Miami Today: Week of Thursday, December 15, 2016

WEEK OF THURSDAY, DECEMBER 15, 2016

A Singular Voice in an Evolving City

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TODAY’S NEWS

Flagler street revamp work kicked into high gear, pg. 8 COUNTY’S EARNINGS GROW: Miami-Dade County’s investment portfolio earned $17.198 million in the fiscal year ended Sept. 30, according to a memo from Mayor Carlos Gimenez. In the prior fiscal year the county earned $12.768 million from its investments – which are not insignificant.

As of Sept. 30 the market value of county investments was more than $3.35 billion; last year the value ended the year at more than $3.59 billion.

The memo says the county puts safety of principal and liquidity of funds above its third investment standard: maximizing investment income. In fiscal 2016 the portfolio returned 0.52% and in 2015 0.36%. In both years, the memo said, the county’s average rate of return exceeded the 180-day federal government treasury average.

City offices deal triggers call for police headquarters, pg. 7

The Achiever

Needs two county OKs

By Susan Danseyar

MARINAS FOR VIRGINIA KEY: A new request for proposals to redevelop and operate the city-owned marinas on Virginia Key may reach Miami commissioners for a decision next month. On Dec. 8 commissioners deferred the matter to Jan. 12 in order to get a recommendation from the Virginia Key Advisory Board. The board is to continue its review of the latest request for proposals at 5:30 p.m. Dec. 19 at City Hall, 3500 Pan American Drive. The board deferred a decision on the latest draft Nov. 29 in part to encourage public review and comments on the fate of the marinas on the barrier island. The first request for proposals in 2015 drew three bids, controversy and a protest. Commissioners rejected all bids and started over. Commissioner Ken Russell said Dec. 8 he’s pleased to see how the new bidding process is being handled: “I’m glad to see a very public process happening.”

MICROBREWERY RULES: Miami city commissioners granted final approval Dec. 8 to new regulations for microbreweries, to be permitted only in Cultural Specialty Districts. The legislation limits microbreweries to the first story of the principal building and a maximum of 20,000 square feet.

The consumption component would be on a principal frontage, manufacturing and distribution functions would be enclosed, and microbreweries would be subject to the regulations of the area’s zoning.

SUPPLEMENTING FUNDING FOR SENIORS: The Miami-Dade County Commission is urging Florida’s Legislature to move legislation authorizing counties to create independent special districts with the power to impose ad valorem taxes up to one-half mill, following approval by voter referenda that will be used to supplement current funding for senior services. The resolution also preliminarily identifies the issue as a critical county priority for the 2017 state legislative session.

Gandy Thomas

Photo by Cristina Sullivan

Haiti’s consul general seeks university, sister city links The profile is on Page 4

Majority vote to fire Miami city manager fails

By John Charles Robbins

For a few minutes last week, Miami commissioners thought they’d just fired City Manager Daniel Alfonso.

Not quite.

The move to remove the top administrator was launched Dec. 8 by Commissioner Frank Carollo, unhappy with allegations of mismanagement in the police department and other linger- Daniel Alfonso ing upsets.

Mr. Carollo moved to fire the manager, Francis Suarez seconded it. In an immediate vote, they were joined by Ken Russell in favor of the firing, while Chair Keon Hardemon and Commissioner Wifredo “Willy” Gort voted no.

With a 3-to-2 vote, Mr. Hardemon announced the motion had passed.

With city officials and members of the public stirring, Mr. Suarez began discussing the new commission procure for public comment, enacted

by Mr. Hardemon and criticized by a few vocal citizens.

At the same time, Mayor Tomás Regalado approached the podium and began to question

Agenda

Inland port would seek grant funds

the vote to oust Mr. Alfonso, trying to determine whether he would need to veto the commission’s action.

After several more minutes of discussion and review of the city charter, City Attorney Victoria Mendez announced that it takes a four-fifths vote to fire the manager.

Mr. Alfonso still had his job.

Mr. Hardemon apologized for saying the motion had passed. “Please let the record properly reflect that that motion failed,” he told the assembled.

It was a sliver of déjà vu, as the commission had considered firing Mr. Alfonso at an exhaustive meeting in April.

At that time it was Mr. Hardemon going after Mr.Alfonso, upset by his firing of a cultural center director in his district. After much discussion of the charter and the need for four votes to pass a motion to remove the manager, and after it seemed clear there weren’t enough votes to make that happen, Mr. Hardemon withdrew his motion.

Mr. Carollo has often criticized Mr. Alfonso and his staff for lack of communication with his office and over responses to requests for documents and information.

Mr. Carollo on Dec. 8 again complained of mangroves near Miami Marine Stadium cut down

under Mr.Alfonso’s watch and the city manager’s office failing to deliver on a promise of a flex park with soccer fields next to the stadium.

Mr. Russell complained of Mr. Alfonso’s “strong hand of policy… and I don’t need a sixth commissioner up here.”

Mr. Suarez, as he did in April, said it was the system that needs change, pushing for a strong mayor form of government.

“I’ve not been shy to criticize the city manager and this system of government – it’s pretty much a mess,” said Mr. Suarez.

The commissioner did acknowledge how hard the job of city manager can be.

“It’s not an easy job. It takes a unique personality to succeed,” Mr. Suarez said. “What I don’t want is for us to become a circus,” he said before the vote.

