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SEPTEMBER 2016 SFBWMAG.COM 7.95 Dennis Cunningham Entrepreneurial Spirit Where can we help you next Over three decades of experience advising clients on strategic acquisitions and dispositions and providing landlord representation tenant representation property management and construction management services. We bring you real estate solutions around the block or around the world. Fountain Square Boca Raton FL A 241 000 square-foot Class-A office property consisting of three buildings surrounding a cafe courtyard and a grand fountain. Minutes to I-95. Flagler Waterview West Palm Beach FL Stunning space exquisite rates Enjoy Class-A office space with stunning water views and fantastic amenities close to I-95 and the hospital. City Centre Palm Beach Gardens FL A 93 700 square-foot office mixeduse plaza in Palm Beach Gardens offering retail and office tenants excellent choices at great rates. Golden Bear Plaza Palm Beach Gardens FL A 243 000 SF Class-A office complex with beautiful Intracoastal and ocean views with lush landscaping. Located just north of PGA Boulevard on US 1. Centrepark Office Buildings West Palm Beach FL A 479 000 square-foot collection of Class-A office buildings with access to everything... I-95 PBIA downtown and more. If you need it we ve got it 4400 PGA Boulevard Palm Beach Gardens FL This newly renovated 10-story 80 000 SF office building enjoys a highly visible and prestigious location at the intersection of PGA Blvd. and I-95. West Palm Beach 561 471 8000 Boca Raton 561 394 5200 SEPTEMBER 2016 3 How long have you dreamed of living on the water Right now Riva is building the perfect blend of both. The carefree living of a stylish condominium. Plus the casual leisure of a home on the water. Whether you travel by paddleboard or speedboat. Whether you host dinner parties for 20 on your oceanview terrace or moonlight cocktail parties on your private rooftop. Whether you relax at the gym and lap pool or indulge at the spa and sundeck. The elegant lifestyle at Riva is everything you expect in luxury waterfront living. PREMIER DEVELOPERS We are pledged to the letter and spirit of the U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race color religion sex handicap familial status or national origin. Oral representation cannot be relied upon as correctly stating representations of the developer. For correct representations make reference to the documents required by section 4 SEPTEMBER 2016 How long have you dreamed of living in the city And whether your home will be an exceptionally large 2 bedroom with sunsets and city lights a 3 bedroom with a 60 foot terrace over the river or a two-story penthouse with a private pool you ll find it under construction at Riva today for move-in next season. From 700K to over 3 million. Dream no longer. Visit our new sales center at 1200 E. Las Olas Boulevard. 954.233.3288. 718.503 Florida Statues to be furnished by a developer to a buyer. Obtain the property report required by federal law and read it before signing anything. No federal agency has judged the merits or value if any of this property. All features dimensions drawings graphic material pictures conceptual renderings plans and specifications are not necessarily an accurate depiction and are subject to change without notice and Developer expressly reserves the right to make modifications. TABLE OF CONTENTS 12 SPACES 62 LAW The Ocean Reef Club gets its first new condo in nearly two decades Jury to decide whether auditor was negligent in bank collapse 74 THE FAMILY OFFICE 76 WEALTH 82 We love Desi How to make sure wealth transfers smoothly to a surviving spouse 16 ONE LINERS 26 PROFILE 66 NONPROFIT 68 TECH HUB Our new Twitter-like feature on regional news Actionable steps to take if your board seems dysfunctional GOVERNANCE How insurance creates liquidity and avoids complications in an estate HISTORY VIEWPOINT Don Cook brings entrepreneurial know-how to Broward College 32 HEALTH CARE 36 HOSPITALITY A Miami Beach startup finds a natural transition to the internet of things What s behind the surge in urgent care centers across the region 70 SALES STRATEGIES Are you winning the battle Rogerio Fasano brings his Brazilian and Italian flair to South Beach 72 PEOPLE PASSION What do you bring to your team AND PROFITS 44 SPECIAL REPORT 52 REAL ESTATE Hispanic Heritage Month Our roots of diversity pre-date Cuban exodus Our quarterly report on trends in office and industrial space 56 CEO CONNECT Marlins President David Samson isn t afraid to speak his mind 22 Perfect Vodka s Dennis Cunningham endures entrepreneurial challenges COVER STORY You earned it we protect it For more than 75 years Brown & Brown has met the needs of the mass a uent community. Signi cant personal assets and wealth require a higher level of attention o en with unique coverage requirements not available on standard insurance policies. Our personal approach helps to identify client s long-term goals and create a customized risk management program which adjusts along with the client s nancial pro le. Linda Carry Veronica Jimenez Ann Marie Abreu Michelle Bergin Fort Lauderdale s Private Client Group Fort Lauderdale Division - 1201 West Cypress Creek Road Suite 130 Ft. Lauderdale FL 33309 Ph. 1-800-330-3241 Fx. (954) 771-9192 privateclientgroup bb Auto Aircra Bonds Condominium Collectables Flood Health Bene ts Homeowners Liability Marina Personal Property Umbrella Workers Comp LETTER FROM THE EDITOR People Places & Really Big Things Powering your bottom line right solution. right service. At Any time. 1-800-385-3187 There s not much that misses the eye of David Samson president of the Miami Marlins. During SFBW s CEO Connect at Marlins Park we were served up a variety of tasty hors d oeuvres including grilled cheese sandwiches with thick slices of bread. That was just comedic material for Samson when he was asked how well manager Don Mattingly was doing and a server was in sight. I can t believe the food we are serving. It s not finger food Samson exclaimed eliciting laughter from the audience which only prompted him to continue his shtick. Did anyone take this while you are walking around Are Editor-in-Chief Kevin Gale you telling me someone is going to take this while we have a conversation That s good networking Sorry about that. We re going to have to cut those in quarters. I have to do everything. I m just kidding. I m totally not though. Eventually Samson says Mattingly has been great although it s super hard not to want to get involved. There are some other great personalities in this issue as well. If you have wondered how Perfect Vodka s name ended up on the amphitheater in West Palm Beach meet Dennis Cunningham. He has a track record of success in entrepreneurship but talks openly about how he got hammered by economic downturns as well. He s doing well enough now though that he s ordered a million extra liters of his vodka just in case any supply issues emerge. I met Don Cook at the launch party for the business accelerator at Broward College s Las Olas campus and during an interview I gained a deeper perspective on his background with startup companies one of which is next door and is helping hospitals bring their systems into the cloud. I didn t get to meet Rogerio Fasano in person but I had an amiable telephone chat with the hotelier who was in Sao Paulo and getting ready to go to his other home in Rio de Janeiro and catch some of the Olympics. Fasano might be a bit of an unknown quantity in South Florida but he s a rock star in the hotel and restaurant field in South America especially Brazil. Our table of contents page shows an image of the Hotel Fasano Rio de Janeiro. The renderings of the Fasano Hotel and Residences Miami Beach show the area is going to get another amazing project. (Add to the list our Spaces feature on the new condo at the Ocean Reef Club in Key Largo.) There s also a new feature in this issue six pages of One-Liners our tweet-like synopses of key news you might have missed throughout the region. Kevin Gale 8 SEPTEMBER 2016 Owned and operated by the City of Fort Lauderdale FXE offers a diverse range of aviation services and amenities. Our new U.S. Customs and Border Protection facility now offers extended hours 8 a.m. to Midnight as well as a Global Entry kiosk with expedited service for eligible travelers. This facility also offers the Local Boater Option (LBO) Program where participants may report their arrival to U.S. Customs and Border Protection by calling in when they arrive in U.S waters dock their vessel and then report in person to our facility. In today s global business environment service is essential security is vital and time is more valuable than ever. That s why business travelers and general aviation professionals depend on Fort Lauderdale Executive Airport (FXE). For effortless travel to the Caribbean South America and the world please visit WWW.FLYFXE.COM CHAIRMAN AND PUBLISHER EDITOR-IN-CHIEF AND SENIOR VICE PRESIDENT OF STRATEGY COPY EDITORS Gary Press gpress Kevin Gale kgale Jason Davis Keren Moros Creative CREATIVE DIRECTOR ART DIRECTORS Melanie Smit Alexander Hernandez Frank Papandrea Evelyn Robles Writers CONTRIBUTING WRITERS Gerald Czarnecki Chris Fleck Steve Garber Leslie J. Kraft Kevin Kaminsky Howard Kaye Martin Lenkowsky Darcie Lunsford Julie Neitzel Arnold Rosenberg Greta Schulz Photographers Downtown Photo Fort Lauderdale Thomas Rollo Larry Wood Managing Director CLAYTON IDLE cidle rlopez gscott Market Directors LORI CASTLE JORDAN KNOWLES-BARTLEY lcastle jknowles OPERATIONS DIRECTOR RICH LOPEZ GAIL SCOTT DIRECTOR OF MARKETING & EVENTS MARKETING MANAGER Monica St. Omer monica Jennifer Barb jbarb Estefania Marin emarin Editorial Advisory Board Marc Brotman Brotman Nusbaum Ibrahim Founder and Partner Bob Birdsong OK Generators President Rick Case Rick Case Automotive Group Owner Monroe Gang Atlantic Partners CEO Gerald Greenspoon Greenspoon Marder Co-managing Director Howard Kaye Howard Kaye Insurance Michael Kaufman Kaufman Lynn Construction Founder President and CEO Michael Keeby Brown & Brown of Florida Executive Vice President Jeremy Larkin NAI Miami President Alan Levan BBX Capital Founder Gerry Litrento BankUnited Senior Executive Vice President Steven Mariano SunCoast Holdings Chairman and CEO Neil Merin Merin Hunter Codman Chairman Ed Pozzuoli Tripp Scott President Chris Roberts Lexus of Kendall President Ron Shuffield EWM President Rachel Sapoznik Sapoznik Insurance CEO Terry Stiles Stiles Corp. Chairman and CEO Lisa Anderson TD Bank Vice President of Commercial Lending for Broward and Palm Beach Counties Mark Trowbridge Coral Gables Chamber of Commerce President and CEO Yamal Yidios Ytech International Jordan Zimmerman Zimmerman Partners Advertising Chairman and CEO SFBW Magazine 3511 W. COMMERCIAL BLVD. SUITE 200 FORT LAUDERDALE FLORIDA 33309 954.377.9470 FAX 954.617.9418 WWW.SFBWMAG.COM Manage Your SFBW Subscription Is SFBW arriving in your office with an outdated subscription label Contact Debra Curtis at dcurtis or (954) 377-9595 to give us updated information such as a new executive or someone no longer with your organization. Visit to see our digital content and sign up for our weekly newsletter 2016 SFBW magazine is published by Lifestyle Media Group all rights reserved. SFBW is a monthly advertising magazine. All contents are protected by copyright and may not be reproduced without written consent from the publisher. The advertiser is solely responsible for ad content and holds publisher harmless from any error. NATIONAL JETS SPACES 121 Marina will be the first new condo at the Ocean Reef Club in nearly two decades 12 SEPTEMBER 2016 SPACES Keys Please KEY LARGO S OCEAN REEF HAS A NEW COMMUNITY BY LESLIE J. KRAFT SEPTEMBER 2016 13 SPACES Units will start at 4.6 million and range up to 4 695 square feet under air Aimed at merging modern luxury with the upscale tradition of Key Largo s Ocean Reef Club 121 Marina is the first new residential condominium development to be built within the community in nearly two decades. The project which includes 29 threeand four-bedroom residences is situated on the marina in the heart of the Ocean Reef complex which is at the northern tip of Key Largo and has a history dating to a fishing camp that started in 1948. It has 2 500 acres two 18-hole golf courses shopping an airstrip and school from pre-kindergarten to eighth grade. The condominiums were designed by Stofft Cooney Architects and the Coral Gables-based architecture and interior design agency Edge of Architecture. Units start at 4.6 million and are configured in three-story buildings. Floor plans range from 2 971 square feet to more than 4 695 under air. The designers emphasize fine finishes to accommodate an entertaining- and outdoor-oriented lifestyle. Kitchens have Italian cabinetry stone countertops Sub-Zero and Wolf appliances plus an integrated espresso cappuccino bar area with Sub-Zero wine coolers. Each residence prewired for high-speed internet and smart home Getting fit with a marina view technology also boasts a terrace of more than 500 square feet--with some more than 1 000. All feature summer kitchens with a barbecue and sink as well as sunset views. There are two parking spaces and one golf cart space per residence along with electric vehicle charging stations. 121 Marina which has 750 feet of marina footage has a prime position within the Ocean Reef complex it s within walking distance to the Buccaneer Island swimming lagoon and beach Carysfort Hall and the Fishing Village shops. It includes a junior Olympic-sized swimming pool with lap lane and deep lounge steps. Private pool amenities include cabanas sun deck and barbecue area. A fitness center overlooks the pool deck and marina and other recreation areas include a putting green and yoga lawn. There s also a special club room planned for children to be outfitted with multimedia facilities and gaming tables. All residents of the controlled access community will have access to personalized concierge services and private individual storage areas which are considered a premium find in the Florida Keys. 14 SEPTEMBER 2016 Developing Optimism. Building Vision. Shareholders Daniel M. Mackler Miami and Danielle DeVito-Hurley Fort Lauderdale Florida s landscape is rebounding and Gunster s real estate team is optimistic about this resurgence. As momentum builds our vision is to help clients accommodate growth while optimizing opportunities. Gunster lawyers strive to deliver strategic value with an integrated single-source approach to our clients real estate needs. From Jacksonville to Miami our attorneys seek creative solutions across all aspects of land use and acquisition to property rights eminent domain and environmental law. Our team approach to the comprehensive development of complex commercial residential and industrial projects helps our clients navigate business challenges in a global economy. As a unified firm networked across 13 Florida offices Gunster is statewide and state wise. (800) 749-1980 SEPTEMBER 2016 15 ONE LINERS PALM BEACH RedSky Capital of Brooklyn paid 125 million for the Esperant Corporate Center 222 Lakeview Ave. West Palm Beach. Related Companies and Hilton Hotels are discussing a second hotel at the Palm Beach County Convention Center. Office Depot (Nasdaq ODP) has launched the WorkPro Flex collection-- tables that can be used separately or clustered together. Stephen Ross Related Companies plans a 300 000-square-foot office tower behind the First Church of Christ Scientist 138 Lakeview Ave. West Palm Beach. Cloud Computing Concepts (C3) of Delray Beach has an agreement with China Telecom Americas to offer its communication services to its clients. Isram Realty Group is seeking approval for a 100 million waterfront residential project at the southeast corner of Woolbright Road and South Federal Highway in Boynton Beach currently the site of a shopping center. LifeMD of Boynton Beach is testing a telemedicine program for students in the Los Angeles Unified School District. The 60 million makeover of the Gulfstream Hotel in Lake Worth is being delayed by litigation over its height. 