It
wasn’t $30 million. It wasn’t $40 million. It wasn’t $60
million. It was $15.5 million.
That was the amount
the city of Miami and lawyers representing 80,000 or so
property owners decided on last Thursday as the refund
for an ancient fire fee. And all we here at the
SunPost have to say is: Was that so hard?
The fire-fee saga
could have been over years ago if Miami officials had
negotiated a proper fire-fee refund. A local court ruled
in 2004 that Miami’s fire fee was unconstitutional.
Instead it turned out that a settlement of $7 million
was offered to a handful of individuals and their
lawyer. When the media found out, Miami’s leaders
reacted as politicians often do — by pointing the finger
at other people and expressing shock and indignation.
Finger-pointing may help avoid punishment from the
people at large, but it completely erodes trust in
government. Worse, if the blunder had not been caught,
besides seven dubious individuals getting richer (most
have been ordered to pay the amount back), the city of
Miami could have been liable for an even higher refund
demand.
The fire-fee scandal
helped push then-City Manager Joe Arriola out of office.
It also severely tarnished Miami Mayor Manny Diaz’s
reputation. Prior to the fire-fee scandal, Diaz was
Miami’s golden boy. Sure, there were those who
criticized his methods and his stance that more
development would be good for Miami. But there was
little doubt then in Diaz’s sincerity, and the mayor was
hailed for bringing economic revitalization to the Magic
City. The fire-fee scandal changed all that. It has made
Miami’s citizens and local press corps cynical of Diaz’s
leadership.
It’s a valuable
lesson for the mayor. He was, at that point in time,
distracted by various schemes to bring more development
to Miami: Midtown Miami, a baseball stadium, a hotel
project on Watson Island, a trolley car along the
Biscayne corridor, Museum Park, the selling and
redeveloping of the Miami Arena and possibly even the
Gusman Center, an FTAA headquarters somewhere in the
Magic City. All these ideas and others distracted Diaz
and upper leadership from long-festering problems. The
enactment of the fire fee was not Diaz’s fault — that
was started by previous mayor Joe Carollo as a desperate
measure to eliminate a $65 million deficit — but the
fire-fee problem was Diaz’s responsibility to solve.
Instead, it was passed on to underlings to dispense with
as quickly as possible so as not to jeopardize the
economic-building engine.
Miami’s neglectful
leadership is also evident in the scandal involving The
Firm, in which basically the entire capital improvements
section figured, “What the heck, no one is really paying
attention to whether we are working on projects the city
taxpayers paid for anyway. Why not just hire ourselves
out to private developers on city time and make extra
bucks?” Again, probably a condition that pre-dated
Diaz’s administration (many of those implicated have
worked for the city for more than a decade), but the
priorities of the leadership allowed it to fester.
That may be one of
the positive benefits of the real estate market
slow-down: It is giving Diaz and co. a reason to take
care of serving the needs of its residents and
businesses. Indeed, we have to say, so far, the hiring
of City Manager Pete Hernandez is one of the best moves
Diaz has made. Soft-spoken, Hernandez has been focused
on getting Miami’s house in order. It’s about time.
And so, with the
hopes that Miami’s leadership may be entering a new era,
here’s a suggestion. Unlike every other municipality in
the state of Florida and in Miami-Dade County itself,
Miami has dodged a bullet — thanks to its status as
being one of the most impoverished cities in the United
States, it won’t be hit with Tallahassee’s mandated
property tax cuts. An opportunity here would be to give
Miami’s property owners, both homesteaded as well as
commercial, some tax relief in the form of lowered
millage. Why commercial? Apartment buildings are
considered commercial property. Higher tax assessments
equal higher rents and that equals more working-class
individuals and families being forced out of the Magic
City.
Prior to a scandal
surrounding the city’s ex-public housing czar, Barbara
Gomez, and a series of Miami Herald articles
revealing the numerous housing projects that are still
incomplete, Diaz was touting his city’s commitment to
providing housing for Miami’s poorer residents. But why
depend on subsidized projects that may go bad? Why not
give some tax relief to private apartment building
owners who make a commitment to offering affordable
rents — and not convert to condominiums when the real
estate market turns around.
And then there are
the homesteaded property owners. Wouldn’t it be
wonderful if Miami’s elected officials provided them
some tax relief, no matter how modest, as a token of
appreciation and humility to their bosses, the taxpayers
of Miami?
Making it happen will take some number-crunching and
tough decisions, and it would be nice if Miami’s leaders
were to start working on that before leaders in
Tallahassee (who have already lamented their mistake in
exempting Miami) do it for them. After all, $15.5
million divided among 80,000 is a mere pittance.