Mega mansion frenzy: Buyer snaps up Pat Riley’s $16M home to level it, rebuild

Miami Heat President Pat Riley sold his spectacular bayfront mansion in gated Gables Estates for $16.8 million last March.

The 12,856-square-foot Mediterranean-style dream house at 180 Arvida Parkway has a theater, wine cellar, library, and a sprawling pool with waterfalls and an aqua bar.

But that’s all coming down.

Turns out the lure was the lot: a rare fingertip of prime land, nearly two acres, jutting into the turquoise waters of Biscayne Bay.

In December, the buyer — listed as 180 Arvida LLC represented by Miami attorney Mark Hasner — presented the city of Coral Gables with plans to tear down the home, built in 1991, and erect an even grander estate along the 900 linear feet of bayfront.

“Most people would move in and be perfectly happy, but clients are looking for perfection — really good stuff,” said Jorge Uribe, a senior vice president at One Sotheby’s International Realty, who wasn’t involved but sold an even bigger trophy property last year: a $39.4 million estate at 14 Indian Creek Dr., in Indian Creek Village, dubbed “Miami’s Billionaire Bunker” by Forbes magazine.

“The trend in the last several years is a demand for very high-quality product. People are looking for really good locations, really good materials, and they’re willing to pay for it,” Uribe said.

Miami’s ultra-luxury market is on fire. Prices for the fanciest single-family homes and condominiums have soared to levels never before seen in the area, fueled by strong foreign demand and renewed interest from New Yorkers and others in the Northeast.

With Miami’s global image burnished by Art Basel Miami Beach and the debut of other cultural and entertainment venues, the city is emerging as an even greater magnet for the world’s super-rich.

In January, a penthouse at the Setai Resort & Residences on Miami Beach fetched $27 million, a new high for a Miami-Dade condominium. “Every building we do business in is at its highest price of all time,” said Mark Zilbert, president of Zilbert International Realty, which represented the buyer in the Setai deal.

Last August, a sleek, new home, built on spec at 3 Indian Creek Dr., sold for $47 million, a record high for a Miami-Dade residence. The buyer, whose identity has not been revealed, is Russian.

“People are realizing how valuable the bay waterfront is,” said Oren Alexander, co-founder of the Alexander Group at Douglas Elliman Real Estate, who co-listed the 3 Indian Creek property with The Jills team at Coldwell Banker and represented the buyer for the home. His father, Shlomy Alexander, developed the property with partner Felix Cohen.

Shlomy Alexander is working on two more extravagant spec homes — one at 30 Indian Creek Dr. and a second that is set to break ground shortly at 252 Bal Bay Dr. in Bal Harbour, his son said. Plans envision a tropical modern-style project that fuses the indoors and outdoors — a concept popular in Brazil.

The elder Alexander recently traveled to Italy to shop for exclusive stone for the projects, said the son.

“It’s really trending to the ultra-luxury. All sorts of exotic materials — exotic woods, exotic marbles, exotic stones,” said Sean Murphy, an executive vice president at Coastal Construction, a major builder of luxury hotels and condominiums that also has erected some of the most extravagant mansions in the region. “Everything is so exotic.”

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Hedge funds deserve a (close) look

When constructing a new house, you need to begin with a solid foundation. Otherwise, your home will always be a bit shaky and prone to collapse in a storm. That same principle applies when you start investing. Rather than taking a random approach – like buying a "hot" stock or keeping your money "safe" in a low-earning savings account – you need to start with a solid foundation. In the investing world, that means developing an investment plan and perhaps an investment policy – two basic tools that can help you build a solid financial "home."

First, let's look at an investment plan, which is often prepared with the help of a financial advisor. The plan typically has three basic elements: your goals, your risk tolerance and your desired return.

Usually, your financial goals will be closely aligned with your personal objectives in life. Perhaps you want to have $2 million in assets to support a comfortable retirement. Or you might be aiming to save $150,000 for a bigger house for a growing family or $100,000 to put your son or daughter through college. If you already have accumulated a large nest egg, you might focus on how best to pass your investments on to your children or grandchildren.

Having a clear goal in life – and in your investment plan – may be one of the essentials in building wealth. Rather than spending every dollar from your paycheck, you can start putting away some of that incoming money to prepare for the future.

Next, you should consider both your tolerance for risk and your desired return on your investments. Some people are willing to make higher-risk investments, while others prefer to sleep soundly at night knowing their investments are comparatively more secure. After all, assets like stocks and commodities are usually more volatile than bonds or other fixed income instruments, and rise or fall more steeply from day to day.

However, many of the more volatile assets can also generate higher returns over the long term. That's an important consideration because inflation can reduce the purchasing power of the dollars you stash away in money market accounts or other low-earning securities.

That's why a solid investment plan usually incorporates a diversified mix of assets, including stocks, bonds, cash-like securities, and possibly real estate, commodities, hedge funds and managed futures. Building a diverse portfolio reduces the risks associated with putting all your eggs in one basket

with the potential to generate positive returns over the years and keep you moving steadily toward your goals.

Now, let's look at your investment policy. This is a written statement designed to guide both you and your financial advisor when making financial decisions. It can help you balance investment issues related to risk and reward, perhaps ruling out certain assets as "too risky."

At the same time, developing an investment policy helps you reality-test your financial goals and current savings and investment plans. For example, you might be overly optimistic and expect a 12 percent annual return on your portfolio. Or you might be overly pessimistic, not realizing how your investments will grow with even a 5 percent annual return.

An investment policy can also clarify the roles of your financial advisors, as well as your own decisions. In that regard, it can help you avoid making investment mistakes based on emotions like fear or greed. In other words, it helps you maintain a disciplined steady course toward your goals, regardless of market ups and downs.

Finally, the investment plan and policy can provide tangible evidence of your financial progress. Your advisor can send you quarterly and annual statements(as well as discuss in person)that clearly show whether your portfolio has grown or declined, and where the changes occurred. This is information you need to know in order to make good decisions about your financial future.

So, consider your financial plan and policy as a road map. You may not yet be close to your goals, but at least you know you're on the right path!

