Miami Today: Week of Thursday, February 1, 2018 by Miami Today

TODAY’S NEWS

WEEK OF THURSDAY, FEBRUARY 1, 2018

MIAMI TODAY

Small Florida firms key to Hong Kong mission By Sara Marino

For the first time in over a decade, the state economic development agency Enterprise Florida will send a trade mission to Hong Kong and Guangzhou, China. “It’s (China) the largest market in the world and we’ve chosen to do this mission to Hong Kong, which is recognized worldwide as the gateway into China and Southeast Asia, which is one of the largest trading centers in the world,” said Manny Mencia, Coral Gables-based vice president of international trade and development for Enterprise Florida. “In fact, I used to like to call Miami the Hong Kong of the Western Hemisphere.”

The export matchmaking sales mission June 1-9 will focus on areas such as energy efficiency, clean technology, healthcare and e-commerce. “We thought doing a mission to Hong Kong would be a great idea, and then we’re combining it with a side trip to Guangzhou, which is one of the two largest business centers in China,” he said. “It’s also a nice combination from the standpoint that Guangzhou and Hong Kong are only about two hours apart.” The aim of the mission is to get 10 to 15 small to medium-sized Florida companies to collaborate with companies abroad. “It’s a great opportunity because China is a great trading

partner for both Florida and the United States,” Mr. Mencia said. “China is actually Florida’s second-largest trading partner after Brazil.” In terms of the monetary benefits of this mission, Mr. Mencia sees an expansion opportunity. “If you look at our exports to China, we’re already selling $1.2 billion to China and this is 2016 data, which is the latest we have available,” Mr. Mencia said. “The total data for 2017 will not be available until March.” Along with financial reasons, Enterprise Florida points to other reasons for this mission to succeed. The possibility of having direct flights between Florida

and China and increased access to the Panama Canal could all be potential results. “We think that there’s a growth opportunity, not only because of the economy but also because of the expansion of the Panama Canal,” Mr. Mencia said. “Florida has an increased opportunity to expand trade and job opportunity with China.” In terms of Hong Kong’s current market, Mr. Mencia says it is “excellent.” “Hong Kong is a logical plan for entering the Chinese market because it’s one of the great trading service centers of the world,” he said, “and then if you combine that with Guangzhou, which is one

Growth opportunity: Manny Mencia.

of the largest cities in the world, it’s a combination that I feel offers a lot of opportunity.” Details: (305) 808-3672 or mmencia@enterpriseflorida.com

No monkeying around: zoo targets million By Katya Maruri

Zoo Miami, which ended its fiscal year Sept. 30 with 932,000 visitors, anticipates meeting its 1 million visitor goal in the current fiscal year, according to Director Carol Kruse. “We ended the year with 932,000 visitors, which beat out last year’s numbers by 28,000,” she said. “However, we were derailed on meeting our 1 million visitor mark last fiscal year due to being closed for 37 days during the end of September into half of October due to Hurricane Irma.” However, she said, “despite being closed for that amount of time we had a very strong December, with over 118,000 visitors due to this year’s Zoo Lights event.” Photo by Marlene Quaroni As a result, Ms. Kruse said, “we plan to have an Florida Mission Everglades “a big hit with visitors,” said Carol Kruse. even bigger and better Zoo Lights this year with

exciting new features.” As for other ways the Zoo plans to attract more visitors, she said, “our Florida Mission Everglades exhibit, which opened last December, has been a big hit with visitors.” The exhibit, she said, “offers a unique platform to connect visitors and residents to local wildlife and nature right here in our own backyard, with the hope of sparking visitors’ curiosity to go visit Everglades National Park to see the real thing.” In addition, she said, the zoo will run a new TV commercial starting next week on local network TV, cable and WLRN for one month to highlight the zoo’s interactive encounters such as “Feed the Giraffes.” As for her overall goal for the Zoo, Ms. Kruse said, “We hope to hit the 1 million mark and foresee positive things for Zoo Miami’s future moving forward.”