He reminded commissioners that when the manager’s job was threatened in April, Mayor Regalado said if Mr. Alfonso were fired he would to put him back in office.

Mr. Gort defended Mr. Alfonso, saying he’s done a good job, helping keep the city on solid financial ground after years of crisis.

“I think he’s been very careful in trying to please every one of us,” Mr. Gort said. “It’s not that easy.”

Legislation in Miami-Dade’s Trade and Tourism Committee today (12/15) would target an inland site for seaport cargo operations to free space on the port’s 250 acres and direct officials to study how to pay for it all.

The inland port would be geographically central to private warehouses, allowing PortMiami to store containers and trucks until a shipping customer needs them.

Once cargo containers are emptied at warehouses, many now are returned to the port, taking space at terminal yards until they’re transported to a shipping line for filling. An inland port would reduce road congestion the trucks cause traveling to PortMiami, the resolution says.

In addition, it states, an inland port would spur economic growth and employment countywide as such facilities have done in Jacksonville, Savannah, GA, and Charleston, SC. Should the resolution pass today and Jan. 24 in the full commission, the administration would have 120 days to report funds available to design, develop and construct the inland port, including federal and state grants, operating revenues and port bond proceeds.

The administration also would apply for Fast Act Funds under the Fixing America’s Surface Transportation Act, signed by President Obama on Dec. 4, 2015, providing long-term funds for surface transportation and authorizing the spending of billions over fiscal years 2016-2020 for rail transportation and national multimodal freight facilities.

Under Fast Act rules, MiamiDade gets a limited amount of Fast Act funds, which must be prioritized for qualifying projects countywide.

The administration would also seek grants through the Florida Department of Transportation, which may award about $4 million for the inland port.

PortMiami officials haven’t publically stated a preference for an inland port site.

MIAMI BEACH DOES A FULL REVERSE ON TRANSIT STANCE ...

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VIEWPOINT: CITY NEEDS TOP TEAM FOR RIVERFRONT DEAL ...

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COMMISSION QUESTIONS COUNTY PROCUREMENT SPEED ...

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FREE SMALL BUSINESS ACADEMY LINKED TO RESOURCES ...

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GABLES GARAGES BATTLE HEADS TO CITY STAFF REVIEW ...

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WEALTH MANAGEMENT CLIENTS SHOW MORE CERTAINTY ...

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EL AL IN CONTINUOUS TALKS FOR MIAMI-ISRAEL FLIGHTS ...

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$32 MILLION IN HOMELESS GRANTS FACING COUNTY VOTE ...

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WEEK OF THURSDAY, DECEMBER 15, 2016

MIAMI TODAY

TODAY’S NEWS

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El Al in continuous talks for Miami-Israel service

By Camila Cepero

Though it’s unclear when a deal will be made, Israel’s El Al Airlines is certainly eyeing Miami International Airport as a possible new service point after seeing a bump in passenger numbers last year and a recent investment in a top-of-the-line jet airliner.

Due to a growth in the IsraelMiami market, conversations with El Al Airlines have been continuous, Miami Today reported last month.

The latest available data show that during year ending September 2015, just over 95,000 passengers traveled between the two points via connections – a 4.5% increase from the same period a year before.

“The Miami-Dade Aviation Department continues its ongoing discussions with El Al,” said Miami-Dade Aviation Department spokeswoman Suzy Trutie.

El Al Israel Airline Ltd., trading as El Al, is the flag carrier of Israel.

Its hub is Ben Gurion International Airport, Israel’s main international airport and the busiest airport in the country, 12 miles southeast of Tel Aviv.

“As it is an open business case, we respect all airlines’ wishes to maintain confidentiality until such time that an airline is ready

to announce the new route,” Ms. Trutie said.

El Al could not be reached.

The airline has ordered the Boeing 787 and is examining its options for possible new service points.

According to Miami International Airport, many foreign carriers are in the process of fleet revitalization and expansion, as both Boeing and Airbus are making available new, efficient, long-range aircraft such as the Boeing 777 and 787 and Airbus A330 and A350.

The Boeing 777 is a family of the world’s largest twinjets and has a typical capacity of 314 to 451 passengers, with a range of 5,235 to 9,500 nautical miles.

The Airbus A330 and A350 models are positioned to compete with Boeing’s in terms of passenger capacity, fuselage, features and engines.

“It is a very typical process for air carriers to look ‘down the road’ for expansion opportunities once new aircraft come into the fleet to replace older planes, and to consider what new service points fit into the range of these new planes,” Ms. Trutie said last month.

“This of course is viable if market conditions warrant launching a new route.”

Wynwood OKs zoning but it doesn’t pass city

By Catherine Lackner

The Wynwood Business Improvement District reversed a previous decision Dec. 7 and agreed to support a zoning change for a 13,800-square-foot property on its northern border owned by Aron Rosenberg of New York-based R&B Realty.

Proposed for 2916-2994 N Miami Ave. is an eight-story, 200,000-square-foot office building with ground floor retail and 500 parking spaces. Part of the site is outside of Wynwood’s Neighborhood Revitalization District, but because it sits at the northern gateway to the trendy neighborhood the developer sought support of the district’s board.

The new plans call for the fifth through eighth floors to be “stepped back” to visually break up their height and provide a transition from Midtown, where 24-story buildings are allowed, to Wynwood, where taller structures are discouraged.

