Moody's Downgrades Miami $35 Million ULT Notes To A1 From Aa3 And $235MM LT Notes To A3 From A2, Outlook Negative

And this is even without the BP oil getting caught in the loop current and washing on the private beach of the Delano. And yes, buy the MCDX.

Full report:

NEW YORK, Jul 1, 2010 -- Moody's Investors Service has assigned an A2
rating and negative outlook to
Miami's (FL) sale of $105 million Special Obligation Parking Revenue
Bonds,
Series 2010A ($87.6 million, Tax-Exempt) and Series 2010B ($17.4
million, Taxable) (Marlins Stadium Project). Concurrently, Moody's has
downgraded the city's $34.5 million General Obligation (ULT) bond rating
to A1
from Aa3 and the city's $234.5 million General Obligation Limited Tax
bond
rating to A3 from A2. In addition, a negative outlook has been assigned
to the
ULT and limited tax ratings. The limited tax bonds would likely require a
levy
of about 0.98 mills in fiscal 2011 (given expected tax base declines) in
relation to a maximum allowable levy of 1.218 mills. The tax base would
have to
decline about 27% further before one-time coverage of debt service.
Moody's has
also downgraded to A2 from A1 the rating, and assigned a negative
outlook, on
the city's outstanding $106 million rated non-ad valorem obligations
(including $68.6 million in loans issued through the Sunshine State
Governmental
Financing Commission) backed by the city's covenant pledge. The downward
rating
revisions reflect the city's continuing severely narrow financial
condition
exacerbated by uncontrolled pension increases and rapidly rising health
care
costs which have made the ability to adhere to established financial
principles
untenable. The ratings also incorporate the city's weakened, but still
sizable,
tax base, broad-based and regionally-important economy with favorable
long-term
recovery prospects and a moderate debt profile. The negative outlook
reflects
Moody's expectation that Miami's financial operations will remain
strained over
the medium-term horizon as the city grapples with reduced reserves and
budget
pressures while trying to implement a recovery plan. Ultimate long-term
credit standing is dependent on the ability of officials to
re-establish budgetary structural balance and restore reserves to
prescribed
policy levels in an adverse economic environment that impedes revenue
growth. Improvement of financial condition appears to require either
significant city cuts or infusion of one-time revenues or some
combination of
both.

The Special Obligation Parking Revenue Bonds are secured by the
city's portion
of convention development taxes (CDT) received from the county pursuant
to
interlocal agreement, 80% of the city's 15% parking surcharge fees
generated at
this parking facility, bulk sale revenue based on fees negotiated
between the
city and the stadium operator and the city's covenant to
budget-and-appropriate legally-available non-ad valorem revenue
(covenant
pledge). The rating is based on the expected moderate debt service
coverage
from specified pledged revenues and the very slow initial bond payout
with an
ascending debt service structure, but ultimate security lies with the
city's
covenant pledge. The expectation that the debt service will be paid from
specified pledged revenue without material dependence on non-ad valorem
funds is
an important rating factor given the city's weak financial condition.

Bond proceeds will be used to construct a maximum of 6,000 total
spaces (4
garages and refurbishing surface lots) for a new stadium being built for
the
Florida Marlins baseball team. Legal provisions include allowance for
completion
bonds of up to 10% of original bond par ($10.5 million) and a debt
service
reserve being funded with cash ($10 million). The flow of funds requires
that pledged revenue be deposited into the Sinking Fund only five days
prior to
a debt service payment date. Use of funds also includes $3.8 million of
capitalized interest.

The SEC has requested documents from the city pursuant to an
investigation related primarily to financial disclosure and transfer of
certain
funds. In addition, the city is a defendant in a whistle-blower suit and
a class
action suit. The potential outcome of any of these actions is unknown at
this
time.

