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Isle
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Sunny Isles Beach
is one of Miami-Dade's newest municipalities. But it has thrived
as a community since, the 1950s, when it became an oasis of low-rise
hotels and motels marked by decorative motifs. Today it's undergoing
a massive transformation, as condos grow sky-high along its coveted
beachfront.
* In Frank Capra's 1959 movie-musical "A Hole in the Head,"
Frank Sinatra stars as Tony Manetta, the owner of a struggling
hotel called the Garden Of Eden -- shot on-site at the still-kicking
Cardozo Hotel on Ocean Drive. The plot of the movie revolves around
Manetta's attempts to convince his friend, a wealthy New Yorker
played by Keenan Wynn, to turn South Beach into a theme park reminiscent
of Disneyland. Along the way, Manetta attempts to woo a beautiful
woman staying at his hotel. He takes her for a ride in his flashy
convertible for a big night on the town -- to what is today known
as Sunny Isles Beach.
As Manetta and his date, Shirl (played by the sultry Carolyn Jones)
drive north on A1A in his convertible, the sky over the car is
filled with a montage of neon hotel signs: Tangiers, Sahara, Oasis,
The Mandalay and Castaways, among others. These Sunny Isles properties,
shown in their heyday in the movie, were portrayed as glamorous
outposts for the well-heeled and fashionable.
Today, more than 40 years after Capra wrapped the production,
the face of Sunny Isles Beach is a far cry from the scene portrayed
in the Sinatra flick. The hotels that once shared the spotlight
with Sinatra and company -- many of which were fronted with fanciful
decorative statues of mermaids, covered wagons, Tahitian masks
and pyramids -- have mostly fallen to the wrecking ball, In their
place are soaring towers of luxury homes, and the few campy hotels
remaining are slated for destruction by developers wooing residents
with condos priced anywhere from $250,000 to $10 million.
Yet the city -- which incorporated in 1997 -- is exuding a different
type of glamour, the kind that comes from having a skyline that's
literally bursting with high-rise development. All along its coastline,
sleek skyscrapers of enormous height are forever changing the
complexion of the city, replacing moderate-income visitors with
wealthy residents.
Such is progress, and Sunny Isles is in the thick of it -- to
the tune of thousands of residential units coming online in the
next several years. The tiny city's renaissance translates into
billions of dollars invested in a strip of beachfront only 2.5
miles long and three blocks wide. "The charm of an old motel
is if the old motel stays in the same condition as when it was
charming," says Jose Milton of J. Milton & Associates,
a developer who was one of the first to build in Sunny Isles,
back in the mid-1990s, with Sands Pointe and The Pinnacle. "These
motels were never even kept close to that. What you have in their
place is a great thing. It's impressive."
The developers who are transforming the city have the full support
of its administration. Sunny Isles Beach mayor David Samson, in
fact, totally agrees with Milton's assertion. The spry 86-year-old
-- who has lived in the area since 1972 and helped incorporate
the city -- is adamant that Sunny Isles live up to what he says
is it's full potential: to house world-class development within
its borders. "Sunny Isles, when I moved here from Chicago,
was going in one direction -- down," Samson says. "I'm
happy to tell you that today I'd put this city up against any."
Still, he says, "everything has a history, but I don't want
any of the so-called things that remind you of that history to
be included in the beautification of this city."
Dezerland
One case in point that illustrates Sunny Isles' dramatic change
is the $640 million Trump Grande. It's a condominium and hotel
complex developed by father-and-son team Michael and Gil Dezer
and the ubiquitous Donald Trump, with whom the Dezers hooked up
last summer and for whom the mammoth development is named.
Actually, the Dezers -- who own about 40 acres of oceanfront land
in the city, as well as their Dezerland resort in Miami Beach's
North Beach area -- are a good place to start when discussing
Sunny Isles' metamorphosis. Starting with the Thunderbird Hotel
on Collins Avenue, the development team began buying properties
in Sunny Isles more than five years ago, and have been on a tear
ever since. At the moment, the Dezers are working on building
three towers (the Trump Grande condominium-hotel plus two more
condo towers) for a total of 1,000 units on more than 1,000 linear
feet of oceanfront. The development is collectively called Trump
Grande Ocean Resort and Residences, and it's well under construction.
Gil Dezer says the hotel component of the three buildings (to
be managed by Sonesta Resorts) will be ready for occupancy in
March. They've about sold out the condo-hotel and the second condo
tower; sales are brisk in the third tower as well, with about
65 percent of the 332 units already gone.
How the family started on its quest to redevelop Sunny Isles is
something the younger Dezer, 27, fondly recalls. "It was
December of 1997, and we [the family] were sitting in our house
in New York," Gil says. "It was snowing outside and
my father called a family meeting. He sat us down and said, 'There's
a place in Miami called Sunny Isles and I see a potential there.'"
Gil says the family's real estate portfolio in New York didn't
carry mortgages (they owned everything outright), so his father
wanted to "bring his good name and good credit" to South
Florida and start buying up a lot of the property in Sunny Isles.
On the site where Trump Grande is going up, incidentally, the
Dezers have $140 million in land and construction loans alone.
"He said, 'Does anybody have any objections?'" Gil recalls.
"He asked us what we thought about it. I hate to admit it,
but we were like everybody else, saying, what the hell are you
looking at these run-down hotels for? I looked at some of them
and said, 'You're spending $10 million for that?'" But, sitting
in Trump Grande's oceanfront sales center (formerly the Colonial
Inn), describing the three-story, 9,000 square-foot condo he's
building for himself in the second tower, Gil admits that his
father's gamble paid off. "He's really a visionary,"
he says. "He had the foresight to come in here, and he really
blew this place up." The family today owns property stretching
from 158th Street to 198th Street on Collins Avenue.
With no more hotels to purchase in the city, the Dezers are turning
to what's left: small condo-hotels, such as the Golden Nugget.
"We're buying the owners out unit by unit by unit,"
Gil says. "It's a major pain in the ass, but we've set up
an entire department in our organization that handles that. So
far, we've been able to put together two and a half buildings
since 1999. It takes a while."
Apparently. He says the first wave of condo owners just wants
to sell, then there's the second and third rounds of people who
are a little tougher. "Then you've got the last five people
or so who think they're crackerjacks," Gil says. "We
have ways to get them out." He won't discuss the strategy,
but says it's perfectly legal. "But, luckily for us, we also
run a hotel operation. We run the Thunderbird as a hotel. When
we buy them out, we don't just let the units sit there -- we have
a rental operation as well. So we're trying to cover our expenses,
not trying to make money ... because when you spend $100,000 on
a little studio, you're not going to make any money. That's the
strategy that allows us to hold the properties until we're actually
ready to do something with them." In the meantime, he says
the family has some tentative plans in the works for other projects
at various sites -- including the possibility of teaming up with
another developer at the site of the Desert Inn condo-hotel --
but for now they'r e concentrating mostly on Trump Grande.
