Miami Today: Week of Thursday, March 15, 2018

WEEK OF THURSDAY, MARCH 15, 2018

A Singular Voice in an Evolving City

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WORK ON AREA’S TALLEST TOWER, PERHAPS 100 STORIES, TO START IN 2019, DEVELOPER SAYS, PG. 13 POLICE PRESENCE: In the aftermath of the mass school shooting in Broward County, Miami city commissioners have discussed ways to provide more protection in schools throughout the city. A request was made of new Police Chief Jorge Colina to calculate the cost of adding uniformed police officers to the schools. At the commission’s March 8 meeting, he estimated the cost to put full-time officers inside every publicly funded school at $22 million the first year and $15 million a year thereafter. The estimate covers 123 new officers, equipment and benefits. Pensions weren’t included.

But the chief said he would not want the added responsibility of police officers inside the schools. Commissioners have asked the city manager’s office and police department to consider reactivating the police reserves to get volunteers in the schools, along with perhaps part-time police officers. Chief Colina said he planned to meet with school district officials and Miami-Dade County police on the matter.

The Achiever

By Gabi Maspons

HOTELS ON THE RISE: Miami-Dade’s hotel occupancy rate was second-highest in the nation among major markets in January, rising 6% to an 81.3% occupancy, according to STR, a national travel data service.

Revenue per available room was third in the nation at $189.01, a 14.3% gain from $165.31 in January 2017. The average daily room rate was also third in the nation at $232.42, up 7.8% from $215.63 a year earlier. As room supply contracted a hair to 54,816 total rooms from 54,873 the prior year, the number of room-nights sold rose 6% to 1,381,863 for the month.

OVER-WORKED: While discussing federal and state funding for transportation at the county’s Chairman’s Policy Council meeting last week, Miami-Dade Commissioner Esteban Bovo Jr. joked that he is “withering away” from working so hard on the subject. “I was 6 foot 5 with blond hair and blue eyes when I first got here,” Mr. Bovo said, adding, “soon, you won’t be able to see me on the top of this dais.” Though the work is wearing him down, Mr. Bovo will continue to “bang away,” he said. “I am committed to this and we are not going to surrender.”

WOMEN’S DAY: Last Thursday, Commissioner Esteban Bovo Jr. thanked all of the women present at the Miami-Dade County Chairman’s Policy Council meeting for their hard work on international women’s day.

“Every day is women’s day,” Mr. Bovo said, “or at least that’s the way it is at my house,” he joked. Before asking Assistant County Attorney Annery Pulgar Alfonso for help beginning the meeting, Mr. Bovo noted she was “another strong woman here today,” telling Commissioner Dennis Moss they were “surrounded.”

Jorge Colina

Photo by Cristina Sullivan

New Miami police chief prioritizes end to gun violence The profile is on Page 4

Warnings pushing city to monetize its holdings

By John Charles Robbins

Commissioner Joe Carollo is warning of dire days if the City of Miami doesn’t find fresh and fruitful revenue streams soon. He stressed the prophecy during talk of a potential deal to offer city land to David Beckham’s group for a soccer stadium and much more in exchange for a sizable financial return.

Mr. Carollo says the city has serious financial obligations, from the need for affordable housing to shoring up infrastructure and other capital needs.

He fears pending legal matters will impact the budget, in particular a settlement to compensate police and fire employees for cost-cutting in 2010 to ease a financial crisis; and the outcome of a multi-million-dollar lawsuit against the city by Flagstone Island Gardens, developers who locked up city waterfront for more than a dozen years with little progress. Commissioners found the company in default of a lease and soon found themselves in court.

Mr. Carollo also foresees a cooling off of real estate and a dip in continued revenue growth to match.

Economics shelve FPL nuke plants

The need for new revenue streams is supported by Commissioner Manolo Reyes and has led to serious talks about the fate of the city’s valuable holdings, from Watson Island to Virginia Key to Bayfront Park and beyond.

Commissioners have discussed underperforming and underutilized city properties, and what the highest and best use would mean to the city’s bank account.

Commissioner Ken Russell has pushed back, arguing some uses outweigh the highest and best use – namely, he has defended the Miami Children’s Museum, which leases city Watson Island land.

Mr. Carollo has questioned whether the island is the best place for a non-profit children’s museum.

At a March 8 meeting, Mr. Carollo asked City Manager Emilio T. González about a recent meeting with Mr. Beckham’s group.

Last year, it appeared the group had settled on a vacant Overtown site to build its Major League Soccer stadium, but the addition of partners and other factors have the group exploring other areas, including the Melreese Golf Course near Miami International Airport.

The city owns the course at 1802 NW 37th Ave. but private DeLucca Enterprises runs it.

The operation is also called International Links Melreese Country Club.

The city owns the 179 acres, bordered on the east by Northwest 37th Avenue, on the south

by Northwest 14th Street and the Dolphin Expressway, and on the west by Northwest 42nd Avenue. It hugs the city’s Grapeland Water Park.

Mr. González said he met with the soccer group once about the site, and the next move is up to the group. He has asked them for a plan that shows exact what they want, what it will look like, “and I need to see the financials.” He asked about potential property tax revenues and job creation.

“I need to see what the ask is … We don’t know what we don’t know,” he said.

