Amazon.com has signed a lease for a distribution and fulfillment center in Doral that will could create approximately 500 new jobs in the area.

The announcement corresponds with increases in manufacturing activity, international trade, and online shipping in industrial real estate in South Florida.

The 335,841-square-foot space leased by Amazon is in the Miami International Distribution Center, located at 1900 N.W. 132nd Place.

KTR Miami constructed the building last year.

The driving force behind securing a distribution center in Miami is that most customers in the region are demanding same-day delivery. Not only is it great to have Amazon in Miami, but the center could generate approximately 500 new jobs, said George Pino, Principal at State Street Realty.

“I don’t know what’s next, maybe delivery by drones? But it’s great to have them here,” Pino said.

And not only is the Seattle-based company moving into Doral, it is also opening up a store.

“They’re doing a huge distribution facility, [but] they’re also opening up a brick-and-mortar store,” said Ken Krasnow, managing director for CBRE South Florida. That location has not been announced, he added.

The increased use of technology and online sales is redefining the supply chain of e-commerce retailers, and more of these companies are looking to improve speed of delivery to remain competitive.

Because of that, the location of warehouses and distribution centers is likely to play a critical role, more than ever before in industrial real estate, Pino said. Amazon’s Doral lease is just one way to get packages on front stoops quickly.

 

Source: SFBJ

The performance of the Miami real estate market remains consistent with record activity in 2013 due to strong demand despite increased existing and new construction supply.

Median and average sales prices continue to rise, according to the latest statistics from the Miami Association of Realtors.In the third quarter, the median sales price for homes in Miami-Dade County was $250,000, an increase of 8.7% compared to last year while the median sale price for condominiums rose 3.5% to $189,900. These third quarter price increases mark 11 consecutive quarters of growth for both single family homes and condominiums.

‘The Miami real estate market continues to attract the attention of both domestic and foreign buyers, fueling solid growth and creating opportunities for both buyers and sellers, said Liza Mendez, chairman of the association’s board. ‘While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market,’ she added.

In Florida the state wide median sales price for single family existing homes in the third quarter was $182,000, up 4% from the same quarter a year ago, according to the latest housing data released by Florida Realtor. The median sales price for condominiums in Florida was up 6.9% compared to the same quarter last year at $139,000. Compared to last year, the average sales prices for single family homes and condominiums in Miami-Dade County increased 14.9% to $438,431 and 3.8% to $341,927, respectively.

There were 7,632 homes and condos sold in Miami-Dade County during the third quarter of 2014, a decrease of 5% compared to the third quarter of 2013, when there was record sales activity. Sales of single family homes increased 0.2% to 3,552, while condominium sales decreased 9% to 4,080 compared with the same period in 2013.

‘In Miami, market performance continues to vary greatly depending on location, property type, price range and other factors,’ said Franciso Angulo, residential president of the Miami Association of Realtors. ‘While in most cases, increased supply is offering buyers more choices and less pressure, others are still experiencing significant competition and bidding wars,’ he explained.

He pointed out that the Miami Association’s initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market. In addition, the fact that sales remain at historically strong levels while inventory is growing points to seller confidence. Sellers are listing properties for sale because they have confidence in the market, according to Angulo.

Home and condominium listings also increased in the second quarter but by narrower margins. There were 6,237 new single family home listings during the third quarter, a growth of 5.1% relative to the same period last year. New condominium listings increased by only 1% from 8,282 in the third quarter of 2013 to 8,366 this year.

At the current sales pace, current inventory represents 5.7 months of inventory for single family homes and 8.1 for condominiums. Compared to the third quarter of 2013, months supply of inventory for single family homes and condominiums increased 13.5% and 33.6% respectively. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

The median days on the market of single family home listings during the third quarter was 45 days compared to 37 days during the same period last year, an increase of 21.6%. Similarly, the median days on the market for condominium listings were 57 days compared to 46 last year, an increase of 23.9%. In the third quarter some 55% of closed sales were all cash compared to 59.2% a year ago. All cash sales were 40.4% of single family home closings and 67.5% of all condominium sales.

