Miami Today: Week of Thursday, December 28, 2017

WEEK OF THURSDAY, DECEMBER 28, 2017

A Singular Voice in an Evolving City

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34 HOTEL CONSTRUCTION PROJECTS WITH 5,900 ROOMS READY TO RISE IN 2018, pg. 17 CURIOUS COMMISSIONERS: After MiamiDade commissioners delayed for a second time a decision on raising Mayor Carlos Giménez’s salary, commissioners are unsure what will happen next.

When asked about the outcome of the mayor’s salary, Dennis Moss said he has “no idea” how it will play out but believes Mr. Giménez “deserves to be fully compensated.” The mayor elected to take half of his predecessor’s salary when he took office, taking only $150,000 annually to cut county costs and set an example for his employees. The item to discuss the board raising the mayor’s salary was sent to the Chairman’s Policy Council for consideration and will come back to the commissioners for approval. Daniella Levine Cava said “there is going to be an appetite to resolve it in the short term” but hopes there is a robust and qualitative discussion before any decision is made.

The Achiever

CHARGES TO CHARGE: Household electricity prices in the Miami area are up more than 10% from a year ago but continue to be well below the national average, the US Bureau of Labor Statistics reports. Area households paid an average of 11.9 cents per kilowatt hour of electricity in November, up from 10.8 cents in November 2016, the latest bureau statistics show.

Still, what Miamians paid was 12.5% less than the nationwide average of 13.6 cents per kilowatt hour in November. The margin has narrowed from November 2016, when Miami households paid 17.6% less than the national average of 13.1 cents per kilowatt hour. Miami area electricity prices have been at least 11% below the US average for the past five years.

LOADING PASSENGERS: A new Johnnie Walker Store, the first in any airport, has opened near Gate D14 at Miami International Airport where a special bar will serve the company’s products before flights. The 1,134-square-foot store will also showcase Johnnie Walker products, offer customized labeling and engraving for products and offer a 500-bottle limited edition Scotch whisky created by Miami illustrator Ernesto Maranje, the Johnnie Walker Blue Label Miami Edition showing the brand’s journey from Scotland to Miami with a series of hand-drawn illustrations.

The bottle, on display now, goes on sale in March.

TARGETING TALLAHASSEE: The Greater Miami Chamber of Commerce plans its annual Tallahassee Fly-In mission from Jan. 9 to 11 to meet with key members of the state legislature, cabinet members and agency officials. Registration is $250 through December for members of the chamber, $300 starting Jan. 1. Details: Spencer Pylant, (305) 577-5421 or spylant@miamichamber.com.

Manolo Reyes

Photo by Cristina Sullivan

Educator/economist joins commission after seven tries The profile is on Page 4

County may set up independent salaries team

By Gabi Maspons

After 13 failed attempts over decades to raise Miami-Dade commission salaries, commissioners are looking into an independent pay commission to set salaries for the mayor and commissioners, to amend the county charter and fairly compensate commissioners.

The county pays commissioners the same $6,000 set by charter in 1957 when population was less than one-third of today’s. MiamiDade is the largest county in Florida with the biggest budget, but its commissioners consistently get the lowest pay.

“The public has not felt the commissioners merited the increased salary,” Commissioner Daniella Levine Cava said Tuesday. After her three years in office, she says it is a demanding full-time job, estimating that each commissioner works 70 to 80 hours a week.

Commissioners have asked residents for a raise 13 times since 1961, arguing higher salaries could attract more diverse candidates who couldn’t otherwise afford to run. Each time, residents have voted the raise down.

All 66 other counties follow a state scale

based on population, but Miami-Dade’s Home Rule Charter Amendment relating to service and salaries of commissioners lets it opt out of the state pay formula, which would pay the commissioners over $99,000 a year, over 16 times what commissioners make today.

Mayor Carlos Giménez has been taking half of previous mayor Carlos Alvarez’s salary for about six years after he decided to set an example upon his election to cut county costs. This month, he asked commissioners to review his salary and create a system for setting future mayors’ pay.

Though commissioners have yet to decide on an alternative salary or process to set the mayor’s salary, Mr. Giménez’s request prompted a discussion about how mayoral and commission salaries are set.

Commissioner Dennis Moss said he would be crafting legislation to delegate salary setting to an independent salary commission, which would set both mayoral and commission salaries.

To allow an independent salary commission to raise those salaries, voters would have to approve a charter amendment in 2018.

“It was very close in one election in the past,” Mr. Moss said, and having an independent body set salaries would be more popular with voters than commissioners pushing their own raises.

“If the community saw it as an independent group that made a decision, I think they could support it,” Mr. Moss said. “It won’t be run by the state, the commissioners or the mayor.”

The public may also be more open to an increase if it didn’t benefit sitting commissioners, Ms. Levine Cava said, and this is an appropriate time for a charter change as the first commission term limits are to kick in soon.

A salary increase for commissioners would allow more people to run for office who couldn’t afford living on the current salary, Mr. Moss said.

Ms. Levine Cava said its hard for people to run if they aren’t independently wealthy or don’t have another source of income, and a salary increase could attract more candidates.

Mr. Moss told Miami Today his item to create an independent salary commission is being worked on and he’s not sure when it might be brought to a commission meeting.

Transit use falls almost 10% in year Miami-Dade’s beleaguered transit system took its worst plunge in use ever in the past fiscal year, new figures reveal.

Ridership among all four transit modes declined a combined 9.6% as almost one in every 10 riders disappeared.

Declines hit across the board, though the drop in bus passengers, the largest single group of transit riders with 58 million yearly trips, was greatest, at 11%, The figures through Sept. 30 appear in the Department of Transportation and Public Works’ just-released monthly Ridership Technical Report, which as usual provides no analysis. Officials did not issue a formal statement.

But bottom lines by fiscal year show the passenger exit increasing in intensity just as the county is promoting plans for six new legs of mass transit in its multi-billion-dollar Smart plan and shortly after the first new Metrorail train since the system opened in the 1980s was placed into service amid fanfare.

The 9.6% overall use plunge in fiscal 2017 followed declines of 6.9% in 2016, 4.8% in 2015 and 0.6% in 2014. The last ridership gain for the system was 3.2% in 2013.

The plunge in bus use of 11% followed falls of 10% in 2016, 5.8% in 2015 and 2% in 2014.

The last gain was 0.7% in 2013.

Metrorail use fell 6.9% after a dip of 2.1% in 2016. Metrorail gained 1.5% in 2015, 2.6% in 2014 and 12.9% in 2013.

Even the free Metromover encircling booming downtown lost 8.3% of riders in 2017. It had gained 3.8% in 2016, 0.2% in 2015, 3.6% in 2014 and 5.2% in 2013.

Total ridership on all legs of the system, including Special Transportation Services for wheelchairs, fell below 90 million last year, to 89.08 million rides.

In fiscal 2013 it was 110.7 million rides.

Paradoxically, as transit use has fallen, anxiety about traffic congestion and desire for added transportation options have risen as transportation has become the community’s most vocal concern.

TRIP BRINGS SIGHT TO BLIND VIA RECOGNITION GLASSES ...

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COUNTY RECORDS 17% WORKER ABSENTEEISM EACH DAY ...

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BOUTIQUE DEVELOPERS TOUT INSIDE TRACK ON TRENDS ...

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INDUSTRIAL REALTY MARKET SEES ITS STRONGEST YEAR ...

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VIEWPOINT: RIDERS ARE FUEL FOR SMART TRANSIT PLAN ...

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NEW RAIL LINE STILL SEEKS FEDERAL OK TO RUN TRAINS ...

