Forgotten Real Estate Bubble Burst!!!! Have we?

Residents of North Bay Village! My apologies for the delay in reporting on some of the issues that were addressed at the commission meeting on Tuesday April 8, 2014, I was extremely busy with personal stuff that needed my attention.

Let’s begin with an item presented by At Large Commissioner Jorge Gonzalez.  He was eagerly pushing for approval on the first reading of his resolution, too eagerly if you ask me. The proposed resolution would allow the Village to create a Property Assessed Clean Energy Act (PACE) and join the referenced municipalities in a program to finance energy efficient improvements.

                 

Commissioner Gonzalez quickly met resistance from Mayor Connie Leon-Kreps that wanted a workshop before voting, an item she knew very little about. Commissioner Gonzalez appeared very annoyed at the Mayor’s request and resistance. He quickly defended his position by explaining how this was a unique opportunity for single family property owners to make energy efficient improvement in their homes and fully finance it.  Commissioner Gonzalez proudly mentioned how the 360 of which he is president of the condo association spent $ 20,000.00 replacing all their bulbs to LED.  (Commissioner Gonzalez FYI Bulbs are not covered under the program!)

 He cited that before the bloggers had a field day with his proposal, he wanted the residents to know that this program carries no cost to the Village Local Government. It is done independently with the lenders. Payments that usually have a high interest cost although they promise the opposite, which is expected. The monthly payments that include principal and interest would be collected via the property local taxes over time. Typically these loans can have a life of 15 to 20 years depending on the amount and the improvement.  Commissioner Gonzalez I guess I am a blogger, however foremost I am a concern North Bay Village resident that cares!!!!!

I have done some research and my findings are only a small sample of the information available regarding this form of creative financing. Additionally I don’t want to bore you with a twenty page report.  I do know that jumping into this kind of commitment and partnership with the independent lenders and investors require more than Commissioner Jorge Gonzalez urgency and eagerness to sign up for PACE.

This creative finance would become part of the property and the payments would be transferred to the new home owners should the home be sold. In case of bankruptcy, short sale, foreclosure or abandonment, the loan would supersede any mortgages on the property and would have to be satisfied first as would any taxes in arrears.  Have we forgotten already what “creative finance” did to property values? Have we forgotten the “Real Estate Bubble Bust”? I believe that like separation of church and state, the government has no business partnering with lending institutions, banks and investors regardless of the incentives. You want to issue a credit, that’s fine but making loan payments part of your property assessment and real estate tax bill? I don’t know it just doesn’t sound right.   You be the judge, here is an independent report on the “Pros and Cons” found on the internet.

Advantages

·         Allows for secure financing of comprehensive projects over a longer term than does traditional financing, making more projects cash flow positive (i.e., monthly energy savings are greater than monthly principal and interest payments).

·         Transfers the repayment obligation with ownership, potentially overcoming hesitancy to invest in longer payback measures* by spreading repayment over many years and removing the requirement that the debt be paid at sale or refinance.

·         Can lead to low interest rates because of the high security of loan repayments as a result of their attachment to the property tax bill.

·         Helps some property owners deduct payments from their income tax liability. 

·         Allows municipalities to encourage energy efficiency and renewable energy without putting their general funds at risk.

·         Taps into large sources of private capital, such as the municipal bond markets.

Disadvantages

·         Available only to property owners; renters cannot access the program directly.

·         Cannot finance portable items (e.g., screw-in light bulbs, standard refrigerators, etc.).

·         Can require dedicated local government staff time.

·         High legal and administrative expenses to set up.

·         Not appropriate for investments below $2,500 due to minimum origination and administrative costs.

·         Potential resistance by lenders/mortgage-holders whose claim to the property may be subordinated to the unpaid assessment amount should the property go into foreclosure.

