South Florida headlines

[Aessotariq]

Thanks for the link...

I guess what I was trying to say is that I want better planning and less sprawly development, because it strains our unique ecosystem. As it stands now, in order to keep our lands dry, we do lose a lot of water to sea. It would be great if were could retain and store that water somehow, which will help us keep up with this explosive growth. It's more about planning for the future, applying new technology, asking the tough questions now while there is something that can be done about it, and being efficient in allocating resources, instead of being wasteful as in the past. Any successful growth area needs to meet demand in the face of continuing scarcity. A subtropical mini-Tokyo, Hong Kong, or S

[Aessotariq]

Trump sues Hard Rock Casino developer

By Robert Little

BALTIMORE SUN

Posted January 13 2005

BALTIMORE -- Donald Trump has filed a lawsuit against the Baltimore-based Cordish Co. and its partners in the Seminole Hard Rock Casino project, claiming the developers fraudulently represented themselves as Trump associates to land the lucrative deal with the tribe.

Trump spent three years and "great expense" trying to negotiate a casino development deal with the Seminole Tribe but was told by former confidant Richard T. Fields that such a deal "would not be possible," according to the lawsuit. Then, the lawsuit alleges, Fields left Trump's organization and formed a partnership with Cordish Co. officials David S. Cordish and Joseph Weinberg, who conspired to mislead the Seminole Tribe by creating the impression that Trump was still behind their efforts.

The Cordish team negotiated contracts to build Hard Rock Hotel and Casino complexes on Seminole reservations in Tampa and Hollywood that are estimated to earn the developers $1.3 billion over the next decade.

Cordish, who was out of the country yesterday, issued a statement denying the claims in the lawsuit as a "ludicrous work of fiction" and said the suit had been filed in the name of a Trump company "that is literally in bankruptcy." Trump's hotel and casino company, which includes three resorts in Atlantic City and casino operations in Indiana and California, filed for bankruptcy reorganization in November.

"The defendants will not only completely prevail in the litigation, but will also recover substantial damages against Donald Trump," said the statement, issued on behalf of Cordish and Weinberg through the firm's lawyer in Baltimore.

A spokesman for Fields said Trump abandoned the Seminole project voluntarily and called the lawsuit "baseless and without merit." He said Fields is preparing a counter-claim against Trump.

The lawsuit, filed in Broward Circuit Court, seeks unspecified damages. But Trump's attorney said the veteran casino developer thinks he is entitled to all of the profits that Cordish and Fields stand to earn from the Seminole Tribe deal. He said Trump hopes to renew his old relationship with the Seminoles and replace Cordish as the tribe's casino partner.

Cordish is regarded as one of the country's premier developers of urban entertainment projects but had never built an Indian casino before the Seminole project. In Trump's lawsuit, filed late last month but which the defendants had not seen until recently, he suggests that their lack of experience is apparent.

A preliminary IRS ruling last month invalidating the tax-exempt bonds issued to build the Hard Rock complexes, a move that could force the tribe to compensate the federal government for about $233 million in lost taxes, is evidence of the Cordish team's "incompetence and inexperience" with such deals, the lawsuit says.

"We would expect that we would be entitled to any of the profits that Fields and Cordish have arranged. That's essentially what this is all about," said Robert I. Reardon Jr., a Connecticut attorney representing Trump.

"And I would think that the tribe might reconsider its decision to go with the Cordish Co., given what's happened to the tax-exempt bonds they arranged to finance the facilities," Reardon said. "I think it shows they don't have the experience necessary for these kinds of very complicated Indian development deals."

Trump, who is busy planning his third wedding later this month to Slovenian model Melania Knauss, declined to comment.

An analysis by The Sun, based on public documents and marketing studies of the two casinos, estimated that the Cordish team can expect to be paid about $120 million by the Seminole Tribe in the first year of the project, with revenues increasing annually and totaling more than $1.3 billion after 10 years.

The Baltimore Sun is a Tribune Co. newspaper.

Link to article

[Aessotariq]

Posted on Thu, Jan. 13, 2005

GAMBLING

Tentative deal on slot machines could bring Dade $10 million a year

Miami-Dade County has reached an agreement with three parimutuel sites to allow Las Vegas-style slot machines -- but first commissioners must OK a public vote likely to be held March 8.

BY CHARLES RABIN

[email protected]

Miami-Dade County leaders and three parimutuel operators reached a tentative 30-year agreement Wednesday that calls for a $4 million up-front payment to the county that would in effect offset the cost of a referendum on Las Vegas-style slot machines, and a percentage of gross revenues that could be worth up to $10 million a year if voters approve them.

The proposed agreement -- which must pass a County Commission vote next Thursday to set up a March 8 referendum -- could also mean as much as $300 million annually to the state's public school system, officials said.

The deal would permit up to 6,500 Las Vegas-style slot machines at Flagler Greyhound Track, Calder Race Course and Miami Jai-Alai.

''I think this will spur huge economic growth in the community,'' said Ron Book, who represents the parimutuel industry. ``People will be coming in from all over the place to play.''

State voters in November passed a constitutional amendment that permits Miami-Dade and Broward counties to have slot machines at their parimutuels if voters approve.

The amendment allows state legislators to set such rules as how many machines are permitted, and who operates them. But both counties are moving ahead with agreements with to establish rules before the referendum votes are held.

In a two-page memo Wednesday, County Manager George Burgess pointed out to Commission Chairman Joe Martinez several negative aspects to bringing gambling to the community.

''Anticipated impacts to the county include increased development, traffic, crime congestion, and potentially, social service demands,'' Burgess wrote. ``Costs associated with problem gambling, while not quantifiable, may be significant . . .

``Spending on activities that generate sales tax revenue or other revenues that accrue Miami-Dade County may be diverted to slot machines.''

Still, Burgess said he sees the proposal as a way for the struggling parimutuels to supplement their core activities and make themselves a destination point. He called them ``Racinos.''

LEGISLATIVE SESSION

Local politicians and gaming industry executives believe they need to have an agreement in place before the state's legislative session gets into full swing in March and April.

The proposed 30-year agreement would permit 2,500 machines at Calder and Flagler, and another 1,500 at Jai-Alai. More could be added later, both parties said.

It calls for an up-front payment of $4 million from the parimutuels to in effect offset the expected $3.5 million cost of the election. The industry cannot legally pay for the election, but it can help with expenses related to gambling, such as security.

The agreement also would give the county 1.25 percent of the gross revenues of each machine during the first three years. By year four, the county would receive 1.5 percent of the first $250,000 of gross revenue per facility and 2 percent of gross revenues above that number.

Book and Burgess estimate each machine would generate between $214 and $275 per day after payouts to winners, which are generally a little more than 90 percent of the total wagered.

What that means, according to Book, is the state would receive in excess of $300 million a year to divvy up among its public school systems, and Burgess calculated the county would collect anywhere between $3 million and $8 million annually.

Broward commissioners were expected to vote Tuesday for a March 8 referendum there, but postponed a decision to continue negotiations with the industry.

State Rep. Randy Johnson, R-Winter Garden, who chairs the antigaming industry group No Casinos, said it would have made more sense if the counties had engaged the Legislature before creating their own rules.

''It could very well be the state decides to operate the machines, when and how many machines, and decide what class they are,'' he said.

But another parimutuel lobbyist, Jim Horn, said it's unlikely the state would interfere.

`WHAT-IF GAMES'

''The state can play a lot of what-if games, but they generally don't interfere with local decisions,'' Horn said.

Martinez, who said he has yet to see the actual 75-word resolution that could go before the public, called it a good deal for the county -- and the state.

''I think it will be good for education, but that's up to the Legislature,'' said the county chairman. ``If it passes, I'll lobby for the two counties to get a little more. But ultimately the state will decide on the division of money.''

The resolution before the commission next week is sponsored by commissioners Bruno Barreiro, Carlos Gimenez, Sally Heyman, and Dennis Moss.