•  Benefit amount. This is the maximum payment you would receive from the policy, such as $100,000, $500,000 or $1 million. Since five years of care in a nursing home or memory disorders unit could easily total $500,000 or more, a larger benefit amount is usually preferable, provided you can afford the premiums.

•  Benefit period. This is the maximum number of years that the coverage remains in effect. That might be five years, 10 years or the rest of your life.

•  Elimination period. Like a deductible amount in a life insurance policy, the elimination period specifies how long you would pay the cost of care before the policy kicks in. Typically periods are 30, 60 or 90 days.

Andrew Menachem, CIMA, CWS is a wealth advisor at the Menachem Group at Morgan Stanley Smith Barney in Miami and Aventura and teaches at the University of Miami.

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Sign up for Feb. 21 Miami Herald Small Business Forum

Prepare your best pitch for the Miami Herald’s Small Business Forum, Feb. 21 at the south campus of our sponsor, Florida International University.

In addition to how-to panels and inspirational stories from successful entrepreneurs, our annual small business forum will include interactive opportunities with experts to learn about financing options and polish your personal and business brands.

During our finance panel, audience volunteers will be invited to explain their financing needs to the group. During our box-lunch session, they will be invited to pitch their business or personal brand to our coaches.

Those who prefer just to listen will be treated to a keynote address by Alberto Perlman, co-founder of the global fitness craze Zumba. Panels include success stories from the local entrepreneurs who founded Sedano’s, Jennifer’s Homemade and ReStockIt.com; finance tips from experts in small business loans, venture capital, angel investments and traditional bank loans; and insiders in the burgeoning South Florida tech start-up scene.

Plus, it’s a real bargain. $25 includes the half-day seminar, continental breakfast and a box lunch.

Register here.

Program

8 a.m.

Registration and continental breakfast, provided by Bill Hansen Catering

8:30 a.m. Welcome

Host: David Suarez, president and CEO, Interactive Training Solutions, LLC

•  Jerry Haar, PhD, associate dean & director, FIU Eugenio Pino and Family Global

Entrepreneurship Center

•  Alice Horn, executive director, Network for Teaching Entrepreneurship (NFTE South Florida)

•  Jane Wooldridge, Business editor, The Miami Herald

Miami Herald Business Plan Challenge Overview:

•  Nancy Dahlberg, Business Plan Challenge coordinator, The Miami Herald

8:45 a.m. Session I – Success Stories

Moderator: Jerry Haar, PhD, associate dean & director, FIU Eugenio Pino and Family Global

Entrepreneurship Center

Speakers:

•  Jennifer Behar, founder, Jennifer’s Homemade

•  Matt Kuttler, co-president of ReStockIt.com

•  Javier Herrán, chief marketing officer, Sedano’s Supermarkets

10 a.m. Session II – All about Tech

Moderator: Jane Wooldridge, Business editor, The Miami Herald

Speakers

•  Susan Amat, founder, Launch Pad Tech

•  Nancy Borkowski, executive director, Health Management Programs, Chapman Graduate School of

Business, Florida International University

•  Mark Slaughter, CEO, Cohealo.com

•  Chris Fleck, vice president of mobility solutions at Citrix and a director of the South Florida Tech Alliance

11:15 a.m. Keynote

Speaker: Alberto Perlman, CEO and co-founder of Zumba® Fitness

Introduction: Jane Wooldridge, business editor, The Miami Herald

11:45 a.m. Session III – Show me the money: Financing your small business

An interactive session featuring audience volunteers who will be invited to make a short investment pitch before a panel, including experts in microlending, SBA loans, traditional bank loans, venture capital and angel investing. Audience volunteers should come prepared with a two-minute presentation that includes details about current backing, how much money they are seeking and a brief synosis of ow that money would be used.

Moderator: Melissa Krinzman, founder and managing director, Venture Architects

Panelists:

•  Marjorie Weber, chairman, SCORE of Miami-Dade

•  Cornell Crews, Jr., program director, Partners for Self Employment

•  Darius G. Nevin, co-founder, G3 Capital Partners, a mid-market and early-stage investment company

•  Boris Hirmas Said, chairman of the board, Tres Mares S.A. (Santiago, Chile) and entrepreneur in

residence at the Eugenio Pino and Family Global Entrepreneurship Center

1 p.m. Lunch session - Polish your Pitch, Brighten Your Personal Brand

An interactive session featuring audience volunteers who will be invited to make short pitches about their businesses and themselves. Audience volunteers should come prepared with a two-minute presentation.

Coaches: Melissa Krinzman of Venture Architects and Michelle Villalobos of Mivista Consulting

advise audience volunteers on how to best pitch themselves and their products.

Box lunch provided by Bill Hansen Catering

All speakers confirmed unless otherwise noted. Agenda is subject to change without notice .

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Miami startup that turns text to video receives $1 million in seed funding

Guide, a new technology startup based in Miami, announced Tuesday it has closed a $1 million round of seed funding from investors including the John S. and James L. Knight Foundation, Sapient Corp., MTV founder Bob Pitman, actor and producer Omar Epps, and early Google employee Steve Schimmel. The Knight Foundation is supporting Guide through its new early-stage venture fund, the Knight Enterprise Fund.

Led by CEO and founder Freddie Laker and COO Leslie Bradshaw, Guide’s team of seven is focused on turning online news, social streams and blogs into video for users who may be cooking, exercising, commuting or getting ready in the morning. The free application offers consumers a selection of about 20 “anchors” — including a dog, a robot and an anime character — that will read the article and present the accompanying photos, pull-out information and video clips in its video presentation. Revenue drivers for Guide could include in-app purchases, advertising-based anchors and customizations from publishers, said Laker, a former vice president at SapientNitro.

Laker and his team plan to launch a public beta next month, which they plan to do with a splash at the huge technology conference South by Southwest (SXSW) in Austin, Texas.

Read more about Guide here on the Starting Gate blog. Follow Nancy Dahlberg on Twitter @ndahlberg

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Can’t find time for play? Try scheduling it

If your resolutions for 2013 include achieving a better work-life balance, your calendar holds the key to your success.

But, to pull off your goals, you’re going to need to turn the traditional way of thinking upside down.

