WEEK OF THURSDAY, APRIL 19, 2018
A Singular Voice in an Evolving City
WWW.MIAMITODAYNEWS.COM $4.00
TRI-RAIL’S FIRST TRIPS INTO DOWNTOWN MIAMI PUT OFF TO ‘SOMETIME NEXT YEAR,’ PG. 3 FILMING GRANT TO ABC: Miami-Dade County commissioners last week approved a $100,000 grant to ABC Studios from the Television, Film and Entertainment Production Incentives Program to shoot a pilot television series, “Grand Hotel.” The pilot will primarily be shot in Commissioner Sally Heyman’s district, though there will be scenes filmed throughout the county. The funding is to come from the county’s general fund and is only allocated if ABC spends $1 million in the county, if 70% of the project is filmed here and if 80% of the vendors being contracted are registered with the county. Eva Longoria is to produce the show.
The Achiever
By Gabi Maspons
TRANSIT GRANTS TARGETED: Mayor Carlos Giménez’s office is to file three grant applications for up to $90 million for transit projects throughout the county. Miami-Dade commissioners last week directed the mayor to apply for the grants through the US Department of Transportation and the Federal Transit Administration. The funds would support “multiple bus and rail projects, vanpool and paratransit services and planning activities,” the legislation says. SEA LEVEL IMPACT SURVEY: Mayor Carlos Giménez is to prepare a report for Miami-Dade commissioners recommending how to protect water and sewer infrastructure and road infrastructure from sea level rise. Commissioners approved legislation sponsored by Commissioner Rebeca Sosa last week directing the mayor to study the systems to see what improvements may be needed and where. “Much of the water and sewer infrastructure is below ground” and “could be affected by rising water table levels,” the legislation says. The county’s roads could also be vulnerable, as they depend on the stormwater drainage systems. “While we still are unsure as to how it will affect us specifically, we must take precautions to make sure that we have every option on the table to protect our residents,” Ms. Sosa said. NO KICK OUT OF BOOTS: What do boots, towing and valet parking have in common? Miami city commissioners may find out at a workshop to dig deeper into those matters. At their meeting last week commissioners were to take a final vote on proposed legislation governing the booting of motor vehicles but the ordinance was deferred for at least a month. In the meantime, commissioners agreed to hold a workshop to discuss predatory booting, tow truck regulations, and valet parking services. No date is set. The ordinance to clarify existing requirements and provide additional regulations relating to the immobilization/booting of motor vehicles on private property arose after numerous complaints about booting companies preying on motorists, particularly in Coconut Grove, and charging excessive fees to release vehicles.
Jacqueline Travisano
Photo by Cristina Sullivan
Chief Operating Officer for the University of Miami The profile is on Page 4
Hyatt deal on river would raze convention center By John Charles Robbins
In August Miami voters may be asked to OK redevelopment of 4.2 acres of downtown riverfront that would add city revenue and improve access to the growing waterfront after razing the city-owned James L. Knight Convention Center and attached Hyatt hotel at 400 SE Second Ave. CBRE, a commercial real estate services firm, has been negotiating on behalf of the city with Hyatt Equities LLC about the fate of the high-profile Miami River land. Now officials with the city and Hyatt have a Memorandum of Understanding for an amended and restated lease. The new proposal is tied to a conceptual plan that would remove the hotel and convention center and redevelop the site with three towers: a Hyatt hotel and two residential buildings with possible office and retail uses. The proposal resembles an idea considered last year, which the city commission put off with a directive to negotiate further. Some commissioners pushed for a new master plan to redevelop the entire riverfront in that area to connect to city-owned Fort Dallas Park
Leak ousts courthouse consultant
River committee OKs three-tower plan, pg.16 just to the west. Others suggested keeping options open to allow for potentially using part of the site to stage construction of a tunnel under the river to carry Brickell Avenue traffic to and from downtown. Officials with the city and Hyatt, along with CBRE representatives, are presenting the latest proposal to city review boards with a goal of taking the deal to the city commission May 10. The plan would put the matter to a citywide vote Aug. 28. The city charter requires that voters must approve sale or lease of city-owned waterfront. A draft of the ballot wording reads: “Shall the City Charter be amended to extend City’s Lease with Hyatt of 4.2 acres of waterfront land at 400 S.E. 2nd Avenue for additional 49 years (total 99-year term) and include: convention center land; new hotel and mixed-use development; new public Riverwalk and other public amenities; and Minimum guaranteed rent to City of $2,000,000 annually, plus percentage of gross profits from all other uses?” Hyatt now pays about $1 million a year.
City officials for years considered the venue a “money pit,” and some considered selling the entire property, which includes the Knight Center, the Hyatt Regency hotel land, and a 1,450-space garage that is the base of the privately-owned Miami Tower to the north. The original lease with Hyatt began in September 1979. Last year, commissioners were told that Hyatt wanted to take control of the convention center and redevelop the hotel, and was seeking a lease extension. The city has handled operations at the convention center for years, while officials admit it has seen better days. The latest proposal would see removal of the convention center, opening the site for the three new towers and added green space and public access, contingent on final construction plans agreed to with a third-party developer. A CBRE representative said a study a decade ago found the convention center was outdated and had served its purpose. Removal of the hulking, low-profile convention center opens the site to added view corridors, green space and plaza design, said officials working on the latest proposal.