Mr. Carollo said he’s open to a soccer stadium and other related commercial uses at the site but he’s most interested in the potential highest and best use. He suggested it may be time to request proposals (RFP) for redeveloping the site.

“Whatever happens, we should still pursue an RFP,” he said, “to find out what we can get for that site.”

Nuclear units Florida Power & Light was to build at Turkey Point have been delayed indefinitely as it’s too expensive to compete with natural gas, FPL says.

In 2010, the county agreed with FPL to build two new nuclear units at Turkey Point and treat 90 million gallons daily of reclaimed water to cool them.

But “conditions have changed, and the units will not be constructed in the foreseeable future,” Mayor Carlos Giménez said in a memo to commissioners. At the Chairman’s Policy Council last week, he said FPL is opting to extend the life of its existing nuclear units, holding off construction. He said the existing Turkey Point units are maintained in “like new” condition and it isn’t smart to move forward with the new nuclear plants now.

“The economics don’t support us moving forward with the new units in the foreseeable future,” said Steven Scroggs, FPL senior director.

Mr. Scroggs said it is “good news” as FPL can now focus on the new agreement with the county to reclaim 60 million gallons of wastewater to relieve pressure on the aquifers.

The price of natural gas has dropped drastically since the units were planned, Mr. Scroggs said, and expensive new reactors can’t compete. Previously, “hurricanes drove up the natural gas prices to $10 per million MMBtu, whereas now that price is about $2.50, or 25% less than the other fuel,” he said. One million Btu is about 1,000 cubic feet of natural gas.

The existing reactors have been paid for so it is a low-cost alternative to extend their lifespan, he said.

Mr. Giménez said delaying the nuclear plants indefinitely will save ratepayers money. “You’re talking about billions of billions of dollars that we will avoid,” he said.

FPL says it isn’t yet giving up on the new units, but Mr. Giménez said “FPL is going to try to move on these two units, but I’m not sure they’re ever going to get built.”

SCIENCE MUSEUM WAY AHEAD, SHATTERS VISITORS GOAL ...

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GABLES, DEVELOPERS IRONING OUT PLANS FOR GARAGES ...

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VIEWPOINT: FRESH IDEAS CAN HALT BLEEDING OF RIDERS ...

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MIAMI POLICE LEAD A DRIVE AGAINST CODE VIOLATIONS ...

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BRIGHTLINE OFFERS INITIAL $10 FARE, BUT NOT FOR LONG ...

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LUXURY CONDO CLOSINGS UP 38%, LUXURY HOMES UP 15% ...

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STATE’S COSTA RICA MISSION NETS $23 MILLION IN SALES ...

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CITY REVIEW PUTS LITTLE HAVANA RESIDENCES ON HOLD ...

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MIAMI TODAY

TODAY’S NEWS

The Insider INFORMED MAYOR: After Commissioner Jean Monestime asked Florida Power & Light a question about a Joint Participation Agreement with Miami-Dade County during a Chairman’s Policy Council meeting last week, Mayor Carlos Giménez jumped in to answer. Mr. Monestime teased Mr. Giménez for having cut in. “I was expecting to get an answer from FPL, but their answer would not have been better than yours,” Mr. Monestime said. “You shined with that answer.” Mr. Giménez played along, saying he’s a “pretty well educated guy” and joked that some of the information he gave may “actually be true.” Com- Jean Monestime missioner Esteban Bovo Jr. joined the conversation, saying Mr. Giménez was “showing off his Columbus education.”

GROWING BUT GOING: Florida is expected to add 5 million to 6 million residents by 2030, with Miami-Dade adding 500,000 to 800,000 of them, Mark Wilson, president and CEO of the Florida Chamber of Commerce, told the Greater Miami Chamber of Commerce Trustee Lunch last week in a statistics-filled discussion of the state’s future that can be found at www.

TheFloridaScorecard.org. He also warned that Miami-Dade as a whole is losing income each year as gains fill the rest of the state.

WATCHING OUT FOR SENIORS: Miami city commissioners March 8 preliminarily OK’d an ordinance to protect the elderly during storms, in response to Hurricane Irma. The ordinance requires nursing homes and assisted living facilities catering to the elderly to have a plan for emergency power and fuel for generators; establishes a citywide requirement that all city-funded facilities, including senior citizen towers, have functioning generators with adequate fuel capable of continuous use to power essentials, including elevators, lights, emergency alarms and air conditioning in the designated rooms; and that resident attendants to the elderly should be on site within 24 hours of a hurricane or storm’s passage, or as soon as safely possible, to ensure adequate care in the aftermath of hurricanes and storms resulting in widespread power outages. The legislation awaits a final vote.

DOUBLE-BOOKED: The Miami-Dade Expressway Authority, or MDX, the local transportation agency that runs the five county toll roads, hosted an emergency meeting last week when the two county elected officials on the MDX board were already booked. Mayor Carlos Giménez and Commissioner Audrey Edmonson are the “only two elected officials on the MDX board,” said Commissioner Esteban Bovo Jr. at the Chairman’s Policy Council meeting last week, “and it concerns me that an emergency meeting was called where you couldn’t participate,” he said. Mr. Giménez said he was able to make a portion of the meeting and “expressed his displeasure” to the MDX board for calling an emergency meeting when he and Ms. Edmonson were at a meeting “that had been planned years in advance.” Mr. Giménez said he was promised it wouldn’t happen again.

