March 6, 2007
Numbers to be real test of insurance legislation
Property insurance was “the” issue for the special session of the Legislature in January, and it remains “an” issue during the regular session that begins today.
Legislators and Gov. Crist got justified credit two months ago for taking a first step toward reducing rates in exchange for higher overall public risk. Based on what has happened since that special session, however, it’s even clearer that property insurance reform must remain as much of a priority as property tax reform, the issue of the moment.
As news reports have shown, the rate “relief” from the special session will vary greatly and will underwhelm many Floridians who read last week’s state-issued prediction that rates could drop by an average of one-third.
The centerpiece of the bills in January was one that increased the amount of cheaper, state-subsidized reinsurance available to companies. Private reinsurance, which most carriers buy on the worldwide market to insure themselves, accounted for much of the premium increase last year. But State Farm Florida, one of the largest private home insurers, was getting low-cost reinsurance from its parent company in Illinois. State-run Citizens Property Insurance Corp., which now has the most policies in the state because private companies have canceled so many customers, has been buying reinsurance from the state.
As a result, those policyholders will see less reduction in their premiums. Indeed, the greater “savings” to Citizens customers probably will be from the state canceling two rate increases of 21 percent and 56 percent. Though the second was not justified, the first probably was necessary to build up Citizens’ resources. One early, key item for the Legislature will be to review the business plan from Citizens that would enable the company to sell “multi-peril” policies — wind, fire, theft, liability — in the high-risk zones where it now only can sell wind coverage. The extra revenue would help Citizens pay hurricane claims and reduce the need for more statewide assessments to cover losses.
Customers whose policies renew before June 1 may have to wait until next year for relief. Only after that date do companies have to factor the cost of cheaper reinsurance into their rate filings. A busy storm season could change that calculation.
Numbers were as plentiful as eggs at Easter when the Legislature estimated how much customers would save from the law that came out of the special session. Real numbers will hit Floridians during the eight-week regular session, and each number will be a gauge of how much work remains on property insurance “reform.”
Lake Worth: Pass supermajority vote
To prevent bad development projects, elected officials have to say “No” over and over. To allow bad development projects, elected officials have to say “Yes” just once.
Given what can be at stake, and given the recent record in Lake Worth, The Post recommends that voters make it a little harder for the city commission to say “Yes.” To do so, Lake Worth residents should say “Yes” to Charter Amendment 1 in Tuesday’s election.
The measure reads, “Adoption of a rezoning, comprehensive plan or plan amendment requires super-majority city commission approval.” If it passes, four out of the five commission votes will be required to approve the changes often required before major development projects can go forward.
Realtors and others oppose the charter change and predict that it will stifle growth. But requiring a supermajority, as the charter change would, actually is a more flexible tool than changes that would impose height limits or density caps. If the supermajority passes, developers still can get changes; they’ll just have to work harder — and perhaps submit better plans — to build the necessary consensus on the commission.
The supermajority measure is on the ballot because of 3-2 votes in 2005 that angered residents of Lake Osborne Heights. Despite strong opposition from that single-family neighborhood, the commission voted to annex a 4-acre property that was zoned for five units per acre, then immediately “upzoned” the property to allow a 40-townhome project with double the density.
The supermajority charter change could affect the latest beach proposal, which also has advanced on a series of 3-2 votes but still needs zoning approvals. Requiring four votes wouldn’t necessarily doom the project; it would require the developer to submit a plan that builds consensus, primarily by answering questions about access for residents. And if the beach plan fails, the onus will be on commissioners who voted against it to provide for beach improvements.
A second charter change on the ballot provides for “Elections for members of city commission to be held in November” instead of March. The idea is that turnout will be greater in every-other-year state elections. But what about that off year? And city elections can get lost in the welter of federal, state and county contests. The Post recommends a “No” vote.
Riviera Beach: Back Ocean Mall plan
Two charter amendments on Tuesday’s ballot, if passed by Riviera Beach voters, would undo the proposed $280 million makeover of the dilapidated Ocean Mall that fronts the public beach on Singer Island. Voters can limit leases on the publicly owned land to 50 years, and limit building height to five stories. With Riviera finally on the verge of fulfilling a major redevelopment promise, The Post recommends that residents vote NO.