The developer also agreed to create a 10-foot setback.

“We talked to the neighbors and got letters of support before proffering this covenant,” said Nick Barshel, an attorney with Akerman LLP who appeared before the board.

“We had real concerns about the transition,” said David Snow, Miami acting director of urban design.

But the covenant has addressed some of those, he said. “We’ll continue to work with this applicant as the process moves forward.”

But, said board member David Polinsky, who chairs the district’s Planning & Zoning Committee,

“this is a gateway location, and we will be paying attention to it.”

Mr. Polinsky is a principal of 250 Wynwood.

“You have our support,” said board member Albert Garcia, who is chief operating officer of Mega Shoes.

R&B Realty wasn’t as fortunate at the next day’s Miami city commission meeting, however. Keon Hardemon, city commissioner who represents District 5, “had concerns about the scale,” said Steven Wernick, a land-use attorney and partner in Akerman LLP who regularly represents R & B Realty.

“He was uncomfortable with the proposal as it currently stood. We think we have a great application that will enhance the neighborhood.

We hope to come back in the next couple of months with backup materials” that the commission didn’t see before the Dec. 8 meeting, he said.

The change is really to unify the site, he said, which now has two different zoning standards, and to provide a developable parcel for the office building. There is a scarcity of pure office space in Wynwood, real estate professionals say.

“We want to create a transition on the north and west sides of the building and move the office toward the intersection.”

The property is surrounded by residential and industrial uses, and the neighbors all seem supportive of R&B Realty’s plans, Mr. Wernick said. “The feedback we got was positive. The plan caps the height and allows us to keep parking onsite. We think it provides an appropriate transition.”

A sketch from Terranova’s plans for the two garages, incorporating the company’s 220 Miracle Mile.

Gables garages development battle heads for city staff recommendation

By Catherine Lackner

The competition to redevelop two garages owned by the City of Coral Gables is very much alive, city sources said this week.

Though an evaluation committee voted for a proposal by The Allen Morris Company and The Related Group on Dec. 6, “The city commission reserves the right to negotiate with the evaluation committee’s second choice, or with anyone,” said Javier Betancourt, city economic development director. The commission can also decide not to endorse any proposer, or to shelve the project altogether, he added.

The next step is for city staff to draw up a recommendation for the city’s manager’s review.

The matter will then go to the commission.

The committee evaluated two proposals. TC Gables, an affiliate of Terranova Corp., which submitted the other proposal, is still very much in the game, said Josh Gelfman, Terranova director of development.

For years, the city has sought proposals to replace two antiquated city parking structures (Municipal Garage 1 at 245 Andalusia Ave. and Municipal Garage 4 at 345 Andalusia Ave.) with more appropriate buildings.

TC Gables’ proposal, Shops and Residences at Miracle Mile, treats both garages as a unified site that incorporates 220 Miracle Mile, which Terranova controls together an affiliate of Morgan Stanley Real Estate Investing.

“We are proposing three new buildings that will add to the vitality of the heart of Coral Gables,” the proposal submitted last sum-

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Terranova cares: Josh Gelfman.

mer said. “On the ground floor of the garages and the lower two floors of the new Miracle Tower, we propose to include new retail space with 20-foot floor heights to help attract new retailers and restaurants to the area. We are proposing multi-family rental residences because rental apartments tend to be more intensively utilized than condominiums in South Florida and will further contribute to the vibrancy of the businesses in the surrounding area.

“It is our belief that the public environment is enhanced by bringing more life to the intersection of Ponce and Miracle Mile.

The new residents and the activity they bring to the street will greatly enhance the quality of life for the city and its residents.”

Designed in a Mediterranean style, Garage 1 as proposed would be 102 feet tall, with about 17,000 square feet ground-floor retail and eight levels of parking comprising 500 public parking spaces, 343 spaces for residential users at Miracle Tower, and 67 for other users. “The roof of the garage is proposed to contain amenities for

the adjacent building connected by an elevated passageway,” the proposal said.

“The garage is proposed to contain multiple connection points to the new building, allowing visitors to the area to pass directly from the garage to Miracle Mile or Andalusia, and utilize a paseo that will provide uninterrupted passage between Andalusia and Miracle Mile.”

The new 184-foot residential tower, within the footprint of the Miracle Building at 220 Miracle Mile, is proposed to contain slightly more than 220,000 square feet of floor area, including two levels of retail at the base and 14 stories of residential space with 187 units.

Garage 4 is proposed to be redeveloped as the base for a new 148-unit residential building, which would be a sister building to Miracle Tower. The 174-foot, 16-story building is proposed to include 33,700 square feet of retail and a 923-space garage with 500 public parking spaces, 264 spaces for building residents, and 136 for retail users.

“As a property owner and member of the business community in Coral Gables and Miracle Mile for more than a dozen years, Terranova cares greatly about the direction of the area and is committed to helping create a downtown that is a vibrant and appealing destination for residents, businesses and visitors,” Mr. Gelfman said this week. “We are confident that, in collaboration with the city staff and elected leaders, we can develop the very best project to enrich the City Beautiful for the City of Coral Gables and its stakeholders.”

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, DECEMBER 15, 2016

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

Not fielding best team will cost city more in riverfront deal The City of Miami, fielding real estate’s version of a good college team, is about to enter a realty Super Bowl.