16 Executive Director Tony T. Brown has been dismissed from the Riviera Beach Community Redevelopment Agency amid the city s quest to seek private investment in the marina area. Florida Atlantic University is having an open call to attend its Entrepreneur Bootcamp on Monday nights starting Sept. 19 ( bootcamp). The Florida Atlantic University Foundation has a Tuesday night series of entrepreneurial topics including The Predictive Entrepreneur Disruptive Technology and how to Establish a Foreign Business ( SpecialTopicsSeries). Amtec I LLC and Catexor LP filed with the city of Boca Raton to build an eight-story 280unit apartment building and 24 townhomes near the Southwest Corner of Congress Avenue and Northwest 65th Street in the Park at Broken Sound. New rules regarding events in Delray Beach are prompting the relocation of the 2017 Garlic Festival Feb. 10 to 17 to John Prince Park in Lake Worth. Kolter Group is wrapping up construction on the first 30 townhomes at its Moderne Boca development at Military Trail and Spanish River Boulevard. Jeff Foxworthy will be the featured entertainer at the 11th annual Boca Raton Concours d Elegance event Feb. 10-12 in Boca Raton. Developer Mike Masanoff is seeking 80 million in tax incentives to get financing for his 400 million transit village in downtown West Palm Beach. ONE LINERS BROWARD Newgard Development Group has obtained a 35.6 million construction loan from Dallas-based Hall Structured Finance for the 129-unit Gale Boutique & Residences Fort Lauderdale Beach. Dreamweaver Brand Communications celebrated the opening of its new office in Deerfield Beach with an American Marketing Association agency crawl. South Florida Community Care Network a safety-netprovider service network owned by the Broward Health and Memorial Healthcare systems has changed its name to Community Care Plan. Bridge Development has selected Premier Design Build to construct two warehouses totaling 306 855-square-feet at 2200 W. Sunrise Blvd. just southwest Interstate 95. First Green Bank is opening a branch at 12 SE 12th St. Fort Lauderdale with veteran banker Keith Costello as president and CEO. Patriot National (NYSE PN) in August was given an enhanced acquisition offer by Ebix (Nasdaq EBIX) an on-demand software and e-commerce services company. Waterstone Holiday Inn has proposed a 142room 135 000-squarefoot 25 million hotel at 2100 S. Federal Highway Fort Lauderdale. Avison Young is the listing agent for 100 000 square feet of office and retail space at Galleria Corporate Centre a 13-story tower at 2455 E. Sunrise Blvd. Fort Lauderdale. 18 Crestron which offers audiovisual and electronics automation has opened its first design showroom in South Florida nearly 4 000 square feet at the Design Center of the Americas in Dania Beach. BFC Financial Corporation and BBX Capital Corporation (NYSE BBX) Fort Lauderdale companies that have overlapping ownership have reached a merger agreement. The Fort Lauderdale City Commission is studying a citizen petition drive that seeks a one-year moratorium on large-scale construction projects east of Federal Highway. Guy Harvey s Outpost Resorts of Fort Lauderdale is scheduled to launch its first guided dive trip to Cuba on Sept. 14. Executive search firm McAleer Gray which has offices in Denver and New York has opened an office in Fort Lauderdale and named Tony Treglia managing director. The former GM of RoboVault Susan Susan D. McGregor has bought its fine-art services business and named it Bellissima Luxury & Fine Art Services. Chris Lightcap and Jonathan Azevedo of PNP Robotics are planning the launch of a Kickstarter campaign for Zencrate a line of dog dens that include a memory-foam mattress fan motion-activated music and optional Wi-Fi-connected camera. Ocean Land Investments reports it has finalized permitting and sold half the units at AquaBlu a 17-story 35-residence condominium overlooking Bonnet House in Fort Lauderdale. SEPTEMBER 2016 19 ONE LINERS MIAMI-DADE 20 Weingarten Realty Investors has closed on the 285 million purchase of The Palms at Town & Country shopping center in Kendall. The inaugural S.H.E Bacardi Women s Summit on Sept. 29 at the Hilton Miami Downtown will provide a daylong series of speakers and panels to celebrate women s empowerment (bacardiwomen-in-leadership. com). Terra Group has launched leasing at Bayshore Grove a 98-unit luxury rental building at 2655 S. Bayshore Drive in Coconut Grove. Developers Leonardo Ambard and Salvador Di Lodovico Taraschi are partnering on 88 Hundred Collins in Surfside which will have 12 loft units priced from 650 000 to 1.7 million. Spain s struggling Banco Popular Espanol SA may consider selling TotalBank of Miami according to a Spanish newspaper. Jackson North Medical Center located near the Golden Glades is getting a 121 million expansion and renovation with Gresham Smith and Partners handling the design work. Hilton Worldwide is planning a 184-room 150 000-square-foot hotel with a 6 200-square-foot ballroom on the Kendall campus of Baptist Health South Florida. The St. Regis Bal Harbour Resort expects to complete 35 million in renovations by the end of the year including a new Greek restaurant three expansive four-bedroom guest suites and expanded lobby space. Consulting and accounting firm BDO USA is acquiring Coral Gables-based Goldstein Schechter Koch which has more than 100 staff members and offices in South Florida. John W. Kozyak of the Kozyak Tropin & Throckmorton law firm has been appointed chairman of the newly formed Parkinson s Foundation with offices in New York and Miami. Italian airline Meridiana will begin serving Miami International Airport with two weekly flights from Milan starting Dec. 2. Miller Construction of Fort Lauderdale has completed the 175-suite Surfside Residence Inn by Marriott at 9200 Collins Ave. in Surfside. SEPTEMBER 2016 21 COVER STORY The Entrepreneurial Spirit FOR PERFECT VODKA CHIEF DENNIS CUNNINGHAM IT S ALL ABOUT FINDING THE POSSIBILITIES BY ARNIE ROSENBERG Dennis Cunningham s story begins with Steve Jobs and Steve Wozniak the iconic founders of Apple. But it s not the story you probably think. He sold them stereo equipment. A 19-year-old college dropout in the mid-1980s Cunningham worked in a Silicon Valley stereo store where Jobs and Wozniak were his customers and just normal people. Since then it s been anything but a storybook journey for Cunningham 52 who s now chairman and CEO of Palm Beach Gardens-based Perfect Brands owner of ultra-premium Perfect Vodka. If the label sounds familiar that s not surprising. Cunningham of Jupiter acquired the French vodka brand in late 2013. Two years later he signed a sixyear sponsorship deal for the 20 000-seat amphitheater at the South Florida Fairgrounds west of West Palm Beach. Dropping out of college at a young age got me a lot less opportunity so I had to create opportunity says Cunningham who spent all of six weeks attending California State University in Hayward before getting bored. With two highly educated brothers and a father with two master s degrees I was the rebel who broke the mold so I always had to prove I could go beyond that without a degree he says. It was kind of a Let me prove you wrong type of thing. He caught the technology bug from Wozniak Jobs and others and began blooming as an entrepreneur when he met inventor John Pori--Cunningham describes him as a genius --and formed his first company Advanced Medical Technologies to market his products. The company fizzled after some small successes but Cunningham was hooked on businesses and on making his own opportunities. The sales part took a lot of personality he says and as I got older I realized people my age and even older men especially got into their routine and didn t want to get out of their comfort zone a lot. I tend to enjoy the opportunity that s a little The amphitheater gives Perfect Vodka plenty of social media hits uncomfortable and like what the unknown brings me because it s a challenge. After a brief stint as a self-taught concert promoter he made a name for himself in California in the early 1990s by hawking mortgages on the radio. He brought his Equity Funding Mortgage business model to Florida when he moved to Jupiter several years later. Even though there already were about 41 000 mortgage brokers in Florida when he got his license here in 1995 it blew up here Cunningham remembers. He was making up to 70 000 a week in originations and was advertising heavily on local radio stations. Still money never really was the focus he says. Money tends to follow you if you do well at something. That was always the basis for my success. I never really thought about the money. Always looking to stand out in the crowd Cunningham parlayed his mortgage company into a real estate company title company and insurance company to capture more of his clients business. In 2008 he drew on his technology background to launch which matches homeowners looking for contactors and contractors looking for work. The idea was to create 22 SEPTEMBER 2016 SEPTEMBER 2016 23 COVER STORY Dennis Cunningham wants to explore more deals with amphitheater operator LiveNation a one-stop shop for consumers in the real estate title mortgage and home improvement fields. Cunningham s companies had faced headwinds after the 9 11 terrorist attacks but the housing collapse in the Great Recession was even worse. BidABuilder is the only one of the companies surviving today and he s negotiating its sale to a public company. It wasn t until 2013 that a friend of a friend asked for Cunningham s help marketing an ultra-premium brand of vodka he d created. It was called Perfect 1864 Vodka. Distilled in the Vosges Mountains in the Brie-Champagne region of France-- and using Vosges water one of the world s purest-- it was like drinking air Cunningham said of his first taste. They made this vodka so smooth I thought he was joking with me. I made him open another bottle. Call it love at first sip. But how Cunningham wondered would he get people even to taste it The answer or at least a big part of it came about a month after acquiring the brand. Waking up in the middle of the night he scribbled down the concept for AirTab an app that now allows you to send a drink or a dinner from your smartphone and have the recipient redeem it on his or her phone. Vodka drinks of course are made only with Perfect Vodka. And just as with Cunningham s mortgage business AirTab seems to offer natural opportunities for vertical integration. Nothing like this existed he says with excitement about the potential of his newest venture. We have more verticals about to launch. A restaurant owner can send out dinner specials. Charities or political parties can bring us customers buy drinks through AirTab and get 50 percent of the profits. With volume I can make deals with distributors to carry my vodka in places that don t already have it. And the amphitheater sponsorship Cunningham won t reveal the cost but it s close to priceless. It s all about the hashtag-- PerfectVodka--that s part of so many social media posts coming out of every concert. Last year it meant more than 50 million social media impressions and that shows up on the bottom line Cunningham says. Sales have been going up our distributor is ordering more and we had to order more product from France he says. I made 1 million extra liters ahead of time just in case there s a drought or something else weird. The amphitheater naming rights-- believed to be the only deal in the country involving spirits--has proven so successful Cunningham says that he is talking with LiveNation which operates the venue here to expand the model to other locations. He attends most of the concerts at Perfect Vodka. It s really fulfilling to look around at a 20 000-seat amphitheater and your name s there he says. And if people are holding a clear cup that s not beer it s most likely your vodka. In the end Cunningham s goal is to build up the Perfect Vodka brand and sell it within three years eyeing even a small slice of the 16 billion Japanese distiller Suntory paid for Beam in 2014. Even if he pulls that off Cunningham probably won t be on a track toward retirement. Chances are he ll be off to his next venture. I enjoy the mental stimulation he says. I get mentally bored really quickly. I don t watch a lot of TV. I don t sit around a lot. Whenever I see something not being done as best as it can be I wonder What would I do How would I do that 24 SEPTEMBER 2016 LOVED ONES NEED TO KNOW. TAKE TIME TO RECORD WHAT YOUR Thinking about how your loved ones will move on when you re no longer with them is never easy. At MassMutual South Florida we understand the difficulty but also know how important it is to plan ahead. By taking the time now to organize and write down what matters most to you you can help make things easier for the people you love. Our planning guide What My Loved Ones Need to Know will help you record financial information locations of important documents key contacts wishes and more. Contact us today for your free copy. Erik C. Sussman CLU ChFC CFP President & CEO MassMutual South Florida 1000 Corporate Drive Suite 700 Fort Lauderdale FL 33334 954-938-8800 ErikSussman LIFE INSURANCE RETIREMENT 401(K) PLAN SERVICES DISABILITY INCOME INSURANCE LONG TERM CARE INSURANCE ANNUITIES MassMutual Financial Group refers to Massachusetts Mutual Life Insurance Co. (MassMutual) its affiliated companies and sales representatives. Local sales agencies are not subsidiaries of MassMutual or its affiliated companies. Agency officers are not officers of MassMutual. Insurance products are issued by MassMutual Springfield MA 01111 and its subsidiaries C.M. Life Insurance Company and MML Bay State Life Insurance Company Enfield CT 06082. CRN201707-194531 26 SEPTEMBER 2016 SILVER LINING CATERING SLEventCatering S AV O R I N G S U M M E R the LOOK INSPIRATION The easiest way to keep savoring summer at your event is to choose a venue with views of nature whether that s the ocean luscious greenery or just a spectacular view of the sunset or skyline. the DRINK Rum Swizzle 4 oz Gosling s Black Seal Rum 4 oz Gosling s Gold Rum 8 oz Pineapple juice 8 oz Orange juice .75 oz Grenadine 6 dashes Angostura bitters the FOOD grilled peaches apricots plums bird seed brittle and rosewater yogurt ice cream Learn more about our specialty services. P 954-917-1020 ext. 314 PROFILE Don Cook plays a key role in Broward College s evolution BY KEVIN GALE PHOTOGRAPHY BY DOWNTOWN PHOTO BACK TO SCHOOL SEPTEMBER 2016 28 PROFILE Don Cook is bringing a healthy dose of private-sector experience to Broward College s focus on entrepreneurship and technology. Cook was the chief marketing officer of a Sunrise education company that was acquired by Taleo Corp. (Nasdaq TLEO) for 125 million. He is also a co-founder of iCare an electronic health records company founded in 2011 by Learn. com founder Jim Riley. In his new role at Broward College Cook is executive director of marketing and strategic initiatives. He oversees marketing for one of the nation s largest colleges with more than 60 000 students and also manages BC s business accelerator and The Venture Formula a 14-week ramp-up program for startups. Cook grew up in southeast Philadelphia and was a speedy running back on his high school football team--his 40-yard dash time was 4.4 seconds--before attending Westchester University where he studied business management. He decided he wanted to live in Fort Lauderdale after a family friend offered him a summer job at a hotel on Fort Lauderdale s beach. I went to The Elbo Room my first night there he says. I said I m going to move to Fort Lauderdale when I graduate. He later worked for attorney and lobbyist James Blosser. He taught me everything there is to know about politicians networking marketing and doing things the right way Cook says. Cook became involved in campaigns for Charlie Crist Tom Gallagher Jeb Bush and George W. Bush. He also worked with Fort Lauderdale Air & Sea Show promoter Mickey Markoff for two years and then met s founder Jim Riley through a friend. Cook was one of the first employees at the company which started in 1999. offered e-learning courses and a web-based learning system for customers including businesses. What Cook learned will