VARIETY OF SPECIFIC PLEDGED REVENUES TO REPAY PARKING BONDS WITH
ULTIMATE SECURITY PROVIDED BY COVENANT PLEDGE

Bond security includes 80% of the 15% parking surcharge imposed by
the city and
generated at this parking facility, fixed amounts of the county's
convention
development tax (CDT) distributed to the city pursuant to an interlocal
agreement, and parking revenues from the stadium operator pursuant to a
parking
agreement. CDT revenues are expected to compose 36.1% of total pledged
revenue
in fiscal 2012 (66.4% at MADS in 2037), stadium operator revenues 54.1%
in
fiscal 2012 (45.7% in 2037) and the parking surcharge revenues 9.7% in
2012 (8.5% in 2037), based on growth assumptions or increases pursuant
to the
CDT interlocal agreement. The vulnerabilities associated with these
revenue
sources include: the availability, if any, in any given year of CDT
revenues
after the county pays its own debt and other related prior obligations;
generation of sufficient parking surcharge revenues; and potential
bankruptcy of
the stadium operator resulting in failure to honor its commitment. With
assumptions as presented, gross debt service coverage begins at about
1.23 times, increasing to a high of 1.34 times (2016 to 2020) before
declining
to about 1.21 times in the last 8 years of the maturity schedule
(excluding the
final year paid largely from the cash reserve). These vulnerabilities,
along
with narrow coverage and slow payout, place credit weight on the
covenant
pledge.

Although non-ad valorem funds provide the basis of support for the
assigned A1
rating, the city's continually-weakened financial position could be
exacerbated
if a significant amount of additional non-ad valorem funds would be
required to
repay this or other non-self-supporting obligations currently being paid
from
other sources. Available gross non-ad valorem revenue of approximately
$252.4 million ($213.1 million net of essential general government and
public
safety costs) in fiscal 2009 is significant in relation to the estimated
$42.5
million in maximum annual debt service (MADS) on all non-ad valorem
obligations
(including Sunshine State loans). In as much as available revenues are
also
utilized for operating purposes, the city's deteriorating financial
position lends little credit support to the bonds. Non-ad valorem funds
are an
important component supplementing property tax revenues used for basic
essential
general government and public safety expenditures, and are expected to
grow in
importance given the depressed economic environment and property tax
reform
which will restrict property tax revenue growth going forward. About
54.8% of
all covenant obligations (including the current issue) are repaid within
10
years and all obligations are scheduled for repayment within 30 years.
Debt
service requirements gradually decline from the $42.5 million peak in
fiscal 2014 to below $20 million by 2020 (through maturity in 2039). On
the
current offering, debt service increases from $6.5 million in 2011 to
$12
million in 2037 (bonds due in 2039).

FISCAL OPERATIONS CHARACTERIZED BY CONTINUING STRUCTURAL IMBALANCE
AND DETERIORATING RESERVES

Despite the implementation of financial and debt principles, recent
declines in
revenues associated with property tax reform and a struggling economy as
well as
rapidly-rising fixed costs have posed significant challenges in
maintaining
structural balance and adherence to financial policies. Resolution of
financial
difficulties appears to require either significant city cuts or infusion
of
one-time revenues or some combination of both. Since fiscal 2007 the
city has
consistently depleted reserves due to revenue shortfalls and
overspending.
In fiscal 2007, the city utilized $25.8 million of reserves due to the
settlement of a class action lawsuit filed against the city's
fire-rescue
assessment fee ($15 million) and settling its union contracts ($35
million). In
fiscal 2008 fund balance was reduced by another $6.9 million reduction,
due to
declines in major revenue sources including slippage of current property
tax
collection rates as well as increases in public safety and risk
management costs. Thus total General Fund balance declined to $93.6
million (17%
of revenues) and the undesignated balance was $44.6 million (8.1% of
G.F.
revenues). In fiscal 2009, despite making almost $35 million in cuts,
revenue
shortfalls and poor budgetary performance drove a $53.6 million
operating
deficit ($28.4 million represented by a return to capital). The deficit
reduced
total fund balance from $93.6 million in 2008 to $39.97 million
which represented about 9.5% of the total required 20% rolling
three-year
reserve policy level. Entering fiscal 2010, officials cut $118 million
by
reducing personnel costs (positions and salary reductions) of $64.8
million, reducing operating expenses by $10.3 million, reducing capital
and
non-operating expenses by $21.4 million and increasing overall
collections by
$21.5 million. Eight-month forecasts through May 2010 indicate a $20.8
million
imbalance thus far this year which will require officials to utilize
even more
of the remaining reserve.

