1615-16 Various Miami Beach * Published rates are $200-$385 but will vary.
KEYWORDS: PROFILE STATISTIC COST
CUTLINES
HARLES TRAINOR, JR. / HERALD STAFF TREE TOP: A PALM IS PLACED ON THE
ROOFTOP OF THE LOEWS HOTEL UNDER CONSTRUCTION IN MIAMI BEACH.
TAG: 9710311133
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mh97 BEACH ORDERS LIMITS TO BUILDING HEIGHTS 10/09/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Thursday, October 9, 1997 EDITION: Final
SECTION: Local PAGE: 1B LENGTH: 48 lines
SOURCE/CREDIT LINE: By RICK JERVIS Herald Staff Writer
BEACH ORDERS LIMITS TO BUILDING HEIGHTS
p
Towering condo buildings and soaring hotels may no longer be a threat to
Miami Beach' s skyline.
In the midst of a strong anti-development sentiment sweeping the city,
Beach commissioners Wednesday unanimously passed an ordinance that slaps
height limits on new buildings.
The law mandates different limits for different areas of the city. Under
it, no new building would rise higher than 400 feet, or about 44 stories --
almost as tall as the Blue Diamond and Green Diamond buildings on Collins
Avenue in mid-Beach.
The maximum only will be allowed on lots over 200, 000 square feet -- and
only in three areas of the Beach.
The law also puts height restrictions in areas that had none. Buildings
along Indian Creek Drive, for example, will be capped with a 100-foot height
limit. Previously, the sky was the limit.
"There is still more work to be done, " said Commissioner Neisen Kasdin,
who initiated the ordinance and is running for mayor in November. "But we've
made a significant accomplishment in lowering heights around the city. "
Miami Beach had height limits in its zoning laws from the 1930s to 1971,
when city leaders liberalized the laws to invite development, said Dean
Grandin, the city' s planning director. A new zoning law was passed in 1989,
but it only included height restrictions for portions of the Beach.
The new law represents the greatest citywide height limits to date.
Developers at Wednesday' s meeting balked, saying the new restrictions
infringe on their rights and would botch their projects, especially those
planned near the convention center. Buildings in that area -- a central zone
near Lincoln Road and the new Loews Hotel -- would be limited to 100 feet, or
about 11 stories tall. Before, the area had no height limits.
This proposal will stop our project and others like it, " said Jeff
Berkow, an attorney representing an unnamed developer planning twin 20-story
office buildings in the convention center area.
"There ' s a very large entertainment industry that would like to relocate
here, but there is no class-A office space, " Berkow said.
Commissioner Nancy Liebman, however, said the city shouldn't fiddle with
the law for the whim of developers.
"To increase height in that area goes against the flavor of that
district, " she said. "The historical district element in that area is the
driving force. "
The question remains whether the dozen or so high-rise projects -- which
flooded the city' s planning department at first word of the ordinance -- will
be exempt. The city attorney will research the issue.
TAG: 9710100254
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mh97 PRESERVATION BATTLE RAGES OVER OCEAN DRIVE HOTEL
07/16/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Wednesday, July 16, 1997 EDITION: Final
SECTION: Local PAGE: 1B LENGTH: 113 lines
ILLUSTRATION: photo: Edgewater Beach Hotel (a)
SOURCE/CREDIT LINE: RICK JERVIS Herald Staff Writer
PRESERVATION BATTLE RAGES OVER OCEAN DRIVE HOTEL
To its owners, Miami Beach' s Edgewater Beach Hotel is a decrepit, dangerous
structure that should be demolished to make way for a new hotel.
To preservationists, it ' s a priceless pearl in the Art Deco necklace, a
1936 gem that should be restored to its original elegance.
The destiny of the long-vacant Ocean Drive hotel -- its wood frame rotted
by exposure to the elements -- will be determined in Circuit Court.
It ' s a familiar drama in Miami Beach, where for two decades
preservationists have wrangled with developers to save the city' s signature
skyline. But as time and neglect eat away at some of the buildings in the
historic Art Deco district, the recurring question is : When to raze, and when
to save?
The answer is increasingly more difficult to come by.
In its zeal to preserve its past, the city' s tangle of regulations, review
boards and restrictions is intimidating some developers eyeing the
neighborhood. Then there is the cost of a delicate restoration project, often
more expensive than building from scratch.