Herald staff writer Tere Figueras Negrete contributed to this report.

Link to article

[Aessotariq]

A follow-up to this article

Posted on Thu, Jan. 13, 2005

CRIMINAL JUSTICE

Miami crime rate drops 9%

Miami's crime rate dropped 9 percent in 2004 compared to 2003, adding to a steady decline since 1993, Miami police said. The figure is the city's lowest in five years.

BY ELAINE DE VALLE

[email protected]

A combination of new strategies and programs have brought the crime rate in Miami down to the lowest point in five years, Police Chief John Timoney and Mayor Manny Diaz said Wednesday.

''Miami is actually doing better than most cities this size,'' Timoney said at a press conference to announce crime statistics. ``It's down across the board.''

Lt. Bill Schwartz, a department spokesman, said the overall decline in crime has been steady since 1993.

The total number of crimes in 2004 decreased by 9 percent when compared to 2003's crimes, according to department statistics. The crimes with the biggest drops last year were robberies and vehicle thefts -- both were down 19 percent. Sexual assaults also dropped by 12 percent, burglaries by 10 percent and homicides by 9 percent, officials said.

Timoney credited the drops to a mix of increased police presence, more aggressive follow-up by detectives, the narcotics division ''chipping in'' in troubled neighborhoods and sweep details such as Operation Difference that flood problem areas with up to 200 officers twice a month.

Timoney was asked how citizens could trust the statistics in light of the Broward Sheriff's Office scandal in which deputies were found to have falsified crime reports. He said he never applies pressure on district commanders to adjust the numbers.

''I don't believe in quotas,'' the chief said. ``I believe that if the police department gives it its all -- at the end of the day, at the end of the year -- things will be better.''

Only by knowing about crime increases can he shift or increase resources to combat it, Timoney said.

He cited a double-digit increase in crime in Little Havana at the start of the year that was brought down with the help of undercover officers from the narcotics unit.

While still reporting less crime than in 2003, Little Havana showed the least improvement, with only a 2 percent decrease in overall crime. But Timoney said that may be a reflection of the city merging the East Little Havana and West Little Havana areas.

''And the problem we have there, and we deal with it every day, is lower level quality-of-life crimes,'' Timoney told The Herald, adding that many crimes there are also linked to alcohol and drug use.

''It's something we're cognizant of and it's getting better,'' he said.

Arrests, on the other hand, are up 28 percent citywide, according to the crime statistics. They increased in all districts except the Upper Eastside, which saw a 4 percent decrease in arrests. The biggest jumps came in Coconut Grove and Allapattah, where arrests were up 75 percent and 63 percent, respectively.

''We've had a greater emphasis on quality-of-life crimes -- car break-ins, larcenies,'' he said, citing the mass-arrests program and the ripple effect it has on the drop in neighborhood crime.

Diaz credited Timoney's leadership.

''It's really remarkable the turnaround we've seen in the last two years since the chief arrived,'' the mayor said.

Full crime statistics report from City of Miami

Link to article

[Aessotariq]

LATEST NEWS

12:34 PM EST Thursday

Dolphins Enterprises names CEO

After three days in existence, Dolphins Enterprises has named its first chief executive officer - a former Dallas Cowboys and NFL executive.

The sports and entertainment company said Joseph (Joe) Bailey will be in charge of all Miami Dolphins and Dolphins Stadium operations, management, development, sales, marketing and merchandising. Before taking the job with the Dolphins, Bailey was a partner at Russell Reynolds Associates, the executive search firm that helped the Dolphins in their recent search that resulted in the team hiring Nick Saban as head coach.

Bailey is to report directly to Miami Dolphins owner H. Wayne Huizenga. He is also to work, day to day, with Nick Saban.

"Joe brings extensive experience in sports administration and marketing, as well as executive management," said Huizenga, a billionaire who has also headed South Florida companies including AutoNation (NYSE: AN), Boca Resorts and Blockbuster Entertainment (NYSE: BBI).

When Huizenga created Dolphins Enterprises, he also disclosed $425 million in plans for improvements and additions to what is now called Dolphins Stadium.

Such improvements could include remodeled club level and luxury suites, new scoreboards, parking structures to double as exhibition space, a permanent or retractable roof and shops, restaurants, offices, a hotel and potentially a residential component.

Bailey is to lead the effort to implement all of those plans.

"I am in perfect agreement with Wayne Huizenga's vision and bold plans to keep the team, the football organization and the stadium at the pinnacle of the sports and entertainment industry," he said in a news release.

But Bailey also showed his football roots with a clarification to his statement.

"Everyone associated with Dolphins Enterprises will never lose sight of the fact that winning on the field will always come first in everything we do," he added.

Bailey spent much of his career on football fields. He spent 19 seasons with the Dallas Cowboys, starting in the equipment and training room in the early 1960s. He became a player scout in 1970. He later became the team's business manager and eventually served as senior vice president of administration.

Once he shifted to Russell Reynolds, Bailey was the partner in charge of the firm's New York office after a stint as area manager for offices in Dallas and Houston. He led the company's entertainment, media and sports and corporate communication practices.

Other jobs include five years as senior vice president and chief operating officer at the World League/NFL and time as deputy commissioner and COO of the National Thoroughbred Racing Association.

NFL Commissioner Paul Tagliabue suggested Bailey's combination of experiences makes him uniquely suited for the Dolphins Enterprises CEO job.

"Our office has worked closely with Joe over the past two decades on a wide range of matters, including international business development, searches for top executives and programs in support of diversity in club and league hiring practices," he said in a news release. "He has a deep knowledge of all aspects of NFL and team operations and he enjoys the respect of everyone who works with him."

Tim Smith, former commissioner of the National Thoroughbred Racing Association, put it more succinctly: "The Dolphins have gained access to one of the best business minds in sports and entertainment. Joe Bailey is a very uncommon mixture of expertise, judgment, people skills and intelligence. I cannot think of a single individual with more credibility in the field as judged by his peers."

Link to article

[Aessotariq]

Posted on Thu, Jan. 13, 2005

ENVIRONMENT

Urban sprawl blamed for risk to nature

A national environmental report says sprawl in South Florida is putting rare plants and animals in increasing peril. Dade ranks No. 8 on the list.

BY CURTIS MORGAN

[email protected]

A handful of Florida counties, including Miami-Dade, Broward and Palm Beach, rank high on a nationwide list of communities where urban sprawl threatens rare species, according to a report released Wednesday by three environmental groups.

Miami-Dade ranked No. 8, with 58 imperiled species. Broward ranked No. 4 for development demand exceeding land supply. Palm Beach ranked No. 7 for land in the path of development.

Nationwide, the report contends sprawl in 35 major urban areas alone threatens some 1,200 species of plants and animals, including dozens in Florida. More than 500 live only in urban areas, including more than a dozen rare plants such as the tiny polygala, which hang on only in a patchwork of pine rockland in Miami-Dade.

''The first conclusion we can draw is we live where the wild things are,'' said John Kostyack, a co-author and attorney with the National Wildlife Federation. That fact, he said, puts a ''surprisingly high percentage'' of species at risk without sweeping land-use changes.

Planners and environmental regulators in South Florida echoed concerns that growth has an impact on everything from nature to traffic but also questioned some statistics used to compile the rankings.

One chart, for instance, placed Broward at No. 16 nationwide for counties with the largest amount of open space projected for development -- 231.9 square miles.

Bill Leonard, a senior planner with Broward, chuckled at that figure.

``Yeah, 231 acres maybe.''

BROWARD `BUILT-OUT'

Aside from some larger tracts in Miramar and Parkland, Broward is considered largely ''built-out'' with only scattered parcels remaining open, much to the disappointment of developers.