SAME TEAM: While discussing transit funding at the Chairman’s Policy Council meeting last week, Mayor Carlos Giménez reminded commissioners that he was on their side, and has also been hard at work to get extra dollars from the federal government. “Maybe I don’t look as frustrated because I’m not a masochist and I don’t like to beat myself over the head all the time, because I’ve been at this for 15 years,” Mr. Giménez told county commission Chairman Esteban Bovo Jr. “I went up there just like you and talked to our reps to cut down the process … then I went two years later and nothing happens,” Mr. Esteban Bovo Giménez said. “Doesn’t matter if it’s a Republican or Democratic president, unless Congress changes the process, it’s going to take some time.”

EX-MAYOR HELPS HIMSELF: Democratic gubernatorial candidate Philip Levine loaned another $800,000 to his campaign last month, according to newly filed finance reports.

The former mayor of Miami Beach had loaned a total of $1.855 million to his campaign as of Feb. 28. He also raised $238,972 last month for his campaign, while a closely tied political committee, known as All About Florida, raised $183,000.

SOLAR FARMS: While discussing Miami-Dade County’s Joint Participation Agreement with Florida Power & Light to install 1 million solar panels throughout the county, Commissioner Dennis Moss suggested the county also look at privately owned farmland, and not just county-owned property. “This could increase the value of farmland, which would make it less attractive to convert it to residential units,” he said. “It could be a good opportunity to get farmers engaged in producing solar energy on their land.” Mayor Carlos Giménez Dennis Moss agreed, saying the county needs “hundreds of acres of land” for the solar panels “to generate sufficient power” and he is open to any solutions, even floating solar panels on low-value, county-owned lakes.

Philip Levine

NO TRAFFIC AT HOME: At the Chairman’s Policy Council meeting last week, Commissioner Dennis Moss told colleagues it may be time to look at telecommuting and technology centers around Miami-Dade to help alleviate traffic congestions. “A part of the solution is having people work from home or go to tech centers that are contra traffic flow,” he said. “Maybe it’s something that we could champion and maybe there is some federal funding we can get.”

PARKING AGENCY WINS AWARD: The Miami Parking Authority has won a Best Use of Technology Award from the Greater Miami Chamber of Commerce. The chamber announced winners at the Innovate Miami: A Catalyst for Disruption conference this month. The Best Use of Technology Award recognizes an organization that has used technology in a way that led to increased productivity. In 2008, the authority became the first parking organization in Florida to adopt the parking-payment online technology known as PayByPhone. It allows customers to pay for parking easily and conveniently using their smart phones. Usage has steadily grown to the point of reaching a half-million transactions in a single month last December.

WEEK OF THURSDAY, MARCH 15, 2018

Science museum already past goal of year’s visitors with months to go

By Katya Maruri

The Phillip and Patricia Frost Museum of Science, which officially opened to the public in May 2017, has already surpassed its attendance goal for its first full year, reporting 779,400 visitors so far, while the PérezArt Museum Miami next door has had steady growth ranging from 44,587 to 368,364 visitors yearly between December 2013 and December 2017.

Despite maintaining steady growth, neither museum has yet extrapolated its attendance arriving from the Museum Park Metromover Station right next door, according to the museums’ heads of marketing and public relations.

“Our attendance is experiencing a steady progression with the exception of a slight dip in the second

year, which was both anticipated after the inaugural year but less of a dip than was expected,” said Alexa Ferra, director of marketing and communications at the Pérez Art Museum Miami.

The Frost Museum, which set an initial goal of 750,000 guests for its first full year (May 2017 - May 2018), had already welcomed 779,400 by Feb. 28, said Rebecca Dorfman, its public relations manager.

As for tracking attendance arriving via the Metromover, Ms. Dorfman said, “at this time, we do not track specific attendance numbers from the Metromover. However, we do see large amounts of guests using the Metromover.”

“We also offer a ticket discount through the EASY Perks Program for those guests with an EASY Card or ticket traveling via Metrorail and

Metrobus,” she said.

At the Pérez, Ms. Ferra said, “we don’t have exact data about Metromover riders. However, we do see large amounts of guests using the Metromover, especially during weekends and other peak times – like our free first Thursdays and free second Saturdays programming.”

As for parking, Ms. Dorfman said the museum garage has been sufficient to accommodate the demands of the museums and the surrounding area.

“During peak times when the parking garage is full,” she said, “guests use spillover options, such as Museum Park, Omni Garage and other surface lots in close proximity to the campus.”

Moving forward, Ms. Ferra said, the art museum plans for steady attendance growth.

Possible discrepancy at city agency leads to talk of abolishing it entirely

By John Charles Robbins

A pending audit of the Miami Sports and Exhibition Authority (MSEA) has renewed talk of abolishing the governmental body.

City Manager Emilio T. González reported to the city commission March 8 that he’d recently received information about “a possible discrepancy in accounting procedures” of the authority.

Mr. González said he intended to direct the city’s auditor general to look into the matter to see if the concern is valid, but chose to check with commissioners first. He said he wanted commission approval to move on the audit, or at least acknowledgement that commissioners didn’t object to the audit.

There were no objections.

Commissioner Joe Carollo asked what specifically would be looked into as part of the audit; what is the discrepancy?