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JEWISH HEALTH SYSTEM WINS CITY OK, BREAKS GROUND ...

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IRMA DETOURS SISTER ZOO TRIO, PANAMA LINKAGE BACK ...

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TODAY’S NEWS

MIAMI TODAY

The Insider ANOTHER BRAZIL LINK: LATAM Airlines Group plans a new non-stop route linking Miami International Airport and Salvador do Bahia, Brazil, and more flights on its existing routes linking Miami with Fortaleza and Recife, Brazil, according to Pablo Chiozza, a senior VP of the airlines group. All the flights are pending regulatory approval and are planned to begin before July, with no specific dates listed, the company noted. Miami International Airport added a São Paulo link through Ocean Airflight last spring as it added multiple flights linking to other nations throughout the year. New Miami International Airport links for 2018 have yet to be announced.

REDUNDANCY REQUIRED: After voting ‘no’ to extending a pool of telecommunication services, equipment and materials for the county’s IT department this month at the county’s Infrastructure and Utilities Committee meeting, Joe Martinez said he would be draft legislation to stop departments from extending contract pools without official public bidding.

Namita Uppal, Miami-Dade’s chief procurement officer, told him the bid was not needed as “the requirements are the same and the same vendors would have to apply and go through the paperwork and process.” Ms. Uppal said the department was eliminating redundancy and vendors Joe Martinez could still apply to be added to the pool every six months.

“I’m going to put a stop to this and draft an ordinance so this doesn’t happen again because I don’t accept your explanation,” Mr. Martinez said.

ON FPL’S RADAR: When moving forward an agreement with FPL at the county’s Infrastructure and Utilities Committee meeting this month to install a county-owned sewage pump station on FPL property for $56,800, Commissioner Bruno Barreiro took the opportunity to put comments on the record.

“I would like to bring up that FPL should underground all utility cables,” he said. “Eventually, this will make its way up to the people who make decisions, so I will be making this type of statement on every item so our intention becomes very clear.” Commissioners have been pushing FPL to underground all its cables after Hurricane Irma, say- Bruno Barreiro ing it will storm-proof the county’s power. Commissioner Jean Monestime agreed with Mr. Barreiro, nodding and saying “good point.”

PRIORITIZING PARKING: When debating how to create additional parking while keeping swale areas between county streets and homes green in Miami-Dade County earlier this month, commissioners on the Transportation Committee requested that the department look into a plan to create additional parking in residential areas around the county. “I want to see swale areas green just as everybody does,” said Commissioner Rebeca Sosa. “But we need to provide parking for these areas where people live.”

Israel mission brings sight to blind via audio from recognition glasses

By Gabi Maspons

When Mayor Carlos Giménez and members of his team went to Israel last month, they brought back new Israeli technology that can help blind and visually impaired people read print and understand their surroundings through glasses that provide information auditorily.

During a Miami-Dade County commission meeting last week, The Miami Lighthouse for the Blind and Visually Impaired presented the technology to the commissioners.

“Because of this trip and the partnership you created, many blind people will be able to read,” said Virginia Jacko, president and CEO of the Miami Lighthouse for the Blind and Visually Impaired.

To demonstrate the new technology to the commissioners at the meeting, Ms. Jacko, who is herself blind, held the commission agenda in front of her glasses and the glasses processed the text and speakers voiced the agenda to the room.

Though Ms. Jacko is unable to see the paper, her glasses recognize the text and tell her what is written on the page.

Commissioner Sally Heyman told the commissioners that there are two settings for the glasses: a loud speaker setting and a setting that only the user can hear.

The private user setting alerts the

Dennis Moss

ISRAELI TECH COMING SOON: After a business trip to Israel last month, Mayor Carlos Giménez said the county will soon benefit from groundbreaking Israeli technology that will update Miami’s infrastructure. “Some technology is really going to blow your mind,” Mr. Giménez said. He said he saw “incredible technology for our airports, seaport, drone technology, anti-drone technology and a transportation system that holds a promise for the future.” The consul general of Israel to Miami, Lior Haiat, thanked the mayor for “coming and seeing part of what Israel has to offer.”

Mr. Haiat said the trip is only the beginning of many future Lior Haiat partnerships between Israel and Miami.

TRAFFIC IMPACT IN MIDTOWN, WYNWOOD: The City of Miami has announced the temporary closure of two southbound lanes on North Miami Avenue between Northwest 27th and 29th streets due to the installation of a water main line. The closure will begin Thursday, Jan. 4. This work is to last about two weeks.

AMMO BUY FOR POLICE: Miami city commissioners have accepted a bid from G T Distributors Inc., the lowest bidder, to provide lethal and non-lethal ammunition and accessories for the police department. The deal is for an initial contract period of three years with an option to renew for two additional twoyear periods, subject to the availability of funds and budgetary approval at the time of need. The cost is estimated at $94,000 a year.

CORRECTION: In last week’s People section, the level of education of Federico Laureti was stated incorrectly. Mr. Laureti holds a master’s degree from the University of Phoenix.

CORRECTION: In last week’s issue the Achiever was misquoted. The diplomatic proverb Burç Ceylan mentioned was, “know something about everything and everything about one thing.”

Virginia Jacko, seen in Lighthouse expansion, says blind will benefit.

blind or visually impaired user to people around them, even remembering and identifying them.

“I could train it by giving the name of the person, and it would remember it ever after,” Ms. Jacko said.

“If she points to the chairman and says ‘Chair Esteban Bovo,’ the next time [he is in front of her, the glasses] will whisper in her ear, ‘Chair Esteban Bovo,’” Ms. Heyman said.

“What you’ve seen here today is a miracle,” said Lior Haiat, the

consul general of Israel to Miami, who brought the mayor and his team to Israel to introduce the technology.

“Our technology changed the lives of people.”

The glasses are available to the public at the Miami Lighthouse for the Blind and Visually Impaired at 601 SW Eighth Ave. “You will be hearing from me today,” said Commissioner Barbara Jordan to Ms. Jacko. “I have a sister who is blind, and I will be getting it for her for Christmas.”

100 ‘great’ affordable housing ideas offer county ways to move forward

APARTMENT PARKING REPORT: Commissioner Rebeca Sosa Dennis Moss asked the Miami-Dade County administration to provide a report to commissioners about the responsibilities of landlords with apartment complexes to address private

By Gabi Maspons and public parking concerns in residential areas in the county. “There are a number of empty parking spaces” The county will soon have access in the apartment parking complexes, Ms. Moss said, “but to 100 new ideas to help increase tenants are parking in the public domain, so I would like access to affordable housing in to know the responsibility of the landlord.”

Miami-Dade. Radical Partners, a REPURPOSING TECHNOLOGY: When demonstrating new glasses that can help the blind and visually impaired read and alert them when a friend or colleague is in their line of vision, Mayor Carlos Giménez joked that the technology would soon be made available to politicians. “We’re working on this for politicians, so when you get someone in front of you, it will say, ‘That’s Steve Bovo, he has three kids, etc.’” The glasses, available at the Miami Lighthouse for the Blind and Visually Impaired, can be trained to recognize people in a single Carlos Gimenez moment, when the user points to an individual and repeats that person’s name. From then on, the glasses will alert the blind or visually impaired user when the user is in front of them.

WEEK OF THURSDAY, DECEMBER 28, 2017

social impact accelerator, hosted a “100 Great Ideas Campaign” for five days online to collect and compile community-developed solutions for the affordable housing drought in Miami.

“As you may have heard,” Commissioner Daniella Levine Cava said, “Miami-Dade County is having a crisis in affordable housing.

Hard working families are being squeezed out and it’s nearly impossible to find affordable housing.”

