Miami’s Real Estate Stability Still Strong After Four Years

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The real estate stability in Miami is still strong.

For four years, Miami’s economy in real estate has not met any downturn and consecutively even with the rising cost of real estate, it is evident that the city is one of the biggest players in this sector.

“South Florida offers world-class amenities, a top-tier arts and cultural epicenter, a diversified economy and more. The strong demand is leading to fewer days on the market for Miami single-family homes while buyer offers are near asking price,” according to World Property Journal.

Meanwhile, the increase in sales of properties was not only due to U.S. homebuyers. There was also a report stating that part of the buyers that are seeing potential and interest in the city is from the international market.

“Miami real estate continues to attract international buyers from all over the world as well as a growing number of domestic consumers,” said Miami-based Realtor Christopher Zoller

One promising note about the stability in the real estate of Miami is that the city offers a limited number of properties that can be loaned in mortgage. Out of the thousand properties that were available to sell to the public, only a small number can be allowed for mortgage loans. This makes it all the more visible how many are really eyeing settling in this city.

“Miami existing condominiums have been impacted by a lack of access to mortgage loans. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 23 are approved for Federal Housing Administration loans, down from 29 earlier this year,” based from the article and the statistics from Florida Department of Business and Professional Regulation and FHA.

In addition to this, there was a policy that was worked on this month to open up more opportunities for buyers to own a property in Miami. This could detail in more growth for the city’s real estate economy as people who are opting to own a residence in this city can apply instead via a mortgage loan.

“By increasing the number of local condo buildings approved for FHA loans, more consumers will be able to access FHA’s low down payment mortgages. Accepting Citizens insurance and co-insurance clauses is another significant development, which would help more than 85% of Florida’s condo projects in complying with FHA’s insurance requirements,” said MIAMI’s SVP Government Affairs & Housing Danielle Blake.

 

Source: Realty Today

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Ninety-Year-Old Downtown Miami Building Trades

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The 90-year-old Dade-Commonwealth Building in downtown Miami sold for $9.2 million to a group that promises to revitalize it.

The seven-story office building at 139 N.E. 1st Street was originally constructed in 1925 to serve as a branch of Meyer-Miser Bank, but it was heavily damaged by the Great Miami Hurricane of 1926. It was reconstructed the following year.

Dade Commonwealth Building2

The building still has a 32-ton magisterial stainless steel vault and its original columns.

A joint venture between Immocorp Capital, led by Gilbert Benhamou, and Wynwood Fund, led by Matthieu Merchadou-Melki, bought the 43,265-square-foot building on a 7,500-square-foot lot from Titan Development Partners, managed by Jesus V. Suarez. It last traded for $1.3 million in 2003.

“We intend to revitalize this corner in the heart of Downtown Miami,” said Benhamou. “This is an iconic building that, once upon a time, was the tallest building in Downtown Miami. We were seduced with the historical aspect and story of the Dade-Commonwealth Building.”

The buyers were represented by Urbanize Properties’ Janet Crucet and Kristine Flook plus Sterling Commercial’s Mika Mattingly. Ana Ventura of RE2000 Group represented the seller.

 

Source: SFBJ

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Biltmore Parc Luxury Condo Breaks Ground In Coral Gables

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Biltmore Parc luxury condominium residences are coming to Coral Gables.

Pictured as Biltmore Parc Luxury Residences break ground are (l-r) Marshall Bellin, Maximo Italiano, Glenn Pratt, David Torres, Luis Arevalo, Alirio Torrealba, Mayor Jim Cason, Jose Luis Bueno, Antonio Zeiter, Alejandro Abascal, Jimmy Forrest, Jenny Ducret, Aquiles Torrealba, and Fernando Pinto

Pictured as Biltmore Parc Luxury Residences break ground are (l-r) Marshall Bellin, Maximo Italiano, Glenn Pratt, David Torres, Luis Arevalo, Alirio Torrealba, Mayor Jim Cason, Jose Luis Bueno, Antonio Zeiter, Alejandro Abascal, Jimmy Forrest, Jenny Ducret, Aquiles Torrealba, and Fernando Pinto

Elected officials, members of the development team, and well-wishers were on hand recently to witness the groundbreaking ceremony for the project.