Going forward, future budgets will continue to be significantly
challenged by
escalating pension and health care costs as well as projected increased
personnel and operating expense growth, the combination of which could
be
significant. Officials have projected that if nothing is done to adjust
the
budget, soaring pension, health care and salary increases will help
create
budget deficits of $99.6 million in fiscal 2011 and $143.8 million in
fiscal
2012, resulting in a negative $223.2 million fund balance at the end of
fiscal
2012. To date, efforts to achieve union concessions and the city's
resistance to
raise tax rates to at least partially offset valuation declines have
been
serious detriments to regaining financial integrity. Potential exists in
the
near term for significant city layoffs and service reductions.

Pursuant to fiscal policy, officials are required to present a
two-year recovery
plan to the city commission shortly to get fund balance back to
prescribed
levels. It is unlikely that the city could achieve structural balance
and
restore fund balance to prescribed levels within two years solely
through
revenue increases or expenditure cuts without dependence on one-time
revenues.
The city's ability to restore reserves to policy levels and maintain
budgetary
structural balance in an environment of rising fixed costs will dictate
ultimate
credit quality.

In addition, actuaries have identified the city's other post
employment benefit
liability (OPEB) pursuant to GASB 45, at a substantial $480 million as
of
October 1, 2006, with the ARC at $27.2 million, in relation to the
city's
funding only the pay-go portion of about $10 million annually. The city
is
looking at a variety of strategies for reducing the liability,
including changing to a defined contribution plan for retirees and
changing
the prescription drug plan design, and another valuation for fiscal 2010
is
being targeted. Also, double digit increases in health care costs has
prompted a
review of the city's health care plan. Resolving the spiraling increases
in
pension and health care costs is essential in the restoration of
structural
balance.

ECONOMY STRONGLY AFFECTED BY HOUSING CRISIS; LONG-TERM OUTLOOK
FAVORABLE

The city has been strongly affected by the residential housing
crisis, leading
to significant foreclosure activity, significant fall-off in
construction
activity and high unemployment. Foreclosed properties increased from 221
in 2007
to 806 in 2009, and were already at 743 for the first four months of
2010. As
the pace of foreclosures appears to be accelerating with increasing
vacant
inventory, housing values have declined precipitously. Median single
family home
values declined 48.6% from their 2007 highs of $380,100 to $195,300 in
2009 with
some minor recovery to $197,500 seen as of March 2010, while condominium
values
declined about 47.6% to $142,500 over the 2006 to 2009 period, with
continued decline to $138,800 seen as of March 2010. In addition, tax
certificate sales doubled between 2006 and 2009 to $62.1 million,
although they
produced $18.2 million in revenues to the city's General Fund in fiscal
2009.
Unemployment, at 12.5% in March 2010, is high relative to both the state
(12.0%)
and nation (10.2%).

The city did experience assessed value growth in fiscal 2009, albeit a
slight
1.6% increase, significantly below the 5-year average of 15.8%, driven
by the
slowdown in the real estate market and the effects of property tax
reform,
increasing assessed value to $39.7 billion ($57.7 billion full value). A
6.9%
taxable value decline in fiscal 2010 would have been more significant
were it
not for $3.7 billion of new construction coming on the tax roll that
year.
The preliminary estimate for fiscal 2011 indicates another tax base
decline of
about 15.5%. City estimates include additional tax base declines in the
next few
years.

The city is mature with population increasing only marginally (1%)
over the past
decade through the 2000 census, but about 14.0% since that time (to
413,201 in
2008) with redevelopment and new construction having brought more
residents into
the city. A majority of city residents are foreign-born, and the 2000
census
poverty level (28.5%) was more than twice that of the state (12.5%) and
nation
(12.4%). Unemployment, foreclosures and housing value declines will
continue to
weigh heavily on a poorer population base.