Ms. Levine Cava said that nearly two in three renters in Palm Beach, Broward and Miami-Dade counties devote more than 30% of their income to housing costs, and more than one in three renters devote more than 50% of their income on housing.

Radical Partners identifies social impact issues in the region and helps to scale ventures to solve those issues by leveraging the community to produce solutions, said Director Sarah Emmons.

The five-day campaign invited residents to post ideas, comments, questions and resources, and it had about 249 submissions, 1,527 comments and 300 ideas from its 2,500 members and residents, Ms. Emmons said.

JPMorgan Chase & Co sponsored the campaign. Guest hosts included Miami Homes for All, the University of Miami Office of Civic and Community Engagement, The New Florida Majority, United Way of Mi-

ami-Dade, the NAACP, the South Florida Community Development Coalition, the Community Justice Project, Engage Miami, Catalyst Miami and the South Florida Community Land Trust.

Once all ideas were submitted, Radical Partners broke them down into ten categories: expanding funding for affordable housing, leveraging taxes to benefit local occupancy, modifying state and local policy, protecting resources the county already has, introducing innovative housing strategies like community land trusts and co-living setups, exploring sustainable and affordable building materials and techniques, reducing construction and preservation costs, considering external factors that affect affordability, engaging and empowering the community in decision making and building holistic communities that are accessible for all.

“3D printed homes can produce an entire home at $4 per square foot that are hurricane proof,” Ms. Emmons said.Another way to build sustainable and affordable homes is considering alternative construction materials like refrigeration panels, bamboo and recycled shipping containers, she said.

Some residents suggested modifying state and local policy to allow for accessory dwelling units to provide a low-cost option and an additional source of income for single-family homes.

After all of the ideas were collected, Radical Partners posted a poll on its Facebook page so residents could vote on their top priorities.

Ms. Emmons this month encouraged the commissioners to

“share the poll with constituents on social media” and welcomed them to sit with her to discuss the campaign and suggest any ideas of their own.

“Let’s take advantage of some of these great ideas,” Ms. Levine Cava said.

Commissioner Esteban Bovo Jr. agreed, saying he will be reaching out to Radical Partners to discuss how the issues relate to the commissioners’ agenda items and how they can help moving forward.

Radical Partners says it is to release a comprehensive final report “in the coming weeks.”

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 28, 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

Smartest step in Smart plan may be how to get riders back It’s well past time for County Hall to tell the public why transit riders are disappearing in droves and what the county is going to do to reverse that exodus.

As traffic has gotten worse in Miami-Dade and population and visitors have increased, in the past four years the transit system has lost nearly 22 million rides a year, as we reveal in this issue. That’s about 80,000 public transit rides for each weekday, or about 40,000 workers every day who took transit round trip four years ago and don’t today.

The question the county needs to answer in a standup way is where those workers went and why they abandoned heavily subsidized public transportation.

In the recent past transit officials have blamed the loss on lower gas prices and a better economy that allows more people to own cars.

While these factors might have some impact, that explanation surely won’t cover the vast majority of people who have abandoned public transit to ride on increasingly congested and unpredictable roadways.

County officials could realistically add to the rationale all the bus routes the county cut to save money. On the other hand, the county also said that those routes had the fewest riders, so how much difference could they have made in the total of lost passengers?

We’d add to the list of causes for ridership loss terrible service on the bus system, which alone lost 20.4 million of the total lost 22 million rides a year in the past four years.

Part of that might be due to the fact that more than 22% of the time the average bus driver is not on the job, about half of that

The bus system, which lost 9.6% of riders last year, touts savings. New cars will aid Metrorail, which last year lost 6.9% of its riders.

absenteeism due to drivers calling in sick or just not showing up. You can’t possible run a complex bus system well if almost a quarter of the drivers are absent every day.

That’s a labor negotiations issue where the county needs to either stand tough or turn the buses over to a private operator who doesn’t need to court union votes.

Granted, transit equipment is old and some of it is being replaced. Every Metrorail car will be new in a year or two, which will help.

But Metrorail will still roll on the same tracks, which were laid more than three decades ago. Age without proper repair is a recipe for inefficient, ineffective service that runs late.

Again, the county needs to be upfront about more than just the age and condition of rail cars. And it should include Metromover in that analysis.

When the county commission 15 years ago stripped away funds from the half-percent sales tax that voters approved for new transit and instead spent the money on old transit,

how much of those detoured boxcars full of funds actually went to upgrade the system and how much to simply raising the pay of transit workers? That should be a part of the analysis looking backward.

But looking forward, County Hall needs to take a hard and critical look at how the riders who are fleeing transit in the tens of thousands are going to be brought abroad new transit if and when the county finally gets it up and running. Habits of driving in private cars, as everyone knows, are hard to break, and building a transit-riding public is slow.

Once passengers permanently exit the trains and buses we have now, how does the county reverse the flow?

One thing is certain: the theory of build it and they will come doesn’t work in MiamiDade. We built the Marlins a brand-new stadium at $3 billion public expense and it’s a great place to see a ballgame – but attendance has barely risen over six seasons in the new stadium, up just 1,500 people per game from the old ballpark.

So just saying we have brand new transit doesn’t mean that all those folks who hopped off the bus are coming back – ever.

It’s not that we don’t trust the county to have a hidden plan somewhere to get them back. We’d just like to see and analyze the complete written plan – a sort of reality check.

As we’ve said before, a new or improved mode of transit alone is not going to resolve our transportation issues. It’s going to take multiple steps, probably by multiple public and private entities, to do the job, in a range from better bicycle lanes to water taxis to rolling out the complete real-time traffic signal synchronization to more local circulator buses.

The big thinking of the six-corridor Smart plan is a big improvement at a big expense.

But before that money is actually committed at a cost that might equate to two or three baseball stadiums, wouldn’t you like to see the whole plan spelled out – starting with why 40,000 steady passengers got off the bus and how we’re going to get them back?

Puerto Rico and Hurricane Maria: lessons for the mainland I have had two envious work assignments in Puerto Rico, one on the northern coast and one on the southern.

My experiences in both cases were picturesque and charming, as I enjoyed pleasant Caribbean springtime respites from my Gary Welton Western Pennsylvania doldrums.

My heart aches today as I think of the challenges these residents face as they seek to survive the immediate shortages, prioritize their needs, and work to establish their new normal. While San Juan and Washington make critical decisions to assist the commonwealth, it is also important that we recognize similar vulnerabilities on the mainland.

In preparation for my 2016 trip to the island, I read about Puerto Rico’s water shortages. According to CNN (Aug. 4, 2015), the government was rationing residential water use, “turning off tap water in people homes, sometimes for days at a time.” Although the immediate cause of the acute shortage was a reduced level of rainfall, the chronic problem, according to many residents, was that “the government has mismanaged the island’s water supply and pipes for years.”

As Maria approached the island, we read about an unstable electric grid, in serious

The Writer

Dr. Gary L. Welton is assistant dean for institutional assessment, professor of psychology at Grove City College, and a contributor to The Center for Vision & Values. He is a recipient of a major research grant from the Templeton Foundation to investigate positive youth development. need of repair. Simply put, the island was not prepared for Maria. It was a literal perfect storm, with a direct hit of a powerful hurricane, on a bankrupt island, with a decaying infrastructure. The cataclysmic results were easy to predict. Our hearts continue to bleed for the struggling residents.

While Washington continues to bicker about partisan issues like health care and tax reform, very little has been done to address the nation’s crumbling infrastructure, a bipartisan issue.