Most people schedule their work commitments on their calendars and squeeze in family, friends and fun around it. Instead, schedule your work around your personal life, say Michelle Villalobos and Jessica Kizorek, speakers, personal branding consultants and co-creators of Make Them Beg, a professional self development program. For example, they suggest you block out gym time, reading for pleasure time, coaching your kid time and date night. Even a person with almost no flexibility in his or her work schedule can block out 15 minutes for a walk rather than eating lunch at their desks.

“You have to plan for play. Otherwise work expands and there’s no time for play,” Kizorek says. Today, it’s easy to stay a little later at the office or work through lunch because there’s always more to do. Using your calendar effectively can help you with boundaries.

Villalobos says once you put “play” into your schedule, it helps to get people who are important in your life to keep you committed. For example, she blocks out three hours twice a week on her calendar to paint. She has asked her boyfriend to help her stick to that schedule.

Realistically, there will be times when you have to reschedule a fun activity because of work demands. “At least you know what you missed so if you don’t do it, you move it to another day,” Villalobos says.

If you’re in a relationship, experts advise letting your partner participate in creating your calendar. A friend of mine sends his spouse an electronic invite to his poker night signaling that she has the night free to schedule her own fun activity.

Scheduling everything may seem rigid. “That’s the opposite,” Villalobos insists. “By putting things on your calendar, you can focus on what you need to do in the moment. It allows you to be far more present.”

With more people converting to electronic calendars or hovering between paper and online options, how we coordinate our schedules is in flux. But for balance, it’s often better to track personal and professional in one place.

Sharon Teitelbaum, a Boston-based work-life coach, says to calendar all important life events including birthdays. It may sound like common sense to calendar your son’s birthday, but people forget and schedule business travel, she has found. She also advises putting work events in your calendar as far in advance as possible and tasks that lead up to them. “You don’t want to agree to host a dinner party the weekend before a work retreat.”

For many busy people, the traditional way of scheduling needs to change from calendaring a due date to creating a timeline. If you have a big project you need to have completed by Feb. 15, Teitelbaum says break it into weekly tasks leading up to that date. “People vastly underestimate how long things take and the number of interruptions they have to contend with,” she says.

Julie Morgenstern, who created the Balanced Life Planner for Delray Beach-based specialty retailer Levenger, says that even on a daily basis people don’t plan realistically. “By bravely recognizing the limits of each day and how long each to-do on your list will take, we can see in advance what will or won’t fit into our calendar, and become more strategic,” she said.

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Cutting edge tech from Swiss Army

The Victorinox Swiss Army Jetsetter looks like a traditional pocket knife the company is famous for, but instead of the knife you get a pocket full of storage.

A foldout and detachable USB 2.0 flash drive is among the features in the mini tool kit, which includes a ball point pen, bottle opener, Phillips screwdriver, tweezers and scissors in the 16 GB model I tested out.

The detachable flash drive is Windows- and Mac-friendly, although it comes loaded with Mac-friendly security software to protect your data stored on the device.

It’s available in capacities of 8 GB black ($39.95), 16 GB red ($49.99) and 32 GB silver ($99.99). There are a few different features in each, with the 32 GB model having a LED mini light, for example.

Details: www.swissarmy.com

A great find

Kensington’s Proximo Fob and Tag Kit creates a wireless (Bluetooth) monitoring system between your keys, accessories and an iPhone (4S or 5) that will alert you if they are separated.

I tried the starter kit ($59.99), which includes a fob, tag, keyring and has a screen driver to open the hardware and insert the included CR2032 lithium coin batteries, along with a key ring.

The fob attaches to the key ring and after you have it linked with the free Kensington Proximo app, anytime the devices are separated an alarm sounds. If your phone is within range but you can’t find it, press a button.

It’s easy to think of this as a monitoring device for your expensive smartphone but it also works in reverse once everything is linked up. With your phone in your pocket or purse, it can alert you that you have left your keys behind.

can be placed in a computer bag or attached to anything (or anyone) that you want alarmed. But unlike the fob, it’s only one direction; the app will find it but you can’t use it to find your phone.

The Proximo App Dashboard tracks up to five items with a single fob and up to four tags. Additional tags cost $24.99 each.

If you get out of range between the devices, an app lets you tap a button to let you know where your device was last seen and even pulls up a map with a specific address.

Details: www.Kensington.com

Sound investment

RadioShack’s Auvio expanding Bluetooth speaker ($39.99) is as simple and useful as a gadget can be. Just twist open the speaker, pair it with your device via Bluetooth and you’ll be amazed at how much better the sound is than the built-in speaker on your smartphone or tablet.

A rechargeable battery is built in for up to eight hours of use and can be powered up in two hours with a USB charge using the included cable.

It is 2.5 inches in diameter, just over 3-inches tall when expanded and about 2.5 inches when closed.

Another choice, with a bigger size (2.8-by-6.5-by-2.9 inches) but much better sound is the brick-shaped Auvio Portable Speaker ($79.99).

Both speakers have aux-in ports to connect to non-Bluetooth devices.

Details: www.radioshack.com

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Bright spots in Latin America despite global economic uncertainty

There are bright spots as Latin American and Caribbean economies begin the year but the uncertain health of the U.S. economy, the lingering financial crisis in Europe and more sluggish growth in China are casting shadows over the region.

A decade ago, dim prospects in those major markets would have delivered a knock-out punch in the region, but this year Latin American and Caribbean economies are expected to grow by 3.5 percent and average 3.9 percent growth in 2014 and 2015, according to a World Bank forecast. The United Nations’ Economic Commission has a slightly more sanguine forecast of 3.8 percent growth in 2013.

Both are better than the 2.4 percent growth the World Bank is forecasting for the global economy and the mere 1.3 percent increase it is predicting for high-income countries.

The U.S. economy grew by 2.2 percent in 2012. But the economy shrank 0.1 percent in the fourth quarter and the first quarter of 2013 also could be sluggish..

“That creates a soggy start for 2013 in Latin America,’’ said David Malpass, president of Encima Global, a New York economic consulting and research firm.

