Miami Today: Week of Thursday, December 7, 2017

WEEK OF THURSDAY, DECEMBER 7, 2017

A Singular Voice in an Evolving City

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NORTH MIAMI SET TO SEEK ARCHITECTURAL PROPOSALS TO CREATE 16-BLOCK CHINATOWN, pg. 3 GAS TAX FOR TRANSIT: Miami-Dade’s Transportation Planning Organization is being urged to adopt a resolution this week asking the county commission to reinstate two cents of the five cents per gallon in local option gasoline taxes that state law permits in order to help fund the Smart plan to add six more legs of mass transit in the county.

The resolution by Dennis Moss, member of both the planning organization and the county commission, notes that county commissioners in 1996 rescinded two cents of the five-cent local option. The resolution is asking commissioners to apply the two cents in added gasoline taxes after the planning organization approves Priority One status for the construction phase of one or more of the rapid transit corridors in the smart plan.

The Achiever

By John Charles Robbins

LET’S SPLIT THE COST: The county’s Transportation Planning Organization is being asked to call on the Florida Legislature and the Florida Department of Transportation to provide a 50% funding match for each phase of the development and construction of the North and South Dade Transitway Corridors that are a linchpin of the county’s Smart plan to add mass transit in six separate corridors of Miami-Dade. The resolution by Dennis Moss that is to be heard this week says that a 50% match “would help realize significant transit solutions.” His resolution says the county currently estimates that the capital costs of the North and South Dade Transitway Corridors total $1.5 billion, with annual operation and maintenance costs pegged at $38.9 million starting in fiscal year 2023 and future vehicle renewal and replacement costs 20 years after the start of operations set at $341 million.

TRAIN TO PLANE: Miami International Airport has been ranked the most transit-accessible airport in the US, according to the transportation technology firm TransitScreen. The airport received a mobility score of 66 of a possible 100 points, primarily because of the Miami Intermodal Center, which offers access to Metrorail, Tri-Rail, nine inter-city bus routes, and a full-service rental car center housing 14 companies. Amtrak trains are planned to eventually use the facility, which is connected to the airport terminal by an enclosed, climate-controlled 1.25-mile corridor with a people-mover system. TransitScreen’s study analyzed the 20 busiest US airports in passenger traffic and their access to mass transit and taxis, in addition to ride-sharing, bike-sharing and car-sharing options.“This national study is encouraging news for our residents and for visitors to our community,” said Miami-Dade County Mayor Carlos Giménez. “MIA continues to earn accolades for its passenger and cargo operations, concessions, customer service, and now, for its ground transportation options.”

Nancy Klock Corey

Photo by Cristina Sullivan

Overseeing 19 offices of Coldwell Banker Residential The profile is on Page 4

On city stage, playhouse’s final curtain scripted

By John Charles Robbins

Further drama played out as hundreds of people packed Miami City Hall last week to debate the fate of the Coconut Grove Playhouse. There was little agreement except on one point: the time to act is now.

Waiting another month or year only subjects the massive structure to further wear and tear from Mother Nature and time.

No decisions were made: the town hall was designed to hear comments on restoration of the theater.

Opponents of the county’s restoration plan are now focused on packing City Hall on Dec. 14 when the city commission is to hear an appeal of the Historic and Environmental Preservation Board’s April 4 decision granting a special certificate of appropriateness to partly demolish the structure.

The one-time cinema at 3500 Main Highway in the Grove has been closed more than a decade as state, county and city officials debated its fate. The state owns the theater and leases it to Miami-Dade County and Florida International University.

The county sought the certificate of ap-

New towers on old roads vex judges

propriateness. Its redevelopment plan would basically save and restore the theater’s front, demolish the larger auditorium and build a new 300-seat theater, along with a public garage with residential units.

The historic and preservation board conditionally approved the special certificate of appropriateness. Residents Barbara Lange and Katrina Moss appealed that decision.

The county deemed the board’s April 4 vote approval of its master plan concept.

County Commissioner Xavier Suarez and Miami Commissioner Ken Russell hosted the town hall.

Mr. Russell called the playhouse “our greatest treasure in the Grove” and vowed imminent action.

“I don’t want to lose our past … we’re going to do this now – we just need to get on the same page,” he said.

That’s proving to be a challenge with preservationists, theater lovers and others taking sides: Many support the county plan, which includes having GableStage, a Coral Gables nonprofit, run the 300-seat theater; many back a proposal from arts supporter Mike Eidson for a 700-seat theater; and others like

a plan floated a few years ago by architect R.J. Heisenbottle to restore the structure as a 700-seat theater and build a separate 200-seat studio theater next door to what is now a threestory Mediterranean Revival style building at Main Highway and Charles Avenue.

Michael Spring, county cultural affairs director, spoke briefly last week to lobby for the county’s plan.

“I can tell you it will be beautiful – a great regional theater. And best of all, we’re already under way,” he said.

County officials have set aside $20 million in approved bonding to revive the theater.

County Mayor Carlos Giménez delivered a to-the-point statement at the meeting, saying voters decided in 2004 to “breathe life” back into the playhouse and the current standstill hurts.

“With each day that passes, we’re missing out. We need to get it done now. The state and the county have approved this plan. It’s a sad state that today we’re the victim of wild speculative schemes,” he said. “We can argue about the size and [who will run the theater], or we can come to our senses. The county plan works.”

Ever-worsening traffic is again vexing the city’s Urban Development Review Board, which reviews large projects that will bring fast-developing Miami more people. Board members are struggling with controlling growth and worrying about how much infrastructure can bear.

On Nov. 29, the board weighed four projects that total 1,754 new residences along with retail, hotels and loads of office space.

The presumption is that this continued growth will also add cars competing for the same stretch of pavement.

The city is approving some projects with waivers to allow less parking, which board members questioned. Fidel Perez asked that the planning and zoning directors meet with the board to discuss a balance of growth and traffic.

Neil Hall, while reviewing a high-rise, spoke of sweeping development. Biscayne Boulevard is seeing “major, major construction,” he said, “yet there’s no consideration of transportation.”

Mr. Perez agreed. “Every day that passes we approve more and more, [while we already] have a huge traffic problem.”

City code reduces a project’s required parking near transit. One reason is those residents won’t need a car and can use mass transit.

There’s even talk of a new generation abandoning cars.

Mr. Perez agreed with policy that encourages public transit over private cars, “but the [traffic] problem just gets bigger and bigger.”

One developer’s attorney, Vicky Leiva, said the bulk of responsibility for transportation is the county’s and the county member majority on the MiamiDade Transportation Planning Organization. “We’re all kind of waiting to see what the county will do,” she said.

Three years ago, the review board sought a similar meeting with city planners to talk traffic. The city since has created a transportation trust, expanded free trolleys and supported the regional transportation plan.

SPLIT CITY REVIEW DECISION FOR OMNI AREA TOWERS ...

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CHARTER REVIEW MAY BAR PAY-PER-NAME PETITIONS ...

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VIEWPOINT: LOOK FOR WATERBORNE TRANSIT ON BAY ...

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WATER TAXIS TO BOAT SHOW FACE A MANATEE ISSUE ...

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BRAZILIAN TOURISM REBOUNDS FROM ITS 26% PLUNGE ...

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GENERIC DRUG FIRM ASKS BIGGER COUNTY INCENTIVE ...

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SOUTH DADE DEVELOPMENT BID STRESSES OPEN LAND ...

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ROAD TO TAX REFORM STRATEGY PAVED WITH ADAGES ...

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MIAMI TODAY

TODAY’S NEWS

The Insider GROVE GROUP GETS NEW LEADER: Nicole Singletary has been appointed executive director of Coconut Grove Business Improvement District, after serving as communications and community affairs director for the Town of Miami Lakes for five years. Projects she will steer include a multimillion dollar sidewalk restoration and beautification project along the district’s main corridors and a public visioning study to be conducted by Perkins+Will and PlusUrbia Design. “Nicole has extensive knowledge of local, state and county governmental operations, and a proven track record in developing and maintaining rela- Nicole Singletary tionships with elected officials, executive professionals and stakeholders,” said Ken Russell, BID chair and Miami commissioner.

HAITIAN PROTECTION TASK FORCE: Miami-Dade Legislative Delegation Chair Rep. Kionne McGhee last week appointed Sen. Daphne Campbell chair and Sen. Rene Garcia vice chair of a new task force to investigate and act following the White House announcement that it will end the Temporary Protected Status of immigrants from Haiti. Sen. Campbell was born in Cap-Haïtien, Haiti, and Sen. Garcia has been an advocate for immigrant communities, Rep. McGhee said.