" It ' s very, very difficult to do business on the Beach, " said Craig
Robins, president of Dacra Development, which renovated the Marlin and Leslie
hotels, as well as Espanola Way. ' The Beach has gotten so overbearing in its
regulations, enforcement and process that it ' s frustrating and hard to work
here. "
The result, some say, is "demolition by neglect " -- the term used in
preservation circles when a property is allowed to deteriorate until it must
be demolished.
" It is a very real issue, " said John Hildreth, acting director for the
southern regional office of the National Trust for Historic Preservation.
"There are a myriad reasons why that happens, and different communities are
taking different approaches to try to solve that problem. "
For more than a decade, the Edgewater sat vacant, slowly deteriorating.
The hotel ' s owners, 1401 Ocean Drive Inc. , bought the three-story hotel in
May for $2 . 65 million. Engineers hired by the company deemed it unsafe.
City building officials agreed but then refused to issue a demolition
permit when the city' s historic preservation department decreed the Edgewater
should be saved.
The hotel ' s owners took the city to court, and last week the Miami Design
Preservation League jumped into the fray with its own lawyer. On July 9,
Circuit Judge Murray Goldman set the hearing for Aug. 11 .
The Edgewater strife comes at an alarming time for preservationists.
According to a University of Miami survey released last month, as many as 10
percent of the important buildings have been destroyed since the Beach' s Art
Deco district was named to the National Register of Historic Places 18 years
ago.
Preservationists say the Edgewater, which stands in the middle of the Art
Deco historic district, is an important part of the city' s history. It' s one
of only two Mediterranean-revival style buildings on Ocean Drive. The other is
the old Amsterdam Palace, the home of designer Gianni Versace, who was shot to
death there Tuesday.
The original facade sits intact, hidden behind a seven-foot-deep,
green-and-white aluminum facade added in 1959, said William Cary, the city' s
historic preservation coordinator.
The Edgewater was designed by Roy France, architect of the St. Moritz on
Collins Avenue, which will be preserved as the centerpiece for the Loews
hotel, and the old Arthur Murray Dance Studio on Lincoln Road, now home to
Yuca Restaurant.
In its heyday, the Edgewater welcomed visitors through an elegant arched
entrance and was topped with bell towers.
Once the facade is removed, you ' ll see one of the most spectacular
Mediterranean-revival facades in the city, " Cary said.
The new owners hope to raze the structure and build a new five-story,
52-room hotel. An independent engineering firm hired by the city said the
building could be saved by reinforcing it, then renovating it -- although it
will likely cost more than demolishing it and starting from scratch.
Cary and others say demolishing the Edgewater will open the way for other
developers who buy structures deemed unsafe with the intent to demolish, thus
skirting the city ' s strict preservation laws.
To renovate or build within one of the city' s three historic districts --
Ocean Beach, Art Deco or Harding Township -- developers must submit plans to
the city' s Design Review Board, gain approval from the Historic Preservation
Board, and draw their plans within stringent height and style restrictions.
Rather than deal with the costs and rigors of renovation, some property
owners opt for demolition, Robins said.
" It ' s not purely a cost issue, " he said. "The fear of having to deal
with some of these boards is so great that the developers are driven to
demolish rather than renovate. "
Many times, architects go through the process two or three times before
their plans are approved, driving up costs. In October, plans for a McDonald' s
on Alton Road had to be scrapped three times before gaining approval by the
city' s design board.
But it ' s the Art Deco facades and stylish lobbies that draw people to Miami
Beach, and the rules are intended to keep it that way, preservationists said.
Developers on the Beach have learned to creatively weave the new with the
old. A parking lot under construction to accommodate the upcoming Loews
convention hotel will be built behind the front lobby and facades of the
historic Anchor Hotel and Justice of the Peace apartment building on
Washington Avenue.
The new Michael Graves condominium and retail complex on Collins Avenue
will be built behind the Art Deco Bancroft Hotel.
At today' s City Commission meeting, a new amendment will be proposed to the
city' s Historic Preservation Ordinance mandating more frequent inspections of
vacant buildings in historic districts.
Currently, the city' s historic preservation ordinance states that owners of
a vacant building within a historic district " 'shall provide sufficient
maintenance and upkeep to ensure its perpetuation and to prevent its
deterioration. "
Cary said the proposed amendment would discourage property owners from
letting their structures purposely deteriorate.
