1616-23 Various Miami Beach 7.......-----
.
THURSDAY, --
MARCH 24,2005 I EDITOR:LISA GIBBS Igibbs@herald.corn 305-376-3578 or 954-764-7026 ext.3578 I THE HERALD 4
THE MARKETS
STOCKS,MUTUAL FUNDS,5-6C _ TOURISM REAL ESTATE
DOW 30 INDUSTRIALS A '. i Eturgi
, .,... . .
- •
10,456.02-DOWN 14.49 ,
. .. •.
;t e
AS&P 500 STOCK INDEX �I' a�` ;;
1,172.53-UP.82 .' �4 '
t
® 1,990.2NASDA2-UP 88 COMPOSITEit
RMIX 'a
• ing
:' J I i •■
ri U.S.10-YEAR NOTE qt. iJrli
..
4.59-DOWN.04 s.
s ,
CRUDE OIL PER BARREL { 1 '
53.81-DOWN 2.22 •,¢ fr1 7.
•
BUSINESS BRIEFS ; eyes
iti. - • �'
A
•MARKETS ' �" `\
Stocks finish mixed ., 1 �;
' ,e $ ,, .
Stocks wobbled to a mixed finish XCoral
Wednesday as dramatically lower oil ** a
prices offset a .
report that .,_,
CONSUMER PRICES offered new evi- ••),. rAIII . Gable,
�P'`�
Month-to-month
dence of rising
6%9echan - - inflation..
The LaborNOELLE THEARD/FOR THE HERALD
0.4 DepartmentHOT SPOT:Andrea Spiridonakos, a dancer with the Miami City Ballet, relaxes with friends at the
os reading of its Ritz-Carlton South Beach. The hotel promotes its Saturday night entertainment as one of the
o I' �� f t� Consumer Price places to be on the Beach.
Index showed a Burger King's new holm
hi her-than-ex- could be in one of two ne
-
o.z , „ „r„r,, g
1'04 j'os pected 0.4 per office towers developer
SOURCE:Bureau of Labor
cent rise�for Feb- Armando Codina plans fc
Statistics WaEconomy.com ruaryascostS Coral Gables.
rose for items
like energy, BY ELAINE WALKER
healthcare and education,adding to ewalkeraherald.com
inflation concerns raised by Federal Developer Armando c
Reserve policymakers on Tuesday.It plans to build two multistor
BY MIXING STYLE WITH SERVICE, LUXURY HOTELS IN MIAMI ARE buildings in Coral Gables
see,but the sharp drop in oil and the COMPETING WITH SOUTH BEACH CLUBS TO DRAW TRENDIER CROWDS site of the current City N
was the last thinginvestorswantedto
fact that much of the market's infla- Bank of Florida building an
tion fear had been priced in ahead cent parking lots.
y BY DOUGLAS HANKS III The larger of the two bu
kept stocks from posting precipitous dhanks aherald.com x..'
declines,analysts said. could become the new work
The heavybass line of techno- r e `h quarters for Burger King.
r.7y.
•DELTA pop pulses from the speakers set , s' Codina said he currently
` deal with the fast-
More cost cuts comingup poolside.A DJ with blond high-
lights and translucent glasses 1 I food chain, but
Delta Air Lines(DAL)will have mans his turntable by the hotel c "this is one of the
to cut more costs to deal with bar. • places they are •
ikom
increases in fuel prices rais- An evening at the hip Delano in considering." r.A �
ing ticket fares alone will not becausedo the South Beach?No,it's Friday night r. / "I would eat
job,the struggling carrier's chief at the elegant Four Seasons in
g hamburgers for a
executive said Wednesday. Ml ;` month to get them
CEO Gerald Wednesday.
said he "It's pretty hot on Fridays and as a tenant,"Cod
believes the nation's third-largest air- Saturdays. Friday is bigger," ,�> Ina said. INCENT
line can avoid a bankruptcy filing explained hotel spokeswoman Burger King Develol
though he indicated at an investor Eveliny Bastos-Klein. • •r x,�. :' has been mulling Armanc
conference in New York that it hasn't Tis week will see South Beach _ `_ • r < , ± leaving Miami Codina
ruled out such an option. overrun by clubbers and DJs in a and moving to working
"There are always a lot of sur- town for Winter Music Confer- r a� Ms"t. Texas, but Chief deal BurgertoI
prises in the airline industry,"Grin-
est
billed as the country's larg- `;• 5 ,w ';'� .,,,••••-..,
f ;. , Executive Greg er N
stein said in response to a question est celebration of electronic dance • ` ' ' . ,t?aw`1 Brenneman said Miami-D
about the possibility of banlo Ltptcy, music. But the club scene is so .tea'-, f - earlier this month County.
central to the Miami area's image ,-� - -
g �,,j - S �- he hoped to stay if would e,
•AUTOMOBILES that even top-flight hotels feel Codina found a hambur
GM, Ford sales improving obligated to create a hip vibe. NDELLETHEARD/FOR THE HERALD suitable site and for a mo
The Ritz-Carlton South Beach SPINNING FOR THE CROWD: DJ Elaine Lancaster turns the hotel the company
General Motors Corp. oasts of having the exclusive bar of the Ritz-Carlton South Beach into a party. The hotel p e get then
p.(GM)and received the tenant,'I
Ford Motor Co.(F),the largest U.S. chain's only "resident DJ," and boasts of having the exclusive chain's only 'resident DJ.' financial incen- said.