Less than a month before a decision on how to move forward on a new Miami-Dade courthouse, consultants last week leaked a confidential unsolicited proposal to a potential competitor. As a result, KPMG is no longer advising on the project and the county is seeking new consultants to remain on schedule. The courthouse at 73 W Flagler St., built almost 100 years ago, needs immediate replacement. For five or so years, commissioners have debated how to do so. This year, conversations picked up momentum. While the county was gearing up to release a request for qualifications [RFQ] to the public in January, it received an unsolicited proposal from developers of the Brightline railway. The county has since issued the RFQ while keeping the unsolicited proposal in the race, initiating a dual track procurement. Mayor Carlos Giménez and administrators have pushed for commissioners to reject the unsolicited proposal, saying it would deter other developers from competing for the contract. Commissioners were to choose a procurement track for the courthouse April 10 but deferred a decision to May 1. Last week the project may have hit another snag. On Friday, Mr. Giménez issued a memo saying courthouse consultants at KPMG inadvertently transmitted confidential information from Brightline’s proposal to Mike Marasco, CEO of Plenary Concessions and a potential competitor for the project. The information included the original unsolicited proposal and KPMG’s evaluation of it. KPMG attributed the source of the leak to an “autofill function in Microsoft Outlook,” Mr. Giménez said in the memo. Mr. Marasco said he did not read the files, signing a declaration under penalty of perjury. “The county strongly believes that the inadvertent release … did not expose the content of any confidential information,” Mr. Giménez wrote.
COUNTY OKS SPENDING $80.4 MILLION FOR MORE VEHICLES ...
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SETTLEMENT OF KEY BISCAYNE SUIT OF MIAMI CRUMBLES ...
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STATE VOTE COULD FORCE MIAMI-DADE TO ELECT SHERIFF ...
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FPL, COUNTY HIT ACCORD ON ENERGY, RECLAIMED WATER ...
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SUPER BOWL HOST TEAM REACHES OUT FOR BUSINESS TIES ...
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COUNTY SPENDS MONEY IT DOESN’T HAVE, MAYOR WARNS ...
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VIEWPOINT: TAX FUNDS TOO SCARCE FOR RANDOM PLANS ...
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CITY TO ASK COLLEGE ABOUT RUNNING OLYMPIA THEATER ...
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MIAMI TODAY
WEEK OF THURSDAY, APRIL 19, 2018
TODAY’S NEWS
The Insider COUNTY PARKING AT MALL: Miami-Dade commissioners last week granted developer Swire Properties approval to improve public rights-of-way surrounding its Brickell City Centre. The county-owned land had county parking spaces, which Swire is to relocate after installing new lighting, hardscaping and other features on the site to make the rights-of-way more accessible to pedestrians visiting the mall. When the project is done, Swire is to provide 15 free parking spaces for the county to replace the spots lost. The agreement is for ten years. INNOVATION DISTRICTS FLUNK: The Florida Constitution Revision Commission on Monday rejected a ballot proposal that would have allowed the creation of “innovation” school districts. The measure, sponsored by Commissioner Roberto Martinez of Coral Gables, would have given “high-performing” school districts the option of applying for the innovation label, which would have freed the districts from some normal laws and regulations. However, the measure failed in a 23-13 vote, far short of the 22 votes necessary to get on the Nov. 6 general election ballot. IT’S SHOW TIME, FOLKS: The State of Florida Department of State, Division of Cultural Affairs, has awarded the City of Miami $38,903 to renovate the interior of the Manuel Artime Theater. The city owns the theater at 900 SW First St. and plans to purchase, design and install new seats and carpeting for the first floor. Under an agreement between the state and the city’s Department of Real Estate and Asset Management, the city has a cash match of $81,892. That amount and the grant total $120,795. A resolution accepting the grant says the project will substantially benefit city residents with enhancements to the theater, which has proven to be a cultural beacon for the arts. SMALL WHEELS, BIG PLANS: The plan to transform an old parking lot under I-95 in Miami into a skating park and green space has taken another step forward. The 40,000-square-foot project, estimated to cost $1.2 million, has the support of the Miami Parking Authority and the Miami City Commission. Commissioners on April 12 authorized the city manager to enter an agreement with the Miami Parking Authority and Skate Free Inc. to fund part of the Skate Plaza project up to $600,000. Commissioners initially approved the contribution in April 2016. Skate Free will also contribute $600,000 and cover all other costs associated with any additional expenses beyond the city’s contribution. Skate Free opened a bare bones “Lot 11” in 2016 at 328 NW Second St. The lot belongs to the Florida Department of Transportation. MAKING ROOM ON AGENDA: Seven hours into an 11-hour county commission meeting last week, Barbara Jordan released agenda items she had pulled to discuss, drawing praise from colleagues. “We love you, Commissioner Jordan,” Commissioner Rebeca Sosa said. Commissioners then spent the next 15 minutes letting go of items they had pulled for discussion to make room for longer, more controversial topics. “Where was this spirit earlier today, folks?” Chairman Esteban Bovo Jr. asked, referring to the hours-long debate about the Rebeca Sosa future of the Miami-Dade County civil courthouse. PRAISE FOR BUDGET DIRECTOR: When Miami-Dade Budget Director Jennifer Moon had to slip out of a county commission meeting last week that was running late, Chairman Esteban Bovo Jr. pointed out how important her expertise is to the county and asked to rearrange the agenda to accommodate her schedule. “I have said on many occasions that if she were to fall sick, this building would tilt,” Mr. Bovo said of Ms. Moon. SOLAR FARMS OVER CROPS: While discussing a Joint Participation Agreement Jennifer Moon with FPL to install solar panels throughout Miami-Dade County at the commission meeting last week, Commissioner Dennis Moss asked Mayor Carlos Giménez to consider farmland close to the Urban Development Boundary when negotiating with FPL. “If we leave these conversations to FPL and the farmers, they are never going to happen,” Mr. Moss said. The county is considering floating solar Dennis Moss panels on empty, county-owned lakes. Mr. Moss wants the mayor’s office to advocate for farmers and see if panels can be placed on farmland to reduce the pressure to develop on their properties. “Eventually [solar panels] are going to become part of our energy landscape,” Mr. Moss said, “We should take a look at it now and speak up for [farmers].” Mr. Giménez said he agrees and will be taking a look during negotiations. ENERGY-EFFICIENT COMMISSIONER: Commissioner Daniella Levine Cava announced that she will soon be transitioning to an electric car to reduce her greenhouse gas emissions. While discussing Miami-Dade’s zero-emission goal and potential partnership with FPL to reduce emissions throughout the county, Ms. Levine Cava said she is excited about that portion of the partnership: “I am planning to go electric myself and benefit.” PETTY DAIS: While discussing an agreement with FPL to build a treatment plant to reuse water at Turkey Point, Commissioner Daniella Levine Cava said she couldn’t vote to approve Chairman Esteban Bovo’s item unless FPL agrees to adhere to the Biscayne Bay water quality standards. “Once we build a reuse treatment plant, we’re not building it again,” Ms. Levine Cava said. The legislation says FPL would explore other uses for the treated water outside of Turkey Point and Ms. Levine Cava says the water quality should meet the Esteban Bovo standards of all future uses, not just FPL’s immediate needs. “Without this condition, I’m not comfortable voting yet,” she said. Mr. Bovo had agreed to accept a separate amendment of Ms. Levine Cava’s, but removed it after her statements: “It’s not personal, but if you’re not going to vote for it, why would I accept your amendment? It’s just the way it’s been done before,” he said. “Is that right? A tit for a tat,” Ms. Levine Cava replied.
