BOB LOWE And MARIE BETANCOURT Herald Staff Writers

In Hialeah, the self-proclaimed City of Progress, public office often means personal profit.

It is a city where government decisions are clouded by open talk of bribery. Councilmen often use their votes to grant favors. Conflicts of interest are commonplace.

It is a city where long-range development plans are altered regularly, often enriching city officials, their relatives and business associates.

A three-month investigation by The Miami Herald into the running of Dade's second largest city found officials who rezone their own property and allegedly offer their votes for money and underpriced land.

"The amount of corruption is awesome," said City Councilman Paulino Nunez. "There's a tremendous cover-up going on. It's bad. It's real bad."

"The city has been destroyed by zoning corruption," said Jane Gentile, a city council gadfly who says a Realtor once offered her $2,500 to quell her opposition to a zoning change. The alleged offer was never reported to authorities.

"If they offer a private citizen $2,500 in cash to keep quiet, imagine how much they pay a council member," she said.

The most profitable game in Hialeah City Hall lies in zoning decisions, where a single vote can triple the size of a shopping center or double the value of a parcel of land.

It is a game in which Hialeah politicians are both players and referees. Four of the seven city council members are licensed to sell real estate. Key members of the council and city planning and zoning board are land speculators and developers.

One council member was paid more than $150,000 by developers whose projects he frequently votes for. Another helped ruin the city's plans for a park when she brokered the sale of the proposed site. A third was yanked out of a city hall restroom to vote on land-use changes that benefited his wife's client.

According to records and participants in Hialeah's zoning process, five council members and two members of the planning and zoning board have combined personal business with their public positions.

The Herald's research shows:

* Applicants for zoning changes and other city decisions say that some city officials and their representatives solicit bribes and real estate bargains in exchange for their votes. Most of the allegations have never been reported to authorities.

Two Hialeah politicians, Councilman Nunez and former Councilman Julio Martinez, say they were offered bribes by fellow members of the city council.

Bribe reportedly offered

When a new Chuck E. Cheese pizza restaurant encountered licensing problems in Hialeah two years ago, restaurant executives say a lawyer purportedly representing city council members offered an easy way out. The solution -- $50,000 in small bills deposited in a Bahamian bank account.

* Conflicts of interest are common. City officials vote to change the Hialeah master plan and rezone property in which they and their relatives, employers and business partners have financial interests.

When council President Andres Mejides discovered that only 12 apartments could be squeezed onto a small parcel of land he is helping to develop, he asked the council to rewrite the Hialeah zoning code to allow six more.

Mejides said he was acting on behalf of a friend but two other city officials, including one who sold the land, say Mejides admitted having an interest in the property.

* Council members admit the outcome of many city decisions are determined in private, closed-door meetings where they lobby each other in violation of Florida's Sunshine Law.

Recalling the once-amiable relationship among council members, Councilman Silvio Cardoso said: "I talked to (them) about a lot of items. What do you think about this? What's your opinion? It was a very friendly type of conversation."

* While they decided the fate of the largest and most controversial development in Hialeah, four members of the city council and two planning and zoning board members tried to make money buying and selling land in the project.

In the buying frenzy, said the company that developed the $200 million Mango Hill project, some officials used their votes in an attempt to obtain choice homesites and real estate bargains.

"The pressures were distinctly guided to get us on our knees to sell at way below market value," said Philip Spiegelman of Tridel Construction Inc. "They would walk in like a bunch of vultures and make a big score."

Mixing business

* Officials mix private interests and city business, sometimes with costly results.

Councilwoman Ruby Swezy brokered the sale of an abandoned gas station that the city had planned to acquire for a park since 1979. The sale spoiled the city's plans.

What was to have been a grassy entranceway to Hialeah's new hotel-convention center will hold, instead, a pawnshop.

Swezy said she did nothing wrong.

In Hialeah's wide-open zoning game, decisions are often based on personal and political friendship rather than the welfare of the city.

Said Councilman Cardoso: "You know how it is. A friend comes to you. He asks for your vote. You have to help. I'm just a softie at heart."

"It gets you re-elected because you continually do favors for people."

Others on the council are less forgiving.

"There is something wrong," said Councilman Ray Robinson, a vice president at Consolidated Bank. "Some of the zoning granted by the council is outrageous. It's rezoning for profit."

Big bucks

Said Nunez: "Developers are making big bucks on changing property. They've found an easy way to make money by . . . buying property conditional on a change of zoning and make big, big money when the change is made."