Mr. González said he’d rather not discuss details publicly, as to avoid adversely impacting the outcome of the audit. The city manager said he would share the information privately with Mr. Carollo.

The matter led to talk of ending the special body.

“I’m surprised MSEAstill exists,” said Mr. Carollo, a former mayor.

“Back then [when it was created] it had a real mission,” he said. The authority worked to construct the former Miami Arena, and to bring major sports teams like the Heat and the Panthers to the city, he said.

Mr. Carollo said he doesn’t object to the audit but “what I’d like is to have a wider discussion.”

He called for a study of MSEA’s total revenue and exactly how it spends its money.

“I can’t imagine it’s a lot of money … Perhaps it has served its time. I don’t know if we need it anymore,” Mr. Carollo said.

City staff said the authority only has two active agreements that bring in about $152,000 a year.

Mr. Carollo suggested the authority has been used in years past to get around requirements of the Carollo Amendment, a rule named after him requiring appraisals, bids and

Emilio González notes audit issue. Joe Carollo talks of agency need.

referenda to approve the sale or lease of city-owned waterfront property.

Mayor Francis Suarez said he agreed with Mr. Carollo and perhaps it’s time for a reanalysis of the authority. The mayor serves as de facto chairman of the authority’s board.

The mayor also spoke of the most recent move to abolish the MSEA. A shake-up of the authority board came in early 2016, on the heels of a delayed and prolonged review of a lease of prime city-owned waterfront property to a private company.

The authority leased property on the southwest corner of Watson Island as part of a plan to revive a seaplane base and heliport. A seaplane operation has been on the island since the 1920s.

Then newly-elected Commissioner Ken Russell questioned the authority having the power to manage valuable city assets and wanted a close inspection of the lease. He also asked to see detailed plans for the proposed seaplane base.

Mr. Russell said then it would have been nice to have the public weigh in on use of the city-owned island property, but it appeared the new lease was a done deal.

Fellow commissioners explained that the new lease was partly the result of decades-old litigation over the property.

The Watson Island lease review in 2016 led then-Commissioner Frank Carollo – Joe Carollo’s brother – to open a discussion about abolishing the authority.

However, talk of abolition melted into reforms of the authority’s duties and powers.

Commissioners later that year did

strip some power from the authority and changed its membership structure. Commissioners approved an ordinance requiring that any matter dealing with city-owned property must get approval from the full city commission.

It means the sale or lease of any city-owned land must have the approval of the city commission, and the sale or lease of surplus city property would also require commission approval.

The ordinance also removed an exception used by the authority to avoid requiring voter approval for the sale or lease of city-owned waterfront property. The change in the legislative pipeline basically says all waterfront leases must go to referendum.

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 Sara Marino smarino@miamitodaynews.com People Column people@miamitodaynews.com Michael Lewis mlewis@miamitodaynews.com

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, MARCH 15, 2018

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

Fresh ideas can reverse Miami’s transit race to oblivion New York, which is battling subway woes that make Miami’s faltering transit feel like a swiftly flowing stream, unveiled eight solutions in a global competition last week.

New York was desperate.

Its subways carrying 5 million riders a day are crumbling. So eight answers plucked from 438 offerings from 23 nations will be a $3 million bargain if even one winner is a partial quick solution – “quick” in Manhattan parlance being five to 25 years.

Government has to be desperate to seriously ask the public for ideas, many of which won’t fit the situation or the wallet. But honestly, isn’t Miami-Dade also desperate enough to start listening?

A FasTrack competition partly funded by the county recently found we need more mass transit and carpool riders in order to clear our highways. It’s not rocket science.

But if part of the congestion solution is to beef up transit use, we’re going the wrong way. As we pointed out last week, we’ve lost more than 25% of transit riders in a single

L etters to the E ditor Mass transit is supposed to get better, not worse

I find it ironic that commissioners have put the kibosh on building road bridges where auto traffic needs it in favor of this dilapidated, neglected, dysfunctional system and then tell us we should all ride mass transit!

I would rather be in my clean, comfortable, undilapidated car, listening to my radio, in traffic, than ride what has become, in just a couple of years, a third-world system (that’s a compliment). I thought mass transit was supposed to get better, not worse.

Robert Becerra

I had to stop using transit due to Metrorail delays

How many people here actually use mass transit ? I do and had to stop. I was getting to work late as my starting time is 7:30 a.m. I would get to the office by 8:30 or 9 a.m. Every day there was an issue as to why there were 45-minute delays on Metrorail. I live by the Douglas Station and had to stop using the rail.

As for “Uber and Lyft made public transit options almost obsolete”? Answer is No. I have taken Uber and Lyft numerous times and Uber drivers have cancelled on me because they can’t get to me. Yes, they get lost in downtown Miami. So while Uber is an excellent idea, it does not replace mass transit.

As a customer of 24 years of Miami mass transit I had to find alternatives due to their horrible service. Currently, I drive to work and pay $50 a month to park.

Listen to your customers. We are also taxpayers and vote.

Jose Roeder

month over four years, pouring them onto already-congested roads.

At the same time, faced with lower fare revenues from fewer riders, we’re cutting service to stay within budget. With less service, fewer and fewer people ride, forcing more and more service cuts. That’s a death spiral.

