The original lease was signed in 2015.

The board unanimously approved the amended contract, which mainly lowers the amount of a construction allowance built into the agreement.

All the retail space was left a shell when the garages opened. That is,

the interiors were bare and required some level of construction and outfitting to support commercial uses.

Construction allowances have been negotiated in all leases at the garages.

In the case of Wellmax, the original contract called for the authority to pay the company $2.1 million or $150 per square foot, whichever was less, for a construction allowance for interior build-out work.

The company was to reimburse the authority for some of the construction allowance through monthly payments identified as a finance charge.

All of that wording from the original lease, including the finance charge, was deleted and replaced with a line saying: “‘Construction Allowance’ shall mean the sum of $700,000.”

Other changes touched on rental concessions and rent payments due date. For example, the amended agreement lists the rent commencement date at Nov. 29, 2016.

The annual base rent was set at $297,500, or $21.25 per square foot.

Rental concessions originally covered the first year. The new agreement extends the concessions to 13 months.

Wellmax received total rent abatement the first and second months, 75% in months 3 through 5, 50% in months 6 through 9, and 25% for months 10 through 13.

Wellmax must also pay a monthly operating charge of $10,500.

The lease includes the right to use 50 parking spaces at $65 a month per space. The agreement is for 10 years with two additional five-year periods.

Kemal Akkaya: ‘saw real potential’

edge to cover every application.”

The IoT program will be a 120-credit hour degree that integrates online courses. For the

first two years, students will take FIU’s general requirements and then specialize in IoT in their last two years. Most of the IoT-specific classes for the program are newly developed by FIU professors with backgrounds in IoT, though some of the classes are already offered.

“We designed the degree with a focus on technology and not engineering, so it can be offered as an alternative to students who cannot pass the calculus requirements for traditional engineering majors,” Dr. Akkaya said. “We manipulated the chain to come up with classes that only depend on college algebra.”

“We would like to attract a new body of students,” Dr. Akkaya

said. The program is targeting 50 freshman for the opening semester next spring but expects to grow to about 100 students per graduating class. Dr. Akkaya said FIU will be hiring professors to help teach the new courses, and the university eventually hopes to fully transition the program to an online platform.

“Since this is the first program in the country, we have no idea what students’ expectations will be and they won’t know much about IoT,” Dr. Akkaya said. “We will have to convince them they’ll have a job once they graduate.”

“We anticipate that by 2020, about 30 million devices will be connected through the IoT, and it will be integrated throughout different disciplines like energy, transportation, medicine, healthcare and agriculture,” Dr. Akkaya said. “As more companies get into the business, they’ll need to hire IoT specialists, and there will be many job opportunities for our students to go directly into the workforce.”

“We are proud to lead in this field and provide our students the opportunity to be equipped for the technology-driven jobs of the future, FIU Provost Kenneth G. Furton said in a press statement.

“The Internet of Things degree will allow our students to get and create great jobs, many of which don’t exist today.”

Working together.

Medica offers the Baptist Health network of services.

Other providers are available in our network.

TODAY’S NEWS

WEEK OF THURSDAY, JULY 20, 2017

MIAMI TODAY

13

Charter microscope eyes commission pay, county structure

By Susan Danseyar

The 2017 Charter Review Task Force for Miami-Dade County now has leadership, a schedule and a plan to manage which topics to discuss.

The biggest point of contention among members Monday night was how to narrow the numerous matters for review.

Eric Zichella proposed to group similar charter issues together in order to better focus the panel’s discussions over the coming months.

Maurice Ferré then proposed an amendment to Mr. Zichella’s motion in which he enumerated several potential topics, including the significant powers of the charter, regional decisionmaking, term limits for elected officials, the salary levels for county commissioners and the structure of county government.

His amendment also mandated that the task force continue to be open to, and energetically court, public input and ideas for changes to the county charter.

That public input was evident Monday night when a small cohort of interested citizens showed up to express opinions. All began by thanking the panel for meeting in the evening to facilitate public participation.

Maggie Fernandez suggested county commissioners be paid more than they are now; the panel should look at structure

Photo by Susan Danseyar

County charter review team members Alice Burch and Alfredo Gonzalez chat at Monday night’s meeting.

of government (strong mayor vs. county manager form); and study having some at-large commission seats.

Travis Williams said the issue of county commission salaries should be put back on the ballot, and the county should shrink the commission from 13 to nine members to make it stronger.