BIKE LANE NETWORK: A nine-month, $80,000 Kionne McGhee study funded by federal and local gasoline tax funds would look at the feasibility of integrating public easements throughout Miami-Dade County to set up a network of interconnected bicycle lanes under a resolution that county Commissioner Javier Souto is bringing before the county’s Transportation Planning Organization today (12/7). The planning organization’s governing board passed a resolution in October directing the preparation of a scope of work and budget for the study that are now to be voted on.

FEE-FOR-ALL: The first area report on collection of impact fees and water and sewer connection fees in Miami-Dade shows the largest collections in three of the six categories fell in the commission district of Barbara Jordan. Impact fees must be spent in the fee districts in which they are collected; the report notes that those boundaries “do not align with commission district boundaries.” Nearly $3.5 million in fire and emergency services medical impact fees were collected in Ms. Jordan’s district from April 1 through June 30, more than five times the total in the district of Jose “Pepe” Diaz, which was second highest. Barbara Jordan The nearly $1 million in police impact fees collected in Ms. Jordan’s district was nine times the second-highest, and the $11.7 million in road impact fees in her area more than doubled the second-place figure, in Mr. Diaz’s district. The highest total of water and sewer fees was in the district of Audrey Edmonson, the most educational facilities fees in the district of Bruno Barreiro and the most park impact fees in the district of Daniella Levine Cava.

MAYOR RAISES PAY ISSUE – HIS OWN: Miami-Dade Mayor Carlos Giménez, who when elected in March 2011 took a voluntary 50% cut in the $233,124 salary that predecessor Carlos Alvarez had before he was recalled from office, has asked commissioners for a process to set his future pay. In a memo Monday, he said the county’s Human Resources Department and Office of Management and Budget, which report to him in his dual role as manager, are prepared to help commissioners set a new salary but “it would be improper for the mayor to propose a process to establish his or her own compensation.” He pointed Carlos Giménez out that Mr. Alvarez also received executive benefits that Mr. Giménez rejected. The last look at a process for the mayor’s salary, he said, was in 2001, when it was tied to the pay of the manager – an eliminated job. Mr. Giménez is a government retiree who gets a pension. The county charter sets commissioners’ salaries at $6,000 but doesn’t set the mayor’s pay.

CHAT ABOUT YOUR CHARTER: Charter Review Task Force member Marlon Hill on Monday encouraged the public to continue making suggestions about the charter, Miami-Dade’s version of a constitution. County staff advised people to go to the panel’s website page and click on an icon in the banner at the top of the page called “contact us.”

Go to www.miamidade.gov/charter/task-force-2017.asp RETAIL SPACE SPURT: More than 3.4 million square feet of retail space will open in South Florida this year, according to a third quarter analysis by Marcus & Mil- Marlon Hill lichap. The bulk of that added retail space will be in Miami-Dade County, the firm reports, with 2.3 million square feet of added retail. But while there is action in Miami-Dade, “construction remains subdued in Broward and Palm Beach counties.” The firm lists Miami Worldcenter just north of downtown Miami as providing the biggest retail boost in MiamiDade at 450,000 square feet, followed by the 300,000 square feet added in the first quarter of the year in CityPlace Doral.

SPACE CHASE: While the Miami metropolitan area had 3.8% retail space vacancy in the year’s second quarter, vacancies varied widely within the area, Marcus & Millichap found. In Miami-Dade, 10 distinct geographic areas were below the average, lowest being Aventura at 0.8% retail vacancy, far and away the tightest market. The other nine below average in vacancy were Coral Gables at 1.7%, Medley/Hialeah 1.9%, Miami Airport 2%, West Miami 2%, Hialeah Gardens 2.8%, Coral Way 3%, Kendall 3.3%, Northeast Dade 3.3% and Miami Beach 3.7%. Rents, which averaged $33.86 per square foot in the metro area, varied widely too.

BUILDING BRIDGES: University Developments has selected Coastal Construction Group as general contractor for University Bridge Residences, a purpose-built condominium for students across the street from the main campus of Florida International University and connected by a pedestrian bridge. The 20-story, 492-unit project is scheduled for delivery before the 2020-2021 academic year begins.

WEEK OF THURSDAY, DECEMBER 7, 2017

Split decision for Omni area towers

By John Charles Robbins

One of two mixed-use residential projects planned for Miami’s Omni neighborhood won a green light from a city review board last week as the other was deferred for more design work.

Both are from The Melo Group, a family development company championed for building more affordable housing for the growing city.

At a special meeting, the Urban Development Review Board heard presentations on Art Plaza and Miami Plaza, two of three major mixed-use residential projects planned by Melo to rise near the School Board Metromover Station.

The third, also from Melo, is Square Station, which is now under construction.

The board recommended approval of Art Plaza but raised enough concerns about Miami Plaza that the developer’s team agreed to a one-month deferral and is to update plans and return Dec. 20.

Review board members said the plans for Miami Plaza appeared unfinished and incomplete, and some were troubled by the size.

“I have a problem. It’s very massive … the building is not reading well,” said board member Fidel Perez.

“It’s a massive block of a building. You’re basically taking up the whole site,” said Mr. Perez.

Miami Plaza is planned at 1502 NE Miami Place, just north of the Metromover station. It is designed as a single 36-story tower with 437 apartments and about 7,000 square feet of retail-commercial space, rising out of a large parking pedestal for more than 500 vehicles. The project will also have 14% dedicated workforce housing.

“The Omni/Arts and Entertainment District is hot,” said attorney Iris Escarra on behalf of Melo affiliates planning and building the mixed-use projects in the neighborhood.

She mentioned other projects breathing life into the area like Canvas and Filling Station Lofts.

Ms. Escarra said the Melo Group has the advantage of owning land near public transit.

“We have existing transit – we’ve got it,” she said.

The School Board Station is the northern end of the current Metromover route and for many years was surrounded by vacant land and parking lots. This area has been underutilized for some time, she said.

These three projects from Melo are expected to activate the neighborhood in a big way, she said.

“What’s really happening is that a neighborhood is being created,” said architect Arturo Griego, who gave a presentation on both projects.

He said The Melo Group is very passionate about providing housing affordable to “the normal people of Miami, so to speak.”

Like Square Station, Miami Plaza is designed with 30-foot-wide

‘We don’t need these tall buildings.’

Neil Hall

Art Plaza got the board’s plaudits.

sidewalks that lend themselves to really activating the space, said Mr. Griego.

He said they attempted to break up the mass of the structure with the placement of the balconies.

“You’ve not done enough to make the building look less massive,” said Mr. Perez. “You have the opportunity to make it better,” he said, suggesting the apartments be built in two towers at different heights.

Board member Neil Hall agreed.

“You have the opportunity to distinguish your brand differently,” he said.

Mr. Hall praised another Melo project completed nearby, Melody Tower. It is a 36-story mixed-use residential building at 245 NE 14th St., across the street from the Adrienne Arsht Center for the Performing Arts.

Along with providing 497 rental apartments, Melody has about 8,500 square feet of ground floor commercial space and a landscaped plaza with public art.

Mr. Hall said Melody is a “strong project” with a wonderful outdoor space, and the public art on the corner gives it “a good feel.”

Referring back to the projects next to the Metromover station, Mr. Hall complained of the mass of three large projects right next to one another.

“We don’t need these tall buildings,” he said, suggesting they drop the scale of Miami Plaza.

Acting Chairman Anthony Tzamtzis and board members Hall and Ignacio Permuy all said the Miami Plaza plan was lacking needed details.

The developer is asking for seven waivers on Miami Plaza, including: The substitution of two commercial loading berths for an industrial loading berth. Up to a 30% reduction in required parking spaces, allowed by code for sites near public transit.

The requested reduction is 21.4%. A decrease to the minimum drive aisle width by 10% from 23 feet to 22. Allow for a 10% reduction of the minimum setback above the eighth story.

‘What’s really happenAllow an up to 10% increase of the maximum floorplate above ing is that a neighborthe eighth story from 15,000 square hood is being created.’ feet to 15,954.

Arturo Griego The developer is requesting eight variances for Art Plaza that nearly

mirror the waivers requested for Miami Plaza, including up to a 30% reduction of parking spaces.

