Miami Today: Week of Thursday, August 16, 2018

TODAY’S NEWS

WEEK OF THURSDAY, AUGUST 16, 2018

MIAMI TODAY

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North Miami moves closer to Chinatown architectural plan

By Katherine Lewin

The proposed Chinatown in North Miami is moving closer to solidifying some design plans.

The city could be requesting proposals for architecture firms in the next few weeks, according to City Manager Larry Spring Jr., who said the city also plans a surprise public announcement in the next three to four weeks.

“Currently, our in-house engineers are looking at storm water plans so that we can to have the details for the RFP [request for proposals]. That RFP will be to start the street redesign work,” Mr. Spring said. “Our engineers are supposed to be getting back to me in the next week or so. For the storm water collection system we are looking to unify it, create a water feature and build it into the new look of the street.”

As for the surprise announcement, he said it will be a city-initiated project working with both the public and private sectors that “may already be built or started.

But it will be a physical space.”

North Miami city officials are continuing to meet with potential Chinatown investors while the in-house engineers work on the storm water plans, Mr. Spring said.

They are hosting delegations as well as individual investors, and Mr. Spring said he had a meeting scheduled the next day with an investor who flew in from China earlier in the week.

So far, most investors are interested in mixed-use development.

The Chinatown Cultural Arts & Innovation District, which was championed by Vice Mayor Alix Desulme and designated by the North Miami City Council in 2016, is to be comprised of 16 blocks of commercially zoned land along Northwest Seventh Avenue between 119th and 135th streets.

The area is to be complete with parks, green space, bike lanes and rooftop gardens, along with pagodas, canals and an entrance inspired by the Ming Dynasty,

Chinatown is estimated to cost $60 million, with $300 million in potential development. Officials continue to meet with potential investors.

The city completed a conceptual design master plan for the district in September 2017. The city’s Community Redevelopment Agency approved the city’s master plan on Nov. 14, 2017, according to Mr. Spring.

“Obviously, we want to attract authentic restaurants so we have cultural elements for it to become a tourist destination. We might have an innovation incubator where we’re inviting entrepreneurs and researchers and different industries to come in and take a space,” Mr. Spring said. “We’re looking at rezoning the area to include residential buildings on the east side of Seventh Avenue that will attract residential investors, as well as interest with the hotel.”

Mr. Spring declined to name any developers or investors.

The CRA paid about $175,000 to Keith & Schnars for development of the master plan and the city planned a minimum of $3 million for street construction, Mr. Spring told Miami Today in December 2017. The total contract with Keith & Schnars is $200,000 to $250,000, he said.

‘We might have an innovation incubator where we’re inviting entrepreneurs and researchers and different industries to come in and take a space.’

Larry Spring The project is still estimated to cost about $60 million, with $2 million for maintenance and beautification and $300 million in total potential development. The “high-level estimate” was $60

million and the city has not drilled down on that number any more since, but it is probably going to be cheaper based on how the city is looking at it, Mr. Spring said.

The city would like some physical development in the designated Chinatown area in the next fiscal year but faces procedural hurdles, Mr. Spring said. He listed Florida Department of Transportation permitting along with permitting from the county that could turn a year into a year and a half to two years.

But the public will see “elements” of Chinatown by 2024, Mr. Spring said. One of the first pieces that may be up is the gateways on either side of the area. Mr. Spring previously said in December 2017 that at the beginning of 2018, the city would request proposals from architectural firms to begin the gateway design.

“We went back to Keith & Schnars, the company that designed the master plan, and asked them to provide us with design concepts for the gateways.

They’re still working on that,” Mr. Spring said. “We met with them

about four weeks ago.”

The city is also talking internally regarding the current US administration’s stance on trade with China, Mr. Spring said, and has to “watch what’s happening on a federal level.” However, there has not been any reduction in interest in the project from Chinese investors, he said.

Some benefit for North Miami’s Chinatown has come from the recent tax code that President Trump pushed through, according to Mr. Spring. The city was able to designate a part of Chinatown as an underserved development area.

“We’re able to take advantage of the President’s opportunity zone in the new tax code. It created a tax incentive on capital gains,” Mr. Spring said. “If you go into one of these areas and put a mixed-use building or infrastructure and you hold onto that property for 10 years, you get a full tax credit on your capital gains when you sell the asset.”

Details: http://northmiamifuture.com/Chinatown/

Miami OKs major street improvements, drainage projects

By John Charles Robbins

Two major street improvement and drainage projects were approved by Miami city commissioners before the August break.

The first resolution combined Mary Brickell Village drainage and roadway improvements and Southwest First Avenue milling and resurfacing, in the heart of Brickell.

The second resolution authorizes Grove Park roadway and water main improvements in Little Havana near the Dolphin Expressway and generally north of Northwest Seventh Street.

A background memo from the Office of Capital Improvements says the total estimated cost of the Mary Brickell Village drainage and roadway improvements and Southwest First Avenue milling and resurfacing work is $1,279,675.08 The commission accepted a bid received May 21 for a construction contract with V Engineering & Consulting Corp., the lowest responsive and responsible bidder, for $1,163,340.99, plus a 10% owner’s contingency allowance of $116,334.09, for a total contract of up to $1,279,675.08.

The Department of Procurement issued

the invitation to bid on April 27.

Three bids were received and V Engineering was the lowest responsive and responsible bidder for the project, and the procurement department recommended awarding the work to the company.

The scope of the work was defined in the invitation to bid: “The Work consists of furnishing all materials, labor, and equipment necessary for road improvements including drainage system installation, milling and resurfacing, road reworking, replacement of sidewalks, new bulb-outs, repair of driveway approaches, repair of curbs and gutters, installation of ADA compliant ramps and bicycle lanes, striping, signs and tree planting.”

Locations of the drainage and roadway improvement work include: nSW/SE Ninth Street from W First Avenue to South Miami Avenue. nSW/SE 10th Street from W First Avenue to Southeast First Avenue (Brickell Plaza). nSW/SE 11th Street from W First Avenue to South Miami Avenue. nSW/SE 12th Street from W First Avenue to South Miami Avenue.

Milling and resurfacing improvements

will be on Southwest First Avenue from Southeast Seventh Street to Southwest 15th Road.

A background memo from the Office of Capital Improvements says the Grove Park roadway and water main improvements project has an estimated total cost of $1,663,082.82.

The commission accepted a construction bid received April 11 from V Engineering & Consulting Corp., the lowest responsive and responsible bidder, for $1,573,500, plus an owner’s contingency of $89,582.82, for a total of up to $1,663,082.82.

The Department of Procurement issued the invitation to bid on March 8.