And add another layer of regulations to the zoning code.
" It sometimes makes things more difficult, " said Ari Sklar, owner of a
Miami Beach architectural firm who has renovated Art Deco buildings in the
district. "But the thing that made Miami Beach so famous is that they saved
all the old buildings . You have to respect that. "
CAPTION: HERNAN REYES / Herald Staff HIDDEN GEM: Behind ugly ' 50s facade,
original Edgewater Beach Hotel has been deteriorating.
KEYWORDS: ART DECO
TAG: 9707180182
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mh97 BEACH REGULATES WHEN BUILDERS CAN MAKE NOISE
07/06/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Sunday, July 6, 1997 EDITION: Final
I SECTION: Neighbors MB
g PAGE: 7 LENGTH: 27 lines
SOURCE/CREDIT LINE: RICK JERVIS Herald Staff Writer
BEACH REGULATES WHEN BUILDERS CAN MAKE NOISE
Adding a rec room to your home? Renovating your condo?
Make sure you do it at a reasonable hour.
Miami Beach Commissioners on Wednesday passed an ordinance regulating the
time of home construction to try to bring some peace and quiet to
neighborhoods.
Under the new law, construction can take place in single-family home
neighborhoods between 7 : 30 a.m. and 6: 30 p.m. In multifamily areas, such as
apartments and condominiums, the construction hours are between 8 a.m. and 6
p.m. weekdays, 10 a.m. and 4 p.m. Saturdays, and no construction will be
permitted on Sundays or national holidays.
The ordinance was created after residents around the Bayshore Golf Course
complained of early-morning and late-night hammering, drilling and rumbling
concrete trucks.
The law was spread to condominium neighborhoods to appease residents
complaining of condo conversion construction, Commissioner Nancy Liebman said.
The Collins Avenue corridor near 17th Street was spared from the ordinance
to allow the new Loews Hotel to be completed on time.
—The neighborhoods need peace and quiet, " Liebman said. —We have enough
distractions in this community. We don' t need any more. "
TAG: 9707090391
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mh97 HIGH-END RISK FOR AN ART DECO GEM 04/21/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Monday, April 21, 1997 EDITION: Final
SECTION: Business Monday PAGE: 7BM LENGTH: 179 lines
ILLUSTRATION: photo: Hans Krause and his wife Ursula inspect the renovation
work at the National (a) , National Hotel (a) ; chart: Daily Room Rates; photo:
NATIONAL HOTEL
SOURCE/CREDIT LINE: DALE K. DuPONT Herald Business Writer
MEMO: HOTELS
HIGH-END RISK FOR AN ART DECO GEM
Amid the scaffolding, hammering, sawing and dust, Hans Krause presides over
the reconstruction of an Art Deco gem. The landscaping is in. The narrow
200-foot-long pool is shimmering. The simply furnished rooms are taking shape.
And Krause promises the National Hotel will be ready to open and make its
mark on South Beach May 1 .
Krause, a German tourism entrepreneur, is one of a group of buyers paying
more for landmark properties, spending more on renovations and betting that
higher room rates will hold because of unparalleled locations.
Krause knows the area. He ' s been bringing in tour groups since the 1980s.
Next door to the superchic Delano Hotel on the 1600 block of Collins Avenue,
The National is 15 blocks and a league away from another hotel, the old Sea
Isle, that he bought and overhauled in 1991 .
The Bonn businessman insists he ' s not trying to copy the Delano. "What he
has there is unique, " Krause said. "We just happen to be neighbors. We are
going to create a very different style " -- first-class, classic and maybe a
bit old-fashioned.
This new breed of developers differs from the risk-takers who moved into
South Beach a decade or more ago, before the district had caught on. But there
are still risks.
High-end risks
With rates higher than at Krause ' s other resort, the National is looking at
a different market. He ' ll have to make a name for himself with the
multi-million dollar makeover.
The National might be able to count on spillover from the new 800-room
Loews convention hotel due to open nearby in the fall of 1998 .
But there ' s no guarantee of overflow from the Delano. Part of its appeal is
the owner: Manhattan trendsetter, Studio 54 disco co-owner and now boutique
hotelier Ian Schrager. A spokesman for Schrager said he did not want to
comment on Krause ' s project.