With a recession in Japan, even slower growth expected in Europe than in the United States, and questions about whether the dip in the Chinese economy has bottomed out and whether the United States will be making sharp cuts in defense spending and other federal programs come March 1, Latin American and Caribbean nations can’t really depend on the industrialized world to spur growth.

The region must look inward and undertake structural reforms that will allow growth from domestic factors, said Malpass, who was in Miami in January for an event organized by the University of Miami’s Center for Hemispheric Policy.

Panama’s $5.25 billion investment in expansion of the Panama Canal is an example of the inward focus that will pay off down the road, said Malpass. By 2015, Panama plans to have completed two new sets of locks on the Atlantic and Pacific sides of the canal and the deepening and widening of existing channels to accommodate the so-called Post-Panamax ships too big to traverse the current locks.

“It’s a difficult period but a period where developing countries are growing solidly but not as quickly as they might otherwise want to,’’ said Andrew Burns, the lead author of the World Bank’s annual Global Economic Trends report.

That means they should focus on investment in infrastructure and healthcare, structural policies, regulatory reforms and improvements in governance that will pay future dividends down the road, Burns said.

Such economic reforms, plus high commodity prices enjoyed by countries with fertile fields and mineral wealth, helped the region move beyond the global financial crisis of 2008 and 2009 far more quickly than it did when it was so dependent on economic cycles in the rest of the world.

Economic growth slowed in Latin America and the Caribbean from 4.3 percent in 2011 to an estimated 3 percent but that was still better than the 1.3 percent growth high-income countries managed in 2012, according to The World Bank.

China will continue to play a major role in Latin America and the Caribbean this year but whether the slowdown in China has reached its low point is subject to debate. But it’s relative. Slow growth in China would be brisk growth elsewhere. China says its gross domestic product grew 7.8 percent in 2012, the most tepid growth in 13 years and a comedown from 9.3 percent growth in 2011.

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Hollywood cardiologist’s ties with St. Jude sales rep raises red flags

Mark Sabbota, a Hollywood cardiologist, regularly implants $5,000 pacemakers in patients at Memorial hospitals in South Broward — generating, last year alone, more than a half-million dollars in sales for a manufacturer called St. Jude Medical.

Sabbota, public records show, also happens to be partners with a St. Jude sales rep in two corporations that run frozen yogurt shops.

What’s yogurt got to do with healthcare?

Perhaps nothing. Perhaps a lot. The question is connected to an on-going lobbying battle in Washington over a pending disclosure policy intended to more clearly reveal financial ties between physicians and the healthcare industry — often-murky relationships that have produced a long history of whistle-blower lawsuits, federal investigations and fines.

Sabbota, in a brief interview, adamantly denied any conflict of interest. “There has been no wrongdoing at all,” he said.

Memorial spokeswoman Kerting Baldwin also said the hospital saw no problem with the yogurt arrangement. As a “community” doctor, not a staff employee, Baldwin said Sabbota can select from a list of pacemakers approved by the hospital but has no say over what companies made the list.

“As for why he prefers to use St. Jude, I won’t speak for him,’’ she said. “You’d have to ask him that.”

But several medical ethics experts said such relationships fall in a gray area. They raise what Kenneth Goodman, bioethics director at the University of Miami, called “red flags” about whether the doctor’s motivation in choosing a device “is something other than the best interests of the patient.”

“Maybe it’s just a good business arrangement that has nothing to do with the devices he chooses,” said Charles D. Rosen, a California physician who is co-founder of the Association for Medical Ethics. “But the issue is public disclosure and transparency. You as a patient should have the right to know about a doctor’s financial relationships with companies.”

Concerns about the relationship between doctors and healthcare companies have been simmering for years. Americans are so suspicious of doctors’ connections that, in a 2008 Pew Charitable Trusts survey, 86 percent of patients said doctors should not be allowed to get free dinners from drug makers and 70 percent said doctors shouldn’t even be allowed to get free notepads and pens.

The 2010 Affordable Care Act includes a provision intended to address some aspects of these often-cozy relationships. Starting Jan. 1, healthcare companies were supposed to publicly post how much they were paying doctors. But that provision has been held up in the White House by intense lobbying.

“I don’t know why the hold-up, except the intense opposition of the industry,” Rosen said. His group, including members of the Harvard Medical School and Cleveland Clinic, wrote a letter to the Obama administration last month protesting the delay.

The group complains that the healthcare industry is trying to soften the rules so that foreign subsidiaries and doctors engaged in clinical trials wouldn’t have to reveal payments. But even if the disclosure rules are implemented, a side deal like Sabbota’s yogurt company would not have to be revealed under the new law, Rosen said.

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Miami Beach hotels seek more political clout

When Miami Beach wanted local hotels to scale-back their popular rooftop parties and bars, Alexander Tachmes fought back.

An attorney who has represented Beach hotels on a myriad of issues, he “cobbled” together a group of his hotelier clients and went before the city commission to ask them to curb the proposed rules.

The hotels won.

It was a learning experience, said Tachmes, who came to believe that the Beach needed a permanent group of industry heavyweights to take political action in the face of restrictive city policies.

With that in mind, Miami Beach’s hotel industry is taking on a decidedly political tone by reviving a previously-formed electioneering organization, just in time for election season on the sandbar.

The group is called Hospitality for a Better Miami Beach, and as an Electioneering Communication Organization (ECO), it can raise unlimited money to run ads, send fliers and make telephone calls about political issues. They’ve also created Miami Beach Hospitality Coalition, which Tachmes said will soon be registered as a non-profit.

Behind the organizations are Tachmes and big-name hoteliers Mike Palma, Executive Vice President of Hospitality for Brio Investment Group (which owns the Clevelander) and the Perry South Beach Hotel General Manager Tim Nardi.

“Political clout is something that will help to further the goals of the industry,” Tachmes said.

Hotels already have their interests represented by the Greater Miami and the Beaches Hotel Association and the Greater Miami Convention and Visitors Bureau. But the association is tax-funded and the visitor’s bureau is tax-exempt, so neither can raise or spend money for political purposes.

Stuart Blumberg, who headed the hotel association for 15 years, thinks the industry has enough clout without having to wade into politics.