Kathy Charles O’Sullivan said she’s participated in the past three charter reviews and submitted a proposal to members primarily concerned with the structure of government and the processes used by the county commission

and the task force.

The panel unanimously elected former county attorney Robert Cuevas as chairman and Maria Lievano Cruz as vice chair. Meetings for the next three months will be on the second and fourth Mondays in August and September and the third and fifth Mondays in October, from 6 p.m. to 9 p.m.in the Stephen P. Clark Center, 111 NW First St. The dates are Aug. 14 and 28, Sept. 11 and 25, and Oct. 16 and 30. Those meetings are televised. The schedule for the following months is to be determined.

The task force will have as many regional meetings as possible in facilities throughout the county. The members mean to complete their work by February 2018, at which time they are to submit for consideration a comprehensive report to Mayor Carlos Giménez and the county commission.

The other task force members at Monday’s meeting were Carlos Diaz-Padron, Jeff P.H. Cazeau, Alice Burch, George Burgess, Luis E. Gonzalez, Neisen Kasdin, Alfredo J. Gonzalez, Marlon Hill and Mike Valdes-Fauli. William

Kerdyk Jr., who was at the first meeting June 28, was unable to attend.

Prior to the meeting, members submitted areas of study they believe should be pursued including commission compensation; the number of commissioners; term limits; the strong mayor or county manager form; commissioners’ ability to award contracts; a city-county home rule board; the initiative petition process for ballots; county compliance with municipal zoning; procedures to deal with county-wide emergencies; the use of social media to increase transparency in government; basing charter amendments on public comments received through the fact-finding process; and the need to assure a more county-wide perspective on the county commission, among others.

Overall, the panel agreed that the areas of study for potential charter changes will be grouped for discussion at upcoming meetings; that the public should be encouraged to participate through attractive marketing techniques and social media; that expert guidance for some of the more complex areas of study should be solicited from around the county and the country; and that despite its lack of funding, the task force could seek funds on an as-needed basis from sources within the county budget, including that of the mayor.

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MIAMI TODAY

WEEK OF THURSDAY, JULY 20, 2017

15

Banking & Finance

Miamians split over future of, need for Dodd-Frank rules

By Gabi Maspons

As rumors of reforming – and even dismantling – Dodd-Frank regulations in Washington have begun to take off, folks in Miami are just as divided as party-leaders.

“The banks have had to react to a large volume of regulations that have taken a long time to implement,” said David Schwartz, president and CEO of the Florida International Bankers Association (FIBA). “The banks have had to analyze [the regulations], study them, find the best ways of implementing them and find the best way to move forward … They’ve had to work very hard and spend a lot of resources.”

While some think the regulations place too heavy a burden on banks, others believe they have helped to re-build trust between banks and local communities after the financial crisis.

“Having these practices in place is better for America,” said Teri Williams, president and chief operating officer at OneUnited Bank. “It wasn’t long ago that people were getting into homes they couldn’t afford.”

After the 2008 financial crisis, Dodd-Frank defined and outlawed misleading or harmful behaviors that are unfair, deceptive, or abusive acts and practices (UDAAPs).

While the government doesn’t

Photo by Marlene Quaroni

“Having these practices in place is better for America,” said Teri Williams, the CEO of OneUnited Bank.

determine which financial products and services are the best for consumers, it requires that banks provide consumers access to all information so they can choose options that are most beneficial to their situation.

“I hope that UDAAP isn’t rescinded, and to be honest, I don’t think that it will be,” Ms. Williams said. “The regulations require financial institutions to be more transparent in their disclosures and avoid being unfair and deceptive … I think that people

see the benefit of building trust and ensuring that we don’t repeat 2008.”

“The main impact for us as a community bank has been a decrease in predatory lending.

We’re now able to provide better home loan services to our community and ensure that they are making good decisions,” Ms. Williams said.

Predatory lending makes wiser financial decisions less attractive because a lender takes advantage of customers’ lack of knowledge

and offers loans they can’t pay for, Ms. Williams said.

“With the regulations in place, now we don’t have to compete with people who are offering unrealistic loans, and our community is able to make more realistic and wiser long-term decisions,” Ms. Williams said.

When asked about the additional burden on banks in order to comply with regulations, Ms. Williams said, “in the case of UDAAP, we have needed to provide multiple reviews of our

communications and listen to feedback from our customers.”