•tutoakers,said they expect their promotes its Saturday night as tives it was seek
m
ch U.S.sales of cars and trucks to one of the places to be on the party every Friday on Brickell broader trend in the lodging ing from the Governor's Offi
r prove after declines in the year's • Beach. Hoping to update its aus- Key. g g Dev lop Trade and de Cc
trst two months. tere image, Grove Isle Resort is "This partywould not work in bars industry,
from loss leaders to Commissioners
Miami-Dade Cc
GM boosted rebates to help clear pushing a new nickname among Hong Kong.It would not work in profit centers.Conventional wis- Commissioners have a38
Baler lots,and Ford has new and locals("The Grove")and building our London hotel,"said Mandarin dom used to hold that hotel guests lawarded ion incentive package a$5.38
evamped models including the Five a fire pit and lounge outside to spokeswoman Alexandra Wen- prefer to party anywhere but
undred sedan and Mustang sports draw crowds..About 1,500 people sley."It works here because that is downstairs;now hotels are court- Even without tBurgerasKing,•
ar expected to boost sales. descend on the man-made beach what Miami is all about." Ina Development has already
The report comes as the head of at the$700-a-night Mandarin Ori- The ing local customers as a way to witted plans for the office plc
M North America Wednesday out- push for a scene that's at 2701 S.Gableseune Rd to the ci
ental for its "Barefoot at Oasis" both hip and five-star reflects a •TURN TO HIP HOTELS,4C
ed 4 plan at a New York auto show Coral for prelimi�
or fixing its ailing North American •HERALD.COM:GO TO TODAY'S EXTRAS TO CHECK OUT THE COMPLETE WINTER MUSIC CONFERENCE SCHEDULE
'usiness.•Plans include shifting• •TURN TO BURGER KING,4C
ources to key high-volume vehi- •-
es.GM also confirmed it was con-
•dering raising cash by selling a TOURISM
• e in its commercial mortgage INSURANCE
:::busmess.
•Nevis turnsNational away attitudes reflec
D sales up 5.3% in U.S.
Retail music CD sales rose 53 per nud • rises in healthcare costs
lit in the United States last year nudist gayCruiseer four years of declines,an Indus-
group said while renewing its 'Citing religious and legal __ People in South Florida and ixLLING .COM;WOULD YOU BE
• Hing about problems of piracy. issues,the Caribbean island of 'SMART
BOX' across the nation are now WILLING TO HAVE LESS CHOICE IN
saying they would put up with PHYSICIANS AND HOSPITALS IF IT
The Recording Industry Associa-
•n of America said Tuesday the Nevis would not allow a sailing
fewer choices in healthcare if AT TODAY'S EXTRAS
vessel chartered by a gay MEANT CHEAPER COPAYMENTS?VI
ue of sales was up 2.7 percent to MORE ON THE WEB it would lower their costs.
1.7billion. clothing-optional group to
dock on Wednesday. Laws vary from country to BY JOHN DORSCHNER
UTUAL FUNDS country.Gay,lesbian, jdorschnerra,herald.com because9it was the first time sv
BY INA PAIVA CORDLE bisexual and trans ender increase that there has been
itigroup, Putnam settle icordle,a herald corn 9 After years of people saying in response to the qu
travelers can research future they want more choices and less tion about choices and costs, s
Citigroup(C)and Putnam A clothing-optional gay cruise trips by visiting the restrictions in their healthcare,a the Center for Studying Hea
was turned away from Nevis in the International Lesbian and
estments will pay civil fines of Caribbean Wednesday, afternational survey being released System C:hanvP H..,Imre►,:..,..
I million and$40 million rPcnr r_ port Gay n���. ori ,,., ti-:}_ _.