In its 2016 report, “Failure to Act: Closing the Infrastructure Investment Gap for America’s Economic Future,” the American Society of Civil Engineers argues that 10 key sectors of infrastructure are currently inadequate to meet our needs, let alone to address the increasing demands of a growing society. We need to invest in our aviation, bridges, drinking water, electric

grid, inland waterways, ports, public transit, rail, roads, and wastewater. Failure to make these investments will result in growing economic waste.

We can be certain that natural disasters will continue to happen. We don’t know exactly where and when they will occur, but the hurricanes, earthquakes, tornadoes, floods and blizzards will keep coming. We have taken some steps to prepare for these by tightening our building codes. Nevertheless, we seem to be unwilling to invest in our crumbling infrastructure.

Of course, such infrastructure work requires money, and we have spent ourselves into a $20 trillion hole.

Just as Puerto Rico found it impossible to improve its infrastructure, because of its bankrupt finances, the mainland is staring into the face of the same scenario.

We increase social services every time the Democrats are in power. We reduce taxes every time the Republicans are in power.

Meanwhile, our bridges continue to crumble, our drinking water is contaminated, while Nero fiddles.

Granted, our tax code should be simplified and our health insurance system needs attention. Meanwhile, however, our current government has done little to address the bipartisan issue of a crumbling infrastructure.

If we continue with the status quo, the next natural disaster may take out 100% of our

power, phone service, gasoline delivery, and drinking water supplies.

Louis Pasteur said, “Chance favors the prepared mind.” Puerto Rico was not prepared, and it has not been favored.

We have been warned. Failure to plan for the rainy day will result in cataclysmic loss. I pray that the lessons coming from Puerto Rico will encourage all Americans to strengthen our infrastructure to ease the losses of the next disaster, whether it is named or not.

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WEEK OF THURSDAY, DECEMBER 28, 2017

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Commercial Real Estate & Office Space Temporary commercial land uses measure temporarily stalls

By John Charles Robbins

A late addition to proposed legislation to govern temporary uses on vacant land, which impacts so-called pop-up businesses, has stalled the measure.

Miami city commissioners approved the ordinance amendment on first reading in September, noting that planning and zoning officials were making further tweaks.

The final version of the proposal was up for a final vote Dec. 14, but Commission Chairman Keon Hardemon – the sponsor of the original proposal – raised concerns about added language.

It has to do with who has the power to make decisions on these pop-up businesses.

Commissioners recognize the value and potential of business start-ups and set out to make changes to the Miami 21 zoning ordinance to encourage these newcomers.

City officials and others have cited the success of a venture in the Wynwood Arts District called The Wynwood Yard as an example of temporary uses serving as seeds for new business.

It has been described as a culinary incubator and a community hub.

The amendment would modify the requirements for temporary uses on vacant land, including extending the time a temporary use could exist.

Under the section for review of applications, the original amendment added this wording: “Required documentation may include a survey, site plan with zoning legend, elevations, parking plan, and noise attenuation plan. Additional requirements as deemed necessary may be required.”

The proposal was changed after the first reading to add

A catalyst for the proposed changes was the commission’s desire to help the fledgling Wynwood Yard.

this wording: “When a Business Improvement District (BID) exists, a referral shall be made to the respective BID for review and recommendation, in order to make an informed decision.”

Mr. Hardemon singled out that new language as troublesome to him.

“I’m always adverse to granting powers to other boards,” he said.

Newly-elected Commissioner Joe Carollo agreed, saying, “You hit the nail right on the head. I’m glad you brought it up.”

Mr. Carollo said he’d like to see the new language regarding BIDs “stricken.”

The Wynwood Arts District has a BID board. Coconut Grove does too.

Zoning Administrator Devin Cejas told commissioners the wording was added in part to address concerns about all stakeholders in a community receiving notice of proposed new

businesses or changes in zoning conditions.

Mr. Carollo shot back, saying he didn’t like how the term “stakeholder” was being used, and questioned whether all who claim to be stakeholders are real stakeholders.

Sometimes it seems like the majority “get pushed aside by a handful of people with deep pockets who just parachuted in,” he said.

“This ordinance could be great in certain parts of the city,” Mr. Carollo said, but added his concern is how it might impact busy Southwest Eighth Street in Little Havana, the heart of his district.

He said he didn’t want to hold up passage of the item, and deferred to Mr. Hardemon.

Mr. Hardemon said a catalyst for the suggested changes was The Wynwood Yard, and the commission’s desire to help out the fledgling venture.

“But we want to get it right …

the issue is: Who decides what is allowed,” said Mr. Hardemon.

Mr. Carollo then made a motion to continue the matter until January, which a unanimous vote approved.

The proposed amendment notes the growing popularity of pop-ups.

“The increasing popularity of temporary uses on vacant land has exposed challenges for code compliance and a lack of flexibility for businesses, and [the city] wishes to promote activation of vacant lands to prevent blight within the community while maintaining proper enforcement measures,” it says.

Temporary uses and occupancies are of limited duration on private property or public properties and require special review by the city zoning administrator.

Currently, temporary uses on vacant land are limited to temporary structures such as tents, kiosks, mobile or manufactured

offices, temporary exhibition areas, and other similar structures, and provide such things as food, arts, entertainment, cultural, civic, scientific, horticultural, vocational or educational uses.

The proposed amendment would add the term “food service establishments” and “recreational,” to that section of the zoning ordinance.

Any intensive commercial or industrial use or occupancy is strictly prohibited, unless expressly allowed by the zoning ordinance.

Currently, temporary uses and occupancies are limited to six months but may be extended by the zoning administrator in six-month increments for up to two years.

The amendment would extend the times this way: “…a limited duration of one year and can be extended annually administratively by the zoning administrator for a maximum of three years.”

The proposal would also add this provision: “Temporary uses on vacant land may be further extended beyond the three [year] maximum by City Commission.”

The Wynwood Yard is a hub of food and culture at 56 NW 29th St. in the heart of Wynwood.

This pop-up entrepreneurial hub introduces food, drink, design and more in an outdoor setting in the ever-evolving neighborhood.

The collection of business start-ups describes itself this way: “The food yard, eventsand-live-music venue and allday hangout space brings locals a smorgasbord of food, fitness, music and other cultural activities.”

The site cumulatively employs about 120 people, and runs about 30 events in the space weekly.

Homestead market searches for a distinguishable advantage

By Marcus Lim

The interest in Homestead commercial real estate was always about the availability of land and favorable pricing. One of the county’s oldest suburbs experienced an uptick in demand in 2015 and 2016, but this year has not seen the same spark, with some real estate agents saying that nothing distinguishable about the area makes it more special than other cities.

A CoStar report, which has a full inventory report on commercial real estate transactions in an area, showed that total Homestead commercial sales from January to December 2017 were around $13.8 million in 20 sales, with one currently under contract. In 2016 there was nearly double the number of transactions at 38, totaling $50 million.

The current commercial rental pricing trend is $15 per square foot, an appealing factor for the past few years. In compari-

son, a restaurant in Brickell would pay $100 per square foot and in a suburban area such as Kendall or Coral Gables would pay $60 to $70.

However, currently there’s no particularly strong demand for Homestead. Brad Kuskin, managing agent of KW Commercial, listed various reasons why this was the case that involved Homestead being far away from other important locations and lacking a special factor.

“There is nothing wrong with Homestead, it is a great place, but nothing extraordinary,” Mr. Kuskin said. “Tenants would rather pay twice as much rent and be close to everything. And even though land is cheaper, the construction costs will still be the same.”