At the very least, the family's vast ownership in the city puts
them in an enviable position, with other developers approaching
them for land. "It happens a lot," Gil says. "We
have one property that we're almost done buying out and we're
talking to two different developers right now." Indeed, the
land on which The Related Group's Ocean II sits -- on the north
end of the city -- was one of the family's parcels. "We can
control our competition," he says.
Skyward Ho!
One thing that neither the Dezers nor other developers in Sunny
Isles Beach are overly concerned with is a slowdown in South Florida's
condo market. "The obvious economic problem is a national
problem," says Milton. "You know, if you're an international
buyer and the country you're going to invest in is about to go
to war, would you feel comfortable with that? I think the US is
under a microscope right now. However, are we enjoying the best
real estate market in the US at the moment? I think so. I'm confident
in saying that."
It's simply business as usual regarding oceanfront property, and
beyond the Dezers are a stable of major developers who are more
than holding their own with successful projects either under construction
or under development.
The Trump Group -- headed by Jules Trump, the developer of Williams
Island across the Intracoastal and no relation to the Donald --
is building Acqualina at 178th Street and Collins Avenue. This
highly elegant building, which has a small, 65-room hotel segment
to be managed by Rosewood Hotels, is built up to the 24th floor
and will deliver in early 2004.
Sales director Michael Goldstein says that during the second week
in January, the development logged $19.5 million in sales - 16
units with solid 20 percent deposits on them. All of the 198 units
in the building start at more than $1.4 million, a high price
point even for South Florida. "We've been used to a pace
of seven to 10 sales per month," Goldstein says. "The
season's obviously picked up." Goldstein says one of the
major differences between Acqualina and other developments in
Sunny Isles (besides its self-conscious image as the top-of-the-line
product) is that he expects about 68 percent of the owners to
live in the building full-time. "The foreign market is virtually
nonexistent for us," Goldstein says. 'About 75 percent of
our owners are US citizens."
There's a greater mix of tenants at La Perla, says Richard Lamondin,
one of the executives at the Cornerstone Group, the firm developing
the condo. "We've got Lots of locals who are selling their
homes in Aventura or other areas and who want to be on the beach.
We have a number of people coming in from Mexico and Latin America.
I think that's one of the reasons our market is brisk, because
of the diversity of the buyers."
Down the street, the 328-unit, $140 million La Perla might also
be getting a more diverse mix because of the development's price
points, which range from the mid-$200s to the mid-$500s. "We
recognized that people wanted to live on the ocean for less money,"
Lamondin says, adding that since the condo's sales effort started
in July of last year, 228 out of the 326 available units have
sold. "We looked at the market and saw that everyone was
building 3,000-square-foot units," Lamondin says. "We
chose to design smaller units, at an average of 1,475 square feet.
Compared to what everyone else is building, it's a price-conscious
choice."
Jose Milton sees things a bit differently. He says that the more
modestly priced units are not attracting international buyers.
"I would say that your lower-end price point is your local
buyer," he says. "The Sunny Isles buyer is, depending
on your price point, 30 to 50 percent local." Milton should
know the market. His mid-1990s pre-Dezer projects were literally
groundbreaking; the Pinnacle itself stands out as a stunning architectural
statement, a futuristic shark's tooth that can be seen from miles
away.
Milton is currently doing consulting work for his brother Frank,
who's gearing up a sales effort on Sayan, an Indonesian-themed
condominium to be built at 162nd Street and Collins Avenue. With
only 90 residences in the entire 30-story building, Jose Milton
says Frank has created a very private, intimate condo. The development,
which should break ground in June of this year (with an 18-month
build-out), offers condos that range in price from $467,000 to
$3.8 million.
Yet another condominium under development in the city is Turnberry
International's Turnberry Ocean Colony, slated to rise on the
south end of the city near the Oceania complex of highrises -
also early entries in the high-rise game, on the site of the once-famed
Castaways. Turnberry International got its feet wet in the market
when it took over development of the last Oceania tower a couple
of years ago, with only a couple of units left. "In fact,
we did that to gain access to the 650 feet of beachfront that
the original developer owned on the beach side," says Bruce
Weiner, Turnberry's president. "It worked out well for everyone."
The company, well-known in South Florida for developing much of
Aventura, plans two 37-story, 130-unit towers with a private club,
dining, spa and fitness center.
Weiner says that although a sales center won't be open until mid-February,
Turnberry's already taken 10-percent deposits for 65 units. Units
will range in size from 2,200 to 5,700 square feet, with an average
selling price of $1.4 million apiece. The company is going for
a high-end buyer who's more concerned with square footage than
living economically on the ocean. "I can't say whether or
not these buyers are going to live here year round," Weiner
says, "but I can say that we do turn away straight investors.
Some buildings are built for the masses and some, well, some are
built for the classes."
Return of the Hotels
Beyond just straight-up condos, Sunny Isles is also experiencing
an influx of condo-hotels, a niche that, with certain exceptions,
fits the city's predominantly seasonal residential base. Such
buildings are also attractive to foreign buyers, who usually spend
scant time in their units and are happy to put them in a poo1
of rental rooms in order to recoup some of their investment.
"Condo-hotels are very good for our type of clientele,"
says Edgardo Defortuna, whose Fortune International is developing
the $81 million M Residences, a 210-unit "hotel residence"
at 187th Street and Collins Avenue. The units, says Defortuna,
will range in price from $170,00 to $600,000. "We have people
from everywhere wanting to buy into the building. We've got a
big group of Euros from Spain and Italy, as well as people from
Latin America - Mexicans and Colombians. Maybe for the condo market
the international buyer has dribbled off, but for this type of
development it's very attractive." Defortuna says he plans
to begin construction on the building in early March, and will
deliver units to his buyers fully furnished.
Another condo-hotel is Homewood Suites by Hilton, on the west
side of the city. Managed by Miami-based Cardel Hospitality Group,
Homewood Suites opened about six months ago and is the first condo-hotel
that Hilton has been involved with in the United States. "It's
definitely an experiment from Hilton's side," says Carlos
Rodriguez, Cardel's president and CEO. Rodriguez says about 60
of the 100 units in the building wilt go into the rental pool
(there are 56 already in it), with over 80 percent of the units
-- which range in price from $250,000 to $350,000 -- already sold.
"Condo-hotels are extremely appealing to second-home buyers,"
says Rodriguez. "But you have to look for resort destinations
where people want to go on vacation, and Sunny Isles fits that
criteria. You try to develop a condo-hotel in the middle of Airport
West and it wouldn't work."