The groups -- the National Wildlife Federation, NatureServe and Smart Growth America -- said that ranking likely included land in private hands in massive water conservation areas west of U.S. 27, but Leonard said the potential for developing that area, critical for the water supply and the $8.4 billion Everglades restoration effort, is slim.

LOST HABITAT

Habitat for many of the rare species in Miami-Dade, particularly plants, also was lost decades ago in suburban development that has consumed all but 2 percent of the pine rockland forests.

While virtually all the remaining rockland is now protected from future development, either in national parks or in scattered preserves purchased by Miami-Dade, a 2000 study by a conservation group found that some species of plants had been reduced by other kinds of development including hiking trails and prison construction.

FIVE FLORIDA AREAS

Most of the hot spots in the report were in California and western states, but overall Florida had five areas among the top 35 fastest-growing urban areas, the second-highest total.

Despite that, the authors praised some Florida policies. Not for managing growth, which the state has not gotten a handle on, but for aggressively buying and protecting critical habitat.

''Florida has been a leader in taking a statewide view of its natural resources,'' said Bruce Stein, vice president for programs at NatureServe during a teleconference.

BOND PROGRAMS

Stein and other authors pointed to statewide bond programs that have purchased thousands of acres of land, among the land-use programs the groups said other communities should emulate. Miami-Dade and Broward both have had similar programs and voters in Miami-Dade approved bond issues last November that will provide another $40 million to buy ``endangered lands.''

The report does not name specific species threatened by growth and relies on a NatureServe database of ''imperiled'' species, which includes some 6,400 species, about five times more than the official federal list.

Dave Martin, a biologist in Vero Beach with the U.S. Fish and Wildlife Service, which monitors U.S. endangered species, said Miami-Dade's land programs and state efforts to buy land for Everglades restoration would help stabilize populations in Southwest Dade.

SOUTHWEST FLORIDA

He also noted the report ignored Southwest Florida, where growth is infringing on habitats for the manatee, Florida panther, and red-cockaded woodpecker -- all species that need large unspoiled areas to survive. The service, he said, had opinions pending on 25 projects there alone.

Robert Daniels, an assistant to the director of the South Florida Regional Planning Council, said local governments recognized the threat to the natural environment but admitted curtailing growth remains a challenge.

Said Daniels: ``Sprawl occurs everywhere in the country and everybody sees it as a problem but nobody knows exactly what to do about it.''

Link to article

[Aessotariq]

City of Miami Mayor Manny Diaz is featured on the December 2004 cover of South Florida CEO. It is a good read on the turnaround that the City has experienced during his administration and his management style.

[Aessotariq]

Posted on Sun, Jan. 16, 2005

MIAMI BEACH

Coral home to get tested

Miami Beach city commissioners breathed new life into a debate over the fate of one of the city's oldest structures, agreeing to spend $75,000 on testing.

BY NICOLE WHITE AND CASEY WOODS

[email protected]

The Miami-Dade County Unsafe Structures Board will meet this week to again discuss the fate of the historic, yet structurally unsafe, coral rock house in the heart of Miami Beach's historic district.

The privately owned building at 900 Collins Ave., has been at the center of a debate that has pitted a private developer, the city's building official and the city's preservation community against one another.

At the core of the debate: Can the house be saved?

Preservationists believe it can, despite an August declaration by the city's building department that it was structurally unsafe.

Miami Beach City Commissioners breathed new life into the debate Wednesday when they agreed to spend $75,000 to have an engineer study and test the structure to determine if it can be saved.

''This is a building that has been there . . . before the city was even created,'' Mayor David Dermer said. ``We have to give it a shot, especially in a world of historic preservation where some very unique things can be done to save a building.''

Only two commissioners disagreed: Jose Smith and Luis Garcia voted against providing the funds, saying it was an exercise in futility because several engineering experts have already agreed that the structure would prove difficult to preserve.

Carter McDowell, the attorney representing the building's owner, Ivor Rose, told the commissioners that the city has unfairly held his client in limbo for months, even though he has been willing to build a replica of the structure.

Commissioner Saul Gross said he believed Rose bought the structure knowing full well he had no intention of preserving it. He insisted the study should be done.

''This building has been a part of the social fabric of this community for so long that we should give it a try,'' he said.

The coral rock house, built in 1918, is one of four such structures remaining in the city, and is one of the five oldest buildings in Miami Beach.

In August, a Miami Beach building official declared the structure unsafe, saying its concrete lining and support walls were crumbling. Engineers hired by the building's owners said it should be torn down. Part of the roof later collapsed.

In November, the Miami-Dade Unsafe Structures Board gave the city a 30-day reprieve from a demolition order. In December, the board gave the city 30 more days.

City officials will go to the Unsafe Structures Board's meeting Wednesday and present the plan approved by the Commission. The board will either grant more time or issue a demolition order.

The meeting will take place at 1 p.m. Wednesday at 140 W. Flagler St., 16th floor.

Link to article

[streetscaper]

wow...that was alot of info (which is great)...I'm glad Florida is exerting effort to save wetlands and other environmentally sensitive areas from sprawl or development!

[Aessotariq]

Posted on Tue, Jan. 18, 2005

SLOT MACHINES

Ad blitz looming before a vote on slots

County commission decisions in Miami-Dade and Broward counties this week are expected to kick off high-intensity campaigning, for -- and against -- slot machines.

By ERIKA BOLSTAD

[email protected]

Brace yourself for the blitz.

Over the next month and a half, South Florida residents can expect to be bombarded by billboards, radio spots and telephone calls telling them why legalizing slot machines in South Florida would be a great boon.

And why it would be a terrible mistake.

Assuming both Miami-Dade and Broward County commissions vote this week to put slots on the March ballot -- a good bet -- the campaigns for and against permitting the machines at race tracks and frontons will commence.

Both sides should have big bucks to spend.

Expect the proponents of slot machines to seldom, if ever, utter the word ''gambling,'' but to stress the benefits that would accrue from allowing more of it. There will be plenty of campaign advertising and literature that focuses on the potential jobs created by adding slot machines and renovating the seven existing parimutuels, said Earl Bender, leading the pro-slots campaign.

The biggest challenge will be getting voters to the polls, especially in Miami-Dade County, where there is no history of March elections. In Broward, some 20 cities will elect leaders on March 8.

''We know we have overwhelming support among the voters,'' said Bender, a veteran of passing statewide ballot initiatives and the architect of the narrow November win. ``The question is, who knows there's an election?''

Millions of dollars are at stake for owners of the tracks and for Florida schools. Slots supporters, backed by state revenue estimates, say schools across Florida could gain $200 to $500 million from slots in the two counties.

The main pro-slots group -- with ties to Calder, Flagler, Hollywood and Pompano Park horse and dog tracks -- spent more than $14 million in its statewide campaign in November.

On the other side, two main political action committees opposed the slots measure. No Casinos, a coalition of anti-gambling, animal rights and business leaders raised $334,000, mainly from Osceola County, Disney and the Humane Society.

The second large opposition group -- No on 4 -- spent $5.6 million donated by the Seminole Tribe of Florida, which saw the measure as competition for its casinos.

Slots opponents hope to raise more money for this campaign, but also will be leaning on their grassroots network, said Paul Seago, spokesman for No Casinos.

''It'll be folks in the faith community, it'll be business, it'll be civic people,'' Seago said. ``It will always be our people versus their money.''

Officials in both counties have been negotiating deals that would bring upwards of $10 million a year from slots, plus money for the individual cities with parimutuels.

The money covers the social, law enforcement and miscellaneous costs of adding casinos to their communities, said Miami-Dade County Manager George Burgess.

''If it does happen, it would be prudent to have addressed those potential future impacts,'' Burgess said. ``Otherwise, they have to come out of the pocket of our local taxpayers.''