There has always been an interest in Homestead, and with a lot of turnover, according to Mr. Kuskin. The development has been consistent but there’s been no spike. The report showed that most

Homestead commercial deals in the past two years were by fast food chains, restaurants and shopping plazas, where the biggest sale was a Winn Dixie shopping center for $9 million.

“If businesses want to build a headquarters, it is at a low price, but truthfully, there are other places that are more affordable and are in equal demand,” Mr. Kuskin said.

Arthur “AJ” Meyer, vice president of business development at ANF Group, a construction company that also does its own development projects, particularly in retail, said Homestead’s market will always see products but has yet Arthur Meyer to find a feature that makes the suburban area a definite pick for companies.

“The surrounding area has significant land opportunity and significant updates in opportunities with respect to Homestead,” Mr. Meyer said. “The question as a community is, what drives business in Homestead?… There is opportunity and Baptist is a major economic force, but really no one knows.”

Mr. Meyer, also a member of the Greater Miami Chamber of Commerce Real Estate Committee, said Homestead is doing very well on the residential side due to the affordable pricing compared to other areas.

“The cost of the land is the driving factor. What we see in the market as a whole, they are buying land specifically on the residential side,” Mr. Meyer said.

“When you look at the suburban market both in Broward and Dade, there’s not a lot of vacant land.… When you look for vacant land, they are going to the Homestead marketplace.”

WEEK OF THURSDAY, DECEMBER 28, 2017

MIAMI TODAY

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Solid Coral Gables office market heads roaring into 2018

By Catherine Lackner

The Coral Gables office market continues to be steady and reliable, observers say.

“In the big picture, Coral Gables is solid,” said Donna Abood, principal and managing director of Avison Young’s Miami operations. “It never has major shifts, because of the value of the city overall.

“In 2018, we expect a stronger first quarter than we had this year, and the second quarter will be stronger than the first, because of pent-up demand,” she said in late November. “We’re very encouraged.”

That’s not to say there’s no competition, however. Miami Central, two mixed-use buildings in the new All Aboard Florida station, is drawing strong interest, and there is speculation that Swire Properties will embark soon on the second phase of Brickell City Centre, which will include a class A office building. Miami Worldcenter will add 500,000 square feet of offices, she said. “There’s a lot of space coming on line.”

But Coral Gables has its loyalists. In addition to the city’s stock of class A product, amenities are a big draw, she said. “People really use the trolley,” which runs on Ponce de Leon Boulevard from the Douglas Metrorail Station to Southwest Eighth Street. It has the highest ridership of any trolley in Florida, experts say.

In addition, there is a good selection of restaurants and the city has recently remodeled Miracle Mile and Giralda Avenue, which is a pedestrian mall as a trial project.

Ms. Abood hailed the spring 2018 opening of 1515 Sunset Drive, the city’s first LEED platinum office building. The building, for which Coral Gables City Hall and the Biltmore Hotel were models, Ms. Abood said, will offer more than 50,000 square feet of office space and 10,000 square feet of retail and restaurant space.

“Part of it is pre-leased; the owners are going in there, but there is still space available,” she said.

“It will take some of the pressure

Photo by Cristina Sullivan

Spurring the Coral Gables market is a remodeling of Giralda Avenue into a pedestrian mall on a trial basis.

Donna Abood: strong start of year.

Mario Garcia-Serra: big advantage.

Ana-Marie Codina Barlick: balance.

away from the office market; there is never enough space. Sometimes, people are forced to go elsewhere. We want to have space so the market doesn’t stagnate.”

“My impression is that the market is good,” said Will Morrison, a JLL broker who focuses on the Coral Gables office market.

“2016 was one of the slowest years since 2008, but there’s been a huge rebound this year. Coral Gables is leading the Miami-Dade County suburban market, with about 130,000 square feet of net absorption. There is also a $10 to $15 discount [per square foot]

from downtown and Brickell.”

Firms are able to afford better space because they are downsizing offices as shared workspace and individual workstations replace offices, he said. “The trend we’re seeing across the country is that, if you can reduce your footprint, you can get into a nicer class A building with a higher rate per square foot. And in class B, there’s even more of a discount.”

When tenants choose Coral Gables, “They don’t have to deal with the traffic and the construction you find in downtown and Brickell,” Mr. Morrison said.

“There is easy access to the airport, there are great restaurants and hotels. Miracle Mile and Giralda Avenue have been redone. So you can get into more attractive space, and it’s cheaper. That’s what we’re seeing.”

“The advantages are considerable,” said Mario Garcia-Serra, a shareholder in the Gunster law firm’s environmental & land use practice group in Miami, via email.

“It has a central location, which is in close proximity to other business centers, very desirable residential areas, and the airport is key.

“The high quality of the urban environment and its enjoyable ambiance and walkability makes for a very desirable office location, as does the ease of being able to move about the downtown area via the city trolley and the recently introduced electric golf cart shuttle.

“I anticipate that Coral Gables will continue to be the strongest office market in the tri-county area and that this market demand will only be increased by the fact that it is one of the best places to live in the country,” he said.

“At the end of the third quarter of 2017, the Coral Gables submarket had an office vacancy rate of 7.4%,” he said. “This is among the lowest vacancy rates anywhere in Miami-Dade, Broward and Palm Beach counties combined.”

Some tenants are traditional, like Latin American regional headquarters, while some are new, including an increase in family home offices and financial services firms, he said.

“The mix of various uses (office, residential, retail, and entertainment) as well as the fact that so many foreign consular and trade offices are located within downtown Coral Gables, make it an especially practical place to live and work for younger as well as foreign professionals and entrepreneurs,” Mr. Garcia-Serra said.

Who’s coming to Coral Gables?

“Companies and individual that want to be within minutes of Miami International Airport and the rest of Miami,” said Ana-Marie Codina Barlick, CEO of Codina Partners, which recently opened 2020 Salzedo, a mixed-use development that includes almost 50,000 square feet of offices, nearly 7,000 square feet of retail and 213 residential rental units in a 16-story tower.

“Finding the right balance of residential, office and retail worked for us at 2020 Salzedo,” Ms. Codina Barlick said via email.

“Our office building is currently 95% leased. The apartments recently began leasing. Our location in downtown Coral Gables places us within proximity to State Road 836 and within walking distance to the rest of the city.”

All suburban office markets tighten with solid niche appeal

By Catherine Lackner

Despite stiff completion from a revitalized downtown, suburban office space is a healthy market with niche appeal, observers say.

“We are seeing all of the suburban markets tightening,” said Scott Goldstein, a principal of Scott Goldstein Avison Young.

Though each leading suburban market has its own character, what unites them is that all are close to water and, not coincidentally, prime residential real estate, he explained. Miami Beach, Coconut Grove Coral Gables and Aventura (“which is the smallest and tightest market,” he said) all have shorelines and affluent neighborhoods.

“Miami Beach has 65,000 square feet of class A space and a single-digit vacancy rate, Coconut Grove caters to creatives, and there are financial services firms there because the principals and clients live in the upscale neighborhoods nearby.”

People want to commute no longer than 45 minutes (20 would be better), Mr. Goldstein said. The situation is exacerbated by the lack

of reliable public transportation, he added.

That’s why “downtown is a soft market right now, and several buildings have large blocks of space available.”

If Brightline or Tri-Rail were to begin a commuter service along Northeastern Miami-Dade, that might convince some to come downtown, but no one can predict if or when that will happen. “If there is commuter rail, I’d be curious to see how it will be utilized,” he said. “Folks like to be work near where they live, and 24-hour cities are springing up. People want to be somewhere they don’t have to leave.”