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WEEK OF THURSDAY, FEBRUARY 1, 2018

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Partners float a heads-up idea for Miami-to-Beach transit A display at a transportation summit last week laid out a tempting and innovative solution to unraveling MiamiDade’s tangle of traffic woes. After a twoteam competition for cutting-edge solutions days earlier had unveiled Michael Lewis a phone app to reward carpooling and transit use, a four-team consortium offered its own answer: aerial cable cars linking Miami to Miami Beach. At least it’s new. New to Miami, that is. The Miami Aerial Transit Partners team that is promoting the project tells us about 1,000 such systems float overhead globally. One is the only US public transit system that actually turns a profit: New York’s Roosevelt Island Tramway. One in La Paz, Bolivia, carries 40 million people a year, far more than Miami’s Metrorail does. The team’s idea is a public-private partnership to run aerial cable cars from downtown Miami to Miami Beach, a system that they say would cost at most $350 million and be up in three years with a leg from downtown to Watson Island, with the second phase soon to follow. One hundred gondolas would glide overhead, one arriving every 30 seconds at each station so there’d be no wait. The theory is that tourists would flock to gondolas, as they do in New York and elsewhere, but extending the line to Miami Beach would lure commuters too. Promoters envision fares equal to county transit passes for regulars but $12.50 to $15 per ride for onetime riders. Profits would flow in part from stations that offer more than just tickets. Naming rights for gondolas, stations and the system itself would help with costs – the team says an aerial cable system in London gets $5.5 million a year from naming rights alone. The team plans an unsolicited offer-

Other human beings make carpooling unappealing

Do you realize what a burden it is to deal with other human beings, their personalities, idiosyncrasies, sicknesses, and outright potential physical danger (not a word about personal security in this article)? Just slightly better than horse manure about a century ago. That’s why carpooling and mass transit will never have mass appeal, unless, in the case of mass transit, it is overwhelmingly convenient (e.g. New York City and London). These inexpensive short-term proposals could help a bit at the margins. But just as the private automobile replaced the horse, long-term solutions will come through technology such as driverless cars or magnetic elevation

New York’s Roosevelt Island Tramway is the only profitable US public transit system.

ing of a public-private partnership to the county to provide Miami-Miami Beach transit in the Smart plan that is seeking transit lines in six corridors. If chosen, the team would still face tall hurdles. Travel over water creates plenty of environmental and permitting issues. Plus, the team is cash short. It plans to approach those who’d be stakeholders to help. Stakeholders abound. The first phase would run from Miami Central Station – home of the future Brightline rail line – to Bayside Marketplace and the AmericanAirlines Arena, then to the Adrienne Arsht Center for the Performing Arts and end up near Jungle Island on Watson Island. The later phase from Watson Island would follow the MacArthur Causeway to Fifth Street and Alton Road in Miami Beach – unfortunately leaving a vital gap to go north to the Miami Beach Convention Center. The plan as is, however, would provide long-sought transit from Miami to Miami Beach at half or less the cost of any transit mode except Bus Rapid Transit, which is cost effective but would eat up already crowded causeway lanes. Imagine possible private stakeholders. The team has spoken with Jungle Island, the Genting gambling consortium that plans hotels and resorts beside the Arsht Center and many others. The new railroad, the museums along

the route, Bayside, the arena, the Arsht and more would benefit. Whether they’d open their wallets or be free riders is to be seen. Then comes an investor pool. “It is anticipated that revenue from commuter fares, tourism riders and real estate development at the stations will be substantial and will repay the initial capital investment and annual [operating and maintenance] costs, and return a profit to the investors,” a brochures says. We shouldn’t overlook this transit option. Entry cost is low, construction is fast (promoters say they once set 50 towers for a ski cable system overnight via helicopters; try doing that for Metrorail), there’s no land or route to buy, and 100 employees can run it all – with no county transit drivers to call in sick. It even saves energy – the 100-gondola system would use one 400-horsepower motor plus solar panels on each gondola. As for eating up valuable causeway, developers say they’d need only 50 square feet every 500 feet for cable towers. “Bus Rapid Transit takes away lanes of traffic,” said partner Roger Gardner, who says he’s worked with hundreds of aerial transit systems. It’s all great with every advantage – on paper. Construction, however, would be fast only after cutting a multi-way deal with

How to Write

er than building a taller bridge or digging a tunnel. DC Copeland

Letters for publication may be sent to the Editor, Miami Today, 2000 S. Dixie Hwy, Suite 100, Miami, FL 33133 or e-mail to letters@miamitodaynews.com. Letters may be condensed for space.