We know before the game starts that the other team’s top-level pros are going to kick the stuffing out of our side.

Maybe that’s why Commissioner Frank Carollo said the city shouldn’t get into the complex deal that would net taxpayers a large office tower somewhere in place of current offices on riverfront that the city would then lease to Adler for $335 million over 90 years.

“I’m sick and tired of the city getting ripped off and doing sweetheart deals,” said Mr. Carollo in his familiar refrain.

Unfortunately, he’s absolutely right. Try to recall any city waterfront transaction that ever maximized taxpayer value. Most have been, as he often laments, sweetheart deals where the public came out on the very short end.

That doesn’t mean the city must quit the game. If a transaction will truly benefit taxpayers and doesn’t undercut city stewardship of public assets, go ahead. There is, after all, such a thing as a win-win.

But there won’t be this time unless the commission reverses its bad call to rely solely on in-house staff. The city won’t be fielding a top-level real estate advisor and will have in-house attorneys handle its side.

Commissioners agreed to involve an outside legal expert after the deal is cut, but by then the game will be over. Expert advice that could sweeten the deal will be

Photo by Maxine Usdan

Adler group would raze this city building and use the site in its Nexus Riverside Central.

lost. You don’t bring in the defense after the other team has scored; you bring it in from the kickoff.

The city attorney’s office does do real estate work, but not at the level of this super-transaction with the Adler Group, a top developer that’s sure to have big-deal lawyers on its team. Not a single assistant city attorney’s job is solely real estate.

They’re all generalists who deal with real estate today, a slip-and-fall tomorrow.

The city’s attorneys are reputed to be good generalists, the equivalents of good general practice physicians. But while you trust your family doctor, for brain surgery you want a top-level specialist.

Yet commissioners decided not to hire specialists after City Attorney Victoria Méndez warned last week that they might cost $250,000 or more. In a pennywise and pound foolish reaction, commissioners decided to save the $250,000 and let the generalists do the job, a decision that is likely to cost taxpayers far more in lost

L etters Beach needs light rail line

Miami Beach needs a public transit light rail system very badly. Tourists as well local residents are facing hardship in commuting between Miami Beach and Downtown.

Prakash Kumar

Rail total waste for Beach What a shame and a total waste of public money whereas funds could be spread in much wiser public usages. Sad day for Miami Beach.

Bill Mayhew

Mandate worker housing

There are over 500 of these [workforce housing] programs nationally; over 80% are mandatory. We’ve had a voluntary program that has not been used. Our crisis requires a mandatory program to begin to make a dent on the need.

Many, many misunderstandings here about potential impact of this program.

Hopefully our political leadership will do the right thing and respond to the call from the community.

Melissa Gallo

No developer free money The developers know that they’ve generated too much “luxury” condo inventory

opportunities during the deal-making.

In the last headline deal when local governments didn’t bring in outside experts, the city and the county combined to lay out almost $3 billion – yes, that’s billion with a B – to build a baseball stadium for the Marlins, who also get to keep all the stadium revenues and can block other development on city-owned land next door.

The Marlins hired top negotiators, so they got governments to agree that taxpayers would cover all of the team’s legal bills.

Governments had their own staffs negotiate to give everything away.

City Commissioner Francis Suarez, himself a real estate attorney, warned the commission that it’s an error to cut the riverfront deal without an expert lawyer on the city’s team right now.

Clearly the city’s legal department and others too would have to be involved. Outsiders would be at a disadvantage dealing with zoning, permits and legal issues in the city’s purview. But the city’s quarterback

to the

calling plays needs to be someone who has starred in the real estate Super Bowl before.

Adler needs this site more than the city needs Adler. Adler is building Nexus Riverside Central next door and wants the river frontage for phases II and III. The city could easily walk away from a bad deal to seek another developer, but Adler would have trouble saying no to any reasonable deal.

Given that great negotiating position, the city could add its legal and advisory costs to what it expects to get from Adler, just as the Marlins built their costs into a deal to which government felt it couldn’t say no – although it should have. Experts then would increase revenue rather than cost the city anything.

The city should set its sights far higher.

Real Estate Director Daniel Rotenberg told commissioners that talks are edging Adler to give the city more and he’s doing so well that he expects the deal to cost the city nothing.

But why settle for no cost? Taxpayers should be netting more than they yield, not just swapping riverfront for what’s sure to be a poorer site, though with more office space, on government-owned land elsewhere.

If taxpayers don’t win, why play? If the city is working so hard just to break even, then Mr. Carollo is right: don’t get into the game at all.

But the city can do better than tie. It has scarce waterfront and wants a bigger building at an inferior site. Taxpayers should wind up with more than that, netting more cash.

The city doesn’t have to deal that land at all – or, at least, not to Adler, which covets it.

The city is in prime field position to score big if it puts the best team it can get on the field and does hard-nosed negotiating that experts are strong in and the city, based on past giveaways, is definitely not.

E ditor

comes to a rate of sea level rise of over 25 back in 2003. Long since vetted, enough millimeters per year, well over five times with the studies and let’s start building it the current rate as calculated from the already.

Letters for publication may be sent to DC Copeland Virginia Key tide gauge. the Editor, Miami Today, 2000 S. Dixie The obvious question to ask is when Hwy, Suite 100, Miami, FL 33133 or ewill this speed up in the rate of sea level mail to letters@miamitodaynews.com. rise begin to happen?