Of six bids received, V Engineering was the lowest and the procurement department recommended awarding the work to the company.

The scope of the work was defined in the invitation to bid: “The Work consists of furnishing all materials, labor, and equipment necessary for roadway and water main improvements including, but not limited to, installation of an 8-inch Ductile Iron (D.I.) water main and other water main components, milling and resurfacing, roadway reconstruction, installation

of new curbs and gutters, replacement of existing sidewalks, repair of driveway approaches, striping, signs and installation of Americans with Disabilities Act (ADA) compliant ramps.”

Locations of the roadway improvement work include: nAlong Northwest 21st Court from Northwest Seventh to Ninth streets. nAlong Northwest 19th Court from Northwest Seventh to Ninth streets. nAlong Northwest 19th Avenue from Northwest Seventh to Ninth streets. nAlong Northwest 18th Court from Northwest Seventh to Eighth streets. nAlong Northwest Eighth Street from Northwest 18th Court to Northwest 18th Avenue.

Locations of the water main improvements include: nAlong Northwest 21st Court from Northwest Seventh to Ninth streets. nAlong Northwest 19th Court from Northwest Seventh to Ninth streets. nAlong Northwest 18th Court from Northwest Seventh to Eighth streets. nAlong Northwest Eighth Street from Northwest 18th Court to Northwest 18th Avenue.

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, AUGUST 16, 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

Crew of mobility cooks hunting for compatible ingredients We have plenty to complain about in slower MiamiDade mobility, but those pains aren’t due to any lack of government concern or effort – at least, not a current lack.

While results often are minimal, it is abundantly clear that governments large and small are at least trying to alleviate the worst pains of traveling public – which means all of us.

If you doubt it, look at last week’s Transportation section in Miami Today.

Indeed, so many elected and appointed officials are offering so many ideas and taking so many steps to get us from here to there faster that they seem to be tripping over each other to actually accomplish something.

That furious flurry of activity often sends officials scurrying in opposite directions with opposing plans and diverging priorities. But nobody can say that governments today are blind to the issue.

That wasn’t always the case. Local leaders for years seemed to have their heads in the sand as population and high-rises

both soared and traffic simultaneously slowed. Now, however, government and civic leaders seem to be on exactly the same page about the need to add mobility.

Some day they may even get on the same page in deciding exactly what we’re going to do about it.

In the awareness category, we noted last week that the Southeast Florida Transportation Council surveyed Miami-Dade, Broward and Palm Beach commuters to pinpoint their needs with the goal of developing a long-range plan. That plan will join a pile of such work that other agencies have already finished, but at least they’re listing the needs.

In the realm of acting on those needs, we noted that within 2½ years we will have all 136 new Metrorail cars that the county ordered six years ago to replace all the cars that were put into service a third of a century ago. That progress is about the pace of I-95 traffic at rush hour, but at least it’s forward motion.

Then there are the 300 adaptive traffic signals due to be all turned on along the 10 busiest county routes next month, precursors in the aim to change all 2,500-plus county-operated signals from green to red based on current traffic, not what was assumed months or years earlier.

We wrote about express buses that will roll on the shoulders of the 836 and 874 expressways, themselves probably precur-

sors, as officials say, before the routes are upgraded into something else.

In those plans are a park-and-ride lot in Doral geared as a mini-hub for several mobility modes that feed into and out of the express buses. Another such hub is coming to the Golden Glades.

And the Miami-Dade Expressway Authority, which is handling both the Doral park-and-ride and the express buses, is to double-deck 836 starting next year with a viaduct, perhaps an early step to running twin transportation systems, or at least twice as much mobility, in vertical levels in a county where land for transit corridors grows scarcer and scarcer.

Another option is to pack two separate transportation products into the same level as Tri-Rail targets a new link a year from today in downtown Miami by sharing a station and tracks with the new private Brightline. Like many rail advances, the Tri-Rail entry downtown is a moving target, shifting away from us again and again, but at least it’s a target.

The Tri-Rail link is only one of several planned improvements that morph as they roll along, changing in some cases not only the timing but also the mode of transportation as they go.

Like the county’s slow-developing Smart plan to add six transit legs, deadlines recede into the future as plans advance – indeed, transit plans often seem just like

Brazil, the country that seems to always be the nation of the future.

The Tri-Rail interrelation with Brightline, the shoulder express buses’ link with regular autos, and the Doral park-and-ride’s links to trolleys and other transit modes illustrate another key facet of planned solutions: Everything should link together.

In fact, there is no single transit solution.

Rather, many pieces will all tie together if visionary transit organizations and elected officials cooperate.

If those visionaries are realistic, they will probably temper long-term aims from rapidly increasing mobility to merely holding the line: if mobility gets no slower in a decade as population and construction keep growing, that’s a measurable gain in getting more people to more places at least as fast as they go today. Long-term speedup would probably require a technological breakthrough.

Meanwhile, we’re far better off today as we seek sometimes-conflicting solutions all at once than we would be to go back to the old hands-off vision of transportation as we grew in every direction but stood pat on mobility. So let’s applaud the action on all fronts, late as it arrived.

It may seem that too many cooks are working in the kitchen, each throwing an ingredient into the transportation stew that might not fit the recipe. But at least now they’re all cooking.

Transit system matters more than ever, and we don’t have one There is no real public transportation system in Miami.

I do not mean that there isn’t a “physical” or a literal transportation system in the city, because there is one. Other “real” highly urban, highly developed cities Ismael Santos across the country, let alone the world, have a transportation system that runs on time.

But Miami time means hours later, with huge delays and breakdowns in the middle of highways. The bus system in Miami is a nightmare. To have a populace be so dependent on old machines that have the smell of ear wax pumping out, along with many cockroaches and insects crawling among the seats, is to fail that same populace.

No matter what “funds” are held in reserve or in odd board “trusts” or left up to the demands of big corporations looking to shore up public interest, the city must provide for its citizens.

With recent developments in the new soccer stadium and the new mega-mall that will increase traffic, public transportation matters now more than ever.

Miami is an urban city of working people, and they should not be punished for needing public transportation to get to and from their jobs. It is ridiculous to see the Brightline train, that runs from Miami to West Palm Beach and Fort Lauderdale, housed in the same area of the obsolete public transportations system. It’s housed in the same area as the trolleys that have no real maintenance, the buses that rely more on older, run-down models than the newer hybrid options, and the screeching Metrorail that can take ages to show up.

With rumors that the Metromover will

The Writer

Ismael Santos is a second-year graduate student in the master’s track in English Literature at Florida International University, focusing on jazz and archives.