Indeed, says Enrique Soltanik, an Argentine developer who's doing
the 21-story Fantasy on the Ocean, a condo-hotel at 157th Street
and Collins Avenue. "Sunny Isles is one of the most beautiful
and newest cities in South Florida," he says. "Not only
that, but the condo hotel concept is very interesting for people
who live outside the country. When they're not here, they're still
getting a return on their investment."
The Rest of the Story
With such a flurry of development happening, there's no doubt
that Sunny Isles is facing some sizable challenges. For one, the
retail component of the city is beginning to lag behind the quality
of its residential development. As it stands, basically all of
the city's retail is housed on the west side of A1A in a series
of strip malls controlled by Maryland-based R.K. Associates. There
are few national tenants outside of a Burger King, an Eckerd Drugs
and an Einstein Bagels, and most of the retail is fairly modest,
if well kept -- discount clothing shops, convenience stores, inexpensive
restaurants, bikini outlets and so forth.
What concerns city officials is that the influx of wealthy people
moving into the city won't be spending any money there, what with
the tony Bal Harbour Shops looming directly south and Aventura
Mall sitting directly west. "We have to create a city venue
which will give people a dynamic retail experience," says
Bill Lone, executive director of the Sunny Isles Beach Resort
Association and also an executive of the city's economic development
council. "We've got the whole west side yet to redevelop."
Lone says it's a chicken-and-egg-type situation. "Do you
bring in the national retail and then attract the residential
base? How do you make it happen?" On the plus side, two Washington
Mutual bank offices are opening on the strip.
"We definitely need a different type of retail area,"
says Mayor Samson. "I envision a continuous five-block retail
plaza along the west side of A1A. [R.K.] hasn't been able to bring
in nationwide tenants that would then bring people here to shop.
I don't know if [they] will do anything, but I do hope that someday
they will listen to what I have to say. It hinges upon [R.K.'s]
cooperation, and that the west side should follow the east side."
Sunny Isles is also addressing how to incorporate more green space
into the city, which, being so small, doesn't have a lot of land
for parks. But Lone says there are about seven acres of land devoted
for parks as it is, including the Gilbert Samson Oceanfront Park
at 174th Street and Collins Avenue. There is also a fishing pier
in the southern half of the city at 163rd street - a throwback
to old Florida days - and a small fleet of deep-sea fishing boats
on the Intracoastal side of A1A a few blocks to the south.
In order to upgrade itself, the city has undertaken a comprehensive
capital improvement plan. "Now's the time for lipstick and
rouge," Lone says. "We just completed a $14 million
beach re-nourishment program last year and are currently working
on the roads and other infrastructure." In addition, the
city requires developers to maintain the corridors on the sides
of their buildings which allow public access to the beach. In
the end, Samson says that there will be about two dozen points
of beach access along A1A in Sunny Isles.
Symbolic of the city's new role as an up-and-coming luxury high-rise
community is a new city hall being built at 18050 Collins Avenue,
the former site of a Tony Roma's restaurant. When completed next
year, it will house all the divisions of the city government,
including the police department, as well as a branch of the Miami-Dade
County public library system.
Perhaps the biggest challenge the city faces in the immediate
future is a lawsuit filed against it by the Town of Golden Beach,
Sunny Isles' neighbor just to the north. The town, a posh enclave
of more than 350 luxury single-family homes, is concerned that
Sunny Isles' explosive development will infringe upon its low-rise
lifestyle. At the center of the controversy is the fact that Sunny
Isles recently revamped it's zoning codes, allowing no height
restrictions on condo buildings that are coming online. However,
Sunny Isles does require sizable side setbacks. The result? A
crop of well-spaced, tall buildings instead of a concrete wall
of short, squat ones.
Golden Beach's suit asserts that it was unaware of Sunny Isles'
plans to change its zoning, but Lone says the city posted notices
of hearings and that Golden Beach should have been well-aware
of what was going on. Golden Beach is also concerned that the
condos - and the subsequent influx of people - will bring added
traffic, noise and congestion to the area.
Calls to Golden Beach attorneys weren't returned, and Samson would
not discuss the suit, but Turnberry's Bruce Weiner had this to
say: "To me, it's an interesting suit. I'll tell you the
confusing thing. It seems to me that there were so many thousands
of hotel rooms here - with people coming and going at all times
- that are now going to be replaced with permanent housing. And
half of these condos are going to sit empty for most of the year
anyway. I don't get the fuss."
It remains to be seen how the suit will be resolved. But Samson,
who leaves office in 2005, is proud of what he helped create in
Sunny Isles. "You ain't seen nothing yet," Samson says.
"I envision that for 100 years to come, people will fight
to live in Sunny Isles."
RELATED ARTICLE: Are You Experienced?
Not until you've eaten lunch on a Saturday afternoon in-season
at Wolfie Cohen's Pascal House.
* As a South Florida native, I've made the culinary pilgrimage
to Wolfie Cohen's Rascal House -- the deli Mecca of South Florida
-- too many times to count. I've eaten tens, maybe hundreds, of
matzo balls there over the years, and I don't even want to think
about how many pounds of corned beef. But delicious food aside,
the actual dining experience at the 59-year-old Rascal House --
bedecked in loud turquoise and orange vinyl and its almost-scary
pitchfork-wielding cartoon character icon -- is an experience
like no other. In fact, a recent jaunt proves that while Sunny
Isles may be transforming, some things haven't change.
It's a chilly Saturday morning, and my guest and I are relieved
when the doors at Rascal House swing shut behind us. Immediately,
we're in another world: The smells of hot coffee, fresh rye bread
and that pervasive-yet-indescribable whiff of Jewish deli swirl
around the cavernous main dining room. I know we aren't going
to get a table easily, though, as my eyes meet those of the stern-looking
hostess. She's manning the lines of people -- grandmotherly old
ladies, young families and single diners with newspapers tucked
under their arms -- allowing access to the dining room only when
given the signal that a booth or table is ready.
Soon enough it's our turn, and our patience is rewarded when our
octogenarian waitress sets down stainless steel bowls of pickled
tomatoes and coleslaw. I already know what I want: a half-corned
beef sandwich on dense, springy, soft rye bread. Today, though,
I'm daring and ask for a cup of mushroom-barley soup instead of
my usual matzo ball. My companion looks a little bewildered at
all the choices, but finally settles on a brisket sandwich and
a side order of potato pancakes. The business of ordering aside,
we settle in for some vigorous people-watching. It's non-stop
action, as waitresses and busboys bob and weave around each other
carrying coffee pots and huge trays laden with sandwiches, bowls
of soup and golden Danishes. The tables around us are buzzing
with chatter, and I hear snippets of conversations about bridge
games, condo associations and the unusually cold weather. I snap
to attention when our waitress sets down my soup and sandwich,
and get busy slathering the bread with spicy brown mustard. I
swipe a ridged potato pancake off my companion's plate and top
it with a dollop of sour cream.