ONLINE: TO READ THE AGREEMENT BETWEEN MIAMI-DADE COUNTY AND THE GAMBLING INDUSTRY, GO TO TODAY'S EXTRAS AT HERALD.COM

Link to article

[Aessotariq]

New projects to double Miami's tax rolls, officials say

By Yeleny Suarez

Miami Today

Miami's construction boom will double the tax rolls of one of the nation's poorest cities by 2006, officials predict.

The $22.5 billion in taxable property on city rolls today would pass $40 billion if more than $17 billion in projects in the pipeline are completed. Rising taxes on existing property would add to that total.

"If everything gets built, our tax budget would double," Mayor Manny Diaz said.

And the city is forecasting that virtually everything will be completed.

Now, 233 major projects are in process, said Larry Spring, city budget and strategic planning chief, and everything that gets that far typically will be built eventually.

"From 2003 to 2004, we grew $3 billion in taxable value," Mr. Spring said. "Seventy-five percent was due to existing property and 25% on remaining new construction. As more and more new development is completed, the percentage of new construction will rise."

"The total tax roll today is $22.5 billion," he said. "I am currently putting together the budget forecast that will be completed in May. We expect a double-digit increase, another 10% minimum ($2 billion). But this is just a preliminary number. Expectations are that it will be larger."

The city's large-scale development report lists major projects awaiting approval. The number has increased by 24 since October, said Luciana Lamardo-Gonzalez, special projects coordinator for the city's planning department.

Listed are 233 mixed-used projects that would include 66,648 residential units at a projected construction cost of more than $17 billion, Ms. Lamardo-Gonzalez said. Of those, 32 have been finished at $2 billion; 33, for $3.7 billion, are rising now.

Another 64, at a cost of $7.9 billion, have been approved; 25, for $2.7 billion, are in the application phase; and 79, at $724 million, are in preliminary steps, she said.

"Looking at it as a seamless project, it would take about two years before hitting tax rolls," Mr. Spring said. "Next year, we estimate a double-digit gain in tax-base increase at a minimum, 15% over this year. This year was about 17%. Condos are moving strong - we estimate a 12% increase for 2006."

"At this point, there is no evidence of city projects slowing down," Mayor Diaz said. "I've met with developer Africa Israel, who has several plans for the city, and Royal Palm, none of which is yet in the city plan, so we are still growing."

Africa Israel Investments Ltd., an international holding and investment company, plans projects in Park West and the Omni area, the mayor said. The Performing Arts Center Trust is considering a deal with the firm to develop parking.

Much property in Miami is tax-exempt. The preliminary value assessment of sites exempt from taxes last year was a little more than $10.2 billion, or 31.2% of the $32.6 billion in total city property.

Real and personal taxes brought the city $178 million last year, up $22 million from 2003. Next year, Mr. Spring said, he anticipates another rise of more than $20 million. An estimate of growth in 2006 is due in May.

The jump in taxes is not a net gain. Costs rise with growth. "As the city becomes denser," Mr. Spring said, "additional expenses on police and firefighters are necessary."

Link to article

[Brickell]

wow.

yes, service costs will increase but it's much more economical to increase services in an area than to creat new services in a suburb.

Hopefuly the new money doesn't go to waste... this is Miami after all.

[Aessotariq]

Increased service costs are a given... however, if they keep this up (the growth, that is), they might be able to reduce the millage rate in the City, if only ever so slightly. Currently the city's 2004 tax rate is 8.71625, and with all the other taxes added, totals 26.23895. Compare that with the most expensive city over 5,000, Opa-Locka (9.800; 28.54770), which can barely keep police on the street. County UMSA residents pay 21.68070, which includes the 2.447 municipal services tax, plus 2.592 fire-rescue, 0.486 library, and debt service.

Jeez... flash back to 1997 and news like this would have been unimaginable and laughable -- the City was on the verge of bankruptcy and was almost dis-incorporated. They resorted to increasing garbage collection fees in order to keep from increasing property taxes. Definitely quite a turnaround.

[Urban_Legend]

The good thing is that alot of this development is concentrated in one great urban area, so they don't have to pave any new roads or do all that drainage and suburb mess.

[Aessotariq]

Not really newsworthy, but still interesting.

Posted on Fri, Jan. 21, 2005

UP FRONT | ARCHITECTURE

High-rises stir high anxiety

Don't look down: Views from the top of South Florida's tallest buildings are not for the faint of heart.

BY CARA BUCKLEY

[email protected]

The client was really sweating.

''Listen, relax, we're going to get you out of this,'' his lawyer, Dan Lurvey, said gently. But the client, fighting an impaired-driving charge, stayed frozen in his seat, a grimace twisting his face.

The two were sitting in Lurvey's sun-drenched corner office, hemmed in by floor-to-ceiling glass walls, on the 51st floor of the 764-foot Wachovia Financial Center, Miami's second-tallest building. Paradise yawned before them, with staggering sweeps out to the cerulean sea.

Fighting nausea, the client finally confessed. ''I'm not so worried about the case as I am about falling off the side of this building,'' he said. Lurvey sighed.

For people with a fear of heights, Miami and Fort Lauderdale are becoming ever more daunting cities. Both are experiencing unprecedented growth spurts, and reaching farther toward the sky. In Miami-Dade County alone, six buildings already stand at least 500 feet tall and dozens more of similar stature are in the works.

This can lead to awkward moments. While most people marveled at Lurvey's million-dollar view, it threw a crucial few into a swoon. Lurvey routinely was forced to meet his investigator in the building's lobby on windy days because she loathed heights and refused to come up. He and his firm's partner, Christopher Lyons, debated what to do. Their lease was almost up. Getting to their office already involved the minor hassle of transferring elevators near the top. And in those elevators, to the great anxiety of some, ears would pop.

''One of the things that concerned us was that clients wouldn't hire us because they wouldn't want to sit in the perils of the 51st floor,'' Lurvey said.

Grudgingly, Lyons Lurvey & Exposito traded in their great heights on South Biscayne Boulevard for a 16th-floor office in a Brickell Avenue building, home to decidedly less inspiring vistas of the Metrorail and a few treetops.

WHAT A VIEW

Most people relish a good view. It gives them a sense of perspective and makes them feel above it all. Though Sept. 11 unleashed fresh fears of very tall buildings, lingering anxieties seem to have abated.

America's tallest buildings, Chicago's Sears Tower and New York's Empire State Building, together draw five million visitors a year. Wendy Kallergis, manager of the private Miami City Club on the Wachovia Financial Center's top floor, say guests never blanche at the club's wraparound views. Topmost condos in Miami's tallest building, the 789-foot Four Seasons Hotel & Tower at 1435 Brickell Ave., sold faster precisely because of their height, said Rich Baumert, vice president of Millennium Partners, the building's developers.

But for an unnerved minority, the view from the top is a terrible thing.

Consider Jenny Montes, a secretary at the law firm of Ratzan & Alters, current tenants of the southeast corner of the Wachovia Financial Center's 54th floor.

Nearly all the firm's workers are enraptured by the view, and a few tourists have wandered in specifically to savor it. But Montes hates heights. Looking down makes her head dizzy and her stomach cold. Even after landing the job two years ago, when Ratzan & Alters was on the 29th floor, she fought jitters on the ride up. The firm's move to the 54th floor was nothing short of traumatic.

''Ay yi yi. I had an attack, I was sick about it,'' said Montes, her brow furrowing at the memory. ``I realized if I wanted to keep my job, I would have to tune it out.''

DENY, DENY, DENY

Montes' solution was to heartily embrace denial. She steers clear of the windows, rarely ventures into the corner offices and squeezes her eyes shut when window washers dangle from ropes outside.

A handful of clients share her anxiety, and insist that attorneys meet them downstairs and escort them back up.

At Miami's third-tallest building, the 625-foot Bank of America Tower at 100 SE second St., receptionist Peggy Franco intimately understands Montes' angst. It took Franco, who works on the 43rd floor, six months to muster the courage to approach the office's windows.