County OKs $80.4 million to buy vehicles, adding to fleet of 11,068 By Gabi Maspons
Miami-Dade commissioners last week allocated up to $80.4 million to buy police vehicles, fire trucks, mobile equipment and other light and heavy fleet vehicles for departments throughout the county. The Internal Services Department is to negotiate the contracts and buy the vehicles. The county has 11,068 vehicles it maintains, with 22% of the cars exceeding 100,000 miles and an average age of over 12 years. These older vehicles cost the county significantly more to maintain than newer vehicles, the legislation says. Each department has developed a five-year vehicle replacement plan, creating the budget for the allocation request. Twenty-two departments requested vehicles, with requests ranging from one to 433 cars. The highest price tags came from the Water and Sewer Department, requesting $33.5 million worth of cars; the Police Department, requesting $10.4 million; the Aviation Department, $10 million; Transportation and Public Works, $7.8 million; and Fire Rescue, $6.5 million.A$150,000 request came from the Board of County Commissioners for six vehicles.
‘We had 500 cars at Earlington Heights that weren’t being distributed. Cars had flat tires, batteries were dead and the warranty expired because they had been sitting in a lot for three years.’ Joe Martinez The board approved the purchase of 1,635 vehicles over the next five years in various departments, and ISD can spend up to $80,480,706. Before the vote, Commissioner Rebeca Sosa asked Mayor Carlos Giménez to amend the item to specify the county will first look to
local vendors to provide the vehicles. “Yes,” Mr. Giménez said. “If a local vendor has the vehicle we require, then we will go to them first before going outside.” Commissioner Joe Martinez requested a report updating commissioners on the progress of the vehicle purchasing and when they are distributed to the appropriate departments, saying cars have sat unused in lots in the past. “We had 500 cars at Earlington Heights that weren’t being distributed,” Mr. Martinez said. “Cars had flat tires, the batteries were dead and the warranty expired because they had been sitting in a lot for three years.” ISD agreed to complete quarterly reports for the commission. “I just want to make sure that we have a report when the car is ordered, outfitted and delivered,” Mr. Martinez said. The legislation passed, with all present commissioners voting ‘yes’ except Xavier Suarez, who dissented without comment. Later that evening Mr. Giménez issued a mayoral report reiterating that his staff will be providing commissioners quarterly reports on when the contracts are accessed, which vehicles are purchased and the prices.
Vote could force county to elect sheriff Miami-Dade voters would elect a sheriff, a tax collector and a supervisor of elections by 2025 under a measure headed to the November general election ballot. Those positions are all now appointed officials here. The change could ripple through all police departments in the county, which could come under the elected sheriff’s direction. The Florida Constitution Revision Commission on Monday voted 29-8 to put the measure on the ballot. It could affect some of the 20 Florida counties that have charter governments, including Miami-Dade and Broward. If approved by 60% of statewide voters, the constitutional amendment would mandate the election of all constitutional officers in charter counties, including sheriffs, tax collectors, supervisors of elections, property appraisers and clerks of the circuit court. It would also prohibit the transfer of those duties to other offices. Under the current constitution, a charter county can change the constitutional offices from elected to appointed positions and reassign the duties with voter approval. A handful of charter counties have changed their constitutional offices, including Miami-Dade, which long ago eliminated elections for sheriff, tax collector and supervisor of elections. Voters eliminated the sheriff’s role in 1966 in the midst of a scandal centered on the office. Sixty-six of Florida’s 67 counties have elected sheriffs as their chief law-enforcement officers. MiamiDade appoints a chief law enforcement officer, currently Juan J. Perez, whose title is director of the MiamiDade Police Department. The mayor appoints the police director. Sheriffs, who serve four-year elected terms, have jurisdictions that
Photo by Marlene Quaroni
Director Juan Perez’s role may be supplanted by an elected sheriff.