My first bite transports me to another time and place. Maybe that's
the draw to Rascal House: Experiencing a bit of South Florida's
history, one bite at a time.
Sunny days
Historical photos are a window to Sunny Isles' past.
Visitors to Sunny Isles in the late-1940s and early-1950s fell
in love with the low-rise, breezy atmosphere of the tiny seaside
community. Celebrities such as Burt Lancaster, Grace Kelly, Benny
Goodman and Guy Lombardo were taken with the sunshine and beauty
of one of South Florida's prettiest beaches. Today, the city keeps
record of the Sunny Isles of yesteryear with this collection of
historical photos -- mostly taken before all of the well-known
hotels and motels were constructed in the late 1950s and 1 960s.
The bottom left photo shows the Mandalay Hotel, which is still
standing today at the southern tip of Sunny Isles Beach. The photo
directly above it shows the view looking west from the not-pictured
Atlantique Motel, taken in the mid-1950s. The man standing in
the picture is probably waiting for a charter-fishing boat to
come in from a day of angling. The top right photo shows the docks
of the infamous Castaways hotel, which has since fallen to the
city's current renaissance. But it's good to keep in mind that
the Sunny Isles of yesterday lives on -- if only in memory.
Building castles in the sky: from motel row of just a few years
back, Sunny Isles Beach is now transforming itself into a city
of mega high-rises with a soaring tax base and a new influx of
younger, far more affluent residents. The sky's the limit
South Florida CEO, May, 2004 by Richard Westlund
and the Parthenon, and Rome's monumental Coliseum. Today, Sunny
Isles Beach is making its bid for a place in history with a glamorous
row of soaring oceanfront towers.
Taking advantage of one of the last available strands of beachfront
in South Florida, well-known developers are building "castles
in the sky"--luxurious residential condominiums and hotel
suites--far above the Atlantic surf. In a frenzy of new construction,
more than a dozen towers are now rising in this fast-changing
Northeast Miami-Dade community, sandwiched between Haulover Park
to the south and the ultra-wealthy single-family-home enclave
of Golden Beach to the north.
"The location is really spectacular," New York real
estate mogul Donald J. Trump told SouthFloridaCEO. Known for his
recent TV role on "The Apprentice" and high-profile
love life, as well as his successful Manhattan investments. Trump--in
partnership with the New York-cum-South Florida real estate Dezer
family--is among the developers who are pouring hundreds of millions
of dollars into Sunny Isles Beach. "I have always loved the
location." Trump said. "and over the past few years
it's become the hottest place in Florida."
One reason developers have become so fond of the city is that
their oceanfront buildings can rise up to 55 stories, higher than
anywhere else on the beach in South Florida. But their new towers
also need to be relatively thin, providing views of the ocean
and beach access for community residents. It's an approach that
worked well in Cancun, Mexico, where modern mega resorts are separated
by stretches of sandy beach.
"Our philosophy has been to build tall and skinny buildings
with wide view corridors," says Sunny Isles Beach Mayor Norman
S. Edelcup, who succeeded the city's late founding mayor, David
Samson, last October. "We believe this approach is better
than having short and squat buildings that block the ocean views.
It allows us to accommodate developers, while making our city
pleasant for residents. That approach is working well for us."
Few people have done more to carry out the city's vision than
architects Charles Sieger and Kobi Karp. Sieger, a principal in
South Miami-based Sieger Suarez Architectural Partnership, designed
some of the earliest towers, including the Pinnacle and Ocean
I, II and III, as well as severl now under construction, including
Ocean IV and Sayan.
"Every one of these projects are different, reflecting the
developer's preferences, our creative ideas, and the constant
changes in the marketplace," says Sieger, who assisted the
city in rewriting its zoning codes to encourage the taller, skinnier
building concept. "That creates a more interesting skyline
and allows more light and air down on the street level,"
he says. "Sunny Isles is in the forefront of the nation in
writing zoning codes that promulgate high-rises in an acceptable
urban fashion. The result for the city is an attractive urban
fabric along the edge of the ocean."
Karp, president of Kobi Karp Architecture and Interior Design
(KKAID) in Sunny Isles Beach, has designed half a dozen of the
new residential and hotel towers for various developers. "What
we strive to do is create unique individual buildings with their
own character and personalities," he says. "Like people,
buildings have to relate to their environment and their surroundings."
Karp is a strong proponent of the city's tall, fluted approach
to new development. Among the new wave of buildings he has designed
are La Perla, the M Resort Residences and Jade. "Wouldn't
you rather be 6-foot-4 and weigh 200 pounds than to be 5-foot-9
with the same weight?" he says. "The tall, thinner designs
allow for more open space and more green space between buildings,
which is critical because of the community's relationship with
the water. It is more costly for the developer to construct a
skinny building, but the extra height provides some compensation."
A CHANGING LANDSCAPE
Back in the 1980s, a trip to Sunny Isles Beach was like a journcy
to the past. A string of colorful, but decaying hotels from the
1950s and 1960s lined the oceanfront. Along "motel row."
properties like the Castaways. Thunderbird, Marco Polo and Sahara
offered whimsical design twists to passing motorists (you can
still see the camels in front of the Sahara) and bargain-priced
rooms inside.
At one point the row of hotels were considered quite glamorous,
so much so that they were featured in the Frank Sinatra movie
"Hole in the Head," when old blue eyes takes his date
out for a night on the town in Miami. But in recent years, most
visitors were middle-class families, flying in from Canada or
driving here for a Miami beach vacation that might cost a mere
$39 or $49 a night. If the service was erratic or the elevators
malfunctioned, at least they could get a cool tropieal drink at
the bar for a buck or two.
Sunny Isles Beach hoteliers also began to cultivate the European
market, according to Bill Lone, owner of the Lone Group Advertising
firm, who serves as executive director of the Sunny Isles Beach
Resort Association. "They were able to offer preferred rates
to visitors from Europe who typically stayed a fortnight [two
weeks]," he says.
That European exposure
helped attract a German investment firm, which purchased the Castaways
in the mid 1980s, demolished the signature, sprawling low-rise
hotel, and began building Oceania, a luxury high-rise residential
development that now consists of five residential towers. A few
years later, condominium converter Crescent Heights renovated
the 500-room Marco Polo, successfully selling units for $39,900
a piece to local residents and out-of-towners seeking a weekend
getaway property.