“You’re getting a group of hoteliers who’ve decided they want a voice in government. And that’s dangerous,” he said of the ECO.

An outspoken leader, Blumberg often took political stances and faced elected officials — and he often found success.

Blumberg led the charge to exempt pool decks and outdoor patios from a constitutional amendment banning smoking, and pushed to delay the start of the school year so that Florida teens could continue working at local hotels. At a farewell gathering after Blumberg announced his retirement, he didn’t hesitate to take a shot at then-Gov. Charlie Crist, calling him out on a proposed tax increase on car rentals.

“We were able to accomplish a lot of things because we weren’t tarnished by, ‘Yeah, I supported that guy or that guy,’” Blumberg said. “You stand and fall on the merits of an issue.”

Citing the huge impact the tourism industry has on Florida, he added: “We don’t need to spend money to win influence.”

According to state figures, the tourism industry has a $67.3 billion economic impact on Florida.

In Miami-Dade, the accommodation industry accounts for 3 percent of the county’s 1 million non-farm jobs, or about 27,000 positions. The industry also contributes about $1 billion in income a year in Miami-Dade, or about 2 percent of total wages.

With a November election in Miami Beach — in which a majority of the city’s commission seats up for grabs — now is the time to translate economic importance into political prominence, said Palma.

In a city where resident-activists are vocal and plentiful, and where residents are often at odds with party-seeking tourists, Palma said city leaders lately have tilted more in favor of residents rather than businesses

Added Tachmes: “The residents of the city benefit by having a thriving hotel industry...all we want is a seat at the table.”

The electioneering committee was registered last year and is currently not active, according to state records.

Tachmes said the group is in the process of recruiting members — whom he would not name — and creating a board, at which time the group will be re-opened. Members are planning to interview candidates to decide who to support in the upcoming elections.

Wendy Kallergis, president and CEO of the hotel association, pointed out that many of the ECO members are also members of her organization. She doesn’t think the new group will be a competitor.

“We’re not able to do some of the things they can do,” she said. “I think it’s going to strengthen the voice on the Beach.”

Miami Herald staff writer Douglas Hanks contributed to this report.

Follow @Cveiga on Twitter.

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Mompreneur jumps into the ‘Shark Tank’

It all started with a 4 a.m. email nearly a year ago: “Do you think a baby bib could change the world? I do...”

Then Susie Taylor included a link to her website, bibbitec.com, and off it went to Shark Tank, the popular ABC television show where entrepreneurs pitch their companies to investors on the show — and by extension, 7 million viewers.

Four months later, as the “mompreneur” was leaving her Biscayne Park home to pick up her kids from school, she got a call from the show asking her to pitch on the spot. Driving with her phone on her shoulder, she told the Bibbitec story.

Shark Tank bit. After a few more back and forths, her segment was filmed last summer.

Friday night, Taylor is scheduled to be on the show pitching Bibbitec’s main product, “The Ultimate Bib,” a patented generously sized, stain-resistant and fast-drying child’s bib made in the USA — Hialeah, to be exact. Bibbitec’s $30 bib can be a burp cloth, changing pad, breast feeding shield, full body bib, place mat, art smock and more, Taylor says.

We won’t be getting any details on what happens Friday night when she and her husband, Stephen Taylor, get into the tank with Daymond John, Mark Cuban and the other celebrity sharks; Taylor has been contractually sworn to secrecy. But whatever the outcome, she believes it will be worth it for the marketing pop.

Taylor was inspired to create her bib after a long and very messy plane ride with her two young sons and started Bibbitec in 2008. She and her team — her husband is CFO, her sister, Heather McCabe, handles sales and marketing, her uncle, Richard Page, is in charge of production, and her aunt, Marcia Kreitman, advises on design — have expanded the line to include The Ultimate Smock for older children and the Ultimate Mini for babies. Coming soon: a smock for adults.

Taylor already got a taste of what a national TV show appearance can do for sales. In September, Bibbitec’s sales jumped 40 percent after she was on an ABC World News "Made in America" segment. “Within 30 seconds, we started getting sales from all over the country and they didn’t even mention our name on the air,” Taylor says. She said that confirmed her belief that a Shark Tank appearance would be worth it.

Plus, Taylor has been hooked on Shark Tank since the first time she watched it in 2008 as she was developing her product. Trained in theater, she admits she didn’t know much about business and learned from the show. She would practice how she would answer the questions.

“I’m all about empowering women who are sitting on the couch watching, because that’s what I was four years ago,” says Taylor. “All I wanted to do was to be on Shark Tank because I believed if I got on Shark Tank the world will see what I am trying to do and that’s all I need. I know it’s a great product.”

Will that theater training come in handy Friday night? Stay tuned. Shark Tank airs at 9 p.m. on ABC and Taylor hopes viewers will join in on Twitter using the hashtag #sharkbib.

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Mompreneur jumps into the ‘Shark Tank’

It all started with a 4 a.m. email nearly a year ago: “Do you think a baby bib could change the world? I do...”

Then Susie Taylor included a link to her website, bibbitec.com, and off it went to Shark Tank, the popular ABC television show where entrepreneurs pitch their companies to investors on the show — and by extension, 7 million viewers.

Four months later, as the “mompreneur” was leaving her Biscayne Park home to pick up her kids from school, she got a call from the show asking her to pitch on the spot. Driving with her phone on her shoulder, she told the Bibbitec story.

Shark Tank bit. After a few more back and forths, her segment was filmed last summer.

Friday night, Taylor is scheduled to be on the show pitching Bibbitec’s main product, “The Ultimate Bib,” a patented generously sized, stain-resistant and fast-drying child’s bib made in the USA — Hialeah, to be exact. Bibbitec’s $30 bib can be a burp cloth, changing pad, breast feeding shield, full body bib, place mat, art smock and more, Taylor says.

We won’t be getting any details on what happens Friday night when she and her husband, Stephen Taylor, get into the tank with Daymond John, Mark Cuban and the other celebrity sharks; Taylor has been contractually sworn to secrecy. But whatever the outcome, she believes it will be worth it for the marketing pop.

