$1.14 Million Skate Park Coming to 19th street at OMNI

(As reported by Adam Mizrahi of Urban City Architecture)
A new skate park is coming to “passive Biscayne Park” (I don’t know if you can really call this patch of grass a park) – making this the first public skate park in the City of Miami. Located at 150 NE 19th St in Miami the funding, estimated at just over a million dollars, has already been approved by commissioners.
As Downtown has grown and people have begun to move in there has been a sharp increase in the number of kids skating through Brickell and Downtown. Every day I see groups (5-30) of kids skating around the corporate plazas and parks of the area. Providing a public, safe, and creative urban space for them is a great idea! What currently is a rather drab and mediocre area of town will get a rather interesting and unique attraction that many people are sure to visit — even those from outside downtown.
Furthermore, this skate park will serve as another attraction for Downtown Miami — meaning this will be another reason to move to downtown and the surrounding areas! A part of town that now lacks enough pedestrians and “eyes on the street” to make the area feel safe (especially at night) will get a valid activity that will have various groups of people out on the streets. This is not just another passive park — it will be an active, unique, and diverse park that will breathe life into the urban fabric. Yet another (interesting I must say) piece of the city is coming together.
As residents continue to move in this trend should continue. New residents moving in will create more demand — just as kids skating in the streets has created a market for a skate park other needs must be fulfilled. Can anyone say diner, bookstore, or movie theater?
Also interesting is the fact that the skate park will be next to the old City of Miami graveyard. While some have voice objections – I think it is quite interesting and rather nice to have a cemetary next to a park — even if it is a skate park. Cities must encourage the diversity, mixing, and varied interactions that make cities great. In San Francisco, the Mission Dolores graveyard is directly next to and in plain sight of the elementary school playground and basketball courts.
In my opinion, within a dense urban environment kids skating next to a graveyard is perfectly acceptable and rather poetic (if I may say). These kinds of interesting urban interactions are what makes dense cities interesting incubators of human diversity, drama, and spontaneity.
For more information, the Biscayne Times has a wonderful article on the story.

Villa Magna Park plans in the dustbin. Brickellites continue to take their dogs to Pace Park.

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Plans to build a temporary park on Brickell's last prime bayfront parcel are all but dead. The license agreement for the project was withdrawn during last week's Miami commission meeting, marking a major setback in the quest for parks in the Brickell corridor. Developer Tibor Hollo, chairman and president of Florida East Coast Realty, and Commissioner Marc Sarnoff announced in December the two had reached a deal for the developer to lease the 2 acres at 1201 Brickell Bay Drive to the city for three years for $1 a year. Mr. Hollo planned a luxury hotel and condo development there but wanted to wait for a market rebound. Mr. Sarnoff said the developer caused plans to fall apart by bringing in an element that wasn't part of original discussions. "They wanted to have substantial change made to the MUSP (major use special permit)," he said, adding he didn't know what the exact change was. Miami requires major use special permits for large-scale developments. The city was to grant Mr. Hollo an extension to his permit in exchange for use of the land. Mr. Hollo denied the park project was halted because he requested a permit change. He added he still plans to develop a luxury hotel and condos there. He said the delays were caused by "the city's legal department" and that his intentions were to ensure the license agreement's language guarantees that the land returns to his ownership. "We want to make sure that the parcel cannot be taken from us because we've given it to the city for nothing," he said. City Attorney Julie Bru said some issues surfaced that weren't part of the original agreement between the parties but said she couldn't give further details. The initial agreement for Villa Magna Park called for the city to build a passive park with a dog park and a children's play area. Mr. Hollo would build pathways and install benches and the city would pay for landscaping and fencing. The developer would pay all ad valorem property taxes on the site during the lease, but the city would cover liability insurance and incur costs of any park-related lawsuits. Ms. Bru insisted her department wasn't responsible for delay. "I do not believe there is anything my department is waiting on for further action on my behalf." She said Mr. Hollo's legal team is still reviewing lease documents and could propose further action. Mr. Hollo said he's not calling off plans for the park, adding he just wants to protect his property. "We are willing to do this as long as the (city's) legal department is willing to protect us," he said. But Mr. Sarnoff said negotiations are over. He was excited about the prospect of giving Brickell a bayfront park, he said, but under the current situation it's better to part ways with the developer. Villa Magna Park was to be the first park built under Mr. Sarnoff's green spaces program, an effort to turn empty lots into parks through voluntary agreements with property owners. But he said he's talking with other developers. Mr. Sarnoff said he planned to meet with his staff Tuesday afternoon to define a "more definite program" to "avoid setbacks" such as this.