Since nearly 90% of foreign buyers pay cash, the association says this reflects Miami’s position as a top market for foreign buyers. Miami has a significant percentage of international buyers, generating more than double the cash transactions than the national average.

 

Source: NuWire Investor

WeWork signed a lease for 40,000 square feet to open a co-working space in Miami Beach.

CBRE’s Maggie Guajardo Kurtz and Nancy Cibrano, of N Cibrano Realty, were the brokers for the landlord at 350 Lincoln Road. The 50,000-square-foot building, owned by The Wings Group, is now fully leased.

“This property’s location on the doorstep of the world-renowned Lincoln Road, along with its unique, historic features, makes it ideal for WeWork’s first Miami location,” Kurtz said in a news release.

WeWork offers flexible leases, from individual desks to small office spaces. Tenants are supported with high-speed internet and conference rooms, and also get discounts on services such as Shopify, Uber, Zipcar and legal services. It has more than 20 locations.

“The vibrancy of Miami’s small business and start up communities is the perfect match for WeWork’s unique offerings and energy,” said Mark Lapidus, director of real estate at WeWork. “We look forward to opening our doors and fueling the growth of the city’s many small businesses.”

WeWork should open in Miami Beach in the first quarter.

 

Source: SFBJ

An anonymous donor has pledged $175,000 to help the city of Miami remove a large mound of unearthed, toxic soil sitting in the middle of a contaminated Coconut Grove park.

Letters from the city announcing the donation were delivered this week to residents living near Merrie Christmas Park, located on South Le Jeune Road and Barbarossa Avenue on the border between South Coconut Grove and Coral Gables. The park has been closed for more than a year due to unsafe levels of heavy metals like barium and arsenic in the soil.

The city is pursuing a county-approved $1.5 million plan to remediate the sloping, bowl-shaped lawn by covering contaminated soil with two feet of clean fill. But aspects of the project proved controversial with neighbors, who have been especially opposed to a proposal to redistribute tainted soil from higher elevations of the park to lower elevations in order to re-grade the park.

A group calling itself Friends of Merrie Christmas Park demanded the city remove the unearthed tainted soil altogether. For weeks, Commissioner Marc Sarnoff and Deputy City Manager Alice Bravo told residents the city could not afford the dumping fees at Merrie Christmas and the five other contaminated city parks, arguing that what is done for one should be done for all.

But this month, during a contentious public gathering at City Hall, Sarnoff and Coral Gables Commissioner Vince Lago told residents they’d help raise private donations to foot the bill if neighbors raised $50,000 themselves. Sarnoff, though, dropped that request. And on Wednesday, the city sent out a letter from Capital Improvements Director Mark Spanioli announcing that the money had been raised, and the mound would be removed.

“We should probably have something in writing the next few days,” said a grateful Lago, who like Sarnoff declined to name the donor.

Sarnoff said the $175,000 donation would be made directly to the city of Miami, in the form of a grant. He said the remediation project could be completed by Christmas.

The news pleased some frustrated residents, who nevertheless remain skeptical about whether the city is pursuing an appropriate plan for the park, which sits in a residential neighborhood. Michelle Niemeyer, an attorney and former commission candidate representing three neighborhood families, said there are reasonable alternatives to the city’s plan that could still be considered.

“My client’s goal is to have a cleanup that’s adequate to protect the safety of their families and their property values, and the steps that the city is taking are a great move in the right direction,” said Niemeyer. “We’re hopeful we’ll be able to fully resolve the situation without a lawsuit.”

 

Source: Miami Herald

Miami-Dade’s debt tax will soar in the coming years, even if voters reject a $390 million borrowing plan for a new courthouse, according to county forecasts.