Art Plaza, to rise at 58 NE 14 St., is designed as a pair of 36-story towers offering about 655 residential units and about 15,000 square feet of commercial-retail space. Parking would be in a pedestal level hugged by the two towers and designed for more than 880 vehicles.

“This is definitely a better building than the last,” Mr. Perez said of Art Plaza.

The board unanimously recommended approval of Art Plaza, with a few suggestions for the developer: a center design element in the towers be recessed further, that balconies facing each other be placed in different positions, and the location of the mechanical equipment be reevaluated.

Art Plaza will also have dedicated workforce units.

In a letter to the city about Art Plaza, Ms. Escarra wrote of the area: “The character of the surrounding areas has evolved to consist of more liberal commercial uses and higher scale multi-family residential uses … [serving] as a catalyst in the revitalization of the area and stimulated economic growth and jobs in the Omni CRA and surrounding neighborhoods.”

Construction is ongoing on Square Station, the twin 34-story towers built to a connected pedestal providing 946 parking spaces, along with about 15,000 square feet of commercial-retail space.

There will be 355 apartments in each building.

Melo is to designate 96 of the 710 apartments as workforce housing.

Workforce housing is generally defined as attractive and affordable residences for middle-income service workers, such as police officers, teachers and nurses, near their jobs.

Square Station is slated for completion in the first quarter of 2018, and apartments are now available for preleasing, according to the company.

A Singular Voice in an Evolving City

Phone: (305) 358-2663 Staff Writers:

Gabi Maspons gmaspons@miamitodaynews.com John Charles Robbins jrobbins@miamitodaynews.com Katya Maruri kmaruri@miamitodaynews.com People Column people@miamitodaynews.com Michael Lewis mlewis@miamitodaynews.com

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, DECEMBER 7, 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

Follow New York’s transit lead: look to ferries plying bay We’ve heard the plea for years: if only Miami had rail like New York’s subways we’d unsnarl traffic.

So we crafted the Smart plan, six legs of rail to stitch the county together with a system to rival Michael Lewis New York’s.

Then two things intervened: we found that rail legs would take many years and cost many billions, and technology got ahead of us – change that in a few years might move us faster for far less than the billions we don’t have anyhow.

That’s when county Mayor Carlos Giménez got off the train. Instead of rail, he said, think of transit that doesn’t need either fixed track or fixed technology. It will be faster to start, cheaper than rail and can be repurposed when technology inevitably catches up with our needs and our price point.

Meanwhile a not-so-funny thing happened: Manhattan added to its subways Jan. 1 with three new Upper East Side stations that had been started back in 1972, but the city ran into troubles so big with the whole system’s delays, breakdowns and overcrowding that six months ago Mayor Bill de Blasio got off the train himself: the city added a fleet of 149-passenger

boats that began ferrying New Yorkers who were fed up with the subways.

As the New York Times reported last week, New York added four ferry lines, is ordering 349-passenger boats and is studying express routes because it already has surpassed its use forecast by 700,000, carrying 2.5 million. That’s a pace for 5 million a year, about a quarter of what our Metrorail or half of what our free Metromover carries, a helpful slice of commuter relief.

At its current pace, New York will total $325 million on boats and subsidized costs by 2023, because the $2.75 fare – the same as a bus or subway – won’t cover costs any more than fares support buses and subways.

All transit, road or rail, is subsidized – the question is, by how much? On New York’s water service, it’s $6.60 subsidy per passenger.

The New York experiment of added waterborne transit – they’ve had a free Staten Island ferry for decades – should play into the thinking of Mr. Giménez and others who want a system that doesn’t have to follow one route forever. Nothing is more fluid than water.

Actually, Miami-Dade has been looking seriously at waterborne transit for more than two decades.

When the Marlins Ballpark was rising in an area served only by buses and people truly believed games might fill the stadium, officials talked of a Miami River ferry to bring in fans. It might have worked, too.

Several drop-in-the-bucket water transit moves have already been made.

A private water taxi service is based at Bayside Marketplace. Miami Beach has a pilot program. Miami recently approved a water taxi stop on Brickell Key. An estimated 80% of visitors to the 2016 boat show on Virginia Key arrived via a temporary water taxi flotilla, so the show this week is seeking water taxi permission for five more years.

As road traffic congeals and trip times expand, we should intensify studies of water traffic, not as a principal mode of travel – it can serve only waterfronts – but as a way to reduce car trips.

That would certainly fit both the mayor’s dictum of flexibility and adaptability and the need to take as many paths as possible to keep people moving in Miami-Dade.

A decade ago the former Metropolitan Planning Organization found that we could run commuter catamarans or hovercraft on Biscayne Bay for $13 million to $16 million in hard costs and $4.5 million a year in subsidies on routes from Haulover and Matheson Hammock to downtown Miami. This seems to both underestimate cost and underuse waterways, which could serve many more areas.

Last year, Miami city commissioners were told that county transit officials were studying everything from a “water bus” on a fixed schedule to on-demand water taxis (think waterborne Uber) that the county, the city or both could run. That study is

fresh enough to warrant careful review.

All agree we need transit action, in multiple formats. The New York flow on the water makes clear that we should pour ferries into the transit mixture.

Water transit, like every mode, has pros and cons. The big advantages are that we don’t have to lay track or buy right-of-way or compete with cars on streets. We have underutilized surface on Biscayne Bay and the Miami River that is both flexible – route changes require no infrastructure other than docks – and scenic.

That seems to fit well with the new criteria that Mayor Giménez has adopted for train-like buses and could be put into operation simultaneously, and probably at similar costs.

There are cons, of course. Water travel might need more subsidy per rider than buses. Waterways are regulated and we must protect the environment – 7-mileper-hour limits in manatee zones would be an issue when 30-mile-per-hour travel is optimal for commuters. We’d need more docks. Watercraft would have to fit under bridges at high tide to avoid stalling auto traffic above to make way for waterborne traffic below. And weather is a wildcard.

Each of these cons, however, has a parallel in land travel. There is no free ride.

But in a county where despite heavy subsidies rapid transit lost 6.9% of riders in fiscal 2015-2016, the most recent year on record, while roadways grew more congested, it may be time for Miami-Dade transit to go with the flow.

In Argentina, a bright outlook for a major trading partner Argentina’s President Mauricio Macri continues to receive accolades from global investors, the private sector and a civil society that highly values good governance, an efficient and responsible state, economic growth and social Jerry Haar development.

It should not be surprising then that his new pick for ambassador to the US, Fernando Oris de Roa, has similar experience to the president as a corporate executive and entrepreneur who shares those very same priorities.

The appointment of Mr. Oris de Roa is yet another sign to the world that Argentina is open for business and free enterprise is the rule of the day – not the toxic elixir of left-wing populism of the past.

To all who follow Argentina, the message is clear: the country is open for business, dedicated to increasing its competitiveness and committed to combating corruption (which was the hallmark of the 12 years of the Kirchner-Fernández kleptocratic presidencies).

Since coming into office the Macri administration, in addition to negotiating settlement of the country’s foreign debt, has embarked upon a reform program that aims to increase employment and productivity, reform tax policy, eliminate export restrictions on agriculture, ease importing and boost innovation.

While multinational companies and large domestic firms like Arcor, Techint and Molinos Rio de la Plata are enthused with President Macri’s pro-market agenda,

The Writer

Jerry Haar is a business professor at Florida International University and Global Fellow of the Woodrow Wilson International Center for Scholars in Washington, DC. SMEs (small and medium-sized enterprises) are also benefitting from government policies.

Last year President Macri announced new measures to support the country’s SMEs, including raising the obligatory percentage of loans that banks must make to the sector from 14% to 16% of net credit.

At the same time, Macri also announced a number of other tax and finance measures to support SMEs, including the creation of a fund (Mi Primer Crédito) by Argentina’s Bank for Investment and Foreign Trade (Bice) to finance SMEs that have never received bank financing before.

While Argentina has huge competitive assets – human capital, excellent universities and research centers, high internet penetration, a strong agribusiness sector, and excellent mobile communication infrastructure – there are a great many liabilities, as well.

Mainly, the country has one of the more difficult business environments in the world, ranked at 117 (out of 190 economies) in the World Bank’s 2018 Doing Business report. Starting a business, paying taxes, registering property, dealing with construction permits, and contending with labor rules are very costly and difficult.

As our Hemisphere neighbor, USArgentine commercial relations are of

vital importance to both countries, since the US is Argentina’s third-largest trading partner. US goods and services trade with Argentina exceeds $25 billion, making Argentina the US’s 28th largest goods export market. It is important to note that the US runs surpluses in both goods and services trade with Argentina.