He was born, reared and still resides in Little Havana. start charging a fee, it seems like administrators want to punish people who use public transportation, and we’ll never become a real city if we don’t revamp and retool the system that we currently have.

L etters

I cannot say how many times I’ve been on the cramped Number 8 bus heading to FIU, when everyone is stuck standing in cramped spaces, and then the bus brakes quickly and the passengers are sent hurtling into the barrier or the seat in front of them.

It seems odd to target people who don’t want to spend hours in traffic or a lot on insurance for cars, and it’s ridiculous to ignore this issue. How many more public meetings and false promises are going to take place before this system is made better? How many times does someone have to hurt themselves on the bus or on the

trolley before governments do something?

My mom, in wanting to take the transportation available, has hurt herself many times on buses and trolleys thanks to those same abrupt brakes. It’s also thanks to drivers who don’t pay attention, to old buses that cannot handle the multitude of passengers filing day in and day out.

It makes one wonder where all the revenue from those systems, sans the free-fornow trolleys and Metromovers, ends up, because wages are low for workers, and I don’t see any sustainability in this system.

I’ve tried to keep things in perspective, to understand how complex and limited it is to run a community, but there is no sugar-coating here: when it’s preferable to pay $20 for an Uber to school and back than to wait an hour to get on a bus that’ll modal Center transportation hub, yet no take two hours to get to the destination, then mention of using this asset. something’s wrong. There is no reason to The problem is that the intermodal torture people like this: we deserve better. center is separated from the stadium site by a large highway that feeds the airport.

If a Metromover system or even a covered moving sidewalk were built connecting the two sites, it would greatly reduce the miamitodaynews.com impact on local traffic.

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If Melreese course goes, turn entire site into a park

If the city doesn’t want [the Melreese] land to remain a golf course (suddenly now, after 60-plus years), then turn the entire property into a public park.

Park land should be considered sacred ground to be preserved and protected, not turned over to private developers.

Elvis Cruz

Soccer stadium should be beside a railway station

I am disappointed to see there has been no mention of a new soccer stadium being located next to a Metrorail or Tri-Rail station. Having a stadium next to a train station would greatly reduce the impact on local traffic and boost ridership on the rails.

The proposed Melreese soccer stadium site happens to be located very near the Miami International Airport Miami Inter-

E ditor

Why spend more to ride a trolley over causeway?

I don’t understand the concept at all.

Why will a $5 trip that moves (slowly) in the same traffic as every other vehicle across the causeway be more attractive than a less expensive bus? Is champagne going to be served?

Irwin Seltzer

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MIAMI TODAY

WEEK OF THURSDAY, AUGUST 16, 2018

TODAY’S NEWS

Lagging Formula One talks now target race here in 2020

By John Charles Robbins

The roar of Formula One racing engines won’t be echoing off of skyscrapers in downtown Miami next year as planned.

Prolonged negotiations have led the car racing organization to move the anticipated inaugural of the Miami Grand Prix one year to the fall of 2020.

A proposal for the city to host the race for a 10-year period was on the Miami City Commission’s July 26 agenda but was deferred to Sept. 27, at the earliest. The city manager’s office requested the deferral.

Commissioners did however approve a resolution asking the state government to help support bringing the world-renowned racing organization to the City of Miami.

Earlier this year, the public learned that Formula One World Championship Limited was considering an agreement to bring the races to the City of Miami for at least a decade.

The city commission on May 10 directed City Manager Emilio González to negotiate holding race events in Miami. The Miami-Dade County commission agreed less than a week later to authorize its chairman, Esteban Bovo Jr., to negotiate with Formula One as well.

The city’s resolution said commissioners support efforts to bring FIAFormula One World Championship racing to the city for 10 years, from 2019 through 2028, with the first Formula 1 Miami Grand Prix taking place in October 2019.

The commission further directed the city manager to continue to work to formalize the Host City Agreement between the City of Miami and Formula One and to conclude the agreement no later than July 1.

The May 10 resolution said the city would also coordinate with entities such as Miami-Dade County, Florida Department of Transportation and PortMiami to bring the race here.

The July 1 date came and went without the matter coming back to

The inaugural run of the planned Miami Grand Prix has been put off a year to 2020 as city deferred action.

the commission for a final vote, as the city manager’s office continues to work out the finer points of a deal.

The week of the commission’s last normal meeting before the August break included release of a formal statement from the folks at Formula One titled: Formula 1 & Miami Grand Prix Proposal.

Sean Bratches, managing director of Commercial Operations at Formula 1, wrote: “In the last few months we have worked diligently alongside our promoter Stephen Ross of RSE Ventures, the City of Miami and Miami-Dade County, to realise our ambition to bring a Formula 1 Grand Prix to Miami, and we have made significant progress: however, these are complicated negotiations.

“Whilst our preference would have been to race in Miami in 2019, there was always a point by which delivering the best possible wheelto-wheel racing experience for our fans, drivers and teams wouldn’t be possible in the time available.

We have now reached that point as far as racing in Miami in 2019 is concerned.

“However, we are taking a longterm view and as a result, we have

decided, in consultation with the Miami authorities, to postpone signoff until later in the summer, with the aim of running the first Formula 1 Miami Grand Prix in the 2020 season,” Mr. Bratches said.

He said the organization is working hard to bring the best possible event to the city.

“We have always said that we wouldn’t compromise on delivering the best possible race, for the people of Miami, our fans and the 1.8 billion people who watch F1 globally every year, and if that meant waiting until 2020, then that was far more preferable than signing off on a sub-optimal race track, just to do a deal,” Mr. Bratches said.

“At every stage of this process we’ve enjoyed positive collaboration and co-operation with the City of Miami, Miami-Dade County, Port of Miami, Bayfront Parks Management, residents and businesses.

As a result of these discussions, we have listened and adapted our plans, including elements of the track layout,” he said.

Formula One is the internationally popular single-seat auto racing enterprise with a season consisting of a series of races known as

Grand Prix and held worldwide on purpose-built circuits and on public roads.

Back in May, city and county leaders were touting the potential benefits of bringing Formula One to Miami, but an early proposed race route was not popular with at least one county commissioner.

The proposed route had included the area behind AmericanAirlines Arena, property owned by the county known as Parcel B and home to a park.

The bayfront parcel is in County CommissionerAudrey Edmonson’s district, and she was adamant that the county board remove Parcel B from contention for any part of the Formula One course.

After much debate, and a plea from a Formula One representative not to limit the course options, Parcel B was not included in the county’s resolution in May. A map provided to city commissioners showed the potential race course with cars looping around AmericanAirlinesArena, traversing a portion of Biscayne Boulevard, onto a half-circle entry drive to Bayside Marketplace, and onto Port Boulevard to PortMiami and back

on Northeast Sixth Street.