Letters may be condensed for space.

Great news that after 24 years the Marine Steve Case, Milwaukee Stadium will come alive again, maybe in one year if everyone tries to work together. and the only way to make money in the near Until now it has been a graffiti museum future will be to build affordable condos Jose Pepe Cancio Miami Beach’s plan for a “light rail” or apartment buildings, so they will build at grade is nuts. The only thing that will them either way.

However, they want to see if they can work is an elevated mass transit line force the taxpayers once again to line their from Miami to the Convention Center pockets with incentives (spelled F-R-E-E with east-west feeder routes on the island miamitodaynews.com M-O-N-E-Y) they don’t deserve in order handled by the city’s existing free trolFOUNDED JUNE 2, 1983 leys, Uber and Lyft.

VOLUME XXXIV No. 29 make these affordable units more lucrative An elevated line is a natural compatENTIRE CONTENTS © 2016 for them.

To contact us: I don’t see the county coming to my ible extension from the elevated Miami News

(305) 358-2663 Central Station now under construction.

Advertising (305) 358-1008 business and giving me huge incentives Classifieds (305) 358-1008 to stay afloat, and I don’t think it’s a good It’s cheaper than the “light rail” line proSubscriptions (305) 358-2663 posed for Miami Beach plus it nixes years Reprints

(305) 358-2663 practice for the county to be sustaining and years of tearing up miles and miles of Editor and Publisher / Michael Lewis private businesses in general.

Vice President / Carmen Betancourt-Lewis Edward Escobar streets to realign buried infrastructure and reinforces the roadbed to handle the weight of the “light rail” trains.

Any “Smart Plan” should make Baylink … the report points to ways to shore up first because, aside from the fact that tourour roadway network to serve us better in ism is the number one moneymaker here, MIAMI TODAY (ISSN: 0889-2296) is published weekly for $145 year; airmail: to Europe $190 per year, the Americas $145 per the face of a sea level rise estimated at 6 it was first on the list for new mass transit per year. Published by Today Enterprises Inc., 2000 S. Dixie Highway, Suite Miami, Florida 33133, USA. Periodicals postage paid at to 12 inches by 2030 … projects as proposed by the Miami-Dade Miami,100, FL. POSTMASTER: Send address changes to MIAMI TODAY, 12 inches by 2030 (13 years from now) Metropolitan Planning Organization way 2000 S. DIXIE HIGHWAY, SUITE 100, MIAMI, FLORIDA 33133.

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Marine Stadium’s gains

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TODAY’S NEWS

MIAMI TODAY

WEEK OF THURSDAY, DECEMBER 15, 2016

Slow work on Flagler Street revamp kicked into high gear

By Catherine Lackner

In the past few weeks “there’s been very significant progress” on the Flagler Street redevelopment project, said Brian Alonso, co-chair of the Miami Downtown Development Authority’s Flagler Street Task Force.

Miami had issued the contractor, F.H. Paschen, two violation notices because of slow progress on the project, which has been several years on the drawing board and almost a year under construction.

“The second letter had teeth in it and made it to the company’s corporate offices and to the bonding company,” Mr. Alonso said. Suddenly, after some personnel changes, things were once again in high gear, with about 20 people working onsite.

“Trees have been installed, the pavers are in and the sidewalks are almost complete” on phases one and two of the 13-phase project, Mr. Alonso said. When completed, the renovation will stretch from the Photo by Cristina Sullivan Dade County Courthouse east to Work beside the Dade County Courthouse has stretched for months to craft a new Flagler Street theme. Biscayne Boulevard.

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‘I want to go on the record that we were prevented from being part of the bid and selection process.’

Jose Goyanes Last month, downtown authority directors noticed the slowdown and debated what to do. Miami’s Capital Improvements Program, which is running the project, had ruled that the contractor was in default and that a new one must be hired, said Ken Russell, authority chair and Miami commissioner.

It turns out that the contractor was already in dispute with the city over another job, a fact that didn’t disqualify it from bidding on the Flagler Street project. According to Miami’s bidding rules, the lowest price qualified contractor must be hired, and in this case it was F.H. Paschen, Mr.Alonso explained after the development authority meeting.

“I want to go on the record that we were prevented from being part of the bid and selection process,” said board member Jose Goyanes, who is owner of Metro Beauty Center and Churchill's Barbershop, at the meeting. “In the future, that can’t be the case. We need to be allowed to be part of it.”

The downtown authority and stakeholders on the street – not the city – are footing most of the cost, yet members of the task force have complained that the city ignored them at almost every turn.

The Flagler Street design will feature a railroad theme, highlighting Standard Oil tycoon Henry M. Flagler’s achievement in pushing the Florida East Coast Railroad past Palm Beach and into Miami, thus connecting the fledgling city with the rest of the world.

The sidewalk design alternates light and dark grey bands of concrete to give the effect of railroad tracks, and an actual railroad tie is to be imbedded in the sidewalk to separate the walking surface from the street furniture and trees. The concrete was chosen because it is inexpensive, durable and easy to replace. Movable gates that look like those at railroad crossings reinforce the theme, can be used to close off streets for special events and can be propped up vertically when not in use.

Shade trees, bike racks and other furnishings complete the picture.