Another mid-1990s pioneer was Jose Milton, whose company, J. Milton
& Associates, developed the oceanfront towers Sands Pointe
and Pinnacle, as well as the Intracoastal Yacht Club, a high-end
waterfront rental complex on the west side of the community. Lone
credits Milton with being a "spark" that helped ignite
interest in the community. "At that time, the banks were
not attentive to Sunny Isles Beach," he says. "Sands
Pointe was an immediate success, and then the Pinnacle made a
clear design statement to the market. After that, developers began
saying. 'Can you top this one?' and that type of competition has
been good for the community."
The transformation of Sunny Isles Beach began to pick up speed
after the city incorporated in 1997. One of the first projects
was Millennium, a 33-story joint venture between two Venezuelan-owned
companies that sold almost half of its 117 residences to Latin
Americans.
Suddenly, the stars over Sunny Isles Beach came into alignment
and the race was on to create a new city of towers. Among the
reasons for the boom: Natural assets. Although the city's total
area is just 1.0 square miles, it has two miles of beaches on
the Atlantic Ocean.
Rising land values. With land in South Beach exorbitantly priced,
developers could purchase oceanfront land in Sunny Isles Beach,
afford to tear down existing structures, and still reap significant
profits.
Height liberalization. When prices rose, so did permissible heights.
As real estate attorney Clifford A. Schulman, a shareholder at
Greenberg Traurig, P.A., points out. "The land in Sunny Isles
Beach is more valuable to developers because you can build high-rises."
A pro-development civic environment. Once Sunny Isles Beach incorporated,
city officials could implement their vision of creating a modern,
affluent community dominated by tall, high-end residential towers.
A central location. Halfway between South Florida's two biggest
cities. Sunny Isles Beach attracts air travelers from both Miami
and Fort Lauderdale international airports.
The near build-out of Aventura. Developers who had invested in
Aventura's Intracoastal condominium towers found it a natural
move to head east across the William Lehman Causeway and continue
building in Sunny Isles Beach. Continued promotion and behind-the-scenes
marketing. Major US developers became more comfortable with the
idea of investing in an up-and-coming community.Community investment
in infrastructure. City and state dollars went into renourishing
the Atlantic beach, refurbishing Collins Avenue and building new
side-walks, water and sewer lines.
Since becoming a city in 1997. Sunny Isles Beach's tax base has
risen along with its higher skyline. From approximately $1.1 billion
six years ago, the city's tax base hit $2.7 billion in 2003, on
its way to a projected $5 billion before the end of the decade.
The population of Sunny Isles Beach has also climbed quickly,
from less than 15,000 at the time of incorporation to an estimated
17,000 today. Residential developers have built 3.277 new units
in the past five years, with another 3,012 units proposed or under
construction. Not bad for such a small, narrow coastal community.
"By incorporating as a city, Sunny Isles Beach achieved self
rule, and was able to bring the benefits of its new growth to
its residents," says Lone. Among the benefits of the additional
tax revenue: free shuttle bus service for residents, a growing
collection of city parks, and a new four-story City Hall slated
for completion later this year.
The city's award-winning police force has also made a name for
itself, significantly reducing the city's crime rate. "We
have a dedicated local police force that is resident and tourist
friendly, and focuses on crime prevention," Lone says. "Today,
we are virtually a crime-free community."
PLAYING THE 'TRUMP' CARD
Undoubtedly the biggest investor in the new Sunny Isles Beach
is the Dezer organization, led by the father-son team of Michael
and Gil Dezer. Through their own purchases of existing hotels,
investments in new high-rise developments, and partnerships with
Donald Trump and Jorge Perez' Related Group of Florida, the Dezers
have pumped more than $300 million to date in Sunny Isles Beach.
"Day by day we see the changes taking place," says Gil
Dezer, president of Trump Dezer Development. "It's amazing
how quickly you can see the whole skyline changing. The city had
a great vision and it's coming to be a beautiful place to live."
Last year, the Dezers teamed with The Related Group in a 50-50
partnership to build Ocean IV, a luxury condominium to the south
of the Related Group's sold-out Ocean I, II and III towers. Sales
at Ocean IV are going strong, with construction due to start later
this summer.
"Ocean IV is the most successful building we've done in Sunny
Isles Beach," says Tom Daly, a developer who partnered with
the The Related Group on Ocean I, II, III and IV. "We sold
271 units in four weeks and have only a few remaining." Condos
at Ocean IV are priced from $400,000 to $2 milion.
An even larger-scale collaboration is underway between the Dezers
and Donald Trump. When completed, their Trump Grande Ocean Resort
and Residences will encompass three buildings. They are: Trump
International Sonesta Beach Resort, a completed 372-unit condominium
hotel; Trump Palace, a 278-unit, 55-story condominium tower now
under construction with scheduled completion in mid 2005; and
Trump Royale, a 333-unit, 55-story condominium tower scheduled
for completion in December 2006.
"We're doing well with these buildings, and Donald Trump
has helped us immensely," says Dezer. "We're already
sold out at Trump Palace and are 85 percent sold at Trump Royale,
which is due to break ground this summer." Prices for the
three Trump towers range upward from the $600,000s, with penthouses
going for between $1.5 million and $25 million.
As Donald Trump said when he announced the joint project. "I
believe this is an amazing tract of beachfront property with phenomenal
potential. It is the equivalent of owning everything on Fifth
Avenue from 52nd to 57th Street. With virtually no remaining prime
oceanfront property in Florida, there is no doubt that this project
is going to be a great success."
MOVING EAST FROM AVENTURA
When noted Williams Island developer Jules Trump announced his
plans for Aqualina several years ago, South Florida's real estate
world held its collective breath. Would an ultra-luxurious development,
whose castles in the sky cost well over $1 million each, succeed
in a "transitioning" neighborhood like Sunny Isles Beach?
The answer was clearly yes. "We are sold out and expect to
start closings this fall," says Michael Goldstein, president
of sales. "The values at Aqualina have already gone up, now
that people see the quality here." Aqualina's buyers include
Chicago Cubs star Sammy Sosa, who purchased an 11,500-square-foot
penthouse.
Jules Trump, a partner in The Trump Group--and no relation to
Donald Trump--sees Aqualina, and its in-house Rose-wood hotel,
as setting the tone for the revitalized city. "Sunny Isles
Beach is becoming a very cosmopolitan community with an outstanding
quality of life," he says. "It's accessible to great
shopping and restaurants, and it has very good city government."
Another developer who crossed the causeway from Aventura is Turnberry
Associates. Known for its legendary Turnberry Isle Resort and
Golf Club in Aventura--as well as Turnberry Place, its new Las
Vegas project--the long-time South Florida developer is now building
Turnberry Ocean Colony. "Aventura has been a super success
story for 15 years, but it doesn't have a beach," says Bruce
Weiner, president, Turnberry Development. "The natural spillover
from Aventura is Sunny Isles Beach. That's been a primary driving
force for us." As for who the new residents are, says Weiner.
