HomeMy WebLinkAboutMiami TodayCity shouldn't give a $200 million gift for an urban eyesore
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City shouldn't give a $20o million gift
for an urban eyesore
Such temerity: The developer of City Square at the Miami
Herald site is asking Miami's government to fund the full $200
million cost of the retail mall's parking garage - nearly $50,000 per
parking space.
Last year, the entire project of 641,104 square feet of retail, the
parking and two 62-story residential towers was reported to cost
$370 million. So the city is being asked to contribute more than
half of everything, just to build parking for the developer.
What's wrong with this picture? Everything.
Of course, construction costs have risen. Yet a May report the
developer commissioned said the cost of constructing the retail
plus parking is $277.3 million, of which government is being
asked to pay $200 million for the privilege of - what?
Well, if the city's Omni Community Redevelopment Agency
were to put up $200 million, Maefield Development of Indiana
would put up a 130-foot-tall mall plastered with 90-foot-tall
electronic billboards next to the county's new performing -arts
center. Just think, a taxpayer -supported eyesore rising where
government took pains to keep out high-rise condos that could
mar arts center patrons' view and where it sought to sink an
expressway below grade to keep the vista clear.
But we'd be getting more. There'd be 1,528 parking spaces that
would meet more than half the arts center's needs - presumably
at high cost to patrons and great profits to developers. There'd be
1,780 spaces for shoppers. And there'd be 744 spaces for the
Miami Herald, whose parking lots developers would buy for $190
million as the project's site.
Why, now that I think of it, a $200 million city subsidy would
cover all the land cost and then some. And the Herald's owners
would be able to unload the site, which has languished under a
sell agreement since March 2005 as the condo boom evaporated.
The city's $200 million would funnel cash to the McClatchy Co. to
trim debt it just incurred in buying the Herald.
See how well all of this can work out? The developer gets the
city to pay for the land, the Herald's parent gets the money, the
Herald gets its parking spaces and the property on which the
Herald building sits - which is being rezoned for massive
residential towers - would become saleable, too.
It's a win -win for everybody - unless you consider the public.
But, hey, you can't please everyone.
Project plans long had been announced when Maefield wrote to
the city this month asking for $200 million. Until a few weeks ago;
not a penny of government money had been under consideration.
Why should government fund an eyesore?
Well, the developer wrote, "Maefield Holdings, LLC, is
interested in your participation with a direct financial contribution
to offset the high costs associated with delivering a world -class
development for the benefit of the City of Miami. As such, the
Omni CRA financial commitment will maximize the benefit
delivered to the residents in the current environment of increase
construction costs and high land prices."
I didn't know the project was to benefit the City of Miami at
had imagined it was an investment from which developers
expected to profit, not a public service. Silly me.
And how much exactly have the land prices risen since the
articles online:
pp Chamber backs pay raises for
commissioners
Concourse to be closed after new
terminal is opened
► Playhouse close to hiring
consultancy
F Hurricane -ravaged Crandon Park
restaurant might be replaced
► Gables revives park -by -phone
program
▪ Transit panel asks state to
reconsider traffic ramp at port
• Office rents rising after years of fl
lining
UBMLTTED INTO THE
UBLIC RECORD FOR
ITEMTON sa-cam .
http://www.miamitodaynews.com/news/060831 /story-viewpoint.shtml
`f? 9/4/2006
City shouldn't give a $200 million gift for an urban eyesore Page 2 of 2
contract to buy was cut 18 months ago? Seems like $190 million
then is the same as $190 million now - far too much. But why
should the city bail someone out of a bad deal or rescue
McClatchy?
In fact, government has no business paying anyone to build on
a $190 million site, some of the community's most expensive
land. Though it's in a redevelopment zone, the area has been
booming with buildings that were paid for by developers, not the
city. This is not urban renewal.
In fact, it may not even be good for Miami. Looking at a mall the
equivalent of 13 stories covered with nine -story electronic
billboards, the city's planning report says, "the quality and location
of signage in the project is excessive and does not meet Zoning
Code." It calls the billboards "large-scale advertisement panels."
Two issues intersect here: Should the city allow the project at
all, and should the public finance it?
The Omni Community Redevelopment Agency is to address
city funding Sept. 5, though commissioners would have final say
as to whether the city would enrich developers to gain nothing
more than they were promised at no public cost six weeks ago.
Then Sept. 7, a special commission meeting will consider
zoning approval that McClatchy, the Herald's owner, requires for
the mall's building permit.
We're no fans of massive billboards, now barred here for good
reason. Making them electronic is worse. Sticking them outside
the performing -arts center is doubly offensive.
But that's aesthetics. Presumably, some people like highways
with billboards every 20 feet. Somebody somewhere must like 90-
foot electronic signs. There's no accounting for taste.
But there should be accounting for public money. This
community has a history of cutting atrocious deals with
developers of public projects, but a big -box mall is no more a
public project than is an office building or a condo tower. There is
no reason to consider a subsidy of any amount.
Then again, considering those who would benefit from the deal,
you never know, do you?
PreConstruction Projects
Vegas Condos -Lofts -VIP Pricing Trump
Tower II Pre -Sales
Chandler AZ Condos $130k+
Australian Designer Condos 6 models to
view, Move in today!
Submitted i ea r the public
record in ,connection with
item pz. 3on r- I ob
Priscilla A. Thompson
City Clerk
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http://www.miamitodaynews.com/news/060831/story-viewpoint.shtml 9/4/2006