The nation is also Florida’s fourth-largest export destination, with an estimated $3.5 billion worth of exports in 2015.

In fact, Florida, particularly South Florida, has a stake in the success of the Macri Administration. More than 90% of Argentine visa applications are to visit Florida, specifically Miami and Orlando, according to the US Embassy in Argentina.

And each of the 1 million Argentinean visitors to the US each year spends an average $6,000 during a visit – a $6 billion injection into the Florida economy. South Florida’s attraction of Argentine visitors and those seeking residency here has been in ascendance for over a decade.

Argentinean businesspeople and professionals have done exceptionally well here, especially in real estate development, such as the Faena District, a six-block project in Miami Beach that features luxury hotels, bars, condominiums, a cultural center and a retail complex; the Aston Martin Residences; and the Oceana-branded condos in Key Biscayne and Bal Harbour.

How will Argentina fare economically in 2018? Data suggest that Argentina’s economic recovery is accelerating, becoming more broad based, with agriculture, construction, manufacturing and retail all picking up. Real GDP will expand from around 2.7% this year to 3.3% in 2018. Exports will increase, the business climate will

improve, and inflation (far too high) will decrease. Domestic and foreign firms are expected to invest $14 billion by year end.

Although riding high, with an approval rating over 50%, President Macri has dire challenges before him. His Cambiemos coalition failed to win a majority of votes nationwide and the labor unions will fight him tooth and nail on labor reform. As Benjamin Gedan, Public Policy Fellow at the Woodrow Wilson Center, notes, the Argentine public is not yet prepared to get behind the president’s pro-market vision.

In his words: “Argentina is a tough place to govern.”

Tough though it may be, those who know Mauricio Macri are convinced he is up to the challenge and will achieve his goals for the nation.

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, DECEMBER 7, 2017

Water taxis to boat show may face manatee safety stricture Miami-Dade’s Department of Regulatory and Economic Resources is recommending a variance and permit for an 830slip temporary dock for the next five Miami International Boat Shows on Virginia Key with an unusual manatee protection stricture attached that could trigger an instant change in plans.

The annual show moved to Virginia Key from Miami Beach temporarily for two years while the Miami Beach Convention Center was in a renovation and expansion mode. But that work is continuing and the word “temporary” has vanished from discussion of the move itself, just the dock.

The show is one of the two major events that each year congest traffic for days to and from Key Biscayne, leading to push-back from the Village of Key Biscayne.

The other is the Miami Open tennis tournament, which has a deal with the county to move out of Key Biscayne’s Crandon Park after the March 19-April 1, 2018, tournament and be based at Hard Rock Stadium in Miami Gardens to the north.

One innovation that reduced potential boat show roadway traffic the past two years was a temporary water taxi service via a cobbled-together fleet of water vehicles to the boat show site.

The permit recommendation

Commissioners are looking at a permit to allow 830-slip show docks.

to county commissioners says that county staff have determined that three of the four water taxi sites for the coming shows are compatible with marine facilities criteria.

But, says the memo from the department’s director and Deputy Mayor Jack Osterholt, “the applicant is also proposing to use the FEC slip located north of the AmericanAirlines Arena, a

use requested and authorized for the last two boat show events.”

Yet that area is recommended for large freight vessels and “is not recommended for transitory use such as water taxis service because the higher frequency” of water taxis could overlap “manatee travel patterns at this location.”

But the boat show seeks to use vital parking for AmericanAir-

CITY OF MIAMI, FLORIDA NOTICE OF PUBLIC HEARING

The Miami City Commission will hold a Public Hearing on Thursday, December 14, 2017 to consider the acceptance of a grant in the amount of an estimated value of $120,000.00 in the form of Outdoor Fitness Equipment from The Trust for Public Land, a California non-profit for Jose Marti Park, and to consider the City Manager’s recommendation in finding that competitive negotiation methods are not practicable or advantageous regarding these issues. Inquires regarding this notice may be addressed to LaCleveia Morley, Department of Parks and Recreation at (305) 416- 1332.

This action is being considered pursuant to Section 18-86(A)(3)(c) services related to educational services and activities provided by non-profit organizations within city parks of the Code of the City of Miami, Florida, as amended. The recommendation and finding to be considered in this matter are set forth in the proposed resolution and in this Code Section, which are deemed to be incorporated by reference herein and are available as public records from the City of Miami. The Public Hearing will be held in conjunction with the regularly scheduled City Commission meeting of December 14, 2017 at 9:00 a.m. 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

#29092

lines Arena, so the department “considered that the boat show lasts only five days each year and that the area of Biscayne Bay adjacent to the FEC slip is designated as ‘Slow Speed All Year,’” Mr. Osterholt wrote to county commissioners in dealing with the issue of manatee protection.

Staff then decided that for five days it could live with a water taxi stop at the FEC slip so long as each taxi carry aboard “a manatee observer” and that “should an impact to the manatees occur, water taxi service to and from the FEC slip shall cease immediately and will not be authorized for subsequent events.”

That provision, as well as all other terms, was subject to a Miami-Dade County Commission vote this week.

The City of Miami owns the bulk of the barrier island where the show is held and has several lease agreements with for-profit and non-profit entities. A revocable license that city commissioners approved in January 2015 granted the National Marine Manufacturers Association the right to use the land and water surrounding defunct Miami Marine Stadium and other adjacent cityowned land to stage the show.

The license authorized the creation of access agreements along Virginia Key, subject to

city commission approval, according to a staff memo from City Manager Daniel Alfonso.

The association was to pay the city 50% of profits from the boat show, Mr. Alfonso wrote.

Mr. Alonso signed the county permit application to give written consent of the property owner.

The permit says the 830 slips being approved for temporary use would hold vessels ranging from 6 feet to 100 feet long.

The cost of the temporary floating docks and ramps is listed in the permit application as $750,000.

The work is to be done by Dock and Marine Construction Inc., 752 NE 79th St. in Miami.

While the past permit period was two years, Mr. Osterholt wrote, that permit will expire before the coming show and another is needed. “Due to the recurring nature of the proposed project, the applicant has requested that the permit be authorized for a five-year period,” he wrote.

The permit gives the boat show a 90-day window in which to have the dock constructed and then removed from the area, with show itself lasting five days. The next show is to be held Presidents’ Day Weekend, Feb. 15-19, 2018.

The memo notes that materials made of disposable plastic or polystyrene are prohibited in the area.

Generic drug firm seeks bigger county incentive A generic pharmaceutical company specializing in manufacturing oral solid dosage and trans-dermal patches that is promising to create 120 new jobs under the state’s Qualified Target Industry Tax Refund program is seeking a boost in the incentives that Miami-Dade County has already agreed to provide.

Miami-Dade commissioners were being asked to vote this week to increase the incentives that commissioners approved in April from $360,000 to $600,000. The county’s share of that is $120,000, with $480,000 in matching money from the state.

All of the county’s share would come from general revenues.

Labeled Confidential Project Refill, the company, which already operates in the county, wants to build a new 160,000-square-foot manufacturing facility with a projected capital investment of $7.2 million.

The application says the company is also considering locating the manufacturing in Missouri, New Jersey, Pennsylvania or Mumbai, India.

According to the application submitted by the Beacon Council, Miami-Dade’s economic development agency, if it’s built here the

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.

Method Laboratories Inc. Miami. GAF. Amelia Earhart Park, Homestead Surplus Property.

Picrow Inc. Los Angeles. The Romanoffs. Port of Miami.

Imagina Content LLC. Miami. Master Chef. Swale Parking Beach Bum Film Holdings LLC. Culver City. The Beach

project will pay the new workers an average salary of $58,000 and generate $44,689,613 in direct and indirect wages over the six-year period it is eligible for the award.

Deputy Mayor Jack Osterholt wrote a memo to commissioners saying the company is seeking the added incentives since it qualifies for a state high-performance bonus of $2,000 per new job because the project is a life sciences manufacturing entity. That high impact bonus, he wrote, was omitted from incentives that the county awarded to the firm in April.

The state’s Qualified Target Industry Tax Refund program permits tax refunds to companies that create high-wage jobs in targeted high value-added industries and may provide the company with a tax refund of up to $3,000 per new job created, with the state providing 80% of the refund. The program requires the creation of at least 10 new full-time jobs at salaries at least equal to 115% of the state annual average wage.