City of Miami Mayor Francis Suarez voiced support for bringing Formula One to the city, mentioning the global spotlight and financial gains to the area.

But the mayor stressed the importance of having the community vet the entire deal, and he said city leaders must consider the concerns of the many new downtown residents.

At the July 26 meeting, commissioners approved a resolution urging Gov. Rick Scott and the Florida Legislature to make funding available to support the Formula 1 Miami Grand Prix, and directing the city manager to make the finding of available state funding a legislative priority.

The resolution notes the city is negotiating with Formula One World Championship Limited and South Florida Racing LLC to bring Formula 1 Grand Prix Championship racing to Miami.

Formula One has over 500 million fans globally, with 21 races on five continents each year, and in 2017 there were more than 1.8 billion cumulative viewers of the Formula One series races.

The planned Formula 1 Miami Grand Prix race “will bring thousands of race fans to South Florida, which, for international tourists, can easily become part of a much larger visit to the rest of Florida and its great attractions, from the West Coast to the Space Coast, to the Panhandle and all points in between,” the resolution says.

“Millions of international viewers will see the City and the greater South Florida area for four straight days of race events, leading up to the final race; and … this type of international exposure every year, for 10 years, is equivalent to Super Bowl viewership, which had 103 million viewers in 2018.

“The Formula 1 Miami Grand Prix can only help to enhance the international destination status of the State of Florida as a whole through participation in this global event,” it concludes.

Plans delayed for hundreds of housing units in Overtown

By Catherine Lackner

Poinciana Village of Miami Ltd.’s plans to develop block 46 of Overtown are going forward, though the construction timetable has been extended. But even with the postponement, “We got a better deal,” said Cornelius Shiver, executive director of the Southeast Overtown/Park West Community Redevelopment Agency (CRA), which owns the land. Local developer Ted Weitzel is the registered agent of Poinciana

Village of Miami.

In June, when CRA directors agreed to push the deadline to begin vertical construction to Feb. 28, 2019, the developer pledged to make a $3 million payment to the agency and to build 20% of the units as affordable housing. An earlier covenant also included obligations for the CRA to make payments to the developer to assist with the cost of developing block 46, which have also been dropped.

Negotiations for block 46 – which is

near the Lyric Theater and adjacent to the planned Sawyer’s Walk development – began in January 2014. The developer and the CRA signed a deal in April 2014, which stipulated that vertical construction had to commence within three years. With the deadline looming, the developer asked for another extension in 2017 and was given until July of this year, Mr. Shiver said. At that time, the project was to include 340 units, 40 of them affordable housing, he added.

This year, “When they came for another

Public Notice NOTICE IS GIVEN that a Public Budget Hearing will be held by the Miami-Dade County Board of County Commissioners (“Board”) on Thursday, September 6, 2018, at 5:01 PM, regarding the County’s Tentative Budget and proposed millage rates for Fiscal Year 2018-19. The hearing will take place in the Commission Chambers, located on the Second Floor of the Stephen P. Clark Center, 111 N. W. First Street, Miami, Florida 33128.

All interested parties may appear and be heard at the time and place specified in accordance with the Board’s Rules of Procedure.

Miami-Dade County provides equal access and equal opportunity and does not discriminate on the basis of disability in its programs or services. For material in alternate format, a sign language interpreter or other accommodations, please call 305-375-2035, or send email to: agendco@miamidade.gov.

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extension, we cut a whole new deal and a whole new set of timelines,” Mr. Shiver said.

The new development is to be called Poinciana Village Two, but its exact composition is still being negotiated, said Robert Suris, the founder and principal of The Estate Companies, a party to the deal.

He declined to divulge the unit mix, size or construction schedule for the project, but said he expects those matters to be resolved within 60 days.

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The park-and-ride, a gateway to the county, is to be complete in 2020.

$56 million pact kicks off Golden Glades’ park-ride The Florida Department of Transportation has awarded a contract for a $56 million multimodal transportation facility and truck travel center in the current Golden Glades park-and-ride lot.

The contract went to LEAD Engineering and Construction and Kaufman Lynn Construction.

The facility will include a 4,500-square-foot transit hub and will have 10,450 square feet of retail space.

Work on the park-and-ride hub that is to become a gateway to Miami-Dade County and unite several modes of transportation, including bicycles, cars, buses and Tri-Rail, is to be completed by 2020.

Plans include a truck travel center on the east side of the lot spanning 10

P Miller School names department chair The University of Miami Miller School of Medicine and UHealth has named Michael Paidas chair of its obstetrics and gynecology department. Dr. Paidas had been interim director of the section of maternal fetal medicine and interim section chief of maternal fetal medicine at Yale New Haven Hospital.

He holds a bachelor’s degree from Fairfield University and completed his internship and residency in obstetrics and gynecology at Pennsylvania Hospital.

Ocean Financial adds five-person team Ocean Financial Services has added Mario Fernandez, Alexandra Rumié, Henry De Valle, Daniel Cabrera and Maria Luisa De Jesus to its investment team.

Mr. Fernandez, who was named senior vice president, had been director of EFG’s KeyStar Group. He holds a bachelor’s degree from Florida State University and a JD from the University of Florida.

Ms. Rumié, who will oversee the team’s family office offerings, had been a wealth advisor at SunTrust Bank. She holds a JD from Pontificia Universidad Javeriana.

In his new role, Mr. De Valle

Michael Paidas

One Real Estate names director One Real Estate Investment has named Marley Dominguez director. Mr. Dominguez had been vice president of acquisitions and asset management at Rawa, a subsidiary of the Kuwait Pension Fund. He holds a bachelor’s degree from Clemson University.

Miami attorney receives award Domini Gibbs, an assistant city attorney at the City of Miami City Attorney’s Office, has received a 2018 National Bar Association “40 Under 40” Award. Ms. Gibbs holds a bachelor’s degree from Lynn University and a JD from

parking spaces, a 4,500-square-foot transit hub, 10,450 square feet of retail, and 945 square feet for a break lounge, an upgraded multi-bay bus terminal, and bicycle parking and lockers.

The Golden Glades Interchange connects the US 441, Florida’s Turnpike, State Road 826, State Road 9 and I-95.

e o p l e

Mario Fernandez

will focus on portfolio investment analysis. He holds a bachelor’s degree from Florida State University. Mr. Cabrera and Ms. De Jesus will work as investment analysts at the firm.

acres. The proposal includes room for a maintenance facility with 53 truck parking spaces, a truck wash and a gas station. The west plot of land in which the multimodal transportation facility is to be built, currently housing the parkand-ride, stretches 15 acres.