Without a dollar of new debt for the judiciary, county forecasts show the special property tax that pays for the county’s debt is set to jump by about 50 percent in 2016. That’s thanks to the arrival of new debt that voters already approved for the county-owned Jackson hospital system, as well as rapidly increasing borrowing costs tied to a nearly $3 billion bond program that voters approved in 2004. “I can’t borrow money without having an impact on taxes,” said Ed Marquez, deputy county mayor for finance. “There is no free lunch.”

Currently costing $45 for every $100,000 of a property’s value, the debt tax funds borrowing approved by Miami-Dade voters and generates the revenue behind a wide portfolio of construction projects.  This year it is backing about $1.4 billion in borrowed funds used to create the new Pérez Art Museum Miami, expand county park facilities, build the Miami-Dade police headquarters, dig a tunnel to PortMiami and back hundreds of other projects. It also would allow Miami-Dade to borrow $75 million for an economic-development grant program that Mayor Carlos Gimenez wants to use to provide $9 million for the SkyRise Miami project.

MiamiDadeDebtTaxEven with property values rising more than 5 percent annually, a county forecast shows the debt load will get expensive enough that the tax will need to grow next year to $69 per $100,000 of value. That’s about a 50 percent increase. By 2020, it would cost $84 per $100,000 — about 85 percent higher than it is today. Like all property taxes, the debt tax is technically levied in “mills” per $1 of taxable assessed property value. One mill is one-tenth of a cent. The current debt-tax rate is 0.45 mills, which amounts to 45 cents for every $1,000 of value, or $45 per $100,000.

In an interview, Gimenez said the county’s conservative real-estate forecasts could mean the debt tax won’t have to go up as much as forecast. “Hopefully that tax rate can go down in the future,” he said. “I would like to keep it as low as possible. But it’s how much we borrowed versus what the tax base is.”

Even with the forecast increase, the debt tax would remain a sliver of the average tax bill. The current debt tax rate is one-tenth the size of the general property tax rate of $466 per $100,000, which funds police, parks, social services and other core county services. “It’s kind of a footnote on the tax bill,” said Terry Murphy, a former County Commission staffer now working as a consultant for unions and other groups. “I don’t think anyone pays any attention to it.”

Still, the debt tax is already far larger than the county’s library tax, which is $28 per $100,000 of taxable assessed value. The debt tax also played a role almost five years ago in propelling Gimenez into the mayor’s office.

In 2011, then-Mayor Carlos Alvarez’s budget boosted the debt tax more than 50 percent — from 0.29 mills to 0.45 — in order to combat the sharp drop in revenue brought on by the collapse of South Florida’s real estate market. The move violated a pledge county leaders made in 2004 to keep the rate below 0.40 while campaigning for the $2.9 billion Building Better Communities program. The BBC initiative, passed handily by voters, still accounts for the vast majority of borrowing costs funded by the debt tax.

Gimenez, at the time a county commissioner, joined a minority opposing the debt-tax hike. “It’s important to keep your word,” Gimenez said of the 2004 pledge. When he won election after voters recalled Alvarez in 2011, Gimenez rolled back his predecessor’s tax increases, including a reset of the debt tax to the prior year’s level.

The debt-tax relief didn’t last long. Last year, Gimenez proposed a hike to 0.42 mills as part of a larger tax increase to boost spending on fire, libraries and animal services. Facing a political firestorm, the mayor backed off on the tax-hike push for services, but the debt-tax increase survived. With little fuss, it increased a tiny bit again in the 2015 budget year, which began October 1.

In a recent interview, Gimenez said the real estate crisis and voters’ desire for the BBC projects left Miami-Dade with no choice but to move past the ceiling mapped out during the housing boom. “I’m a low-tax, no-increase kind of guy,” he said. “But I do believe in infrastructure. [It’s] one of the things that separates us from the Third World.”

One reason the debt tax tends to avoid the firestorm that follows even tiny increases in other property taxes is the fact that it pays off debt previously endorsed by voters. And while the county mayor and commissioners decide every 12 months when to borrow the money and where to set the tax, the actual rate is driven by debt incurred in prior years.