''I felt like I was going to fall down,'' she said. ``And in the elevator, the ears pop, you get all that pressure. I felt like I was in an airplane. And I have to take a pill to go in an airplane.''

AT DIPLOMAT

At Hollywood's 39-story Westin Diplomat Resort & Spa, 3555 S. Ocean Dr., Broward County's tallest building, guests in the uppermost presidential suites have hesitated before venturing onto balconies, and groused about ear pressure in the high-speed elevators that whisk them to the top.

But by and large, visitors and occupants in the top floors of all the buildings have found the views magnificent -- and undaunting.

Even at far taller buildings elsewhere, anxiety over heights seems limited to a forsaken few.

In Manhattan, Empire Diamonds, a jewelry company, has occupied a spot in the 1,250-foot Empire State Building since its opening in 1931, steadily working its way up to its current location on the 76th floor.

Over the years, company President Jack Brod recalls having to descend to the lobby to meet clients, diamonds clinking in his pockets, barely half a dozen times.

''They won't come up. This is an affliction, I tell ya,'' Brod said over the phone. ``But it's not widespread at all. Less than one in a million. As a matter of fact, I'm way more wary when I walk down Fifth Avenue.''

`A LITTLE SEASICK'

In the 1,450-foot Sears Tower -- the world's fourth-tallest building -- the Schiff Harden law firm, Chicago's oldest, fills the 66th to 75th floors.

David Milberg, the firm's director of marketing and communications, said clients never get woozy, as far as he knows.

But even he has gotten squeamish when the wind really blows and the building sways to and fro.

''My doors will open and close. The first time I got a little seasick,'' Milberg said. ``We kind of laugh when the building rocks. It's got its charm.''

Lurvey admits to missing his old spectacular Miami view, looking down at news helicopters and Chalks seaplanes and watching turkey vultures nest on nearby ledges.

But there are perks to his new office's less lofty heights: He only needs to ride one elevator to get to work. His clients no longer convulse in fear.

Yet his skittish investigator, alas, still balks.

''Sixteenth floor and she's nervous,'' he said.

Only now, at Lurvey's insistence, she rides the elevator up.

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[Aessotariq]

Posted on Fri, Jan. 21, 2005

CRIME STATISTICS

Unincorporated Dade crime down

BY SUSANNAH A. NESMITH

[email protected]

Reports of violent crime in the unincorporated areas of Miami-Dade County dropped 3.2 percent last year compared to 2003, according to statistics released by the police Thursday.

Over a five-year period, reports of violent crimes -- murders, rapes, robberies and assaults -- dropped 12 percent, county officials said.

The local decline follows nationwide trends -- violent crime has been dropping across the country for more than a decade as the population has aged. National figures aren't yet available for 2004, but violent crime fell 3 percent in 2003, according to the FBI.

The county also saw a 5.9 percent drop in burglaries and thefts.

During a news conference to announce the statistics, County Mayor Carlos Alvarez, the former police director, praised the Robbery Intervention Detail and the Tactical Narcotics Team -- specific efforts he said had contributed to the drop in crime.

''The work that the men and women of the police department have been doing has been extremely important,'' said Alvarez, who was joined by Police Director Bobby Parker.

Despite the overall decline in violent crime reports, the number of murders was up -- 84 in 2004 compared to 77 the year before. Incidents of rape were down, but they still hadn't dropped to 2001 levels, when they hit a recent low.

Visitor robberies almost doubled, but there were too few of them, 16 in 2003 and 30 in 2004, for that to be statistically significant.

''You have to remember, 11 million people came to South Florida and stayed at least one night last year,'' Alvarez said.

He said the rape statistics may reflect an increasing willingness of women to report rapes. Police have long known a certain portion of sex crimes go unreported because the victims feel ashamed.

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[Aessotariq]

Dollar's decline has European tourists flocking to S. Florida

By Rafael Gerena-Morales, Tom Stieghorst

and Karen-Janine Cohen Business WriterS

Posted January 17 2005

To learn how the falling U.S. dollar is lifting South Florida's economy, consider Thomas Feitkenhauer's trip to Palm Beach County this month.

Feitkenhauer, a catering executive from Dortmund, Germany, spent two weeks in early January at the Holiday Inn Highland Beach on a $99-a-night package that cost about 75 euros a night. At that price, "You can't find a decent resort in Europe on the ocean," he said.

During his stay, Feitkenhauer snapped up bottles of wine and took his family shopping at Marshalls, where he spent $600, he said. A swing in currency exchange rates over the past few years made the whole vacation possible. "Now everything is 35 percent off," Feitkenhauer said

As the dollar continues to fall in value against major world currencies -- which makes U.S. goods less expensive for foreigners -- Feitkenhauer's visit shows that overseas tourists are spending with more gusto. This has been a boon for South Florida, where hoteliers and retailers report a jump in business from foreign tourists.

Also, the dollar's weakness "means that domestic travelers will likely stay" within the United States and take more Florida vacations, said Lynn Reaser, chief economist at Banc of America Capital Management in St. Louis.

The U.S. dollar has continued to slide against the euro, Canadian dollar and Japanese yen, despite a slight rally early this year. Since September, for example, the dollar has dropped 7 percent against the euro.

In the short run, a weak U.S. dollar is expected to boost exports by making American goods more affordable to overseas shoppers. This has helped U.S. manufacturers and other American firms that sell their products abroad.

The downside, however, is that a weak dollar makes imports more expensive, which raises costs for U.S. consumers on foreign-made goods and could spark higher inflation.

The dollar has not lost ground everywhere. Many Asian countries, such as China, peg their currencies to the dollar. For example, the Chinese yuan trades at a constant 8.27 units to one dollar. In fact, that fixed-exchange rate has been a source of friction, as the United States argues that an artificially weak Chinese yuan is helping cause a flood of Chinese imports.

Most foreign currencies are outmuscling the U.S. dollar, though. That's putting a smile on the face of many South Florida retailers as foreign tourists, such as Sandra Gauvin of Quebec, exert their buying power. Canada's dollar has gained about 7 percent against the greenback since September.

During a recent trip to the Aventura Mall in Miami-Dade County, Gauvin treated herself to one of America's most-prized consumer goods: an iPod digital music player.

Gauvin, who has been coming to South Florida for about 15 years, says a stronger Canadian dollar means that this year, "we buy more and go more places."

Such confidence has cash registers ringing even for small retailers, such as the Link to Link jewelry kiosk in Boca Raton.

Earlier this month, Swedish, German and Hungarian shoppers seemed flush with funds, said Jackie Kaufman, owner of the kiosk at the Town Center at Boca Raton mall. "They are not price-watching, they are not looking for sales," she said. "They seem to be buying the more expensive things."

Kaufman said she is even selling jewelry made in Europe to Europeans.

Some economists say the dollar's decline can be blamed partly on widening U.S. budget and trade deficits. These shortfalls place supply-and-demand pressures on the currency.

To finance its budget deficit, the U.S. government has to sell more government bonds known as Treasury bills and notes. As the U.S. government floods the global market with new Treasury notes, the value of the notes, and dollars, in circulation falls.

In fiscal 2004, the U.S. budget deficit was $445 billion, up from $375 billion in 2003. However, the deficit is projected to be trimmed to $331 billion for the fiscal 2005 year ending Sept. 30, according to the U.S. Office of Management and Budget.

A widening U.S. trade gap also hurts the dollar. It means that dollars are flowing out of the country to pay for foreign goods, such as oil, creating a supply spike in dollars that weakens the currency's value.

On Wednesday, the Commerce Department reported that the U.S. trade deficit in November jumped to $60.3 billion, the highest level ever, as demand for foreign oil and consumer goods pushed imports to a record level. The November trade gap was up 7 percent from the previous high of $56 billion in October.

Despite these pressures, many economists expect the dollar to strengthen in the second half of the year on the assumption that the Federal Reserve Board will continue to lift short-term interest rates and that the economy will continue to expand.