PACE is enabled in 31 states and the District of Columbia

State	Status
California	Available some locations
Colorado	Available, but no current loans
Connecticut	Available
District of Columbia	Available
Florida	Available
Georgia	Under development
Hawaii	On hold
Illinois	On hold
Louisiana	Under development
Maine	Available
Maryland	On hold
Massachusetts	Under development
Michigan	Under development, available in Southfield
Minnesota	Available
Missouri	Available
Nevada	On hold
New Hampshire	On hold
New Jersey	Under development
New Mexico	Under development
New York	Available
North Carolina	On hold
Ohio	Under development
Oklahoma	On hold
Oregon	On hold
Texas	On hold
Vermont	Available
Virginia	Under development
Wisconsin	Available
Wyoming	On hold

NORTH BAY VILLAGE DESERVES BETTER!

Honestly Opinionating!

More to come!!!

Mario Garcia

April 12, 2014

That North Bay Village Complainer!

North Bay Village did you shop at Food Giant Supermarket? How was your experience with the products you purchased? This supermarket was headed for bankruptcy one way or another; recall?  Their management probably blamed the customers (North Bay Village Residents) for their perils.  If a customer voiced their opinion or concerns about a product most likely was viewed as a complaining customer. 

Many other super stores blamed the size of the store, the area, the residents or the demographics weren’t suited for their needs; imagined that! Blame the residents, blame their complaints; lend a deaf ear! Sound familiar?  Their service, cleanliness, freshness, quality of products, friendliness, and variety, waiting time to check out and on, and on had nothing to do with their lack of success. Yeah blame the complaining customer! Yeah that’s it is “ that complaining North Bay Village resident “ who wants better service and a convenient place to shop that offers service and quality products. Imagine that, who we think we are! Yeah that’s right complainers we deserve nothing!!! Wrong!!!!!

Presidente Supermarket cleaned the place up, changed shelving, freezers, increased the number of cashiers, increased the level of service and listened to the customer; not blamed them. North Bay Village Residents have reward them by shopping daily in great numbers! The management listened and made the changes, suddenly you have a successful business.

This we expect from our local officials and Village management nothing less! Solve the problems don’t blame us.

NORTH BAY VILLAGE DESERVES BETTER!

Honestly opinionating!

Mario Garcia

March 20, 2014

Positivism In Buckets?

During a commission meeting break the Village Manager Mr. Frank Rollason approached me and we had a very productive conversation.  Mr. Rollason assures me that in fact the Treasure Island sidewalk cleaning will be completed. He also stated that the dumpster issue was been worked on. I pointed out that structure and dumpster size was a problem that I could understand. Furthermore we agreed that it would take time to make the adequate changes. However in the mean time the maintenance people for the Causeway Towers can make a better effort in keeping the area clean and neat. Mr. Rollason agreed and explained that in fact he was addressing this problem with management and code enforcer. He also assured me that the streets leaks issue was been addressed as well.  

In yesterday’s North Bay Village Commission meeting during Good and Welfare I asked the Commission:

1)   Is the Village going to finish cleaning all the sidewalks in Treasure Island?

2)   Is the Village going to take action regarding the Pirates Aly Dumpsters?

3)   Is the Village planning to repair the water leaks on West Treasure Drive, Adventure Avenue and Mutiny?

And if the answer to any of these questions is yes, please be specific as to when it will happen and when will you report back? To which the commission does not have to respond nor did they seem interested.

However at this commission meeting positivism was abundant. In fact if positivism came in buckets these would have been overflowing. I explained to the commission that Mr. Rollason had been instrumental and in fact had addressed these questions prior Good and Welfare.  This way it was public record and not a private conversation. We will see how it turns out. We shall visit these issues again and evaluate the performance improvement within reasonable time. 

I want to thank Mr. Rollason for speaking with me and addressing our concerns…stay tune more to come out of the bucket! 

North Bay Village Deserves Better!

Mario Garcia

March 12, 2014

Harbor Island Monster Problem!

There is a monster of a problem affecting quality of life in Harbor Island. This monster has been rearing its ugly head for years. This ogre of a problem called parking in Harbor Island grows with each new development or renovation in the Island.   The more progress attracted to Harbor Island the more parking spaces the residents will need.