"About 60 percent of our buyers will be primary residents
who already live in South Florida. This will be home to them."
With two 37-story towers, each with 130 oceanfront units, and
a luxurious resident-only beach club and spa. Turnberry Ocean
Colony's residences average about $1.5 million. Construction began
in January on the first tower and beach club, with sales on the
second tower set to begin this summer.
A HOST OF HIGH-RISES
Referring to Sands Pointe and Pinnacle, Yosi Gil, partner with
J. Milton & Associates says, "Our first developments
helped put Sunny Isles on the map." Today, the developer
is continuing its string of successful projects with Sayan on
the beachfront and King David on the Intracoastal.
The latest of the company's oceanfront towers, Sayan is "luxury
to the extreme with an oriental style," says Gil. "Our
boutique-style setting still offers the same upscale indulgences
as neighboring buildings, but with a more personal, privileged
feel." All 90 units in the 30-story tower have been sold
at prices starting around $500,000. Ground breaking is expected
in June with a 15-month timeline for completing construction.
A few blocks to the west, King David is 90 percent sold, according
to Gil, with remaining units priced from $285,000 to $475,000.
After that, J. Milton & Associates plans to build another
five to six towers in the city.
Just north of Sayan, near the historic Newport Pier, is La Perla,
a 42-story oceanfront development by Cornerstone Premier Communities.
The 316 two- and three-bedroom residences at La Perla are priced
from the $300,000s. Cornerstone president Richard Lamondin says
construction began in April with completion scheduled for mid
2006. "La Perla is 100 percent sold, and we're now under
construction. We have a lot of local residents buying units as
a place they can retreat to on weekends. Like everyone else, we've
seen a lot of international interest, from Europe, Mexico and
Latin America."
Further north, New York-based Wave-Stone Properties and The Helix
Group are making their joint debut in Sunny Isles Beach with Sole,
a boutique resort designed to capture buyers looking for "urban
chic." Thomas Feeley, founder and principal of WaveStone
Properties, says, "With our first entry into the market,
we wanted to bring something different. Sole offers a casual,
cutting-edge beachfront lifestyle." Sole will have 147 one-
and two-bedroom units, priced from $280,000 to $850,000. WaveStone
broke ground on Sole in April, and is currently in negotiations
with several high-end boutique hotel operators.
Another planned tower is The Sea, a 45-story building with 238
units by Sunny Isles Development LLC. "We have submitted
our request for site plan approval, and are already doing extremely
well in presales," says vice president Isaac Kodsi, whose
father Joseph Kodsi is the developer. With units priced from $800,000
to $2 million, The Sea will offer the same level of luxury as
a more expensive building, while maintaining a more uniform pricing
level, Kodsi says.
Fortune International, led by Edgardo Defortuna, is making its
second major investment in Sunny Isles Beach with Jade Beach,
a 55-story luxury tower with 248 units. After recently receiving
site plan approval from the city, Fortune launched its sales campaign
with residences priced from the $400,000s to more than $6.5 million.
Fortune also purchased an oceanfront site just to the north of
Jade Beach and is starting the planning process for another luxury
tower.
"We feel there is so little beachfront land left in South
Florida, that being able to get 300 or 600 feet on the site [when
counting the second building] makes us extremely bullish on the
location," says Edgardo Defortuna, president. "Even
if interest rates rise, we feel the Sunny Isles Beach market is
very safe, because people from around the world will continue
to want to be on the beach."
HIGH-END RESORT DEVELOPMENT
Not all the new high-rise development in Sunny Isles Beach is
strictly residential. Several new luxury projects have adopted
the condominium hotel concept, where buyers purchase suites that
can be rented out by a hospitality management company. Other residential
projects incorporate an upscale hotel operation within the development.
For instance, Sonesta is the hotel operator at Trump International
Sonesta Beach Resort, and Rosewood Hotels & Resorts will manage
the boutique hotel at Aqualina. For unit owners, having a hotel
onsite means access to more personal services--think concierge,
housekeeping and room service--as well as resort facilities like
a fitness center, spa or multi-purpose pool deck.
From a design standpoint, architect Karp says he takes a different
approach to resort-oriented developments compared with strictly
residential projects. "In a resort, we want the units to
feel like a four-star hotel on the ocean with substantial amenities
throughout the property," he says. "This is usually
above and beyond what a lifestyle condominium may wish to offer."
The new wave of developers in Sunny Isles Beach has been largely
successful in attracting top resort companies to its projects.
Fortune International, for instance, recently signed London-based
Le Meridian to operate the hotel component at its first Sunny
Isles development, M Resort Residences, a condominium hotel with
units priced from the $300,000s to more than $800,000. In fact,
Fortune plans to change the name of the European style property
to Le Meridien Sunny Isles Beach Resort when the 210-unit development
is completed by December. Le Meridien will also include the newest
location of the elegant Bice restaurant, with indoor-outdoor dining
for 250 people.
Hilton is entering the Sunny Isles Beach market with Fantasy of
the Ocean, a 21-story full-service condo-hotel by Argentine developer
Enrique Soltanik's company, DSP Developments. Fantasy of the Ocean
will operate as a Hilton hotel, with 198 hotel suites that are
being sold fully furnished from $345,000 to $645,000. "Sunny
Isles has great potential and this project poses a sensible growth
opportunity for us, so we are very pleased to be here," says
Mike Williams. Hilton regional marketing director.
Lone notes that the arrival of all these high-quality "flags"
(hotel operators) signals the arrival of Sunny Isles Beach as
a luxury resort destination. "It's a really dramatic turnaround,"
he says. A decade ago, Sunny Isles Beach had about 41 lodging
properties with a total of 5,100 rooms. With the volume of redevelopment,
that number fell to about 2,500 rooms, but is already rebounding.
"We expect to wind up with about 4,000 rooms in just 14 properties,"
Lone says. "What's most important is the way these higher-end
properties will enhance the city's economy."
CONTINUING THE EVOLUTION
With more than a dozen new towers planned or under construction,
Sunny Isles Beach may be reaching its peak in terms of the volume
of new development. "Most of the properties on the ocean
that were under single ownership have been purchased for development
as high-rise condominiums," says Schulman, who has advised
several major developers over the years. "Now, there is a
significant movement to buy up units from older properties under
condominium ownership and convert them to high-rise projects."
That condo unit buy-out process may take several years. But after
the last of the older properties are purchased and demolished,
the era of new development on the oceanfront strip will come to
an end.