include incorporated as well as un- Enforcement. And it would revise incorporated areas. In Miami-Dade, the constitutional authority for the many cities and other municipalities Department of Veterans’ Affairs. have local police chiefs in charge of their community policing. These chiefs do not report to the director of the county’s police department. A Singular Voice in an Evolving City Constitutional Revision Commissioner Carolyn Timmann, who Phone: (305) 358-2663 is the Martin County clerk of the circuit court, successfully offered Staff Writers: a change that would delay until Gabi Maspons January 2025 the impact of the gmaspons@miamitodaynews.com charter-government provision in Miami-Dade and Broward, which John Charles Robbins has an appointed tax collector. The jrobbins@miamitodaynews.com measure would impact all other Katya Maruri counties by January 2021. The proposed constitutional kmaruri@miamitodaynews.com amendment includes the charterPeople Column government change and other people@miamitodaynews.com provisions. Efforts on Monday to separate the provisions were deMichael Lewis feated in voice votes. mlewis@miamitodaynews.com In addition to the charter-county provision, the ballot proposal would lead to the Legislature beginning its annual session in January in even-numbered years. It would create an Office of Domestic Security and Counterterrorism in the Department of Law
MIAMI TODAY
TODAY’S NEWS
WEEK OF THURSDAY, APRIL 19, 2018
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Tri-Rail entry to downtown planned ‘sometime next year’ By Katya Maruri
As Miami Central Station continues to rise downtown, Jack Stephens, executive director of the South Florida Regional TransportationAuthority, points to Tri-Rail making its grand debut at the station sometime next year. The South Florida Regional Transportation Authority, which currently operates the Tri-Rail commuter rail line, provides service to Miami-Dade, Fort Lauderdale and West Palm Beach through an existing 72-mile-long system that has 18 stations along the South Florida Rail Corridor running north and south. The trains also connect directly to Amtrak at numerous stations, and to Metrorail at the Tri-Rail Metrorail Transfer Station and at the Miami Airport Station. As a result, this new “Tri-Rail Downtown Miami Link” will utilize a 9-mile segment of existing railroad that runs through the city of Hialeah, Miami-Dade County and the city of Miami, while using sections of the South Florida Regional Transportation Authority and the Florida East Coast Railway corridor. The goal, once the new downtown Miami link is established, will be to run 26 passenger trains into Miami Central Station, which is set to be the home of All Aboard Florida’s Brightline.
‘Right now there is an incredibly complex system being put into place regarding safety. I don’t think anyone anticipated the complexity of this process.’ Jack Stephens Tri-Rail already reaches Miami International Airport. Downtown has long awaited its own connection.
From the downtown Miami hub, both Tri-Rail and Brightline trains are to offer service throughout Miami-Dade, Fort Lauderdale, West Palm Beach. Brightline is to eventually reach Orlando. However, until then, “there are a series of qualifications and tests that have to be met and approved by the Florida Railroad Administration (FRA) before any Tri-Rail trains roll into downtown Miami,” said Efrain Bernal, Positive Train Control
project manager at the South Florida Regional Transportation Authority. “Right now, we are waiting on Florida East Coast Industries [the parent company of Brightline] to meet the necessary requirements set out by the FRA,” he said, “and we are also waiting on them to submit their application and a PTC [Positive Train Control] safety plan to the FRA.” Typically, he said, “it can take up to a year or by statute up to 180 days
for the FRA to respond, analyze and add comments to an application and PTC safety plan.” The purpose of the PTC safety plan is to prevent train-to-train collisions, derailments caused by excessive train speed, train movements through misaligned track switches and unauthorized train entry into work zones. As for test runs of the trains into downtown Miami, Mr. Stephens said, “We don’t expect to run test
trains until the end of the year.” “Right now there is an incredibly complex system being put into place regarding safety,” he said. “I don’t think anyone anticipated the complexity of this process, but we are hoping that the process will speed up if everyone involved cooperates.” Until then, Mr. Stephens said, “we expect to move into Miami Central Station sometime next year.” However, he said, that timeline could change.
Super Bowl Host Committee reaches for business partners By Katya Maruri
As Miami prepares to host Super Bowl LIV in 2020, the Miami Super Bowl Host Committee is looking to curate a list of 300-plus event-ready businesses in 35 business lines to work with Super Bowl event producers as part of Business Connect, Rodney Barreto the NFL’s special event supplier diversity and inclusion program. By agreeing to work with the committee, according to the host committee’s website, these businesses will be designated ‘ap-
proved’ vendors and will be added to the NFL Super Bowl Business Connect Resource Guide of certified businesses ready to compete for contracting opportunities. “Several businesses have reached out to work with us,” said Rodney Barreto, founding partner of Floridian Partners LLC and head of the committee. “Holland & Knight has donated their legal services, Cherry Bekaert, a CPA firm in Coral Gables, has donated their services to us, as well as several other companies.” One company in particular that has extensively worked with the committee, Mr. Barreto said, is the Sumitomo Corp. “Right now we are working out of the Miami Tower located in downtown Mi-
ami, where the Sumitomo Corp. recently unveiled a sky lobby and lounge,” he said. “The management of the building provided us with free office space, putting us close to Bayfront Park, which is where a lot of Super Bowl parties and activities will be taking place.” The goal moving forward, he said, is to include more local companies in the mix. “We are looking towards working with a lot of local companies from different industries,” he said. “There is a wide variety of opportunities for businesses to get involved and work with us.” In addition to looking for local companies to work with, he said, “we are also looking for sponsors and volunteers.”
“We are looking for sponsors at all levels,” Mr. Barreto told Miami Today, “and are looking to add up to 10,000 volunteers.” “Our intent,” he said, “is to let people know that we are up and running and are actively searching for companies to work with, along with sponsors and volunteers.” “Hopefully,” he said, “more people will get involved.” Details: Companies interested in working with the Miami Super Bowl Host Committee can contact Brian Bishop, vice president of partnerships and marketing, at bbishop@miamisb2020.com to receive further information.