On Nov. 4, voters may authorize borrowing up to $393 for a new courthouse. But it would not be until 2021 that commissioners would need to increase taxes by a noticeable amount to pay back the money, according to the forecast prepared by the county budget office.

The $393 million sought for replacing Miami-Dade’s moldy and cramped 1928 civil courthouse with a new facility in downtown Miami is equal to about 25 percent of the tax’s current debt load.

With the forecast debt-tax rates, new courthouse borrowing would, on average, push up the tax an additional 8 percent during the next 20 years — about $5.50 for every $100,000 in value, according to county projections. (Over 30 years, the courthouse bonds would cost an average of $7 for every $100,000 in value, according to the forecasts.) “When you look at the average value of a house, it’s so tiny,” said Katy Sorenson, a former county commissioner now running a Miami-Dade panel overseeing spending on the BBC program. “It’s an investment in the future. It’s for future generations.”

The entire courthouse debt would cost Miami-Dade an average of about $24 million a year to pay back through 2045, according to the forecasts. In all, the payments, with interest, would total $733 million over 30 years.

Ballot items allowing Miami-Dade to incur debt for projects are typically called bond programs, since governments borrow money by selling bonds on Wall Street. Investors make a profit on the interest payments that governments pay bond holders, and those payments come from the debt tax.

Bond payments for Jackson account for about 35 percent of the debt-tax increase in 2016. The rest comes from increased borrowing costs tied to the $2.9 billion BBC program. Without a larger tax roll, Miami-Dade can control the tax only by delaying existing payments or scrapping future borrowing.

Esteban “Steve” Bovo, one of two county commissioners to vote against the courthouse plan, said Miami-Dade shouldn’t minimize the impact of a debt-tax increase. “There’s a reality that the number many of us think is insignificant is significant to others,” he said.

Advocates of the courthouse plan say Miami-Dade’s justice system desperately needs the money to replace the existing facility, which has half the courtrooms needed for all 40 judges and leaks to the point that some areas are closed because of mold contamination. “This is a crisis situation,” said Commissioner Sally Heyman, who joined the majority of the 13-member commission last month to send the courthouse item to voters. “It’s become a situation of: Do we invest in ourselves?”

Of the $393 million sought from voters, about $25 million is slated for repairs to the existing building so it can last the five years needed to build a replacement. Opponents of the courthouse plan say Miami-Dade already has about $78 million available for repairs, and argue the delay should be used to craft a more thoughtful strategy for replacing the current facility.

The $78 million would also come from the debt tax, since the money was earmarked in the original 2004 BBC plan for court facilities. Borrowing it would also contribute to a tax increase, though the extra debt is wrapped into the current county forecasts. “Something has to be done,” said Joseph Serota, a Miami lawyer helping the new-courthouse campaign. “The longer we put it off, the more expensive it is.”

Scattered polling shows the courthouse issue faces an uphill climb with voters, and one challenge is the unusually blunt language that county commissioners inserted into the ballot item. It states that issuing the courthouse bonds means “potentially increasing property taxes.”

The phrase “property taxes” did not appear in the other major bond items passed by voters during the past 10 years. Neither did the concept of any tax actually “increasing.”

The 2004 BBC ballot questions talked of “bonds … payable from ad valorem taxes.” A $1.2 billion borrowing plan for the county school system, which has its own debt tax, asked voters in 2012 to approve bonds “secured by the full faith and credit and ad-valorem taxing power of the district.” The Jackson question last year wanted permission to issue bonds “payable from ad valorem taxes collected in Miami-Dade County.”

Latin for “to the value,” ad valorem is essentially the legalese equivalent of property taxes. All three ballot questions passed easily.

Jorge Luis Lopez, a County Hall lobbyist and a lawyer helping run the courthouse campaign, said the tradition of leaving “property tax” out of past ballot questions made them less challenging to pass. “We’re the first,” he said. “We may have to pay a price for that.”

 

Source: Miami Herald

As a city sitting virtually at sea level, Miami has been called ground zero for the problems posed by climate change, a place where rising sea levels threaten its future existence.