Nevertheless, Sunny
Isles Beach plans to continue its redevelopment momentum by revitalizing
its low-rise retail centers west of Collins Avenue and creating
a new mixed-use town center concept along Sunny Isles Boulevard
(163rd Street) that would be modeled after Boca Raton's Mizner
Park. "One of our top priorities is the new zoning for the
town center to encourage a redevelopment of that area," says
Edelcup. "We see this as a mix of retail, office and residential
space with an open pedestrian plaza."
To the north, the city's new zoning ordinance allows heights of
four to 19 stories along the inland side of Collins Avenue--a
step designed to create higher density retail, restaurant and
residential uses across the street from the oceanfront towers.
"The new residents and visitors coming into Sunny Isles Beach
would be able to walk across Collins Avenue and find shops that
enhance that high-end lifestyle," says Lone.
However, when it comes to attracting national retailers. Sunny
Isles Beach has a disadvantage. It lies midway between the Shops
of Bal Harbour and the Aventura Mall, both long-standing high-end
shopping destinations. "We think there's potential for a
lifestyle-retail development," says Weiner, whose company
owns Aventura Mall. "[But] it will be hard to get major tenants
to come to a site between the two regional centers."
On the residential side, more redevelopment may also occur along
the Intracoastal Waterway, where zoning allows residential condos
up to 15 stories high. "A lot of condo buyers actually prefer
the Intracoastal side because there's more activity below them,
and more things to see from their balconies at night," notes
Schulman.
Meanwhile, the city's single-family homes and condominiums continue
to increase in value, despite the volume of new construction,
according to Armando Diaz, president of Oceanview International
Realty. "We have seasonal buyers coming here from the Northeast,
and the Latin American countries," says Diaz. "There
are also a large volume of Russians buying here, and three of
our agents at our Sunny Isles Beach office have Russian backgrounds."
Perhaps the biggest challenge for Sunny Isles Beach will be retaining
its existing population base--mostly retirees with a large Jewish
contingent--while becoming a younger, more affluent city. It means
keeping Wolfie Cohen's Rascal House as the traditional heart of
the community, while building new parks and a school to accommodate
the fast-growing number of children.
But no one benefits more from the city's growth than potential
residents, according to Edelcup. Not only will the city have greater
revenue to provide services, but the new condominium towers, resorts
and restaurants add a new dimension to the city's quality of life.
Reflecting on the city's future, he says, "I believe we will
have the crown jewel in South Florida when we are finished."
RELATED ARTICLE: PLANS FOR THE FUTURE
WITH MOST OF THE BEACHFRONT SPOKEN FOR, THE NEXT AREA FOR RADICAL
CHANGE IS 163RD STREET
The extraordinary transformation of Sunny Isles Beach has mostly
taken place along the ocean. But the "gateway" to the
city from the mainland is the 163rd Street corridor, also known
as Sunny Isles Boulevard, now a collection of mostly rundown retail
storefronts. Plans by the city include creating a mixed-use town
center that would be modeled after Mizner Park in Boca Raton.
The center would include retail, office and residential space,
with an open pedestrian plaza. Dollars for the ambitious project
will be drawn from the city's enormous new tax base created by
the high-rises.
RELATED ARTICLE:
RETAIL, RETAIL
WITH ITS TRANSFORMED OCEANFRONT, SUNNY ISLES' NEXT CHALLENGE IS
TO UPGRADE, RETAIL
Located halfway between the Shops of Bal Harbour and the Aventura
Mall, both long-standing high-end shopping destinations, Sunny
Isles Beach has been at a disadvantage when it comes to attracting
national retailers. New zoning ordinances have been designed to
allow heights of four to 19 stories along he inland-side of Collins
Avenue (right), to create higher density retail, restaurant and
residential uses. The idea is to allow the new high-rise residents
to walk across the street and find shops that "enhance the
high-end lifestyle," says civic leader Bill Lone.
[ILLUSTRATION OMITTED]
RELATED ARTICLE: A CHANGING DEMOGRAPHIC
LONG THE LAND OF RETIREES AND MOTEL CUSTOMERS, SUNNY ISLES IS
UNDERGOING A RADICAL CHANGE IN ITS POPULATION
One of the big challenges for Sunny Isles Beach will be retaining
its existing population base--mostly retirees, with a large Jewish
contingent--while becoming a younger, more affluent city. It means
keeping Wolfie Cohen's Rascal House restaurant, while buidling
new parks and a school to accomodate the fast-growing number of
children. Overall the population has grown from around 15,000
in 2000 to about 17,000 today; in particular, the number of school-age
children has grown from around 400 to more than 1,500. This will
require a K-8 public or charter school by 2006 or 2007. The city
is also planning a new park with an enclosed gymnasium, basketball
court and rooms for arts and crafts. Overall, the population is
a unique ethnic mix, with 10 percent of Russian background, 6
percent Italian and 5 percent Polish.
[ILLUSTRATION OMITTED]
RELATED ARTICLE: SUNNY ISLES BEACH: THE FACTS
Population: 15,315 (year 2000); 17,000 (2004 estimate)
Males: 7,093 (46.3%), Females: 8,222 (53.7%)
* White Non-Hispanic (58.8%)
* Hispanic (36.6%)
* Other race (2.3%)
* Two or more races (2.3%)
* Black (2.0%)
(Total greater than 100% because Hispanics counted in other races)
Land area: 1.0 square miles
Zip code: 33160
Median resident age: 50.4 years
Median household income: $31,627 (year 2000)
Median house value: $298,400 (year 2000)
City website: www.sibfl.net
Factoid 1:
More than 250 Sunny Isles Beach residents are Holocaust survivors.
They were honored recently at a city-supported event held at Temple
B'nai Zion.
Factoid 2:
Sunny Isle Beach has one of the largest contingents of Russian
residents of any South Florida community. In addition to visitors
and part-time residents, nearly 10 percent of residents are of
Russian background. Sunny Isles Beach also has a large contingent
of Italians (almost 6 percent) and Poles (5 percent).
Sunny Isles Beach Tax Base
1997: $1.1 billion
2001: $1.6 billion
2002: $2.2 billion
2003: $2.7 billion
2008: $5.0 billion (projected)
Hottest Home Sales:
Exclusive Zip Code Analysis
UPDATED: 12:00 pm EST November 23, 2004
South Florida is one of the hottest real estate markets in the
country. And now, Bob Mayer has found which exact zip codes of
South Florida are the hottest.
With the help of
the Keyes Company, we commissioned an analysis of the Multiple
Listing Service. That's a database of home sales across South
Florida. Then, we ranked zip codes in four categories:
? The most properties sold
? The fewest days on the market
? The highest average price
? And the most gain in value.
Want to live in this hot zip code? Camp out! That's what people
did this month, waiting for these South Beach condos to go on
sale.
I asked, "Did you ever think that you would live to see the
day where people in South Florida would sleep on the street waiting
to buy a condo?"