4C i THURSDAY,MARCH 24,2005
TOURISM I FROM THE FRONT PAGE REAL ESTATE I FROM THE FRONT PAGE
•
ur •er n conside
- , r,, r4`,: i4
Gables headquarters
{
, ` •BURGER KING,FROM IC time in 2006 and it would take ida,Codina will be the one to
�` !Cu
about 16 months to complete. build the new headquarters. CORAL ;Ba
ip review. Those dates could be moved "There a lot of issues on ANDALUSIA AVE
- ':' N. plans call for knocking up if Burger King agreed to their end about what to do," ''le
down the existing bank build- become a tenant,Codina said. Codina said. "If Burger King
ing and rebuilding an office is going to stay, this would Coral
'' tower at least 210 feet tall LEASE EXPIRING certainly be an attractive Gabes El
with 269,000-square-feet of The fast-food chain needs option."
1 / (//'
K b t 1 space, including retail and to relocate by September
parking on the lower floors. 2007, when its lease at the DESIRABLE TENANT Future City
NOELLE THEARD/FOR THE HERALD I P g ;National Bank
But first Codina plans to Waterford office complex in Coral Gables city officials branch
DANCE,DANCE,DANCE: Blake Morris,a photographer build a smaller 45-foot-tall Blue Lagoon expires. are anxious to see Codina and
from New York, grabs Beverly Hardee,a stranger,for office building across Sevilla If Burg,ex King decides to Burger King fmalize a deal on tor
Universi
h
a dance at the Ritz-Carlton South Beach. Ave., which would become go elsewhere,Codina said he the City National site.
the new City National Bank would build the building and "I heard they were very
location. Codina said he then lease it to multiple users. close,but I haven't heard it's a
Five-star T Texpects to begin construction "I don't need Burger King done deal,"Coral Gables City
V hotels on this 48,000-square-foot as a tenant to do that build- Manager David Brown said."I
building this summer for ing,"Codina said. would certainly love to have. operations fo
. completion in about a year. Burger King has said the Burger King here." Group. "The
want hot clubs Codina has a contract to problem with staying in But Coral Gables has been sites in Cora
buy the entire property, Miami,which has always been spurned before by Burger you can buil
which is approximately two the company's home, is the King. Before finalizing a last building."
acres, from current owner economic viability due to the minute deal in 2000 for its Rents are
•HIP HOTELS,FROM IC "We made a determina- City National. high cost of real estate.That Blue Lagoon office, Burger be in the neig
tion that we were not going HOT PROPERTY makes it tough for a company King scuttled plans to move_ per square for
boost profits and fill tables to run any particular depart- aiming to cut costs, clean up to Coral Gables. rison,senior 1
during the off-season. ment in the hotel that did "We've been after this site its balance sheet and ulti- Local real estate brokers Transwester
But in a vacation market not make money,"Schrager for three years,"said Codina, mately go public. say even if Codina doesn't Services.
long regarded as favoring said in a recent interview. who has been seeking other Burger King spokeswoman land Burger King as a tenant, "There's dr
style over service,the drive "Why not be able to go right opportunities in Coral Gables Edna Johnson declined to pro- he shouldn't have any prob- for new off
to mix the twocould test down to the lobby to go to since finishing another office vide any updates on the lem filling the space. Coral Gables,
Miami's ability to support the most happening bar in building at 355 Alhambra. search for a new headquar- "As a long-term play, it's "People are€
ultra-luxury hotels. town?" Codina doesn't expect to ters. still going to be a successful realize that'.
None of the new top- In the past,many—if not begin construction on the Brenneman has said if the building," said Edgar Jones, going to have
flight properties opened in most—hotels viewed their larger building until some- company stays in South Flor- senior director of Florida quality office
the last four years—includ- staid restaurants and bars as
ing the Ritz-Carlton South required amenities unlikely ----- — -- -- — ----.
Beach, Four Seasons and to generate much profit for
Mandarin — have earned a the business.That's changed i INSURANCE I FROM THE FRONT PAGE
coveted fifth star from with the push for more
ExxonMobil, the leading exciting dining and drinking • •
arbiter of hotel service.Lux- venues, ass n up their hotmage.ury experts say combining try to loosen u their ima e. trades re act high refined service with a hip But while the Delano co!
scene can be done, but it draws both top rates and top
isn't easy. celebrity partyers,its repu-
"We get the comment all tation for service isn't so sky 'ATTITUDES,FROM 1C The survey
the time:You guys don't get high.Blue Door, the Delan- . FEWER CHOICES, LOWR COSTS views from
the hip quotient,"ExxonMo- o's restaurant, won four ees struggle to cope with dou- changes in
bil executive Shane O'Fla- stars from ExxonMobil last ble-digit percentage increases People are willing to get fewer choices in healthcare if it will lower costs. income levels
herty said,referring to unfa- year,but the hotel itself got in healthcare costs. or stronglyTwo-third
vorable reviews of chic three. <. Somewhat willing to limit choke othospitals and physicians
I can understand why," to save on out of pocket cost. with incomes
hotels."We think it's great, "The difference between said Howard Gruverman of cent of the 1
as long as you canprovide say, a Mandarin [and]and, Chapman Schewe, a benefits • 70% level—$36,8(
the right services to custom- say,a Delano,is the five-star j consulting firm with offices infour—said tl
ers. .. .When they don't, it hotels at least know how to Fort Lauderdale."With higher ' ' - 65 to restrict tl
quickly becomes noticeable dispense service," said deductibles,people are scared 596,800 annual income for Minify dfour
00 573600 annual income �i~ lower expense
530
to us." Andrew Harper, publisher they can't afford to go to the �""""2-- _ __„...e 60 cent of familia
Fort Lauderdale, where of Andrew Harper's Hide- doctor." ANadults 181064than four tin
beachside bars are more the away Report, a newsletter 55 poverty lei
standard than chic clubs, about luxury travel. CHEAPER OPTIONS Over 573600annual income $73,600.