The latest forecast of sea level rise from the Intergovernmental Panel on Climate Change, for example, predicts that by later this century, global sea levels will be two feet higher than they are today, quite possibly higher. Under that scenario, the nuisance flooding in Miami that periodically comes with high tides will be a daily affair, the storm surge impact of hurricanes will be amplified, and lower-lying areas of the city will be uninhabitable. That’s actually not the worst of it: Under higher sea levels, the Biscayne Aquifer—where southeast Florida draws its drinking water—will increasingly suffer from saltwater intrusion, a problem for which there is no foreseen solution other than the investment of billions of dollars in water treatment facilities.

As bleak as this future would seem to be, few with real skin in the game in Miami—residents, real estate investors, and companies—are backing away from long-term investment. Exhibit A: Miami has been undergoing a nearly unprecedented surge in real estate construction, with planning discussions centering less on who will leave first and more on how high new projects can be built. Among the projects under way, for example, is an 80-plus-story behemoth in Brickell Center, the city’s urban core. If Miami is on the verge of being a modern-day Atlantis, those who would have the most to lose are apparently not buying it.

Why this apparent deafness to the dire warnings? Well, here’s a paradox. If one talks to developers and city commissioners in the area, it’s hard to find evidence of overt denial of current and future risk; Miami was a city, after all, almost completely destroyed by a hurricane in 1926, and most concede that a recurrence is a matter of when, not whether. Likewise, few deny that the city’s unique geography makes it vulnerable to the effects of rising sea levels. It’s a long-term problem that the planning commissions of Miami and Miami Beach acknowledge exists and threatens to get worse.

Where locals disagree with outsiders, however, is about how best to deal with the problem. Rather than sounding alarms and cutting back on development, there’s an implicit sense that the best approach may be, ironically, to do the opposite. And while a strong case can be made that this behavior has no rational basis, it may represent Miami’s best long-term hope for dealing with the threats posed by climate change, one that other cities might be advised to mimic: The best strategy, in fact, may be to foster a collective belief that there’s no threat—or at least not one serious enough to lose sleep over.

Before an explanation why, let’s first address the two standard explanations for the building boom, explanations that are indeed part of the puzzle. The first is that real estate developers, by their nature, are gamblers with short planning horizons. In the late 2000s, the real estate and equities crash quickly wiped out many builders. One might assume that would have made them skittish. To the contrary, the quick recovery that followed taught most that big risks are worth taking, and are survivable. While developers today may concede that sea levels are rising, it’s a risk that lies well beyond their investment horizons, and in any case is dwarfed by the more immediate risk of a returning recession.

The second explanation is that many of the buyers for all the new condo units are cash investors from Latin America, and the risks of Miami real estate—overdevelopment, speculation, environmental unsustainability—remain small relative to similar investments back home. No one is saying that real estate isn’t risky in Miami, or that sea level rise is fiction. What they are saying is that all investment carries risk, and development there is a bet they’re prepared to take.

But there’s another rational reason why even risk-averse residents in South Florida might, paradoxically, hope that buyers and sellers remain collectively naïve, or at least act as if they are, about the risks of sea level rise. South Florida relies almost exclusively on real estate taxes to fund public infrastructure. If the threat (or reality) of sea level rise suppresses property valuations, there will be less public money to address the risk. As an illustration, the head of public works for Miami Beach recently argued that the city would be wise to accelerate its investments in storm water drainage improvements ($100 million now and $400 million planned) simply because the city has the tax base to afford it—something it could not necessarily count on in the future.