Flagler Street has long been a concern to downtown business owners. Many sidewalks have been expanded, restricted or rebuilt over the years. In addition, street surfaces are uneven, and a failed pavers project has left many conflicting surfaces.

Because underground pipes, drains and utility lines were antiquated and in severe disrepair, the City of Miami had to replace those before the above-ground work could be tackled, authority sources said.

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, DECEMBER 15, 2016

Temporary occupancy of science museum pushed into 2017

By Camila Cepero

Issuance of a temporary certificate of occupancy for the new Patricia and Phillip Frost Museum of Science in Museum Park has been rescheduled for sometime in January.

In October, Mayor Carlos Giménez told commissioners that the certificate would be delivered in the third week of December.

However, the most recent report notified the museum’s board of directors that based on Skanska USA Building Inc., the project’s second and current general contractor, the certificate was now scheduled for January.

County officials say the delay won’t affect the museum’s opening date, which is tentatively slated for

Photo by John Charles Robbins

The science museum is shown under construction earlier this year.

the middle of next year.

Michael Spring, senior advisor to the mayor and director of the Department of Cultural Affairs,

said the certificate is contingent upon “getting the building to the point that it can go through inspections.”

“It’s a very complicated building,” Mr. Spring said. “There have been some light delays in the roofing elements of the building that slightly affected the schedule. There are four separate interconnected buildings, a gigantic aquarium, a planetarium – there are very complex building systems – so we have to take that into account.”

A one-month delay in a temporary certificate of occupancy, he said, is less important than making sure the building gets done properly.

The City of Miami is the permitting authority in this case and holds buildings to a rigorous set of standards before granting certificates of occupancy.

“The building has to be substantially complete,” Mr. Spring said.

“The building systems need to be

operable to the city’s standards. It’s a very rigorous, complex process – certainly you don’t want a building designated as ready for occupancy when it’s not.”

The $304.4 million project is to be overseen by a full museum board of directors that includes county officials.

Just over 10% of construction remains, meaning the process has moved into the intricate final stages.

Progress on the infrastructure is being made incrementally – drywall is being finished in the interiors and rooftop work is wrapping up.

It will be up to the board and museum staff to reach a consensus on a date, Mr. Spring said, but the museum is undoubtedly months away from its long-awaited grand opening.

Grove garage bids, more than double estimates, are rejected

By John Charles Robbins

Miami’s Off-Street Parking Board has rejected all bids for construction of a public parking garage in Coconut Grove after they came in more than double the estimated cost.

The Miami Parking Authority, run by the parking board, plans to build and manage a new garage off Pan American Drive on the Grove waterfront.

The garage is planned at three stories for 333 vehicles and ground floor retail uses, and is a key component of a public-private partnership between the parking authority, the City of Miami and Grove Bay Investment Group LLC. The developer has leased about 7 waterfront acres from the city as part of agreement to redevelop the waterfront north of City Hall.

The plan calls for Grove Bay Investment Group to make about $17.9 million of privately-funded improvements to redevelop a marina, construct restaurants, improve the public baywalk, make other improvements and fund part of the garage.

In November 2015, the three parties signed agreements advancing the project, to be called The Harbour.

As part of a revised agreement, the developer agreed to contribute $4 million toward the cost of building the new garage, or about half of the $8 million construction budget, according to authority officials.

Authority officials were shocked when the bids came in way over budget.

“All of the responses exceeded by a large margin our budget for the project,”Authority CEOArt Noriega told the parking board Dec. 7.

The four contractors’ bids ranged from a low of about $17.7 million to a high of nearly $18.8 million.

Mr. Noriega said some circumstances leading to the high costs arose during the permitting process and design issues.

He said staff was advising the parking board to reject all bids.

“We felt that would be the cleanest way to do it,” he told the board.

Mr. Noriega said if the bids were closer to the project’s budget it might be worth picking a contractor and negotiating to a resolution, but the gap is far too wide.

“The difference in numbers is

Bids on the planned Grove Bay Garage more than doubled estimates, reaching about $50,000 per space.

just too significant,” he said.

Mr. Noriega then introduced Erick Valderrama, director of project development for MCM, who he said “sees it a different way.”

Mr. Valderrama said his company was the low bidder. He said his firm has been evaluating the project for about 2½ months and his team has “a very good understanding of what the costs are for that project.”

Mr. Valderrama said it is “an expensive garage – by garage standards.” He asked the board to award the contract to MCM and grant his team the opportunity to then focus on cost-cutting.

Mr. Noriega argued against that, saying it would be “way too heavy a lift for us, in terms of cost.”

He added, “It’s really, really important that we do this the right way, and look at it from a design perspective first.”

Mr. Noriega also noted that there was a dispute as to ranking the contractors and that MCM was the second lowest bidder.

A report prepared by the architects listed the base bids in this order: 1. Florida Lemark, $17,734,283.

2. MCM, $17,782,391.

3. Link Construction Group, $18,543,667.

4. KVC Constructors, $18,793,974.

In the parking industry, the cost of building a garage is often calculated per space. One industry report, as of March 2015, said statistical data indicated that the

median construction cost for a parking structure was $18,599 per space.

When the parking board first discussed hiring the architectural firm that would design the Grove Bay Garage, board member Stephen Nostrand had asked what the estimated per-space cost was for the planned facility.

An authority official said $25,000 per space was the budget they were looking at. That was two years ago.