Proximate to the Biltmore Hotel, Biltmore Parc is the first project in six years to be located within walking distance of Miracle Mile. As traffic woes increase in Miami-Dade County, residential properties located near the workplace and amenities such as restaurants, shops and public transit become more attractive. In Coral Gables an estimated 540,000 vehicles travel through the city’s 189 entrances.

“This is hitting a market, capturing a niche for Millennials, families with young children who want to be in the heart of the city and empty nesters who are looking to move from a large home to a luxury condo,” Coral Gables Mayor Jim Cason said of the development.

Venezuelan entrepreneur Alirio Torrealba, interior designer Vincenzo Avanzato, the architectural firm of Bellin & Pratt, together with developers MG Developer Miami LLC and United Real Estate Group have created a project synonymous with the elegance that is the hallmark of The City Beautiful.

biltmore-parc-coral-gables 3The five-story building, located at 718 Valencia Ave. will have 32 units ranging in price from $950,000 to $1.65 million. Two and three-bedroom units are available, at 1,700 to 2,500 square feet in size.

biltmore-parc-coral-gables 2Each residence has a den with an expansive private terrace with NanaWalls (glass walls that fold inward). Private elevator access to the foyer is available to every unit. Two elegantly appointed multipurpose lounge areas capable for use as business center, meeting venue, game room or reading lounge also are available. Interiors include European-style kitchens, oversized spa-inspired bathrooms with separate showers and bathtubs, spacious walk-in closets, and walk-in laundry rooms.

Residents can take advantage of amenities such as the 24/7 personalized concierge assistance for things such as dining and event reservations to in-residence services. Other luxury touches such as 24-hour security, spa, fitness center, valet service, and WiFi in the common areas are part of the Biltmore Parc lifestyle. Also offered is a one-year membership to The Club at the Biltmore, which makes available fitness, social activities, special privileges at its legendary resort, discount on hotel amenities, and monthly special events.

“This is a great project for Mr. Merrick’s city now celebrating its 90th anniversary. The size, scale and location are ideal,” Mayor Cason added.

The project, which is scheduled for completion in February 2017, sold 15 units as of the groundbreaking. The sales gallery is located at the Coldwell Banker Residential Real Estate office, 4000 Ponce de Leon Blvd., Suite 700, Coral Gables. The construction company is TA Builders.

“This is going to be a beautiful building,” Commissioner Jeannett Slesnick said. “Congratulations to everyone involved in Biltmore Parc.”

 

Source: Coral Gables Community News

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Beckham Partner: Land Owners ‘Probably Will’ Blow Up Soccer Deal

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David Beckham’s top Miami negotiator said Thursday that owners of the private land needed for a Miami soccer stadium “probably will blow this deal up,” sounding the alarm over a potential failure of negotiations he said must be completed within a few weeks.

Soccer star David Beckham arrives for an event at the Adrienne Arsht Center in February 2014 (PHOTO CREDIT: PATRICK FARRELL, MIAMI HERALD STAFF)

Soccer star David Beckham arrives for an event at the Adrienne Arsht Center in February 2014 (PHOTO CREDIT: PATRICK FARRELL, MIAMI HERALD STAFF)

In an interview with the Miami Herald Editorial Board, Miami Beckham United’s Tim Leiweke said the partnership continues to make progress with the city of Miami to purchase city land across the street from Marlins Park and then transfer it to the Miami-Dade School Board, which would shield the new stadium from property taxes. But he said parallel negotiations to purchase six private parcels on the proposed stadium footprint have stalled as land owners haggle for unreasonable prices.

“They know what we’re doing, and unfortunately they’ve let that create an absolutely unrealistic conversation. They can absolutely blow this deal up, and they probably will blow this deal up,” Beckham’s top Miami negotiator, Tim Leiweke said. “We’re willing to overpay. We just don’t want to be the stupidest guys on the face of the earth.”