Meanwhile, South Florida hoteliers say they're seeing more Europeans and Canadians this winter. And some of these tourists -- buoyed by their buying strength -- are staying up to a week longer at places such as the Winterset Motel Suites in Fort Lauderdale.

Robert Poirier, the Winterset's owner, says his motel is littered with clues that reveal the shopping strength of his foreign clientele: "My garbage can is full of boxes," Poirier said. "Especially shoes."

Link to article

[Brickell]

http://www.miami.com/mld/miamiherald/10705653.htm

Broward outpaces U.S. in job growth

Gains in white-collar fields and tourism produced the strongest growth in years for both Miami-Dade and Broward counties. Payroll expansion was double the national rate.

BY GREGG FIELDS

[email protected]

South Florida's job market galloped forward in 2004, new figures show, with Broward County expanding payrolls more than twice as fast as the rest of the country and Miami-Dade seeing unemployment sink to its lowest levels since the Internet boom went bust.

In December, Broward had 18,100 more jobs than a year earlier, a gain of 2.5 percent. In contrast, the national pace in employment growth was 1.2 percent.

It was enough to send Broward's jobless rate down to 4.1 percent from 4.7 percent a year earlier.

''From my perspective, what's driving it is that some of our traditional strengths that had been soft regained vitality during the year,'' said Nick Castaldo, a lecturer in management and marketing at Nova Southeastern University. ''I'm talking about areas like tourism and trade.'' Numbers bear out Castaldo's sentiments.

Powered by developments like the new Seminole Hard Rock Hotel & Casino, accommodations and food services put an additional 1,900 people to work in Broward last year, a 3 percent increase that left the sector with a total payroll of 66,100 people.

But construction also scored impressive gains in the year, as the South Florida building boom gained traction. In the last 12 months, construction firms have created 3,000 new jobs, bringing the total to 48,500.

The growth rate of 6.6 percent was the strongest of all the sectors measured by the state.

MIAMI-DADE FIGURES

Similar strength, though somewhat muted, was found in Miami-Dade.

Metropolitan Miami saw a gain of 17,700 jobs, or a 1.7 percent growth rate.

Construction grew 4.3 percent, or 1,800 jobs, while financial services saw a 2.2 percent expansion that translates to 1,500 jobs.

Accommodation and food services increased by 2,300 positions, or 2.8 percent.

The growth sent unemployment in the Miami area down to 5.4 percent, compared with 6.2 percent at the end of 2003.

''That's the lowest since 2000, when it averaged 5.3 percent,'' said Frank Nero, head of the Beacon Council, Miami-Dade's development agency.

For both counties, last year's performance represented a significant acceleration in the job base compared to previous years.

Between December 2002 and December 2003, for example, Broward added just 7,700 jobs, or well below half of the 12-month period just ended. Miami-Dade gained 7,800 jobs in the same time frame, for a growth rate under 1 percent.

Statewide, the Florida unemployment rate of 4.5 percent compared favorably to the 5.4 percent national figure.

However, the December Florida figure did represent a slight uptick from November's 4.4 percent, although it remains safely below the 4.9 percent of a year earlier.

In both Miami-Dade and Broward, a strong surge in white-collar work reflects a budding trend in job development here -- a long-sought diversification away from just tourism and trade work.

PROFESSIONAL SERVICES

Professional and business services, which includes a broad swath of occupations in fields like law, accounting and architecture, rose by 6,700 jobs in Broward and 8,100 positions in Miami-Dade.

''Florida has always been an easy place to do business, but that's gaining traction in more professional services,'' said Castaldo, of Nova.

``And in South Florida, there's a nice quality of life.''

[Aessotariq]

Always great to hear about diversification of our economy...

[Aessotariq]

Posted on Sat, Jan. 22, 2005

REAL ESTATE

Chicago group bets on Florida condo market

A Chicago joint venture group is betting big on condominium conversions, as investors continue buying apartment buildings to sell as condos in South Florida.

BY MATTHEW HAGGMAN

[email protected]

A year ago, Chicago development group MCZ/Centrum owned no property in South Florida.

But in the last nine months, the company has spent nearly $400 million snapping up apartment rental buildings in Miami-Dade and Broward counties. The reason: It is converting each property into condominiums to quickly sell in the region's sizzling condo market.

Amid South Florida's condo boom, many developers are betting that buyers will jump at a unit they can immediately purchase and occupy, rather than place a down payment on a unit in a new condo tower that will take more than two years to construct.

MCZ/Centrum has already sold out and converted one building -- the Wave on Hollywood Beach -- with others set for closings. If all goes as planned, said MCZ President Michael J. Lerner, it will result in a cool $750 million in sales.

''We are bullish on South Florida, like everyone else,'' Lerner said, who is aggressively scouting for new conversion and construction projects across the state.

In November, buyers pitched a tent and waited in line for several days hoping to get a chance to buy a condo at Miami Beach's The Mirador. The Miami-based Crescent Heights, one of the biggest condo converters in the country, switched The Mirador from apartments.

Real estate brokerage CB Richard Ellis in Miami finished 2004 with $2.6 billion in sales and financing for multifamily properties. Sixty percent of that were condo conversions.

''In 2004, our team more than tripled our transaction value total for 2003,'' said Jay Massirman, CB Richard Ellis executive vice president. And he predicted that investment in condo conversions would keep pace in 2005.

This month Hollywood-based SunVest Communities' bought the 36-story Summit Brickell View in Miami for $82.5 million.

''It makes sense,'' said real estate sales and marketer Rosalia Picot, who has represented MCZ/Centrum. ``No. 1, you have a ready inventory and you still have a great climate for interest rates. For a developer you have immediate gratification and you know what your costs are.''

Some new-construction developers have been dogged by rising construction costs that in some cases have forced them to return reservations for units and raise condo prices.

MCZ/Centrum is a joint venture between Chicago developers MCZ Development and Centrum Properties.

Each had largely focused its development -- which includes new construction -- in the Midwest. MCZ/Centrum was formed to develop in Florida.

Last March, it bought its first South Florida property, the 551-unit apartment that it turned into the Wave on Hollywood Beach.

It has since bought a 943-unit building, The Tides on Hollywood Beach, and the 436-unit Cite condominium on Biscayne Boulevard in Northeast Miami's Edgewater section.

Most recently, in December, it paid $43 million for a 253-unit Hollywood rental apartment complex, Jefferson at Young Circle. Massirman brokered the sale of the property, located on each side of Van Buren Street near Hollywood's Young Circle, by Texas-based real estate company JPI.

Critics have alleged that the city of Hollywood, which owned the land leased by JPI for the Jefferson at Young Circle apartment complex, agreed to sell the land at a steeply discounted price so the proposed sale could go forward.

Last week Broward New Times columnist Bob Norman lambasted the city in a column for selling the land to JPI for $58,000 when the property was appraised in excess of $2 million.

The city of Hollywood defends the deal, saying it was the best price for land under a long-term lease.

Link to article

[Aessotariq]

Posted on Mon, Jan. 24, 2005

Condo-hotel concept latest building boom

By Douglas Hanks III

[email protected]

It took the Falor family only 21 months to assemble one of the most diverse hotel portfolios in South Florida -- seven prime properties from Islamorada to Coral Gables.

''What is the old saying? Make money while the sun shines?'' Robert Falor, 36, said during a recent lunch at The Tides, the 45-room celebrity haunt in South Beach his family acquired last year for a whopping $588,000 a key. ''The climate is perfect to execute our business plan.''

He wasn't talking about the weather -- at least not directly. Instead, the president of the Chicago-based Falor Cos. meant the current boom of condo-hotel properties, where hotels sell off their rooms individually to buyers.

More than 30 such projects are either open, under construction, or planned from Fort Lauderdale to Key Biscayne.