While OneUnited says it has not needed to hire additional staff, the regulations have required the existing staff to take on additional work to ensure all advertising and communications with costumers don’t violate Dodd-Frank.

“Banks comply willingly because the alternative is not good, but it would be much easier for them to do business without all of these rules that are very costly,” Mr. Schwartz said. “Banks are cautious and unhappy that the regulatory burden has become so onerous.”

While not everyone agrees on the extent to which DoddFrank needs to be reformed, Mr. Schwartz said he believes there are some areas where everyone can agree: “In regards to community and smaller union sized banks, we need to ensure we aren’t applying cookie-cutter regulations that don’t make sense across the board.”

“One of the first acts in the new administration was Trump’s executive order that requires two regulations be knocked out for every new one added. This has led to a revision across the board to open up a dialogue with every industry,” Mr. Schwarz said. “We’re actually preparing comments right now [at FIBA] to help.”

Banks hopeful after Federal Reserve’s latest rate increase

By Gabi Maspons

Banks are optimistic after the Federal Reserve raised its benchmark rate by a quarter-point last month, bringing the federal funds rate to between 1 and 1.25 percent. This third increase in the past six months sends a message of increasing confidence in the strength of the US economy.

“Our decision to make another gradual reduction … reflects the progress our economy has made, and is expected to make,” said Janet Yellen, chair of the US Federal Reserve System, in a press conference following the last increase.

The decision comes after many signs that the US economy is in better shape. The unemployment rate is at its lowest level since 2001, and the economy has added jobs for 80 consecutive months, according to the Bureau of Labor Statistics.

“To understand the increase, you have to step back and look at the mandate,” said Joseph Fernandez, Florida regional president of BNY Mellon. “In general, increases tend to be positive for the financial industry because they impact the financial companies’ ability to earn revenue from loans and deposits,” Mr. Fernandez said.

“But while these increases tend to be good for banks, they could potentially have a negative effect

‘While these increases tend to be good for banks, they could potentially have a negative effect on clients.’

Joseph Fernandez The Federal Reserve raised its benchmark federal funds rate last month, its third increase in six months.

on clients.”

Local experts agree that the increase in interest rates is better for banks.

“It gives banks better opportunities to increase their interest rate margins; when [rates] are low, it’s hard to maintain on their lending activities, and as rates begin to rise, it helps also raise their net interest rate margin,” said David

Schwartz, president and CEO of the Florida International Bankers Association. “This is true for larger and smaller banks.”

The Federal Open Market Committee has four more meetings scheduled this year: July 25-26, Sept. 19-20, Oct. 31-Nov. 1, and Dec. 12-13.

Experts have been predicting the hikes before they happen;

Wall Street investors accurately estimated there was a 96% chance that the Fed would raise rates after its two-day meeting in June.

When asked about the possibility of another increase this year, Mr. Fernandez said, “We expect another move in September if they continue to see traction in the labor and commodities market.”

As for Mr. Schwartz, he thinks

“a lot of it depends on tax and regulatory reform. Those two major areas have a huge impact on the economy – if we’re able to invest more in businesses, then economic activity will move up, and I definitely expect them to increase the rates. Until we see that increase in economic activity, we’re not going to see a drastic increase in rates.”

18

MIAMI TODAY

BANKING & FINANCE

WEEK OF THURSDAY, JULY 20, 2017

Fitch rates $287 million Mount Sinai bonds BBB+, stable Some $287 million in outstanding Mount Sinai Medical Center of Florida bonds have received a BBB+ rating and a stable outlook from Fitch Ratings.

Mount Sinai’s total long-term debt was about $341.5 million as of March 31 and is 97% fixed-rate interest, Fitch reported, saying it views the organization’s “current debt profile as conservative.”

Fitch pointed to what it called a high but moderating debt burden on Mount Sinai, saying “maximum annual debt service equated to a high 5.2% of total revenues in 2016 compared against Fitch’s BBB category median of 3.6%,” but noted that the annual debt service had declined from 5.7% in 2013.

Mount Sinai’s financial profile was rated stable, as in the year ended Dec. 31 the organization generated operating income of $16.1 million, equating to an operating margin of 2.9% and an operating total of earnings before interest, taxes, depreciation and amortization (EBITDA) of 9.9%, “both better than Fitch’s BBB medians.”

Fitch noted that “operating cash flow was a solid $42 million and $43 million in 2016 and 2015, respectively.” In the first quarter of this year, Fitch said, the operating margin was 4.3% and EBITDA was 14.3%.