Industry analysts are cautious about whether Krause can duplicate the
influential Schrager' s success and wonder how substantial the basic Art Deco
business is.
On the other hand, there ' s more investment interest because Schrager has
outperformed every projection, said Chase Burritt, managing director of
hospitality services for Ernst & Young Kenneth Leventhal in Miami.
Tourism executives and brokers point to Krause ' s success in transforming
the old Sea Isle resort at 30th and Collins Avenue, now the Miami Beach Ocean
Resort.
- -He has his finger on the German travel market, " said a Miami hotel
broker, Sheldon Greene. "He filled that place up. "
Knowing the market
The 245-room resort has been 92 percent full over the last two years,
Krause said. After the German tourist slayings in Florida several years ago
hurt the state ' s tourism industry, Krause brought in the best sales force he
could find and sent them to South America.
" I was forced to do the right thing, to get a better market mix, " he
said.
The success of the resort convinced him they could sell even more here. So
he started looking for property nearby. Then he heard about the National.
He loved the building.
- - I saw a landmark. I hope I 'm right, " said Krause, who purchased the
property for $9 million last year and will spend at least another $5 million
to redo it.
" It was a nightmare to get financing on the Miami Beach Ocean Resort, " he
said. This time he didn't bother trying. - -It' s a cash investment for our
family. "
The target market differs from that of his other hotel. He ' ll go after the
entertainment industry, corporate business and the upper end of the tourism
Itrade.
He sees limousines, not tour buses, pulling up out front.
If he handles the National as well as his other resort, "He ' ll have
another winner, " Greene said.
He won' t slap a brand name on the hotel, which was built in 1940. And he
will manage and market it himself.
His rates are lower than at the Delano, which quotes $395 for an ocean view
and $320 for a city view in high season, and in the samerange with some other
spiffy Deco properties.
"We haven' t reached the ceiling yet for what we can get for these rooms, "
said Jeff Cohen, of Real Estate Enterprises.
There ' s no formula for purchase prices either, Greene said. "Every deal
has to be looked at separately. " Prices vary widely by property.
As for payback on investment, industry experts give this rule of thumb for
a 10 to 12 percent return: If you spend $100, 000 a room for acquisition and
renovation, you need to get $100 a night with 60 to 70 percent occupancy.
Analysts point out that typical hotel investors look for returns in 18
months or less, but Krause, 57, said he doesn't expect a return for five
years.
"My intention is not to go in, do something and sell it, " Krause said.
Upper-end properties may be in demand, said Burritt, but he doesn' t know
how many the market can support.
Others are testing it, too. The Rubell family, once associated with
Schrager in Manhattan, is running the Albion Hotel, a 1939 Art Deco building.
It sits two blocks from the ocean, the Delano and the National. The family
bought the 120-room hotel for a reported $5 .2 million.
Another group of investors plans to build a $30 million, 242-room
oceanfront luxury hotel near the southern tip of South Beach. The 10-story
project will preserve the historic Century Beach Club hotel on Ocean Drive.
Asking prices are raising some eyebrows.
"What I ran across was a lot of people looking, but a lot of people
balking because of the prices, " said Rick Besse, one of several Dallas-based
investors who just bought the Essex.
Lots of fixing-up needed
Many of the hotels on the market need renovation -- and not just paint and
caulk, he said -- " for the long-term health of South Beach. "
The Essex had been on the market for several years for $4 million, said
Cohen, who handled the deal. Besse got it for $3 .8 million and plans to
renovate the 67-room property and turn adjoining apartments into 18 luxury
suites. In-season rates will range from $150 for rooms to $200 for suites.
Hotels that were going for $600, 000 to $700, 000 about 10 years ago might
bring $4 million today, brokers say.
Most of the sellers are the risk-takers of a decade ago, said Besse, who' s
aggressively looking for other properties in an area he says " simply cannot
be duplicated. "
- -All of these things are somewhat risky. Even Schrager' s deal would be
considered risky, " Burritt said.
Schrager paid $4 million for the dilapidated 238-room Delano in 1993 and
spent $22 million on the renovation.
"The only way you get the upper level is to create the ambience that would
support the upper level, " Burritt said.