If the company does expand in Miami-Dade, a memo from Mr. Osterholt says, the intended location is within the district of commission Chairman Esteban Bovo Jr.

in

M iami

Bum. Camp Owaissa Bauer, Crandon Park Marina.

Forest Productions Inc. Burbank. Warriors of Liberty City.

Miami Beach citywide.

N House Productions. Miami. Carters. Countywide.

N House Productions. Miami. Next Directory. Countywide, Miami Beach citywide.

Onia. New York City. Onia Summer 18 Photoshoot.

Crandon Park Beach, Crandon Park Marina, Crandon Park Tennis Center.

Select Services A Production Company Inc. Miami. Elle.

Countywide, Miami Beach citywide.

Select Services A Production Company Inc. Miami. Next Directory. Countywide, Miami Beach citywide.

Capri SRL. Naples. Alcott SS18. Miami Beach citywide, Miami Beach Marina.

MIAMI TODAY

WEEK OF THURSDAY, DECEMBER 7, 2017

13

Financial Trends Road to tax reform strategy paved with tried-and-true adages

By Catherine Lackner

With much about tax reform remaining up in the air, wealth advisors are urging their clients to proceed cautiously and keep some tried-and-true adages in mind.

“We still have a long road ahead to arrive at tax reform,” said Jamie Byington, tax partner in the South Florida office of Cherry Bekaert, an accounting, Jamie Byington advisory and tax firm, via email.

Although the House and the Senate have each passed a version, they contain significant differences. “The two versions will still require conference agreement to create final reform,” she said. “At this point, it is difficult to say what reform will look like in its final version.

“I believe there is a reasonable chance for tax rate reduction (as opposed to total reform) by yearend, particularly for corporate taxpayers. It is also likely that various write-offs, typically claimed by individuals, will be severely limited. There appears to be some momentum for reform and/or tax rate cuts, so I suspect some version of legislation will be signed by the president this year.

“Although significant planning is difficult without knowing the actual provisions to be passed, it is generally safe to say that the adage ‘defer income and accelerate deductions’ can be applied,” she said. “If tax rates drop, as expected, deductions will be more valuable in 2017, especially if some are eliminated by the new tax laws. Likewise, income would be taxed at lower rates in 2018, leaving more cash for my clients.”

Ms. Byington said she urges clients to consider several factors, including selection of tax entity type, methods of accounting, deductions, writing off fixed asset additions, charitable contributions, compensation and benefits (new limits on deductions will increase the cost of many fringe benefits), benefit plans and their design, international business structuring, estate and gift tax

planning, and consideration of how states will conform to the federal changes.

“The tax reform legislation is still a moving target,” said Mason Williams, managing director and chief investment officer at Coral Mason Williams Gables Trust, via email.

“Odds are the legislation will get passed before end of 2017, but the reconciliation process will ultimately determine the actual law. The House and Senate agree on a lot of items, so the final version probably won’t contain too many surprises from what we have heard thus far.

“The Republican agenda is riding on the success of this tax package and markets are positioned heavily for a marketfriendly outcome. Tax treatment of capital gains and dividends will largely remain the same,” he said.

“Being tax-efficient by offsetting capital gains with capital losses still will hold true next year and beyond. There could be some potential changes to investment strategy regarding municipal bonds for non-Florida residents.

There could be a surge in demand for our clients in states like New York, California and New Jersey if the deductibility of state tax goes away.

“However, the consensus believes tax rates are not going to be low enough to affect that market and municipal bonds have additional benefits beyond tax deductibility. It is wise to not perform any major overhaul to a portfolio until there is more clarity on the outcome. If we get legislation this year, we are also advising to defer any income, if possible, into 2018, especially for individuals in the highest tax bracket.

“Most of my clients are concentrated in the real estate and construction industry,” he said.

“There are significant opportunities in the proposed provisions for my clients in developing strategies to operate in a tax-efficient way under the new tax regime.”

Mr. Williams said the general philosophy that guides Coral Gables Trust is “not to leave any tax dollars on the table. My clients know I would never cross the line, but I will walk up to it in order to resolve issues in their favor. I will always be their best and strongest advocate.”

“Tax reform is hot and heavy in the financial press at the moment but taxes is one of several factors when considering a complete investment and financial plan. Our approach is multi-dimensional, designed to make sure our client resources are deployed in the appropriate manner in order to help them reach their goals and objectives,” he said.

“I have been practicing for more 35 years and went through the significant tax overhaul in 1986,” Mr. Williams added. “It took training, time and testing to finally come to grips with the impact of that change. I expect nothing less for this overhaul.”

“At this point and with multiple proposals on the table, it is difficult to know how exactly reform will shake out. However, there does Jay Schechter seem to strong push in Congress to have a proposal passed by the end of the year,” said Jay Schechter of Singer Xenos Schechter Sosler Wealth Management, via email.

“Changes to the tax laws will create multiple financial opportunities for our clients. While tax reform will not completely change our investment strategy, it will certainly enhance it. We believe a lower corporate tax rate will have a positive impact on the stock market and we are already advising clients where appropriate to hold more equities.

“However, the stock market’s current strong performance is due much more to strong corporate profits around the globe than to the anticipation of tax reform.

Certainly, lower taxes will help both individuals and business

increase their wealth,” he said.

“The proposal to immediately raise the threshold for the estate tax, and eliminate it altogether over the next four to five years, will impact retirement planning moving forward as very few individuals and families would then be subject to this tax. Additionally, if passed, the proposal to limit the home mortgage deduction would lower the amount of mortgage we would recommend clients carry.

“Regardless of tax reform, the Fed’s continued desire to increase interest rates causes us to continue to recommend alternative investments in fixed income and greater exposure to emerging market stocks,” Mr. Schechter said.

“Our overall goal is to help our clients accumulate wealth for retirement. When it comes to planning for retirement and building wealth, our philosophy is to embrace a broad and long-term view. Even if tax reform were not passed, the market fundamentals remain strong.

“While there has been discussion about the impact that tax reform will have on the markets, strong earnings across the globe have been the real drivers of the market. Most of this has been driven by economic recovery internationally following the great recession, and those international earnings will not be impacted by US tax reform.”

“Monitor the situation very closely until a reconciliation tax bill has been passed, which should be in the next week or so,” said Kashyap Kashyap Bakhai Bakhai, principal of the MBAF accounting firm, via email last week.

“Then, work towards either accelerating the deductions that will be disallowed in the new tax bill to the current year or shifting income (if advisable) to the following year where there could be lower tax.

“Restructuring of business will happen in 2018, once the actual legislation is passed,” he said.

“Also, there may be opportunities in the estate planning area under the new tax bill.”

Tax reform legislation may freeze out county bond refinancing

By Gabi Maspons

Though the interest rate environment is suitable for bond refinancing, Miami-Dade County anticipates it may not be able to refinance bonds in the coming year due to proposed tax reform legislation.

“We are continuously refinancing bonds,” said Deputy Mayor Ed Marquez, the county’s finance director.

“But I’m assuming that in the next year we will refinance fewer bonds if there is a passage of tax reform legislation,” Mr. Marquez said. “It may limit our ability to refund certain types of bonds.”

The county can refinance some bonds to save money by taking advantage of a new interest rate. The county buys back the original bond issue and investors receive a new set of bonds issued at the

new interest rate.

When asked if the county is to refinance bonds quickly before year’s end to anticipate any potential tax reform, Mr. Marquez said there might not be enough processing time.

“You can’t refund bonds for a period of time – usually ten years – and you have to wait for the bond to be callable,” Mr. Marquez said.

Though there will be callable bonds in the next few years, Mr. Marquez said two key factors determine whether the county will refinance: the interest rate environment and the potential tax-reform legislation.

“I assume the interest rate environment will be similar” next year, Mr. Marquez said, “but legislation will probably modify what we’re able to do.”

14

MIAMI TODAY

WEEK OF THURSDAY, DECEMBER 7, 2017

FINANCIAL TRENDS

Up to 60% reinsurance rate surge to hit public’s rates hard

By Catherine Lackner

After a lull, during which rates decreased, the cost of reinsurance – a product that insurers buy to limit the total loss they would experience in case of disaster – is dramatically on the rise, observers say.

Because of devastation Hurricane Maria and other disasters caused, “The industry has been turned upside down,” said Doug Jones, managing partner of JAG Insurance Group.

“Even after Hurricanes Harvey and Irma, we didn’t see the market flinch, but when Maria hit Puerto Rico, the wheels fell off. This is huge news.

“We are now expecting reinsurance increases up to 60%!