EWM LEADS IN LUXURY SALES IN 2018
TOTAL SALES IN SINGLE-FAMILY HOMES VALUED IN EXCESS OF $1 MILLION JANUARY 1, 2018 THROUGH MARCH 31, 2018
M I A M I - D A D E C O U N T Y ’ S L E A D I N G R E A L E S TAT E B R O K E R A G E F O R O V E R H A L F A C E N T U R Y.
ewm.com
63 EWM REALTY INTERNATIONAL
POWER. PRESENCE. PRESTIGE.
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EWM Realty International’s #1 ranking is based on total number of transactions. Data was extracted from the Miami Association of Realtors, The Greater Fort Lauderdale Association of Realtors, and the Southeast Florida Regional MLS on 4/13/2018 for single-family homes and condos sold in Miami-Dade County for both all price ranges and over $1 million for the period beginning 1/1/2018 and ending 3/31/2018.
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MIAMI TODAY
VIEWPOINT
WEEK OF THURSDAY, APRIL 19, 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
Taxes are in too short supply to support random projects Critics asking whether governments return enough bang for our tax bucks might add a second question: are we getting the right kind of bang? Take Community Redevelopment Agencies, which under Florida law target slums and blight. They’re fueled by property taxes – usually from new buildings – that exceed the amount their areas yielded when the agencies formed. The higher collections are supposed to help end blight. But those agencies, called CRAs, have broad power to decide what uses of taxes will best aid the area. Some choices are questionable. We don’t shock easily, but we did recoil when we read four Miami Today reports two weeks ago about how just one of Miami-Dade’s 14 CRAs was spending taxes that otherwise could have helped housing, mass transit and myriad uses countywide. To refresh your memory on those reports, Miami’s Southeast Overtown/ Park West Community Redevelopment Agency spent taxes this way: $975,000 to help build the Harlem Square supper club. The same agency gave the same club $1.25 million for the
same job in 2014 but “upon receipt of full plans and completing of the drawings, final pricing was obtained, indicating that additional funding for the project would be required…” Besides, the owners added another floor to club plans. $375,000 to renovate the People’s Bar-B-Que. The same agency gave the same owner $1 million for the same project in 2014 but the CRA board was told there were unforeseen costs, and that reducing the project’s scope would be detrimental to its success. $250,000 to a marketing group for its fifth year of running the Overtown Music & Arts Festival. The CRA has funded the July festival for those five years. $220,000 to fund a firm’s summer youth training in Overtown to give internships to 60 students ages 14 to 21 for seven weeks each. If that money went directly to the students, it would be $523 apiece per week. The same agency in years past has funded a wall mural, $200,000 to build a better area image on Twitter and Facebook, 25 surveillance cameras for police, and $90 million to the developers of the Miami Worldcenter to develop on their own property rather than somewhere else in the world. Any of those expenditures can be defended. Maybe all are legitimate. But are these expenditures – every one of which Miami commissioners serving as the CRA board approved – the best uses of the taxing power of an improvement district? This one CRA board is by no means
the only government body to use money in less-than-targeted ways that are out of the spotlight of a county or city commission meeting at which news reporters often reveal performance. For years it was common for those running parades, festivals, conventions and other local events like the Overtown festival to tap the airport and seaport for funds. Just one county commissioner could make it happen – until the federal government cracked down, requiring that airport funds go to aviation purposes only. Miami’s city hall for years did the kinds of spending that the CRA is now doing, until Miami came under the thumb of a governor-appointed financial control board decades ago when the city flirted with bankruptcy. Now the city commission, wearing a CRA badge, can spend for pet projects from another pot where cash is available and Miami Today alone has a reporter watching. We’re not questioning the projects, but we do question whether this is the best use of money designed to uplift an area. At the same time, we have to ask whether money is being spent in the best interest of county taxpayers who – because the county approved the CRA structure – have lost taxes that could have added transportation or housing or other vital projects in order to instead fund a barbecue, a supper club or a street festival, not to mention that $90 million subsidy for a massive private project that had been touted for years.
All these funds go to for-profit companies, not charities. That’s not necessarily wrong, if they are the best uses of the funds. But we think all local governments ought to prioritize spending in ways that do not rest primarily on entrepreneurs showing up to ask for money for their own visions. Again, if a priority project wouldn’t get done otherwise, we have nothing against funding for-profit developments. But who at the CRA or city hall prioritized a supper club or a barbecue or a festival before someone asked for money in 2014 – or prioritized it again before someone returned to ask for more cash for the same project in 2018 because it didn’t happen in 2014? We get the feeling that some CRAs have lots of money and want to spread it around in hopes that something works, which may indicate that it’s time to retire those agencies and let more taxes flow to general community needs. If we built more affordable housing or more mass transit, or if we added more parks, or if we beefed up policing countywide, would we be better off than if we left decisions to whoever asks for money from a CRA? County hall should think seriously about whether it’s time to rein in CRA spending in the way seaport and airport spending was reined in decades ago, or whether the CRA system is fulfilling its purpose. Tax funds are in too short supply to miss the mark.