Even with new transit tax, key issue is obsolescence

The important requirement, regardless of trains that offer speed AND personal se- new taxes to pay for it, is to be sure the syscurity and privacy. tem is not obsolete before it is constructed. Jose Sopla All the new train rails should be elevated, as is the present system. Building tracks at grade will not solve the problem permanently. If it costs twice as much to build an elevated system, then build half Here’s an idea: why not make it a as much now. Whatever is constructed should be a law that recreational boats that require the Brickell Bridge to go up aren’t al- permanent solution. Any tracks built at lowed west of the bridge? That will grade will have to be demolished at some mean fewer openings and smooth- point in the future. Charles Culpepper er traffic flow. Plus, it’s a lot cheap-

Outlaw recreational craft that make the bridges rise

government agencies, financial partners and sponsors, plus after getting all the permits. As the Wall Street Journal noted Friday, government permitting for infrastructure averages 4.7 years – and involving Biscayne Bay, a city-owned island and downtown Miami might stretch that out. Erecting the system itself, the partners say, would take at most two years, including fabricating every gondola and the cables in Europe and shipping them here, because nobody in the US makes either. It’s a European business. But if it worked, think of the benefits. Traffic is piling up fast on the causeway where gondolas would flow, says Jimmy Morales, Miami Beach city manager, who two years ago noted that the MacArthur traffic had hit 95,000 cars a day, up 7% in two years and growing. We calculate that 10- to 15-passenger gondolas on one version of the system could carry 40,000 people a day, 42% of all that traffic. The larger 30-person gondola version could haul everyone who now drives the route and then some. If that’s not what the Smart plan of six transit legs is meant to do, what is? We hold no brief for aerial transit. If you can spend less and more quickly bring real mass transit to link the mainland and Miami Beach, go to it. But gondolas would no doubt be picturesque – far more than a fast bus. That would create a tourist attraction. And while the 30-minute glide from Miami’s new rail station to Miami Beach wouldn’t be breathtaking speed, there’d be no traffic delays – or, needless to say, as many delays for everyone else in cars or buses along the causeway. Pitfalls lurk along the route to aerial transit, and it couldn’t help much of the county, but it’s a potentially elegant solution to crossing water for large numbers of people with no waits. Whether the Miami Aerial Transit Partners are the team to run the system we can’t say. But they’ve had roles in hundreds of them, which in the US may make them the most experienced group around. Just as carpooling is sensible to open up our roads, our Transportation Planning Organization – which several years ago seriously studied aerial gondolas – should look at them again as a slice of our transit solutions pie. They’d certainly be taking the high road.

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TODAY’S NEWS

WEEK OF THURSDAY, FEBRUARY 1, 2018

MIAMI TODAY

688 rentals on river bend get boost, due to rise in 10 months

By John Charles Robbins

The plan to build nearly 700 apartments on vacant land in East Little Havana near a bend in the Miami River has garnered approval from a city review board. Mast Capital hopes to have a groundbreaking within 10 months on the large mixed-use residential project to be called Miami River Walk. The city’s Urban Development Review Board last week recommended approval of the project, with a couple of suggestions to the developer’s team. The project includes about 688 residences in two buildings, with parking for at least 780 vehicles, and a modest corner of commercial/retail space of 2,795 square feet. And while the proposed development is large, coming in at about 945,239 square feet, it’s less imposing than a previous project approved for the site but never constructed. The 6.3-acre site at 1001 NW Seventh St. is on the south bank of the river, just east of the Northwest 12th Avenue Bridge, and Spring Garden is across the river on the north. The city approved more than 740 dwellings in two 27-story residential towers for the site about 15 years ago. Acompany called RoyalAtlantic got a special use permit to build the sprawling project and marketed it as Rio Miami, but it was never built. Today, Mast Capital intends to build two eight-story mixed-use buildings. The building on the west is planned at 343 dwellings and the building on the east 345 units. A site plan by Corwil Architects shows the project coming in two phases, with the west building rising first. “We are leaving both density and intensity on the table,” Carlos Lago, an attorney for the developer, told the board. He said the project will include more than 1,000 linear feet of waterfront improvements including a new seawall and an extension of the public riverwalk, with landscaping, lighting and seating. Mr. Lago said the layout of the buildings will include four connector points for public access to the river. Each building is to have an internal seven-story, 400-vehicle garage. The zoning code requires 1,125 parking spaces, but the developer is seeking a waiver of up to 30%, allowed for projects near public transit. The project is to have more than 20,000 square feet of amenities, including two swimming pools and courtyards, a business center, game room, fitness center, and 1,000-square-foot theater. Miami River Walk will offer rental units from studios up to three bedrooms. The architect told the review board the design will have a “marine feel,” with lines hinting at the silhouette of ships. Some board members liked that idea and encouraged even more nautical accents to the project, from designing balconies with the flair used on cruise ships to maritime flagpoles in the courtyards and more. Board member Gerald Marston asked if there were plans for dock-