Already, the concept has changed how South Florida builds luxury hotels with developers turning to the real estate market instead of banks to fund construction costs. By selling ownership of the rooms in advance, developers secure more than enough money to build the hotels without the risk of making loan payments in the rocky early years of a hotel's debut.

Analysts note that only a handful of condo-hotel properties have been open long enough to offer comparisons for potential buyers, and there's no consensus on whether the units make good investments. Tourism officials also worry that the move toward individual ownership of hotel rooms could leave too few beds for tourists, as well as put pressure on the number of hotel rooms available for large conventions. Such conventions typically need thousands of rooms reserved years in advance.

''If you own one of those units, I don't know when you're going to use it,'' said David Kelsey, head of the South Beach Hotel and Restaurant Association. ''You can't guarantee you will have the room available for conventioneers.''

But nothing seems to be cooling developers' enthusiasm for condo-hotels and their quick access to cash.

Last week, the owner of the Sonesta Beach Resort on Key Biscayne announced it will raze the 294-room property to make way for a condo-hotel complex, and Ian Schrager's ultra-hip Shore Club has quietly begun compiling a waiting list for buying its 325 rooms. Fort Lauderdale's tourism boosters also are salivating over a wave of luxury hotels slated to open in that former low-budget paradise for spring breakers -- projects financed as condo-hotels.

A BIG APPETITE

Then there is the Falor appetite for acquisitions. In May 2003 the family -- David, the chairman; Robert, the president; and Chris, director of renovations -- closed the deal on their first conversion project: the Cheeca Lodge resort in Islamorada, home to George H. W. Bush's annual bonefish tournament. From there they scooped up the Mayfair House, a famed if faded hotel in Coconut Grove.

Then the Falors turned to South Beach, buying the Breakwater and Edison, and then the $500-a-night Tides, once owned by record mogul Chris Blackwell.

Next came the Royal Palm -- 417 rooms on the ocean, a major convention-headquarters hotel and the fourth largest resort in Miami Beach. Waiting for that deal to close, Falor signed a contract to buy the Omni Colonnade, an upscale business hotel in downtown Coral Gables.

The company is also converting a Chicago hotel and have two more under contract, along with one in Los Angeles and Boston.

People familiar with the deals say the Falors scooped up the prized South Florida properties by coming in early with strong offers and promising quick closings.

''They're very aggressive,'' said Scott Podvin, a real estate lawyer with Stearns Weaver in Miami who represented the Falor Cos. on the Mayfair deal. ''That's part of their strategy: Let's beat others to the market.''

Though the Falors have feuded with business associates in the past [see below], their condo-hotel ventures seem to be generating a mostly warm welcome.

And some industry leaders who had expressed concerns about condo-hotel conversions say they're reassured by the Falors' pledge to reserve rooms for conventions.

''Before I met with David and sat down with him, I was concerned,'' said Stuart Blumberg, president of the Greater Miami & The Beaches Hotel Association. ''He understands the business. He's not just someone coming in the front door, converting and let me take my carpet bag and move on.''

RENTAL POOL

Developers dismiss critics' concerns about a potential shortage of hotel rooms, saying most owners turn their units back to the hotel's rental pool. And they note the condo-hotel model is creating rooms when most banks won't fund hotels.

''To the extent it puts more hotels into the inventory, it's a good thing,'' said William Talbert, president of the Greater Miami Convention & Visitors Bureau.

By passing on debt, property taxes and other costs to unit owners, condo-hotel developers open a property with an instant profit on the real estate.

''You don't have to wait five years to sell your project,'' said Francis Nardozza, chairman and chief executive of REH Capital Partners, a Fort Lauderdale investment firm. ''Essentially, you're selling it on Day One.''

In return, unit owners -- who can pay in the low $100,000s for small hotel rooms or more than $1 million for an oceanfront suite -- get free stays in upscale hotels, instead of the housecleaning and shopping that often comes with a vacation home.

And when the owner leaves, the unit is offered for rent on a daily basis without any hassles for the owner. Unlike time-share units, which generally plunge in value with age, condo-hotel rooms offers the prospect of appreciation, or at least recouping the original purchase price.

Unit owners split operation costs with the hotel in exchange for a share of the room's rental income, typically about 45 percent. But with many hotels losing money their first few years in an always competitive and seasonal market, condo-hotel units are unlikely to be cash cows, the experts said.

''If I had to give someone advice -- and I probably shouldn't be saying this -- I would say don't buy a condo-hotel unit as an investment. Just don't do it,'' said Ricardo Dunin, who opened the Mutiny in 1999 in Coconut Grove, the first South Florida condo-hotel project since their scattered use as a tax-shelter died off in the 1980s.

BUY IT, USE IT

''The reason you buy a condo-hotel is for use,'' Dunin continued. ''And [when] you're not there, then it's being rented and maybe you pay for your costs.''

Federal securities law bars developers from marketing condo-hotel units as investments, but there's little question investors are fueling many of the projects' pre-sales. ''Ninety-five percent of the time [buyers are] really more interested in an investment than in a vacation home,'' said Joel Greene, president of the Condo Hotel Center brokerage in North Miami

If that's the case, then that pool could dry up if the first generation of condo-hotel projects generate too little cash and too low resale prices. But vacationers scooping up the units would be another story.

''If that is, in fact, the end user, I don't think there's an end to the demand,'' said Gregory Rumpel, the Jones Lang LaSalle Hotels vice president who helped broker the Falors' Colonnade and Cheeca deals.

Hotel markets in Latin America, Europe and Australia have been building condo-hotel projects since at least the 1980s, but the concept was mostly isolated to ski towns in the United States. Then the Mutiny opened, signaling the start of a trend that spread quickly through South Florida.

The last two years saw developers across the country tip-toe into the concept. The Trump International Hotel and Tower in Chicago -- where Bill Rancic went to work after The Apprentice -- is a condo-hotel property. Aventura-based Turnberry Associates launched the first Las Vegas condo-hotel last January, and other developers are following suit.

The Falor Cos. says it has $1.2 billion worth of property either under contract or in its portfolio and has plans for more acquisitions.

Admirers point to the company's experience running hotels. David Falor used to head up sales at the old Americana hotel in Bal Harbour and the Falor Cos. made most of its money buying and repositioning hotels. ''You have to understand the hotel business to understand the condo-hotel business,'' said Ezra Katz, chairman of the Aztec Group hotel brokerage, which is working with the Falors.

JETTING TO DEALS

The Falors have assembled a set of investors to fund the acquisitions, capped by a $45 million commitment from the Miami-based Mitchell Cos. In addition to cash, Guy Mitchell brought a Lear jet to the partnership, allowing him and Falor to crisscross the country in pursuit of deals.

A company press release says the Falor Cos. has more than $400 million pledged from equity investors for future acquisitions, and the company is scouring the country for markets where it can pioneer the concept, too. ''We want to be the first into a market where condo-hotels do not exist today,'' Robert Falor said. ''Because we want to set the prices.'

[Aessotariq]

Here's a neat graphic with all the condo-hotels in Dade and Broward counties. Original PDF is here.

[Aessotariq]

Posted on Mon, Jan. 24, 2005

EDITOR'S NOTEBOOK

Condo-hotels are this year's urban chic

MIMI WHITEFIELD

[email protected]

If 2003 was the year of the loft in South Florida real estate circles, then this is the year of the condo-hotel.

Two years ago reporter Doug Hanks wrote about loft mania. At the time, developers hoping to capitalize on urban chic had announced more than 50 loft projects. Although soaring lofts in old industrial areas of New York sometimes have as many as 5,000 square feet, some of the South Florida lofts -- built new from the ground up -- only had 800-square-foot units.

Now the latest real estate/tourism trend is the condo-hotel, and it involves buying an even tinier living space -- essentially a hotel room or suite.

In this week's cover story, ''The Condo-Hotel Gambit'', Hanks writes that more than 30 condo-hotel projects have been built, are being converted or are planned from Fort Lauderdale to Key Biscayne. Others are planned in The Keys.