The facility also will encompass 1,748

Alexandra Rumié

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Henry De Valle

Daniel Cabrera

Cabrera had been a group sales manager at the Trump National Doral. She holds a master’s degree from Florida International University.

Colliers International appoints senior VP Colliers International South Florida has appointed Doug Aronson senior vice president. In his new role, Mr. Aronson will Florida A&M University. establish the net lease specialty Llorente & Cuenca platform in South Florida for names director Colliers International, where Llorente & Cuenca has named he will continue to focus on the Julieta Suarez senior director.

Ms. Suarez had been a senior public relations manager at Alcatel. She holds a master’s degree from Florida International University.

Convention bureau names in sales The Greater Miami Convention & Visitors Bureau has named Johana Cabrera corporate sales manager. Ms.

M. Luisa De Jesus

sale and purchase of triple net leased properties across the US. He holds a bachelor’s degree from Boston University.

Metro 1 names VP Metro 1 has named Richard Edwards executive vice president and managing director for North Miami-Dade and Broward markets. Mr. Edwards had been the president and owner of Edwards Realty Services.

He holds a bachelor’s degree from the University of Miami.

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MIAMI TODAY

WEEK OF THURSDAY, AUGUST 16, 2018

TODAY’S NEWS

Planning collaboration targets affordable housing shortage

By John Charles Robbins

City of Miami leaders are turning to master planning work to help address the critical shortage of affordable housing in the growing city.

The Miami City Commission recently approved a resolution establishing collaboration between the city and Florida International University’s Metropolitan Center to work on the preparation of the city’s Affordable Housing Master Plan.

The move allows the FIU center to collaborate with the city’s Department of Community and Economic Development on the housing plan.

Commissioners approved allocating funds from the department’s general fund, subject to the availability of funds and budgetary approval at the time of need.

The work is estimated to cost $110,000.

City Manager Emilio Gonzalez is authorized to negotiate and execute a professional services agreement for a two-year term with the FIU center for the master planning work.

Ken Russell, vice chairman of the city commission, said the master plan is expected to be completed over the next few months.

He said the master plan will help city officials decide how to spend some of the general obligation bond that voters approved last November.

Of the $400 million bond, $100 million is earmarked for affordable housing and economic development.

Mr. Russell said the master plan will assist the city in developing priorities to spend the

Brickell View Terrace by Pinnacle was the first mixed-income building in Miami to have affordable units.

bond money and other funds on affordable housing, “as well as consider policy changes to tackle this wide-ranging crisis in our neighborhoods.”

City staff authored a background memo on the collaboration with FIU to help ease the problem of little to no affordable or workforce housing available in the city.

“The City has rapidly become one of the less affordable cities in the last few years for many residents. The lack of affordable housing is causing displacement in our communities, affecting the economic growth,” it said.

The Department of Community and Economic Development has the need to engage the FIU center in the collaborative development

of the plan, staff said.

Preparation of the plan will include definitive purpose, establishing goals, review and analyzing existing housing characteristics as well as demographic and economic characteristics of households within the city.

The collaborative team will also evaluate popular trends, forecast housing needs, prepare strategies and develop the implementation program.

The legislation notes that given the magnitude of the challenge, the Department of Community and Economic Development needed to enter into an agreement with the university’s Metropolitan Center for the preparation of the city’s Affordable Housing Master Plan.

The purpose of the plan is to align resources, ensure a unified strategic direction, and facilitate community partnership to achieve a shared vision of housing affordability.

The agreement is between the city and the Florida International Board of Trustees on behalf of Florida International University’s School of International and Public Affairs, The Metropolitan Center.

The scope of services says the FIU center will work with city staff on the master plan, which is to be submitted to the city by Dec. 31.

An intro to the agreement says, “The City is one of the most culturally diverse cities in the U.S. composed of vibrant neighborhoods including Allapattah,

Coconut Grove, Edison, Little Havana, Model City, Overtown and Wynwood.

“Recognizing the need to maintain and enhance its cultural diversity, the Plan will help ensure the values that are central to the City and its neighborhoods – diversity, inclusivity, sustainability – are supported by a spectrum of housing choice and opportunity.

“Without a sufficient supply of housing affordable to lower-wage workers, it will become increasingly difficult for the City to attract and retain a diverse workforce and grow vibrant and sustainable neighborhood economies.

“As such, the Plan will provide the analytical and policy framework to advance a bold action agenda to address the City’s current and future demand and supply of affordable housing.”

FIU says the Metropolitan Center has developed a unique methodology for assessing community housing supply and demand issues in the context of the local economy.

The center analyzes key demographic and economic conditions and trends that impact local housing supply and demand.

The demographic and economic base analyses are to provide the data underpinnings for several layers of affordability analysis based on local employment, household incomes, housing values and current and projected housing market conditions in the city and larger market area.

The FlU center is to work closely with city officials and local stakeholders groups, including local businesses and communitybased organizations, in preparing the plan.

Grant to City of Miami targets lack of affordable housing The City of Miami has been selected

by The Center for Community Investment (CCI) to take part in Connect Capital, an initiative that assists communities in attracting and deploying capital in low-income and disinvested areas.

The recognition includes a $200,000 grant to help solve the lack of affordable housing impacting the city.

“This grant enables us to better serve some of Miami’s most vulnerable residents,” said City Manager Emilio Gonzalez. “The work funded by this initiative will help make Miami a more resilient community.”

Miami was competitively selected as one of six teams across the country to ‘The work funded by participate in Connect Capital. this initiative will help Teams consist of local leaders from a range of sectors and disciplines who tackle make Miami a more problems that are considered by residents resilient community.’ to be critical to the well-being of the comEmilio Gonzalez munity.

Miami’s team comprises representatives with backgrounds in planning, residential construction, community development and

non-profit advocacy.

The team’s main goal is to work toward preserving and creating a combined 12,000 affordable housing units in Miami within five years, and to bring affordable housing to the forefront of conversation in the city.

“We have an ambitious goal to help thousands of our city’s residents who are struggling to pay their rent and mortgages,” said George Mensah, director of the city’s Department of Community and Economic Development and a member of the Miami Connect Capital team.

“I’m hopeful that our collaborative team of partners can create lasting change in Miami and address the housing affordability crisis,” Mr. Mensah said.

With funding from the Robert Wood Johnson Foundation (RWJF), Connect Capital provides each team with a range of support including customized coaching, facilitated peer learning, and a two-year, $200,000 grant from RWJF to fund a local staff position dedicated to advancing the team’s work.

