Miami

Pay Off

DDA director seeks larger severance package

By Ben Torter

The embattled director of Miami’s Downtown Development Authority won’t be leaving his post empty-handed. The only question is how fat a taxpayer-funded severance check he’ll be putting in his wallet.

Executive Director Dana Nottingham’s contract, effective until Dec. 31, calls for a minimum of a 10 months’ pay when he walks out the door. But he could get a lot more.

Nottingham, whose management of the DDA and the agency’s excessive spending was criticized in a report by the city’s auditor general, is paid about $220,000 per year with incentives and perks.

Last Friday was the second DDA board meeting dealing with transitioning the troubled agency after Nottingham. Nottingham, wearing a suit but no tie, kept quiet as board members revealed that he is negotiating a larger severance package. None of them openly criticized the extra money Nottingham wants, and the conversation seemed very guarded.

“The executive director and the board are negotiating a good faith package,” said Miami Commissioner Joe Sanchez, chairman of the DDA.

Assistant City Attorney Veronica Xiques, the DDA’s legal counsel, explained the three parts of Nottingham’s severance. The first is 10 months’ pay. Second is supplemental severance equal to about $42,000, which Nottingham isn’t automatically entitled to, but the severance board felt was fair, according to Xiques. Third is unrealized bonus potential that Nottingham figures is worth about $76,000. Plus he’s asking to be paid for his 27 accumulated vacation days, worth $12,500. Finally, he is asking for a retirement plan “shortfall” of $25,000.

It’s up to DDA board members Jay Solowsky, Loretta Cockrum and Alvin West to determine and recommend to the board what they think Nottingham deserves.

First, though, Nottingham is owed a performance review from June of last year. Without the review, which could result in a raise, the DDA technically isn’t complying with the contract.

“In order to get to the beginning of this process, we’ve got to honor the contract,” West said.

Board members Oscar Rodriguez, Rodrigo Trujillo and Jerome Hollo will conduct the review.

Much of the criticism against the DDA has revolved around excessive spending, detailed by Miami Auditor General Victor Igwe earlier this year. His audit showed bad accounting practices, expensive research trips around the world and bizarre purchases such as Apple iPods, supposedly to store computer data.

Symbolizing the DDA’s public perception problem are its $250,000 per year high-rise offices on the 29th floor of the swanky Wachovia Financial Center at 200 S. Biscayne Blvd., which afford incredible views of downtown Miami, cruise ships, Miami Beach and beyond. Commissioner Marc Sarnoff has often criticized the space as wasteful and inaccessible. He recommended to Sanchez that the DDA move to a storefront shared with the Community Redevelopment Agency and the Neighborhood Enhancement Team, to avoid overlap of responsibilities and save on rent.

Now Sarnoff may get his wish. Neisen Kasdin told fellow board members that the DDA might be able to move into a space in one of Macy’s downtown buildings for $1 per year. Kasdin heard about the possible rental agreement last week during a meeting to discuss immediate and long-term issues affecting downtown. Attendees included Miami Mayor Manny Diaz, City Manager Pete Hernandez, Police Chief John Timoney, Macy’s Florida Chair Julie Greiner and Macy’s Vice Chair David Shiner.

Last summer, Greiner slammed the DDA in a scathing speech on the decrepit, filthy state of downtown in which she questioned whether Macy’s employees were safe going to work and whether or not the store should even remain downtown. The $1-per-year offer appears to be a major about face.

It is contingent upon many factors, among them approval by Macy’s parent company, approval by the DDA board, whether the DDA can get out of its current office lease, how long the $1 per year can be arranged and the cost of building out the new space.

“There’s a lot of work to make this happen, but everyone would like to [do so],” Kasdin said. “Right now we’re in the process of settling things with Dana [Nottingham], and getting an interim director.” He said that interim person would likely be the one to work things out with Macy’s.

The next DDA board meeting will be held at 8:30 a.m. Feb. 15.

Comments? E-mail ben@miamisunpost.com