If the negotiations fail, Leiweke said Beckham’s group has a fallback plan at another undisclosed site. He also said Miami Beckham United hasn’t ruled out looking to a different city.

“We do have a backup,” Leiweke said. “We will not be held hostage.”

SoccerStadium

His blunt remarks could be an example of public brinkmanship to put pressure on the land-holders trying to get top dollar for their real estate, or it could signal real trouble in Beckham’s third try for a stadium site in his two-year quest to bring Major League Soccer to Miami. Miami plans a referendum on the expected stadium plan in March, to coincide with the presidential primary.

At least one property owner within the stadium footprint, Violeta Jimenez, said no one from Miami Beckham United has approached her to officially start negotiations. And for now, she said, it is better that way.

“Ideally, I would prefer that they don’t offer me anything and to stay in my house until I die. I have lived here for years,” said Jimenez, who lives in a duplex and whose next-door neighbor is her sister Adelfa. “We don’t want to get millions; we want to live peacefully.”

She said news of the stadium talks prompted a flood of third-party offers for her property. And yet, she said, “I’m not totally opposed to negotiating a fair deal.”

The land adjacent to Marlins Park in Little Havana, where David Beckham’s group is trying to build a soccer stadium (PHOTO CREDIT: DAVID SANTIAGO, EL NUEVO HERALD)

The land adjacent to Marlins Park in Little Havana, where David Beckham’s group is trying to build a soccer stadium (PHOTO CREDIT: DAVID SANTIAGO, EL NUEVO HERALD)

The Beckham camp confirmed that its real-estate team has not yet spoken to Jimenez as it tries to work out deals with larger properties nearby. It isn’t clear which property owners allegedly asked for an exorbitant amount of money.

Rene Diaz, owner of Candy House Daycare, told el Nuevo Herald on Thursday that he met with Beckham negotiators last month. He said he asked to be paid an undisclosed amount for his property, plus the value of his business, in addition to compensation for relocation of his daycare. Diaz said the negotiators told him his requests were “reasonable.”

“They agreed and even said they would send me a written offer,” Diaz said. “I’m not going to give away my property. They are not going to build a stadium to lose money, they are coming here to make money. They are not a charity or a church.”

An attorney for Beckham United, however, disputed his characterization of the negotiations. Michelle Gonzalez said in a statement that she met with Diaz last month and asked him what he thought he should receive for his property, which according to the property appraiser has a market value of $368,000.

“The number he came back to us with was 30 times the fair market value of what the land has been appraised at,” Gonzalez said. “We feel that is completely unreasonable.”

Attempts to reach Diaz again Thursday evening for a response were unsuccessful.

Beckham was thwarted last year in bids to build on government land at PortMiami and downtown Miami. Leiweke, who recently came aboard as a partner and negotiator, was critical of the efforts that led to such high-profile failures.

“We’ve shot ourselves in the foot quite a bit in the last two years,” said Leiweke, president of the company behind Toronto’s MLS team and the former CEO of AEG, which owns an MLS franchise in Los Angeles.

Leiweke was instrumental in bringing Beckham to play for the L.A. Galaxy in 2007, a deal that included an option for Beckham to buy an MLS team himself at a deep discount.

MLS Commissioner Don Garber has already extended Beckham’s option as his Miami stadium chase dragged on, and Leiweke said the upcoming MLS owners meeting on Dec. 5 is the latest deadline. He said that without an agreement with the school board, city and land owners, he’s not confident MLS will extend the option again.

“I’ll let the commissioner decide,” Garber said. “But I don’t like those odds and it makes me very nervous about MLS in Miami.”

Beckham’s investment group is offering to build the $200 million stadium and pay Miami for the city-owned land needed for the stadium. It had been pursuing county ownership of the facility to shield the new stadium from property taxes, but last month abruptly switched the plan to Miami-Dade’s school system being the landlord.

Schools chief Alberto Carvalho touted the potential deal as a win for the schools, which get no tax dollars from government-owned stadiums. By owning Beckham’s stadium, it could have a 30,000-seat venue for large football games, graduations and events. But Leiweke revealed Thursday that one of Carvalho’s top requests wouldn’t be granted: building a magnet school dedicated to sports management inside the stadium itself.