Persons interested in joining Miami’s

Connect Capital mailing list, to receive the latest updates and information on the initiative, can e-mail connectcapital@ miamigov.com.

The other Connect Capital teams are based in Central Appalachia; Coachella Valley, CA; Milwaukee; Richmond, and Seattle.

“Connect Capital is a way to make capital flow to places where it doesn’t go on its own, to address the shortage of affordable housing, reduce health disparities, or minimize the impact of flooding on vulnerable places,” said Robin Hacke, CCI’s executive director.

The Center for Community Investment at the Lincoln Institute of Land Policy works to overcome disinvestment and increase access to opportunity so that everyone has a fair chance to lead a healthy and productive life. CCI is supported by the Robert Wood Johnson Foundation, The Kresge Foundation, the John D. and Catherine T. MacArthur Foundation, and the Surdna Foundation.

Details: centerforcommunityinvestment.org

14

FINANCIAL TRENDS

MIAMI TODAY

WEEK OF THURSDAY, AUGUST 16, 2018

In strong position, airport refunds bonds from its makeover Miami International Airport’s strong position in both domestic and international service and its recent financial stability have earned its $792.3 million in aviation revenue refunding bonds an ‘A’ rating and stable outlook from Fitch Ratings.

Refunding of the bonds, issued for the airport’s now-complete $6.5 billion makeover of it north and south terminals, is expected to yield a net savings to the airport of about $56.3 million, according to a report when county commissioners approved the refunding in July. Fitch this month estimated the present-value saving to the county at $65 million.

The next phase of airport work, a $1.45 billion terminal optimization program that is to run through 2025, “will be smaller in scale and additional borrowings are expected to be about 60% of the program budget,” Fitch reported when is- New $792.3 million aviation bonds earn an ‘A’ rating and stable outlook, netting $56.3 million in savings. suing the rating. That rating also Miami International’s debt fixed-rate and fully amortizing. lion through the final maturity in affirmed the county’s $5.1 billion of parity aviation revenue bonds structure is conservation, Fitch Debt service is mostly level in the 2045. Nearly all of the debt service said. “All of the airport’s debt is range of $380 million to $400 mil- reserves are funded with cash and at ‘A’.

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investments.”

The airport’s debt equaling about $262 per enplaned passenger reflects in a structure that sees the cost per enplanement of just under $20 per passenger for last year, a figure that is expected to remain stable, though the Fitch report recalls that at the time of the massive airport makeover, enplanement cost was predicted to fly well above $30 per passenger, causing fears that competitive airports would lure MIA’s passengers.

While enplanement cost never soared sky-high, Fitch does point out that Fort Lauderdale-Hollywood International Airport to the immediate north has a far lower enplanement cost – government sources show $4.89 there last year and $7.52 this year, versus MIA’s $19.61 last year and $19.52 this year – and is the midst of its own substantial makeover, increasing competitive pressures.

Those pressures are escalated, Fitch makes clear, by the fact that American Airlines and American Eagle dominate service at MIA with a 66% market share. Although MIA serves nine domestic carriers, 49 scheduled foreign carriers and 32 all-cargo carriers, Fitch points out that Fort Lauderdale-Hollywood “currently has a much lower cost profile and is served by a more broad and diverse mix of low-cost carriers…. [and its] more recent growth has also been to certain markets in the Caribbean and Latam regions, which may heighten the competitive landscape.”

The July county resolution approving the bond refunding passed without discussion. The bond series issued include Series 2018A alternative minimum tax (AMT) bonds, Series 2018 B non-AMT bonds and Series 2018C taxable bonds – Series 2018 collectively – to refund outstanding revenue and revenue refunding bonds from 2003, 2008, 2009 and 2010.

The Series 2018 bonds were to refund and redeem portions of outstanding bonds of about $5.272 billion. Market conditions in June projected a debt service savings of about $89.8 million over the life of the Series 2018 bonds, which mature in October 2041, according to Deputy Mayor Edward Marquez.

Hilltop Securities Inc., the financial advisor to the county’s aviation department, recommended that the county negotiate sale of the Series 2018 bonds, county attorney Abigail Price-Williams wrote, given the bonds’ structure and market flexibility, the financial volatility of the airline industry and the aviation department’s ability to generate revenues to operate while servicing its outstanding debt.

JP Morgan Securities LLC was chosen as senior underwriter and representative to sell the bonds.

The county has issued about $5.9 billion in capital investment bonds for improvements at Miami International Airport since 1993, with a remaining $300 million available for issuance.

Fitch noted that Miami International’s $339 million fund balance in the past fiscal year – which translated to 287 days of cash on hand – had been “largely stable but somewhat constrained given the residual airline agreements,” which were replaced this month by a 15-year successor agreement.

WEEK OF THURSDAY, AUGUST 16, 2018

FINANCIAL TRENDS

MIAMI TODAY

15

Bonds that helped Jackson grow to be remarketed next week

By Jesse Scheckner

Fitch Ratings this month assigned an AA, or “very high credit quality,” rating to $200 million in outstanding general obligation bonds sold by MiamiDade County to partially finance improvements and upgrades to Jackson Health System facilities.

The bonds, issued in September 2016, are being converted to a fixed interest rate mode and will be remarketed on or around Aug. 21, according to a report from the statistical rating organization.

Key to the rating, Fitch personnel wrote, is flat county general fund revenue performance over the last decade, the result of severe economic and housing stresses, as well as policy actions, during the Great Recession.

“The county’s organic revenue growth prospects are more favorable than prior revenue performance suggests, given the severity of the prior recession, and expectations [exist] for ongoing business investment and population growth, and the strong performance of key trade and tourism markets,” the report states. “The county also retains considerable independent legal ability to raise revenue supporting the AA revenue framework assessment.”

Debt and pension liabilities, the report continues, are expected to remain within range of an AA long-term liability burden assessment.

“Growth in the county’s economic resource base will help accommodate a likely increase in debt to fund the county’s considerable capital plan.”

Fitch’s AA rating of the county’s general obligation bonds, the report states, “[reflects] the

Bonds issued to partially finance upgrades to Jackson Health System’s facilities are being converted.

combination of the county’s high revenue raising authority relative to potential declines under a moderate economic downturn scenario and more moderate capacity to adjust spending from both a legal and practical perspective.”

Denoting the county’s improved budget management practices, which Fitch personnel wrote support “expectation for maintenance of an adequate financial position through economic cycles,” long-term liabilities are projected to be less than 20% of personal income “despite pressure from a significant capital plan.”