Actual Link from:
http://miamitodaynews.com/news/090219/story5.shtml

Rubber Wheeled Trolleys for Miami Streets

Miami is prioritizing four transit projects for its share of the transit dollars: rubber-wheel trolley systems for downtown Miami, Coral Way, Overtown and Allapattah. Each system is estimated at $700,000 to $850,000, a city project list shows. Mr. Gonzalez said one trolley route is to connect Brickell and downtown Miami, a second is to connect the Allapattah area with the Health District, a third is to run from Overtown/Park West to the Health District and a fourth is to serve riders along the Coral Way corridor. City Manager Pete Hernandez said the number of routes the city can fund depends on how much money is available, but the idea is to fund the busiest areas with the biggest transit needs. For example, he said a downtown trolley would connect the bustling downtown and Brickell areas, which are separated by the Miami River. "It would facilitate the movement of the workforce and residential component in that area," he said. The Coral Way trolley route, he added, would link Brickell to Coral Gables. Mr. Gonzalez said to fund the trolley systems long-term — after the stimulus is long spent — the city is looking at placing advertising outside and inside the vehicles and charging a nominal fare of 25 to 50 cents. Before any money is spent, Mr. Hernandez said, the city commission will first have to approve the trolley projects to receive funding. In November, the commission approved a trolley system along the Health District funded by a three-year joint participation agreement between the city and the Florida Department of Transportation, each contributing $374,000. The city's portion is to come from its share of the half percent transit surtax proceeds from the People's Transportation Plan. The city plans to request proposals for a firm to provide vehicles, drivers, fuel, maintenance and vehicle storage for the Heath District route. The city would oversee, monitor and finance the trolley system. The firm's contract is to include an option to add more routes depending on how much is received in transit stimulus money, Mr. Gonzalez said.

Read the full story at http://miamitodaynews.com/news/090312/story7.shtml

Plans for Two-tower residential, hotel and retail complex in OMNI Miami

(Click on Pic to enlarge) A local developer looks at the credit crisis and real estate bust as a perfect opportunity to lay plans to build a two-tower residential, hotel and retail complex in downtown Miami — once markets bounce back. The city commission is to vote today (4/23) on plans for the mixed-use project at 1700 Biscayne Blvd., between Northeast 17th Street and 17th Terrace west of the boulevard. An investor group listed as Biscayne Arts LLC, Brickell North Investments Inc. and Miami Proarts II Inc. plans to build the complex comprised of one 603-foot tower facing Biscayne to hold 261 residential units and 289 hotel rooms, the permit application shows. The 543-foot second tower to face Northeast Second Avenue is to have another 358 residences. The project is to include 140,281 square feet of retail and 1,369 parking spaces. Project investor James Goldstein, CEO of Midgard Development Group — builders of 79-loft condo The Bank at 8101 Biscayne Blvd. — said the property is well-located to fill the needs of a growing, more viable downtown. "There are no immediate markets for the project," he said. "But projects like these are done years in advance." A major use special permit is valid two years, followed by two two-year extensions. The site's current users include a Burger King, an office building and an exposition venue to open soon, Mr. Goldstein said. The plan is to build once the credit and real estate markets rebound and more housing is absorbed, he said. "We will like to be earlier in the (market) curve than later," he said. Construction could begin in two to three years, he said. "No financing is in place at this time," he said, adding jokingly: "I know there isn't any financing in the planet right now."