“The Miami-Dade suburban office market continues to demonstrate strong fundamentals through 2017,” said Christopher Dubberly, vice president of Transwestern, via email. “Compared to the overall office market in Miami-Dade which experienced 349,000 square feet of positive absorption through Q3, the suburban submarkets accounted for 66% of all activity.

“When it comes to vacancy, nearly all suburban submarkets significantly outperform the core. The central business district has an overall vacancy rate of 15.7%, versus Aventura’s 6.6%,” he said.

“If vacancy is the metric, thenAventura and

Coconut Grove are the strongest, both with less than 7% vacancies,” he said. “However, these submarkets are a fraction the size of either Coral Gables or Miami Airport. The sustained trend for tenants’ flight to quality, coupled with a limited supply of suitable office product, has pushed vacancies in certain submarkets to single digits while also pressuring rents to similar high-water marks that tenants experience in the central business district.

“If we follow the capital, then it’s clear that the bets are being placed in Coral Gables (where 132,000 square feet is under construction between two projects),” Mr. Dubberly said.

“Suburban office absorption was positive 230,000 square feet through Q3 2017, and Coral Gables and Miami Airport were the primary contributors.

“With a few exceptions, in the central business district it is notoriously difficult for tenants to secure parking ratios of greater than 1 or 2 spaces per thousand square feet leased, especially considering the lack of municipal garages in Brickell. Comparatively, the suburban submarkets are able to provide ample parking, typically at no additional cost,” he said.

“As businesses continue to right-size and eliminate private offices in exchange for workstations and open environments, suburban offices remain attractive because of their ability to accommodate a denser workforce,” he said.

“Tight supply and limited development in the Miami central business district has pressured rents to record highs. As a result, tenants unwilling to trade off a class A work environment for a higher monthly cost are attracted to the suburban submarkets. Though rents have certainly increased in the suburban submarkets, the difference in per-squarefootage costs is notable relative to the central business district,” Mr. Dubberly said.

“The county’s suburban office market was strong in 2017 and it appears that this trend will continue in 2018,” said Barry Lapides, a partner in the Berger Singerman law firm who handles commercial real estate matters, via email. “One particular area that is strong is the South Miami/Dadeland market. Rents have increased and supply is tight. The product in this market is trading, as evidenced by the sale of Dadeland South Towers to an affiliate of Keystone Property Group and 9350 Financial Centre to an affiliate of Banyan Street Capital.”

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WEEK OF THURSDAY, DECEMBER 28, 2017

CocoWalk’s east side office building next piece of project

By Katya Maruri

With construction of the retail space on the western half of CocoWalk already underway, Michael Comras, president and CEO of the Comras Co., which was part of the venture that acquired CocoWalk for $88 million in 2015, anticipates construction beginning as early as 2018 on One Cocowalk, a 78,000-square-foot Class A office building, on the site’s eastern portion.

Once construction is done, Mr. Comras said, the office building will aim to appeal to media and tech companies, creative firms, financial and professional services firms, and global brands, as a way to boost Coconut Grove’s daytime population by creating a built-in customer base for retailers and restaurants.

“There is so much going on in the Grove,” Mr. Comras told Miami Today. “Right now the western portion of CocoWalk is currently being worked on, which

Office building will target media and tech companies, creative firms, global brands and multi-nationals.

will provide that area with new façades while creating vertical access to the area via stairwells and elevators.”

“What we are thinking,” he said, “is that by spring 2018 the western half will be done.”

At the same time, he told Miami

Today, “We would like to start working on the eastern portion of the CocoWalk site and start to connect the office building to the middle and western portions of the site following the completion of the western half.”

The middle portion of the new

CocoWalk, he said, will include an open-air plaza serving as a physical extension of Coconut Grove’s pedestrian streetscape featuring café seating, water features and native foliage.

As for the turnover, he said, it would be about 14-16 months

following completion of the western portion, which would leave enough time to have everything completed by the holidays in 2019.

However, he said, until then all efforts will go toward attracting new tenants and growing the retail aspect of the new CocoWalk site.

“We are really on a mission to re-merchandise the Grove,” Mr. Comras said, “and are looking to cater to the current individuals who live, work and play in the Grove.”

One way of achieving this, he said, is by transforming CocoWalk into a place where everyone can hang out all in one place by adding the essential retail mix and businesses that would make the area a mainstay for visitors and residents.

“We want it to be a place,” he said, “where people can go out and have everything all in one place instead of having to travel to different areas to meet their needs.”

Mixed-use tower gets OK with conditions to join two others

By John Charles Robbins

Better but still lacking. That was the consensus of a City of Miami review board evaluating the renderings and floor plans for a mixed-use tower to be called Miami Plaza.

The Urban Development Review Board on Dec. 20 was looking over fresh documents on the project, deferred with the developer’s approval in November.

Nearly all board members said the redrawn plans were an improvement from November but still incomplete.

On a split vote of 3-to-2, the board recommended approval of the project with conditions.

This came after board member Dean Lewis made a motion to deny the project due to floor plans inconsistent to elevations shown, but the motion was not seconded and died.

Mr. Lewis and board member Anthony Tzamtzis were the “no” votes on the motion to approve with conditions.

The review board makes recommendations to the planning department and planning director.

Miami Plaza is the third of three major projects bringing new apartments and commercial-retail space to Miami’s Omni neighborhood.

The other two projects rising near the School Board Metromover Station are Square Station and Art Plaza. All three are from The Melo Group, a family development company commended for building more affordable housing.

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 is to have 14% dedicated workforce housing.

At their November meeting, board members said the plans for Miami Plaza appeared unfinished and incomplete, and some were troubled by the size, calling it “very

Miami Plaza looking south down Miami Place , showing main entrance, Square Station and Art Plaza.

massive.” Some complained about the color of glass being proposed for the tower, worrying it was too blue.

Board members also expressed a desire to see an overall plan for the area showing how the new towers differ from one another and how they relate to one another.

The project was deferred to give architects time to address those issues.

Attorney Iris Escarra, on behalf of Melo affiliates building the mixed-use towers, said the company intends to breathe new life into an area that has been underutilized for years, peppered with vacant lots and old parking lots.

As she did in November, Ms. Escarra again spoke of the overall plan for the neighborhood, looking at each project’s design elements viewed in “the big picture perspective.”

Each of the three towers is distinguished through different texture and design elements, yet the overall plan will offer connectivity for the growing area, she told the board.

She presented new architectural renderings of Miami Plaza, some showing Square Station and Art

Plaza in the distance.

New renderings show the public plaza portion of Miami Plaza, and enhanced public spaces around the building and the Metromover station just across the street.

“The plazas are open and large, and not all the same,” she said. Wide pathways are a big component and will serve to “really activate” the area, making the Metromover station “almost a destination” itself because of the new adjacent uses and activities, she said.

Ms. Escarra also showed board members a sample of the glass planned for the tower, saying it isn’t deep blue but a lighter blue-green.

Fresh plans for the December meeting also offered more detailed labels identifying architectural intent of components, she said.

New renderings showed how designers tried to break up the mass of Miami Plaza’s tower by playing with the volume of balconies; staggering the pattern of the balconies and having different lengths and widths.

Ernesto Morales, with itec design, said the firm thought the board’s comments about break-

ing up the mass of the structure was good advice and adjusted the balcony size and placement.

That’s fine, said board member Neil Hall, but the problem is the changes weren’t on the floor plans.

Mr. Morales said they weren’t to that stage yet but, “we will update the floor plans.”

Mr. Lewis said the developer has “quite an opportunity” to make a major urban impact with its three projects and he isn’t convinced the developer is taking full advantage of that opportunity.

In regard to Miami Plaza, Mr. Lewis said he has an issue with the way the parking pedestal connects to the tower.