Restoring the luster
That ' s what Krause is trying to do. With original blueprints in hand, he
and his wife, Ursula, are recreating much of the original feel of the National
and adding features of their own, including a restaurant, a lounge for high
tea, a small business center and minibars and safes in the rooms. The
National ' s 165 employees are being recruited now and going through three
extensive interviews.
Redoing a historic building took a lot longer than anticipated, given all
the rules and regulations. Krause originally hoped to open by Christmas. Now,
he gets to kick off the traditionally slow summer season. ' 'So this is a
challenge, " he said.
Krause has a reputation for keeping close tabs on all of his businesses,
which have ranged from tour companies to a mailing house to hotels, and for
seeing potential in places like the Sea Isle.
Former partner Ray Friedheim, who runs Specialized Travel Systems in North
Miami, recalled how they acquired the Sea Isle property.
They were bringing in thousands of German tourists and weren't thrilled
with the hotels between budget class and first class. So they started looking
for something to buy.
When Friedheim found the Sea Isle, he called Krause. But Friedheim warned
him, "You have to imagine what you can do with it. It looked like a bomb hit
it. " The Art Deco-style building had been closed for six years.
"He came, he saw, he liked it, " Friedheim said. They acquired the hotel
for $4 million. Krause estimates the total investment at $16 million.
Partners no more
Krause bought out Friedheim' s 10 percent stake last year. The two are still
good friends .
Friedheim said the National ' 'is the best thing that can happen to Miami
Beach. The man knows his business . He ' s very meticulous in his planning. "
What drives him? " 'Making money and pride, " Friedheim said.
The Eden Roc ' s general manager, Michael Furcht, who has worked with Krause,
said he has the right ingredients for the National project: "He understands
the destination, he understands the business, and he understands how to make
clients happy. " noweb DAILY ROOM RATES
At the National Hotel -- as at other Florida hotels -- the time of year
determines the price you pay:
April-Sept. Oct.-Dec. 19 Dec. 20-April
City view $180 $200 $225 Oceanfront $220 $245 $285 Palm garden $245 $280
$345 Tower suite $440 $490 $570
noweb
THE NATIONAL
Built in 1940, the 160-room hotel has had three owners in the last nine
years :
* 1988 : Taha Awad Jalal Amin Angel bought it for $3 million.
* 1993 : National Hotel Corp. , whose president is Donelson C. Glassie, paid
$4 million.
* 1996 : Hans and Ursula Krause bought the 11-story landmark for $9 million.
cutlines
CHUCK FADELY / Herald Staff GRAND DESIGNS: Hans Krause and his wife,
Ursula, inspect the renovation work underway at the National, which Krause
recently acquired for about $9 million. He also owns the Miami Beach Ocean
Resort.
CHUCK FADELY / Herald Staff National Hotel Herald file WAR BABY: The
National was built in 1940, at the beginning of World War II; here is how it
looked seven years later. Its current renovation, costing $5 million, will
take the National into the ranks of South Beach' s most upscale hotels.
KEYWORDS: PROFILE NATIONAL STATISTIC MB
TAG: 9704240137
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mh97 CURRENT PROJECTS: 03/17/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
7
DATE: Monday, March 17, 1997 EDITION: Final
SECTION: Business Monday PAGE: 25BM LENGTH: 40 lines
SOURCE/CREDIT LINE: Herald Staff
MEMO: COVER STORY
CURRENT PROJECTS:
FROM DEVELOPING
TO LEASING, MANAGING
Some of the Codina Group' s recent deals, contracts and prospective projects
have included:
* Republic National Bank -- Codina recently completed a 150,000-square-foot
headquarters for the bank in Coral Gables. In the type of profitable corporate
synergy which Codina has perfected, his company will lease and manage the
property.
* Blue Cross/Blue Shield South Florida headquarters -- Codina bought land
from Ryder Corp. in West Dade and developed a 152, 000-square-foot tower for
the insurer; he then sold the building to Prudential Life, which hired Codina
Group' s property management division to oversee the building.
* Convention hotel -- Through his relationship with the Tisch family,
Codina is co-developing and building a $135 million convention hotel for
Loew' s Corp. , the first such project on Miami Beach in 30 years. The Tisches
own Loew' s.
* Blue Lagoon office park -- In a deal with AMB Institutional Realty
Advisors, Codina brokered its recent sale. AMB, of San Francisco, has hired
him to manage the property, near Miami International Airport.