It’s so bad that commissioners last week ordered Mayor Carlos Giménez to report in advance any planned transit service changes. The measure’s main sponsor, Daniella Levine Cava, noted separately that “more than five months ago the [commission] voted to restore Metrorail services, yet that has been delayed and the administration is cutting service on dozens of bus routes without prior notification… We should be doing everything we can to increase transit options and improve riders’ experience.”

She’s absolutely correct. So what can be done?

The administration last week went looking for $3.5 million in repairs to get air-conditioning going on 40 Metrorail cars.

Air-conditioning doesn’t move riders, but try riding Miami trains that don’t have it – the heat can force you back onto the highway.

That’s a small fix. There are many pieces.

No single action can bring back millions of transit rides a month that have fled MiamiDade’s system in the past four years or retain those that remain.

A major question has been whether to put all of our financial eggs into six new transit legs that government has been planning or to spend now to better serve riders we already have. The answer is we must do both simultaneously. That means a serious, and rapid, shuffling of county fiscal priorities to put transit in the driver’s seat. It’s an emergency.

Transportation is pivotal. It sways income and job opportunities, housing needs, and planning and growth issues. If transportation goes to hell it takes a whole lot with it, from tourism to real estate to quality of life.

As transportation crumbles, fissures are appearing in government between the administration and the commission in a useless blame game that came out in the open last week when commissioners realized that Smart plan transit gains had to be put off another year for more studies, with more studies still ahead. Well, no one person is to blame, but there’s plenty of blame to share.

What seemed to be a smooth unity road to a glittering Smart plan for added transit is becoming bumpier as it becomes apparent that neither the mayor nor commissioners are likely to be in office by the time new lines roll. Term limits will bring aboard a whole new cast to face the same old gaps.

But what the current cast can do, right

now, is find multiple ways to reverse the outflow of riders from our present transit.

Air conditioning is one step. Getting new buses and rail cars rolling sooner is another – they’re ordered and funded, but nobody can ride them until they’re ready. What can be done creatively to get providers to move faster? Would a bonus for speed help? Or a penalty for delay?

Innovative campaigns to add value to riding present transit – more reliable service, friendlier drivers less often absent, creative promotions of transit service, cleaner cars and more – would also help.

The county might offer unique economic incentives for riders, form special interest groups of passengers during trips, provide entertainment, issue buttons and badges for proud transit users or find other ways to make transit riding a badge of honor, not dishonor.

Name a popular entertainer the county’s transit spokesman of the month or the year.

Hire an independent transit event firm with a budget. Be creative.

Folks, it all starts with what we have today. If we let it keep falling apart – and make no mistake, statistics prove it’s falling apart – there will be no central core left for the new Smart plan to link into when it finally comes on line.

New York City was desperate enough to listen to ideas. Aren’t we?

Marjory Stoneman Douglas would be proud of students Marjory Stoneman Douglas would be so proud of the aroused idealism of the student body of the high school that bears her name.

After all, her whole life was marked by brave achievement overcoming igno- Harvey Ruvin rance and prejudice by speaking truth to power.

Even before she was a leading suffragette, she was the first Florida woman to enlist in the armed services and later served in the Red Cross during World War I. After the war, she began writing for the Miami Herald (started by her father Frank Stoneman). Her daily column, “The Galley,” focused on Florida’s rich human and natural history – shining light on both social and environmental injustice.

She is primarily known as the “Mother of the Everglades” for her work and writing, which eventually stopped the destructive draining of the Everglades. She also took on the need for running water and sewage treatment in what was then a burgeoning frontier city. She forcefully called for equal treatment and services in the poorest then segregated sections of our city. She spoke out against “Slumlords” and for child nutrition as well.

I had the very good fortune to meet her in the early 1970s when I asked her to join me in an effort to save the historic Arch Creek Natural Bridge and Hammock (135th Street and Biscayne Boulevard).

We needed Gov. Reubin Askew and the Florida Cabinet to act quickly to purchase the site for a park and prevent Chrysler Corp. from turning it into a car lot. With Marjory by my side, there was no way they could say no.

It was a humbling honor to serve as

Clerk of Courts Harvey Ruvin emceed at Marjory Stoneman Douglas’s 100th birthday.

her master of ceremonies at her 100th corruption and bad politics – BUT NEVER year birthday celebration at the Marjory GIVE UP!” Stoneman Douglas Nature Center on Key Biscayne.

I introduced her as “a child of the 1890s and a role model for the 1990s miamitodaynews.com and beyond.” She passed in 1998 at the FOUNDED JUNE 2, 1983 age of 108, but her achievements and her VOLUME XXXV No. 42 ENTIRE CONTENTS © 2018 grit live on. She was presented with the To contact us: Presidential Medal of Freedom in 1993.

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(305) 358-2663 Yes, she would be proud of the perAdvertising (305) 358-1008 Classifieds (305) 358-1008 severance and idealism rising from this Subscriptions (305) 358-2663 Reprints

(305) 358-2663 unspeakable horror of the campus shooting and the 17 lives lost on Valentine’s Editor and Publisher / Michael Lewis Vice President / Carmen Betancourt-Lewis Day 2018.

It’s uncanny that her words, written so long ago, resonate with such instructive meaning today: “Be a nuisance where it counts; do your TODAY (ISSN: 0889-2296) is published weekly for $145 part to inform and stimulate the public to MIAMI per year; airmail: to Europe $190 per year, the Americas $145 per year.