According to Moody's Economy.com (March 2010) the Miami (MIA) economy
will
emerge from recession more slowly and less vigorously because of its
outsize
exposure to a still-fractured housing market. The unemployment rate,
which will
peak near 13% at the end of the year, will not reach its equilibrium
rate of
6.5% until 2014. Long term, MIA's growing infrastructure, strong
international
trade ties, and stature as an attractive international tourism
destination will
allow it to outperform the nation.

MANAGEABLE DEBT POSITION TO ACCOMMODATE EXPECTED DEBT ISSUANCE

Direct net debt burden is a moderate 1.3% as a percent of total
valuation (1.9%
overall debt burden). The city's general obligation debt (limited and
unlimited
tax) retires at an average rate with rapid falloffs in debt service
requirements
after 2022 through maturity in 2029. Non-ad valorem obligations also pay
out at
an above average rate (54.5% within 10 years), allowing for future
financing
flexibility. The city has adopted a debt management policy which
considers
creditworthiness, security and payment of bond issues, covenants, and
ongoing
disclosure.

The city has a six-year, $1.1 billion capital program which is 47.9%
unfunded
($526.9 million) and 52.1% funded ($573.1 million). Upcoming borrowing
plans
include two tax increment district financings of undetermined amounts by
later
in 2010. The city's variable rate debt is represented by loans from the
Sunshine
State Financing Commission and is moderate at about 9.4% of total city
debt. The
city's debt structure includes no derivative products.

STATISTICS:

Security: The bonds are secured by the city's portion of Convention
Development
Taxes (CDT) received from the county pursuant to interlocal agreement,
80% of
the city's 15% parking surcharge fees generated at this facility and by
bulk
sale revenue based on fees negotiated between the city and the stadium
operator
pursuant to a parking agreement. Ultimate security provided by city's
covenant
to budget-and-appropriate legally-available non-ad valorem revenue.

Payout (all non-ad valorem including current offering),

10 years: 54.5%

20 years: 72.6%

30 years: 100%

FY 2009 Net Available Non-Ad Valorem Revenues: $213.1 million (net)

Estimated MADs on all Non-Ad Valorem Obligations: $42.5 million
(2014)

Total Non-Ad Valorem Obligations Outstanding (including current
offering):
$292.2 million

Debt Burden: 1.8%

Population (2008 census estimate): 413,201

Fiscal 2010 Full Value: $52.1 billion

Full Value, per capita: $126,202

FY 2010 Operating Tax Rate: $7.674 (compared to $10 limit)

Fiscal 2009 General Fund Balance: $39.97 million (7.7% of General
Fund revenues)

Fiscal 2009 Unreserved General Fund Balance: $24.85 million (4.8% of
General
Fund revenues)

Fiscal 2009 Undesignated General Fund Balance: None

City as % State (2000 census),

Per Capita Income: 70.2%

Median Family Income: 59.7%

Unemployment Rate (3/2010): 12.5% (12.0% FL and 10.2% U.S.)

RATING METHODOLOGIES USED AND LAST RATING ACTION TAKEN

Miami's Special Obligation Parking Revenue (Non-Ad Valorem) bond
rating was
assigned by evaluating factors believed to be relevant to the credit
profile of
the issuer such as i) the business risk and competitive position of the
issuer
versus others within its industry or sector, ii) the capital structure
and
financial risk of the issuer, iii) the projected performance of the
issuer over
the near to intermediate term, iv) the issuer's history of achieving
consistent
operating performance and meeting budget or financial plan goals, v) the
nature of the dedicated revenue stream pledged to the bonds, vi) the
debt service coverage provided by such revenue stream, vii) the legal
structure
that documents the revenue stream and the source of payment, and viii)
and the
issuer's management and governance structure related to payment. These
attributes were compared against other issuers both within and outside
of the
issuer's core peer group and the sales tax rating is believed to be
comparable
to ratings assigned to other issuers of similar credit risk.