Actual Link from Miami Today:
http://miamitodaynews.com/news/090423/story1.shtml

Island Gardens mega-yacht, 50-slip marina set for launch this summer

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Construction of Flagstone Property Group's Island Gardens mega-yacht, 50-slip marina is set to begin this summer, Miami Beach developer Mehmet Bayraktar says. Investors have secured a $21 million loan for the project, he said. The first step is to dredge, he said, preparing for the marina's docks and piers with room for yachts up to 450 feet. Construction should take about 24 months, lease documents show. Some utility lines that pass through the site will take up to six months to move. Miami city commissioners agreed last Thursday to give the development group a 5-year extension on the construction period, but also committed the group to take over the ground lease in June. Once the lease is in place, Flagstone's monthly rent on the 11-acre Watson Island site is to rise from $51,000 to $83,000, totaling $1 million annually. The project's fourth extension is to allow the developer to obtain syndication from the financial markets for loans to build the remaining components: a Shangri-La hotel with 150 guest rooms and suites and 98 residences, a second hotel for which a management company has yet to be announced, and the retail and parking component. But in preparation for a worst-case scenario, the city — owner of the Watson Island land — has included safeguards in its latest amendment with Flagstone. Miami Chief Financial Officer Larry Spring said if the group cannot get the remaining financing for the retail and hotels by June 2011, the city can step in and take over the marina operation and re-bid the upland components. "You have a world-class marina that the city could very well take over and build upland amenities to go along with it."

In previous news:

Flagstone Property Group's $640 million luxury hotel and mega-yacht project in Watson Island is getting — once again — another chance. This one marks its fourth. But this time, in giving the developer an extension from three years to five to finish the project, the city is erecting legal fences to protect its waterfront investment in case financing for the half-billion-dollar project falls through. Flagstone went in front of Miami commissioners last Thursday asking for a fourth extension to its lease agreement. The group says it needs more time to secure financing on three major components of Island Gardens: two hotels and retail and parking. The milestone dates set in place are: —Begin work this summer on the multi-million dollar marina. —Complete by January 2011 development and construction plans on at least two major components besides the marina. —Close by June 2011 on construction loans for the remaining three components. —Begin construction by January 2012 on the three elements. Under the new arrangement, Flagstone must pay pro-rated phased development rent, in addition to the construction rent of $1 million. Flagstone has to begin paying in June when it takes over the ground lease. Two marina operators who participated in the city's original bid process for the site in 2001 turned out for the meeting to object to the amendment. They say that the change that detaches the marina from the upland components of the project was a material modification. Thus, the original bidders should get a second shot at the project, they said. City Attorney Julie Bru said she has reviewed solicitation documents, which she said "clearly authorize phased development, which is what they (developers) are doing now." Lillian Ser, attorney for Flagstone, said the developer's condition is temporary and was caused by the collapse in the financial markets. Other developers face the same circumstances, she said. "…You are not going to get another viable developer in here to bid on this project," Ms. Ser said. She said Island Gardens developer Mehmet Bayraktar has put $50 million of his own money into the project and it's not even off the ground. Close to 10 years in the making, the development has experienced several delays that Flagstone attributes to setbacks in getting permit approvals and a lawsuit by a former tenant on the property that took more than a year to settle. Watson Island on Biscayne Bay — connected to Miami and Miami Beach by the MacArthur Causeway — has remained underused for close to a decade since removal of earlier occupants. Themed park Jungle Island and the Miami Children's Museum are the only existing operations on the site. Obtaining financing for the more than $500 million project has been a slow process for Flagstone, especially after credit markets began tightening and the economy worsened. Having a backup plan if the mega-project falls through was a big concern for commissioners. Commissioner Angel Gonzalez said he needed assurance from the city's legal department that safeguards were in place. "Eighty-three thousand dollars (in annual rent) is peanuts compared to the potential of that property and what could be at stake from the city's side if that project goes down the tubes and we are not protected," he said. The city has set numerous protections in case Flagstone forecloses on the loan, City Attorney Bru said. Commissioner Marc Sarnoff was also concerned about the city's protection in the event of a default by Flagstone. After taking a break to discuss some legal issues, Ms. Bru returned and told commissioners that language was added to the documents addressing such concerns. In a scenario in which both Flagstone and the lender default on the lease, she said the city will regain the property. "…(The city) will be protected so all leasehold interest will be extinguished and the city can recapture the property free of all liens," she said. Another issue was jobs. With the region's unemployment rate on the rise, employment is a becoming a growing topic of discussion at city commission meetings. Commissioner Michelle Spence-Jones said she wanted work such as plumbing, electrical and landscaping to stay local. Ms. Ser, the Flagstone attorney, said local workers are to be hired for at least 40% of the sub-contracted work.