This won’t be a dollar-for-dollar pass-through to retail insurance rates, but we are expecting immediate increases of between 10% to 25%, based on whether the property had any claims.”

Insurance companies buy reinsurance in bulk, and when they can buy it more cheaply, they can pass the savings along to customers and offer more competitive pricing, he explained last summer.

“We have been preparing our clients for years to expect this change at some time and to budget accordingly, but it is already very clear that few heeded our warning,” Mr. Jones said this week.

Natural catastrophes could make 2017 the costliest on record for the insurance industry, said

‘Even after Hurricanes Harvey and Irma, we didn’t see the market flinch, but when Maria hit Puerto Rico, the wheels fell off. This is huge news.’

Doug Jones an Oct. 4 article by Matthew Lerner in Business Insurance, which provides print and online coverage of specific industries such as health care, construction, transportation and energy.

“Insured catastrophe losses could exceed $100 billion, which,

combined with other factors, could help turn pricing positive after prolonged rate softness,” the article said, citing a report

by Morgan Stanley.

“We expect double-digit rate increases in property reinsurance, with more in the ‘retro’ market,”

the Morgan Stanley report said.

“The Morgan note points out that ‘in a span of 26 days, Hurricanes Harvey, Irma, Maria and two powerful earthquakes devastated Texas, Florida, the Caribbean and Mexico,’ with industry estimates of insured losses at $10 billion to $25 billion for Harvey, $30 billion to $55 billion for Irma, $15 billion to $85 billion for Maria, and ‘multiple billions’ for the Mexico earthquakes, with total industry losses ranging from $70 billion to $150 billion,” the article said.

“Adding another roughly $20 billion for catastrophes in the first half of the year could push 2017 past 2005 and 2011 as the costliest year ever for catastrophes,” the Morgan Stanley report said.

$600 million Brightline rail bonds get noninvestment grade The startup luxury Brightline rail service that is now expected to link Miami with West Palm Beach by the end of March 2018 has received a non-investment grade rating on about $600 million in revenue bonds that are to be issued by the Florida Development Finance Corp. on behalf of the line’s owners.

Fitch Ratings, which was hired by owner All Aboard FloridaOperations to rate the bonds, last week initially rated the bonds BB-, contingent on the final pricing of the bonds.

Fitch said the bonds’ relatively low grade “reflects Brightline’s standing as a new-market, US luxury rail project that exhibits uncertain demand and revenue generation potential.” The service also pointed to the uncertain nature of the market’s “willingness to pay” for the luxury rail as opposed to use of passenger cars.

Brightline plans to issue more bonds to fund a later portion of the system that is to link West Palm Beach and Orlando. Fitch provides no timeline for the start of that service.

The pro forma presented by the company to Fitch shows that under the company’s assumptions Brightline can break even if stabilized ridership falls 44% lower than projected. The rail line projected a three-year rampup period before riders stabilize at 2.9 million per year in 2020,

Photo by Marlene Quaroni

Brightline in a test run nears 125th Street in North Miami. Service here is due in the first quarter of 2018.

starting at 1.1 million in 2018 and increasing to about 2.3 million in 2019.

Fitch’s own analysis says that it will take four years, not three, to stabilize ridership, starting with 587,000 passengers in 2018, 1.1 million in 2019 and 2.3 million in 2020. Fitch then reduced Brightline’s passenger figures by 20%, starting with 907,000 in 2018.

Brightline told Fitch it has planned for a $24 million ramp-up reserve, a six-month debt service reserve fund, $30 million in the funded interest account and a $50

million working capital revolver.

Fitch based all of its studies on a fare structure for the rail line that is to change with demand, time of day and day of the week.

It provided no hint of what those fares might be, and in the past Brightline has said only that fares would be heavily discounted at the outset of service. Fitch does say that Brightline projects gross fare revenue for 2020 at a total of $107.3 million.

The backbone of the rail service is the old Henry Flagler route for the Florida East Coast Railway,

with major real estate developments in downtown Miami just west of the courthouse on Flagler Street, in Fort Lauderdale and in West Palm Beach. Real estate costs and revenues are not part of the Brightline borrowing scenario from Fitch.

The report to bond investors does say that at full operation, Brightline continues to plan for 16 hourly round-trips daily on the line from early morning to late evening between Miami and West Palm Beach.

Remaining work on construc-

tion on the phase between Miami and West Palm Beach is estimated at $74 million, Fitch reports, to be funded by the operators’ equity.

The bonds being issued are for 30 years and will pay only interest until 2028, when Brightline must begin paying principal as well as interest, paying about $48 million per year from 2028 through 2047.

The report shows that Brightline expects ancillary revenues to provide 24% of total revenues, The largest share of those ancillary revenues, more than threefifths, are expected to come from food and parking at rail stations.

The estimate is that the line will get $3.58 per passenger per trip from food and beverages alone, with station parking at $1 an hour for rail passengers and $3 per hour for other users, which is considered competitive with surrounding garages.

“The robust level of ancillary revenues,” the Fitch analysts wrote, “provides additional uncertainty in regards to obtainable revenue levels.”

The report does not mention the planned use of the new rail hub in Miami by Tri-Rail, which links the same three communities as the Brightline service but serves primarily commuters. The Fitch report does say that commuters are expected to be only 10% of Brightline’s passengers, with business travelers and tourists the main users.

Florida in majority in lowering workers’ compensation rates

By Catherine Lackner

The Florida insurance commissioner’s office announced last month that workers’ compensation insurance rates for next year are set to drop more than 9%. But that shouldn’t be interpreted as a sign that insurers will pull out of the state, observers say.

“Rate decreases are nothing out of the ordinary,” said Jeff Eddinger, senior division executive for the National Council on Compensation Insurance, which gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations.

“It’s a result of better experiences being reported; the rates are not being held down,” he said. “In the 36 states for which

we are responsible, 34 have requested experienced rate decreases.”

Medical payments per workers’ compensation claim in Florida remained stable in 2015 following moderate growth from 2010 through 2014, according to a recent study by the Workers Compensation Research Institute, an independent, notfor-profit research organization.

The institute studied medical payments, prices and utilization in 18 states, including Florida, looking at claim experience through 2016 on injuries that occurred mainly from 2010 to 2015, then compared Florida’s statistics with those of the other states.

“Florida implemented several medical-fee schedule changes after 2014,” said Ramona Tanabe, the institute’s

executive vice president and counsel.

“This study provides a look at how hospital payments per claim in Florida have changed using data with experience up to 15 months after the 2015 hospital fee schedule changes.

“In addition, the Castellanos and Westphal decisions by the Florida Supreme Court in 2016 are expected to affect costs and litigation expenses in the state’s workers’ compensation system,” Ms. Tanabe added.

In those decisions, Florida’s highest court found the mandatory worker attorney fee schedule and the 104-week limitation on temporary total disability benefits to be unconstitutional. Among the study’s other findings: Hospital outpatient payments per

service decreased 3% in 2015 after rapid growth in earlier years, possibly reflecting the impact of a 2015 change in the hospital outpatient fee schedule.  Utilization of some nonhospital services decreased moderately in 2015, while prices paid for professional services remained stable.  Hospital inpatient payments per episode grew 13% in 2015, following the 2015 inpatient fee schedule update. Payments per claim for using ambulatory surgery center facilities increased 6% per year from 2010 to 2015.

Compared with the other 17 study states, medical payments per claim in Florida were typical, mainly a result of lower professional prices offsetting higher hospital payments per claim in Florida.

16

FINANCIAL TRENDS

MIAMI TODAY

WEEK OF THURSDAY, DECEMBER 7, 2017

US legislation would destroy ‘crucial’ county financing tool

By G abi M aspons

With a proposal in the US House of Representatives that puts state and local governments’ ability to issue tax-exempt private-activity bonds on the chopping block, Miami-Dade’s Industrial Development Authority is pressuring representatives to keep municipal bonds tax-free.

Tax-exempt bonds are issued to give financing benefits for qualifying projects with a public benefit. The bonds have been known to attract private investments for projects by reducing the cost through federal tax exemptions.

“Tax-exempt Private Activity Bonds

are a crucial and instrumental financing tool that spurs local economic development, private sector investment and job creation,” said James Wagner, executive director of the IDA. Mr. Wagner said the IDA has urged the House of Representative to protect the bonds “and strike Section of H.R. 1” written to eliminate them.