"It's sad because we're turning Hialeah into a big shopping center."

Some politicians have taken steps to distance themselves from the city's conflict-and-favors zoning process.

Hialeah Mayor Raul Martinez regularly leaves the city's council chambers when the council hears planning and zoning matters. He had little comment on The Herald's findings concerning his colleagues.

"I do not get involved in their personal lives," said Martinez. "I'm not here to judge other people. They might have other desires, other needs, other wants different from mine."

Martinez said he was unaware that council members discuss city business in private.

"Maybe we ought to send them a copy of the Sunshine Law," he said.

In Hialeah's strong-mayor form of city government, the mayor does not have a vote on the council. He heads the city's administrative staff, much as a city manager does in the council-manager form of government.

Julio Martinez said that when he filled a temporary vacancy on the Hialeah City Council three years ago, he had no inkling of corruption.

'Quick awakening'

"I had a quick awakening as soon as I got there," said the former councilman. He said former council member Joanne Coleman offered him a bribe to vote for a low-income housing proposal.

"She said, 'There's a thousand dollars for you if you vote for it,' " said Martinez. "I played along with her. I said, 'They're taking you.' "

"They started at $1,000. Then they came up to two. I said no. They came up to five. I said, 'I don't care how much you offer, I'm not going to vote for it.' "

The former councilman said Coleman told him that Cardoso was distributing the bribe money to the others on the council. Both Coleman and Cardoso denied the allegations.

"He holds a negative grudge against me," said Cardoso of former councilman Martinez. "It's total hatred."

"I wouldn't be stupid enough to make someone an offer like that," said Coleman.

Said Martinez of his brief stint on the council: "I can take some crookedness but not that damn much."

Located in west Dade County, Hialeah usually remains outside the spotlight of both the media and law enforcement agencies. It is a community of 180,000 residents, the fifth most populous city in Florida, and has traditionally been a working- class town.

Loose zoning and strained family incomes have turned much of the city into crowded, car-filled neighborhoods. Small shopping centers and an endless collage of signs line the main thoroughfares.

'Garish neighborhoods'

"You see zoning abominations, incredibly garish neighborhoods," said Oscar de la Guardia, a 26-year-old Miami lawyer who grew up in Hialeah. "There are illegal duplexes. Garages converted into stand-alone apartments. Too many shopping centers."

"It was a nice place. It isn't anymore. There's nowhere in the city I would want to live because of the lax attitude toward zoning. They all seem to think of Hialeah as a zone of economic incentive."

The Latinization of Hialeah -- 80 percent of the city is now Latin -- has brought a new wave of officeholders. City politics are now dominated by young Cuban businessmen who are also important in the Hialeah Latin Chamber of Commerce, an increasingly influential fund-raising group.

But unbridled development and profiting from public office is nothing new in Hialeah.

The late Henry Milander was convicted 14 years ago of grand larceny. Eleven months later he was re-elected mayor.

Said one long-time Hialeah resident and former council member: "The only thing different is that everyone talks Spanish now."

Florida law requires an officeholder to disclose any private interest when he votes on a measure that will result in a "special private" gain for him or his employer.

The state Commission on Ethics investigates alleged violations. Infractions can result in removal from office, forfeiture of salary, fines up to $5,000 and restitution of illegally obtained benefits.

State law also bars public officials from corruptly using their positions to obtain special benefits for themselves or others and forbids trading votes for anything of value.

Officials accused

Here are some of the Hialeah officials accused of mixing private and public business:

* Former University of Miami running back Silvio Cardoso said he was a man of modest means when he was elected to the council five years ago. The 32-year-old, prematurely gray Cardoso now estimates his net worth at $600,000.

He handles million-dollar real estate deals and, next to Mayor Raul Martinez, is considered Hialeah's most powerful politician.

The road from rags to riches has been paved by a succession of relationships with many of the same people who ask for his vote on zoning cases.

Cardoso describes himself as "pro-development 100 percent" and concedes: "Anybody that applies for anything usually gets it."

His attorney is Michael Osman, one of Hialeah's busiest zoning lawyers. Cardoso votes on his cases. Both deny any conflict of interest.

Cardoso's early mentor was developer Vincent Leal, a frequent rezoning applicant who now sits on the Planning and Zoning Board.