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TODAY’S NEWS

WEEK OF THURSDAY, MARCH 15, 2018

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Brightline offers early $10 rail fare

Costa Rica is top state Central America export market: Manny Mencia.

State’s Costa Rica trip nets $23 million sales

By Sara Marino

The state’s official economic development organization, Enterprise Florida, reported about $23.2 million in total sales after it led an export mission to San Jose, Costa Rica.

The Feb. 26 to March 1 mission focused on allowing small to mid-sized Florida companies to make connections in the Central American marketplace in sectors such as beauty products manufacturing, hotel and restaurant equipment, renewable energy and more.

“The mission was successful,” said Manny Mencia, Coral Gables-based senior vice president of international trade and development for Enterprise Florida.

He said it comprised 41 people representing 21 companies.

“In total, 194 appointments were held between these companies and Costa Rican businesspeople,” he said. “Besides the 21 companies – and those are the 21 companies we did actual one-onone appointments for – we had two seaports represented, which were Port of Miami and Port Everglades, and there were also five delegates that were representing private companies that made their own appointments.”

The companies included “businesses such as Seaboard Marine,

which is the largest cargo carrier between Costa Rica and Florida, along with others,” Mr. Mencia said.

Export sales missions usually visit Costa Rica every three years, with Enterprise Florida’s aim being to “build relationships that will allow us to continue to expand trade between Florida and the target market.”

Markets the mission focused on included medical technology, civilian aircraft, automotive parts and car equipment, renewable energy, food processing and more, according to Enterprise Florida’s website.

“The companies that participated reported roughly $23.2 million expected sales between actual deals and deals they expect to do over the next year, which is good for a relatively small market, because you know Costa Rica is a county with roughly 5 million people, although it is our number one export market in Central America,” Mr. Mencia said.

While exact numbers aren’t in for this mission, in 2016 bilateral trade between the US and Costa Rica totaled $10.2 billion, with Florida being the leading state for two-way trade. Costa Rica also ranked as Florida’s 12th merchandise trading partner, since it exported about $3.6 billion in products in 2016.

The president of the company that’s building a railway from Miami to Orlando promised the Greater Miami Chamber of Commerce’s trustee lunch in October 2015 that trains would run here by January 2017. Two presidents later, the chamber group last week heard the newest president say only that “construction is what it is” and gave no date for trains to reach us.

But for the first time, chamber members did learn the price of riding the line from Miami to West Palm Beach – at least at the outset.

The current low-end fare is $10 to ride the Brightline from Fort Lauderdale to West Palm Beach, the only segment of the line now open, said Patrick Goddard, who recently was named president and chief operating officer.

Whenever Brightline service comes to Miami, he said, for the first month or so it will be the same price – $10 for the Smart class, $15 for the Select class, which among other things offers wider seats for passengers.

“It’s never going to get any better than that – ever,” Mr. Goddard told would-be passengers among chamber members. But when prices rise, he said, Brightline will be selling passes and packs of tickets. He didn’t specify prices.

Calling for a show of hands of those who had tried the Fort Lauderdale-West Palm Beach trip,

only a few raised hands. Still, he said, ridership so far has tripled expectations.

He explained the advantages of riding the train line today – drive from Miami to Broward, drop off the car at the station and save a few minutes riding the rest of the way to West Palm Beach on one of 10 or 11 daily roundtrips. He said Brightline is working at each of its three South Florida stations to link taxi, bicycle and other services

at each so riders won’t need a car when they arrive.

Time savings can be meaningful in rush hour, he said, pointing to an eventual Miami-West Palm Beach run in an hour versus three hours by car, with 16 eventual daily roundtrips.

Even while service to Miami is awaited before adding Orlando “in the coming months,” he said, the railroad is now negotiating naming rights for its stations and trains.

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Commercial Office Space & Residential Real Estate Region’s tallest tower to start rising in 2019, developers say

By Sara Marino

Florida East Coast Realty plans to demolish its downtown tower at 100 S Biscayne Blvd. by 2019 and build a new 92- to 100-story downtown tower to open in 2023.

The building at 1,049 feet above Biscayne Bay would be the tallest in the area with 360-degree, panoramic views and over 3 million square feet of office, residential and hotel space.

“We are starting to put our tenants on notice about our intent to demolish the building,” said Jerome Hollo, manager of Florida East Coast Realty. “Sometime by the second or third quarter of 2019 is when the leases will end and at that point we’ll look to demolish the existing building and start a new project.”

Once the building has been evacuated, a building permit will be needed from the city.

“We’re in the process of preparing our construction documents, which will be submitted for permit, and once we receive the city’s building permit we’ll start the construction of the new building,” Mr. Hollo said.

Initially, the new project was supposed to comprise of two towers with 4 million total square feet, but as planning developed further Florida East Coast decided to go

‘Sometime by the second or third quarter of 2019 is when the leases will end and at that point we’ll look to demolish the existing building and start a new project.’

Jerome Hollo The new 92- to 100-story tower is planned at 1,049 feet tall, by far the highest throughout the region.

with a singular building.

“It will have a 210-room hotel, 500,000 square feet of class A office space, 1,300 residential units and 120,000 square feet of retail space,” Mr. Hollo said. “From the original plan to now we went from 4 million square feet to 3.2 million square feet, so the overall size of the project has been reduced some.