Taylor was inspired to create her bib after a long and very messy plane ride with her two young sons and started Bibbitec in 2008. She and her team — her husband is CFO, her sister, Heather McCabe, handles sales and marketing, her uncle, Richard Page, is in charge of production, and her aunt, Marcia Kreitman, advises on design — have expanded the line to include The Ultimate Smock for older children and the Ultimate Mini for babies. Coming soon: a smock for adults.

Taylor already got a taste of what a national TV show appearance can do for sales. In September, Bibbitec’s sales jumped 40 percent after she was on an ABC World News "Made in America" segment. “Within 30 seconds, we started getting sales from all over the country and they didn’t even mention our name on the air,” Taylor says. She said that confirmed her belief that a Shark Tank appearance would be worth it.

Plus, Taylor has been hooked on Shark Tank since the first time she watched it in 2008 as she was developing her product. Trained in theater, she admits she didn’t know much about business and learned from the show. She would practice how she would answer the questions.

“I’m all about empowering women who are sitting on the couch watching, because that’s what I was four years ago,” says Taylor. “All I wanted to do was to be on Shark Tank because I believed if I got on Shark Tank the world will see what I am trying to do and that’s all I need. I know it’s a great product.”

Will that theater training come in handy Friday night? Stay tuned. Shark Tank airs at 9 p.m. on ABC and Taylor hopes viewers will join in on Twitter using the hashtag #sharkbib.

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Mercantil Commercebank boosts its earnings

Merantil Commercebank, based in Coral Gables, on Wednesday reported a net profit of $10.2 million for the fourth quarter of 2012, up from $7.7 million reported for the same quarter of 2011.

The bank earned $31.8 million for the full year of 2012, nearly double the $16.2 million it earned in 2011. The bank said its positive results primarily reflect strong growth in loans and improved asset quality.

Mercantil Commercebank had $6.8 billion in total assets at year-end 2012. It has 18 branches, including 15 in South Florida, one in New York and two in Houston.

INA PAIVA CORDLE

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ReStockIt.com acquired by Acme Paper & Supply Co.

ReStockIt.com, a Davie-based ecommerce supplier for small-to-medium sized businesses, has been purchased by Acme Paper & Supply Co., a Baltimore-based distributor of packaging, supplies and equipment for janitorial, foodservices, manufacturing and retail industries.

ReStockIt.com was founded in 2004 by David Redlich and Matt Kuttler. From 2008 to 2011, the company nearly doubled its revenue to $25.6 million. Over the years, Inc. magazine ranked ReStockIt.com on its List of America’s 500 Fastest-Growing Companies and it was a Florida Finalist in the Ernst & Young Entrepreneur of the Year awards. The company offers 200,000 products from more than 2,350 manufacturers, in the primary categories of restaurant supplies, cleaning and janitorial supplies, office supplies, industrial packaging and custom-designed packaging.

With the acquisition, Acme is adding 30 full-time ReStockIt.com employees and additional categories to its offerings, including office supplies, electronics and tools, the company said.

Founded in Baltimore in 1946 by Edward and Mildred Attman, Acme Paper & Supply Co., Inc. is a third generation family-owned and operated company led by brothers and co-owners Ron, David and Steve Attman together with their father Ed. Acme said it is among the nation’s largest distributors of disposable food service packaging, janitorial equipment and supply, restaurant equipment and supply, retail and industrial packaging, and custom-designed packaging.

INA PAIVA CORDLE

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Miami Herald Business Plan Challenge opens for entries

Entrepreneurs, please don’t let the name of our contest scare you.

As we launch our 15th annual Miami Herald Business Plan Challenge today, we are putting out our annual call for entries. But we aren’t looking for long, laboriously detailed business plans. Quite the contrary.

More and more, today’s investors in very early stage companies want to see a succinct presentation of your concept and how you plan to turn it into a success. We do, too.

If you have a business idea or an operating startup that is less than two years old, you can enter the Challenge, our annual celebration of South Florida entrepreneurship. Sponsored by the Pino Global Entrepreneurship Center at Florida International University, our contest has three tracks — a Community Track, open to all South Floridians; an FIU Track, open to students and alumni of that university; and a High School Track, co-sponsored by the Network for Teaching Entrepreneurship.

Your entry may be up to three pages and you may attach one additional page for a photo, rendering, diagram or spreadsheet if you wish. Think of it as a meaty executive summary. Experts in all aspects of entrepreneurship — serial entrepreneurs, executives, investors, advisors and finance specialists (see judge bios on MiamiHerald.com/challenge) — will judge your short plan. In doing so, they will be looking at your product or service’s value to the customer, market opportunity, business model, management team and your marketing and financial strategies. See the rules on page 22, which also include tips on preparing your entry.

Your entry is due by 11:59 p.m. March 11. Entries should be sent to challenge@miamiherald.com, fiuchallenge@miamiherald.com or highschoolchallenge@miamiherald.com.

Don’t worry, we’re here to help!

“Frame your business from your customer’s perspective and not yours. Rather than diving into a detailed explanation of your product or service, a more compelling way to tell your business story is to clearly share the problem that you are solving for your customers and how your business is different, better, faster, cooler, cheaper, smarter,” says Melissa Krinzman, managing director of Venture Architects and a veteran Challenge judge.

On Feb 26 at 6:30 p.m. at Miami Dade College, we’ll host a free Business Plan Bootcamp, where you can bring your working plan with you for advice from experts, including Krinzman. Find the sign-up link on MiamiHerald.com/challenge.

And each week in Business Monday and on MiamiHerald.com/challenge, we’ll be bringing you advice and answering your questions. You can post your questions on the Q&A on MiamiHerald.com/challenge or email your questions to me at ndahlberg@miamiherald.com. Follow @ndahlberg on Twitter.

The top six finalists in the Community and FIU Tracks will present their 90-second elevator pitches for our popular video contest. Last year our People’s Pick contest drew more than 18,000 votes.

On May 6, in a special section of Business Monday, we will profile the winners — the judges’ top three selections in each track plus the People’s Pick winners. Along the way, we will unveil semifinalists and finalists to keep the suspense building.