A licensed real estate salesman, Cardoso has been paid commissions totalling more than $150,000 by developers whose zoning cases he frequently votes on.

Most of his commissions -- $95,000 worth -- came from Domingo Pando and Juan Menendez, two developer-partners who pay Cardoso under an unusual relationship. He says he is paid automatically whether or not he participates in the transaction. The pair are among the biggest developers in booming west Hialeah.

The Herald's investigation found several bribery allegations involving Cardoso. He denied all of them.

'Higher standards'

"I think I follow higher standards than anybody else here on the council," he said.

Three years ago, Councilman Nunez, then a member of the city Housing Authority Board, told the Dade State Attorney's Office that Cardoso had explained to him and other board members how they would receive thousands of dollars in kickbacks if they voted for a housing project.

Cardoso and the other board members denied the allegation. Faced with contradictory testimony, the Dade grand jury did not charge the councilman in the case.

Former Councilman Julio Martinez said he once paid Cardoso and former mayor Dale Bennett $400 on behalf of a friend seeking a permit to modify his business.

Bennett refused to answer a reporter's questions. The friend denied Martinez's account. Martinez said his friend, who requested anonymity, fears retribution if he tells the truth.

Cardoso maintained that Martinez, who has failed in two attempts to win a council seat, harbors a grudge because of his lack of success at the polls.

Spiegelman, the developer of Mango Hill, said Cardoso tried to pressure him into selling 18 lots to a client. Cardoso would have made about $13,500 in commissions on the deal.

"Cardoso came in . . . and said, 'I want these lots and if I don't get these lots, I won't be favorably disposed to anything you do,' " said Spiegelman. The developer said the lots were already committed to someone else.

Cardoso admitted trying to buy the lots and said the Tridel firm backed out when someone offered more money. He denied pressuring the company.

"I don't get upset about those things. It's not worth it. I just go look for another deal."

Profit denied

According to Cardoso, neither he nor other council members profit from their positions.

"The mayor and I won't permit it. Anytime we know of anything conflictive that might not even be illegal, we take action to stop it."

"The reputation of Hialeah has taken a long time to build and it is a very positive one. And we will not permit it to be a very negative one."

* Vincent Leal, a 46-year-old land speculator and developer, had a reputation for requesting controversial zoning changes before former Councilman Jimmy Gunn appointed him to the Hialeah Planning and Zoning Board in 1982.

Over the past 20 years, Leal has been arrested but never convicted for numerous offenses ranging from alleged drug dealing to shooting his wife's ex-husband.

The Herald's investigation found evidence of Leal's personal interest in five cases in which he voted without disclosing any involvement.

Last September Leal voted to protect multifamily zoning on property in west Hialeah. The owner of the land said Leal had already agreed to purchase some of those same lots from him.

Mango Hill's developer said that Leal tried unsuccessfully to buy 10 acres for a bargain price and guaranteed approval of Mango Hill's zoning requests if the sale went through. He then cast votes when the developer tried unsuccessfully to develop the land.

Nunez and Leal's business associate say Leal revealed to them that he had an interest in residential land when he cast a vote to rezone it for a controversial shopping center.

Leal denies being involved. The land, which was the focus of the most hotly contested rezoning case in Hialeah last year, was in the name of Leal's 21-year-old brother-in-law.

No answers

Leal is the only city official who refused to answer reporters' questions.

* Ruby Swezy, 61, is a long-time real estate broker in Hialeah who operates Swezy Realty and has extensive holdings in the city.

Before she was elected to the council, Swezy bought land near Hialeah's downtown which the city hopes to rejuvenate by building a new hotel-convention center.

Swezy routinely votes on plans for the area as a member of the council, which doubles as the city's redevelopment board.

"Anything I vote on in redevelopment will, hopefully, increase the value of that land. That is one of the main reasons I am interested in redevelopment," said Swezy.

"I don't consider it a conflict of interest. The fact I had faith in the downtown area and it didn't pay off is sad."

Swezy also is brokering the sale of land to a company for an apartment complex that required the city's approval. Swezy was absent when the city council voted on the project in August. She said her role in the transaction was well known and that the land sale, which did not depend on any rezoning, occurred before the council vote.

But Dominium Group Inc. had paid only a $1,000 deposit for the land when council members approved the project. The sale depended upon the city's decision to help the company obtain tax-exempt bonds and a $4.8 million federal grant, said Dominium Group vice president Jack Safar.