At last week’s meeting, Mr. Nostrand asked Mr. Noriega about per-space cost considering the bid amounts received.

In the range of $50,000 per space, Mr. Noriega responded.

Mr. Nostrand scoffed and questioned the role of the architects.

In 2014 the parking board hired Wolfberg Alvarez & Partners for design and architectural work on the Grove Bay facility on a $375,000 contract.

Litigation delayed start of The Harbour project and was not settled until 2015. In the meantime, the parties decided the “scope was too small” and chose to have the garage redesigned, adding a third level and increasing spaces from about 228 to 333.

To cover the additional work from Wolfberg Alvarez, which included more engineering and mechanical work, Mr. Noriega had asked the board to add $93,000 to the contract at its October 2015 meeting.

The motion the board approved

allowed for the expanded services as well as raised the contract from the original $375,000 to $468,000.

Mr. Nostrand wanted to know why the bid proposals came in so much higher than what was anticipated.

“I think they undervalued their cost estimates,” Mr. Noriega responded.

Wasn’t the architectural firm responsible for costing out the project before the invitation for bids was issued, asked Mr. Nostrand.

Yes, was immediate answer from Mr. Noriega, who went on to say “what really hurt us” was the permitting process and unexpected costs. He said requirements dictated by the Federal Emergency Management Agency caused a $1.5 million “hit” to the project.

High costs associated with the planned exterior façade or skin of the building is another factor in the big numbers, according to Mr. Noriega.

With all bids rejected, now the authority’s staff will work with design architects on a less expensive structure and a new invitation to bid will be issued.

Mr. Noriega said authority staff will sit down with the architects, attorneys and other players to review critical aspects of the design, the garage footprint, the ramping and landscaping, and the design of ground floor retail spaces.

Mr. Nostrand asked, “Shouldn’t have those conversations been had before the project was bid out?”

He asked if it was a case of the

architect over-designing.

Mr. Noriega said “you could call it that” but another factor in the design was public input and pressures from Grove leaders and residents for an acceptable new waterfront structure. At previous meetings, Mr. Noriega described the design as “very Grove-centric.”

Mr. Noriega reminded the board that he had to take the garage plan for review and approval before the city’s Planning, Zoning andAppeals Board and the Historic and Environmental Preservation Board.

Mr. Nostrand said, “It just sounds like there should be some liability on the part of the architect.”

Mr. Noriega said he expects to discuss that when a request is made from the architectural firm for additional fees to cover a redesign.

Mr. Nostrand asked whether the authority can build and deliver the new garage at a per-space cost of $25,000 to $35,000.

Mr. Noriega said no, calling the size of the Grove Bay garage small.

He said the real cost of building a garage is currently about $32,000 per space.

The garage is to rise off Pan American Drive and South Bayshore Drive.

Work on the site has begun.

The parking board, on a separate contract, hired KVC Constructors Inc. for site clearing, demolition, cutting, and excavation, as well as protecting all trees on the site.

The base bid was $111,493, plus $26,450 for alternate tree removal.

Last month the parking board approved an emergency procurement and change order agreeing to pay the company an extra $94,097 to relocate a water main on the site.

F ilming

in

M iami

These film permits were issued last week by the Miami-Dade County Mayor’s Office of Film & 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.

Today’s Feature. New York. GBT Sickle Cell. Greynolds Park, Haulover Beach Park.

N House Productions. Miami. Carters. Countywide.

Pro One Productions Inc. Miami Beach. Fashion House AD. Countywide, Miami Beach citywide.

Pro One Productions Inc. Miami Beach. Agency Plus Size.

Countywide, Miami Beach citywide.

N House Productions. Miami. Le Redoute. Countywide, Miami Beach citywide.

Summit Productions Inc. Fort Lauderdale. Suitegro.

Countywide, Miami Beach citywide.

Williams-Sonoma Inc. San Francisco. West Elm. Matheson Hammock Park.

Pro One Productions. Miami Beach. Fashion House AD1.

Countywide, Miami Beach citywide.

Orchards Brands Corp. Middleton. Appleseeds. Amelia Earhart Park.

WEEK OF THURSDAY, DECEMBER 15, 2016

TODAY’S NEWS

MIAMI TODAY

17

Wealth management clients are showing less uncertainty

By Susan Danseyar

It’s too early to know exactly what President-elect Donald Trump’s proposed policies will have on the markets and our finances, but a few experts in the sector are noticing there’s less turmoil among their clients about wealth management as well as the exchanges.

Several investment advisors and an accountant in March spoke to Miami Today about hearing some of their clients voice trepidation, regardless of their political leanings and pertaining to both candidates.

They said presidential elections almost always cause a stir in the market, and often worries for people about their jobs and salaries.

Now that the election is over and we have a president-elect proposing policies, Miami Today re-connected with the men we spoke with in March to learn if the concerns any clients expressed then are currently assuaged, heightened or not changed in the least. Eight months ago, they were hearing apprehension about financial planning regardless of their political leanings and pertaining to both candidates.

There’s too much uncertainty right now to know what will happen with the tax situation, international trade and other economic issues, said Joshua Mungavin, a certified financial planner and principal of Evensky & Katz/Foldes Financial Wealth Management. Even in March, he said the issue of taxes wasn’t clear: the election was

Photo by Cristina Sullivan

Expectations are relieving most small businesses: Eric Santa Maria.

not only for our next president but a good portion of the rest of government as well.

