On the 10th of February, the Miami-Dade District held
its monthly luncheon at Morton’s Steakhouse in Coral Gables. The topic was “Environmentalism
and Commercial Real Estate.” Michael Goldstein, Esq., Managing Partner at The
Goldstein Environmental Law Firm, gave the first presentation: An Environmental
Primer to Help CCIMs Successfully Navigate Contaminated Land Transactions in
South Florida.
Historically, contaminated land has been a problem for buyer
/ sellers and to finance. It was considered not only an environmental problem,
but also a business problem. Banks would not lend, thus deals would not close.
But Mr. Goldstein explained how contaminated land is not a problem but rather
an opportunity for investors, developers, and government to cooperate.
One of the earliest brownfield (land with environmental
issues) projects in Miami-Dade County was AMD Codina Beacon Lakes- NW 117TH
AVE and NW 25TH street. It was a massive illegal landfill site,
contaminated with petroleum hydrocarbons and arsenic. Through State Liability
Protection and Voluntary Cleanup Tax Credits, the site was redeveloped into an
office warehouse park.
Mr. Goldstein debunked several myths concerning contaminated
land:
-
Myth: It is impossible to transact contaminated
land in Miami-Dade County.
-
Fact: Goldstein Environmental Law firm supported
over 100 such transactions in 2016.
-
Myth: You can’t get financing on contaminated
land.
Fact: Lenders routinely lend on
contaminated land of all kinds.
-
Myth: You can’t insure contaminated land.
-
Fact: The marketplace is awash with
environmental insurance.
State and Federal governments are subsidizing cleanup costs
for these development projects, which represents a wonderful opportunity for
investors.
The second talk was given by Wayne M. Pathman. He is managing partner of Miami-based Pathman Lewis. He is one of Florida’s
distinguished lawyers with more than 30 years’ experience. Mr. Pathman heads
the firm’s Land Use, Zoning, and Environmental Law Section. He is the Chair of
the City of Miami’s Sea Level Rise Committee and the Chair of the Miami Beach
Chamber of Commerce.
Mr. Pathman spoke about the risks of sea-level rise,
especially in Miami and costal areas. Sea-level rise is not something that will
happen in 20 years or in 10; it is occurring every day. In West Miami, some
residents were recently concerned of a foul odor, and one of the reasons was
attributed to sea-level rise. About 40% of Miami-Dade County has septic tanks which
are vulnerable to the water table rising due to waste collecting below ground which
would be exposed to the rising water.
Also, sewer lines that are buried underground are vulnerable to sea
level rise. Thus, there is a lot of work
to be done with our infrastructure in getting it ready for the water level
rise. It is interesting to note that
FEMA has done little to remap the United States with regard to coastal area and
this issue.
 |
| Wayne M. Pathman, Esq. |
Miami is vulnerable to sea-level rise because of its low-line
geology and limestone foundation. This will inevitably have an effect on both
residential and commercial real estate. We are witnessing it now in Miami
Beach, where insurance premiums are and will continue to rise.
Sea-level rise affect other sectors of business including financing,
environmental laws and taxes. Most importantly, how will it affect south
Florida investments and investors?
Carlos Rodriguez Jr. // KW Commercial
www.linkedin.com/in/crodjr