The height is where we picked up some extra stories, and we figure we’ll be within the range of 92 to 100 stories.”

The company has started reaching out to retailers and businesses for tenants.

“We have commenced discussing with people, but we’re still a little far out now,” Mr. Hollo said.

“We wanted to put it in front of the larger out-of-market companies that are out of the area, though.”

In terms of completion, Mr. Hollo said the company has predicted it will take four years of construction, with the new tower completely done sometime in 2023.

“It’s a wonderful plan and it will really be an iconic landmark

for the city,” Mr. Hollo said.

“We’ve actually been talking with FDOT (the Florida Department of Transportation) and the county to connect by a bridge to the peoplemover station that’s adjacent to our project. This will help our people that are living and working in the building to easily use the city’s circulator system.”

Sale of Macy’s long-time Miami Beach anchor in process

By Sara Marino

Sale of the Macy’s department store site on Miami Beach is currently in process. The site is under contract, with Marcus & Millichap commercial brokerage managing the sale.

The Macy’s building itself at 1675 Meridian Ave. is a twostory square building that sits on 50,000 square feet, but the buyer has the option to expand development because a total of 137,000 square feet is available, with only 50,000 square feet currently being used.

Details of who the buyer is and for what price have not been disclosed because official sale documents are still being processed.

“We’re under contract,” said Scott Sandelin, a national retail group specialist for the firm. “If all goes well, the contingency period will be waived and within the next couple of months the property sale will be closed.”

Macy’s still has a lease that was signed in 1951 and has about 33 years to run.

“Many of these types of leases were done about 100 years ago or 75 years ago that still sit in the marketplace today,” Mr. Sandelin said. “I guess they didn’t consider how things would change in dollars and values over

Macy’s has a lease on the store that is being sold, with 33 years more to run. The site is under contract.

time, and so today the tenant, who is Macy’s, who owns this lease is paying extremely low rent, and they pay all expenses on it, but their net rent is extremely low.”

In January, Macy’s announced that its historic building on Flagler Street in downtown Miami was closing as part of some nationwide planned store closures. While the downtown Miami location is in the process of closing, the Miami Beach location will continue to be open,

according to Jacqueline King, manager for South media relations for Macy’s.

In terms of how the site was marketed, Alex D’Alba, a senior Marcus & Millichap associate, said a database as well as networking were used to find clients.

“We have a very vast database that mixes and combines institutional clients, as well as high net worth individuals, and that’s a database that has over 15,000

clients,” he said. “We market very specific clientele that we believe would have interest in this that would understand the land value in it.

“It’s 50,000 square feet roughly of CD-3 zoning in Miami Beach, which is caddy corner to the convention center. It could be a hotel, retail, mixed use or even parking, but obviously there’s a long horizon out there since Macy’s does control the property for another 33 years. But then

again, Macy’s is a single tenant holding 100,000 square feet.”

While Macy’s has a 99-year lease, Mr. D’Alba said long leases like this weren’t uncommon in the 1950s, especially when clients were large companies.

“It’s common for a big box retail company to have leases that allow them to expend up to 40 years and sometimes past that,” he said. “In this particular case, there was a ground lease. When this lease was done, there was no construction on site, it was just a piece of dirt, so the property was built, and back then it was much more common for these type of leases to exist.”

Earlier this year, when the site was still for sale, Mr. Sandelin said there was “significant interest in the property.”

“We received interest from owners and developers around the country, each with their own idea of what to do and how to monetize the investment should they be able to purchase it,” he said. “We had several offers prior to it being under contract.”

Although the site is currently under contract, Mr. Alba said backup offers are still being taken.

“We do still have interested parties that are in line waiting to see what happens,” he said. “By no means is this a done deal.”

16

MIAMI TODAY

COMMERCIAL, OFFICE SPACE AND RESIDENTIAL

WEEK OF THURSDAY, MARCH 15, 2018

Largest office buildings paid $51 million taxes, study finds

By Rebecca San Juan

Property owners might gain new appreciation for large office buildings nearby as a result of new research that indicates office towers offset real estate tax obligations for surrounding properties while also providing revenue for the county.

Thomas Dixon of Dixon Commercial Real Estate finds the largest office buildings contributing about $51 million to Miami-Dade in 2017 property taxes.

Reviewing the 20 largest multi-tenant properties within Miami-Dade, findings show how the investment per square foot of rentable space changed from 2016 to 2017. Mr. Dixon sees factors such as a building’s age and whether it was recently sold as influencing its property taxes.

“There is a relationship between the assessment value and what properties sell for,” Mr. Dixon said. “When office buildings sell in the current year or the prior year, it is generally reflected in changes in the assessment.”

He looks at 777 Brickell Ave. as a prime example. “That’s assessed for $304 per square foot of rentable space, but it sold for $140 million, which is substantially higher than the assessment of [approximately] $87 million,” he said.

The 777 building opened in 1978 and features 13 floors with 288,457 square feet of office space. In 2017, the property stands with an approximately $87 million assessment, down 16% from $105 million in 2016, and 777 Brickell Ave. paid $1,904,769 in property taxes.

Generally speaking, Mr. Dixon says, the older the building the lower its property assessment.