Fitch also affirmed MiamiDade’s AA issuer default rating, as well as its AA- rating of Jackson public facilities revenue bonds, ranking the rating outlook as “stable.”

The slightly lower scoring of

Jackson facilities bonds reflects Miami-Dade’s non ad valorem revenues covenant with the state, the report states.

The covenant forbids local governments to pledge all legally available, unencumbered revenues to bond repayment. Such a pledge, the Florida Supreme Court ruled in 1982, leads to counties increasing ad valorem taxes to sufficiently fund revenue-generating programs and services.

Absent policy action, Fitch personnel wrote that expectations for general fund revenue growth for Miami-Dade are “slightly above the level of inflation given forecasts for population, employment and income growth in the MiamiFort Lauderdale-West Palm Beach [metropolitan statistical area].”

General fund revenue performance has improved at pace with

a healthier economy, they wrote, registering an annual growth of 3.7% in fiscal 2014, 5.9% in 2015, 4.5% in 2016 and 6% in 2017.

But concerns persist regarding near-term revenues, including a pending state constitution amendment that, if voters approve it this fall, would increase the homestead exemption.

“The county anticipates weakening revenue due to the pending homestead exemption and other factors and is forecasting deficit operations in the general fund beginning fiscal 2021 (currently estimated at almost $66 million or 3% of budget).”

Miami-Dade’s population as of 2017 is estimated at 2.7 million – up nearly 20% from 2.3 million in 2000. Employment post-recession has steadily increased.

The county’s taxable assessed

value for fiscal 2017, at $250.4 billion, rose almost 8.5% from the year prior, according to Fitch, and surpassed the prior peak year value recorded in fiscal 2008. The median home value in the county, according to Zillow Group, is nearly $295,000, with a projected 5.3% increase next year.

But Miami-Dade still stands to potentially lose $37 million in general fund revenue – less than 2% of its budget – from a successful referendum, according to the report, which states the county has established reserves in its budget and frozen several county positions to cushion potential losses.

To compensate, Fitch personnel wrote the county could increase non-voted general operation millage rates from 7.37 mils adopted for fiscal 2017 to the statutory limit of 10 mils.

If Miami-Dade were to apply its 10-mil limit to unincorporated areas, where about 43% of residents live and pay a separate property tax for municipal services, it could generate an additional $680 million from property tax and $550 million from service taxes, according to the report.

“The general fund supports a broad range of governmental activities including general administration and oversight, police and fire rescue, recreation, transportation, and public health, among other functions,” Fitch personnel wrote, adding that public safety, at more than 45% of total general fund spending in fiscal 2017, is the largest expense category.

“Spending levels are expected to track changes in population and inflation and expand at a pace that is in line with to marginally above the pace of revenue change over time in the absence of policy actions.”

State won’t decide this week on its top financial regulator The News Service of Florida

Gov. Rick Scott and the Florida Cabinet are moving back a decision on hiring a new top financial regulator.

The Governor and the Cabinet had been expected to make a pick during a meeting this week, but Kristin Olson, Gov. Scott’s Cabinet aide, said last week that the governor’s office continues to review applicants for the job of commissioner of the Office of Financial Regulation and another position as inspector general of the state-backed Citizens Property Insurance Corp.

“Our office needed more time to review those candidates, so they’ll be on the next Cabinet agenda,” Ms. Olson said.

The Cabinet meets only two more times this year after this week’s meeting: Sept. 11 and Dec. 4.

Gov. Scott and the Cabinet – Attorney General Pam Bondi,Agriculture Commissioner Adam Putnam and Chief Financial Officer Jimmy Patronis – in June agreed to name Pam Epting acting commissioner of the Office of Financial Regulation and to reopen the application process after interviewing five applicants. An additional 20 applica-

Your Business Path, Cleared.

Gov. Rick Scott studies applicants.

tions were submitted following the June meeting.

Ms. Epting was the deputy commissioner of the office – her pay was raised by $10,000 to $135,000 with the acting title – and is not among the applicants to replace former Commissioner Drew Breakspear, who resigned under pressure from Mr. Patronis. Mr. Patronis said there was a “lack of cooperation, responsiveness and communication” from the office.

Mr. Scott, Ms. Bondi and Mr. Putnam will leave their current offices in January, while Mr. Patronis is running in the November election to remain as CFO. Mr. Putnam is running for governor, while Mr. Scott is running for US Senate.

Ms. Bondi can’t seek re-election due to term limits and isn’t seeking another office.

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MIAMI TODAY

WEEK OF THURSDAY, AUGUST 16, 2018

FINANCIAL TRENDS

Legislative ‘usurping’ brings costly lower MDX bond rating

By Jesse Scheckner

Citing “unprecedented intervention” by the Florida Legislature, one of the nation’s top creditrating agencies has downgraded the outlook on all Miami-Dade County Expressway Authority (MDX) senior-rated bonds from “stable” to “negative.”

By “usurping local autonomy” in reducing state tolls and diverting surplus revenues to other county projects, state lawmakers forced MDX to slash its tolls system-wide by an average of 6.28% this year, overriding MDX’s plan to increase tolls to match the rise in the consumer price index in 2019, according to a July 27 report by Fitch Ratings.

The May 2017 bill, sponsored

by Rep. Bryan Avila and supported by Florida House Speaker Pro Tempore Jeanette Núñez and Sens. Anitere Flores and Rene Garcia, also requires MDX to allot at least 20% of its surplus revenues to other county transportation and transit projects near MDX roadways.

Ms. Núñez, Ms. Flores and Mr. Garcia did not respond to requests for comment, and Mr. Avila’s office was not provided sufficient time to respond.

Miami-Dade Commission Chairman Esteban Bovo Jr. at the time said he applauded the move, adding it would “provide much needed toll relief and further development of transit operations” for county residents.

Mr. Bovo, currently on recess, did not provide a comment for this article.

This June, MDX’s then-chairperson Shelly Smith Fano said she was “thrilled to announce” the toll reductions, effective July 1.

“The MDX board has always acted on the best interest of Miami-Dade County, MDX bondholders and most importantly our valued customers,” Ms. Smith Fano said in a prepared statement for the June 8 release.

“MDX has been an exceptional steward of our customers’ toll dollars and have continually kept our promises by delivering roadway projects on time and on budget.”

MDX officials declined to comment for this article. “The press release has all the information,” MDX spokesperson Tere

Fitch looked at MDX’s work like this and noted that the authority had to suspend $192 million in projects.

Garcia wrote.

But Florida Transportation Commission member Maurice Ferré, a former MDX board member and four-term Miami mayor, says the toll reduction and revenue rerouting were done for political reasons, and any shortterm savings for residents will be undone by even higher tolls down the road, the result of increased bond interest rates whose costs will be passed on to drivers.