The last rating action with respect to Miami was on April 8, 2010
when a
negative outlook on the city's A2 G.O. ULT, A3 G.O. LT and A3 non-ad
valorem
bonds was assigned based on the municipal scale. The ratings were
subsequently
recalibrated to Aa3, A2 and A1 respectively on April 23, 2010.

Outlook

The negative outlook reflects Moody's expectation that Miami's
financial operations will remain strained over the medium-term horizon
as the
city grapples with reduced reserves and budget pressures while trying to
implement a recovery plan. Ultimate long-term credit standing is
dependent on
the ability of officials to re-establish budgetary structural balance
and
restore reserves to prescribed policy levels in an adverse economic
environment
that impedes revenue growth. Improvement of financial condition appears
to
require either significant city cuts or infusion of one-time revenues or
some
combination of both.

WHAT COULD MAKE THE RATING GO UP:

- Restoration on structural budgetary balance and rebuilding of
reserves

- Economic stabilization and growth in major revenue sources

WHAT COULD MAKE THE RATING GO DOWN:

- The inability to restore structural balance and continued
deterioration of
reserves

- Deepening economic conditions affecting major revenue sources

Comments

[Sudden Debt]

Looks we'll get rerun's for CSI MIAMI soon...

[Rusty Shorts]

In the air tonight.

http://www.youtube.com/watch?v=b5C4N7UwVS4

[I need more asshats]

I'd rather see Dexter turn on the Cuban Mafia that runs this place.

[contrabandista13]

VIVA TONY MONTANA...!

[EB]

Fortunately, the furniture has already been moved into the pool.

[aint no fortuna...]

Its time for a new boss down there

http://www.youtube.com/watch?v=2W628Z9vspk

[Mako]

Moody's needs to put Earth on negative watch. 

This will be repeated thousands of times over until everything is marked down.

[svendthrift]

Avg family income is around 35k. Avg muni salary 70k. We'll have a nice new ballpark for a team nobody follows quite soon:

http://en.wikipedia.org/wiki/Marlins%27_ballpark#Financing

[Cognitive Dissonance]

I can remember 30 years ago when muni salaries were so poor that they juiced up the benefit and retirement packages in order to attract people to the open positions. Now, just when those hires are getting ready to retire.....SURPRISE.......the pension won't be there and the job may not be there either for long.

Sad, so sad.

[svendthrift]

http://www.miamiherald.com/2010/06/30/1709359/miami-beach-union-takes-ne...

With all the talk about hefty pensions weighing down Miami Beach's finances, one of the city's unions believes voters should take a seat at the negotiating table.

An anonymous mailer from the local chapter of the Communications Workers of America recently hit mailboxes, urging voters to sign a petition in order to create a November vote to cap the maximum value of a general employees' annual pension at $110,000.

The union says the cap would reduce fat pension payouts to well-paid city officials.

``How did it feel to have your tax dollars go to bail out Wall Streetexecutives?'' the mailer asks. ``It's happening to Miami Beach. The most powerful and highest paid employees are retiring wealthy, while the average city employee just hopes to have enough in retirement to stay afloat.''

The mailer also calls for the city to change its system so that general employees, like sanitation workers and department heads, receive a full pension only after 15 years of city employment, rather than the current five-year tipping point.

The two proposals would save close to $2 million next year and $60 million over the period it takes the city to fund current employees' pensions, according to the union, which took its numbers from a June report by city actuary J. Stephen Palmquist.

The proposals would cover not only CWA workers like city lifeguards and electricians, but also department heads, the city attorney and city manager. Police and firefighters, who are part of a seperate pension plan and have been the focus of much of the debate over whether pensions have grown too fat, would not be affected.

Richard McKinnon, president of the Miami Beach CWA chapter, said the union sent out the mailer and began robocalls after the city balked at the offer.

``I think what we're proposing is more in line with what the public's perception of pension reform should be,'' he said.

City administration has looked to cut costs this year and in the future through concessions, including ``pension reform,'' by the unions and unclassified employees.

Also see this:

http://www.miaminewtimes.com/2010-03-25/news/miami-beach-cops-are-paid-u...