be helpful for running BC s accelerator such as how to grow a business on a shoestring budget the viability of products product marketing and communications. was one of the early developers of SaaS--software as a service or internet-based applications. That was the startup life Cook says. I was lucky enough to have mentors that let me fail and figure it out myself. After was acquired by Taleo in 2010 Cook stayed on as vice president of marketing and traveled back and forth to California. The company wanted him to move permanently. Cook and Riley talked about what they were going to do next. Without a plan Riley took half a floor in the Bank of America building on Las Olas Boulevard and talked with industry analysts and bankers about ideas. All roads led back to health care for us Cook says. Health care was the least tech-savvy industry but government funding and revenue was going up. Hospitals were spending immense amounts of money--up to 1 billion in long-term contracts--to install electronic health records in traditional data centers. iCare took the U.S. Department of Veterans Affairs Vista system and put it in the cloud. It is the first cloud-based electronic health care record system to get federal certification for inpatient use throughout a hospital. Within four months of taking the system live in January 2015 iCloud had signed up 20 hospitals. The company now has 50 developers and offices in San Francisco Sunrise and Fort Lauderdale. Cook had a couple of reasons for moving on. One is his personal priorities have changed. He was married two years ago and now has a one-year-old daughter. The other I ve done private sector and now it s time to give back Cook says. It s a great thing I can help out so many students here and the college as whole. It s just an awesome environment. He wants to help the college become more entrepreneurial such as taking an equity stake in companies that use the accelerator. There s a shortage of venture capital in South Florida but in Silicon Valley that s all they talk about Cook says. The accelerator wants to collaborate with Christopher Malter and Thomas Buchar who were profiled by SFBW in June for launching The South Florida Accelerator. That accelerator recently added Neil Adams as managing director and chief financial officer. He is the former CEO of Draper Fisher Jurvetson which helped fund Twitter SpaceX and Tesla. Broward College is also looking to be entrepreneurial in other ways. It has been seeking proposals for a mixed-use redevelopment of the downtown Fort Lauderdale campus on Las Olas Boulevard with Jonathan Schwartz the college s associate vice president of operations planning and real estate. The college s campuses in general have a lot of potential for their real estate Cook says. Outsourcing is a possibility with the college bookstores and cafeterias. Broward College is looking at closed-circuit video screens for advertising and naming rights for buildings Cook says. Paralleling what hospitals do with iCare the college has partnered with software firm Workday on an enterprise resource system that will handle such processes as human resources enrollment and financial aid Cook says. Broward College is the first to develop the portal with Workday and the goal is to sell licenses to other colleges Cook says. Chief Technical Officer Patti Barnie has played a key role in putting general education class materials on the portal as well which saved students 2 million in textbook fees last year Cook says. With all of the changes going on Cook is working on rebranding the college which he says is not your granddaddy s BCC [Broward Community College its former name]. It s a fullfledged college with bachelor s degrees. It s your first choice if you want to stay local. We re not the 13th grade anymore. SEPTEMBER 2016 29 Servicing Clients Nationwide and Globally 30 SEPTEMBER 2016 PIGSKIN IN PARADISE 2016 FLORIDA ATLANTIC FOOTBALL HOME SCHEDULE SOUTHERN ILLINOIS CELEBRATE FAU DAY 09.03 BALL STATE PARENT & FAMILY WEEKEND YOUTH DAY 09.24 CHARLOTTE FIRST RESPONDERS DAY 10.08 WESTERN KENTUCKY HOMECOMING 10.29 11.12 UTEP MILITARY APPRECIATION DAY OLD DOMINION SENIOR DAY 11.19 CALL 1.866.FAU.OWLS OR VISIT FAUSPORTS.COM TO FIND OUT MORE AND TO PURCHASE YOUR TICKETS TODAY. SEASON TICKETS AS LOW AS 60 SEPTEMBER 2016 31 SPECIAL REPORT SPECIAL REPORT Checking in at MD Now Urgent Care which will soon have 26 centers in South Florida Shortage of primary physicians spurring growth of urgent-care facilities BY MARTIN LENKOWSKY Call them the health-care industry s answer to Starbucks. They re sprouting up wherever you look. You can find one at the mall or in the strip shopping center two minutes from your home. They re called urgent-care centers and they ve become the medical preference for many patients and the darling of insurance companies. They re also creating competition for traditional medical practices as well as each other with one chain soon to have 26 locations. Patients like them for their readily available appointments and insurance companies like them because reimbursement costs are lower than hospital emergency rooms. Most health insurance plans cover urgent-care centers says Rachel Sapoznik owner of the Sapoznik Insurance Agency in Miami and actively encourage their use. They promote them by having a lower co-payment than an ER visit she says. It s a big difference. An ER might have a 300 co-payment but the highest I ve seen at an urgent-care center is 75. Sapoznik points to two reasons for the huge growth spurt. The main reason is there s a shortage of primary-care physicians she says. These urgent-care centers have become your line of defense. Plus she says there s never a long wait. Sapoznik says patients seeking medical attention need to be mindful when selecting an urgent-care facility. Some hospitals are opening what they call urgent-care centers but are essentially off-site emergency rooms. You need to make sure it s really an urgent-care center she says. You ve got to be careful. You get billed and it s a problem. Let the buyer beware. All in all Sapoznik says patients seem to like using urgentcare centers. When we interview our clients they re happy with the services she says. However she voices a concern echoed by others in the medical community If someone has a longstanding serious medical condition they need to maintain continuity of medical care with their primary doctor. They should not look at urgent-care centers as taking the place of their primary doctors. GET A DOCTOR ... STAT 32 SEPTEMBER 2016 SPECIAL REPORT MD Now s Dr. Peter Lamelas Dr. Omar Rashid of Holy Cross Rachel Sapoznik Luis Bellmas Baptist Health South Florida s vice president for outpatient services agrees. Our philosophy is all patients should have a primary-care physician he says. Urgent-care centers are for episodic care. Baptist Health headquartered in Coral Gables has 17 urgent-care centers listed on its website as far north as Coral Springs. We actually opened our first one in 1990 Bellmas says. The initial reason was to decompress our ERs. They were very busy. The phenomenon has caught on. Patients love the quick turnaround. We noticed a lot of patients were coming from different areas. We wanted them closer to where people live and work. We were even getting patients from Broward County. Bellmas says the push today is for more outpatient services. It s more affordable and seems to be the way to go he says adding urgent-care centers are fine for minor illnesses and minor surgeries. It s for those who don t require full-blown ER services. We can do all the diagnostic workups. There are differences between hospital centers and independent centers Bellmas says. Some non-hospital (-affiliated) urgent-care centers might not be accredited he says. They may or may not follow ER guidelines. Hospital urgent-care centers will treat everyone not everyone does. Hospitals are typically accredited and comply with all standards. The biggest drawing card for urgent-care centers has been that they re cheaper than a hospital ER and have a comparatively short waiting time. Would that also be guaranteed with a hospital-owned urgent care center It depends on insurance benefits Bellmas says. It s usually up to insurance. Bellmas says hospital-affiliated centers have some advantages over private stand-alone facilities. I think most hospital urgent-care centers would have more diagnostic services he says. Typically hospital urgent-care centers offer an expanded menu of services and they re accredited. Fort Lauderdale s Holy Cross Hospital expects to open its third urgent care and imaging center its second location in Boca Raton on Aug. 15. It s basically to extend our geographic footprint says Mark Dissette Holy Cross senior vice president and HealthPlex administrator. In addition to the 350 physicians the Holy Cross network has throughout Broward and Palm Beach counties he says his organization also is establishing a presence with both urgent-care centers and imaging centers. Because of long waits at emergency rooms Dissette says hospitals are beginning to invest more in their ERs to make them more efficient. The demand is growing Dissette says. We are expanding. Urgent-care treatment is much faster. In a lot of metropolitan areas ERs are crowded. Jodi Laurence co-founder of Florida Health Law Center SEPTEMBER 2016 33 SPECIAL REPORT Baptist Health s Luis Bellmas Mark Dissette of Holy Cross Ortho Now s Dr. Alejandro Badia Attorney Jodi Laurence says her clients who have opened urgent-care centers seem to be doing well. She says opening one is not difficult. It really depends what state you re in she says. In Florida anybody can own a medical business. It s like a medical office. In Florida one doesn t have to be a doctor to open one. Laurence says clinics are growing because of demand yet there are differences compared to hospital emergency rooms. They cannot treat emergencies Laurence says. If someone has a heart attack an ER is required to stabilize that person. An urgent-care center doesn t have to do that. They don t have to take Medicaid. They don t have the same obligations. Urgent-care centers do not necessarily have to have a doctor on site but they are required to have a medical director who oversees day-to-day functions. In terms of rules and regulations urgent-care centers are treated as medical offices. Health care is highly regulated she says. Medicare is highly regulated. There s oversight by the state. A clinic license is required. The feds will also have oversight. Starting one she says is just a matter of hanging up a shingle. Many urgent-care centers have a family doctor on site to treat routine medical problems but one Miami-based group of urgentcare centers is specialized. OrthoNow treats only orthopedic and sports-related injuries says company spokeswoman Andrea Plasencia. OrthoNow was founded in 2010 in Doral by physician Alejandro Badia. It has six locations some owned partly by Badia others are franchises. The orthopedic industry is huge Plasencia says. This way you re seeing the right person at the right time. It costs less money. It alleviates the time to be treated. Plasencia says all OrthoNow facilities have X-ray machines and other imaging equipment on site. The company began franchising in 2014 and has seen growing demand. She says a patient seeking medical treatment for an orthopedic injury might otherwise have to wait weeks and months to get an appointment with a specialist. One of the largest non-hospital-affiliated urgent-care centers is MD Now Urgent Care which has 23 soon 26 centers throughout South Florida. The company s founder and CEO physician Peter Lamelas says his group is the largest urgent-care center provider in South Florida. Lamelas says MD Now s greatest asset is having a doctor on site at all locations although nurse practitioners and physician assistants also treat patients. Like others in the industry he says cost is the main driver of his company s growth. Emergency rooms can cost you an arm and a leg he says adding MD Now posts its prices in the waiting rooms and has contracts with most insurance companies with an average co-payment of 50. He says if patients come to one of MD Now s centers with a serious emergency a doctor can stabilize the situation and send them to an ER. Mainly he says urgent-care centers are a quick substitute for traditional family physicians when there s an immediate need for one. There are a lot of people here in South Florida who don t really need a primary-care doctor he says. They re young and healthy. 34 SEPTEMBER 2016 SEPTEMBER 2016 35 Time to trade the corner office for your own little corner of the world A Transworld business advisor can get you there. Every day Transworld Business Advisors connects quality top-paying acquirers with business owners ready to sell and move on to the next stage in their careers. 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SEPTEMBER 2016 37 HOSPITALITY An interior meets the outside at one of the beach houses planned at Fasano Residences and Hotel Miami Beach Leading Brazilian hotelier and restaurateur is making the revitalized Shore Club his first U.S. project BY KEVIN GALE COMING ASHORE Rogerio Fasano is promising something a bit different from the typical South Beach hotel at the transformed Shore Club. Fasano who operates nearly 20 restaurants and four hotels doesn t want to bash the other hotels on the beach. They are lovely he says but they tend to follow the same path of being crowded and noisy with pool parties on Sundays. He wants to create an experience that s elegant low-profile and chic. He s collaborating with architect Isay Weinfeld and developer HFZ Capital Group on a project that will create 67 residences and 85 hotel suites. The Shore Club will have extensive renovations and add the neighboring Cromwell Hotel which be renovated with preservation of its historic facade. The three-acre site will have a 250-foot swimming pool billed as the longest in Miami Beach and lush tropical gardens by Swiss landscape architect Enzo Enea. Construction SEPTEMBER 2016 39 HOSPITALITY The Fasano Residences and Hotel Miami Beach will have a 250-foot swimming pool is starting in November. The Fasano Residences and Hotel Miami Beach has a prime location at 1901 N. Collins Avenue straight east of the Miami Beach Convention Center. We love the location. We love the new project. We are sure it is going to be a huge success Fasano says in a telephone interview from Sao Paulo where his company Grupo Fasano is based. Fasano says he was honored to be invited to work on the project after HFZ enlisted Weinfeld with whom he has collaborated for 30 years. They re so close Weinfeld is the The Fasano Boa Vista godfather of Fasano s son. We love each other a lot. We fight each other a lot Fasano says. He was gratified when French designer Philippe Starck said in an interview that Fasano and Weinfeld were developing a relationship similar to the one Starck has with Ian Schrager who is sometimes called the inventor of the boutique hotel. Fasano aptly could be termed a rock star in South American hotel and restaurant circles with 15 restaurants and hotels in Sao Paulo Rio de Janeiro and Boa Vista in Brazil and Punta del Este in Uruguay. Upcoming hotels will be in Salvador Trancoso Belo Horizonte and Angra dos Reis in Brazil. Fasano restaurant in Sao Paulo has earned a coveted Michelin star. Fasano is a fourth generation restaurateur. His greatgrandfather was a restaurateur who moved from Milan to Brazil in 1902 and Fasano has fond memories of being in his grandfather s restaurant. That s why I love it and like it he says of being in the restaurant field. There was an interruption in the family restaurant business but Fasano was tasked by his father to help resurrect Fasano restaurant in 1982. Fasano subsequently found success by teaming up with Weinfeld on a restaurant in the Jardins area of Sao Paulo. Fasano said he dreamed for 10 years of becoming a hotelier. People from a hotel can never make a restaurant but the other way around is totally possible he says. He calls hotels more of a secure business while restaurants are more difficult because of all the details. Fasano says he first traveled to Miami