* Florida Schoolhouse Developers -- In one of his first endeavors with
public projects, Codina is part of a joint venture to develop schools. The
group, which includes former Dade County Manager Joaquin Avino, has started
slowly, deciding not to bid on a proposed high school in South Dade and coming
in third on a bid for an elementary school. It plans to bid on another
elementary school in Dade. —We 'd like to get our feet wet and stay close to
home, " said Rafael Rodon, president of Codina Rodon Consulting.
KEYWORDS: PROFILE STATISTIC CODINA
TAG: 9703220144
17 of 24 , 4 Terms
mh97 BLACK-OWNED HOTEL CELEBRATED
03/06/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Thursday, March 6, 1997 EDITION: Final
SECTION: Local PAGE: 1B LENGTH: 91 lines
ILLUSTRATION: photo: R. Donahue Peebles (a)
SOURCE/CREDIT LINE: By CONNIE PRATER Herald Staff Writer
BLACK-OWNED HOTEL CELEBRATED
Crossing the first major hurdle for construction of what would be the
nation' s largest African American-owned convention hotel, developer R. Donahue
Peebles and city of Miami Beach officials Wednesday signed a pact for a
mmommw
public-private deal to build a 425-room hotel complex on Collins Avenue.
Miami Beach Mayor Seymour Gelber and Dade black activists who led the
tourism boycott are touting the agreement as a major accomplishment for Miami
Beach and Dade County.
" I take pride in the fact that this city has played a major role by what
is happening today, " Gelber said Wednesday before a celebration luncheon
toasting the signing of the contract, which was approved by a 5-1 commission
vote.
Along with Peebles and his partners, several prominent Dade County black
activists and business leaders attended the commission meeting to witness the
formal signing of the hotel pact -- one of the key points that led to the end
of Dade ' s three-year black tourism boycott in 1993 .
"Today is a milestone for Greater Miami. . . . This is a dream that the
black community has had for many years, " boycott leader and Miami attorney
H.T. Smith declared in a statement read during the meeting. Smith was in court
and couldn't attend the signing.
Longtime Miami activist M. Athalie Range, another witness, said the hotel
is a concrete accomplishment for those who participated in the boycott.
"We felt we needed something that we could look at as a true monument --
something you could put your hands on and know this is the outcome, " Range
said.
Wednesday' s signing of the letter of intent between the city and Peebles
doesn' t seal the $60 million project. Still to come: the nuts and bolts
development agreement, which spells out the terms of the pact in even more
detail.
Opening December 1998
If all goes as planned, the Royal Palm Crowne Plaza Resort hotel will rise
in the 1500 block of Collins Avenue. The plans, which were approved in
December by the city' s design and development boards, call for one Art
Deco-style building with two wings. Each wing would retain the original facade
of the existing Royal Palm and Shorecrest hotels. The Royal Palm portion would
have 258 rooms, as well as convention, conference and meeting facilities. The
Shorecrest wing would have 167 suites.
The expected opening date: December 1998, just in time for the 1999 Super
Bowl the following month. Peebles says he hopes to begin construction by June
1 .
The Royal Palm will be 100 percent black-owned. The hotel pact includes a
clause required by the city that at least 25 percent of the hotel ' s management
personnel and supervisory staff must be African-American. Peebles said
Wednesday the minority hiring component was "the easiest part " of the city
deal .
"We plan to exceed that and have a target of 50 percent or better, " he
said.
The inclusion policy will extend to construction subcontractors as well,
Peebles said.
Restaurants
The Beach hotel also will feature Hamps Restaurant, owned by jazz great
Lionel Hampton. Peebles said he ' s also hoping to sign a Motown Cafe, the New
York-based soul-food Motown theme restaurant, although that deal hasn't been
finalized.
Peebles and his partners won the bid to build the hotel in June 1996, after
the first black hotel developer chosen by the city in 1995 couldn't get
financing.
After Peebles stepped in, negotiations have lagged for nine months, in part
because Peebles and the owners of the Shorecrest hotel land were disputing the
value of the parcel. Under the original plan, Peebles was to have purchased
the Shorecrest. But in a concession to move the deal along and allay city
concerns about protecting its investment, Peebles agreed to let the city buy
the land instead.
According to the agreement, the city' s original $10 million incentive
package will remain the same.