Because buyers and sellers in Miami Beach have yet to connect the dots between nuisance flood events and the future consequences of sea level rise, property buyers continue to be drawn to the area, and development projects continue unabated—both of which are essential for a continued healthy tax base. If and when buyers and sellers do connect the dots, everything changes: Doing so could spark a rapid downward wealth spiral that, once initiated, would be difficult to reverse. Lowering property valuations would reduce the city’s tax revenue which, in turn, would leave it with less money to shore up the city against sea level rise. The city would then be forced to choose between two losing remedies: increase taxes on those who choose to stay, or decline to make the needed improvements. Both, of course, would only exacerbate the problem. Miami’s best move at that point would be to go hat in hand to the state and federal government for a bailout, but that seems unlikely. Quite aside from the “I-told-you-so” reactions that such pleas might evoke, almost all coastal communities would be facing similar problems and asking for commensurate help. Miami Beach as we know it now could cease to exist long before the Atlantic reclaims Collins Avenue.

Given this, South Florida’s best shot at coping with the long-term environmental threat may be a strategy that no doubt seems perverse to environmentalists: aggressively foster a collective belief that sea level rise is not something we urgently need to worry about. South Florida is potentially facing a huge adaptation bill down the road, and paying for it will require a healthy tax base. Keeping that tax base flush depends on a cooperative equilibrium where buyers and sellers maintain an optimistic view that it’s tomorrow’s problem, one that will be easily tackled when the time comes. This keeps the coffers filled and provides the resources needed to pay for the engineering adaptations required to keep the game going.

In this light, Miami’s construction cranes aren’t monuments to climate change denial.  Quite to the contrary—they’re the instruments that may, indirectly, allow the city to survive global warming. Controlled ignorance, in some cases, can be a good thing.

 

Source: Bloomberg Businessweek

ParkGrove2The latest renderings are out for Park Grove, a luxury condo project in Coconut Grove designed by starchitect Rem Koolhaas.

 The towers’ shapes were inspired by Biscayne Bay’s islands, according to Curbed.

ParkGrove3The development is a joint venture between Terra Group and The Related Group and plans call for two 20-story, 72-unit condo towers and a third 20-story building with 140 units.

 

Source: Real Deal

Miami-Dade has long been a place of varied styles, each city within the County bringing its own special flare to the mélange.

The different neighborhoods have experienced their own evolutions since Miami’s inception in 1896. Coconut Grove has had its own unique evolution.

ULI SE Florida/Caribbean will be hosting an event focusing on the latest transformation of one of Miami’s most storied neighborhoods with its residents, architects, investors, developers, and historians.

On Tuesday, November 4, 2014, from 5:30 PM – 8:30 PM, panelists will discuss how it will continue to remain ahead of the curve. A new standard has been applied to the quality of housing and retail uses in The Grove.

The event will take place at Park Grove, located at 2701 South Bayshore Drive.

Confirmed speakers include:

  • Bernardo Fort-Brescia, Principal, Arquitectonica
  • Ezra Katz, Chairman/CEO, Aztec Group, Inc.
  • Justin Kennedy, Co-CEO, Grass River Property
  • David Martin, President, Terra Group
  • Commissioner Marc Sarnoff, City of Miami
  • Moderator: Dr. Paul George, Ph.D., Professor, Miami Dade College

Additional panelists to be announced.

CLICK HERE FOR MORE INFORMATION AND TO REGISTER

It began with lead and arsenic in the soil at a small Coconut Grove dog park. Then elevated levels of barium and copper beneath a sloping lawn near residential Coral Gables. Followed by antimony and iron around the playing courts of Douglas Park.

One by one, the city of Miami shut down a series of parks starting last September after tests showed elevated levels of toxins in the soil. The closures alarmed residents and embarrassed city officials, who’d known for years about contamination concerns linked to an old West Grove incinerator.

All 112 of Miami’s parks were tested, and portions or all of seven closed for clean-up. One year later, the city is prepared to spend an estimated $11 million — more than triple initial projections — to remediate and reopen the tainted parks. Their plan is simple, though to some disconcerting: leave the contaminated soil in place and bury it two feet below the surface. “This two-foot option is not only an option we’re applying at all our parks, it’s the option that the county applies itself at their parks that get remediated,” said Deputy City Manager Alice Bravo. “This is the standard in South Florida.”