I'm with Maynard:

http://www.youtube.com/watch?v=uCEeAn6_QJo

The oil spill will kill Miami. My spouse and I have made the final decision to leave because of it. Many of our peers will leave as soon as the oil touches South Beach. It's over for this city.

[Cognitive Dissonance]

svendthrift

Thank you for your years worth of contributions to the ZH community. We, the community members, appreciate it.

Happy One Year ZH Birthday

[svendthrift]

Ah! I didn't notice! One year... What could I have accomplished if not for reading ZH..

[Mako]

They believed the lie.  That is the sad part.  The same lie is used over and over. 

You can get about 60-80 years or a generation out of the lie until it collapses.

Those retirements never exist, it was a fiction. Ficition is another word for lie.

[Caviar Emptor]

Bait and switch. I asked myself cynically, many moons ago, how can ANY deferred compensation retirement scheme work? I don't think it can given the amount of time needed, the nature of markets and human nature

[Cognitive Dissonance]

It was clear by late last year that this republic would crumble from the inside out, with municipalities and states leading the way.

I had some clients call me over the past 6 months asking if it was time to buy municipal bonds. They were confused by my "No" answer. I told them to wait and see. This is only going to snowball.

[Ragnarok]

What about the dollar's role and it's possible removal of reserve status?  External, no?

[Cognitive Dissonance]

I fully agree with you that the dollar will play a big part in how this all plays out. But despite the effect we see from that dollar and the Federal Gvt, we really won't realize the impact the states and cities/counties have on our day to day life until they are greatly diminished. Then we'll look around and say "What the hell just happened?".

[Caviar Emptor]

Agree. I expect that's when the rubber hits the road: garbage piling up, fraying law enforcement, poor services, courts downsized....we're gonna hear lots of complaints. That part is like the '70s redux except it will play out in the West and sunbelt as well as the East

[cougar_w]

Here in San Jose, CA, the ox is in the well. City Council is sending surveys around asking what people are willing to do without. It's a bit scary to watch. Of course, having someone ask what you want to give up is just the start, they're priming the pump. The next time, they don't ask because you know it's coming. They just drop things on the floor.

That's when you know it's over, when things that were always there suddenly aren't there any more. When a building catches fire and it just burns, and then smolders for days, and nobody comes around to check on it. When you haven't seen a police cruiser for a month, anywhere. When a car hits a tree on your block and remains there rusting all winter with a homeless guy living in the back seat.

[Cognitive Dissonance]

"When a car hits a tree on your block and remains there rusting all winter with a homeless guy living in the back seat."

As long as I can continue to hijack the unsecured wifi from the houses around me so that I can still post on ZH I can last years back here. Though it is beginning to smell somewhat. Now where are those nose plugs? :>)

[centerline]

Yup.  This is going to be like one of those CHIPs multi-car pile-ups happening in slow motion.  The math is right out in the open.  There simply isn't anywhere to run.  The chickens are coming home to roost.  Places like Miami partied for years on the back of massive debt-fueled expansion.  The hangover has yet to be realized in any significant way.

[papaswamp]

I think ZH should run a 50/50 pool on the first major city to default. That way they can continue to feed their wonderful new servers, have a martini party and the winner gets the other 50%.

[Not Sure]

Harrisburg, Pa. is in motion.

[traderjoe]

The train-wreck that is state and local finances is gathering steam. This will all end very badly. 

[John McCloy]

And this is what begins to make Lehman 2008 look tame.

What happens when those who have had jobs for decades driving buses, punching tickets, walking beats, cleaning up trash in the park are without jobs because of municipal layoffs. How good are corporate profits going to be then? A services economy is a myth. You still need manufacturing. Did these bozos really think that the U.S. could be the white collar shell movers of the world? Evidently they did.

   What good is a finance job on Wall Street when all they have done is create salaries that are reliant upon taxpayer fraud and have now alientated themselves from the globe because of their lack of honesty. We need a Wall Street but one that has fiduciary responsibilities to help the ACTUAL PRODUCTIVE ECONOMY that lack financial sophistication on how best to store their nest egg. Instead we have the opposite. First it breaks my heart to see all those people who are about to be blindsided because our politicans have refused take actions and then I get angry because the pols are complicit and then I revel in the masses finally have no choice but to be awoken out of the dream.