The 6.3-acre site of Miami River Walk is just east of the Northwest 12th Avenue Bridge. Spring Garden sits across the river to the north.

age along the river’s edge, or tie-ups for recreational boaters. Mr. Lago said the developer researched the history of the site and found no permitted dockage or marine uses and has no plans to seek marine operating permits from the county. Mr. Marston and other board members suggested they pursue that use, for pleasure boaters to be able to tie up to cleats on the new seawall. “It would be a wonderful enhancement to the riverwalk,” Mr. Marston said. In December, the Miami River Commission recommended approval of the Miami River Walk project with several conditions, and the first deals with marine operating permits. The condition says if the developer-owner ever does seek a marine operating permit for that site, it must present the application to the river commission. Board member Dean Lewis said he wanted more variety in the design, and perhaps a different layout for the parking levels and courtyards. Board member Ignacio Permuy had a different view, saying he liked how the mass of the buildings was broken up by design elements. “It’s going to be a great addition to this area,” he said. The plan includes public pathways to the riverfront from the on-road greenway on the west and east side yards. On the west, the site abuts MiamiDade County land that’s leased to New York fashion designer Naeem Khan, who plans a design studio and vocational school of fashion there, along with a new section of improved public riverwalk. A connection with Mr. Khan’s site is part of another condition from the river commission. It reads, “Provide the public Riverwalk’s western seamless connection with the adjacent planned public Riverwalk continuing west along the Naeem Khan/MiamiDade County site, at the same elevation, etc., as depicted in the presented plans.” Other conditions from the river commission include: ■Communicate and coordinate with the adjacent City of Miami Fire Department and Homeland Security Facility. ■Owner shall provide a 15-foot-

wide public greenway bike/pedestrian path along the eastern boundary. The initial site plan had less than a 10-foot-wide open pathway, and river commission members lobbied for more. ■Owner shall remove a sky lounge from the project. ■Owner shall designate the enclosed areas along the promenade connecting Northwest Seventh Street to the riverwalk for noncommercial uses.

■The riverwalk must be completed prior to the issuance of a temporary certificate of occupancy, or in the event of a phased project, a temporary public riverwalk for the portion abutting the unbuilt phase shall be provided until all phases are compeleted. ■There shall be no outside alcoholic beverage sales. ■Between 11 p.m. and 7 a.m., there shall be no operation of any radio, phonograph or other me-

chanical sound-making device or instrument, or reproducing device or instrument, or in the playing of any band, orchestra, musician or group “where the noise or music is plainly audible at a distance of 100 feet from the property.” This is taken from the city noise ordinance. ■The owner or tenant shall provide actual notice of any future warrant or exception to all Spring Garden property owners abutting the river.