Noting that Mount Sinai might be issuing $60 million more in debt,

The Mount Sinai campus on Miami Beach will add a surgical tower and a new emergency department.

Fitch wrote that “in light of already elevated leverage position and the potential for an additional debt issuance, Fitch is of the opinion that there is limited potential for a higher rating during the outlook period.”

A year ago, Fitch issued the same BBB rating on the Mount Sinai debt and the same stable outlook.

The bonds being rated are secured by a pledge of Mount Sinai’s gross revenue, a first mortgage on all of its properties, and a debt service

reserve account on $111.3 million of the debt issued in 2012. In addition, Fitch notes, the separate but related Mount Sinai Medical Center Foundation, which had total assets of $173 million at the end of 2016, had provided an unconditional guarantee on the Mount Sinai debt.

The foundation, Fitch noted, is expected to transfer at least $45 million for Mount Sinai’s replacement hospital tower from existing funds.

A 750-space garage is already

completed as the first phase of the medical center’s expansion. The next phase is the surgical tower, which will double the number of surgeries Mount Sinai can perform from the current 13,000 per year.

The seven-story tower will hold 154 private rooms, each overlooking Biscayne Bay, and 12 new operating rooms.

“Mount Sinai is very much a surgical destination,” said Steven Sonenreich, medical center presi-

dent and CEO, when the project was announced. “More than 70% of our patients come from an area outside of Miami Beach.”

A new emergency department, able to accommodate up to 100,000 visits a year, is to follow. Both facilities are expected to be completed by the summer of 2018. Fitch put their total cost at about $230 million.

The new structure will house the City of Miami Beach’s Emergency Management Department, which will have a command center there for weather emergencies and other crises, as well as a . 40,000-squarefoot emergency treatment space with more than 50 individual rooms.

The current emergency department opened in 1972 to accommodate 25,000 visits per year.

A year ago Fitch reported that the medical center as of March 31, 2016, had $321.3 million in unrestricted cash and investments, which equated to 221.5 days of cash on hand. The current report puts the figures at $349 million and 227.2 days of cash on hand.

Fitch noted that the medical center’s service area is heavily weighted toward governmental payors, 65% Medicare and Medicaid gross payors, “which challenges profitability.... Fitch recognizes the risk of having a high base of governmental payors that can expose the organization to reimbursement pressures at the state and federal level.”

CITY OF MIAMI, FLORIDA NOTICE OF PUBLIC HEARING The Miami City Commission will hold a Public Hearing on Thursday, July 27, 2017 at 9:00 A.M., to consider the award of a contract to the non-profit organization listed below through Anti-Poverty grant funds from the District 4 share of the City of Miami’s Anti-Poverty Initiative Program. P.O.I.S.E., Inc. is a nonprofit organization designed to address the needs of the communities of South Florida by offering men, women, and children the opportunities to acquire the vocational skills needed to break the homeless and unemployed cycles, and to consider the City Manager’s recommendations and finding that competitive negotiation methods are not practicable or advantageous regarding these issues: •

P.O.I.S.E, Inc. – for a monthly 3-hour basketball clinic to enhance the Athletes in Action Initiative.

Inquiries regarding this notice may be addressed to Malissa Treviño, Project Manager for the Office of Community Investment, Office of the City Manager, at (305) 416-1005.

This action is being considered pursuant to Section 18-85 (A) of the Code of the City of Miami, Florida as amended (the “Code”). The recommendations and findings to be considered in this matter are set forth in the proposed resolution and in Code Section 18-85 (A), which are deemed to be incorporated by reference herein and are available as with the regularly scheduled City Commission meeting of July 27, 2017 at Miami City Hall, 3500 Pan American Drive, Miami, Florida 33133.

The Miami City Commission requests all interested parties be present or represented at the meeting and may be heard with respect to any proposition before the City Commission in which the City Commission may take action. Should any person desire to appeal any decision of the City Commission with respect to any matter to be considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made including all testimony and evidence upon which any appeal may be based (F.S. 286.0105).

In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice) no later than five (5) business days prior to the proceeding. TTY users may call via 711 (Florida Relay Service) no later than five (5) business days prior to the proceeding.

Todd B. Hannon City Clerk

# 28786

The port last issued debt in 2014 to do projects including dredging.