One reason it has taken so long for anything to happen on the 11-acre mall site is the desire of many island residents to enjoy a sedate lifestyle. That also helps explain the petition initiative led mainly by island residents. Those citizens are as within their rights to challenge the mall plan as the city’s elected officials were to approve it. But the inability to get beyond some of the hype explains why the amendments are on the ballot.
“People were lied to to sign the petitions,” said City Councilwoman Vanessa Lee, “and lied to not to sign the petitions.”
Ultimately, most residents want the benefits of the mall’s redevelopment. Those benefits should include preservation of, and improved access to, the public beach. Dan Catalfumo’s proposed 28-story Marriott condo/hotel, plus shops and restaurants would remove a long-standing eyesore without encroaching onto the beach itself. Residents say the development not only would mean space to bring conferences and have their weddings, it also would eliminate their need to go to CityPlace or Downtown at the Gardens for a restaurant, or to take visiting family and friends to Fort Lauderdale and Miami Beach. Meanwhile, the tax revenue could finance overdue street improvements and the hiring of more police officers.
For those who want nothing to happen on the island, the project is far from ideal. But it is drastically scaled down from the three-tower proposal conceptually approval several years ago. The biggest reason to vote against these amendments — and thus for the Ocean Mall plan — is that opponents of the project don’t have an alternative that would be good for Riviera Beach. The city has fiddled for years with the 33-year-old mall. It may be on Singer Island, but the property belongs to the entire city, and the entire city will benefit from NO votes.
Open deals for Martin
It’s a simple suggestion: Make owners who want to develop property identify themselves by name.
The idea is so simple that it should have been made law years ago. But two Martin County lawyers who have asked county commissioners to make all investors in a piece of property identify themselves and disclose their interests got no support from the commission majority of Michael DiTerlizzi, Doug Smith, Lee Weberman, and often Susan Valliere. Only Sarah Heard supports ownership disclosure.
County rules now require property owners to provide a deed and identify themselves only by a company name, allowing the developers to hide behind names of attorneys or land planning firms. Virginia Sherlock and Howard Heims, who often represent clients opposing development, say the companies identified as owners often are “shell” companies owned by other firms. Tracking who stands to benefit financially from a development becomes difficult or impossible.
Commissioner Heard points out Palm Beach County, where ex-commission Chairman Tony Masilotti resigned because of a secret land deal that will send him to prison, now requires disclosure of ownership interest for each applicant and property owner seeking county approval. Without required disclosure, she said, “we could approve a development or make a (growth plan) amendment for an owner laundering money from illegal drug sales or terrorism support.
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Commissioner Weberman called suggestions to make owners identify themselves “a fishing expedition,” and said county forms requiring disclosure would make no difference to people determined to conceal information. Commissioner Smith said commissioners already disclose all their interests and Commissioner DiTerlizzi complained that the two lawyers were trying, unfairly, to tie Martin commissioners to the Palm Beach County scandal.
All those protests, however, miss the essential point: If a developer has a credible proposal, why would he or she be afraid to disclose the names of the investors? A land planner whose name is on many Martin development applications contends that it’s not commissioners’ business to know who owns the land. He is wrong. Whether a project gets approved can depend on who is involved, not just what is proposed. Since the decision affects the public, the public should know.
March 5, 2007
Go beyond the border on immigration reform
Guest-worker programs often have failed because they didn’t provide enough incentives for immigrants to participate. Why would a farmworker or construction laborer who could expect to earn minimum wage and get no benefits bother dealing with government red tape, fees and scrutiny without the promise of an attainable payoff for compliance with the system? If there’s no payoff, there’s no participation.
Yet two senior Bush administration officials are trying to sell Congress on another guest-worker program that doesn’t offer enough incentive to join. Commerce Secretary Carlos Gutierrez and Homeland Security Secretary Michael Chertoff told the Senate Judiciary Committee last week that a path to legal status isn’t necessary to make workers participate. “I’m not sure everyone wants to be a U.S. citizen,” Mr. Gutierrez said. “Many just want to be able to work, and if they can work legally, one day they would like to go back home.”
Certainly, many immigrants want only the opportunity to work temporarily and then return to their native countries. But it’s doubtful that most of the estimated 12 million illegal immigrants already living in the United States — some of them for many years — would join a program that ultimately would send them home. Without a payoff in citizenship or permanent residency, attempts at reform will succeed only in creating a permanent underclass of people who live here, and thus have no stake here, or reason to embrace the country.