On Wednesday, February 26, 2014 at 6:30 PM a workshop to address the problem was held at Harbor Island 360 meeting room.  The Village Manager Mr. Frank Rollason, NBV Police Chief Robert Daniels and Public Works Director Mr. Rodney Carrero- Santana instructed by the Village Commission organized the workshop.  

The proposed plan included parking decals for the residents that live in building without parking spaces. These decals would require yearly renewal for a fee of $ 25.00. Three day guest passes would be available at no charge for family and friends that visit.  Residents that live in buildings that have inside parking would not be eligible.  This would free up spaces by forcing those residents to park in the available interior parking spaces in the building which they reside.   Cars without decals will be ticketed and towed.

Some 45 concern residents of Harbor Island attended the workshop. Many of them appreciated the effort by the Village Manager, Chief and Public Works Director to address the problem. The residents asked how may spaces do we have and how many spaces do we need? The Manager, Chief and PW Director did not know. Disapproval and discontentment by the residents was very apparent when they pointed out how unprepared the Manager, Chief and PWD  were.

Some of the residents resented the idea of proposing a plan without knowing the details of the problem. While others made it clear that no matter what, there are more cars then spaces.  Another resident displeased with the situation sited that this was a problem created by the Village and that it should be solved by the Village by buying up a property and possibly building a municipal parking lot.  Mr. Rollason pointed out that financially the village just does not have the money. Considering that local real estate taxes went up as did the water use rate.  Village employees got raises and the police budget went up considerably! If these practices continue taxes will need to go up again! And Harbor Island will continue with their parking problem unsolved!

Some of the residents offered an unofficial parking space count and pointed out all the obvious holes of the proposed plan.  Many Harbor Island residents that attended the workshop offered good ideas and suggestion: simple ideas that work such as allowing back to back parking where possible; allowing parking temporally on the site of the future Village Hall; taking back the green areas that were granted to the developers and turning them back to parking just to name a few of the ideas offered.  The Village Manger quickly pointed out that ideas that cost money cannot be considered at this time.

Additionally the decal plan would lockout residents from North Bay Island and Treasure Island from using Vogel Park.   One resident objected to the plan because it did not take into consideration spontaneous visitors.  Residents with corporate cars not registered in Harbor Island and snow birds that have their cars registered in another State will not be eligible for decals.

At Large Commissioner Jorge Gonzalez and Harbor Island Commissioner Vise Mayor Eddie Lim all fought very hard to get the Speed Tables approved and financed for Harbor Island to address the car speeding issue. This is a real problem that may put children running out of Vogel Park at risk. 

Six Speed Tables are ready to be installed in Harbor Island, three for West Drive and three for East Drive.  If these Speeding Tables are installed twelve parking spaces will be lost. Vice Mayor Lim was not present in the meeting to defend the Speed Tables and Commissioner at Large Jorge Gonzalez was present but said nothing; both of which reside in Harbor Island and were very influential in the approval of the speed tables.  The Mayor was very quiet and stood in the back maybe because she showed up at 7:35 PM.  More to come…The Countdown has begun!

Honestly Opinionating

PUTTING NORTH BAY VILLAGE FIRST!

Mario Garcia

February 27, 2014

In other 79th Street Causeway matters…

The Lexi Condo Association members met with the directors and developers yesterday for the first time. The meeting was concerning a water front thirty nine unit condo building been propose. This structure is to be erected on the lot where the gas station used to be on the causeway. This preliminary meeting was to discuss the building plans been proposed and how it may affect North Bay Village and the Lexi condo owners.  

This building will sit directly in front of the Lexi. Naturally, the Lexi condo owners were concern not as much as how high the building will stand but how wide.  These development company directors do not show the same interest to accommodate the Lexi as the Hotel/Condo developers did.  They have heard the concerns and requests of the Lexi Condo Owners and have said they will see what can be done, but not in a promising tone.