“Quite frankly, we don’t have the space or the money for that,” Leiweke said. Instead, the stadium would accommodate visiting students to learn about sports. In a statement, Carvalho said both sides want to create “meaningful educational space” within the stadium.

Miami-Dade Mayor Carlos Gimenez saw the switch to school ownership as a political move by Miami Mayor Tomás Regalado, whose daughter, Raquel, sits on the school board and is challenging Gimenez in the 2016 mayoral race. Leiweke said Thursday it was Tomás Regalado who suggested the Beckham group meet Carvalho about potential ownership, which the city mayor called “an interesting concept.”

Leiweke said Beckham’s group will agree to continue paying the same property taxes that the private landowners currently pay local governments, but not the far larger bill for a stadium expected to cost about $200 million to build.

“If you put a true property tax on this property, this thing could never be built,” Leiweke said of the stadium.

 

Source: Miami Herald

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Top Developers Predict Miami’s Future

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A panel of major Miami developers, many of them billionaires, gathered at The Real Deal South Florida’s Real Estate Forum & Showcase to talk about their upcoming projects and give their take on when this real estate cycle will come to a close.

Craig Robins, Jeffrey Soffer, Richard LeFrak, Gil Dezer and Michael Simkins

Craig Robins, Jeffrey Soffer, Richard LeFrak, Gil Dezer and Michael Simkins

In attendance was Richard LeFrak of the LeFrak Organization, Jeffrey Soffer of Turnberry Associates, Gil Dezer of Dezer Development, Craig Robins of Dacra and Michael Simkins of the Innovate Development Group.

The five heavyweights touched on themes like what it means to build a neighborhood and the challenges involved with planning a multibillion-dollar project. However, one topic reigned supreme: is South Florida headed for a crash?

“In the long run, what is going to happen is what always happens: the weak will not survive, the strong will survive, and the ones who survive will thrive,” said LeFrak, chairman and CEO of the LeFrak Orgnization.

To watch the panel from start to finish, check out the video below, or go to The Real Deal‘s YouTube page.

 

Source: The Real Deal

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Green Buildings: Great For The Environment And For Landlords

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Green buildings have a number of different features that are great for the environment, but it turns out that they’re also great for the owners and landlords who rent them out.

A new study conducted at the University of Guelph shows that green office buildings have higher occupancy rates and more satisfied tenants.

Researchers reached this conclusion after analyzing ten years of data from one of North America’s largest commercial real estate firms. It examined many different kinds of variables, including monthly rents, lease renewals, energy and water consumption, and tenant satisfaction.

Higher Occupancy And Satisfaction

For nearly 300 green buildings in North America – 148 in Canada and 143 in the United States – green buildings scored better in these categories than their non-green counterparts. Buildings were only able to qualify for the study by meeting energy efficiency and sustainability standards based on LEED, BOMA BEST, and ENERGY STAR certification programs.

“This is one of the most in-depth analyses of sustainable and energy efficient building operations to date,” said Avis Devine, housing professor at Guelph.

Researchers found that occupancy rates in green buildings were higher in Canada and the United States by 18.7% and 9.5%, respectively. To some this may be surprising, considering that the average rent prices were 3.7% higher in both countries.

In Canada, tenant renewal rates were 5.6% higher for green buildings, and tenant satisfaction scores were 7% higher. Energy consumption was also much lower in green buildings. Researchers found that energy consumption per square foot was 14% lower in U.S. green buildings.

Unique And Precise

The study is a substantial due to its precise nature and the amount of data that was covered.

“Previous studies have suggested correlations between green buildings and financial outcomes but none have included such diverse metrics across a large portfolio, and covering such a substantial period of time,” said Devine.

The time reference is perhaps one of the best facets of the study that makes it unique. The 10-year period that the researchers analyzed stretched from 2004-2013, a time when North American housing markets went through boom, bust, and recovery periods.

The researchers hope that their study will allow green buildings to flourish in North American housing markets.