Actual Link from Miami Today:
http://miamitodaynews.com/news/090430/story2.shtml

Three Omni 'catalyst' projects could garner $43M in tax rebates

With one tax rebate agreement approved and two in the pipeline, the Community Redevelopment Agency is banking on these projects — which could receive a combined $43 million in tax rebates — to serve as catalysts for the Omni area's redevelopment. But Miami Commissioner Marc Sarnoff, whose district includes the Omni area, warns that the Omni redevelopment agency has to be cautious in approving these economic incentives. Otherwise, it might overpay for job creation and development, he said. He asked at Monday's agency board meeting for more time to review the agreements before a vote. "I want to see development, but at what cost?" he said in a later interview. "I need to understand what these agreements mean before giving money to millionaires." Mr. Sarnoff says he plans to do a cost-benefit analysis on both projects. Omni Mall owners are requesting a $7 million tax rebate for their renovation project and Miami developer Tibor Hollo seeks a $16 million rebate for the Sonesta Mikado Hotel. The agency has long thought of tax increment funding rebates as an incentive for developers to build within the agency's boundaries, said Executive Director Jim Villacorta, encouraging them to build projects faster and get them on the tax roll. The redevelopment agency fills its coffers by setting a base value for the area's real property and receiving for agency use the tax increment above the base level as property values rise. Omni Mall owner New York-based Argent Ventures requested this tax rebate about a year ago but several parts of the agreement took time to negotiate, Mr. Villacorta said. One delay was getting the developer to offer an easement of the right-of-way to the city for a traffic circle at North Bayshore Drive and Northeast 17th Street, which the capital improvement department is planning, he said. The mall owners were also pushing to include adjacent condo properties they own in the rebate deal, he said, a request the agency denied. Another concern for Commissioner Sarnoff is the future impact the tax rebate handouts could have in the redevelopment agency's bonding capacity. The Omni agency is conducting a finding of necessity study that could lead to a possible expansion of the district's boundaries and allow the issuance of bonds to finance further redevelopment of the area. But Mr. Villacorta said when the agency did bond projections it included in its calculations some of the developments slated for the Omni area — except for the Sonesta Mikado Hotel project, which was announced earlier this year. Once developments rise, he said, the agency is to collect more in tax increment funding than it did when the land was vacant or smaller structures occupied it. "Hopefully, these projects serve as a catalyst to entice other developers to come and build in the area," Mr. Villacorta said. "We are not collecting TIF [tax increment funding] to collect TIF. We need to spend it on things that will help the [local] economy." Developer Hollo is requesting a $16 million rebate for his $100-plus million, 36-floor Sonesta Mikado Hotel to rise at 1701 NE 4th Ave. The project is to employ about 600 during construction, Mr. Hollo said, and another 300 to run the upscale hotel. Omni Mall owners are asking for a $7 million rebate for the $140-plus million Omni Mall revamp the property is undergoing. The project encompasses a 350,000-square-foot, mixed-use office development, 16,000 square feet of retail and renovation of a 527-room hotel, located at 1501-1701 Biscayne Blvd. The renovated complex is to create 700 full-time office positions within five years and 100 full-time retail jobs within three years, the incentive agreement shows. The completed hotel component already employs 245 people and is to add 17. Developers are not to receive the tax rebates until the promised investment and job goals are met. If target investments and deadlines are not reached, the rebates are proportionally reduced. The agency's board last month approved the redevelopment agency's first tax rebate agreement. Local developer Ignacio Garcia Du-Quesne is to receive a $20 million rebate following completion of Bayview Market, a $200 million retail and office project at Northeast Second Avenue and 17th Street set to begin construction next year. Area developers and business owners are often knocking at the agency's door for economic incentives, Mr. Villacorta said. "Developers come in every day asking for incentives." But for now, he said, no other projects are in the pipeline to receive tax rebates. "None are definite enough to bring to the [CRA] board."

