Showing posts with label The Stronach Group. Show all posts
Showing posts with label The Stronach Group. Show all posts

Friday, December 16, 2011

Despite the MILLION$ at stake, Hallandale Beach City Comm. DOESN'T do simple due diligence, but DOES cave-in to Forest City/Village at Gulfstream Park

Above, artist rendering of The Village at Gulfstream Park retail project, and, below, the sign as posted in May of 2008 and seen on U.S.-1, with the Gulfstream Park Racetrack grandstand in the distance. May 2008 photo by South Beach Hoosier.


The letter below was sent to the Hallandale Beach City Commission and City Manager Mark A. Antonio on Wednesday the 14th, prior to their 5 p.m. City Comm. meeting, and was written and signed by myself and my friend, Hallandale Beach civic activist Csaba Kulin, who will be making some news of his own next week.

For you readers out in the blogosphere, wherever you are, it's a bit of a follow-up to my post yesterday about the efforts of the folks at The Village at Gulfstream Park and their parent, Forest City to get out of complying with the mitigation requirements that were placed on them in order to get the city and Broward County to sign-off and give their final approval for the Village project many years ago.

That post was titled, No surprise given what I've told you here: A "challenging retail leasing environment" at Village at Gulfstream Park according to Forest City's execs

That vote by the city was prior to Keith London, Anthony A. Sanders and Alexander Lewy were elected to the HB City Commission.

Along with their various hired guns and minions, they showed-up for the December 7th HB City Commission meeting determined to persuade the Commission that they should modify those requirements thru amendments.

#12 A. A Resolution of the City of Hallandale Beach, Florida, Accepting Amendments to the Village at Gulfstream Park Plat ( This Resolution is a result of Application# 10-12-PR by Gulfstream Racing Association, Inc.) (Staff: Development Services)(See Backup) CAD#029/04 (Staff Report, Supporting Docs)


The City Commission, in my opinion, operating largely out of woeful ignorance -even more than usual- caved-in and made some terrible decisions that night that most citizen taxpayers of HB STILL know nothing about, all these days later, given that ZERO members of the South Florida news media bothered to attend the meeting, which as you regular readers of this blog know, is NOT exactly a new trend in general in terms of covering local government.

That's particularly true in HB, where the city remains one of the area's perennial laughingstocks in the media due to what its elected officials and administrators have actually said and done over the recent past, much of that due to the buffoonish and jaw-dropping antics of former HB Commissioner and 2012 candidate William "Bill" Julian.

Trust me, well-informed and attentive news reporters and columnists are as rare around Hallandale Beach as Three Wise Men and a Virgin -at any time of the year.

This news media blackout came despite the fact that they were talking about well over $10 Million in changes, not to mention, a change in sound public policy to... what exactly?
The City Commission vote was 5-0.

The Broward County Commission is the ultimate authority on whether or not these modifications desired by Forest City and the Village will be made, and next week, I hope to find out when their public meeting will be scheduled in the new year so that I can mention it here and make sure that everyone is aware of the fact that this is NOT a DONE DEAL.

I also should let you know now that as of today, it's my plan to post this same letter in the next few days with some accompanying photos documenting what Csaba and I have written, so that those of you far from these sub-tropical shores can see for yourself how completely inept and inattentive the folks running things on both sides of U.S.-1 were and remain.

So, all that said, this is what was actually sent to the HB City Commission and City Manager on Wednesday:

Honorable Mayor, Vice Mayor, City Commissioners:


Christmas came early this year for Forest Cities, Gulfsteam Park Race Track & Casino and the Village at Gulfstream Park, LLC.
Under the Christmas tree were at least three gifts worth about $17 Million, collectively, courtesy of the citizen taxpayers of Hallandale Beach, delivered by you, our elected City Commission.
This action comes after an approximately $15 Million gift/loan under TIF about two years ago.
As is so often the case with important issues at Hallandale Beach City Hall, the debate and then votes on the issue took place just before Midnight, when most HB citizen taxpayers were fast asleep.

Why no continuance to a reasonable time?

The City entered into what both parties agreed at the time was a reasonable Development Agreement (DA) about six years ago, and the Developer, eager to get started on the project, agreed to it, anxious to change the dynamic and image of the property make it a destination attraction.
Now, six years later, the Developer wants to renegotiate the uncompleted portions of the DA, claiming changed economic conditions.

While we all want the property to succeed and become a source of both pride and profits, our primary concerns today in writing are that Hallandale Beach taxpayers' best interests are protected, and believe that should be your paramount concern, too.
Simply put, you have completely dropped the ball.