"It's amazing. "It's the biggest boom in South Florida
since 1979, 1980."
Our analysis found that zip code 33139 -- South Beach -- sold
the most properties in the last 12 months. "We have primarily
locals buying in lower to middle tiers, and the out-of-towners
tend to buy the luxury apartments in South Beach,".
He warns, the demand for South Beach living is only going to increase.
Why? "Between June 2003 and June 2004, the amount of available
condos in Miami Beach decreased by fifty percent,". "Now
is the time to grab what's left."
Number two most sold? 33178 -- Doral/Miami.
Where are prices rising the most? Head east - not to Las Olas,
not to South Beach, but to this modest area in Broward County,
zip code 33009 Hallandale. Pappas said, "I think everybody
sees the Coral Gables, the Aventura, sees the high-priced markets,
the Pinecrest, the Las Olas, and they're looking for what I call
the next price tier jump."
Prices in Hallandale Beach are certainly jumping. This area went
up an average of nearly 50% per square foot in the last two years.
"People are looking for the older communities where there
is value," said Pappas.
The most expensive areas in our analysis? The waterfront mansions
of Las Olas area of Fort Lauderdale, and the green-covered homes
of Coconut Grove. Average price? About $600,000 to $700,000.
Where are homes selling the fastest? Zip code 33066 -- Coconut
Creek -- an average of only 33 days on the market.
Pappas says, it's because these homes are still affordable: "Five
years ago, 70% to 80% of the homes in South Florida were under
$250,000. Today, less than 25% are under $250,000 that are on
the market. So, through this appreciation, it's hard to find affordable
housing. And I think that may be an area that you can." For
example, we found two bedroom, two bath condos listed for only
$130,000.
Best zip code in overall combined ranking -- 33076 -- Coral Springs
and Parkland, just south of the Palm Beach border.
"It's just been incredible," said Helfman. "The
prices in this development started in about the mid-$100s, now
they are in the mid-$300s."
The price comes with lake views and a country-club lifestyle.
"You get the feeling of luxury with a little less price and
more for your money out in that marketplace,"
Tribes to push for full range of casino gambling
By John Holland
STAFF WRITER
Posted March 10 2005
Tuesday's vote approving slot machines gives the Seminole and
Miccosukee tribes unwelcome competition, but it also gives them
leverage in their push to bring not just slot machines, but craps,
blackjack and other Las Vegas-style gambling to their Florida
casinos.
Federal regulators
said Wednesday the state must now "negotiate in good faith''
with the tribes on a gaming agreement, called a compact, that
would allow expanded gambling in exchange for a chunk of the profits.
If Florida doesn't negotiate fairly, the Secretary of the Interior
could ultimately give approval for anyway, said Sean Pensoneau,
spokesman for the National Indian Gaming Commission.
Such a move is unprecedented, he said, since states usually reach
agreements.
"It's still
early, but the NIGC thinks that this greatly strengthens the tribes'
position that the state must negotiate a compact,'' Pensoneau
said. "If a class of gaming is available in the state, then
the tribes should be able to offer that class of gaming.''
The tribes and federal
government must wait to see how the state legislature crafts the
new law.
On Tuesday, Broward
County residents voted to allow slot machines at pari-mutuel tracks
in Dania Beach, Pompano Beach and Hallandale Beach, while Miami-Dade
voters rejected a similar measure.
The situation is
uncertain since only one county, Broward, approved the slots,
and because the vote didn't specify which level of slots would
be allowed. Class 2 machines currently in tribe casinos are based
on a bingo-style formula in which odds change as each number is
pulled.
The federal government
defines Class 3 games as having odds that remain constant, including
craps, blackjack, roulette and traditional slot machines.
"That's one
of the open items," Gov. Jeb Bush said on Wednesday. "There's
nothing in the initiatives that says we have to have Class 3 slots."
While Pensoneau said
any federal ruling would apply to all casinos run by the Seminoles
and the Miccosukee, Bush said that's not necessarily true.
"We still don't
have complete clarity. The Miccosukee Tribe gambling facility
is in Miami-Dade, and they didn't pass it, so I think we're on
new turf here,'' said Bush, who is staunchly opposed to gambling.
He also said that if legislators approve only Class 2 slots for
the pari-mutuels, the tribes may not be entitled to any changes.
Although slot machines
and craps are vastly different games, they are both considered
Class 3. The tribes argue that if one form of Class 3 is allowed,
they are entitled to all forms.
So far, only the
Miccosukee have approached Bush about the compact, and the governor
said the state will negotiate when the time comes.
"We have an obligation in law to begin negotiations for a
compact, but it's very hard to do that until we get all this settled,''
Bush said.
Miccosukee Chairman
Billy Cypress could not be reached for comment on Tuesday. Seminole
Tribal Councilor Max Osceola said the tribe has been trying to
reach a deal with the state for 15 years and will reopen negotiations
shortly.
"We still want
a compact, but I don't know whether this vote will help us or
hurt us,'' Osceola said. "Basically, we want to make a deal
that will make the state a partner and let them share the profits.''
In 1979, the Seminoles
became the first tribe in the country to open a high-stakes bingo
hall, overcoming several legal challenges by the state and former
Broward County Sheriff Bob Butterworth. The ruling said tribes
can offer the same level of gaming as states, equating state-run
lotteries with Indian bingo-style games.
Although tribes are
considered sovereign and free from state oversight or interference,
they still are accountable to federal law and courts.
Fearing Indian gaming
would become rampant, Congress in 1988 created the Indian Gaming
Act that forced tribes and states to negotiate compacts for table
games like craps, blackjack and roulette and traditional slot
machines. Bingo-style games did not need such approval.
Florida refused to
sign a compact and the Seminoles sued, arguing their rights were
violated. In 1996, the U.S. Supreme Court sided with Florida,
saying states, like all Indian tribes, are immune from unwanted
lawsuits.
The ruling didn't
hurt the Seminoles, who operate large bingo casinos in Hollywood,
Tampa and Coconut Creek, and lesser ones on the Brighton and Immokalee
Reservations near Lake Okeechobee. The Miccosukee operate a casino
and golf resort in Miami-Dade.
But the Seminoles
want to expand, and argue Tuesday's vote opens the door.
Although the Seminoles
can't sue in court, they can appeal to the Department of Interior,
which regulates Indian tribes. Osceola said the Seminoles will
not unilaterally install Class 3 slots or gaming, but plan to
file a petition with the federal government.
"We're not going
to just go out and do what we want, because that would be cutting
off our nose to spite our face,'' Osceola said. "There's
a process, and we'll follow it. But in the end, I think we'll
wind up with a Class 3 license.''
Staff Writer Mark
Hollis contributed to this report.
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