Actual Link from Miami Today:
http://miamitodaynews.com/news/090521/story3.shtml

The transformation of Omni-Pace

Some great news I have been waiting for has finally arrived. I have been lamenting the lack of a true nightlife anchor in the Pace-Omni area around which everything else would coalesce. The impending arrival of St.Marks Place at 19th st on Biscayne Blvd is just the catalyst needed to jump start this area. This multi Million Dollar Lounge/restaurant will do to Pace-Omni what Mary Brickell Village did to West Brickell. This area is just waiting to happen. I strongly believe that the center of gravity will shift from else where to the corridor between Adrienne Arsht center (15th st/Biscayne) to Midtown (36th st/Biscayne or NE 2nd ave).The best part is that this corridor will become unrecognizable in 2 to 3 years time. That is because I believe the entire area East of North Miami Avenue between 15th and 36th st is a blank canvas that can be transformed into anything with very little investment and we are seeing it happening in front of our own eyes even during this economic downturn. Have you seen Biscayne Blvd between 19th and 25th street? It is already looking super and one day not too far, I hope the entire blvd in this corridor will be transformed into a mini version of Paseo de la Reforma or Avenida 9 de Julio.

Brickell is already what it is. What you see now is what you are going to see 2 or 5 or even 10 years from now. Ditto Downtown/CBD. There is very little left to develop or transform.

Regarding Park West, the area East of NW 1st Ave shows immense promise but it requires millions if not billions in investment to make some changes. The rough neighborhood nearby will not help either to make a quick transition. The planned Miami World Center will be life altering for Park West but who knows when that is going to happen. 2020 maybe?

$200 million Bayview Market is closer to start

$200 million Bayview Market with Lowe's as anchor closer to start
By Yudislaidy Fernandez Construction is to begin in six to eight months on the $200 million retail and office project Bayview Market in the Biscayne corridor at 17th Street, developer Ignacio Garcia Du-Quesne says. The developer is getting a push from Omni's Community Redevelopment Agency board, made up of the five city commissioners. On Monday they approved making Bayview Market eligible for a 50% tax rebate once completed, totaling up to $20 million. This is the first tax rebate development agreement the agency has signed with a local developer, said Community Redevelopment Agency Executive Director Jim Villacorta. Mr. Garcia Du-Quesne is committing to build up to 535,000 square feet of retail and office space and 1,200 to 2,160 parking spots on 7.35 acres at Northeast Second Avenue and 17th Street. The retail component is to bring big-box retailers and a supermarket to the neighborhood, including a long-announced tenant, home improvement giant Lowe's. The retailer is to occupy 135,000 square feet. Mr. Garcia Du-Quesne said other tenants are to be revealed after groundbreaking. The project's financing is in place, he said, adding that the next step is to finish construction documents, which is to take six to eight months. Construction is to begin in the first quarter of 2010 and take about 18 months, he said, adding that once complete, the project's value will rise to $200 million. With the tax increment financing arrangement, once the development is built — reaching an investment of $110 million — and 380 jobs are created, the redevelopment agency rebates the developer 50% of tax increment funding, or TIF, generated above the base year, Mr. Villacorta said. The redevelopment agency is funded by capping the taxable value of real property in the area and collecting the tax increment above the cap as property values rise. "It's to promote development, to encourage developers to get projects done quickly to get them on the tax roll," he said. "We are not giving them money up front. If they don't build, they don't get anything." If the promised investment and jobs goal aren't met, the rebate would be proportionally reduced. "We don't get any advantage out of the taxes until we have a finished product," Mr. Garcia Du-Quesne said. "We are committed to invest a minimum of $110 million of our capital before we get funding out of the tax increment program." The 800-plus job creation will also have an economic effect in the emerging district, he said. "We'll have a ripple effect on the surrounding properties and it will be a catalyst for additional development in the immediate area," he predicted. If Bayview Market is not completed by 2015, Mr. Villacorta said, the tax rebate the developer is eligible for drops, and if not completed by 2017, the agreement would be canceled.