in his youth saying it wasn t fun to visit because it was filled with retirees. It s incredible and unbelievable what s happened to Miami in the A living room concept for the north tower of Fasano s project in Miami Beach past three decades. It s a huge change he says. Now it s a fun city. It s full of different kinds of people. It s becoming really cosmopolitan. I think I ve never seen so much change except for maybe Berlin. In Miami Beach he wants to create a cool bar with a soundtrack of jazz and bossa nova music. It s kind of Latin but very elegant he says. His restaurant will combine his Italian-meets-Brazilian flair. He wants to attract locals because that s a key part of the recipe for success. That makes a huge difference he says. Fasano Residences and Hotel Miami Beach Amenities Poolside restaurant and bar garden-facing bar lobby bar spa and tness center and adjacent luxury hotel. Configuration ree towers ranging up to 22 stories. Unit prices 2 million to more than 10 million. Prime units include a triplex penthouse three two-story poolside beach homes and two two-story beach homes. Residence sizes From one bedroom (800 square feet) to four bedrooms (more than 4 000 square feet). Marketing Douglas Elliman Development Marketing. The Fasano Punta del Este Expected completion Late 2018. SEPTEMBER 2016 41 Entrepreneurs Organization The Entrepreneurs Organization (EO) is a global business network of 11 000 business owners in 150 chapters and 48 countries. Founded in 1987 by a group of young entrepreneurs EO enables small and large business owners to learn from each other leading to greater business success and an enriched personal life. The EO South Florida chapter is one of the top 5 chapters worldwide and helps leading entrepreneurs learn and grow through peer-to-peer workshops once-in-a-lifetime experiences and connections to experts. Visit Ask a South Florida Entrepreneur Joel Gandara Benjamin Marks President - Morro Capital LLC We operate multiple e-commerce sites where we sell niche clothing to consumers throughout the world. Proudest Accomplishment Building a completely vertical company that began with a 500 investment while in college to selling millions today. Greatest Challenges When faced with two great opportunities at the same time but we can only choose one...that is always a challenge You always want to make sure you make the best use of resources and time. What motivates me Acquiring businesses that fit our model and seeing them get turned around. We ve acquired four businesses in the last two and a half years and with each one we are motivated to continue to grow through acquisition. What do you love about what you do I love to sell products that truly make peoples day better. When our customers receive a package from us that makes a positive impact on their day that is rewarding We sell great products but I tell our team regularly that what we are really selling is a feeling so let s make it a great one Most memorable EO Experience I am new to EO but already I have found tremendous value in the people I have met. The relationships that I have begun to form on a personal and professional level have greatly paid off What distinguishes your company We are a vertical business that pivots quickly and responds to consumer demand by producing and shipping right away and giving customers that wow experience when they buy from us. Recent Book The 10X Rule by Grant Cardone CEO - Leveraged Equity Holdings Group LLC Commercial real estate investment and development in the USA and abroad. We focus on value added multi-family and retail property types in dense urban infill locations in DC MD VA WV KY PA NY FL and Puerto Rico. Proudest Accomplishment Building a Commercial Real Estate Portfolio of over 56 Million entirely from scratch. Greatest Challenges Acquiring managing and operating properties across 6 States and Puerto Rico and managing growth that is actually accretive as well as synergistic also finding and keeping talented managers. What motivates me Outside the box problem solving helping people and building strong foundations for personal and business growth for the long term. What do you love about what you do Using vision and creativity to spot and capitalize on long term trends and using math in a practical basis everyday. Most memorable EO Experience I just joined a few months ago but I would say being accepted into my fantastic forum I consider myself very lucky to have found such a great group. What distinguishes your company Having a long term perspective patience and being incredibly picky about what deals we execute on and which we avoid. We pride ourselves on being risk averse and focusing at least as much on the downside vs upside. That makes us unique especially in the development division of our firm. We also take pride in finding solutions for our tenants and clients by peeling back all the layers of the onion. Recent Movie The Upside of Irrationality Superfreakonomics How to Think Like a Freak by Thomas Sewell 42 SEPTEMBER 2016 ONL WHO YOU BUILD WITH Y IT DOESN T MATTER WHO YOUR ARE 15 UNIT FOR 1 500 000 East Little Havana 85 UNIT FOR 4 099 999 East Coral Gables 175 SW 7th St. 2101 Miami FL 33130 786.369.5515 A Better Life FOR DECADES WAVES OF LATIN AMERICAN THE UNITED STATES AND MANY OF THEM HAVE DONE JUST THAT BY MARTIN LENKOWSKY IMMIGRANTS HAVE HOPED TO FIND SUCCESS IN 44 SEPTEMBER 2016 SPECIAL REPORT HISPANIC HERITAGE MONTH SPECIAL REPORT HISPANIC HERITAGE MONTH Dancers at Calle Ocho parade April 6 1984 (Miami News Collection HistoryMiami Museum) SEPTEMBER 2016 45 Cuban refugees on the Red Diamond 1980. (Miami Herald Collection HistoryMiami Museum) Contrary to what many of us think Miami s path to becoming Latin America s gateway to the United States started well before Fidel Castro wrested control of Cuba in 1959 leading to the first major wave of Cuban migration. There was already a bit of a Hispanic influence says Maria Estorino vice president of museum collections at HistoryMiami Museum. It started about the time of World War II. By the mid 50s there were already 46 000 Cubans 30 000 Puerto Ricans and 20 000 people from other Latin American countries here. In some ways there was already some groundbreaking which a lot of people don t know about. That s one reason National Hispanic Heritage Month has particular resonance in South Florida. The month celebrated from Sept. 15 to Oct. 15 recognizes the many contributions Hispanic and Latin Americans have made to our nation. SFBW talked to an array of business academic and historical experts to gain insight into the region s Hispanic heritage. In the first two years following Castro s rise to power approximately 275 000 Cubans arrived on American shores Estorino says. However even before then Miami s Wynwood neighborhood was home to a sizable Puerto Rican community many of whom arrived here in the 1950s. One of them former Miami Mayor Maurice Ferre the city s first Hispanic mayor settled here with his family from Puerto Rico. Miami always had a Latin-American orientation says Estorino the child of Cuban immigrants who came to the United States as teenagers in the 1960s. For example the Fontainebleau hotel had a brochure in Spanish. Some people from Cuba wintered here and some came here to shop. In the mid 30s the family of famed entertainer Desi Arnaz--who starred on I Love Lucy --came to Miami to escape political upheaval on the island. Arnaz s father was mayor of Santiago Cuba. 1959 didn t begin the relationship between Cuba and Miami Estorino says. It only transformed it. World War II also played a significant role in establishing South Florida as a major player in world trade she says. When trade was cut off from Europe and Asia Miami became more active in trade she says. Jerry Haar a professor at Florida International University s College of Business describes Castro s rise to power as the real trigger of a mass migration to this country. What s Cuba s loss is our gain he says. They came here to a welcoming environment. They came here to build. Even subsequent generations have been absorbed into capitalism. Haar attributes the economic success of Cuban-Americans to a focus on education achievement family and faith. The Cubans planted the first beachhead he says adding they helped create an environment favorable for business opportunities and prosperity. In 1959 Castro exported his entire middle class Haar says. For all of Latin America Miami is their second home whether they came here for school or for Disney World. In economic terms Haar describes two distinct types of entrepreneurs who arrive here from Latin America necessity entrepreneurs and opportunity entrepreneurs. Necessity entrepreneurs are those who flee their homelands--say Cuba or Venezuela--with limited resources to start their own businesses. Opportunity entrepreneurs are those with money who come here to establish a business. South Florida has become a welcoming environment for those arriving from all of Latin America Haar says. This is the place for destiny he adds. We are the most attractive place. We have rule of law educational opportunities a level of stability and predictability. Plus Haar points to another huge asset working in South Florida s favor. We have MIA (Miami International Airport) which makes it easy. Some people get on a plane Monday morning and come back Monday evening he says. Haar says South Florida owes its 46 SEPTEMBER 2016 Carlos Arboleda Adriana Kostencki Tony Argiz growth and prosperity to its Latin American immigrants. It was a sleepy Southern town with a focus on tourism from the Eastern Seaboard that s what we were he says. The future of large metropolitan areas in the U.S. is here in Miami with multiculturalism diversity creative industry the arts and health care. Some debate exists whether South Florida s diverse Hispanic community still can be considered a melting pot. I don t know if that works anymore Estorino says. It s more of a salad bowl analogy. The ingredients maintain their original forms but they taste great together. Haar sees some competition and resentment among some nationalities here in South Florida. There is resentment that the Cubans are a privileged class he says. This is not a monolith coming here. There is rivalry. Carlos Arboleda was 5 when he arrived here from Colombia with his mother and two older siblings in 1980. He is now founder and managing director of COI Access a company that assists clients coming into U.S. markets from abroad. Arboleda says when he first came to South Florida things were tumultuous. Miami was going through a lot. There were Nicaraguans arriving here and there was the Mariel boatlift he says. His mother realized America offered her young family many opportunities and gave them some powerful words of advice She taught us hard work is the way to get ahead Arboleda says. We were given a great opportunity at the American dream. He agrees Miami has rightfully earned its reputation as a business hub for points south. Latin American business leaders see Miami as the center of the universe he says. As evidence of how the U.S. and Latin American cultures have meshed Arboleda points to the recent Copa America soccer tournament. After 100 years as a South American event the United States hosted the competition for the first time. (Orlando which has a sizable Puerto Rican population was Florida s representative among 10 U.S. cities where games were played.) He also points to Hispanic culture itself as a reason for success in the business community. Our heritage of being close to the family has done well with other backgrounds and communities Arboleda says. We are all a very welcoming people. He expresses appreciation for his new home as well. We are grateful to a great country he says. All Latinos have for the most part felt very grateful for the opportunities this country has given Hispanics. I think it s very nice for the government to make this National Hispanic Heritage Month. I would like to make a human race month. Let s forget black white blue green and other nationalities. Let s just be good to each other. Adriana Kostencki already was a lawyer in her native Venezuela when she decided to move to the United States and practice here. After learning to speak English she got her law degree at the University of Miami. Today she s a partner in the Miami office of Berger Singerman specializing in business immigration issues. Many of her clients are foreign nationals who want to work here or invest here coming from Latin American countries as well as from Europe. Her Latin American clients enjoy establishing businesses in Miami because there are more regulations here. If there are any problems the courts in Florida are more reliable and fair she says. SEPTEMBER 2016 47 SPECIAL REPORT HISPANIC HERITAGE MONTH A group of newly arrived Cuban refugees 1980. (Miami Herald Collection HistoryMiami Museum) Indeed she says there s a great business climate throughout the United States. The culture in the U.S. is very accepting she says. Everyone here comes from somewhere. My clients feel that too. If you assimilate with Americans Americans will assimilate with you. Kostencki says the current political climate in the United States especially with the upcoming presidential election has created anxiety however. Some of my clients with non-immigrant visas are applying for U.S. permanent residency before the election she says. I see that concern increasing dramatically. They want to vote. When Coral Gables resident Tony Argiz came to the United States from Cuba on March 24 1962 he traveled without his parents. He was 9 years old. Argiz was part of Operation Pedro Pan a mass rescue of children living under Fidel Castro s regime organized by a Miami priest with support from the U.S. State Department. The Castro government had begun separating children from their families as it moved toward Communism. He settled in Tampa with an older brother. Later he received a baseball scholarship to attend Florida International University. While there he discovered his love and propensity for math and ultimately went into accounting as a career. Today he s the chairman and CEO of Morrison Brown Argiz and Farra one of the nation s top accounting firms. Argiz s emotions were mixed when he arrived in Florida. At first I left really happy he recalls. Castro closed all the private schools in Cuba so my parents decided to send me here. Reality struck about a week later. I wondered if I was ever going to see my parents again he says. I was homesick the first few months. Like many other Cubans living in the United States at the time Argiz thought the Castro regime would be shortlived. From 1962 to 1963 I was quite homesick he says. I didn t know the language. But for the most part he says he was well received. In Tampa there was a large Latin community since the 1900s Argiz says. Once I learned the language everything fell into place. Finally in March 1967 with the intervention of a Tampa congressman his parents made it to American shores. These many decades later Argiz empathizes with those seeking refuge in the United States. Whether they risk their lives rafting here from his native country or make a dangerous trek across the desert from Mexico he understands their reason opportunity. He offers them the following advice This is the greatest country in the world he says. Anybody who wants to succeed can do it. You really need an education to succeed. It s no different today than in 62. You need to work hard and plan for the future. Have lofty goals. This is the only country where you can come as a 9 year old and end up running a company like I do today. Argiz says the United States has always been a welcoming place for immigrants. He d like to see more money provided to assist all newcomers. We need to make sure we provide them with adequate resources to get them educated he says. It ll be a very cheap investment in the long run. You can t compete in the world without an education. 