The city capped its portion of the Shorecrest purchase price at $4 .5
million -- the amount of the $10 million remaining after the city bought the
oyal Palm for $5 .5 million. Peebles and his partners must pay the difference
between the city' s share and the estimated $5 .5 million purchase price of the
Shorecrest.
In the end, the city of Miami Beach will own all the hotel land and lease
it to Peebles for at least $490, 000 a year. If the hotel is successful, rent
payments could rise to $600, 000 annually.
The Royal Crowne hotel pact is similar to the one the city negotiated with
Loews Hotels, which is currently constructing an 830-room convention hotel
adjacent to the Royal Palm and Shorecrest hotel lots.
Completion of the Loews and Royal Crowne hotels -- a combined 1,200-room
capacity -- will help the city attract large conventions and meetings to the
Miami Beach Convention Center, city officials say.
Peebles is the same developer who last week gained approval from the
Broward County Commission to build a 500-room convention hotel in Fort
Lauderdale with a consortium of partners that include the National Baptist
Convention USA and Crowne Plaza Hotels.
TAG: 9703070418
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mh97 BEACH TO UNDERGO
02/27/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Thursday, February 27, 1997 EDITION: Final
SECTION: Neighbors MB PAGE: 6 LENGTH: 20 lines
SOURCE/CREDIT LINE: Herald Staff
BEACH TO UNDERGO
2 YEARS OF REPAIRS
This week will mark the beginning of two years of heavy construction in
Miami Beach, mostly between 14th and 17th streets along Collins Avenue.
Set to start right away is the installation of new manholes and electric
ducts along the east side of Collins, followed in May with a $59 million plan
to replace water and sewer pipes.
Other construction includes a parking garage on 16th Street and four new
developments: Loews Miami Beach Hotel, Il Villagio, 1500 Ocean Drive and the
Royal Crowne Plaza Resort.
Other planned improvements include extending 16th Street between Washington
and Collins avenues, road resurfacing and more landscaping.
KEYWORDS: MIAMI BEACH CONSTRUCTION
TAG: 9702280216
21 of 24 , 7 Terms
mh97 TOURISM 01/20/1997
THE MIAMI HERALD
Copyright (c) 1997 , The Miami Herald
DATE: Monday, January 20, 1997 EDITION: Final
SECTION: Business Monday PAGE: 21BM LENGTH: 116 lines
ILLUSTRATION: photo: view of South Beach (a) ; chart: Dade Visitors in
Millions, Florida Visitors in Millions, Broward visitors in Millions, Monroe
revenues from tourist tax
SOURCE/CREDIT LINE: DALE K. DuPONT Herald Business Writer
MEMO: FLORIDA' S ECONOMY OUTLOOK 97; TOURISM
TOURISM
INDUSTRY IS THRIVING -- BUT KNOWS HOW QUICKLY OUTLOOK CAN SOUR
Tourism executives have worked hard the last few years drumming up good
publicity at home and abroad. The aggressive marketing combined with strong
economies elsewhere has paid off, with record numbers of visitors to South
Florida.
The challenge is keeping up the momentum -- and making sure visitors are
satisfied, with everything from rooms to taxis.
Hotel companies are snapping up and renovating properties. But few are
building. Occupancy and room rates have been rising as the glut of rooms dries
up.
"I 'm optimistic we can maintain the numbers we've experienced now for two
years. I think we ' re on a roll, " said Merrett Stierheim, president of the
Greater Miami Convention & Visitors Bureau.
"I don't think we 've hit the top yet, " said Nicki Grossman, head of the
Greater Fort Lauderdale Convention & Visitors Bureau.
But the enthusiasm is tempered by memories of how quickly things can change
for South Florida ' s No. 1 industry. And of how much image counts.
Stierheim has one nagging concern: Miami ' s financial crisis and what
promise to be widely publicized attempts to dissolve the city.
- -Right now, that ' s the only negative I see on the horizon, " said
Stierheim, who spent several months last year as interim city manager, trying
to help straighten out the mess.
Publicity campaigns are under way to differentiate the city from the
beaches and the rest of Dade and to point out that the county operates both
the airport and seaport.
Tourism officials hope the push will work as well as the last several
years ' worth of aggressive marketing by South Florida and the state, which
helped revive an industry devastated by a series of tourist murders.