Sens. Edward Kennedy, D-Mass., and John McCain, R-Ariz., addressed that problem last year when they proposed a reform bill that called for a six-year path to permanent residency, with the possibility of citizenship later. The government would require immigrants to undergo background checks, learn English and pay fines and back taxes. The bill passed the Senate but died an acrimonious death in the House because of fierce opposition from the election-minded, anti-reform-minded Republican majority. Sens. Kennedy and McCain are writing another version of the bill that they will bring forward soon, and both believe that the chances of passing legislation are better this year.
Besides having a Democratic majority in Congress that supports comprehensive reform, efforts to secure the U.S. Mexico border have shown signs of working. According to news reports, Border Patrol officials have found that they can reduce illegal crossing not only with fences and motion sensors but also with jail cells. Instead of capturing, then immediately releasing illegal immigrants in Mexico, the government is incarcerating them for weeks or as long as six months. At this point, the threat of jail time appears to be a deterrent.
The economic forces that drive illegal immigration, however, won’t change. Last week, The Miami Herald reported that some hotels in Miami-Dade County are seeking maids from as far away as Korea. Immigration reform has two essential parts: controlling the border and opening a way to permanent legal status. President Bush has said that he agrees. One hopes that Mr. Chertoff’s comments don’t represent a change in the president’s thinking.
Choose Lowe, Golden
Three good candidates are running to replace Nadine Burns as the District 3 city commissioner in Lake Worth. The Post recommends that voters elect Jo-Ann Golden on March 13. In District 1, The Post recommends incumbent Retha Lowe.
Ms. Golden correctly says that there’s “lots of animosity” in the city and on the commission and promises that “I can bring people together.” She notes that her “day job” as project manager for the Lake Worth Community Development Corp., a not-for-profit that builds affordable housing, involves “working with lots of folks.”
She will need to be ready to work with people, since she opposes the beach project agreement with Greater Bay that Commissioner Burns helped push through. Depending on who wins the other races and the outcome of a related referendum, Ms. Golden could become a swing vote on the beach plan. If that project doesn’t fly, Ms. Golden is committed to making improvements to the beach complex and has the temperament to make something happen eventually.
Ms. Golden has been heavily involved in city and community groups, including the Ad Hoc Code Committee and the Stakeholder’s Advisory Committee. Ms. Golden, who has a degree in Latin American studies, favors creating a labor center for immigrants based on the approach that is working in Jupiter . She thinks the electric utility upgrade should go forward.
Wes Blackman, also running in District 3, favors the beach proposal and has extensive service on Lake Worth boards. The third candidate, Drew Martin, is an environmental activist who retired after a career in the computer software industry. He opposes the beach project.
The Post gives Ms. Golden the edge on the expectation that she will be slightly more careful on growth than Mr. Blackman and slightly more pragmatic than Mr. Martin. The danger is that she could become a down-the-line opponent of growth.
In District 1, Commissioner Lowe voted for the beach project, wants to continue with the electric utility upgrade and supports creating an immigrant job center to match day laborers with employers. Her opponent — once again — is Ron Exline, who opposes the beach project and day labor center.
If reelected, Commissioner Lowe must renew efforts to get along with whoever is elected with her. The culture of animosity has crippled Lake Worth and must change for the city to progress.
No seat belt? Ticket
Irv Slosberg may be out of the Legislature, but one of his pet causes lives on.The former state senator tried for years to allow police to ticket drivers just for not wearing a seat belt. Currently, failure to belt up is a secondary offense, meaning that police can write a ticket only if they stop a driver for another violation.
House Bill 27, sponsored by Rep. Rich Glorioso, R-Tampa, already has cleared a committee. The bill, which has a Senate companion, is named for Mr. Slosberg’s late daughter, Dori, who died in a car crash in 1996, and Katie Marchetti, a 16-year-old from the Tampa area who last year was thrown from a car and killed. Neither girl was wearing a seat belt.
In previous years, some minority legislators opposed such legislation, fearing racial profiling, but now there is less resistance. Some may see it as excessive government, but one study calculated that it could save about 1,200 lives in Florida.
Many other people could be spared extensive, crippling and costly injuries that drive up insurance costs. All that would be worth a new law.