48 SEPTEMBER 2016 THE 1 BOAT SHOW ON THE PLANET NOV 3-7 2016 Learn More at FLIBS.COM TICKETS SHOW INFORMATION AND VIP PACKAGES FLIBS SEPTEMBER 2016 49 50 SEPTEMBER 2016 T E N G O L D E N R U L E S P R E S E N T S COME JOIN US FOR A WEEKEND OF LEARNING & INSPIRATION This event features some of the most innovative digital marketers in the world. Learn cutting edge strategies and tactics network with like-minded people and discover ways to take your business to the next level. A F E W O F O U R S P E A K E R S November 12 and 13 2016 WYNDHAM BOCA RATON 1950 Glades Rd Boca Raton FL 33431 Jay Berkowitz - Host Moderator and Presenter Crack the Code Bruce Turkel - 4-time Author TED speaker CEO ECD Turkel Brands Brin Jimenez - Google San Francisco Micro Moments Available Before September 30th Full access to all sessions Breakfast and lunch on both days Cocktail party on Saturday evening Early Bird 497 JB Glossinger - Top 5 iTunes Podcaster Author The Sacred Six Leslie Laredo - Media Buying Trainer The Laredo Group Alex Harris - Conversion Optimization Director at Proficient David Shteif - Data Monetization Expert Digital Media Solutions Group F O R R E G I S T R A T I O N A N D E V E N T I N F O R M A T I O N P L E A S E V I S I T WWW.ADMLIVE.COM S P O N S O R E D B Y SEPTEMBER 2016 51 SPECIAL QUARTERLY REPORT COMMERCIAL REAL ESTATE Leasing velocity slows but rents still rise BY DARCIE LUNSFORD While still squarely in positive territory second-quarter office and industrial leasing velocity continued to slow across Broward and Miami-Dade counties according to the latest CBRE market data. But demand still outpaces inventory across the board which drove rents up and vacancies down. Palm Beach County whose real estate recovery has lagged finally broke out with an uptick in office space absorption and an impressive surge in industrial absorption. Its second-quarter industrial absorption nearly quadrupled year-over-year with 115 807 square feet of additional empty spaces filled. But when compared to where total absorption was at the midpoint of last year it was still lower 477 894 square feet in 2016 vs. 704 114 square feet in 2015. The county has seen a wave of new industrial facilities during the past two years. Even so second-quarter rental rates shot up more than 8 percent compared to the previous year and vacancy tumbled to 3.5 percent the lowest in the region. We have new construction in central and northern West Palm Beach says Jeff Kelly executive vice president of CBRE. New development requires higher lease rates to justify cost to build. I see users getting sticker shock but if they have a space they need to fill the new construction deals are getting done at higher rents than tenants have been used to paying. In the office sector the lack of new construction gave a lift to rent and occupancy across the region. Much of that can be attributed to two major lease deals at the Boca Raton Innovation Campus MDVIP a concierge health care provider leased 49 369 square feet and Avid Technology a broadcast and film platform provider leased 23 630 square feet. I think we are on a slow but sure downward trend Kelly says. Challenges are the threats of larger vacancies coming on the market. As a chief concern he cited the uncertainty swirling around the future of Office Depot and its 600 000-squarefoot headquarters in Boca Raton. To catch up we know there will not be any new construction for some time we just have to be careful of big vacancies coming on the market Kelly says. And we need continued leasing which has to be a mix of companies expanding and new to market leases. In Broward County second quarter leasing activity was steady but failed to reverse a slowing first-quarter leasing trajectory an indicator that post-recession leasing might be peaking. Restrained development and continued job growth still helped push rents higher and office vacancies lower by nearly a full percentage point compared to 2015. There were no new openings of industrial buildings in Broward in the second quarter after more than 1.2 million square feet in the past five quarters. But major projects such as Bridge Sunrise a 306 855-square-foot development at Interstate 95 and Sunrise Boulevard are on the way. So far steady leasing activity is holding Broward s industrial vacancy year-overyear to 6.1 percent and rents rose 3 percent. Miami-Dade County is where the region s industrial development pipeline is flowing like a geyser. About 2.5 million square feet of industrial boxes are under construction with nearly 90 percent poised to open this year. The completion of the Panama Canal expansion has yet to propel Miami-Dade industrial absorption to 2015 levels which in the first six months were about half of the same period last year. No noticeable increase as of today says Michael Silver first vice president of CBRE. In the future more perishables like fruit and vegetables will come into PortMiami requiring additional cooler type space within warehouse facilities. The county has opened more than 1.5 million square feet of industrial facilities since 2013 but that has not dinged its hearty market. Vacancies fell in the second quarter to 3.6 percent and rents rose 5 percent compared to the second quarter of last year. Miami-Dade s office market has seen the most post-recession development in the region but the construction volume has remained limited. Much of the development has been tucked into larger mixed-use projects. Year-to-date 2016 office space absorption is down 5 percent compared to last year. Once again rent and vacancy fundamentals continued to improve. Given the tight market conditions in South Florida coupled with employment and population growth we can expect to see further increases in rental rates and decreases in vacancies says Ken Krasnow executive managing director for Colliers International in South Florida. We expect the market to quickly absorb new supply in both the CBD [central business district] and major suburban markets. This trend is likely to continue until new inventory balances demand. Freelance writer Darcie Lunsford is a former real estate editor of the South Florida Business Journal. She is the senior VP for leasing at Butters Group and is avoiding a conflict of interest in her column by not covering her own deals. 52 SEPTEMBER 2016 CBRE MARKETVIEW SNAPSHOT BROWARD COUNTY OFFICE Q2 2016 Plantation leads in construction VACANCY RATE Commercial NET ABSORPTION (SF) Commercial UNDER CONSTRUCTION (SF) Commercial DIR. ASK RATE (S SF NNN) Commercial 19.9% Cypress Creek 14 882 Cypress Creek 0 Cypress Creek 14.81 Cypress Creek 17.8% Downtown CBD 25 248 Downtown CBD 0 Downtown CBD 15.27 Downtown CBD 12.3% Plantation Plantation 32 588 (11 679) Sawgrass 0 Plantation 24.59 137 349 Plantation 13.8% Sawgrass 16.80 Sawgrass Sawgrass 7.5% Southwest Broward 15 542 Southwest Broward 0 Southwest Broward 18.37 Southwest Broward 12.1% MIAMI OFFICE Q2 2016 Construction booms near Miami VACANCY RATE Airport Doral 62 883 67 710 19.81 NET ABSORPTION (SF) Airport Doral UNDER CONSTRUCTION (SF) Airport Doral DIR. ASK RATE (S SF NNN) Airport Doral 9.4% Aventura Aventura 39 111 Aventura 246 085 Aventura 26.97 41.82 Biscayne Boulevard 6.0% Biscayne Boulevard 61 654 Biscayne Boulevard 0 Biscayne Boulevard 16.5% Brickell 1 849 Brickell 20 180 Brickell Brickell 37.44 41.94 Coral Gables 10.9% Coral Gables Coral Gables 84 035 (5 518) Downtown Miami 129 676 Coral Gables 9.7% Downtown Miami 116 576 Downtown Miami Downtown Miami 36.72 37.83 20.2% (42 789) 280 000 PALM BEACH COUNTY OFFICE Q2 2016 Positive absorbtion VACANCY RATE Boca Raton NET ABSORPTION (SF) Boca Raton UNDER CONSTRUCTION (SF) Boca Raton DIR. ASK RATE (S SF NNN) Boca Raton 16.7% Boynton Beach Boynton Beach 75 984 (640) Delray Beach 0 Boynton Beach 19.38 Boynton Beach 29.4% Delray Beach 0 Delray Beach 15.37 Delray Beach 46.3% North Palm Beach 44 North Palm Beach 0 North Palm Beach 12.94 North Palm Beach 11.1% Palm Beach 20 519 Palm Beach 0 Palm Beach 19.51 Palm Beach 12.6% West Palm Beach 5 445 West Palm Beach 0 West Palm Beach West Palm Beach 42.73 19.89 18.6% 18 540 0 SEPTEMBER 2016 53 CBRE MARKETVIEW SNAPSHOT BROWARD COUNTY INDUSTRIAL Q2 2016 Strong construction VACANCY RATE Coral Springs NET ABSORPTION (SF) Coral Springs UNDER CONSTRUCTION (SF) Coral Springs DIR. ASK RATE (S SF NNN) Coral Springs 4.8% Northeast Broward Northeast Broward 163 099 6.5% (2 053) Pompano Fort Lauderdale 167 099 Northeast Broward 8.58 Northeast Broward 362 164 Pompano Fort Lauderdale 7.95 Pompano Fort Lauderdale Pompano Fort Lauderdale 4.3% Southeast Broward (17 392) Southeast Broward 0 Southeast Broward 7.55 Southeast Broward 6.7% Southwest Broward Central Broward 93 431 Southwest Broward 0 Southwest Broward Southwest Broward 8.66 8.01 Central Broward 7.6% (35 200) Central Broward 0 Central Broward 5.9% MIAMI INDUSTRIAL Q2 2016 2 million square feet being built VACANCY RATE Airport Doral (14 322) 306 466 10.65 NET ABSORPTION (SF) Airport Doral UNDER CONSTRUCTION (SF) Airport Doral DIR. ASK RATE (S SF NNN) Airport Doral 3.7% Central Dade Central Dade 154 921 106 485 Hialeah 338 137 Central Dade Central Dade 10.12 0 8.01 Hialeah 3.1% Hialeah Hialeah 2.3% Kendall Tamiami (27 560) Kendall Tamiami Kendall Tamiami 1 022 989 0 6.98 Kendall Tamiami 1.1% Medley (11 658) Medley 9.92 Medley Medley 4.4% South Dade South Dade 193 005 South Dade 993 946 South Dade 8.29 9.66 3.6% (7 107) 32 950 PALM BEACH COUNTY INDUSTRIAL Q2 2016 Construction in Lake Worth West Palm Beach VACANCY RATE Boca Raton NET ABSORPTION (SF) Boca Raton UNDER CONSTRUCTION (SF) Boca Raton DIR. ASK RATE (S SF NNN) Boca Raton 3.8% Boynton Beach Boynton Beach 76 693 (18 840) Jupiter 0 Boynton Beach Boynton Beach 10.67 8.91 Jupiter 2.4% Jupiter 0 Jupiter 2.2% Lake Worth 1 444 Lake Worth 0 Lake Worth Lake Worth 9.01 8.11 Riviera Beach 1.2% Riviera Beach (10 603) Riviera Beach 252 000 Riviera Beach 3.6% West Palm Beach 31 663 West Palm Beach 0 West Palm Beach 8.18 West Palm Beach 4.6% 16 972 316 345 8.82 The book that started it all The secrets of success aren t so secret ... We ve been in the business of improving performance for companies and individuals for more than 100 years globally and 50 years in Southeast Florida. Our approach emphasizes practical principles and processes that provide participants with the attitude knowledge and skills necessary to stand out in their professional field and from the competition. Our proven Local Courses Customized solutions 1-Day Seminars One-on-One Coaching and more deliver results. SALES EFFECTIVENESS LEADERSHIP DEVELOPMENT COMMUNICATION SKILLS PRESENTATION SKILLS CUSTOMER SERVICE TEAM MEMBER ENGAGEMENT (954) 961-2209 CEO CONNECT POWERED BY Marlins President David Samson is interviewed by SFBW Chairman and CEO Gary Press at the Ricoh Diamond Club at Marlins Park Marlins President David Samson isn t afraid to say what s on his mind David Samson has a philosophy that people with informed opinions should speak their minds--which resulted in one of the most entertaining interviews in the history of CEO Connect. He is celebrating his 15th year as president of the Miami Marlins including 2003 when they beat the New York Yankees in the World Series. Samson oversees all aspects of the team s day-to-day business operations and led the completion of Marlins Park. Samson was born in Milwaukee and raised in New York City. He has a bachelor s degree from the University of Wisconsin at Madison and a law degree from New York s Benjamin N. Cardozo School of Law. Before joining owner Jeffrey Loria s Montreal Expos in 1999 as executive vice president Samson worked for Morgan Stanley. Samson was interviewed by SFBW Chairman and CEO Gary Press in the Ricoh Diamond Club Lounge at Marlins Park. The following has been edited for brevity and clarity. You ve been called controversial outspoken and irreverent. How true are these descriptions and are they necessarily negatives Everyone takes everything so seriously. There are a lot of serious things but I work in baseball. I m not curing cancer. All I try to do is entertain. I m in the entertainment business. The downside of when you are in that business and willing not to be Ready to Swing 56 SEPTEMBER 2016 CEO CONNECT plain vanilla is 50 percent of the time you are going to make someone angry with what you say. I m totally fine with that. It helps me do business because I m always honest to a fault. So what do I mean by that I don t want to waste my time and I don t want to waste anyone s time. So if I m doing a deal for the ballpark I m not going to talk about the presidential campaign. I don t love business lunches or dinners because I can get something done in 10 minutes. There s so little time it s the only commodity I run out of every day. I m a total insomniac which is great. I m totally ADD [attention deficit disorder] which is fine. I have great meds which I never take. The fact of the matter is all I do is try to move the ball forward everyday. I try to get something done. Because you never know what s going to happen. I m not trying to be overly emotional or esoteric but this could be it for all of us. Everyone says it but I act it. I sometimes act with reckless indifference to tomorrow because I m very focused on today. That goes for my baseball team and for my personal life. That goes for everything. I ve been married 25 years which is shocking for anyone who knows me. I give interviews and I give speeches and I want people to truly know it s OK to speak your mind if you have an informed opinion. There s nothing worse than reading a bunch of crap. We all have that antenna that goes up. I learned early on because my personality was formed as a New Yorker. I was always speaking my mind because I was always short. I ve never been punched and I ve never thrown a punch but I ve come so close so many times. I ve always been able to get out of it with my mouth which is amazing. Imagine going through high school being small. I wasn t always this big I was even smaller sometimes--like all through high school. Justine Avila Bob Roscioli and Heather Roscioli of Roscioli Yachting Center Matthew Katz of Katz Barron Squitero Faust Gary Press and Michael Katz of Katz Baron Benjamin Pahl of Miller Kagan Rodriguez & Silver Lance Ladaga of Z Advertising Jennifer Barb of SFBW and Philip Jacobs of Celebrity Cruises SEPTEMBER 2016 57 CEO CONNECT days. Then 30 days became 60 and then 90. Then in 2002 we led a transaction selling the Expos and buying the Marlins. Then in 2003 he divorced my mother. The only thing that changed after the divorce is that we lawyer up every time I have a new contract. Other than that it is an honor to work with him. He is very different than I am. He cringes whenever I take the stage. He doesn t enjoy the public life but he is incredibly charitable in his own way. He s incredibly personable in his own way. He is incredibly sensitive in his own way. We really are yin and yang. What he wants to do is win more than everything but sports is a tough racket. It s really hard to win. There are 29 losers in baseball every year. For him losing the World Series would be losing. Not making the playoffs would be the same thing as losing the World Series. When you have that mentality it makes it super super hard. Our relationship is good. We argue we love. We have a very personal relationship and a very professional leadership. Who inspires you as a business leader I would say my biggest inspiration was probably my two grandfathers. Let me tell you what I learned from one of them. I learned one of the great lessons of all time in business Know when to hold em and know when to fold em. He was a straight gambling addict. However it was a great lesson and I use it every day. There are only two things your business is doing. You are ether growing or shrinking. If your business is not growing it s shrinking. How do you know when to expand How do you know when to contract How do you know when is the time to purchase or be purchased My other grandfather was a very serious man. He was a lawyer and inventor. He would tell me no is an impediment to yes. I don t take no from anyone because I believe my way is right. If I can be convinced my way is wrong I will immediately switch but it is sure hard to convince me of that because I don t come to it off the cuff. I come to Matthew Dernis of Fortune 360 Group and David Samson That s totally not funny. The answer is I m going to say something politically incorrect. I m totally