Last week, Mr. Mungavin said the right thing to do in financial planning, as always, is to stay diversified.

Ever since the election, which was probably the most controversial we’ve ever seen, said Gabriel M. Bustamante, president of Bayshore Wealth Advisors, the people he’s spoken with seem to be relieved.

They know what to expect, he said this week, as does the market.

“Markets like certainty, to know what’s going to happen,

whether good or bad.”

Mr. Bustamante pointed to the futures market having dropped over 800 points on Nov. 8, then “ended up positive” by the afternoon of Nov. 9. In fact, he said, the market is currently at an all-time high.

“Now there’s a policy that’s being defined,” he said. First and foremost for our economy, Mr. Bustamante said, are the proposed lower tax rates across the board, which “are one of the most reliable ways government can create economic growth.”

Additionally, Mr. Bustamante said, president-elect Trump has proposed elimination of exces-

sive regulations in the financial and energy sectors, among others, and that has eased concerns of many people he once heard were worried about flat markets.

Most small businesses to a certain extent are relieved now that they know what’s out there insofar as incoming president and his proposed tax reductions, according to Eric Santa Maria, a CPA and director of tax and valuation services for Verdeja, DeArmas & Trujillo Certified Public Accountants. “We don’t know exactly what will happen but most are expecting a decrease in the tax rates going forward,” he said last week.

President-elect Trump is proposing three tax brackets at 12%, 25% and 33%, which is different from the graduated tax rate we have now, ranging from 10% up to 39.6%. Whether or not the decrease comes out to the extent Mr. Trump proposes, Mr. Santa Maria said, there will more than likely be some reduction across the board, given that the Senate and House of Representatives are also majority Republican.

Mr. Santa Maria has not heard clients express worries since the election and said they are extremely relieved with the expected tax decrease, which is in turn affecting year-end tax planning.

“They may want to defer [expected closings, deals] to 2017 and beyond,” he said. Other proposals by the president-elect that might affect tax and estate planning, Mr. Santa Maria said, are capping itemized deductions at $200,000 for married couples

‘Markets like certainty, to know what’s going to happen, whether good or bad.’

Gabriel Bustamante filing jointly, which could have an impact on charitable giving this year, such as bumping up a multi-year pledge before 20172018; and Mr. Trump’s proposed elimination of the estate tax, also known as death tax.

Stay diversified: Joshua Mungavin.

Free Small Business Academy links to network of resources

By Susan Danseyar

Raul Vergara was hesitant at first to sign up for an eightweek small business academy in South Dade because he’s been running his own business successfully for several years but soon learned “there are so many more pieces to the puzzle.”

Once he attended the first session, Mr. Vergara said the academy exceeded his expectations with not only the information he received in classes but also resources and networking opportunities he was given and has since used many times.

“The academy put together a whole array of tools,” Mr. Vergara said. The owner of Cutler Bay Solar Solutions, he started his business four years ago and says he has been doing well the entire time. “But I always had questions,” he said. “I’d ask myself ‘How do I get information on this?’ or ‘Where do you even find it?’”

After 29 years of working for others and then establishing himself in a business of his own, Mr. Vergara said he didn’t even know the myriad details with which one must be familiar.

“Although my business was well run, I was able to apply a lot of little things that go into it which I wouldn’t have otherwise know, had I not attended

the academy,” he said. For example, Mr. Vergara already used Quick Books for bookkeeping but learned in one of the SBA classes more about the program’s tools.

“Each week we had a different topic,” Mr. Vergara said. “The instruction was excellent and opened my eyes.”

Other classes he said were extremely helpful included how to advertise, how to reach your target audience and know what one’s target audience is, where to find information and all the agencies that affect his business, and social media, which he said none of us yet truly knows everything.

In particular, Mr. Vergara was pleased with networking opportunities that he wouldn’t have otherwise known existed.

“Sometimes, information is hard to find.”

Businesses need to know the academy is available, Mr. Vergara said. “When I first heard about it, I almost passed it up but it was helpful in ways I didn’t know existed.”

In October 2015, county Commissioner Daniella Levine Cava launched the District 8 Small Business Academy Raul Vergara said “the academy put together a whole array of tools.”

(SBA) to provide training and resources for local businesses The last SBA was for eight to 14 weeks. so that entrepreneurs have the weeks. It will be starting in Ms. Levine Cava said her tools they need for success.

January and has been extended office is dedicated to economic

development in South Dade and created the academy with input from priorities expressed at the South Dade Solutions Summit held in the summer of 2015, which identified investing in small businesses and encouraging new entrepreneurs.

“Small businesses are the backbone of South Dade; they provide crucial services, create jobs and are vital community partners,” Ms. Levine Cava said. “The goal of the academy is for businesses to have the knowledge and resources to increase sales, hire employees and prosper. When we empower our small businesses, our community thrives.”

The Small Business Academy, which is free, features workshops taught by business development agencies in South Florida. Academy participants are provided linkages to a network of private and public resources.

Sponsors for the District 8 Small Business Academy include Partners for SelfEmployment, Hispanic Business Initiative Fund, Economic Development Council of South Dade, Miami-Dade County Small Business Development Division, The Beacon Council, CareerSource of South Florida and the Florida International University Small Business Development Clinic.