Under the plan, two feet of clean fill will be placed over contaminated soil. If the fill is less than two feet thick, a liner is also spread between the soil and the clean fill, explained Wilbur Mayorga, chief of the county’s Division of Environmental Monitoring and Restoration. New grass, artificial turf or recycled rubber mulch or mats top the fill, although those options are purely aesthetic, he said. Plans can vary from park to park, depending on the terrain and type of structures in place. “The approach is not new,” Mayorga said, explaining that both federal and state environmental rules allow clean-up methods that “rely on a cap or a barrier to eliminate any exposure to contaminated soil.”

Some parks, like Blanche Park, a small neighborhood park popular with tots and dogs, and Curtis Park, a much larger sprawling sports complex north of the Miami River, will have wells to monitor groundwater and ensure contamination doesn’t spread. At Merrie Christmas Park on South LeJeune Road in Coconut Grove, the city plans to move between a foot and two feet of contaminated soil from one area to another to level the park according to new design plans, Mayorga said.

Working with county regulators, the city has to continue to conduct inspections of the parks after reopening them. Covenants will also be attached to the land to warn future generations of the contamination, Mayorga said. “But at the end of the day, all contaminated soil in the park will have the required and approved engineering controls on top,” he said.

To date, the city has reopened only Blanche Park and has had its plans approved by the county for Merrie Christmas Park, half of which is still closed. Plans for Curtis, Douglas, Billie Rolle, Southside and Bayfront parks still need the county’s approval. But the city has surveyed the extent of the contamination at most parks, perhaps marking the end of a long period of uncertainty about the city’s problems.

Concerns about toxins and contamination first arose in 2011, when the city discovered contaminated soil at a firefighter training facility located at an old, defunct Jefferson Street incinerator dubbed Old Smokey by residents in the West Grove. County regulators ordered the city to find out exactly what was polluting the soil and address it, but it took two years to issue a report, which showed elevated levels of arsenic and other heavy metals like barium and lead. Even then, the contamination only became public knowledge after a University of Miami graduate student stumbled upon it.

Under intensified scrutiny from the university, residents and county regulators, Miami officials began sampling soils in a one-mile radius. When contaminants were discovered at nearby Blanche Park and then Merrie Christmas Park, the county ordered the city to test all its parks, setting off the discovery of five other contaminated sites.

The city’s slow response has fostered cynicism from residents near the parks and activists, who continue to distrust Miami’s handling of the matter. A group of residents around Merrie Christmas Park is protesting plans to redistribute some of the toxic soil beneath the park’s surface, and say they only learned about the details from the city’s contractor.

Anthony Alfieri, a UM law professor whose Environmental Justice Project unearthed contamination concerns, said the city continues to keep residents in the dark about its plans and actions. The city, by designating its contaminated parks as “Brownfields” this July in order to receive reimbursement from the federal government for clean-up efforts, increased its obligation to seek public input. But Alfieri said it doesn’t appear the city has done any outreach. “The city and the county are clearly committed to a policy of non-accountability,” Alfieri said. “And they ensure that by failing to reach out to the community and inform the community.”

Ken Russell, a woodcarver who lives next to Merrie Christmas Park, has loudly criticized the city’s plan and says he worries about the health of his three children, ages 12, 2 and 5 months. He says he understands that capping toxic soil is safe but is frustrated that the city’s plans will move contaminated material from the western edge of the park to some depressed areas that are currently closed off to the public but apparently untainted.

Another issue for Russell is the county has marked his home as being located within a quarter-mile of a contamination site, which he and other neighbors worry lowers their property values. He said if the city is digging up soil, it ought to simply remove it. “The city did this dumping. Even though it was 50 years ago, it’s their doing and it’s their responsibility to clean it up,” he said. “We want a clean-up, not a cover-up.”

Bravo stressed that the city’s plans are safe and sound, and she said the cost of removing toxic soils is simply too steep. Bravo said estimates put the price of removing soil at Merrie Christmas Park at $3million, though the city isn’t sure about the depth of the tainted soil.