Developers -- including the Falor Cos., which has been especially adept at snapping up prime condo-hotel properties -- like the projects because by selling ownership of rooms in advance, they get an ample supply of cash to build hotels without taking on the risk of hefty loan payments during the often dicey early years after a hotel debuts.

A condo-hotel allows buyers to own a vacation home but without the hassle of maintenance. When owners lock their doors, their units go into a pool of rooms available for rent on a daily basis.

Hanks found the story intriguing because there are still so many unanswered questions about condo-hotels. Will they be good investments for unit owners? How will multiple ownership affect hotel maintenance and major renovations a decade down the road?

Will the large number of units being sold as condo-hotels have an impact on convention bookings? Planners for large conventions often need to book huge blocks of rooms years in advance, and critics say it may be difficult to gauge when owners want to use their units.

Hanks points out, however, that without the condo-hotel concept, some of South Florida's premier properties might not have been built. Among them are the Four Seasons, the Ritz-Carlton Key Biscayne, and the soon-to-be-built Canyon Ranch.

Link to article

[Aessotariq]

This article appeared in El Nuevo Herald, the Spanish-language newspaper published by Miami Herald Publishing Company. It was an interesting article, but it didn't appear in the Miami Herald. The sprawl continues. Here's the article, translated below:

PART ONE OF A SERIES

Homestead transforming itself at an unstoppable rate

CASTO OCANDO

El Nuevo Herald

Homestead, the second oldest city in South Florida after Miami, is currently undergoing the most radical transformation in its 92-year history, a place where the great phoenix is rising from the ashes with the most ambitious development in the county, twelve years after being practically devastated by the powerful Hurricane Andrew.

While an army of investors and builders continues non-stop through the ample open stretches of land in the southern part of the county, in an near war of occupation, thousands of acres of farmland that formerly grew tomatoes and corn are being taken over by a new "harvest," one that is forever changing the face of Homestead.

Like mushrooms that teem in the forest after a rainstorm, thousands of new dwellings are literally popping up on the last remaining swaths of undeveloped land in Miami-Dade, to try to quench the thirst for real estate that leaves the throats of new residents, investors, and vistors from three continents dry, attracted by Miami's real estate market.

"What is happening in Homestead is part of the structural transformation that that is occurring within the South Florida economy," asserts professor Antonio Jorge, an economist at Florida International University.

According to Jorge, the urban growth in Homestead is such that it's turning Miami-Dade County into a gigantic metropolis, a phenomenon known as "conurbation," which occurs when nearby cities and towns start to blend together, forming a continuous urban area.

"Now it's not a simple boom. This is mega-growth," says Oscar Ernand, a financial expert of the American Building Alliance, a homebuilder building in Homestead.

"Before, banks did not want to finance projects in Homestead; now they're all dying to get a piece of the action on loans from all the construction in the area," he adds, who was formerly vice president of Eastern National Bank, in Miami.

"People are buying in Homestead like crazy," says Xiomara Castillo, a residential property specialist with Keyes. "It has the greatest amount of development in Miami-Dade, and it has the lowest preconstruction prices in the county."

According to Castillo, "Some people don't care about the distance and some are doing it as an investment. Others simply want a property and have to buy it in Homestead, because it is more affordable."

"Basically I moved to Homestead because the prices were more attractive," says Jes

[Aessotariq]

Posted on Tue, Jan. 25, 2005

BROWARD COUNTY

Car rental complex will ease squeeze at airport

Relieving congestion on the roadway and shortening the trek for customers, the new rental car center at Fort Lauderdale-Hollywood opens Thursday. It is expected to be the nation's largest such center under one roof.

By INA PAIVA CORDLE

[email protected]

A consolidated car-rental center believed to be the nation's largest will open Thursday at Fort Lauderdale-Hollywood International Airport, a change that should clear traffic congestion outside the terminals.

Dozens of rental car shuttles now clog the roadway, slogging more than four million miles a year of stop-and-go travel as they ferry passengers to and from scattered rental outlets. The shuttles will be replaced by a short-run bus.

''There is a constrained road system in the airport, and traffic is bunching up for us. You can get cars queuing up,'' said airport spokesman Jim Reynolds.

``It's a cost-effective way to increase the road capacity by taking the [shuttles] off the roadway.''

Renting a car should become less of a hassle at the nation's fastest-growing major airport, with all business conducted out of the same complex.

Designed to bring together nearly all the firms that rent cars at the airport, the nine-story, 4.1 million-square-foot building will also provide 5,500 airport parking spaces by late spring or early summer.

Latching onto a new trend in rental car facilities, the project has been in the works since 1999 and under construction since January 2002. Its $247 million price tag is being paid partly by daily rental-car customer facility charges of $2.75 a day, which began in September, Reynolds said. The fees are capped at seven days.

Initially, rental car companies Alamo, National, Avis, Budget, Dollar, Thrifty, Enterprise, E-Z, Hertz and Royal will relocate at the new center, which opens at 3:30 a.m. Thursday. Two more firms, Payless and Continental, will move in later.

BIGGEST CHANGE

For renters, the biggest change is that the new facility will mean a shorter trek to pick up or drop off a car, Reynolds said. The building can be reached by a moving walkway from Terminal 1 or a short bus trip from any of the other terminals.

Susan McGowan, spokeswoman for the Cendant Car Rental Group, the parent of Avis and Budget, said the center should benefit customers.

''Among the consolidated facilities around the country, this is one of the only ones that is close enough to walk to it,'' she said. ``That is a big improvement.''

Drivers will notice the same enhancement.

''One of the real problems this airport has had is that the rental cars have been scattered around Perimeter Road, and a number of them were on lots close to the airport but extremely difficult to find,'' Reynolds said. ``It was a real problem for people trying to catch a plane to return a rental car.''

Now, the new building is the first drivers will see on their left on the main road.

''You make the first left and bang! You are there,'' he said.

``So returning the rental car is a snap.''

Ed Stanton, who recently flew into Fort Lauderdale and rented a car from Budget, had to plan his time to give himself an extra 20 minutes to return his car.

''That's great that they are putting that in,'' said Stanton, acquisitions manager for the commercial real estate investment firm DBSI Group. ``Saving time is always important to anybody.''

Dozens of rental car buses currently jam the roadway and curb. Combined, they make 1.2 million trips of four miles each per year, Reynolds said.

The new airport bus, with Rent A Car Center posted on its sides, will pick up passengers at Terminals 2, 3 and 4 and take them to the facility.

The bus will pass by the terminals every three to four minutes during peak hours and every five or six minutes during off-peak times.

Inside the new facility, floors two, three and four will look like a rental car mall, with counters for the rental-car companies. Passengers can reach the different floors by escalator, elevator or spiral staircase -- all in an atrium-like setting, Reynolds said.

The building is the biggest in the country, said Reynolds, who checked that fact with Fort Lauderdale airport officials.

Customers who rent from companies that are not located at the center -- smaller outfits like Ace, Sunshine, Gold Coast, Special Rentals, Specialty Auto Rentals, Lauderdale-by-the Sea -- will take the bus to the center and then take a second bus to their rental location.

Consolidated rental car centers are springing up around the country, in Portland, Ore.; Minneapolis and Dallas-Fort Worth.

Miami International Airport plans a similar center, which will be at the Miami Intermodal Center, about a mile from the airport.

TO OPEN IN 2007

That facility's $190 million rental car center is under construction and slated to be completed in March 2007, said Miami-Dade interim Aviation Director Carlos Bonzon. Fifteen rental car companies have already agreed to use it, and the county has asked for proposals for a people mover operator to transport passengers from the airport to the center.

The center should also relieve congestion at MIA by eliminating minibuses.

Tri-Rail, Metrorail and buses will also converge at the intermodal center.

''It will be like the Grand Central in New York,'' Bonzon said.

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