Actual link from Miami Today:
http://miamitodaynews.com/news/090430/story1.shtml

Sonesta MIkado To Break Ground soon

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Sonesta Mikado Hotel to start work in June once $16 million rebate is in hand
By Yudislaidy Fernandez Construction on the $100-plus million, 36-story Sonesta Mikado Hotel in the Omni area will start in June, says Miami developer Tibor Hollo — right after a city vote to give the hotel a $16 million tax rebate. The mixed-use hotel comes before the Omni Community Redevelopment Agency next week, when Miami commissioners acting as the agency's board are to decide on the rebate of tax increment financing. The Zyscovich Architects-designed hotel, at 1701 NE 4th Ave., is to have about 252 hotel rooms and 120 suites managed by Sonesta, said Mr. Hollo, chairman and president of Florida East Coast Realty. Mr. Hollo said he hopes the luxury project — with amenities such as a 20,000-square-foot, full-service spa, upscale restaurant and about 40,000 square feet slated for medical offices — becomes a catalyst to jump start development downtown. "Nothing is moving," he said. "You used to see hundreds of cranes and now you see none." An estimated 300 people are to be hired in the hotel — to be completed in 22 months — and another 600 are to do construction, he said. "For construction, we'll be hiring all local contractors. We are not hiring outside," he said. The project's value and job creation are some elements that could make it eligible to receive a rebate from the Community Redevelopment Agency. Executive Director Jim Villacorta said the agency has long thought of rebates as an incentive for developers to build within the agency's boundaries, encouraging them to build projects faster and get them on the tax roll. The redevelopment agency fills its coffers by setting a base value for the area's real property and receiving for agency use the tax increment above the base level as property values rise. "We are not giving them money up front," Mr. Villacorta said. "If they don't build, they don't get anything." Last month, the agency reached its first tax rebate agreement with Miami developer Ignacio Garcia Du-Quesne, who plans a $200 million retail and office project known as Bayview Market, also in the Omni area. He plans to begin work next year, he says. Bayview Market is eligible for a 50% tax rebate once completed, totaling up to $20 million. Mr. Hollo says he is awaiting the redevelopment agency's May 18 vote before he can begin construction on the multi-million dollar project, for which he says he has financing in place. Agency officials have voiced interest in the project because of the hospitality jobs it would yield and the medical tourism it could attract to the Omni area. But inherited debt already limits the agency's funds. The agency spent close to half of the Omni redevelopment district's $14.5 million budget this year to pay off construction loans the city inherited from Miami-Dade County for the Adrienne Arsht Center for the Performing Arts. That contribution is to continue annually. The upscale Asian-themed hotel is to be managed by Boston-based Sonesta, a company that operates a hotel in Coconut Grove and formerly owned one in Key Biscayne. "It will be a very lovely urban hotel, resort," said Stephanie Sonnabend, president and CEO of Sonesta International Hotels Corp., "something the Sonesta has been involved in for many years in Coconut Grove." Other amenities include a recreation deck, bar and grill, and 14,000 square feet designed for meetings. With very little development rising in Miami, she said, the company is optimistic about this venture with a longtime developer. "If anyone can do this, it is Tibor Hollo," she said. "He has such a strong development record." Miami-based Florida East Coast Realty says it has built more than 55 million square feet of developments in the past five decades. Said Ms. Sonnabend: "We really see this [area] as a growing and exciting destination part of Miami."

Actual Link from Miami Today:
http://www.miamitodaynews.com/news/090514/story3.shtml

Pace Park neighbor Onyx on the Bay units face foreclosure

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One of the developers of ONYX, Willy Bermello and Luis Ajamil, of Miami-based BAP Developers (who incidentally are the architects of the beautiful and Sara Design Award winner 1800 Club) are being foreclosed on by Corus Bank. Read the full story:


The developer of the 28-story Onyx on the Bay in Miami faces foreclosure.
Corus Bank has filed a foreclosure action targeting 41 unsold units within the 118-unit condo tower, according to court records.
Developer Biscayne Bay Lofts and the principals of the development partners – Willy Bermello and Luis Ajamil, of Miami-based BAP Developers, and Gustavo Micuslitzki, of Argentina’s GGM Developers – are named in the lawsuit, which was filed April 29 in Miami-Dade Circuit Court.
Last month, the troubled Chicago-based Corus Bank warned that it was preparing to foreclose on three South Florida projects. Onyx appears to be the first to fall.
Miami attorney Paul Shelowitz, who represents Corus Bank in the lawsuit, did not immediately return a call or e-mail seeking comment.
The foreclosure is based on a construction mortgage from Corus Bank to Biscayne Bay Lofts that was last modified at $44.1 million in 2007. The Onyx closed its first sale in August 2007 and got off to a brisk start. However, it couldn’t sell out more than two-thirds of the units as South Florida’s economy faltered and obtaining a mortgage became difficult. Of the 77 units that were sold, only five were closed on since October 2008.
According to research by Condo Vultures Realty LLC, 47 of the closed units in Onyx were being rented.
On May 1, Corus Bank warned that its losses were so bad that federal regulators could place it into receivership. If that happens, the Federal Deposit Insurance Corp could auction off its distressed development loans and foreclosed properties in South Florida.
For Onyx residents, a foreclosure could take away the developer’s incentive to properly maintain the building, said Jack McCabe, CEO of Deerfield Beach-based McCabe Research & Consulting. Corus Bank is not exactly in great financial condition, either. The owners could face homeowner association assessments, which could scare away potential buyers and renters, he said.
“Only bulk or vulture investors would look at it,” McCabe said. “Because of the high cost of taxes and homeowner fees, it makes it hard to rent these units without a significant discount on the purchase price.”
Condo Vultures CEO Peter Zalewski said Onyx has not received much interest from bulk buyers because it doesn’t have enough available units to be managed efficiently in bulk. Plus, it’s in the Edgewater area just north of downtown Miami, in a condo market that has not matured.
Zalewski said distressed units in Onyx should sell for $100 to $125 a square foot. His firm listed a $389-a-square-foot average on Onyx’s completed closings.
That should place downward pricing pressure on nearby condo projects, particularly the 346-unit Paramount Bay, which is nearing completion five blocks from Onyx. Paramount Bay also is financed by Corus Bank, which has disclosed that Paramount Bay is among its South Florida projects with its mortgage in nonaccrual status.
“This isn’t real good news for sellers, but it’s fantastic news for buyers,” Zalewski said.
Onyx is one of 12 projects BAP Development has listed on its Web site. Among them is the 50-story, 128-unti Onyx 2. That was planned for the same site as the first phase, but it has not broken ground.
An affiliate of BAP Development has a $13.9 million mortgage note with Cyma Finance on its Opera Place project in West Palm Beach maturing on Sept. 30. That condo development has not broken ground, either.
Developer Bermello did not immediately return a call seeking comment. He and Ajamil also are principals of Miami-based architectural and engineering firm Bermello, Ajamil & Partners.

Actual Link From South Florida Business Journal:
http://southflorida.bizjournals.com/southflorida/stories/2009/05/11/daily7.html

OMNI MALL DEVELOPER SEEKS $7M FROM MIAMI FOR $95M PROJECT

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Developer Andrew Penson wants $7.7 million in tax breaks from Miami as he pushes a plan to revamp the 1.1 million-square-foot Omni International Mall. The city will decide tonight if he gets it. Penson, president of New York-based Argent Ventures, is transforming the defunct complex into 350,000 square feet of office space, 225,000 square feet of big-box retail space, and 16,000 square feet of regular retail space. Penson will also refurbish an adjacent 527-room hotel and a seven-level parking garage. In exchange for the full amount of a city subsidy from a fund for economic development, Penson will guarantee a $95 million investment and create 817 full-time jobs and 538-part time jobs. Whether it happens is now up to Miami's Community Redevelopment Agency (CRA), which would offer a 50 percent rebate on property taxes from the project, according to agency executive director James Villacorta. Fifty-one percent of the construction and mall jobs created by the project will be reserved for those living within Miami's Omni and Southeast Overtown redevelopment districts if the incentive agreement is approved. Penson would also give the city enough Omni Mall land to build a traffic circle at the intersection of North Bayshore Drive and 17th Street. If the developer falls short in his promises, he gets less money, according to the proposed Omni Development Incentive Agreement. The mall lies within the Omni Redevelopment District, where most property taxes are collected by the CRA for the purposes of combating "blight and slum" in that area. Penson first formally requested a tax subsidy from the CRA board in May 2008. The $7 million subsidy is on the CRA agenda for tonight's meeting. However, Commissioner Marc Sarnoff, whose district includes Omni, says he will likely ask that the item be postponed "unless somebody briefs me real hard, real fast." Sarnoff says he still hasn't been briefed on the latest draft of the incentive agreement. Even if the subsidy is delayed Monday "it looks like it will happen eventually," Villacorta says. Representatives of Argent Ventures could not be reached for comment. Terry Salzman, senior vice president of SRS Real Estate Partners, says the $7 million subsidy is a worthy investment. "If you get government support... it will go a long way toward helping Omni begin the revitalization process," he says. "That portion of downtown Miami is ripe for redevelopment." And once the "Omni Shops" project is completed, which Salzman estimates will happen in 24 months, the real estate market will be positioned to absorb the new office and retail space. "That section of... Miami is ready to be turned out," he says. "When the project is ready, the market will be ready for it." The mall prospered into the 1980s, but by the 1990s anchors such as Jordan Marsh and JC Penney began closing. The last two tenants within the mall, a Radio Shack and a gift shop, closed in 1999. Argent Ventures and Lehman Brothers purchased most of the mall for $33 million in 2000 and tried to turn it into a telecommunications hub. But after Argent Ventures invested $10 million, the dot-com bubble burst. Undeterred, Argent purchased Lehman Brothers' interest in Omni in 2005 for $100 million. Argent received permission to build 4,000 condominiums on top of Omni from the city of Miami in March 2007 but opted to redevelop the space as office and retail instead.