By designating six closed parks as Brownfields — Blanche Park, the first to close, was reopened months ago — the city can apply for reimbursement of expenses up to $500,000 for each park. The city is also hoping that dredge from the port tunnel dig can be used as fill if it’s left over from a bond-funded project at Virginia Key. But even then, the final price tag for clean-up could be in the millions, and Bravo said the city doesn’t have the money to remove the tainted soil. “When this material is removed it has to be taken to a certain dump site approved by the county,” said Bravo. “The disposal is very expensive.”

Russell has in recent weeks gone back and forth with Commissioner Marc Sarnoff over the city’s plans. Sarnoff, who lives across the street from Blanche Park, defended the city’s handling of the closed parks. He said he has talked at least a dozen times with homeowners groups about what the city is doing to address clean-up issues, and said the city held two public hearings with scientists in attendance to answer questions when concerns were first raised.

Sarnoff said he understands fretting about real estate values — his home is also marked as being next to a contaminated site — but believes they’re overblown. He and Bravo say the city has done its best to publicize the issue, but are trying to schedule another meeting to explain what’s happening with its closed parks. “I guess you can always do more,” said Sarnoff. “But is the city doing the job it should be doing? In my estimation it’s doing a credible job.”

The Parks

Blanche Park, 3045 Shipping Ave.: The neighborhood playground and dog park remained open after contaminated soil was found in September 2013 because it was almost entirely covered with astro turf. Workers paved a parking area and installed monitoring wells to test groundwater, although no drinking wells are in the neighborhood. Total Cost: $700,000.

Merrie Christmas Park, South Le Jeune Road and Barbarossa Avenue: City workers reopened part of the park in February. Clean-up plans now underway call for digging up a foot to two feet of contaminated soil in the western half of the park where toxic metals are concentrated and using the soil to regrade part of the bowl-shaped park under new design plans. The city also plans to excavate contaminated soil around trees and install rubber mulch and lay recycled rubber mats on playground areas. Any area with contaminated soil will be covered with a liner or two feet of clean fill. Projected Cost: $1.5million.

Curtis Park, 1901 NW 24th Ave.: The city reopened part of the large sports complex, including basketball courts, in June, but has kept areas where contaminated soil is exposed fenced. A clean-up plan was due Sept.17, but has not yet been submitted. Estimated Cost: $4million.

Douglas Park, 2795 SW 37th Ave.: The third park closed after contamination was found at Blanche and Merrie Christmas, the 10-acre park near Coral Gables had high levels of toxic metals from ash in two areas. The city, which will discuss funding clean-up efforts at the park Monday, must submit clean-up plans to the county by Oct.5. The city must also test soil off site to determine the extent of contamination. Projected Cost: $3.5million.

Billy Rolle Domino Park, 3400 Grand Ave.: A neighborhood hangout with shady domino tables, the city is considering installing a liner and new soil as well as a monitoring well. A plan for the clean-up is due Sept.30. Estimated Cost: $250,000.

Southside Park, 100 SW 11th St.: A pocket park near downtown, the city still needs to finish mapping the boundaries of the contamination. A clean-up plan is due Sept.30. Estimated Cost: $1million.

Bayfront Park, 301 Biscayne Blvd.: Part of the downtown park remains fenced, but addressing contamination in the park may be complicated by its terraced design. A clean-up plan is due Oct.6. No cost estimate available.

 

Source: Miami Herald

JPMorgan Chase Bank will open a branch in Coconut Grove’s trendy CocoWalk retail, dining and entertaining complex.

The banking giant signed a 10-year lease for 3,117 square feet in CocoWalk, at 3015 Grand Avenue, according to the property owner.

It should open in January. It will occupy GAP’s former first floor space.

According to the Federal Deposit Insurance Corp., only six banks were in the zip code 33133 as of June 30, 2013. This would be Chase Bank’s first location there.

Chase Bank ranked fourth in South Florida deposits with $12.4 billion for a 7.1 percent market share. It had 175 branches here in 2013.

 

Source: SFBJ