The Developer’s main argument for modification now has been that “economic times” have changed since 2007.
While we agree that the economy is not one that any of us likes, your answer in response to them should have been that, as a starter, to be one of modification based on revisiting these issues 5-10 years from now, with time-certain dates for doing so.

Economic activity and spending may indeed be much better in the future than currently, and then those requirements could be re-examined for their suitability, but simply waving the white flag NOW is NOT a strategy that best represents the short-term and long-term financial and Quality-of-Life interests of Hallandale Beach taxpayers.

For the record, we came up with the $17 Million size of gift by using your own consultant, Mr. Paul Lambert’s number for the Transportation Mitigation relief portion.
For the Affordable Housing relief, we have used our own recent experience with Highland Park Village (HPV), Mayor Cooper’s estimate of the expected subsidies needed to sell the units in HPV, and Paul Lambert’s own admission that $50,000 per unit is closer to reality than VGP’s offered $5,000 per unit.

A developer is obligated to have 15% of the total units to be built be “affordable/workforce” housing units.
While developers traditionally try to have some or all the affordable housing units located off-site, we believe these units should be dispersed among the rest of the 85%, not displaced west of the Mississippi River.
This is a community, not an Indian Reservation.

Additionally, we believe that the amount of money offered ought to be the price difference between a market-priced unit and an affordable/workforce-priced unit.
Based on the City’s recent experience with Highland Park Village, we know that it will take $50,000 dollars or more to make a market-price unit an affordable and desirable housing unit.
You can use the same logic for the other two properties the City owns to come up with the dollar amount needed to complete.
The cost per unit subsidy ought to be very similar to HPV.

After all, what good are units that nobody wants?

Based on these calculations for the 225 affordable/workforce housing units the VGP is obligated to build over time, the City’s CRA should have received roughly $11,250,00 (at $50,000 per-unit), not the measly $1,125.000, ($5,000 per-unit) that you all agreed to last Wednesday night.
That is a $10,045,00 gift to the Developers, money that more appropriately should be going to the City’s CRA at some definite time in the future, as the 1,500 housing units were actually built and ready for purchase.

It was extremely distressing to city taxpayers that on such an important issue, some of you were and are remarkably uninformed about the facts, and the $5,000 contribution per-unit mentioned by Broward County toward affordable housing.
We firmly believe that financial number is the “floor,” NOT the “ceiling” for contributions.

We are quite confident that Broward County would NOT object if the Developers were prepared to contribute $50,000 dollars per unit to the City's CRA, an opinion that we will soon be sharing with the Broward County Commissioners and staff as they deal with this subject, too.

The elimination of the off-site 500-car parking garage saves the Developer $5,000,000, and while we agree that such a garage is not needed at present, absent requirements that this issue be revisited at some definite point in time in the future, how do we know what the situation and need will be five or ten years from now? This is the very definition of short-sighted and self-defeating.

As best we can figure, the elimination of the Tri-Rail shuttle service saves the Developer $200,000-$250,000 per year.
While it may or may not be needed at this time, why agree to give it up entirely at this time, not knowing the future demand?

And more to the point of your collective oversight and accountability, or rather the lack of it on Wednesday night, where is ANY PROOF that the general public even knows about the Tri-Rail shuttle, as there is no posted schedule anywhere at the Super-Stop, and there is NOTHING in their newspaper promotions which specifically mention it.
NONE of you seem to have actually visited the Super-Stop, despite how close it is to your office, one block away.

In fact, many of not most of their own employees DON'T even know about it, including the security personnel who patrol that particular area, as recent conversations we've had with them have proven time-and-again.
They didn't know what we were talking about!

You can hardly expect unaware consumers to use a so-called service that the Developer themselves adamantly refuse to properly promote or feature, and you should wonder yourselves why they have done this if they really want to increase their number of visitors.
They seem entirely oblivious to this -and so do you.

And what do HB taxpayers receive in return for giving up these two major Transportation mitigation requirements?
Well, we get to relocate the City's mini-bus stop from behind City Hall to the Super-Stop.
What a deal!

If the Developer was truly interested in increasing the visitors to their property, that should have been done for free to the residents as soon as the Super-Stop was completed in January of 2010.
There should have been a little ribbon-cutting ceremony, but instead, that aspect of the mitigation was NOT completed on time -in time for the beginning of the racing season- as were many of the adjoining areas, and we have photographic proof of the Developer's inability to meet reasonable deadlines. Among other things...