“Building owners and investors are affected by the choices they make on investments in energy and sustainability issues . . . This study is an important step toward mapping the business case for more sustainable building,” said Devine.

The full study has been published in the Journal of Portfolio Management.

 

Source: Consumer Affairs

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$1 Billion Miami River Project Gets City’s Stamp Of Approval

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New York-based Chetrit Group and local developer Ari Pearl’s plans for a $1 billion Miami River project have moved a step closer to reality.

A rendering of the Miami River project

A rendering of the Miami River project

The Miami City Commission late Thursday unanimously approved a development agreement and rezoning of a 10-acre site where Pearl and the Chetrit Group plan to build the mixed-used site that includes four towers, a hotel, shops, restaurants, and a public river walk with boat slips. There, a large section of Little Havana along the Miami River will get a major facelift.

To obtain city approval for higher density, the developers promised to invest $14 million into an affordable workforce housing fund, as well as $7 million for public infrastructure surrounding the project, including renovating nearby Jose Marti Park. Raymond Jungles has designed the plans for the park.

“This project is of city-wide importance,” the developers’ lawyer Melissa Tapanes Llahues told commissioners. “It makes the vision of an interconnected city a reality.”

A rendering of the Miami River project

A rendering of the Miami River project

Located between Southwest Second Avenue and Southwest Third Avenue, the Miami River and Southwest Seventh Street, the project will be built in five phases. The complex would have 1,678 residential units, 330 hotel rooms, 266,000 square feet of retail and office space, and more than 2,000 spaces. The first tower with 200 hotel rooms and 328 condos, Tapanes said, is scheduled for by the end of 2018. The developer is also getting 1.2 million square feet of “air rights” from the city at $17.82 a square foot, or $21 million, which is being used for the public improvements.

Joseph Chetrit

Joseph Chetrit

Pearl and the Chetrit Group have been working on the project’s design since they assembled the land for roughly $100 million last year. Some of the properties they acquired included the Finnegan’s River restaurant and the Pleasure Emporium adult superstore.

The developers and their architect, Kobi Karp, also consulted with the Miami River Commission on the site’s design which calls for restaurants and shops to line the river walk that will be accessible to Brickell and East Little Havana residents. There will also be a public gathering place at an I-95 underpass.

“This is a very exciting project in a blighted area that could use some enthusiasm,” said Miami River Commission Chairman Horacio Stuart Aguirre.

The commissioners also heard from a dozen residents and property owners who spoke in favor of the project. City Commissioner Frank Carrollo, whose district includes the site, gave the project a thumbs up after negotiating some more concessions from Pearl. Carrollo said the developers had agreed to contribute $14 million to the city’s workforce affordable housing fund and to set aside a space for the city to build a small paramedic station. The first $1 million is due when Pearl and Chetrit submit site plans for the towers, which they expect will be sometime in February 2016. Another $1 million is due once the first building permits are approved.

“This is a beautiful project,” Carrollo said. “I am glad to say I met with the developer and his team to address some issues

 

Source: The Real Deal

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UM Students Develop Smart Technology Ideas For Design District

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One day Miami’s Design District may produce electricity using renewable energies, and have buildings adorned with rooftop gardens and structures that serve as indoor farms, with multiple levels of crops mixed with fresh markets and restaurants.

CraigRobins, Rodolphe-el-Khoury and Vicente Guallart

CraigRobins, Rodolphe-el-Khoury and Vicente Guallart

University of Miami architecture students are collaborating with Design District developer Craig Robins on ideas to make the neighborhood more technologically and environmentally friendly.

During a class at the university’s Coral Gables campus on Monday, the students — who are divided into six two-member teams — gave Robins their first presentations on how the Design District can become a prototype for how cities of the future can incorporate smart technology and sustainable energy.

“The university was very interested in working with the Design District to develop our vision on how we can add more value,” said Vicente Guallart, a visiting professor who was previously the chief architect in Barcelona, Spain. “Technology is not only about upgrading old systems, but also to introduce new principles.”