fine with it. There has never been anything written about me or that I ve said publicly that I didn t plan on saying. Nothing s off the cuff it just seems off the cuff. The trick to that is always knowing in advance even if it s a quarter-second what s coming out and always having a plan. So I ve never backed off from something I ve said. You mentioned you hate business dinners and lunches that you just want to get down to the point. How do you develop relationships in your world My relationships are based on progress and mutual prosperity. I will get right to it. There are certain times we negotiate with players. For example we were negotiating with Giancarlo Stanton on a 13-year deal. We flew to Beverly Hills and sat in a bungalow at the Beverly Hills Hotel. I said to his agent We are about to make history. This is about to be the biggest deal of all time and there are going to be four moves. We are going to move twice and you are going to move twice and then we are going to have a deal. When we are done you are going to know we re done because I m going to tell you we re done. The same thing with Dee Gordon and the ballpark. When you are honest up front and willing to walk away you are going to win most negotiations. Winning in negotiation is when you win incrementally more than the other side. But if you win and they lose you lose because you don t get to do deal No. 2. If the other guy wins you are not going to have power from your boss to do deal No. 2. The object is for both sides to win and for you to win a tiny bit more. How would you describe the dynamics of your relationship with Jeffrey Loria Jeffrey Loria is the owner of the Marlins. When I was 8 years old he married my mother. I was born in Milwaukee and my parents got divorced. When I was 31 I got a call. I was at Morgan Stanley. Jeffrey wanted my help buying the Montreal Expos and I was in banking. So I worked with a lawyer and got the deal done with another lawyer and banker. I was going back to Morgan Stanley. He asked me to stay on for 30 58 SEPTEMBER 2016 CEO CONNECT my way after thought and calculation because I learned in law school that every decision has consequence and ripple impact. You have to see where the pebble is in the water and what s next what s next and what s next. If you see all of that you are going to make good decisions. When so many stadium projects come in late and over cost what were the keys to getting Marlins Park completed on time and under budget Talk about like when you redo your bathroom in your house. It s about 200 square feet. It generally comes in two months late and 10 grand over budget. That s normal. How do we build 928 000 square feet on budget and on time We started early. We made every decision in advance--where very outlet was going to be where every chair was going to be and where every piece of carpet was going to be. What was going to be on the wall. After that we said no to everyone literally. People come in Hey listen can I just move my chair and desk I d rather have this view. It s only a 2 500 change. I need to add a TV here. What s the difference It s nothing. No. You say yes to one person and it s five grand it becomes 10 grand 100 grand. It goes up so fast it makes your head spin. We made the plan and stuck to it. What is the state of baseball now and where do you see it going Our demographics are old and getting older and then they are going to die. We have to figure out a way to get younger. We are trying everything to get young kids to play. We are trying to grow baseball players and baseball fans. We re trying to figure out a way to get kids off their phones. We re trying to find a way to get the 18- to 34-year-old to get engaged. To come out to games and be a part of baseball. It s a struggle. People find it too slow to be boring and archaic. It s not just unique to baseball. Highdefinition TV has been a very difficult proposition for those who want people Philip Jacobs of Celebrity Cruises Adam Lusthaus of Lusthaus Law Group Doron Abrahami of Insourced Marketing and Clayton Idle of SFBW AD David M. Kubiliun chairman of the Greenspoon Marder criminal law practice group welcomes guests to go to games. Here s my view of baseball We are the only place you can go with your friends family and clients and actually make a memory have a moment. Not be worried about your own security and not be worried about too many drunk people around you. You actually have a moment to converse and to have a moment to make a connection. We sell connections which to me are the fiber that makes the world go around. You remember moments during the day. If you go to bed at night and can t remember moments during the day it was a terrible day. The new commissioner Robert D. Manfred Jr. is on it. He understands young and the importance of diversity. You can t shut out any demographic and hope to build your business. How will you make the 2017 All Star Game in Miami a memorable event This is the place. We are the event town. We are the party town. We are taking over Miami and Miami Beach. I m a Broward guy but we had to choose a place. Do you know why the ballpark is in Miami [Audience shouts out a bunch of incorrect answers.] Anybody know who Willie Sutton is Why did Willie Sutton rob the banks SEPTEMBER 2016 59 CEO CONNECT Because that s where the money is. All Broward had to do was do what Miami did and we would have had a decision to make but it didn t. Miami did a publicprivate partnership that s why we are here. Don t get me wrong I love it here. The All Star Game is going to be good. We only have 37 000 seats so the only way to get to the All Star game is to buy season tickets. You are going to see Giancarlo Stanton knocking home runs. It will be fun. How do you think Don Mattingly is doing in managing the team this year Don Mattingly has been great. We are leaving him alone and trying to let him do his job. It s super hard not to want to get involved and think what you know is not right. Let s talk about movies. You are a movie buff. What are your top five movies I watch a movie every single day. Yesterday I watched a movie called Accepted with Jonah Hill. If I m in a bad mood I watch Fletch. I don t always watch a new movie but I watch a movie every day. My No. 1 movie recently is called Fearless with Jeff Bridges. It s about a plane crash and what happens afterwards. It is macabre delicious and well-written. Grand Canyon written by Lawrence Kasdan with Danny Glover and Kevin Kline is a phenomenal movie. I m a sucker for rom-coms [romantic comedies]. I do not watch horror movies. I m scared enough. I m a Jewish boy. I m petrified of my own shadow. There are many layers to my onion and sometimes they smell. Let it Ride is my favorite comedy. It was filmed here in Hialeah behind the racetrack. Shawshank Redemption is in my top 20. I carry in my briefcase a list of my top 100 movies and every time I see a new movie I decide whether it goes in my top 100. When do you watch movies I watch very late at night. I ll get home from a game between 11 30 p.m. and 1 a.m. and I watch a movie immediately. On weekends I get up very early--before 5--and watch a movie before I work out. What was your favorite deal You talking baseball You talking life My favorite deal for sure is that my wife was engaged when I met her. She was engaged to a guy who was out of school and working for Arthur Andersen and I had not even started college. My favorite deal was watching my girlfriend who became my wife remove the engagement ring and give it back to a guy who was making way more money than I was. I said to her You have two choices. You could marry ordinary and get the white-picket fence and station wagon or give me one shot and have an extraordinary life. I was so stupid but it was really a great deal. What was it like being on Survivor They brought me to L.A. They asked me if I was willing to do it. I said yes and then they dressed me like Thurston Howell and that was the end of that-- including the ascot. It was a great experience. I saw behind the curtain. That was a mutual relationship with Survivor and CBS. They completely used me and I completely used them and that was fine. I m into that. You want to use me tell me and I m going to tell you when I want to use you and that s the win and the win. Question from the audience Can we see your ring This is a World Series ring. I wear it on special occasions. It s super hard to get. We have the Yankees logo on here because we beat the Yankees. George Steinbrenner when he was alive was going to sue us for putting his logo on the ring because we beat him and he was super pissed. We were celebrating in the clubhouse and he turned the lights out. I kid you not. So we kept partying. I called him up and said Are you serious Because we re doing it. If you want to sue us you are going to relive this loss again and again because you aren t going to win. He didn t and I stare at the logo every day. ABOUT OUR SPONSOR Greenspoon Marder is a national fullservice Am Law 200 and NLJ 350 ranked law firm with over 180 attorneys. With over nine locations across Florida and offices in New York Las Vegas Denver and San Diego our firm was founded with the goal of becoming big enough to handle large and complex cases while remaining small enough to offer each client focused personal attention. Our national footprint combined with our diverse practice group base provides our clients with direct access to experienced attorneys working across virtually all practice areas. Our team has the experience needed to understand your challenges and develop the individualized strategies that you need. Our firm and attorneys have earned solid reputations as valued legal and business advisors. We take the time to get to know our clients learn their business goals and objectives and understand their individual and family needs. We take pride in looking beyond the shortterm and immediate concerns to consider the full scope of our clients needs. We provide the comprehensive and tailored client service our clients expect and deserve. We serve fortune 500 middle market public and private companies start-ups emerging businesses individuals and entrepreneurs across Florida and the United States. With our team of attorneys offering varying perspectives backgrounds and areas of experience we are able to effectively efficiently and economically address our clients legal needs. For more information visit www. Offices Boca Raton Denver Fort Lauderdale Las Vegas Miami Miami Beach Naples New York Orlando Port St. Lucie San Diego Tallahassee Tampa West Palm Beach 60 SEPTEMBER 2016 CORPORATE PARTNERSHIPS AND HOSPITALITY PACKAGES ARE NOW AVAILABLE. CALL 561-799-2747 OR VISIT THEHONDACLASSIC.COM FOR DETAILS. SEPTEMBER 2016 61 LAW Is auditing firm responsible for missing a fraud BY DAVID LYONS According to the Florida Supreme Court and U.S. Supreme Court auditing firms have a duty to serve as watchdogs to detect fraud and other irregularities that might lurk within the byzantine accounting statements of America s corporations. But as frustrated investors know the failure of auditors to detect fraud has dogged the accounting profession for years. In turn shareholders and bondholders have lost fortunes large and small amid the collapses of companies such as Enron and Sunbeam. And during the Great Recession the nation s Big Four accounting firms all had major clients that collapsed under the nation s mortgage crisis. A similar fate befell investors in Colonial BancGroup in 2009 when the Montgomery Alabama-based institution collapsed. The failure of the bank which also operated in Florida Georgia Texas and Nevada was largely the byproduct of looting of billions of dollars by senior executives between 2002 and 2008 according to prosecutors. They were in cahoots federal law enforcement charged with executives at the Ocala mortgage lending firm of Taylor Bean & Whitaker the bank s largest mortgage lending client. Federal agents raided both companies which shut down and filed for bankruptcy in 2009. BB&T of Winston-Salem North Carolina bought 22 billion of Colonial s assets while the Federal Deposit Insurance Corp. stepped in to guarantee depositor account balances up to 250 000 at a cost to taxpayers of 3.3 billion. Federal prosecutors asserted that the fraud was led by Lee Farkas Taylor Bean s chairman. He was convicted on fraud charges in 2011 and is serving a 30-year sentence in North Carolina. Five other Taylor Bean executives and two Colonial employees pleaded guilty in the case. After the executives went to prison a trustee for the TB&W bankruptcy estate sifted through the wreckage seeking to recover assets for victims including employees who lost wages various small business creditors Freddie Mac and Deutsche Bank among others. Now in a high point of that effort the largest accounting negligence case to go to trial is unfolding in the Miami-Dade County Courthouse where a jury is being asked to decide whether Colonial s auditor PricewaterhouseCoopers should be held responsible for failing to detect the fraud committed against the bank and Taylor Bean. The TB&W bankruptcy plan trustee Neil Luria is seeking 5.5 billion in compensatory damages and unspecified punitive damages. In 2011 he filed a similar suit against the mortgage company s external auditor Deloitte & Touche. The suit was settled three years ago. Terms were not disclosed. The Miami lawsuit alleges that PwC which served as Colonial s external auditor signed off on mortgage-related assets that actually did not exist. According to the complaint executives at Taylor Bean spent six years moving money among its accounts at Colonial to cure overdrafts. An accumulation of those activities allegedly helped contribute to Colonial s collapse. The lawsuit notes that not all of the Taylor Bean executives were involved in wrongdoing If those not involved had been notified by PwC about the fake mortgages there would have been no fraud and the bank s collapse could have been averted. This is basically holding an auditor responsible for its failure to do its job says Steven W. Thomas a California attorney who leads the plaintiff case on Luria s behalf. He argues that even though PwC was not the auditor for TB&W the auditing firm s failure to detect the fraud at Colonial had a ripple effect on the companies and individuals who did business with TB&W. Public auditors are responsible in our country when they certify fraudulent assets he says. In court papers Luria argues PwC failed to audit billions of dollars of transactions between 2002 and 2008 failed to certify assets listed on Colonial s books and relied on contracts that were not signed. On behalf of the defense PwC attorneys argue that the auditors performed their audits properly but were fooled into signing off on Colonial s books each year because collusion between executives at Colonial and at TB&W made the fraud hard to detect. Even a properly designed and executed audit may not detect fraud especially in instances when there is collusion fabrication of documents and the override of controls as there was at Colonial Bank Atlanta attorney Elizabeth Tanis of King & Spalding said in a statement. She leads a team of more than a dozen lawyers defending PwC. PricewaterhouseCoopers did its job she said. The trial overseen by Miami-Dade Circuit Judge Jacqueline Hogan Scola was expected to last through the middle of this month. David Lyons is a past editor-in-chief of the Daily Business Review. He is principal of Lyons Strategic Communications of Fort Lauderdale. 