And yes, that would be the same bus Super-Stop that has never really been properly maintained by the Developer the past two years, as anyone who uses it regularly could tell you.

What could possibly explain your collective failure -and that of the City Manager and his staff- to stay on top of such a simple thing, located only one block from City Hall?
There's really no excuse.

We remain profoundly disappointed in the way that this entire matter has been negotiated, presented to the citizen taxpayers of this city, and resolved -near Midnight.

We are quite confident that Broward County's Commissioners and their professional staff will take a much more nuanced look at the facts on-the-ground in determining whether or not this change is appropriate and in the community's best long-term interests, or whether it would be more appropriately revisited at agreed-upon time-certain dates in the future.

You can rest assured that this issue and the way that it has been mis-handled by you and the City Manager's staff, will NOT fade away in the coming months.
Quite to the contrary, it will be a subject that ever more residents of this city will become angry about as they learn the true facts of your White Flag strategy.

Thursday, December 15, 2011

No surprise given what I've told you here: A "challenging retail leasing environment" at Village at Gulfstream Park according to Forest City's execs

Above, entrance to Gulfstream Park Race Track & Casino and The Village at Gulfstream Park retail complex on Hallandale Beach Blvd., Hallandale Beach, FL.
December 7, 2011 photo by South Beach Hoosier.

Many of you who are regular readers of this blog have no doubt wondered why I haven't yet taken the opportunity to write anything about the recent 'Opening' two weeks ago of the new season of racing at Gulfstream Park Race Track & Casino, as well as comment on what I've heard and observed of late there and with The Village at Gulfstream Park retail complex, and their parent, real estate developer Forest City.
I know this because you've contacted me to ask as much.

I have quite a lot to say, actually, and have been sitting on some troubling information for a bit, waiting for some more shoes to fall, even while I've already attended a few hours worth of races the past two weeks.

Mostly, though, I've been patiently biding my time waiting to see what actually transpires at Hallandale Beach City Hall -directly across the street from the racetrack and the retail complex- where the developer and their myriad minions and flacks, along with other interested parties, have, unfortunately, tried to use the current sour U.S. economy like a cudgel against the best long-term financial and Quality-of-Life interests of the HB community.

These well-paid forces have tried their best to persuade the elected City Commission to waive or modify mitigation requirements the city and Broward County required them to agree to in writing in exchange for the developer getting their desired final approval for the giant retail complex, as well as their long-term housing plans for lots of pricey condos on the HB side of the property.

(Property which, lest you forget, also extends south into the City of Aventura and Miami-Dade County, where the powers-that-be keep the entrance/exit on N.E. 213th Street closed with barricades. The adjoining sidewalk entrance onto the property is STILL full of dangerous potholes and loose wires as they have been for YEARS. And did I mention yet that it was STILL the very picture of pitch-black at night, as it has been for -wait for it- YEARS?
That area is a litigation disaster waiting to happen, but STILL they do nothing.)

I'll have more to say about all of that over the next few days, but until then, please mull over the following news directly from the mouths of the upper echelons of developer Forest City.

The following is an excerpt from an email I sent out on December 9th:

Highlight of Forest City Enterprises CEO Discusses Q3 2011 Results - Earnings Call Transcript



Let me take a moment to address the other primary impairment, the Village at Gulfstream Park and Hallandale Beach, Florida, where we recognized a $34.6 million impairment in the third quarter. The lease up of Gulfstream began during the death of the recent recession and has continued through what remains a challenging retail leasing environment, particularly for new properties.

Our house wares, home furnishings and restaurants at the Gulfstream have done well, but our fashion tenants have struggled and we are actively working to remerchandize the center to match the demands of the market. Repositioning that component of the center will require additional investment. Also the original construction loan for this equity method property matures in September of next year. The uncertainty of the repositioning, together with the standard of the loan required us to impair our investment.

Long term we continue to believe in the strength of the market and will focus on repositioning the asset to meet the needs of the market. We also have additional future entitlements at the site that we can activate when economic conditions and the performance of the center improve.

Well-informed people I know tell me that many of the owners of the struggling retailers at the Village are already taling about fleeing toute-de-suite in the coming months when their rents get jacked-up in the new year as their current leases end.
And you thought the Dolphins and the City of Hallandale Beach were badly mis-managed...

One last thing to consider: despite their millions and resources, do you know what Magna Entertainment/Gulfstream Park has actually told the residents and business owners of Hallandale Beach about their intentions for having at least some night racing next year -which I support in theory- since I last wrote about the subject here on the blog?
NOTHING.
Nothing at all.