Today, though, we are looking back on the entrepreneurial journeys of our 2012 winners. Funding was a nearly universal challenge, and many faced setbacks in developing their platforms. Throughout the entry period, we’ll also look back on other winners from the past 14 years.

Show us what you’ve got. Let’s make this the best Challenge yet.

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Miami Lakes company growing its brand of skin care products

For decades, Vivant Skin Care has formulated creams, serums, cleansers and tonics to treat such dermatological conditions as acne, aging and hyperpigmentation.

Family owned and linked to Dr. James E. Fulton, who co-developed the anti-aging formula Retin-A, the company built its reputation with medically tested therapies aimed at improving skin.

Now, like a complexion that has undergone the metamorphosis of time, Vivant is altering its manufacturing and sales structure and adding products, emerging from the economic downturn with a new plan for the future.

“Now we’re stabilized and looking forward to growth,” said Fulton’s daughter, Chief Executive, Kelly Fulton-Kendrick.

Founded in 1990, Vivant produces a line of 30 skin care products, all formulated in-house, and priced from $15 to $100. The products target both females and males, ages 13 and up.

“Our target market is people who have serious skin care problems and need solutions,” Fulton-Kendrick said. “Vitamin A is the best for affecting change in the skin.”

The clinical skin care products, packaged simply in white bottles and amber glass containers, have remained the company’s mainstay, as the business has transformed.

In mid-2011, Vivant decided to adjust its sales structure, to sell, for the first time, to online retailers like DermStore.com, SkinCareRX.com and amazon.com, as well as to make its products available on its own website, vivantskincare.com. It was a major change in course after more than 20 years of having its products sold only at spas and doctors’ offices.

“So now, we’re a mix of wholesale to skin care professionals and Internet retailers, and we’re selling directly to consumers through our own website,” Fulton-Kendrick said.

Mike Nelson, marketing manager at SkinCareRx.com, said Vivant, which it has sold since November, has “done very well for a new brand to our site,” surpassing some brands that have been on its site for over a year. He declined to provide figures.

SkinCareRX took on only 5 percent of the brands that approached it last year, he said, and had undertaken a rigorous review of Vivant.

“They have a good loyalty base and get great reviews,” Nelson said.

Along with changes in its sales system, in January 2012, Vivant moved from Medley to Miami Lakes, doubling its space to 11,000 square feet to accommodate manufacturing, which it brought in house to reduce costs. It had outsourced manufacturing to a lab in Costa Mesa, Calif., that it had previously owned and later sold.

Inside its warehouse space in a commercial business complex, a small staff handles manufacturing, shipping and packaging. All orders are taken by customer service and fulfilled onsite. A room used as an educational center allows vendors and aestheticians to learn about the products.

Martina Echeveria, international trade specialist at the U.S. Department of Commerce’s Miami U.S. Export Assistance Center, who is helping Vivant get a distributor in the Dominican Republic, said she recently nominated the company for a South Florida Manufacturer of the Year award. The awards are given by the South Florida Manufacturers Association.

“Their products are good and 100 percent U.S. made,” she said.

At Vivant’s offices, a lab area is used by Dr. Fulton for research and development. He also maintains a practice at Flores Dermatology in South Miami.

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Fed aims for a 6.5% jobless rate

Six and a half percent unemployment in America would mean almost 2.1 million more people working than today. At the rate the country has been creating new jobs each month, it would take more than a year to find work for that many people.

Keep 6.5 percent in mind this week when the Federal Reserve meets Tuesday and Wednesday to talk about its efforts to push interest rates down. The hope is that the cheap cash will spur on investment leading to job creation. After all, the central bank has promised to keep its target interest rate near zero as long as more than 6.5 percent of Americans in the workforce are without work. The Fed has put other conditions on maintaining its historically low interest rate such as low inflation, but official measures remain tame. So its job growth the Fed is looking for.

It won’t have to wait long for the latest update. On Friday the first jobs report of 2013 will be released. Hiring has been a slow grind but it has been positive.

Finding work in January, though, can be tricky. Winter weather, a hangover from the holidays and seasonal work ending can slow down hiring.

It will be months, maybe even a couple of years before the U.S. unemployment rate hits 6.5 percent. There is nothing magical about that number, but as long as the Federal Reserve has it in its sights, so should we.

Tom Hudson is anchor and managing editor of Nightly Business Report, produced by NBR Worldwide and distributed nationally by American Public Television. In South Florida, the show is broadcast at 7 p.m. weekdays on Channel 2. Follow him on Twitter, @HudsonNBR.

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JP Morgan CEO set for Miami talk

After a bruising start to 2013, JP Morgan Chase CEO Jamie Dimon will be a keynote speaker of an upcoming business conference in Miami.

Dimon, once Wall Street’s top-paid executive, saw his compensation cut in half on the heels of the so-called “London Whale” trading loss that cost the company $6 billion. He will be a keynote speaker at the Greater Miami Chamber of Commerce’s “Economic Summit” conference scheduled for Monday, Feb. 4. The event starts at 8 a.m. at Jungle Island and costs between $75 and $200 to attend.

JP Morgan’s bad bet on derivatives last year in its London trading office cost shareholders more than $6 billion, and fueled criticism that JP Morgan and other major banks were still free from the kind of regulations needed to prevent another global banking crisis. Directors cut Dimon’s compensation and Dimon called the incident “a terrible mistake” while pointing out the bank continues to produce record profits.

Eric Silagy, president of the FPL utility company, will share keynoting duties with Dimon at the half-day event.

DOUGLAS HANKS

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Meet the judges: FIU Track

John C. Fleming, a serial entrepreneur, is the technology practice lead at Biztegra Partners, a social Web agency based in West Palm Beach. He started his career as a software developer in 1979 and has worked nationally and internationally in engineering, sales, marketing, services and general management in industries ranging from high tech to real estate. Fleming has started companies, raised money and has been part of teams that built products that became market leaders.

Robert H. Hacker is the managing partner of GH Capital, a Miami-based financial consulting boutique. He is a professor in the FIU Engineering School and the MIT Sloan School of Management. He is author of “Billion Dollar Company” and is finishing his next book on social entrepreneurship. He is also the CFO at the One Laptop Per Child Association and is a board member of the Eugenio Pino and Family Global Entrepreneurship Center at FIU and the South Kent School.