62 SEPTEMBER 2016 RETAIL BUSINESS HAPPENS Randall Vitale WHERE GOOD Randall Vitale joins Hoffman s Chocolates as VP Randall Vitale has joined Hoffman s Chocolates as regional vice president and will oversee marketing and manage Hoffman s Chocolates retail stores corporate sales online sales and its new mobile truck The Sweet Ride. Vitale was previously the senior vice president and Fort Lauderdale market executive for Gibraltar Private Bank & Trust and first vice president in the wealth field for SunTrust Bank. We are thrilled to welcome Randall an accomplished executive to Hoffman s Chocolates said Jarett Levan CEO of BBX Capital (NYSE BBX) parent company of Hoffman s Chocolates. We are confident that Randall will help grow Hoffman s Chocolates with tremendous passion leadership and commitment to our community. He serves on the board and executive committee of the Broward Workshop and Leadership Florida and is chairman of the Broward Housing Council. He is also a member of the Sun-Sentinel s South Florida 100. His past community involvement efforts include serving as the chairman of the City of Fort Lauderdale s Visioning Committee and as a caucus member for the Florida Chamber Foundation s Six Pillars Caucus System. He has served on the board and executive committee for Leadership Broward Foundation Riverwalk Fort Lauderdale and Business for the Arts Broward. Vitale was the founding co-chairman of both Emerge Broward and the Ghost Light Society at the Broward Center for the Performing Arts. He also has served on the Broward Performing Arts Foundation Board of Directors and is a past president of the Seminole Club of Broward County. Very little gets done in business without connections to the right people. Helping business make connections is what we do at the Greater Miami Chamber of Commerce. For more than 100 years this Chamber has been the leader in South Florida when it comes to advancing issues growing jobs closing deals and building a better community. Focused on business excellence leadership industry and community growth international business and public policy the Greater Miami Chamber has the reach and connectivity to make a difference. 305-350-7700 64 SEPTEMBER 2016 Healthcare to Wellcare Join us in our journey to a healthier bottom line Do your employee benefits have A Passion for Wellness 877.948.8887 NONPROFIT GOVERNANCE Are You on a Dysfunctional Board BY GERRY CZARNECKI Think about your last nonprofit board meeting. When you left were you satisfied with what was accomplished Did attending seem like a worthwhile investment of your time Did you feel you made a meaningful contribution to the meeting discussions and decisions Were you excited and looking forward to the next meeting Or was the last meeting a disaster and a time waster There is no doubt that many members of nonprofit boards have experienced the pain of dysfunction. The horror stories can range from wasted time on trivial matters to boring show and tell presentations from management to virtually no comments by any board member on any matter. Often one or two members dominate the conversation with opinions and complaints. Frequently a chair will allow no dialogue or a president plots to ensure complete control of the enterprise. Ultimately these kinds of experiences can lead to a level of frustration that drives members away from serving or leaves members so disengaged they begin to avoid board meetings altogether. Eventually a failure to have positive experiences at meetings will stifle meaningful commitment and eliminate any real value contributed by the board members. Dysfunctional boards lead to dysfunctional organizations. When the tone at the top is tainted by a general lack of purpose or commitment by a frustrated or disengaged board it s inevitable the board will have no material impact. Weak boards almost guarantee a weak organization. Boards can be a strategic asset to the management or they can inhibit strategy. So what can you do besides resign The answer is not simple as it will require change and a commitment to exercise leadership. Move from passive observer to engaged leader and volunteer to take on one of the tough challenges that everybody else seems to be avoiding. Start serious networking to meet the other board members at times and places unconnected to the nonprofit. You might be surprised with their frustration as well. Recruit new members like you who will get and stay actively engaged. Befriend the current chair and offer to help with setting a productive agenda. Connect with the president executive director and become an informal coach mentor. Become an advocate for governance training for the board to get everyone back on task on mission and recommitted. In short be willing to say yes to requests to get more engaged. Engagement and action become the platform for you to work on the dysfunction. You can be the change agent that turns a dysfunctional board into the strategic asset it should be. Gerry Czarnecki is founder and chairman of the nonprofit National Leadership Institute ( which helps boards of nonprofit organizations become strategic assets to the leadership team. His extensive background as a C-suite executive and CEO is coupled with current board leadership of corporate and nonprofit organizations. He is also chairman and CEO of the Deltennium Group. Contact him at 561.293.3726 or gmc 66 SEPTEMBER 2016 A Global Force in the Information Technology Arena We are a global company with 100 Years of combined experience placing IT professionals ALL while experiencing 28 quarters of consecutive growth. Our services of staff augmentation contract to hire direct hire and retained search will help you attain your business goals. Ask us about our Resource Concierge Program 6001 Broken Sound Pky. Suite 506 Boca Raton FL 33487 561-912-9363 main office info Meet Some of Our clients Blue Cross Blue Shield WebMD Guardian Citigroup TD Ameritrade Morgan Stanley Avon Weight Watchers SEPTEMBER 2016 67 TECH HUB Miami Beach Startup Kickstarts into IoT BY CHRIS FLECK Matrix Labs an early-growth company from Miami Beach is jumping into the world of the internet of things in a big way. Its sister company AdMobilize is already making money from its AdBeacon computer vision analytics platform which has more than 2 500 customers. (Readers might remember AdMobilize was included in an April 2015 SFBW article about Rokk3r Labs which helps startups.) AdMobilize CEO and co-founder Rodolfo Saccoman started Matrix to leverage the technology and enter the adjacent IoT market. Customers use AdMobilize to provide enhanced analytics for such scenarios as tracking effectiveness of digital signage and point-of-sale customer flow. Extending that into such areas as customer facial detection for customized offerings or automobile traffic analysis already brought it into the growing world of IoT. AdMobilize has raised more than 5.5 million and has 35 employees primarily in engineering. Matrix ( launched its latest offering with a successful Kickstarter campaign that raised more than 100 000 and presold hundreds of devices. This resulted in significant industry recognition and media attention that has increased demand even further. Saccoman is no stranger to creative fundraising and marketing. One of his previous ventures an online therapy platform gained national awareness when he was featured on Shark Tank in 2009. Matrix won a 2016 Consumer Electronics Show innovation award with its multipurpose hardware sensor device which includes a camera GPS near-field communications global system for mobile communications LEDs Bluetooth speaker microphone and the ability to detect humidity and temperature. Out of the box it can replace devices such as the Amazon Echo or the Nest Cam but its initial target is developers that would use the hardware and software platform to build a variety of IoT devices. This month the company launched Matrix Creator a developercentric IoT hardware building block. The plan is that some of those resulting creations turn into high-volume successful products that leverage the same platform. Starting any new developer platform is not easy but the Matrix Creator plugs directly into a Raspberry Pi--a credit card-sized single-board computer-- and immediately extends multisensor capability to a huge existing community of developers and makers. The possibilities are endless but the initial marketing includes home automation health care security robotics retail and enterprise. AdMobilize has partnered with Verizon Wireless and Adams Outdoor Advertising for digital signage. The units are now for sale on Amazon and at Locally it is partnering with Citrix Systems to help create workplace-of-the-future office automation. It is also in discussion with the Miami Beach Police Department for use with vehicle detection. Chris Fleck is on the board of the South Florida Technology Alliance and vice president of emerging solutions for Citrix Systems (Nasdaq CTXS) a Fort Lauderdale company that provides secure delivery of applications and data. 68 SEPTEMBER 2016 SEPTEMBER 2016 69 SALES STRATEGIES Are You Winning the Battle BY GRETA SCHULZ We should never intentionally place soldiers in a situation where the price of losing outweighs the rewards of winning. -- attributed to Attila the Hun How often can you honestly say your sales managers apply this rule to the sales staff And what systems do your salespeople have in place to ensure victory even before they go into battle You have two challenges when your sales force prepares for battle Challenge 1 As in any kind of warfare you have a distinct advantage when you can tap good and reliable intelligence. The problem is your salespeople don t get enough accurate intelligence about their prospects. As a result their pipelines are filled with flaky opportunities. And your sales managers don t have enough guts to call them on it. Here s the litmus test When your salespeople submit their forecasts do you or your managers adjust them downward for realism It s typically easier for salespeople and their managers to discuss why they didn t win business instead of asking themselves the right questions before going to battle. The right questions are 1. Can we win and should we pursue this opportunity If the answer is yes then 2. Which strategy should we adopt to ensure that we win Let s look at each step. Planning ahead If you re like most selling organizations the cost per pursuit is several hundred or sometimes thousands of dollars. Multiply that by the number of opportunities you chased and didn t close in the last 12 months. Staggering isn t it Before your salespeople charge off to fight the next battle make sure they can answer these questions honestly If this was your money would you spend it What are you trying to sell and more important why are you trying to sell it Sounds simple enough until you actually try to quantify it. What is the sale worth to the organization Does the return on investment justify your time money and effort Have we sold this prospect anything in the past Who What Where When How Why How many contacts have you already had with this contact How many phone calls face-to-face meetings and so on Do you have a clear next step Do you have an organizational chart Do you have an inside coach Can we win This is not an all-subjective question. To begin ask your salespeople What do you know about the account so far What are the real issues they re having and what effect is that having on the company If you can help them will your solution outweigh the change they will encounter Have you discussed realistic expectations How committed are they to fixing the problem How do you know Did the discussion of investment come up and are you both in full understanding of at least an estimate of cost Most important if you make recommendations that they believe will help them achieve their goal what will the next step look like Until these things are truly vetted and understood by both parties they are ill-prepared for battle and will likely lose. Few salespeople understand the cost of pursuing sales and often fill their funnels with bad business. Fewer think through their strategy before going into sales battle. Ask your salespeople these fundamental sales questions before committing resources to a battle you cannot win. Successful sales professionals qualify their prospects vigorously and religiously before committing time and energy so their closing ratios are 90 percent or better. So what are yours Greta Schulz is president of Schulz Business a sales consulting and training firm. She is a best-selling author of To Sell is NOT to Sell and works with Fortune 1000 companies and entrepreneurs. For more information or free sales tips go to and sign up for GretaNomics a weekly video tip series or email sales questions to greta 70 SEPTEMBER 2016 N E W S TA D I U M - N E W E X P E R I E N C E As par t of the 450 million new stadium modernization all suites will be remodeled for the 2017 season. Enter tain your top clients prospec ts and employees with best-in- class benefits and amenities. F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T D AV E B A L D W I N AT 3 0 5 - 9 4 3 - 6 6 5 4 O R D B A L D W I N D O L P H I N S . C O M . PEOPLE PASSION AND PROFITS What do you bring to your team BY STEPHEN GARBER Toxic or Tonic Toxic. It s a really powerful word. One dictionary s definition is relating to or caused by poison very bad unpleasant or harmful ... I always knew blue-green algae as a superfood--a rich source of proteins vitamins and minerals. It s said to help us be more energetic and potentially live longer healthier lives. But now blue-green algae has been in the news as a dangerous highly fertilized man-made disaster for our environment and economy. Just smelling the bloom of bluegreen algae on the Atlantic coast--let alone touching or ingesting it--makes us ill. What kind of blue-green algae is in your world What form are you bringing Great teams are not just determined by how talented the people are or how hard they work or even how motivated they are for their own goals. All of these are important--indeed essential. And truly great teams are much better than the sum of their individual talents efforts and motivations. Great teams and businesses are defined by how well they work together. Talented industrious motivated people can be toxic or tonic to their teams. If they are a team player they will bring tonic making each other your clients and your business better. If they are unpleasant untrustworthy boastful or bullying then they bring toxicity. No matter how talented they bring pain and costs to the team your clients and your business. As leaders we get to choose what we will be. Selfpromoting pushing ahead take-no-prisoners attitudes and behaviors can get us to the top. Invariably they will not keep us or our businesses thriving or sustainable. Our people and clients will get sick of us or tired of us no matter how well paid they are or how good our products are. Here s what we ve learned truly matters most to making great teams out of talented people Deepen trust by being open honest and consistent in your mood management and values. Let your people know you--and help them to get to know each other. Be powerfully vulnerable by asking for help acknowledging fears challenges and shortcomings. People will really step up when you do so--unless they are toxic. And if they are you get to make a choice. Truly listen. Pay attention respond and bring all of yourself to the important conversations. As the leader your conversation is important to everyone who meets with you. Confront issues. Don t let them fester. Gossip is a blooming toxic algae. If everyone acknowledges and resolves issues in a healthy way the fertilizer for the algae goes way. Hold yourself accountable to do what you say you will. Encourage everyone to do the same. Make it the culture of your business. The choice is ours every day. At every meeting we get to decide toxic or tonic What will I be What will we be Here s to superfood in all our diets. Steve Garber is director of Third Level Ltd. Contact him at 561.752.5505 or sgarber 72 SEPTEMBER 2016 LOCATION LOCATION LOCATION Prime Fort Lauderdale Office Space for Lease Commercial Tower at Executive Airport Office Space For Lease 2101 W. Commercial Blvd. 5 Story Class A 94 350 SF Office Building with marble entry and lake views. Located 1.2 miles west of I-95 with easy access to Florida s Turnpike. Close to hotels retail and restaurants. 