TWENTY LARGEST MULTI-TENANT OFFICE BUILDING PROPERTY ASSESSMENTS Building Address 100 S Biscayne Blvd 100 N Biscayne Blvd 1 SE 3rd Ave 2 S Biscayne Blvd 777 Brickell Ave 201 S Biscayne Blvd 200 S Biscayne Blvd 9100 S Dadeland Blvd 701 Brickell Ave 801 Brickell Ave 1001 Brickell Bay Dr 1221 Brickell Ave 80 SW 8th St 1 Alhambra Plz 1111 Brickell Ave 2525 Ponce De Leon Blvd 333 Avenue of the Americas 1450 Brickell Ave 3470 NW 82nd Ave 600 Brickell Ave

“The assessments for office buildings range from a low of $129 per square foot of rentable space to a high of $326 square foot of rentable space,” he said.

“The difference mostly is due to the age of the building and location. The older buildings are being assessed at a much lower rate generally than the newer buildings.”

Office buildings in Brickell and downtown generate the most revenue for the county.

Mr. Dixon points to the largest contributor at 200 S Biscayne Blvd., assessed at $263 million in 2016 and rising to $400 mil-

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lion in 2017, for providing about $8 million in taxes.

“It makes a big impact on the general fund,” he said. “The important thing to realize is that communities that have large office buildings, the taxes that are paid by large office buildings help offset the real estate tax obligations of other properties.”

In total, the county’s 20 largest office spaces paid $51,180,438 in 2017 property taxes, from a low of $765,322 at 9100 S Dadeland Blvd. to a high of $8,660,920 at 200 S Biscayne Blvd.

Mr. Dixon says his findings show office spaces are more

Rentable SF

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320,000 310,000 449,076 691,783 288,457 802,974 1,225,000 256,368 677,667 415,150 280,500 408,649 290,000 261,867 522,892 254,592 752,845 597,274 281,785 631,866

$156.88 $180.65 $129.60 $198.04 $304.97 $286.44 $326.53 $190.76 $296.81 $247.86 $275.76 $291.20 $211.91 $240.63 $319.38 $237.40 $232.21 $307.23 $178.97 $284.87

than just hubs of employment: “They’re an employment source and a generator of real estate tax revenues.”

Mr. Dixon foresees more redevelopment of older buildings in the coming year. He said, “We are seeing in the commercial real estate market the redevelopment of underdeveloped sites. For example, along Coral Way we’re seeing sites that had one-story retail buildings being redeveloped with larger buildings. Part of that is because the economics justifies the high-rise buildings.”

Redevelopment can be good since it increases community

‘A community that has a large base of office and commercial buildings meets the burden of maintaining the government revenue and not necessarily on people’s individual homes or apartments.’

Thomas Dixon revenues while not adding the social costs that a given residential building might with residents demanding services.

“As long as the buildings that are being built don’t incur social costs, it’s a wonderful thing,” Mr. Dixon said. “A community that has a large base of office and commercial buildings meets the burden of maintaining the government revenue and not necessarily on people’s individual homes or apartments.”

His findings indicate the importance of large office spaces for a strong community. He said he hopes others take note: “Appreciate the office buildings that we’ve got and encourage more of them if they’re economically justified.”

Real estate sellers must now disclose property special taxing district status

By Gabi Maspons

Come May, any sellers of real estate property in Miami-Dade County must disclose to buyers if the property is in a special taxing district. After residents told county commissioners special taxing district locations were unclear last year, the clerk’s office will now keep notarized statements from buyers of properties in special taxing districts to ensure all property owners have notice of their tax rates.

“Disclosure is something important that we’ve always discussed,” said sponsoring commissioner Jose “Pepe” Diaz last month before the legislation passed.

Residents request to create special taxing districts with the county and pay an extra fee for services in their area for additional lighting, security, landscaping and road maintenance.

Last year special taxing districts were a contentious issue, as residents in the districts had to pay higher tax rates to cover a deficit from county errors in billing.

The county can’t absorb any deficits in special taxing districts.

Residents in special taxing districts receiving the services must cover all deficits.

Jose “Pepe” Diaz sought the rule.

Commissioners said residents weren’t always aware their properties belonged to a special taxing district and were surprised by the increased rates.

Previously, the county required developers of new residential property within a special taxing district to disclose the existence of the district within the real estate contract, but there was no requirement to inform future buyers that the property was within a special taxing district.

Mr. Diaz’s legislation requires sellers of a property within a special taxing district to notify buyers that the property is in the district.

“People haven’t understood that they need to pay the special fees, and we worked with the real estate

industry to understand better,” Mr. Diaz said.

All sellers of residential and nonresidential property must prove to the county that the buyer knows the “actual cost of owning the property,” Mr. Diaz’s legislation says.

The seller must give notice of the special taxing district in the contract to buy the property.

The buyer must also send a statement to the clerk’s office acknowledging that the property is in a special taxing district.

“This will help buyers avoid the potential hardship of acquiring property without knowing that their property is subject to annual assessments, regardless of their demographics or income levels,” said Michael Spring, senior advisor to the mayor, in a memo to commissioners.

The county won’t require the disclosure documents for another two months.

In the meantime, the county is to promote awareness of the notice requirements to the real estate industry, including the Florida Association of Realtors, the Miami Association of Realtors, the Real Property, Probate & Trust Law Section of the Florida Bar and local real property title insurance companies.

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