CITY OF MIAMI, FLORIDA NOTICE OF PUBLIC HEARING ANY PERSON WHO RECEIVES COMPENSATION, REMUNERATION OR EXPENSES FOR CON-

DUCTING LOBBYING ACTIVITIES IS REQUIRED TO REGISTER AS A LOBBYIST WITH THE CITY CLERK PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS AND COMMITTEES OR THE CITY COMMISSION. A COPY OF THE APPLICABLE ORDINANCE IS AVAILABLE IN THE OFFICE OF THE CITY CLERK (MIAMI CITY HALL), LOCATED AT 3500 PAN AMERICAN DRIVE, MIAMI, FLORIDA, 33133. AT THE SCHEDULED MEETING OF THE COMMISSION OF THE CITY OF MIAMI, FLORIDA, TO BE HELD ON THURSDAY, FEBRUARY 08, 2018 AT 9:00 A.M., IN ITS CHAMBERS AT CITY HALL, 3500 PAN AMERICAN DRIVE, THE MIAMI CITY COMMISSION WILL CONSIDER THE FOLLOWING ITEM RELATED TO THE REGULAR AGENDA: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, ACCEPTING THE PLAT ENTITLED “MUSEUM SUBDIVISION”, A REPLAT IN THE CITY OF MIAMI, SUBJECT TO ALL OF THE CONDITIONS OF THE PLAT AND STREET COMMITTEE AND THE PROVISIONS CONTAINED IN CITY CODE SECTION 55-8, AND ACCEPTING THE DEDICATIONS SHOWN ON SAID PLAT, LOCATED ON THE WEST SIDE OF NE 1 AVENUE, BETWEEN NE 40 STREET AND NE 41 STREET, AUTHORIZING AND DIRECTING THE CITY MANAGER AND CITY CLERK TO EXECUTE SAID PLAT; AND PROVIDING FOR THE RECORDATION OF SAID PLAT IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA. Copies of the proposed Resolution are available for review at the Public Works Department, Survey Section of the Administration Division, located at 444 SW 2nd Avenue, 7th Floor, during regular working hours. Phone 305-416-1232. The Miami City Commission requests all interested parties be present or represented at the meeting and may be heard with respect to any proposition before the City Commission in which the City Commission may take action. Should any person desire to appeal any decision of the City Commission with respect to any matter to be considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made including all testimony and evidence upon which any appeal may be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice) no later than five (5) business days prior to the proceeding. TTY users may call via 711 (Florida Relay Service) no later than five (5) business days prior to the proceeding.

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Todd B. Hannon City Clerk

MIAMI TODAY

WEEK OF THURSDAY, FEBRUARY 1, 2018

Financial Trends Law changes pending in Washington may unleash banks By Rebecca San Juan

An abundance of regulations and consolidations leaves many banks hanging by a thread. But new legislation, technology, and population growth may help banks turn a new leaf. Bankers should pay close attention to the Financial Choice Act, which passed the House in June and will be addressed by Congress. The bill includes several changes such as diminishing the authority of the Consumer Financial Protection Bureau and eliminating the Volcker Rule. Chairman for the Miami Finance Forum Gregory Santin says these two modifications carry the most weight for Miami and the state at large. The dialing down of regulations can lead to a healthier economy and banking sector. Gunster attorney Greg Bader said, “Banks have been heavily regulated. The DoddFrank Act put in a lot of additional burden on banks and their compliance departments, and so getting some deregulation would reduce that burden and allow banks to more freely generate business and compete.” Too many restrictions harms banks and consumers, Mr. Santin wrote by e-mail. “Regulation, although created to protect the general public, has an overall negative effect by creating additional expense for banks, in turn reducing their ability to invest in their business for the purposes of growth and job creation.” Florida Bankers Association President and CEO Alex Sanchez sees the lessening of bank regulations as a positive move for the local economy at large. He said, “Publix is in the business of selling food. We’re in the business of making loans and providing the capital to businesses so they can start and hire employees.” Bankers want less regulations but no one suggests returning to the conditions before 2010. Mr. Bader says modifying regulations slightly can lead to a better environment for banks to flourish while still requiring good compliance of bankers. “At some point, you have a scale of having too much [regulation] and that’s where we are now,” Mr.

Money laundering regulations dating to the 1970s have been a problem, with reports starting at $10,000.

‘Getting some deregulation would reduce that burden and allow banks to more freely generate business and compete.’

‘Regulation, although created to protect the general public, has an overall negative effect by creating additional expense for banks...’

‘We will help catch the bad guy if we notice or see anything that sounds suspicious, but we don’t want to drive away’ good clients.