County lets port issue notes at $200 million for upgrades

By Susan Danseyar

Miami-Dade County commissioners voted Tuesday to allow PortMiami’s capital improvement program to issue commercial paper notes of up to $200 million on a rolling basis to finance ongoing upgrades to terminals and infrastructure.

Commercial paper notes are short-term, unsecured financing that can often be less expensive than bank lines of credit so long as the issuer has excellent credit ratings. No collateral is required to secure repayment of the notes, another significant advantage of the issuer.

The port will use the funds for temporary cash flow to continue improving facilities at both its cruise and cargo segments, including ongoing terminal expansion to accommodate larger cruise ships, building a new cruise terminal, acquiring new cranes for loading and unloading cargo on larger ships, acquiring and developing an inland location

to handle containers, and upgrading automation at truck gates.

The ordinance also foresees the issuance of $400 million in additional port revenue bonds that would pay off the commercial paper notes and provide further funding. Ultimately, the new financing would be paid for from the appropriation of “legally available non-ad-valorem revenues” of the county, according to the legislation, but not increased taxes.

The port currently has over $1 billion of outstanding debt, including $569 million in revenue bonds, $78 million in general obligation bonds, $288 million in Sunshine State loans and $106 million in capital acquisition bonds. It last issued debt in 2014 to support infrastructure projects, including dredging the port deeper to allow larger ships to enter.

The commercial paper program will provide interim financing for the port’s five-year capital improvement program, most of which has already been approved by the county commission.

WEEK OF THURSDAY, JULY 20, 2017

TODAY’S NEWS

MIAMI TODAY

19

Fourth concept for river marina site targets 230 apartments

By John Charles Robbins

A plan to redevelop a property on the Miami River that has an existing marina has changed at least three times in as many years.

The latest proposal would require a rezoning and a loss of scarce marine-industrial zoned property, giving some officials pause.

Losing the working river to residential development was a thorny issue more than a decade ago and led to a wave of litigation.

Lawsuits were consolidated into one case and settled, basically offering protections for marineindustrial uses on the river.

That history was on the minds of members of the Miami River Commission, who on a split vote July 10 approved of the concept of the latest proposal.

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

The marina is permitted for up to 45 vessels.

Owner-developer Homero Meruelo wants to redevelop the marina and has submitted various proposals, with differing residential components.

What began in 2014 as Miami Mega Yacht Marina was changed in 2015 to SeaVault, and changed again in 2016 to Las Brisas Yacht Club.

The latest proposal is named Las Brisas Apartments and Marina. The new plan calls for reconfiguring and improving the 45-slip marina, realigning an interior drive and improving it as a public street, and constructing a five-story multi-family complex for 230 apartments.

The plan includes a yacht club, bait-and-tackle shop, on-site parking, and a restaurant with waterfront dining.

Attorney Jorge Navarro, representing Mr. Meruelo, said public benefits to the latest proposal include a dedicated public easement and access walkway to the river, and a public riverwalk the full length of the property on the river.

The riverwalk would connect to an existing riverwalk on the west and with the inland greenway on the east.

At top are metal hangars over wet boat slips. The apartments would rise in the green area in the center.

The entire 9.44-acre property is zoned D3 marine-industrial. The owner plans to request rezoning of the southern portion, about 3.8 acres, to T6 high density residential.

In a letter to the river commission, Mr. Navarro wrote: “The proposed redevelopment will revitalize the subject property and provide a significant economic development opportunity to the Miami River and the greater Miami area.”

The property is on Northwest 24th Avenue and is touched by Northwest 16th Street Road and Northwest 15th Street.

“The overarching goal of the proposed redevelopment is to activate this portion of the Miami River by increasing public access and connectivity to this unique natural resource, as intended by the Miami River Greenway Action Plan and the Miami River Corridor Urban Infill Plan, while improving and enhancing the marine related uses at the subject property,” Mr. Navarro wrote.

The proposed rezoning and land use changes are solely for the inland portion and would provide a buffer and create a transition from the single-family neighborhood to the south of the site, according to Mr. Navarro.

He said a market and economic feasibility study was prepared in June on the latest proposal.

“Specially, the site study con-

County look at wage theft to study tougher penalties

By Susan Danseyar

theft in our communities.”

Mr. Diaz said his legislation sends a message that wage theft “is a thing of the past.” He sponsored legislation in March that amended the county’s wage theft ordinance to allow victims to recover attorney fees when going after employers who engage in wage theft.