The architectural design of the building can and should be modified to improve the water view for North Bay Village residents and Lexi condo owners. However the developers don’t appear to be flexible or willing. I suggest that the North Bay Village P & Z Board and the Commission show them the same inflexibility and unwillingness  they have shown the Lexi Condo Owners and residents of North Bay Village with any and all variances that come up.  

Hopefully I am wrong and the developers make changes that are acceptable to all concerns, we will see.  When community and developers work together and compromises are agreeable to all parties then everyone wins!

PUTTING NORTH BAY VILLAGE FIRST!

Mario Garcia

February 20, 2014

Water Leaks in North Bay Village

North Bay Village Commission Meeting of Tuesday February 11, 2014 under Good & Welfare addressed water leaks that have been popping up in different areas of Treasure Island.  

A resident that lives in Adventure Avenue complained about a water or sewer leak in front of her home. This resident was very concern because despite calls and reporting it to the village manager had yet to be resolved.  The homeowner also pointed out that another home on West Treasure Drive had what appeared to be a leak as well.  The concern neighbor was worried that the water had a pungent smell and that could be sewer related.  Further stating that someone from the Village Public Works Department had come to look at the problem and had place an orange traffic cone on the spot where the water appeared to come from. A few days later the orange cone was taken away.

The Mayor did her usual surprised and shock expression then asked Public Works Director Rodney Carrero-Santana to address it.  Mr. Carrero explained that there were aware of five such leaks and that two had been fixed.  That currently was getting estimates to fix the remaining three. He explained that it would be cheaper to get an estimate to fix all three.  Mr. Carrero assured everyone that it was not sewer water but potable water.

The problem here is that the Commission and Public Works Director have been aware of the water and sewer pipes infrastructure deterioration for quite sometime now. These leaks are signs of old and frail pipes that need immediate attention. Leaks in nature will not get smaller but with time if ignored will get bigger and bigger.

This was addressed with the need to change the water meters because water bills are underestimated with the old meters. More money you said, now they paying attention! I cannot give you the details of how much it will cost to update the sewer and water pipe infrastructure because I don’t have those figures. However I can tell you that the money is not there. We probably have to raise the money with bonds and that will increase the debt millage for fiscal year 2014-2015 budget.  

This is not fictional or imaginary is a real problem only the budget year may change. The numbers, time table and cost are yet to be determined but the sooner we address them the less impact it will have.  Stay tuned more to come…

HONESTLY OPINIONATING

PUTTING NORTH BAY VILLAGE FIRST

THE COUNT DOWN HAS BEGUN

Mario Garcia

February 14, 2014

OK NORTH BAY VILLAGE LET'S GET POSITIVE!

On Tuesday’s February 11 Commission Meeting Police Officer Columbano was presented with a Life Savings Award Plaque for his heroic action in saving a life! Just a normal day at work and a reflection of many NBV police officers that do a great job in our village. Hats off to you PO Columbano!

Ok let’s continue on this positivism kick, although many won’t see it this way. Item # 13 C: An Application by Isles Of Dreams, LLC Concerning Property Located At 1415 Kennedy Causeway, Tract C of Harbor Island, North Bay Village Florida. The Commission unanimously approved the Site Plans to build a 237 unit, 32 story mixed use structure while respecting the Bay View Overlay Standard.  The plans presented beautifully, balances privacy for the condo owner and NBV residents’ right of access to the water.  When this structure is finally built as presented, it will bring pride and recognition to North Bay Village. Congratulations!

Hate to ruin all of the above positivism but we need to get back to business and expect more fiscal responsibility from our elected officials. Just a few months after a tax increase and water bill hike our commission with the exception of North Bay Island Commissioner Richard Chervony, is in favor of renting additional space at the Causeway Towers.  Village positions have been added converted and some salaries were raised. The financial update report has no wiggle room and if expenditures continue untamed we will be facing another tax hike!  More to come…

Humbly Opinionating

PUTTING NORTH BAY VILLAGE FIRST

THE COUNT DOWN HAS BEGUN

Mario Garcia

February 13, 2014