Actual Link from Real Deal Online:
http://sf.therealdeal.com/articles/omni-mall-developer-seeks-7m-from-miami-for-95m-project

Interesting news about our property taxes

I recieved this very useful piece of information as an e-mail from Rich Strell of NEAR

"If you think your property taxes are too high, you should find this email to be good news. This past Tuesdayąs Miami Neighborhoods United meeting at Simpson Park was an open meeting with Pedro Garcia, the first elected property appraiser for Miami Dade County. Mr. Garcia was engaging and forthcoming with interesting information. Hereąs some key highlights: A discussion took place regarding duplex condos. According to Ms. Beba Mann (who is a candidate for the Miami City Commission in District 3), the city attorney confirmed her suspicion that the city had been illegally allowing łMcMansion˛ duplexes in the Grove and other areas of the city to be turned into 2-unit condos. Mr. Garcia said it is up to the city to enforce its own zoning. Once the duplex has been registered as a condo he has no choice but to do the assessment. Overall, we can expect property assessments to be significantly lower this year. Preliminary assessments are supposed to be sent out around June 1. The property appraiser does NOT use foreclosures as comparables for appraisals. The state department of revenue does not allow it. However, he DOES use short sales as comparables. Important note: The property appraiser does NOT set taxes, only the assessed value. It is then up to the governing body (the city, county, school board, etc.) to set the millage rate, which then determines your taxes. ( A quick side lesson on the millage rate: By state law, the maximum millage rate is 10. (This is the same as 1%. Millage means Śper thousandą, as opposed to percentage, which means Śper hundredą). So, if your property is assessed at $500,000 the maximum property tax that the city, county and school board could charge would be 10/1000, or (1/100), which comes out to $5,000 each. However, it is very important to know that the maximum millage rate of 10 only applies to property assessments, and that cities and counties have been using a trick for a number of years to circumvent the millage cap; they charge łfees˛. Examples include a solid waste fee and the infamous fire fee. Also, if you live in a special taxing district, perhaps to pay a security guard, that would be a separate fee. ) There is a controversy regarding whether a homeowner of a residential-zoned duplex, triplex or quad, who lives in the building, is allowed to have homestead exemption on the entire building and not only his/her half, third or fourth. This issue is currently being litigated. In the past, if a homeowner had a disagreement with his/her property assessment, it was up to the homeowner to prove the county was wrong. Beginning in 2010, the county must prove their assessment is correct. (The burden of proof is shifted to the county.) Once you receive your property tax assessment, you have 25 days to file any disagreement with the Value Adjustment Board. 55% of the people who go before the Value Adjustment Board win. In 2010 there will also begin a 5% cap on assessment increases on non-homestead property. Income property will be assessed using the income approach. The 3% cap on increases for homesteaded property has another limitation that many people are not aware of: Your property assessment can only go up 3% OR whatever the increase was in the consumer price index, whichever is lower. This past year the CPI was 0.1%. Mr. Garcia thinks many people will be quite pleased with their property assessments when they come out this year. On the other hand, you can expect the city, county and school board to either raise the millage rate closer to the cap of 10, raise Śfeesą, cut their budgets, or any combination of the three. For more information, please see the Property Appraiserąs website: http://www.miamidade.gov/PA/ -- Elvis Cruz Secretary, Miami Neighborhoods United 631 NE 57 Street Miami, Florida 33137 (305) 754-1420 ElvisCruz@mac.com "