Self-overvaluation shows up behind the wheel, on the phone You’ve heard about the stock market being inflated. You’ve seen the news about the real estate market being overvalued. These should no doubt concern you. But I’m here to tell you that these worries are nothing compared Isaac Prilleltensky to a new menace affecting our city: Self-Overvaluation. I know this comes as a complete shock to you, but I am here to tell you that I’ve seen this behavior in four people already, and I’m writing now to request help in curbing the epidemic. Apparently, the four were infected while visiting ElMio-Es-Mas-Largo, an exclusive resort in Palm Beach. Since I have a background in psychology, and I’m a long-time resident of Miami – I can still remember when David Beckham first floated the idea of a soccer team – allow me to explain this vulnerability in our population. Babies need responsive parents to feel secure in the world. When parents are too busy – shopping at the ridiculously expensive Brickell City Centre, going to Botox parties, attending press conferences by David Beckham, boycotting David Beckham, or stuck in traffic – nannies or grandparents should nurture the baby. When something goes wrong and the baby’s needs for secure attachment are thwarted, some people respond resiliently, while others behave pathologically. In this
The Writer
Isaac Prilleltensky is an academic and humor writer. His most recent book is The Laughing Guide to Well-Being: Using Humor and Science to Become Happier and Healthier. Follow his humor blog at www.thelaughingguide. com. You can reach him at prilleltensky@gmail.com essay we will concern ourselves with the latter, since the former have all left Miami. You can recognize this pathology in a number of ways: incessant talk about themselves, taking up too much air time, showing no interest in other people’s lives, feeling entitled, praising personal accomplishments, Maseratis, perfectly curved body parts, and overall disdain for anything that doesn’t look good in a selfie. Due to insecurity, ignorance, frustration or military rank in their country of origin, some people in Miami are predisposed to exhibit signs of self-importance and pomposity. Feeling valued, by self and others, is only good in good measure. But since everything is big and flashy in Miami, you can never have too much of a good thing here, including self-love. Self-overvaluation is characterized by the inflated worth some people place on themselves, their attributes, their behaviors, their dogs and their hair. The rare virus is contracted through driving, cell phones, dog poop and orange hair. The good news is that the rare disease
has affected only four people in Miami. The bad news is that they are still at large. I’m writing this piece in a desperate attempt to locate the four carriers. If self-overvaluation spreads, the consequences for our city will be dire: even longer waiting lists for plastic surgery. People who get the disease through driving exhibit an inflated sense of their prowess behind the wheel. We are lucky in Miami that only one person has been affected thus far. This individual has been seen making a turn without signaling, driving in reverse on US 1, and texting his abuelita in the middle of an intersection. If you find this person please report him to 1-800-SOY-MALO. Those who get the disease through cell phone use come to believe that their conversations are so important that they are worthy of a broadcast. This person has been observed using a speaker phone in public spaces such as trains, exercise rooms, tanning salons, supermarkets, movie theaters, restaurants, public restrooms and elevators. Instead of having a quiet conversation over the phone, this person broadcasts to the entire neighborhood exhilarating developments about his drinking habits and bowel movements. If you identify this person, please communicate via social media using #elidiota. The third person to have contracted the virus suffers from an overvalued self-concept, emitting an aura of self-importance not seen even in the White House, since the last tweet at 7 this morning. This woman behaves in dysfunctional ways, hurting self and others, consciously and
unconsciously, walking and driving, on Uber and Metromover, in Brickell and Kendall. If you see the suspect, do not approach her. Call the Broward police immediately. This is the kind of thing they can handle. The fourth individual, affected through dog poop, was recently seen in Brickell, walking a Saint Bernard. The person so loves his pet that he leaves its excrement on the sidewalk for others to admire. It will take some time to deflate some egos in Miami. Hopefully, it will happen before we have to inflate some dinghies to get out of here. For now, it is useful to begin paying attention to these patterns in others, and, ahem, yourself.
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TODAY’S NEWS
MIAMI TODAY
WEEK OF THURSDAY, APRIL 19, 2018
County is spending money it doesn’t have, mayor warns By Gabi Maspons
With an anticipated increase in the Homestead Exemption come November and declining property tax roll growth countywide, Miami-Dade County Mayor Carlos Giménez on Tuesday issued a memo to commissioners telling them they are spending money the county doesn’t have. “This should come as no surprise to the board,” Mr. Giménez wrote, saying there is a deficit in the county’s five-year forecast. Mr. Giménez specifically referred in his memo to six items passed by commissioners March 6. Commissioners directed the mayor’s administration to find funding in the budget for a new waste oil collections system in trash and recycling centers throughout the county; create a new policing
district in South Dade; install irrigations systems on roadways throughout the county that have vegetation; create a program to teach kids to ride and care for horses in Tropical Park; create a beautification rapid response team to keep the county clean; and fund a plan for fare-free circulators throughout the county. The problem with the directives, Mr. Giménez said in his memo, is that there is not enough money to accomplish all of the commissioners’ requests, and he knows more requests are coming. He identified other costs burdening the county that will reduce available funding in next year’s budget. In last September’s budget hearings, the commission froze money in the general fund for the SMART plan, creating a $65.6 million gap in next year’s budget and a $127.3 million gap
“This should come as no surprise to the board,” said Carlos Giménez.
for the following year. Other events that may further deplete county resources include unreimbursed Hurricane Irma costs and the unscheduled election for District 5. The hasty resignation by Commissioner Bruno Barreiro this month could cost the county up to $1 million.
Discussions in the pipeline “regarding other service enhancements, additional benefits to employees, or unanticipated facility needs” exacerbate the funding deficit, Mr. Giménez said. To account for the gap, Mr. Giménez said his administration
has already had to scale back on maintenance and rehabilitation at county facilities, “and it has become noticeable.” Mr. Giménez made a point to remind commissioners that the existing budget deficit is a conservative estimate, saying his calculations are “assuming nothing else happens to negatively impact the budget.” Tough decisions will have to be made, he said: increase taxes to support additional services or reduce services. Without an enhancement to revenues through an increase in fees or the property tax rate, Mr. Giménez wrote, “this county will be prioritizing critical services at the expense of other activities.” Mr. Giménez was unavailable to comment on his memo, which will be up for discussion by commissioners May 1.