[Not Sure]

"What good is a finance job on Wall Street when all they have done is create salaries that are reliant upon taxpayer fraud and have now alientated themselves from the globe because of their lack of honesty."

Try finding a steady run of purchasers for LTC policies. Our market of "good old middle class" earners is shrinking fast. So, what good is a retail fire job?

[DeweyLeon]

Before the local/state gov.s finally capitulate they will come after their citizens' hammer and tongs.  Fees, taxes, penalties you name it, it's coming.

[Rusty Shorts]

LOL, they're already doing that here, throwing everything at us. Funny thing is, the small town, er, "city" as they like to call it, borrowed 1.3 million from the Fed last winter to buy Natural Gas, well, the city got the money, but they didn't buy NG with the money, they spent it on god knows what thinking it would be no problem paying loan back...well, it came due, and the city realized much to its on chagrin, that it didn't have the funds to pay not even a fraction of the loan...by and by the Fed came to town and audited the books, they weren't happy...they threatened to relieve the entire city gov. and replace them with Fed agents, the city was forced to liquidate city assets to cover the loan, much to my pleasure!!!

[centerline]

Florida drooling over BP oil-spill funds.  Have a feeling that most of the funds that reach Florida won't go where they are intended.  This is about as predictable as the sun coming up tomorrow.  

[Not Sure]

+1

[fsudirectory]

All will be fixed once Wade, LeBron and Bosh/Amare/Boozer end up in Downtown Miami (not South Beach as the TV heads love to claim).

Those dudes come here, these condo's get full. There is a beautiful tower directly across from the Stadium that is probably 10% occupied right now. It's so bad that they sell game parking at it.

[svendthrift]

Those condo's are too expensive. They will fill when the prices drop.

[centerline]

As government housing!

[fsudirectory]

The Biscayne side of Downtown still has a ways to go and thats why those over there arent filling up.

If you walk around down there at night you would be much more concerned than just 1 mile away on Brickell, where condos have managed to hold their values pretty well (compared to the rest of the city) because its slightly safer and has more entertainment. If you want to go to a basketball game, you can take the mover for free/20 minutes and be able to walk places worth going out.

Certain towers are very full and some ... well just are vacant.

[cowdiddly]

And as the crime rate skyrockets as the unemployed turn to crime the city is forced to cut the police force.  PB the new AU. ahhhh  those crazy alchemists. 

[Mactheknife]

>while trying to implement a recovery plan.

Well there's a problem. Idiots need to be trying to implement a SURVIVAL plan.

[Hephasteus]

But I thought Miami was going to get bailed out by BP. Or is that just another broke company backstopping broke state until broke IMF can come in and bail it out by borrowing from broke countries.

LOL debt based economics is funny.

[ptoemmes]

As a native of Miami and still living within 50 miles, the Delano is on Miami Beach which is legally different than Miami and different is so many more ways.

Now, they are both in Miami-Dade County which may be as much in the crapper as Miami but Heat Fans have lately come to call it Miami-Wade County.  Brother, can you finance another NBA Championship?

So, the "beautiful people" in South (Miami) Beach may still have a respite until the tar balls cometh.

Pete

[Cognitive Dissonance]

ptoemmes

Happy One Year ZH Birthday

Thank you for your contributions to the ZH community over the past year. It is appreciated. It's what makes a community an active and interesting community.

[George Costanza]

Muni Bond holders are going to have to take restructing/default haircuts.  The unthinkable will occur, despite the perceptions that Munis are ultra safe, they are not.

[DoctoRx]

And to followup on PTOEMMES 10:44 AM, the Delano has no private beach.  All beaches on Miami Beach are public, and in general that is the rule in all of Florida.  Just saying . . .

Tar ball, bitchez?

[herry]

Certainly a lot of details like that to take into consideration. Thanks windows vps | cheap vps | cheap hosting | forex vps