- -We can't let our guard down, " said Scott Berman, director of Coopers &
Lybrand' s hospitality consulting group, in Miami. "We really have enjoyed a
nice two-year recovery and renaissance. There ' s no reason to think 1997 isn't
going to be a terrific year for the tourism industry in South Florida. "
Both he and Chase Burritt, managing director of hospitality services for
Ernst & Young Kenneth Leventhal, cite a need for more quality hotels.
Grossman agrees. "Most of our challenges are related to growth in the
industry, " she said. "We need more four-star properties in Broward County.
You need to give [hoteliers] a reason to make their money here, " she said.
One incentive is the growing number of visitors.
" I think the Marriott time-share will be seen as a beacon for new
development, " she said of Beach Place, a massive new restaurant, retail and
residential project on Fort Lauderdale Beach.
Burritt warns that hotel rooms will be in short supply, especially
full-service lodgings for business travelers who book at the last minute.
Leisure travelers can expect an 8 to 10 percent rate increase.
The problem is not unique to Miami, he said: - "The watchword is get your
bookings early. "
Few new hotels are being built, and leisure travel is up. "We went so far
the other way in the late ' 80s and early ' 90s " -- with overbuilding and
record losses -- that ' s nobody' s building now. Lenders remain skittish,
Burritt said.
Pointing to the new, 800-room Loews Hotel in Miami Beach, Marc Kopelman,
senior consulting manager at Ernst & Young Kenneth Leventhal ' s real estate
group, said, "Public-private partnership will become more the rule than the
exception for full-service hotels, especially those servicing convention
centers . "
Loews broke ground last year on a $135 million luxury hotel that tourism
officials are counting on to boost convention business. Miami Beach is
providing $50 million in incentives.
Broward, too, is trying to lure a convention hotel to prime county land on
17th Street in Fort Lauderdale.
"The land cost and the amenities run the price up, " Kopelman said. " It
doesn't justify private investment, because the returns don't pencil out. "
But that, too, may be changing. "Five years ago, there were probably less
than a dozen publicly traded leisure companies, " Berman said. Now, there are
close to 40 .
"With the equity markets quite strong, there' s been a viable source of
capital, mainly to buy hotels. A number of these companies are looking to
South Florida to increase their portfolio. "
Florida is back in favor. The industry -- particularly the hotel segment --
is reporting record profits, "and that sends a signal to the investment
community, " Berman said.
Leading tourism towns like Las Vegas and Orlando each have about 90, 000
hotel rooms, compared to Dade and Broward, which have a total of about 65, 000.
Still, tourists keep coming to South Florida. "The numbers coming out of
Latin America are very, very impressive, " Berman said.
About half of Dade ' s visitors and a fifth of Broward' s are from abroad.
Thanks to new scheduled and chartered service, Miami International Airport
expects a 7 percent increase in international visitors this year, after a 1
percent increase last year. The airport already has seen a record 30, 000
international passengers a day in January.
Fort Lauderdale-Hollywood International Airport anticipates a 5 to 7
percent growth in international traffic this year, after 9 percent growth
through November of last year.
But early in the year, everyone is keeping a close eye on domestic aviation
and the strike threat from pilots at American Airlines, Miami ' s dominant
carrier. Any problems could hurt South Florida' s tourism.
The Keys don' t depend on Latin American business as much as Dade does, but
they count on tourists.
Michael Ingram, chairman of the Monroe County Tourist Development Council,
said advance bookings throughout the Keys "seem quite good. "
Ingram said he doesn't expect a 10 percent increase in bed tax revenue
again this year.
Like Dade and Broward, the Keys draw a lot from the East Coast and Great
Lakes areas, but they also are attracting more visitors from major Texas
cities like Dallas and Houston, Ingram said.
The Keys also look to neighboring counties to fill in soft spots in
bookings, counting especially on folks longing for a weekend retreat.
Herald business writer Cindy Krischer Goodman contributed to this report.
cutlines
CHUCK FADELY / Herald Staff TOURIST MAGNET: South Beach -- and other
glittering attractions in South Florida -- are drawing record numbers of
international and domestic visitors.
KEYWORDS: STATISTIC TOURIST MD FLORIDA BRWD MONROE ECONOMY
TAG: 9701240138
22 of 24 , 6 Terms
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