“It’s kind of forced together,” he said.

Ms. Escarra said the idea was to try and hide the parking podium or pedestal by tucking it behind the tower.

New board member Ignacio Permuy thanked Ms. Escarra and Mr. Morales for a very thorough presentation.

“This is significantly better than the one presented a few weeks ago,” he said. “You’ve done a lot of work and it shows.”

Mr. Hall and Mr. Lewis said they still wanted to see more in the presentation to spell out how the three projects will relate to one another.

“It’s important to see how they are related, as urban space and architecture,” Mr. Hall said.

Mr. Lewis initially made a motion to continue the matter for another month so the applicant could “clean up” the plans, but planning staff reminded the board any deferral has to be with the consent of the applicant.

It was then that Mr. Lewis made the motion to deny, which was not supported.

Board member Gerald Marston made a motion to recommend approval with conditions; present the planning director with coordinated plans where elevations match the floor plans, and provide a model of the area showing the context and relationship of the three towers.

The developer is asking for seven waivers on Miami Plaza, including: up to a 30% reduction in required parking spaces, allowed by code for sites near public transit; a decrease to the minimum drive aisle width from 23 feet to 22; and allow up to 10% increase of the maximum floorplate above the eighth story from 15,000 square feet to 15,954.

The board recommended approval of Art Plaza in November.

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.

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 a percentage of dwelling units in each building for workforce housing.

WEEK OF THURSDAY, DECEMBER 28, 2017

TODAY’S NEWS

MIAMI TODAY

17

34 hotel projects with 5,900 rooms ready to rise in 2018

By Marcus Lim

More hotels seem destined to rise in Miami and room supply growth isn’t slowing, according to STR, a data and analytics specialist, in a report giving Miami’s hotel industry a “healthy performance” rating.

Despite the growth, it’s still a decline from prior years, but an expert said this isn’t serious cause for concern.

The national average growth in supply of hotel rooms is 2%. Miami’s supply growth is roughly double that, a projected 3.9% for 2018. But the measure by STR of the average rate paid for rooms sold – calculated by dividing room revenue by rooms sold – is down 2.2%, a similar number to last year’s. In 2015, the average daily rate rose 5.7%.

STR reports on rooms available, rooms sold and net room revenue on a monthly, weekly and daily basis. Also reported are details on existing hotel supply and new hotel development for the market.

Miami was always considered a very “hot market,” and from 2013 to 2015 it saw a strong average daily rate. In 2013

room rates rose 7% and in 2014 6.2%.

The past two years brought negatives as average daily rates dipped, but Jan Freitag, senior vice president at STR, said it isn’t a major concern since Miami is a crowded market, hotels take anywhere from 18 to 24 months to come to fruition and performance data will slow down.

The fact that in Miami everyone builds hotels, crowding the market, is a positive indication despite the decline, he said.

“No one is panicking, but the [added] hotel rooms will make it harder for new hotels to come,” Mr. Freitag said.

The current Miami pipeline report shows 34 hotel projects in the final phases, with construction of 5,900 hotel rooms expected to start within four months. Currently, 19 projects are in construction, with 2,872 rooms on the way.

The report was recorded from January to November. Last year at this time only 28 hotel projects with 5,133 rooms were in the final phase and 23 projects and 3,199 were in construction.

The numbers for Miami are considered strong, slightly higher than average na-

tionwide. New York leads the pack with 12,702 hotel rooms in construction. Next is Dallas at 6,685.

Mr. Freitag pointed to Miami’s strong business ties and vacation opportunities as an alluring reason for developers to build hotels here, which also affects the occupancy rate in Miami. In 2016, occupancies were at 78% but have declined to 76.9% this year.

“Why do people build in Miami? It’s centrally located from the Caribbean and South America, it’s easy to get to, has great weather. It is a very attractive package,” Mr. Freitag said. “That being said, the number of rooms added have certainly hurt the occupancies.”

Hosting world-class events does help drive up occupancy and revenue too.

In the first week of December alone, among the top 25 markets, Miami had the second-highest rise in occupancy, from 76.3% to 86.2%, and the largest increase in STR’s rating of revenue per available room, in which total room revenue is divided by total available rooms, which hit $234.96.

The hotel industry in general is “firing on all cylinders” in which more rooms are available, more are sold, hoteliers made more revenue, had the highest average daily rate, highest occupancy and revenue per available room ever. The industry is at a record high this year in all six key performance indicator.

For Miami in particular, despite some decline in numbers, Mr. Freitag sees nothing to worry about. The occupancy is in the 70th percentile, and even with all the rooms being added, Miami is selling three out of four rooms every night, “a very healthy performance,” he said. While room rates are declining, he said, they average $183 in Miami. The national average is $127.

“Miami is a very attractive market.

We expect good performance going forward,” Mr. Freitag said. “We expect the supply and demand growth are going to be in equilibrium, they will cancel each other and occupancies will be flat to slightly down, but room rate growth will continue to be healthy – not great, but fine.”

Coveted international air passengers pull ahead of last year The number of international passengers traveling through Miami International Airport this year is slightly ahead of the same period in 2016, most recent data from the Miami-Dade Aviation Department show.

Those international passengers are coveted in most areas of business, from real estate to retail sales, and in restaurants and hotels. Those who stay in Miami tend to stay longer and spend more per day.

The gain in total international passengers is minor, less than a full percentage point for the first 10 months of the year, as just under 17.8 million international passengers have gone through the airport versus 17.6 million in the same 10 months of 2016, but it is a gain. Domestic passengers in the same period decreased just under 4%, to total just over 18.4 million persons.

In both international and domestic travel, more air passengers in October arrived International overnight visitors spend more on meals, more on shopping and rental cars, and stay longer. in Miami than departed, as last year’s spending shows the international overnight visitor 874,318 international passen- gers landed here.

A Greater Miami Conven- added value to the community spends $132 daily on meals gers stepped out of planes here and 922,537 domestic passen- tion & Visitors Bureau study of of international passengers. The on average versus $120 for a

domestic passenger; spends far more in shopping, $258 versus $90 for domestic overnight visitors; is 7% more likely to rent a car than a domestic passenger; and stays an average of 6.9 days versus 5.2 days here for a domestic overnight visitor.

That all adds up to a large spending gap. The domestic overnight visitor’s average bill here for everything is $1,207.66 for the stay, while the international visitor spends $2,062.35, the bureau’s study found.

And, as the bureau’s study made clear, international overnight visitors were just behind domestic totals for all of 2016, 7.6 million international to 8.1 million domestic visitors, but the international portion was increasing faster 1.6% more than 2015 international to 1.4% increase in domestic overnight visitors.

In all, 7,952 international flights landed at Miami International Airport in October and 7,328 departed from Miami International. The year so far has seen 157,338 total international commercial flights here, down 2.45% from last year’s 161,295.

After Irma, a marketing push led to strong visitor numbers

By Katya Maruri

The Greater Miami Convention & Visitors Bureau, which launched regional, national and international campaigns as part of its efforts to attract visitors post Hurricane Irma, has seen great success in maintaining hotel Rolando Aedo occupancy rates following the storm as a result of its promotions and marketing, says Rolando Aedo, bureau executive vice president and chief marketing officer.

One marketing effort in particular that helped let visitors know that Miami was open for business post Hurricane Irma, Mr. Aedo said, was #MiamiNow, a regional promotion launched Sept. 19 that extended popular local programs (Miami

Spice, Miami Spa, Miami Hotel, Miami Attractions, Miami Museums and Shop Miami Month) until Oct. 31.