By eliminating the tax exemption, Mr. Wagner said, communities won’t be able to finance “critical and important public facilities and infrastructures,” and governments and project sponsors “will be forced to borrow at higher interest rates.”

Manufacturing, hospitals, schools,

highways, bridges, railways, water and sewage facilities, energy facilities and low-income housing are just a few examples of critical infrastructure that will be at risk, Mr. Wagner said.

The proposal in the House estimates that almost $40 billion of additional tax revenue would be collected over the next decade if the municipal tax-exemptions were removed.

“We understand the importance of streamlining the tax code and growing revenue,” Mr. Wagner said. “However, any legislation that eliminates [these bonds] would be devastating to economic development at the local and state levels.”

While the US Senate proposal preserves private-activity bonds, the House proposal eliminates private-activity bonds entirely.

If the House bill passed, state and local governments wouldn’t be able to issue private-activity bonds to finance qualified projects.

The IDA said it will continue pressuring representatives to reject any provisions that interfere with privateactivity bonds.

“They are a staple of economic development efforts nationally,” Mr. Wagner said. “Cities and states would be dramatically and disastrously impacted by their loss.”

SeaVee Boats to use endangered bond source to build plant It’s the second time around for $9.7 million in Miami-Dade industrial development revenue bonds for SeaVee Boats, which plans to use the money to construction of a new custom boat manufacturing plant in January.

County commissioners originally approved issuance of the bonds on Dec. 20, 2016, but the company had not until now closed its financing agreement with the Industrial Development Authority.

The 40-year-old manufacturing company had to resolve issued relating to environmental permitting, title to the property and the integration of the project into the Town of Medley, Roberto Pelaez, chairman of the Miami-Dade County Industrial Development Authority, told county commissioners in a memo this week.

Commissioners now are being ask to reapprove the same bond issue that they approved last

A SeaVee 320 is one of the luxury products of the 40-year-old expanding custom boats manufacturer.

year, because approval is good James Wagner, executive The plant is to rise on a 9.3for only one year and the previ- acre property at 11100 NW director of the Industrial Deous approval expires Dec. 20. South River Drive in Medley. velopment Authority, said “they

did their due diligence and uncovered a problem.”

The company, owned by President Ariel Pared, is planning on growing from 160 persons to 200. It currently operates out of a 60,558-square-foot building at 6900 NW 77th Court that was also financed with $3.06 million of Industrial Development Revenue Bonds in 2004.

The Industrial Development Authority held a hearing on the bonds on Nov. 21 and got no public comment on the bond issue.

The project includes $16.74 million for acquisition of the land and construction of the manufacturing building. The cost of the land is $5.2 million, the 149,000-square-foot building is $10.64 million and machinery is $900,000. In addition to the bonded debt, the company is including $7.04 million in equity.

The bonds are to be purchased and held by Wells Fargo Bank.

Strong borrowing ability to facilitate solid waste upgrades Capital spending of $209 million anticipated for MiamiDade’s solid waste operations will find strong borrowing underpinning to fund improvements, a bond rating service’s current report shows.

The capital improvements include $49 million for the solid waste truck fleet in this budget year, according to the report from Fitch Ratings. Much of the plan also covers landfill expansions, remediation and closures, all to be funded through a combination of future debt, leases and funds in the solid waste system.

The report says that the county’s landfill capacity is adequate through at least 2031. An experiment in using waste ash as an element in cement for roadways could extend that capacity well past that time.

Most of the debris still being collected after Hurricane Irma hit Sept. 10 is being disposed of at the Monarch Hill landfill in Pompano Beach in Broward County, so it won’t overload Miami-Dade’s landfill space. The federal government is expected to reimburse the county for most of the costs of removing and disposing of hurricane debris.

Fitch assessed the solid waste operation’s strength as it issued

Miami-Dade County’s waste-to-energy Resources Recovery Facility.

an A+ rating on $61.62 million in solid waste system revenue refunding bonds that the county issued in 2015. Fitch called the outlook for the future value of the bonds stable.

The county’s solid waste operation last year served 330,600 households in unincorporated areas of the county that pay for the waste collection through property tax bills, making up 53% of solid waste’s total revenues.

In a contentious session, county commissioners raised the fee by $25 this year to $464 a year, the first increase since October 2006.

The administration originally asked for a $1.58 per month increase, about $19 annually, but commissioners wanted enough funds so waste crews could take care of illegal dumping.

“We want to be a world-class community but we can’t have that with filthy areas, mainly in unincorporated areas,” said Commissioner Dennis Moss, who recommended the $6 added increase. Bruno Barreiro said in the commission discussion that illegal dumping is costing the county more money in the long run.

Beyond individual home as-

sessments, solid waste revenues include fees to municipalities to use the county facilities for disposal. Those fees comprise 24% of the system’s revenues. The county commission cut those fees 8.6% this year to encourage more use of the county’s facilities.

The county has agreements with 15 municipalities to provide solid waste services. Most of those contract expire between 2025 and 2035.

Another element of solid waste revenues is proceeds from wasteto-energy sales, which generate 3% of all revenues.

The other major component is 12% of revenues from a utility service fee charged to county water and sewer users. That fee, which had been 8%, was reduced to 6% in fiscal 2018, Fitch said.

In addition to three landfills (one just for ash disposal), 13 neighborhood trash and recycling centers, and contract disposal capacity with two alternative private providers at four facilities, the system also includes the county-owned waste-to-energy Resources Recovery Facility.

A University of Florida research project is now testing whether waste ash produced at the Resources Recovery Facility can be used to create cement and

generate revenues for the county.

Now, waste ash is a costly burden to the county, with 165,000 tons disposed of in the ash landfill each year. The county paid $5.19 million to build the ash landfill and spends about $330,600 a year to operate it. The county estimates the landfill will fill by 2032 and it will need an additional site for disposal.

The university is under contract with the county to test the waste-based cement once it’s produced, but the project was stalled until a disposal agreement could be reached if the cement isn’t usable. Commissioners recently voted to pay to dispose of the cement if it can’t be used commercially.

“We anticipate that the test will yield approximately 1,000 tons of cement containing 300 tons of… ash,” Deputy Mayor Alina Hudak said in a memo.

The solid waste system operates as a self-supporting enterprise fund of the county. Its net operating revenues in fiscal year 2016 were $47.2 million, though total waste tonnage processed declined 1.7%, primarily due to Hialeah’s non-renewal of its agreement with the county for waste disposal. Hialeah had provided about 4% of all waste flow.

MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, DECEMBER 7, 2017

23

53-story apartment-hotel-office in Omni OK’d

By John Charles Robbins

A major residential-hotel-office tower is planned for the heart of the Omni neighborhood fronting Biscayne Boulevard.

Owner-developer V-Downtown Inc. plans a 53-story building at 1775 Biscayne Blvd. that will offer 200 hotel rooms, 444 residences, about 45,600 square feet of commercial space and 64,800 square feet of office space, rising from a parking pedestal for 546 vehicles.

The city’s Urban Development Review Board recommended approval of the project at a special meeting last week.

The site is just north of the Hilton Miami Downtown and across the street from a Publix.

Margret Pace Park on Biscayne Bay is about a block away.

Part of the commercial floor space will be more than 14,000 square feet of ground floor retail, and the building will be topped off with a 7,000-square-foot solarium. The maximum height will be 633 feet.

An amenity deck for the residences will be separate from the amenity deck for hotel, office and retail uses. The lower amenity

deck allows for public use, giving residents and visitors access to views of Biscayne Boulevard and Biscayne Bay. Project architect Kobi Karp told the board the project is designed to create pedestrian movement all around the block.

The hotel rooms will be in the lower levels and the rental apartments rising above, he said.

Loading and unloading will be from a platted public alley on the property.

In a letter to the city, the developer’s attorney Vicky Leiva said the project is in keeping with the context of the neighborhood, and the proposed tower has been carefully designed to allow uninterrupted views to the bay.

“The frontage along Biscayne Boulevard complies with all setback requirements of Miami 21 [zoning code]. Drop-offs for the building are internal and located on the secondary frontage along NE Fourth Avenue and take advantage of existing curb cuts. Loading and delivery will take place completely internal to the site accessible from the alley, which runs east to west at the north end of the property and has been widened with land from the

private owner to allow for such use,” Ms. Leiva wrote.