Architecture school dean Rodolphe el-Khoury said the students are participating in a class that teaches them to embrace emerging technologies in the shaping and the planning of Miami neighborhoods.

“Guallart was the obvious choice to lead this effort given his track record in transforming Barcelona into a smart city,” el-Khoury said. “The Design District has been very open to new trends and new thinking with a very enlightened developer. We recognized there is a synergy between our efforts and Craig Robins’ agenda in seeking innovation.”

Each team presented graphics and data on six topics: energy consumption, urban agriculture, urban re-industrialization, social interaction, the environment, and mobility. The energy consumption team presented a heat map and proposed how to produce electricity in the Design District using renewable energies. The urban agriculture team presented a proposal for rooftop gardens and new buildings that serve as indoor farms with multiple levels of crops mixed with fresh markets and restaurants.

The urban re-industrialization team showed renderings of digital fabrication factories that would produce products made of recycled materials. The social interaction team used geotagged social media posts to determine which pockets of the Design District lack human activity and proposed placing retail stores and restaurants along those areas. The two other teams are still developing proposals that will be finalized in December.

Robins, president and CEO of Dacra, told the students he was impressed with all their ideas. However, he said that some of the proposals would not be practical in the Design District. For instance, Robins commended the urban agriculture team for suggesting a multi-level urban farm on a property facing Biscayne Boulevard and abutting I-195.

“The land you identified will eventually have a building,” Robins said. “One thing to look at is the zoning and maybe get an additional two to three floors on top of the building for an urban farm.”

Robins also said a factory making products from recycled material would have a hard time staying in business.

“The challenge is  that you ultimately need a successful product,” Robins said. “The gap between being able to get to that from something that is thrown away is the hard part.”

 

Source: The Real Deal

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Miami Beach Oceanfront Acre Sells For $39 Million

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A Chinese investment group paid $38.5 million for less than 1 acre at 6747 Collins Ave. in Miami Beach.

China City Construction Company Da Tang Development and Management LLC struck the eight-figure deal with the Peebles Corp. for a 0.98-acre oceanfront site approved for high-density multifamily development.

The buyer, part of China City Construction Holding Group, has New York-based operations as well as offices in Miami, Los Angeles, San Francisco and San Diego. It operates six regional service centers in China, targeting high-profile investors looking to acquire U.S. properties.

China City Construction Co. acquired the site at 6747 Collins Ave. in Miami Beach.

China City Construction Co. acquired the site at 6747 Collins Ave. in Miami Beach.

Its new purchase sits between 67th and 69th Streets with the Deauville Beach Resort to the south and Sterling condominiums to the north.

Approved plans allow a 19-story development with 60 residential units and a 150-room condo hotel with gross building square footage of up to 93,600 square feet. The company appears to be wasting little time moving forward with plans for the site.

Dr. Shan-Jie Li, chief executive officer of American Da Tang Group

Dr. Shan-Jie Li, chief executive officer of American Da Tang Group

Information on its website shows CEO Shanjie Li and general manager Haibo Pan traveled to Miami and Atlantic City between March 31 and April 6 to scout development prospects. While in Miami, they met with real estate developers, architects and lawyers to create a land development plan, according to the site. Their meetings likely included CBRE Inc.‘s Miami-based hotel division since the real estate brokerage house announced Thursday it handled the massive sale.

CBRE executives Robert Taylor and Paul Weimer of the hotels division teamed with Gerard Yetming of the firm’s multifamily arm and Irving Padron of Engel & Volkers to represent Peebles Corp. They marketed the land as one of Miami Beach’s last vacant oceanfront properties.

“This beachfront site is ideally situated in one of the nation’s most sought-after real estate markets, a top-performing hotel market and a place where residential sales top $2,000 per square foot,” CBRE senior vice president Robert Taylor said.

Peebles chairman and CEO Donahue Peebles called the site a “prudent investment with immeasurable potential.”

“As the Peebles Corporation shifts focus to our large-scale projects in the Northeast, we will watch with great enthusiasm as China City Construction Co. brings this exciting development opportunity to life,” Peebles said.