Greg Bader

Gregory Santin

Alex Sanchez

Bader said. “We need some deregulation to allow the banks some breathing room so that we can get new banks and move forward with a more healthy banking sector.” Mr. Sanchez hopes for even more legislative changes and regulatory updates. He considers the Bank Secrecy Act and Anti-Money Laundering rules in particular to be problematic, especially for a city as international as Miami.

Mr. Sanchez says that the bankers association repeatedly notes that regulators need to be aware that not everything from overseas is bad. The Bank Secrecy Act and Anti-Money Laundering regulations dating to the 1970s, he says, are especially problematic for investors. For example, Mr. Sanchez says, cash transaction reports were set at $10,000, and banks still need to

submit a report to law enforcement for anyone with that amount or beyond in transactions. “We don’t want to drive that business away,” he said. “Yes, we will help catch the bad guy if we notice or see anything that sounds suspicious, but we don’t want to drive away customers that are good, credible, legitimate investors.” He says that $10,000 should not raise eyebrows and that the

cash transaction report should aim for a higher number. Politicians from both political parties support the changes, Mr. Sanchez said. “There was a bill filed by Congressman Blaine Luetkemeyer [the chairman of the House Subcommittee on Financial Institutions and Consumer Credit], so hopefully that process is on the way this year.” Another condition likely to impact bankers in the state: Consolidation. Mr. Santin says that consolidation continues as a result of high compliance costs and individual banks worth $5 billion or less in assets seeking acquisitions and at times merger targets. “In Miami-Dade County there has been four local bank acquisitions in the last couple of years, of which two remaining are expected to close by the end of 2018,” Mr. Santin said. Consolidation and regulations bring a negative impact and heavy burden on consumers overall, Mr. Santin wrote. “Consumers are left with less choices in the marketplace, less competition and therefore increased pricing for banking services.” Technology in addition to minimizing regulations is changing the effects of consolidation and regulation for the better. “The economy and consumers are affected in the short term negatively when there is consolidation and regulation. Technology is reversing this trend and forcing banks to evolve and be as efficient as possible,” Mr. Santin wrote. He says banks are aware that clients want the most efficient, cost-effective, and simple way of conducting their personal and business banking. Population growth in Florida also lends itself for a healthier banking sector. Anthony DiMarco, executive vice president of government affairs for the Florida Bankers Association, says Miami in particular will probably have a slightly stronger banking economy than other Florida cities. “To a certain extent you will because it’s bigger mass of people and money,” Mr. DiMarco said. “There’s more deposits. It’s different type of economy, there’s different types of opportunities.”

Stronger economy seen boosting international banks here By Katya Maruri

As global trends continue to shift, David Schwartz, president and chief executive officer of the Florida International Bankers Association, points to updated regulations, a stronger US economy and long-term onshore investments as being key components that will affect international banking in Miami in the years to come. “Well, I definitely think that the US economy is getting stronger, which will definitely have an impact on international banking,” he said. “On the flip side,

though, the dollar is not as strong as it used to be.” However, he said, he foresees the combination of a stronger US economy and a weaker dollar as being a “great recipe for investment in the US” that could translate into clients bringing markets onshore. Another trend, Mr. Schwartz mentioned that could potentially affect international banking in Miami is updated regulations. “We introduced a bill last year called the revised Chapter 663 International Banking Code, which was passed unan-

imously in both the Florida House and Senate,” he said. The revisions to Chapter 663, he told Miami Today, seek to modernize the International Banking Code, making it more attractive to financial institutions currently operating in Florida and to facilitate applications for new financial institutions. As a result, the revised code, which was a collaborative effort with the Florida Office of Financial Regulation, will make the process of setting up banks and other financial institutions in Florida a lot easier.

“As the regulatory climate continues to improve, banking opportunities in Miami will follow suit and improve as well,” he said. For example, “the Bank Secrecy Act, which requires financial institutions in the US to assist US government agencies to detect and prevent money laundering, is 50 years old.” he said. “A lot of these regulations and statutes need to be updated.” Once they are updated, he said, “Miami will have a lot more opportunities to engage in international banking on a much larger scale.”