The programs were designed to attract patrons during the summer, when business is usually slow, by offering special deals and discounts.

However, during and after the hurricane, Mr. Aedo said, #MiamiNow really helped Miami’s tourism industry bounce back fairly quickly.

“Hurricane Irma definitely impacted Miami’s tourism industry,” Mr. Aedo said. “From a county perspective, hotel occupancy rates during the week of the storm were down 20%.”

“The week after that,” he said, “occupancy rates were down 21%.”

As a result, Mr. Aedo said, “we decided to hit the ground running days after the hurricane by dedicating a lot of time, effort and resources to #MiamiNow to help get the word out there that Miami

is open for business.”

Shortly after #MiamiNow was put into effect, Mr. Aedo told Miami Today, “we began to see an immediate recovery.”

“After a decline of 20% and 21%,” he said, “we really saw hotel occupancy rates increase fairly quickly.”

During the first week of October, he said, occupancy rates increased 27%, followed by 16% during the second week of October and 11% during the fourth week of October.

However, he said, “this year’s numbers are somewhat skewed by last year’s numbers due to Hurricane Matthew.”

“Even through Hurricane Matthew didn’t really impact Miami head on,” he said, “perceptually it impacted the city’s tourism industry in regards to hotel occupancy rates.”

However, he told Miami Today, despite Hurricane Matthew and Hurricane Irma being almost one year apart, Miami’s tourism industry has continued to grow.

“An important factor that helped the tourism industry bounce back as quickly as it did,” Mr. Aedo said, “was the hotels’ ability to host meetings and conventions throughout the city.”

“As soon as the hurricane passed,” Mr. Aedo said, “we set up shop at the Loews Hotel in Miami Beach until our Brickell offices were given the all clear and made phone calls to all the meeting coordinators and event planners that had scheduled meetings and conventions during and after Hurricane Irma.”

“We made it a point,” he said “to reach out to all of the key players involved in bringing meetings and conventions to the city and explained to them through the #MiamiNow promotion that Miami is in fact open for business.”

As a result, he said, “we have had an amazing November and December in regards to tourism and hope to carry that momentum into 2018.”

WEEK OF THURSDAY, DECEMBER 28, 2017

MIAMI TODAY

TODAY’S NEWS

23

Brightline works with federal agency for OK to run trains The startup luxury Brightline rail service to link Miami with West Palm Beach is still standing in the station, the company announced Friday.

In a news release, the company says it still doesn’t have federal permission to start service.

“The company continues working toward operational readiness with the Federal Railroad Administration for the launch of introductory service between West Palm Beach and Fort Lauderdale and will release details soon,” the rail line said in a final sentence at the end of a press release announcing a bond allocation and water permits for a later part of the new rail line.

Announcements continue to put off the start of service, which was to have come months ago.

The eventual plan is a rail link between Miami and Orlando. The first leg is now to be from Fort Lauderdale to West Palm Beach, where simulated service began this month without passengers, later tying in Miami. Then a major second phase to Orlando is to begin.

Last week, the Florida Development Finance Corp. cancelled an emergency meeting that had been called to approve $1.15 billion of private activity bonds for the company’s parent, All Aboard Florida, for the passenger train project. “The meeting has been cancelled in light of the tax reform package that was approved,” said Bill Spivey, the finance corporation’s executive secretary, referring to congressional agreement to preserve the tax status of private activity bonds.

Those bonds were to finance construction on the leg of the rail line from West Palm Beach to Orlando.

The Florida Development Finance Corp. is a financing unit

“The company continues to work toward operational readiness... for the launch,” its news release said.

Dave Howard: bond issue closed.

created in 1993 to help businesses and nonprofit groups finance capital projects that promote economic development. The finance corporation is a conduit, issuing the bonds on behalf of the borrowers.

All Aboard Florida announced Friday that the US Department of Transportation had approved the $1.15 billion private activity bond allocation, and that the railroad had secured the final two South Florida Water Management District permits needed to complete the segment of the line between Orlando and Cocoa in Brevard County.

That announcement said construction on the Orlando-West Palm Beach segment is to begin “in early 2018.”

“In another major step forward for Brightline’s Phase 2 extension to Orlando, [the US Department of Transportation] approved a $1.15 billion private activity bond allocation,” said Dave Howard, Brightlone’s CEO, in the press release.

“After a successful $600 million

Real estate costs and revenues are not part of the Brightline borrowing scenario from Fitch.

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

“Brightline is still analyzing all financing options for Phase 2, including a Railroad Rehabilitation and Improvement Financing loan,” the company’s statement Friday said. “With all federal approvals in place, Brightline is finalizing the engineering and design for the rail infrastructure.”

Also, the company said, “Brightline is working on the installation of a new signal system and Positive Train Control (PTC) for the entire system between Miami and Orlando. PTC will be in place between Miami and West Palm Beach in 2018 and will be operational along the entire 235-mile route when the extension to Orlando opens.”

[private activity bond] closing this week, we are pleased to have this financing option available.”

The $600 million bond issue received a non-investment grade rating on revenue bonds issued by the Florida Development Finance Corp. on behalf of the line’s owners.

Fitch Ratings, which was hired by owner All Aboard Florida to rate the bonds, 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.

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 ramp-up period before riders stabilize at 2.9 million per year in 2020, starting at 1.1 million in 2018 and increasing to about 2.3 million in 2019.

Fitch’s own analysis said 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 noted that the fare structure for the rail line 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 Mr. Howard has said only that fares would be heavily discounted at the outset.

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.

Hurricane stalls sister zoo pairings, Zoo Miami returns to Panama plan

F ilming

By Katya Maruri

After being shut down 37 days by Hurricane Irma, Zoo Miami’s initiative to pair with sister zoos in the Bahamas, Colombia and Jamaica has stalled.

The proposal, which originated four months ago and was championed by Miami-Dade Mayor Carlos Giménez, cleared the county commission in April.

However, due to the extensive impact of Hurricane Irma, Zoo Miami officials are looking to pair with the Summit Zoo and Botanical Gardens in Panama City, Panama, as the first sister zoo due to Zoo Miami’s long relationship with the Panamanian zoo.

“Unfortunately, with the focus by staff on hurricane recovery and repair efforts, we have not been able to focus on this new initiative,” Cindy Castelblanco, a spokesperson for Zoo Miami, said via email.

However, the plan moving forward, she said, is to execute Zoo Miami’s first sister zoo pairing with the nation of Panama due to the long relationship the zoo has had through Ron Magill, the zoo’s communications and media relations director, and the Harpy Eagle conservation project.

As a result, the zoo, which

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A pairing with Summit Municipal Park Zoo focuses on Harpy Eagle.

spearheaded an effort to design and build a state-of-the-art Harpy Eagle Center at the Summit Zoo and Gardens just outside of Panama City, will continue to work with the Panamanian zoo to help educate visitors about the harpy eagle and the tropical forest in which it lives.

Previously, Zoo Miami attempted to partner with the Panamanian zoo and botanical gardens in 2001 but was unable to formalize any agreement.

As for the other three potential sister zoo pairings, Ms. Castelblanco said, they are still in the works.

Notice Under Fictitious Name Law Pursuant to Section 865.09, Florida Statutes NOTICE IS HEREBY GIVEN that the undersigned, desiring to engage in business under the fictitious name of CHEZ GEORGES, located at 10990 Biscayne Boulevard, #13, in the County of Miami-Dade, in the City of Miami, Florida, 33161, intends to register the said name with the Division of Corporations of the Florida Department of State, Tallahassee, Florida.

Dated at Miami, Florida, this 21st Day of December, 2017.

CORDON BLEU LLC Owner

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