"They were looking for land," said Swezy of Dominium Group. "I did not learn about it through city hall. Had I known about it through city hall, maybe that would have been a conflict."

Swezy said other council members hoped to get commissions on the deal as she did.

Swezy said she received a $4,600 commission for handling the sale of land that the city had intended to buy for a park. The sale ruined the city's plans.

The purchaser said in court proceedings that Swezy should have known better than to sell land that the city wanted. Swezy blamed the city's staff for waiting too long to acquire the property. She maintained the staff had chances to block the sale.

"The city was aware it was for sale," she said. "If the city was going to take it, it should have sent a notice of intent."

"I wouldn't want to represent the city if it's going to take away my livelihood," said Swezy. "Real estate's my business. I don't see any conflict of interest."

* Council president Andres Mejides is an Eastern Airlines technician whose wife, Maria, sells real estate for Pedro Realty.

Recently, the city council was asked to change the Hialeah master plan for property that Maria was selling. Andres Mejides had momentarily left the meeting when the council began voting on the question.

The vote was tied at 3-to-3 when Mejides rushed in to break the deadlock. His wife later told a reporter she had to fetch her husband out of the restroom to ensure the master-plan change passed.

When the council took a final vote on the property two weeks later, Mejides abstained as the item was approved. He said he didn't know his wife was involved in the sale.

Maria Mejides showed reporters a contract indicating the sale of the property did not depend upon the council's vote. She said the council action cleared up a legal problem keeping her client from developing the land.

Both Mejides' denied any conflict of interest.

Mejides' recent proposal to rewrite Hialeah's zoning code was partly intended to permit a larger building on land he is
helping to develop, he conceded. His proposed revisions would change the way the city computes housing density.

Helping a friend

Mejides said he is merely helping a friend who owns the apartment site. The zoning code does not allow more than 12 units on the land. Mejides' proposals would permit 18.

But Cardoso, who sold the land, said Mejides negotiated the purchase.

"He told me he wanted two of the lots for himself," said Cardoso. "And then at the end he didn't close in his name."

Said Mejides: "I don't know why he said that. I don't have any financial interest in it."

Mejides' friend did not return phone messages left for him.

Assistant City Attorney Richard Gross said Mejides told him that he does have an interest in the property.

"Andy came in and asked me if it would be a conflict if he were to vote on a rezoning and then purchase one of the lots," he said. "I asked him if he had signed a contract. He said he had a verbal agreement."

"In fact, they told me later they had invested a lot of money in it."

* Sebastian Dorrego, a public relations coordinator at Trust Bank, was elected to the council 14 months ago promising to lower crime and taxes.

A few months after his election, Dorrego was the subject of an FBI investigation that included allegations made by Hialeah businessman Julio Navarro.

Bribe alleged

Sources said Navarro told authorities that a friend of Dorrego's solicited a $15,000 bribe in exchange for the councilman's vote on a zoning case. Navarro was seeking a zoning change to build a combination shopping center-apartment on Okeechobee Road. No money was paid, said the sources.

Navarro would not comment on the allegations. Dorrego and the alleged middleman, Sammy Diaz, denied soliciting a bribe.

Asked whether he had approached Navarro for money, Diaz, a member of the city personnel board, said: "Of course not. That's the first I've heard of it."

"That really surprises me," said Dorrego of the accusation. "I don't do that type of thing."

* Herman Echevarria, 29, is a good bet to join the city council before the year is out. A former member of the planning and zoning board, Echevarria is president of the Hialeah Latin Chamber of Commerce and a protege of Cardoso and Mayor Martinez.

Echevarria plans to run for a council seat later this year.

He resigned from the planning and zoning board in November, saying he wanted more time to devote to his business and the chamber. But Cardoso said he asked Echevarria to resign because of "conflictive" situations.

Echevarria benefited from a rezoning that allowed him to build two duplexes where an old house had stood before. Echevarria voted for the rezoning and closed on the property six weeks later. He says he bought it through fellow zoning board member Leal who also voted for the rezoning.

Echevarria said he decided to buy the land after the rezoning. He denied any conflict of interest.

Echevarria also voted to rezone property to house a new bank in which he is a director and stockholder.

"I had no interest in the bank at that time," said Echevarria of the rezoning. "Right after that is when I came in. I was not a director until after that."

However, Global Bank's state banking application contained a biographical form for Echevarria that indicated he would be a director. He completed and signed the form four months before he voted to rezone the bank site.