WEEK OF THURSDAY, FEBRUARY 1, 2018

TODAY’S NEWS

MIAMI TODAY

Railway operator makes offer to develop county courthouse By Gabi Maspons

With an unsolicited proposal from the developers of All Aboard Florida’s Brightline to build a Miami-Dade civil courthouse on the table, plans seem to be hitting another snag as the administration and Chief Judge Bertila Soto differ on the project’s scale and cost. At the Chairman’s Policy Council, commissioners asked attorneys to draft legislation to return to the original, more expensive plan for the building. “We know the critical need at the old courthouse and the calendar set forth by the Internal Services Department over a year ago said that RFQs (requests for qualifications) were supposed to be due and decided on and we even had a vision for a groundbreaking in 2020,” said Commissioner Sally Heyman, who brought the item to the council for discussion. “I’ve heard a lot of good statements that seem to be falling into excuses, rather than focusing on getting it done.” While the commissioners discussed the unsolicited proposal at the Chairman’s Policy Council this month with the county administration, no mention was made of who had made the proposal nor what it comprises. Internal Services Director Tara Smith told Miami Today on Tuesday that the New Flagler Courthouse Development Partners submitted the proposal to the county. They are comprised of Florida East Coast Industries, the developers of Brightline; Hunt/Moss, a joint venture of Hunt Construction Group from Scottsdale, AZ, and FL-based Moss Construction Management; and CGL, a Hunt affiliate. Though the county has received the unsolicited bid, “we haven’t moved ahead on soliciting bids,” Ms. Heyman said. County attorneys assured commissioners there is no legal impediment to requesting proposals for the project but it may be in the best interest of the county to hold off a bit before soliciting them. “While there is no legal reason we cannot do it, we expect a markedly decreased level of competition in terms of market response,” Ms. Smith said. Ms. Smith said that after the county put out an expression of interest last summer, the market requested more information about what the county wanted and what it was looking for. “That will result in a much more competitive process,” Ms. Smith said. After Ms. Heyman expressed that she would like Internal Services to move forward with the bid solicitation while the current unsolicited proposal is being responded to, Ms. Smith said that is not the wisest decision. “I don’t recommend putting them up simultaneously because it will set this project up for confusion and failure,” Ms. Smith said. “We need to take our time and respond to the unsolicited proposal.” Legislation brought forward by Commissioner Jose “Pepe”

The old county courthouse sits beside the new Brightline rail complex.

Diaz late last year regarding unsolicited proposals gives the county 30 days to decide if it wants to consider the bid and request proposals to compete with the unsolicited proposal. Issuing an RFQ while an unsolicited proposal is being analyzed is counterproductive and confusing to the market, Ms. Smith says, as the county will provide more information to developers when it responds to the unsolicited proposal and then have the option to issue an RFQ that is more specific. The county received the proposal along with its fee Jan. 11, giving the mayor until Feb. 10 to decide if he would like to open up the proposal for further bids. “We plan on submitting a recommendation one way or the other on Friday, Feb. 9,” Ms. Smith told Miami Today. “I would prefer that the administration wait to make a decision on one before proceeding with the other,” Ms. Smith said. County attorneys assured the commission there would be a chance for proposals and competition once the unsolicited bid was considered. “An unsolicited proposal does not mean there will be no competition, it just means there will be competition based on the project the board identifies,” the attorneys said. By waiting to address the unsolicited proposal, the county would be providing developers more information about what it is looking for in a new courthouse. “The unsolicited bid puts [the process] in hyper drive and forces a reaction” from the market, said Commissioner Esteban Bovo Jr. Once the county decides how to respond to the unsolicited proposal, Ms. Smith said, the RFQ is “virtually ready to go out.” Mayor Carlos Giménez re-

quested that Internal Services scale back the cost of the courthouse, reducing the fiscal impact by $87 million, Ms. Smith said. The reduced footprint is 525,000 square feet instead of the original 600,000 and would include 20 floors. The estimated fiscal impact would be about $274 million, the county estimates. “This still allows us to immediately build 47 jury and nonjury courtrooms and expand the space to 55 courtrooms by 2035,” Ms. Smith said, “which exceeds the 52 courtrooms recommended by the master plan.” The county had originally planned to allow developers to present options mixing current and old courthouse property with new buildings, but decided it wasn’t wise after getting market feedback, Ms. Smith said. “You have two different skill sets and it becomes murky to evaluate.” The market feedback also led