Commissioners put transit on spending list if Marlins pay By Gabi Maspons
In an effort to drive more money into the SMART plan, Miami-Dade commissioners at the Chairman’s Policy Council last week recommended any available revenues from the sale of the Miami Marlins and the pending lawsuit against owners go to fund the six-corridor transit expansion plan. “We are eager to get these funds and I am confident that we will collect a good chunk of change here,” said sponsoring Commissioner Daniella Levine Cava. “I think it’s logical for the money to go toward some type of infrastructure, and since we’ve established a policy of priority to build the SMART plan, it would be of good use.” Commissioners generally supported the plan but worried about allocating the full portion of the money before knowing what the county is to receive. “I’m in full support of this,” Sally Heyman said, reminding other commissioners of the original profit-sharing agreement with the previous Marlins owners. Deputy Mayor Ed Marquez said Audit and Management Services Director Cathy Jackson is in contact with Marlins attorneys and is “evaluating the nuances of the contract and the debt.”
Commissioners viewed stadium claims against the Marlins and tried to decide where to spend receipts.
Ms. Heyman asked to amend the item to assign a monetary value to any Marlins obligations that are still unmet. “We have a running list of what has been done, what is in the works and what hasn’t been achieved,” Ms. Heyman said. If no progress is made, Ms. Heyman suggested “putting a value” to the unmet obligations “to add to the pot of money” to
be collected by the county. Mr. Marquez confirmed with the county attorney’s office that any obligations that were unmet by the prior owners were passed down to the new owners. “In order for the sale to be effectuated, [the new owners] had to promise us that they would assume all rights and responsibilities of the old ownership group,” the county attorney’s
office said. “Whatever obligations were unmet by the old ownership group should be met by the new and have been assigned to them under the sale.” Commissioner Dennis Moss brought up the Major League Baseball Academy the Marlins were to build in Commissioner Esteban Bovo’s district. “It has clearly never been built,” Mr. Moss said, adding it to the list
Commissioners rank housing crisis ahead of transit By Gabi Maspons
Declaring affordable housing the most critical issue in Miami-Dade County, commissioners at the Housing and Social Services Committee this week voted to update the county’s Master Affordable Housing Plan. “We all know housing is a crisis, perhaps even more important than transit,” said sponsoring Commissioner Daniella Levine Cava. “This is one of the most unaffordable cities in the nation.” Earlier this year, the committee received feedback that it needs a report on the creation of a master plan for affordable housing master plan. Unbeknownst to commissioners, one
already exists, Ms. Levine Cava said. “It’s due to sunset in 2019 and we need to know how we’re doing and look forward to a plan with specific goals,” she said. The original master plan was passed in 2013 and hasn’t been updated since. The legislation calls for an assessment of the accomplishments of the original plan, any impediments to creating more affordable housing and recommended strategies for removing the impediments. The report will also anticipate future affordable housing needs past the sunset date in 2019. “We need metrics on the number of units we have in the county, the number we create and the number that are lost and replaced,”
Ms. Levine Cava said. Earlier in the meeting, Commissioner Joe Martinez expressed his support for increasing affordable housing units throughout the county, saying “housing to me is much more critical than transit.” Commissioner Barbara Jordan, a champion of affordable housing in Miami-Dade, asked to be a co-prime sponsor with Ms. Levine Cava. Ms. Levine Cava willingly agreed, jokingly saying she would happily place Ms. Jordan’s name first on the legislation. The legislation to update the report passed unanimously and is to come before the full county commission for approval at the next meeting May 1.
of potential collections from the Marlins. Mr. Moss said a portion of the money should go to the SMART plan, but if it’s a larger number than the county anticipates, it should go to other needs throughout the county: “There are other concerns in the community like gun violence,” Mr. Moss said. “I would also like to see resources allocated for a festival at Zoo Miami.” Ms. Levine Cava’s original legislation called for allocating any money from the Miami Marlins directly to the SMART plan, but she amended it after hearing from her colleagues. “I would like to amend my item to make this a recommendation instead of a final determination,” Ms. Levine Cava said. “It would come back to the board when the final settlement is known and we know the amount that is owed.” Once the item was amended, commissioners at the Chairman’s Policy Council threw their full support behind the legislation. “I can support it in that form,” Mr. Moss said. “We are leaving the door open while sending a message,” said Commissioner Rebeca Sosa. The item passed unanimously and is to come before the full county commission on May 1.
F ilming
in
M iami
These film permits were issued last week by the Miami-Dade County Department of Regulatory & Economic Resources’ Office of Film and Entertainment, (305) 375-3288; the Miami Mayor’s Office of Film, Arts & Entertainment, (305) 860-3823; and the Miami Beach Office of Arts, Culture and Entertainment-Film and Print Division, (305) 673-7070. Imagina Content LLC. Miami. Promos. Swale Parking. OneKreate. Hollywood. Discovery Family-Wild Days of Summer. Zoo Miami/Metrozoo. Woofco Productions Inc. Montreal. Superpower Dogs. Opa-Locka Airport. Miami Dade College. North Miami. Rojo Corazon Music Video. Tropical Park. Pro One Productions Inc. Miami Beach. BP Summer. Countywide, Miami Beach citywide. N House Productions. Miami. Next Branded. Countywide, Miami Beach citywide. N House Productions. Miami. Carters. Countywide, Miami Beach citywide. Perry Ellis International. Miami. Gotcha. Crandon Park Beach. Pro One Productions Inc. Miami Beach. FWA Summer. Countywide, Miami Beach citywide. Miami Dade College School of Entertainment & Design. Miami. Escapé. 140 Building-Metro Flagler Building.