American Da Tang Group and Borda Commercial Real Estate represented the buyers in the transaction.

 

Source: DBR

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Here’s What You Need To Know About Florida’s Solar Amendments

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There’s a fierce battle being waged in Florida over access to one of our state’s greatest resources: the sun.

With the effects of climate change ever more obvious, solar is a scorching-hot policy topic, and we’re seeing a lot of activity around two competing solar ballot initiatives in Florida — one backed by solar advocates and the other by utility companies.

The result? Even for die-hard solar power believers, the fight has gotten beyond confusing. So here’s a breakdown of the green energy tussle:

What’s The Problem With Solar In Florida?

With our bounty of sunshine, the Sunshine State should be a model for solar. But Florida, which ranks third in the nation in rooftop solar energy potential, currently comes in at number 13 in the amount of solar energy generated. We also have some of the lowest solar investment in the country. Instead, consumers rely on Florida’s “dirty” energy mix — natural gas (62 percent), coal (21 percent), and nuclear (12 percent).

Why Are We Lagging So Far Behind?

For a long time, everybody thought solar panels were only for rich people. But that’s not the reality anymore — the equipment is now affordable and accessible. In many states, consumers purchase from among hundreds of companies that install rooftop solar panels at little or no cost. In California, for instance, companies lease rooftop solar equipment to homeowners and bill them monthly for the electricity created, which lets homeowners enter the market for little or no money down and pay as they go.

But in Florida, consumers who want to get solar are forced to rely on big utility companies, like Florida Power & Light, which aren’t making it easy or cheap. In fact, Florida is one of only four states that require solar energy be sold exclusively by utilities. The result is limited options for installing solar and increased upfront financial commitment for consumers, which creates a major obstacle for most people.

What’s The Proposal To Change It?

After it became clear that politicians weren’t going to get it done, some upstart citizen groups decided to take things into their own hands. They created a 2016 ballot initiative, which would open up the state’s solar market, giving consumers a number of options for getting solar panels themselves. Floridians for Solar Choice, the group behind the initiative, is backed by an unlikely alliance — from environmentalists to Tea Party libertarians — who view the lack of consumer choice as both harmful to the environment and an infringement on personal freedom.

If it succeeds, the ballot initiative would let voters decide if they want to change Florida’s constitution to allow businesses other than utilities to sell solar power to consumers. Homeowners would also get the flexibility to enter into contracts with solar companies, also known as Solar Power Purchase Agreements (SPPA). Florida would be the 47th state to allow SPPAs.

What’s The Process To Get This Passed?

Before the amendment can happen, it first has to get on the ballot for voters. To get there, the group must collect signatures from 683,149 Florida voters, or 8 percent of the votes cast in the 2012 presidential election, by February. They also have to raise money to be able to pay county election supervisors 10 cents for each signature submitted. And the ballot language must also get the green light from the Supreme Court (which is likely to happen this week).

Right now, the Solar Choice campaign has about 171,000 verified signatures with another 100,000 awaiting verification. It has raised $1.3 million, most of it from the Southern Alliance for Clean Energy. It’s also been endorsed by a slew of environmental groups, both local and national.

So Who’s Against This?

Who do you think? The utility companies, silly. A group called Consumers for Smart Solar is challenging the amendment with its own rival ballot initiative, which seeks to keep the solar market strictly in the hands of the utilities and prevent homeowners or businesses from contracting with solar companies. It was created with cash from utilities like FPL, Gulf Power Co., and Tampa Electric Co. as well as groups tied to the billionaire Koch brothers. (Much of the Kochs’ vast wealth comes from their oil refinery and pipeline business.)

But backers of expanded solar power say the amendment is purposely crafted to mix up voters at the polls. According to the Energy and Policy Institute, “Consumers for Smart Solar is a utility and fossil fuel-funded campaign designed to confuse voters, attack the pro-solar Floridians for Solar Choice Ballot initiative, and protect the monopoly utilities.”

How Do I Sign The Solar Choice Amendment?

Go here, download the petition, and mail it in. You cannot fill it out online.

 

Source: Miami New Times

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