11 miles from Fort Lauderdale - Hollywood International Airport and adjacent to the Ft. Lauderdale Executive Airport. Ammenities include covered surface parking 24-hour building access security cameras dry cleaning service automotive detailing. Building signage available for full floor tenant. Management and securty officer on-site. Commerce Point Office Space For Lease 3511 W. Commercial Blvd. Fort Lauderdale FL 33309 Commerce Point offers office ready suites with excellent Commercial Boulevard visibility. Recently remodeled common areas. Separately metered HVAC system. Close proximity to restaurants cafes hotels financial institutions and shopping destinations. Availability of smaller suites for immediate occupancy. Excellent access to I-95 and Florida s Turnpike. Cypress Court Office Space For Lease 6360 NW 5th Way Fort Lauderdale FL 33309 Cypress Court has office ready suites available. Abundant parking 5 1000 ratio. Recently remodeled common areas. Separately metered HVAC system. Close proximity to restaurants cafes hotels financial institutions and shopping destinations. Excellent access to I-95 and the Florida s Turnpike. WILLIAM J. KAHN at 954.540-6490 SEPTEMBER 2016 For Leasing Information contact 73 THE FAMILY OFFICE Critical Wealth Leadership Role Transitions BY JULIE NEITZEL In the wealth management field there s considerable focus on preparing the next generation for a transition of wealth but spouses are likely to experience a transition first. Discussion of the great wealth transfer estimates that 30 trillion will be inherited over the next 30 years according to an estimate by Accenture. Of the top 1 percent of wealthy households 95 percent are from the baby boomer generation--76 percent made their own wealth 87 percent of them are male according to the Investment Management Consultants Association. Based on a 2014 U.S. Trust survey 71 percent of those baby boomers are in their first marriage and 76 percent of that group has children who will become next-generation stewards. Wealthy female boomers who are 65 today can expect to live at least another 20 years based on actuarial studies. In fact it s estimated that one out of three of them will celebrate their 95th birthday. Given that husbands generally make the family wealth decisions yet die before their wives how do their spouses prepare to assume that role Many businesses dedicate significant time and resources toward succession planning. Similarly large family wealth enterprises will benefit from planning for a smooth transition to subsequent decision makers. The typical division of labor between married couples results in the spouses of wealth creators dedicating energies elsewhere for the family such as raising children and managing the household. That can limit their involvement in the management of family wealth. But the right process can support a smoother transition for a spouse assuming the key decision-making role. That process starts with the mapping planning and management of the family wealth enterprise. Mapping is critical to understanding every component of the family wealth enterprise which will require leadership governance and decision-making activities. It entails developing a comprehensive inventory of the family s assets and liabilities the ownership structures and associated decision makers and the intended wealth-transfer plan. Analyzing the financial needs of the spouse and family and assessing cash sources and uses are important elements of the mapping process. Planning happens after a comprehensive understanding of the components of the family wealth enterprise. This entails prioritizing what s important Will the wealth cover spending needs and enable a continued lifestyle Are the proper providers in place to support the ongoing management of the enterprise Are their fees and expenses appropriate Do I have total control over decisions or do others (such as trustees) participate Management determines how oversight and other ongoing decisions will occur. For spouses unaccustomed to making such decisions this can be daunting without a comprehensive understanding of the mapping and planning components of this process. Experience shows that confident and prepared spouses are those who know what the family owns what its financial needs are and how they re sourced and the plans for future transition of family wealth. The transition from spouse to CEO of the family wealth enterprise should not be overlooked. It should be noted that there are marriages in which partners share financial decision-making equally as well as spouses who are financially successful in their own right and spouses who are fully prepared to assume the responsibility of managing the family s wealth. Through a well-planned transition spousal successors can collaborate with the next generation and thrive in their roles as caretakers of the family wealth and of the family itself. This component of succession planning is as critical for everyone-- today and tomorrow. Julie Neitzel is a partner and adviser with WE Family Offices in Miami and a board member of the Miami Finance Forum. Contact her at Julie.Neitzel or 305.825.2225. 74 SEPTEMBER 2016 PRIVATE TRAINING STUDIO CORPORATE CENTER 33301 WHY TRAIN WITH BILL I have been training with Bill since 1993 have referred dozens of friends & associates and have received positive feedback from each. -- Mike Maroone President Maroone Enterprises CLUB 1 HEALTH & FITNESS CENTER PRIVATE CORPORATE & GROUP CLASSES BEFORE 400lbs Here 45 minutes training is all you need Busy I can come to you Makoto Speed & Reaction Arena NOW 220lbs Your Results Guaranteed FOR MORE INFO GO TO BILLKYSER.COM OR CALL 954.290.2920 SEPTEMBER 2016 75 WEALTH Life Insurance Offers the Liquidity You Need to Protect Your Heirs from Estate Taxes BY HOWARD KAYE Here at Howard Kaye we ve walked our clients through all kinds of estate planning scenarios. Recently we helped a new retiree establish a series of trusts and start the process of moving assets inside. Her concern was simple when she passes away she doesn t want her assets to go through the long and costly probate process. She wanted a plan that would allow her to transfer her assets smoothly from one generation to the next. Once we went through her long list of assets it became clear that if she were to die today a significant tax bill would follow because her asset levels exceed the current estate and gift tax exemption. (In 2016 that amount is 5.45 million per individual or 10.9 million for a married couple.) What s more because of the illiquid nature of some of those assets her plan to split her estate evenly between her kids would be nearly impossible. So we worked with her to remove assets from her estate and improve the allocation of her resources to better meet her needs and those of her heirs. Too many of us build an impressive net worth through decades of hard work and then lose a chunk of it due to poor planning and avoidable taxation. Having a liquidity strategy--a way of generating an adequate amount of cash to properly settle your estate--should be a crucial component of every estate plan. And life insurance plays a critical role in this process. COVERING ESTATE TAXES Imagine a scenario in which you die with 8 million in stocks and bonds but 25 million tied up in real estate. You have three children and want your assets divided equally between them. One problem here is that your liquid assets may not be enough to cover your estate tax bill and you still have the issue of dividing highly illiquid real estate. Trying to quickly sell your properties after your death in order to build up cash to cover estate taxes is a nightmare that could lead to discounted valuations and many avoidable costs and fees. Even if your heirs could gather enough cash to pay your estate taxes by selling your stock and bond portfolios they may run into issues when liquidating IRA accounts and creating taxable income. For example a 1 million IRA distribution could easily result in a 40 percent tax rate especially if you live in a state with a high tax structure. This can take a huge chunk out of your heirs inheritance. If instead you fund a life insurance policy early on you solve several problems at the same time. First the life insurance proceeds can be excluded from your taxable estate if a properly structured irrevocable life insurance trust is put in place. Second you create a liquid pool of taxfree cash that can be used to distribute money to your kids. Finally that same pool of cash can buy some time to properly sell off your real estate portfolio. BUSINESS SUCCESSION PLANNING Estate planning can be tricky enough when you re just dealing with a portfolio of stocks and bonds. Throw in a family business and things can get very sticky particularly when certain members of the family are more involved in the business than others. Life insurance offers a unique solution in terms of providing a lump sum of cash in the event the business owner dies or becomes chronically ill. Also because life insurance is generally funded through annual premiums starting many years in advance it ensures that the liquidity will exist when needed. This can make all the difference between a succession plan existing and actually being implemented. While life insurance can play a valuable role in business succession planning it is part of a broader conversation about how the business will transition in the future not only if the owners die or become disabled but also if they decide to retire. Our advisors can help you think through these scenarios and work out solutions. DEVELOP A PLAN WITH AN ADVISOR No one wants a few planning errors to cost their family millions of dollars that could have been used by future generations. This is why it s important to have an estate liquidity plan in place especially one backed by strong life insurance policies. If you instead fall into the trap of inefficient resource allocation the government will take a huge bite after you pass away. Avoid this trap by reviewing your estate plan with the experts at Howard Kaye. Howard Kaye can be reached at 561.417.5883 or hkaye 76 SEPTEMBER 2016 cordially invites you to join us as we celebrate the presented by FA M I LY O F R E C R U I T I N G C O M PAN I E S Thursday October 27 6 00 PM The evening will feature a cocktail reception followed by an awards program NSU Art Museum Fort Lauderdale One East Las Olas Boulevard Fort Lauderdale FL 33301 150 per ticket To purchase tickets or for more information please visit signature-events apogee Gold Sponsor Silver Sponsors SEPTEMBER 2016 77 Attractive Affluent C-Suite page is looking for South Florida companIES that want strong double digit revenue growth. Amerikooler walk-in coolers and freezers are that cold. Our industry-leading features and long-lasting efficiency make our coolers and freezers as cold as this list for years. When your rapidly growing business is heating up let Amerikooler keep you kool. For advertising and event sponsorship opportunities please call 954-377-9491 or email info 78 SEPTEMBER 2016 At we re experts at connecting people and businesses to the financial solutions they need to get ahead. ATTENTION Real Estate Professionals Mortgage Loan Officers Tax Preparers Financial Advisors... Turnkey Business-in-a-Box Financial Solutions for Your Business. Credit Correction Student Loan Consolidation Credit Card Debt Help Tax Resolution Loan Resources Financial Tools Visit today or call 800-810-0989 for additional information. SEPTEMBER 2016 79 gin ail ri O kt oc ar C B Ft ale s uderd al . La FT. LAUDERDALE S LARGEST WHISK(E)Y SELECTION BEST LIVE ENTERTAINMENT SERVED UP NIGHTLY WWW.STACHEFTL.COM Cocktails Thur-Sat DRINKBETTER COFFEE MON-FRI 7AM-5PM a DRINKBETTER COCKTAILS FRIDAY HAPPY HOUR 5-9PM LIGHT NIGHT DANCING REVOLUTION LIVE UPCOMING EVENTS 8-2 K Michelle 7pm 8-11 Bayside 7pm 8 25 bro safari 9 3 flux pavillion 9 16 tory lane 9 23-24 button south reunion 10 12 majid jordan 10 19 trivium 10 22 gta 10 23 beartooth 10 25 foals 11 3 pretty reckless 11 11 elle king 11 17 attila 9-10 Blind Guardian 7pm 11-5 Switchfoot and Relient K 7pm 11-16 Tegan and Sara 7pm 1-19 Moe. 8pm 1-20 Nonpoint 7pm Now Open Tues-Sun CWSLW.COM BA EN R K I TC H JOINTHEREVOLUTION.NET MYAMERICASBACKYARD.COM Beer Garden Scratch Kitchen Brunch Craft Cocktails Live Music and More 522 Lucerne Ave Lake Worth FL 33460 FOLLOW US STACHEFTL BOOK US FOR YOUR NEXT PRIVATE PARTY CONTACT CATHY FOX 954-449-1028 OR CATHY JOINTHEREVOLUTION.NET 80 SEPTEMBER 2016 109 SW 2ND AVE FT LAUDERDALE FL 33312 (954)449 1044 RSVP VIP STACHEFTL.COM Where Your Passion for Your Business is Celebrated T he Greater Fort Lauderdale Chamber of Commerce was founded as our community s first trade organization 105 years ago. Since that time the Chamber has worked in support of programs that strengthen companies and create a stronger community while promoting positive change. Join us at ARTOPIA September 24th and EXPERIENCE BETTER BUSINESS today Visit Artopia or call us at 954-462-6000 for more information. FTLCHAMBER.COM JOIN 512 NE 3rd Ave. Fort Lauderdale FL 33301 Info 954-462-6000 SEPTEMBER 2016 81 HISTORY VIEWPOINT Lucy and Desi Arnaz at a Miami reception circa 1965 (HistoryMiami Museum) Forget Lucy ... We Love Desi Long before there was Pitbull there was the original Mr. 305. Desi Arnaz is Miami s most famous Cuban entertainer of the 20th century best known for his portrayal of Ricky Ricardo on I Love Lucy. On screen he played a struggling band musician. Off screen he was the epitome of hard work. Desi Arnaz was born Desiderio Alberto Arnaz y de Acha III on March 2 1917 in Santiago Cuba. His family was wealthy--his father was a member of the Cuban House of Representatives and his grandfather was an executive at Bacardi Rum. After the 1933 revolt that brought Fulgencio Batista to power his family fled to Miami. Arnaz attended St. Patrick Catholic High School and Saint Leo Prep (near Tampa) to help improve his English and also spent a year at Miami High before going into show business to support himself. His music career began in 1936 when he joined the Siboney Septet as a guitar player. The group played at the Roney Plaza on Miami Beach where famous bandleader Xavier Cugat recruited Arnaz to join his orchestra. His big break came when he was cast in the Broadway show Too Many Girls in 1939 which led to his first film role in the movie adaptation of the stage show. In the early 1940s he returned to Miami with his own band and introduced the conga line to American audiences before he took on his most enduring role the on-screen husband of his real-life wife Lucille Ball. I Love Lucy ran on CBS from 1951 to 1957 and continued as a series of specials through 1960. I Love Lucy elevated Arnaz to a level of stardom and success many people admired for years. His iconic character helped make the show one of America s all-time favorites. At about the same time Arnaz and Ball founded Desilu Productions which produced Star Trek The Untouchables Mission Impossible The Andy Griffith Show and other shows from 1950 to 1967. Its roster also included I Love Lucy for which it retained ownership rights. That meant Desilu and not CBS controlled the rights to syndication--where the show lives on today. At the center of it all Arnaz a successful entertainer and businessman. Arnaz who died in 1986 was a man of many talents leading a professional life that proved to the world that any determined hard-working individual can thrive--even in show business. 82 SEPTEMBER 2016 DISCOVER THE ULTIMATE CORPORATE ESCAPE--AT SEA. 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Offer applies to select 4-night or longer cruises that depart on or after June 1 2016. Excludes Celebrity Xpedition transatlantic transpacific and South America repositioning cruises. Each of the first two guests in an ocean view veranda Concierge Class or AquaClass stateroom qualifies for one complimentary amenity each of the first two guests in a suite qualifies to receive four complimentary amenities with an upgrade to Premium Beverage Package. For an additional charge guests receive a choice of two amenities or four amenities with an upgrade to the Premium Beverage package. Charge varies by option and cruise nights. Onboard credit is not redeemable for cash and expires on the final night of the cruise. Offer applies to new individual bookings and to staterooms in noncontracted group bookings is nontransferable and is not combinable with any other offer. Offers and prices are subject to availability cancellation and change without notice at any time. 2016 Celebrity Cruises. Ships registry Malta and Ecuador. THE GAME CHANGER