cool doesn'tet set the five- Harper said most of his
Y P Jane Lohmeier, benefits "This resu
star standard: readers would probably manager for FPL Group,said 45 while out-of-p
"We wouldn't have any- frown on a top hotel seeking manyof the energycom a- r 1 1 ,
thingyou would call hip," a club scene,though he held P 1997 1999 1001 2003 represent a 1
g ny's 11,000 employees have for low-incoi
said Joanie Cabo Schmidt, out South Beach as an been shifting away from more impact of in(
director of sales and market- exception. expensive plans. SOURCE:Center(or Studying Health System Change P.CHEUNG/HERALD STAFF cost sharing
ing at the new St. Regis, an "At a lot of five-star "When we've given our • felt across a I
aspiring five-star hotel set to hotels in most cities,the idea employees a choice between work.... And if we have 70 that show about 4.5 percent of of incomes,"T
open in December. "We're is you're kind of going into higher out-of-pocket and percent of the cardiologists, employees are losing their author of the
not having a night club,per an urban sanctuary.And you more managed care but lower do you care if there is a cardi- healthcare coverage each At least on
se. We will have a lobby don't expect 1,500 other peo- costs,they have chosen over- ologist who is not in our year. consumer wa
bar." ple dropping by one night," whelmingly the more man- plan?" about accepts
But in Miami,clubs have he said."If you're staying in aged plans," said Lohmeier. . Restrictive gatekeepers RECENT TRENDS Barbara Leibe
become so iconic that hotels South Beach, I think you Terry Smith, a physician- and approvals have lessened In recent years,employers Miami-Dade
consider night-life part of expect that scene and sort of executive with Humana's some over the years,replaced and insurers have been driv- said her fami
the local scenery. relish it." Florida operations, said one by disease management of the ing employees toward "con- . about $4,000
"We always knew South But what about on Brick- reason for the growing popu- chronically ill and other mea- sumer-driven" plans, giving policy with a!
Beach was probably going to ell Key? - larity of health maintenance sures, but experts say the them more choices and gener- ible. When
be the beginning of a new Rosalva Vazquez sat with organizations is that they are main sentiment being ally higher co-pays in the $40,000 hospi
era of`sense of place,'"Ritz- a fellow Mexico City physi- not as restrictive as they used expressed in the survey is a hopes they would use health- accident, her
Carlton executive Vivian cian on the Mandarin's outer to be. concern about ever-increas- care more judiciously because ated it dowr
Deuschl said, referring to deck on a recent Friday as "Managed care in general ing costs. they had to invest more of which she hay
the chain's policy of having streams of jean-clad and has evolved in the past five to "Many of them are terrified their own money. pocket.
each hotel reflect its sur- trucker-cap wearing 20-' seven years,"Smith said."We they're not going to have any But critics say those plans Still, she i
roundings. somethings paraded past to have found ways to control coverage at all," said Brian were merely a disguised way know what ri
That's a departure from the beach party out back. It costs that have nothing to do Klepper, head of the Center of shifting costs from employ- was facing bel
the oriental rugs and was after 10 p.m., and Vaz- ' with a restrictive network. for Practical Health Reform, ers to employees by requiring her choices."]
piped-in classical music that quez wasn't enthralled. We have 52 of the 53 hospitals based in the Jacksonville area. higher deductibles and copay- to be restricter
were the Ritz-Carlton stan- •"One wants privacy,"said [in South Florida]in our net- He pointed to federal surveys ments. and bad hospi
dard throughout the'80s,no Vazquez,staying at the hotel ,
matter the city. for a pharmaceutical confer- -- ____ — _----------- ---_---- -__
But the bottom line ence."You're expecting it to
counts, too. In fact, profits be quiet,to be calm." TOURISM I FROM THE FRONT PAGE
helped spawn th>'entire idea But as bay breezes cooled
of a hip hotel when Studio 54 revelers sprawled on day • • i Nevis bans gay cru1Gle Tarraustgs se f rom is]
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