The developer is requesting six waivers, including: nUp to a 30% reduction in required parking spaces due to the proximity to the transit corridor along Biscayne Boulevard, the Omni Metromover Station and Bus Depot. nAllowing parking to extend into the second layer beyond 50% of the length of the frontage. A glass treatment would be provided for that portion of the secondary frontage (western elevation) to be approved by the planning director. nAllowing a floor plate of 19,800 square feet for residential uses where 18,000 is permitted. nAllowing for lot coverage of 88% where 80% is permitted.

Board members generally liked the look of the proposed tower.

Fidel Perez said the building is well designed. He voiced concerns about reduced parking and said vehicle circulation in the alley “seems very tight.”

Mr. Perez asked if there is enough room in the alley for big trucks to maneuver. Mr. Karp said yes.

“On a positive note, you’ve done a great job on the [parking]

podium. That can be difficult to put together,” Mr. Perez said.

Review of the project led board member Neil Hall to voice concerns about too much growth and its impact on traffic.

He asked Ms. Leiva: Why should the city cut parking requirements 30%?

She said the zoning code allows such a reduction, in part to encourage public transit use and shrink the size of parking pedestals on high-rises.

“Every time we come here we’re waiving items. Just once I’d like to see an architect come here with a plan saying ‘I can live within the rules,’” Mr. Hall said.

Waivers are an administrative decision, but Mr. Hall suggested the review board look at proposed projects in a context that includes many factors, including its impact on traffic.

“If we cannot affect those things, it’s a waste of time,” he said.

Ms. Leiva disagreed, saying the board has plenty of influence.

“You do have tremendous power,” she told board members. She said she’s seen developers and architects listen to detailed reviews from the board and change their

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design, making projects better in the long run.

Newest board member Ignacio Permuy congratulated Mr. Karp on a “beautiful design.” He also said he likes the plan for a dockmaster’s office for a smooth loading and unloading operation.

Acting Chairman Anthony Tzamtzis said it is a very well designed building but “excessive.”

He added, “I like the architecture, but you’re stretching the options for this area… there’s a lot of stuff here.”

He cast the lone “no” vote on the tower’s recommended approval.

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Sheryl Wambsgans Maggie Braun BRIDGER LAW 129 W. Main Street, Suite B2 Bozeman, Montana 59715 Phone: (406) 404-6063 Email: Sheryl@bridgerlawmt.com Maggie@bridgerlawmt.com MONTANA EIGHTEENTH JUDICIAL DISTRICT COURT, GALLATIN COUNTY IN RE THE GUARDIANSHIP OF E.J.R., A Minor Child Cause No: DG-17-23B CATHY LYNN ALLEN and GREGORY JAMES ALLEN, Petitioners, Vs. KORINE NOELLE REA, Respondent.

NOTICE FOR PUBLICATION THE STATE OF MONTANA TO MARSHALL RYALS: YOU ARE HEREBY GIVEN NOTICE THAT A Petition for Guardianship has been filed in this action by Cathy and Gregory Allen, in the office of the Clerk of Court, Eighteenth Judicial District Court, Gallatin County.

Hearing has been set in the District Court Department 2, Law and Justice Center, Bozeman, Montana, on the 11th day of January, 2018 at 9:30 am, at which time and place all interested persons may appear and object. This notice is being given at least 14 days prior to the date of the hearing, pursuant to 72-1-301, MCA. DATED this 30 day of November, 2017.

JENNIFER BRANDON, Clerk of Court.

By: Cara L. Edgerley, Clerk of District Court

Sheryl Wambsgans Maggie Braun BRIDGER LAW 129 W. Main Street, Suite B2 Bozeman, Montana 59715 Phone: (406) 404-6063 Email: Sheryl@bridgerlawmt.com Maggie@bridgerlawmt.com MONTANA EIGHTEENTH JUDICIAL DISTRICT COURT, GALLATIN COUNTY IN RE THE GUARDIANSHIP OF A.J.R., A Minor Child.

Case No: DG-17-24B CATHY YLNN ALLEN and GREGORY JAMES ALLEN, Petitioners, Vs. KORINE NOELLE REA, Respondent.

NOTICE FOR PUBLICATON THE STATE OF MONTANA TO MARSHALL RYALS: YOU ARE HEREBY GIVEN NOTICE that a Petition for Guardianship has been filed in this action by Cathy and Gregory Allen, in the office of the Clerk of Court, Eighteenth Judicial District Court , Gallatin County.

Hearing has been set in the District Court Department 2, Law and Justice Center, Bozeman, Montana, on the 11th day of January, 2018 at 9:30am, at which time and place all interested persons may appear and object. This notice is being given at least 14 days prior to the date of the hearing, pursuant to 72-1-301, MCA. DATED this 30th day of November, 2017.

JENNIFER BRANDON, Clerk of Court By: Cara L. Edgerley, Clerk of District Court

NOTICE OF SALE Affordable Title & Lien Inc will sell at Public Sale at Auction to following vehicles to satisfy lien pursuant to Chapter 713.585 of Florida Statues on December 21, 2017 at 10 A.M. *AUCTION WILL OCCURE WHERE EACH VEHICLE IS LOCATED* 2012 BROWN NISSAN MAXIMA, VIN# 1N4AA5AP3CC865337 Located at: MIAMI HI-TECH BODY SHOP 7368 SW 42 STREET, MIAMI, FL 33155 LIEN AMOUNT $5,902.00.

Pub dates: 12/7, 12/14 and 12/21/17

Pub dates: 12/7, 12/14 and 12/21/2017

Notice of Sale

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NOTICE OF SALE Affordable Title & Lien Inc will sell at Public Sale at Auction to following vehicles to satisfy lien pursuant to Chapter 713.585 of Florida Statues on December 28, 2017 at 10 A.M. *AUCTION WILL OCCUR WHERE EACH VEHICLE IS LOCATED* 2012 SILVER MERCEDES C CLASS, VIN# WDDGF4HB6CR211736 Located at: MIAMI HI-TECH BODY SHOP 7368 SW 42 STREET, MIAMI, FL 33155 LIEN AMOUNT $11,441.21.

ATTN: Maliheh Fazel & Mohammad Fazel Notice by Publication There is a case pending against you in The Eleventh Circuit Court County of Miami-Dade.

Court Case #: 2017-001666-SP-24 Case #: 132017SC001666000024 Date filed: 10/13/2017 Plaintiff’s Address: Brett Cofman, 1200 West Avenue, Unit 1505, Miami Beach, FL 33139

a) Notice to the owner or lienor that he has a right to a hearing prior to the scheduled date of sale by filing with the Clerk of the Court. b) Owner has the right to recover possession of vehicle by posting bond in accordance with Florida Statutes Section 559-917. c) Proceeds from the sale of the vehicle after payment lien claimed by lienor will be deposited with the Clerk of the Court.

Any person(s) claiming any interest(s) in the above vehicles contact: Affordable Title & Lien Inc, (954) 684-6991 *ALL AUCTIONS ARE HELD WITH RESERVE* Some of the vehicles may have been released prior to auction.

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Public Notice NOTICE Effective 11/24/2017 I, Fred S. Mann M.D., will be going on an extended sabbatical and not available to my patients. You may obtain your records from the Eye Institute of South Florida located at 1313 SW 27th Avenue, Miami, Florida, 33145

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2006 GRAY ACURA TSX, VIN# JH4CL96886C002851 Located at: MIAMI HI-TECH BODY SHOP 7368 SW 42 STREET, MIAMI, FL 33155 LIEN AMOUNT $5,922.00 2010 BROWN CHEVROLET MALIBU, VIN# 1G1ZE5EB7AF101477 Located at: MIAMI HI-TECH BODY SHOP 7368 SW 42 STREET, MIAMI, FL 33155 LIEN AMOUNT $5,918.00 2010 BROWN CHEVROLET MALIBU, VIN# JN8AS5MT8CW255713 Located at: MIAMI HI-TECH BODY SHOP 7368 SW 42 STREET, MIAMI, FL 33155 LIEN AMOUNT $5,915.00 a) Notice to the owner or lienor that he has a right to a hearing prior to the scheduled date of sale by filing with the Clerk of the Court. b) Owner has the right to recover possession of vehicle by posting bond in accordance with Florida Statutes Section 559-917. c) Proceeds from the sale of the vehicle after payment lien claimed by lienor will be deposited with the Clerk of the Court.

Any person(s) claiming any interest(s) in the above vehicles contact: Affordable Title & Lien Inc, (954) 684-6991 *ALL AUCTIONS ARE HELD WITH RESERVE* Some of the vehicles may have been released prior to auction.

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WEEK OF THURSDAY, DECEMBER 7, 2017