“It really should be categorized as criminal negligence,” he said.

“It’s a tragic move by ignorant people going in the wrong direction with good intentions based on political considerations without understanding the consequence of their actions. They don’t understand the system.”

Other major metropolitan areas in the state, like Tampa and Orlando, whose Central Florida Expressway Authority last year froze tolls while voting to keep future toll increases to 1.5% over five years, are further evidence, Mr. Ferré said, that state legislators are discriminating against MDX. “Even after we increased our tolls in 2013 and 2014, which is why Jeanette Núñez is angry, we were still the average, so Miami users – the toll users of MDX – are not paying more than toll users in Tampa, Orlando or

‘It’s a tragic move by ignorant people going in the wrong direction with good intentions based on political considerations without understanding the consequence of their actions.’

Maurice Ferré other places around the country,” he said. “MDX had to be very cautious to not go over these averages. The question is, why did the legislators in Tampa and Orlando react differently than the ones from Miami-Dade County?

They mean well – I don’t think they do this out of malice or to hurt. But what Jeanette Núñez is doing – she thinks she’s being

bold and brave, but what she’s really being is brazen.”

MDX has maintained its system and facilities satisfactorily and kept a “robust’ roadway inspection schedule, Fitch Ratings personnel wrote, but ongoing maintenance could be impacted by the state-ordained reductions.

Such a “fundamental policy shift,” the report states, raises concern about the state intervention’s long-term impact on MDX’s future fund allocation for capital expenditures, its ability to issue additional debt and future legal actions further impacting the organization’s independent rate-making flexibility.

“In the near term, the measurement prompted MDX to suspend $192 million worth of projects not currently under project,” the team, led by primary analyst Stacey Mawson, wrote. “However, the majority ($561.6 million) of the authority’s five-year $678.2 million work program is earmarked for expansion and capacity improvements, leaving a manageable amount for system maintenance and repairs.”

That budgeted amount, which runs through fiscal 2022, is reflective of a larger $1.2 billion project cost encompassing 50 projects, 45% of which is already completed.

Fitch Ratings affirmed MDX’s

“A” rating on $1.434 billion outstanding revenue and refunding bonds.

The rating, the report states, reflects the essentiality of MDX’s roadway system to Miami area commuters, its logistical proficiency in managing system assets and effective maintenance, planning and expansion, such as its recent implementation of the Open Road Tolling system.

Because limited alternative routes exist for commuters to travel through the corridors MDX serves on its five expressways, the system has “a mature traffic profile with steady annual increases in toll transactions,” though the report added that growth is “projected to level off in forthcoming years.”

Future potential developments that Fitch Ratings determined could lead to negative rating action include: ■An unclear long-term toll policy and/or continued legislation requiring toll rate reductions.

■Transferring surplus cash for non-project county uses, which limits economic rate-setting and timely investment in system assets.

■Demonstrated lack of legal independent rate-setting authority.

■Underperformance of traffic and revenue with an unwillingness or inability to accordingly adjust tolls.

In 2017, transactions on all MDX roads stabilized, increasing 5% to approximately 495 million transactions in fiscal 2017, the second year 100% of tolls were collected electronically. SunPass collections accounted for 81%.

Toll-by-Plate accounted for 17%.

Actual transactions for the first 10 months of fiscal 2018 are 6% lower than forecast due to 18 days of lost toll collections due to Hurricane Irma, though the Fitch report states transactions would still be 1.1% lower than expected if hurricane days were excluded.

MDX, formed in 1994, is responsible for operating, maintaining and improving an expressway system currently comprising the Airport (SR 112), Dolphin (SR 836), Don Shula (SR 874) and Snapper Creek (SR 878) expressways, as well as the Gratigny Parkway (SR 924).

State cuts debt for big projects 25% over eight-year span

By Lloyd Dunkelberger The News Service of Florida

Florida has reduced debt that helps finance initiatives like roads, schools and environmental projects by more than $7 billion over the past eight years, according to a new report from the state Division of Bond Finance.

The debt amount dropped from $28.2 billion in July 2010 to $21 billion through June 30, Ben Watkins, director of the bond finance agency, told Gov. Rick Scott and Cabinet members Tuesday. That’s a 25% reduction.

The debt reduction, which came as Gov. Scott pursued a policy of limiting state borrowing, was “unprecedented,” Mr. Watkins said, because it reversed a long-term trend of annual borrowing by the state.

“We had 30 years of annual, perpetual increases in debt that was reversed, which

was a sea change in terms of the direction in which we were headed,” Mr. Watkins said.

A key element in reducing the debt has been the Division of Bond Finance’s effort to refinance older debt with new bonds carrying lower interest rates. Since the 2010-2011 fiscal year, the state has carried out 104 bond refinancings, totaling $14.7 billion, resulting in a gross savings of nearly $3 billion.

Mr. Watkins said the state used the process to refinance some 70% of the state debt since 2010. However, the report also noted the state’s ability to refinance debt will be more limited in the future, with the federal government’s decision to eliminate the use of a financial tool known as “advance refunding.”

“This was a once-in-a-lifetime opportunity to take advantage of historically low interest rates,” Mr. Watkins said. “These are big numbers. And this is real money

that saves citizens and the taxpayers of the state.”

Mr. Watkins’ report also highlighted other financial improvements, including paying back $3.4 billion borrowed from the federal government to cover unemployment benefits after the last recession. The fund now has a $3.7 billion surplus, which Gov. Scott said has resulted in a reduction in the amount of payroll taxes that employers have to pay to support the fund.

“In Florida, we’ve shown that you can have a balanced budget, reduce debt and create jobs all while cutting taxes,” Gov. Scott said in a statement.

The report also noted improvements in the state’s financial ability to respond to major hurricanes.

The state-backed Citizens Property Insurance Corp. has reduced its exposure to what is known as a “1-in-100-years storm” from $21.4 billion to $5.8 billion, largely

the result of reducing its customer base from 1.3 million to 440,000 since 2010, the report said. The reduction in exposure is important, since a large hurricane could result in the state having to borrow money that would be paid off by assessments on insurance policyholders across the state.

The financial improvements, including a relatively healthy $160 billion state pension fund, has resulted in Florida earning “triple A” credit ratings from major financial rating agencies.

“This is the first time we’ve had three triple A’s. So I call it a royal flush,” Mr. Watkins said. “The good news is it recognizes the strength of the state, the management of the state, the financial position and policies of the state, which translates into lower borrowing costs for the state. It is, in effect, a validation from the rating agencies that we are doing the right thing.”

24

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