If approved by the full commission, any employer – whether a county vendor or contractor – that goes through a wage theft order in court may not be able to get a lease for county property or bid on a county contract.

County commissioners are scheduled in September to consider toughening penalties on employers who engage in wage theft and help victims of wage theft take advantage of resources available to them.

An ordinance sponsored by Jose “Pepe” Diaz and unanimously approved at the Government Operations Committee meeting last week increases the fine for repeat offenders by up to 60% for a fourth offense and bars companies that engage in wage theft from doing business with the county.

Details: www.miamidade.gov/ “This is long overdue,” Mr. Diaz govaction/matter.asp?matter= said to the committee July 11. “We continue to improve on this and 171588&file=true&yearFolder tweak it. There’s no room for wage =Y2017

cludes that the current proposal, which retains a working waterfront on the Miami River with an improved marina and bait shop, combined with a transitional multi-family building on the waterfront parcel, is the only economically viable method to provide public access to the riverfront and ensure the economic viability of the existing marine uses at the subject property in accordance with that envisioned by the Miami River Greenway Action Plan,” Mr. Navarro wrote.

At the July 10 meeting, he told

the commission that all of the area with marine uses now “will stay marine.”

He added, “These residential uses will support the marina uses.”

Mr. Navarro said Mr. Meruelo intends to preserve the 45 slips allowed in the existing Marine Operating Permit, and as part of a covenant will promise not to seek a reduction in the number of slips.

It is the proposed rezoning that makes this latest proposal stand out from prior proposals.

The potential loss of marineindustrial zoned land made River

Commission Chairman Horacio Stuart Aguirre initially suggest deferring action until a legal opinion could be obtained.

The settlement of the river litigation years ago specifically mentioned three properties and the site at 1583 NW 24th Ave. is one of them, according to Mr. Aguirre.

Commission members convinced Mr. Aguirre to allow the proposal to be presented.

Two condo owners who live near the site spoke in favor of the latest proposal, saying it would be an improvement to the neighborhood.

Miami Mayor Tomás Regalado, a member of the river commission, made the motion to approve the concept of the latest proposal, contingent on an opinion from the city attorney’s office that the proposal would not impact the legal settlement. An amendment to the motion was allowed, which said the project should not set a precedent for other similar riverfront properties.

The vote was 8 to 3. Bruce Brown of the Miami River Marine Group was one of the three “no” votes.

Part of the mission of the river commission and the Miami River Marine Group is preserving and protecting the marine-industrial uses and the working river.

CITY OF MIAMI, FLORIDA NOTICE OF PUBLIC HEARING The Miami City Commission will hold a Public Hearing on Thursday, July 27, 2017 at 9:00 A.M., to consider the award of a contract to the non-profit organization listed below through Anti-Poverty grant funds from The Mayor’s share of the City of Miami’s Anti-Poverty Initiative Program. Peace Leaders Foundation, Inc. is an organization created to rescue the victims of domestic violence and child abuse. The organization offers advice and counseling, guiding and rebuilding lives and those of their children. The faith and prayer based foundation seeks to feed the spirit of strength and work with the self-esteem in hopes of building a successful future, and to consider the City Manager’s recommendations and finding that competitive negotiation methods are not practicable or advantageous regarding these issues: • Peace Leaders Foundation, Inc. – For general program funding.

Inquiries regarding this notice may be addressed to Malissa Treviño, Project Manager for the Office of Community Investment, Office of the City Manager, at (305) 416-1005.

This action is being considered pursuant to Section 18-85 (A) of the Code of the City of Miami, Florida as amended (the “Code”). The recommendations and findings to be considered in this matter are set forth in the proposed resolution and in Code Section 18-85 (A), which are deemed to be incorporated by reference herein and are available as with the regularly scheduled City Commission meeting of July 27, 2017 at Miami City Hall, 3500 Pan American Drive, Miami, Florida.

The Miami City Commission requests all interested parties be present or represented at the meeting and may be heard with respect to any proposition before the City Commission in which the City Commission may take action. Should any person desire to appeal any decision of the City Commission with respect to any matter to be considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made including all testimony and evidence upon which any appeal may be based (F.S. 286.0105).

In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice) no later than five (5) business days prior to the proceeding. TTY users may call via 711 (Florida Relay Service) no later than five (5) business days prior to the proceeding.

Todd B. Hannon City Clerk

# 28785