They still send their PR rep, Suzanne Friedman, across the street to HB City Commission meetings once in a while to paint an optimistic portrait of the doings on the east side of the street, but in her defense, she is NOT empowered by top management to actually level with everyone here about the truth of the matter.
So what's the plan?
What's the plan?

Well, they won't say, despite the fact that it would have a tangible -maybe even severe- effect on the ability of HB residents to actually get around and navigate thru the city at night on the evenings racing takes place, given that there is only one street in the entire city that has east-west capability throughout most of the city -over-loaded Hallandale Beach Blvd.

Yes, the street that is the north-side entrance and exit for Gulfstream Park and the Village, right next to the sign at the top of this post.

But then Magna Entertainment is STILL having problems launching their new website, which was supposed to already be up and running: http://www.stronachgroup.com/
As of today, December 15th, it still reads, "Site Launch Fall 2011."

Well, facts are facts and Winter officially starts one week from today.
Draw your own conclusions.

Thursday, September 1, 2011

More posts are forthcoming about what a mess Magna & Forest City have made of Gulfstream Park & The Village of Gulfstream Park in Hallandale Beach

Above, the U.S.-1 & S.E. 3rd Street entrance to Gulfstream Park Race Track & Casino and The Village at Gulfstream Park retail complex, Hallandale Beach, Florida. August 13, 2011 photo by South Beach Hoosier.

In response to all the MANY curious emails I've received since the horse racing season closed here in the Spring, from both overseas readers of the blog as well as ones here in South Florida and environs, yes, there will be more blog posts here in the coming weeks about what a mess I believe Magna Entertainment (MEC)/The Stronach Group & Forest City have made of the opportunity they had with Gulfstream Park Race Track & Casino and The Village of Gulfstream Park retail complex.
Not that there was ever any doubt about my doing more posts on them, but...

Above, the U.S.-1 & S.E. 7th Street entrance to The Village at Gulfstream Park retail complex, Hallandale Beach, Florida.Hmm-m-m... is an upscale, outdoor shopping center in South Florida during the oppressively humid summer swelter of South Florida as hot or as wet as you can imagine? Yes. "And yet they built it that way on purpose?" Yes, again.
August 13, 2011 photo by South Beach Hoosier.

I must admit that I'm continually surprised at how many people living quite a distance from me and the facilities in Hallandale Beach ask about how the facilities are doing; are they getting any better/worse?; and are there any known plans to make some drastic changes there that will make it more appealing to consumers.
Yes, lots of disappointed people that, like me, want the facilities to succeed, but are dumbstruck at how very poorly things have been planned and manged thus far.

Here's a hint: Meet the new boss, same as the old boss...
If you thought the new crew would usher in a new era of common sense AND smart, savvy strategic marketing -or even JUST common sense- you are very much mistaken.
Not that you would know that from the paucity of South Florida's news media's coverage of Gulfstream Park.

As my friends and colleagues in the area know, I genuinely want the facilities to succeed, really I do, since it's better for everyone in the community if the facilities offer a good entertainment value for the dollar, one that that the public enjoys and is willing to spread through positive word-of-mouth advertising, the best kind there is for what they're offering up.

But just because I'm on record with wanting the facilities to succeed -NOT necessarily the not-too-bright corporate principals behind it- is no reason why I should avert my eyes from what's right in front of me.
What anyone paying close attention to details -and in particular, details that matter- and which positively or negatively affect consumer behavior and psychology would notice and remark upon.
In this case, it's NOT in a positive way.


Above, the Hallandale Beach Blvd. & S.E. 10th Avenue entrance to Gulfstream Park Race Track & Casino and The Village of Gulfstream Park retail complex, Hallandale Beach, Florida. Storm clouds are brewing in more ways than one. (And do you see what I do?)
August 13, 2011 photo by South Beach Hoosier.

Seriously, at times, to use a perhaps over-used metaphor here on the blog, they're like a dog chasing its tail.
Sort of funny at first before you grow tired of the one-act nature of the comedy that ends with a whimper instead of a happy ending.

Here's a quick bit of free advice: Instead of worrying about extending the hours that certain of the bars in the complex can serve alcohol -the subject of last week's Hallandale Beach Planning & Zoning Advisory Board meeting, which I blew-off attending- so they can continue serving until 6 a.m., how about giving normal consumers, non-bar flies, some fun and reasonable entertainment choices on weekdays between 6 & 10 p.m.
Is that really too much to ask?

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