MIAMI TODAY
WEEK OF THURSDAY, APRIL 19, 2018
13
Financial Trends New federal tax law may alter accountant-client relations By Rebecca San Juan
Filing taxes will never be the same after federal tax reforms now taking effect set new precedents and concerns regarding deductions. “Some of the common themes that we’ve seen during tax season is the complexity of how this reform impacts everybody,” said Meredith Tucker, senior manager at Kaufman Rossin. “There used to be a time where you could have a general conversation. You could do a napkin calculation of what you thought tax would be due. The reform has become so intricate that it highlights the need to really sit down and talk with your accountant.” Section 199 of the new legislation causes the most concern. Businesses, primarily conventional corporations, may deduct 20% of their qualified business income. One challenges arises when accountants and their clients can no longer base their information and plan on previous annual filings. Ms. Tucker said, “There used to be a time where a lot of these folks made estimates by looking back at the previous years. They’d look at 2017 and they’d use that as a roadmap from what they were going to pay for 2018. When the rules have all changed for 2018, you don’t want to use last year as a guide, right?” Clients keep asking accountants whether switching from a subchapter or s-corporation to a c-corporation provides the most deduction.
‘I don’t think businesses can successfully plan and mitigate tax obligations if they are trying to sit with someone once a year in April. I think it’s an outdated model.’ Meredith Tucker Carl Gadinsky is fielding questions from companies wondering if they should switch corporate formats.
Carl Gadinsky, principal in the tax and accounting department at MBAF, said, “A lot of questions are from companies who are not conventional corporations like scorps and partnerships. They’re asking if they should become conventional corporations to take advantage of the lower tax rate. That’s probably a lot of the requests that we’re getting from clients now, whether they should become a c-corporation because of the reduction in the corporate tax rate.” The decision to evolve from an s-corporation or pass-through entity to a c-corporation ultimately varies case-by-case, Mr.
Gadinsky said. “Each client, depending on what they want to do – are they profitable, do they want to keep the profits, are they distributing the profits? There’s a number of questions we need to ask to determine should they even consider converting to a conventional corporation from where they’re at.” Although plenty of clients ponder the same question, Mr. Gadinsky doubts Miami will see an increase in movement from s-corporations to c-corporations. He said, “I’m not anticipating that there will be a lot of clients who are going to go to the conventional corporation if they’re
not already, but we’ll discuss it with them and we’ll go over the pros and cons and the tax implications of it.” Other deductions, including the qualified business income deduction for s-corporations and pass-through entities, force companies to think what plan fits them the best. “The qualified business income, it’s based on a number of different factors,” Mr. Gadinsky said. “It’s 20%, but it’s limited to how much W-2 wages you pay your employees. There could be phase-outs based on your income levels. It could get pretty involved, the calculation.
Whatever your qualified business income is after you do that calculation, you get a deduction of 20% of that amount.” Tax reform sets a precedent for accountants besides understanding thoroughly the new policies. Ms. Tucker says that accountant and client relations may change for good: “I don’t think businesses can successfully plan and mitigate tax obligations if they are trying to sit with someone once a year in April. I think that’s an outdated model. In a way it strengthens our client relationships, because you need to be talking with somebody all year long.”
Matchmaking in banking takeover sifted eight candidates By Rebecca San Juan
Finding an ideal match takes time. Sunstate Bank sealed its first acquisition for $29 million after meeting with at least eight candidates and negotiating for over a year with Intercontinental BankShares. Both were MiamiDade based. In the acquisition, Sunstate is growing from about $250 million to about $400 million in assets and $325 million in deposits. The first acquisition brings a unique set of challenges, says Sunstate President and CEO Lloyd DeVaux: “You always have to prove yourself not only to the market but also to other banks, regulators, and to yourself that you are capable of doing this.” After searching for a bank smaller than itself, Sunstate found Intercontinental to be a good fit with a similar culture, market, and customer base.
“It’s a win-win-win for the bank sold, the bank that bought, and for the community,” said Dr. Ken Thomas, president of Community Development Fund Advisors. Intercontinental suffered low CRA ratings of a two or three score in 2004, 2010, 2013, 2015, and 2017. Dr. Thomas said, “Now they don’t have to deal with the regulators anymore because they’re bought.” ‘If we find the right Mr. DeVaux says Intercontinental’s low CRA history is of partner at the right time no concern. “Once we take over their bank, we’re going to continue they then fall under our approach to try to grow through to market,” he said. “They have acquisitions or through a very low loan-to-deposit ratio, which is the primary measure organic growth.’ of CRA for banks of this size. Lloyd DeVaux Generally, under $300 million they value you really on your loan-to-deposit ratio. The low should have.” More deposits benefit a bank loan-to-deposit ratio says they have less loans than they should like Sunstate seeking to expand. Mr. DeVaux said, “If you look have and more deposits than they
at our bank, we have a fairly medium-to-high loan-to-deposit ratio. By putting the two banks together, we pick up a lot more liquidity from the fact that they have more deposits than loans. We grew our loans over 35% last year. For us to continue to do that, we need to have deposits. So it’s almost a natural fit to bring on a bank that has lower loans and more deposits.” Sunstate Bank can offer a higher amount of loans and reach more customers with more deposits, Mr. DeVaux said. “Instead of being restricted to say $2 million per loan, perhaps now with a $400 million bank you might be able to go to $3 million per loan. You can start serving not only more customers, but [also] a larger customer base.” Mr. DeVaux said he feels confident in the first acquisition: “For community banks it does help to be bigger because you pick up some synergies. From our side, it was very easy to make
the decision. We felt we had to be bigger to get the efficiency we wanted.” The industry for small banks tends to bring overbearing costs with ample compliance issues and regulations that need to be met. When investing in compliance and regulation matters, little is left over to invest in strategies and technologies that set a bank apart from its competition. “They now have more economy to scale,” Dr. Thomas said. “They will have as a result higher efficiency, because economy to scale means that you can operate a larger bank more efficiently.” Bank customers can now access a total of three locations and possibly more in the future. Mr. DeVaux said, “If we find the right partner at the right time we’re going to continue to try to grow through acquisitions or through organic growth.” He says his team will be on the lookout for more mergers starting next year.
MIAMI TODAY
WEEK OF THURSDAY, APRIL 19, 2018
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