Mike Tomas is president of The ASTRI Group, an early-stage private equity investment company providing capital, business development and strategic marketing support. He is also president and CEO of Bioheart, an adult stem cell company dedicated to autologous cell therapies for the treatment of chronic and acute heart damage and peripheral vascular disease. Previously, he worked 18 years in the telecom industry in the U.S. and Mexico. He chairs FIU’s Pino Global Entrepreneurship Center.

Erika Twani is CEO and a founding board member of Learning One to One Foundation, which aims to improve the potential of today’s youth. Before that, she was the education industry director for Microsoft Latin America’s Multi-Country Region and received the Microsoft Circle of Excellence Award. Twani also owned a company in Brazil, which she grew to $60 million in sales in six years. She serves on FIU’s Pino Global Entrepreneurship Center Board of Advisors.

Ricardo Weisz is an international marketing expert in startups, brand development, licensing and marketing of products and services and has successfully headed various ventures. During his tenure with The Walt Disney Co., he launched operations in multiple countries, was a Zone VP and GM, and headed a Latin American SBU. The angel investor has held board positions including Orangi Corp., Consult A Doctor, Miami Innovation Fund, The Winner’s Circle and New World Angels.

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Miami Dolphins slam Norman Braman, Marlins Park deal

The Miami Dolphins ramped up their public campaign for a tax-funded stadium renovation this week, buying full-page ads against their top critic and trying to distance the plan from the unpopular Marlins deal.

The team bought an ad in Tuesday’s Miami Herald and El Nuevo Herald knocking auto magnate Norman Braman’s criticism of the Sun Life Stadium deal, which would have Florida and Miami-Dade split the costs with owner Stephen Ross for a $400 million renovation. The Dolphins would pay at least $201 million, with taxpayers using state funds and a higher Miami-Dade hotel tax to pay $199 million.

In a fact sheet sent to media Tuesday morning, the Dolphins listed ways their deal differs from the 2009 Marlins deal. First: Ross, a billionaire real estate developer, would use private dollars to fund at least 51 percent of the Sun Life effort, compared to less than 25 percent from Marlins owner Jeff Loria. Second, Sun Life helps the economy more than the Marlins park does.

“Just because the Marlins did a bad deal doesn’t mean we should oppose a good deal where at least a majority of the cost is paid from private sources and more than 4,000 local jobs are created during construction alone,” the fact sheet states. And while the Dolphins’ Miami Gardens stadium has hosted two Super Bowls since 2007 and is in the running for the 2016 game, “Marlins Stadium does not generate the ability to attract world-class sports events -- other than a World Series from time to time depending on the success of the team.”

NFL teams play eight home games a year if they don’t make the playoffs, while baseball teams have 81.

Miami and Miami-Dade built the Marlins a $640 million stadium at the site of the Dolphins’ old home at the Orange Bowl in Little Havana. The Marlins contributed about $120 million and agreed to pay between $2.5 million and $4.9 million a year for 35 years to pay back $35 million of debt the county borrowed for the stadium. As a publicly owned stadium, the Marlins ballpark pays no property taxes. Most of the public money came from Miami-Dade hotel taxes, along with $50 million of debt tied to the county’s general fund.

Sun Life is privately owned and pays $3 million a year in property taxes to Miami-Dade. It currently receives $2 million a year from Florida’ s stadium program, a subsidy tied to converting the football venue to baseball in the 1990s when the Marlins played there. The Dolphins also paid for a second full-page ad with quotes from leading hoteliers in Miami-Dade endorsing the stadium plan. Among them: Donald Trump, whose company recently purchased the Doral golf resort. “Steve Ross’ commitment to modernize Sun Life Stadium -- while covering most of the construction costs -- is the right thing for Miami-Dade,’’ the ad quotes Trump as saying.

Also on Tuesday, Ross and team CEO Mike Dee sent a letter to Miami-Dade Mayor Carlos Gimenez and county commissioners requesting negotiations over the stadium deal. The letter said the deal Ross unveiled last week is a “baseline for debate” and asked for talks. The letter also urged the commission to adopt a resolution proposed by Commissioner Barbara Jordan endorsing the state bill that would allow taxes for Sun Life. The resolution is on the agenda for Wednesday’s commission meeting.

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Existing home sales and prices rose in Broward in December

South Florida’s housing recovery is on strong footing.

In Broward County, the median price of an existing single-family home surged 21.1 percent to $230,000 in December from a year earlier, according to the Greater Fort Lauderdale Realtors.

The median price of an existing condo or townhouse in Broward in December jumped 24.7 percent to $95,100 year over year, the group said.

Sales of single-family homes in Broward climbed 14.9 percent in December year over year while the volume of condo and townhouse closings increased 4.7 percent over the period.

The inventory of single-family homes in Broward fell 35.5 percent in December from a year earlier, while the inventory of condos and townhomes on the market declined 25.2 percent year over year, the Fort Lauderdale group said.

“Buyers are quite surprised there is not more inventory after everything they have been hearing,’’ said Eyvonne Kafourus, an agent with Prudential in Fort Lauderdale. “I see a lot of people coming in from other states, for job transfers and retirement.’’

“Buyers are getting aggravated because they are losing deals,’’ said Charles Bonfiglio, president of the Greater Fort Lauderdale Realtors. “Eighty to 90 percent [of sales] are multiple offer situations. They’ve got to move quickly.’’

The median days on the market for a single-family home in Broward declined to 37 days in December from 56 days a year earlier, the Realtors group said.

Florida has been seeing a flow of new arrivals after a period of exodus during the downturn.

“We’ve obviously turned the corner. We’ve noticed inventory tightening up,’’ said Philip Vias, a broker associate with Prudential in Fort Lauderdale.

Vias said more buyers seem to be coming in from the Northeast. “What’s held things up is homes weren’t selling up north. North it’s starting to trickle down.’’

Statewide in Florida, single-family home sales climbed 15.8 percent in December from a year earlier as the median price increased 14.1 percent to $154,000.

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