‘I understand the budget constraints the county has and I certainly need a healthy building, but I would like to follow the master plan we worked on for two years and spent $1 million on.’ Bertila Soto

the county to decide on a single location for the courthouse so it is clear what proposals are bidding on and it is a more transparent and fair evaluation process, Ms. Smith said. Ms. Smith said the county chose the target site adjacent to the new Miami-Dade Children’s Courthouse for three reasons: The new courthouse won’t take up valuable county assets that could be used later for an income stream that would offset the courthouse cost. The site has already undergone environmental remediation when the Children’s Courthouse was built, reducing delays. The new courthouse would allow the county to maximize an underutilized site. To help offset the costs of the new courthouse and mitigate the impact on the general fund, the county is to leverage other downtown county properties. Ms. Heyman and Chief Judge Soto of the Eleventh Judicial Circuit of Florida pushed back against the county’s plan to reduce the scale of the new courthouse, saying the county should adhere to its original master plan. “I understand the budget constraints the county has and I certainly need a healthy building,” Judge Soto said, “but I would like to follow the master plan we worked on for two years and spent $1 million on.” Though there will be two floors of shell space for extra courtrooms, Ms. Soto said it isn’t helpful to include them, as it is a long, painful process to get approval and money from the commissioners. “Do you know what it’s like to come back to you two years after you build the courthouse and say, ‘By the way, I need another $5 million because we want to build the two floors?’” Judge Soto asked. Ms. Heyman said that the delay and scaling back is wasting county time and resources. “I have great reservations on scaling back,” Ms. Heyman said. “I want to stay with the original master plan that we all voted on twice.” Ms. Smith responded that if the commission rejects the mayor’s recommendation to scale back and opts for the original $361 million version, “it will be a quick and easy change, because we have all of that information approved.” However, Ms. Smith reminded commissioners, residents voted down a similar project using county money several years ago. Ms. Heyman moved to have the commission return to the original proposal and immediately request qualifications, rejecting the mayor’s scale-back request and the administration’s decision to hold off on the RFQ until after the unsolicited proposal was reviewed. Chairman Bovo reminded Ms. Heyman that it was a meeting discussion item and there was no legislation to move forward. “If you’re requesting legislation, we can just prepare it. That doesn’t require a motion or second,” an assistant county attor-

‘We plan on submitting a recommendation one way or the other on Friday, Feb. 9.’ Tara Smith ney said. Deputy Mayor Ed Marquez then defended the administration’s decision to scale back. “My boss directed us to go and see if the footprint could be reduced,” Mr. Marquez said, “not because we don’t want to give the courts everything they want, but because there is a fiscal reality. There is a cost to this. It’s not free.” Mr. Marquez also reminded commissioners that it was not a unilateral decision by Mr. Giménez to reduce the county costs, as “several commissioners are telling us we have to be frugal on this.” Mr. Marquez said the master plan was developed before the successful referendum to increase the homestead exemption, “so the general fund is going to be tight” and saving $87 million in construction costs is preferable to decreasing county services elsewhere. In the meantime, Ms. Heyman is to work with county attorneys to draft legislation requesting that the courthouse in the original master plan be constructed. Ms. Smith told Miami Today the county issued a draft of the request for qualifications last week at Ms. Heyman’s request. “I was asked to do a dual track and we’ve done that,” Ms. Smith said. “While we are reviewing the unsolicited proposal we are also on a separate RFQ path.” Ms. Smith said the final draft on the separate RFQ will be issued in the coming days before the county has a decision made on the unsolicited proposal. When asked if this will confuse developers, Ms. Smith said it could be confusing to the industry to not know what the county wants. “We’re putting people in a position where they could conceivably submit two different proposals,” Ms. Smith said. “The dual track is extra work.” Ms. Smith said she can’t opine on what the final track would be, but hopes “we will soon have a clear path on how to move forward.” The existing Dade County Courthouse on Flagler Street, begun in 1925, has long been deteriorating and is far smaller than is now needed in both facilities and number of courtrooms. Its replacement and its future have been debated for years.

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