The quarterly update includes the following objectives, highlights and activities below:
1. Real Estate Assets and Joint Development (P3)
Objective: Performs financial analysis; investigates and identifies financing mechanisms for potential public/private partnership developments. Negotiate investment, incentives, partnership agreements in concert with development plans and initiatives. The department currently managing the following:
§ Economic Development Consultant Services: On April 10, 2019, the City Commission approved a resolution authorizing the administration to enter into simultaneous negotiations with five firms to establish a pool of pre-qualified consultants. This pool has been completed and staff is working on several economic development projects including cost/benefit analysis of the MXE district with Lambert Advisory.
§ CBRE Real Estate Advisory and Transaction Services: The administration is working with CBRE to develop a scope of work (SOW) and strategic plan to help guide real estate decisions in Miami Beach. The SOW may include the following:
o Develop an asset inventory;
o Perform organization review of administration and management of real property;
o Review real estate policy;
o Develop office space standards;
o Review mission critical/administrative real estate;
o Create prioritized assessment of real estate holdings: Identify strategies (broad and specific) to support community and economic development;
o Develop disposition strategies for surplus property that may focus on properties that are vacant, unused or marketable.
The administration plans to bring back this proposed project to the Finance and Economic Resiliency Committee in summer 2020.
In addition, staff has engaged CBRE on other strategic real estate services through an existing professional services agreement that was executed on October 24, 2017 between CBRE and the City. The services include market research and data, preparation of marketing materials and evaluation of three existing P3 projects outlined below (Byron Carlyle, Collins Park Parking Garage and Barclay Workforce Housing projects).
2. Revitalize Targeted Areas and Increase Investment
Objective: Create a holistic approach to advance economic vitality in targeted areas, execute strategic projects and initiatives to maximize the positive economic impact on the City of Miami Beach.
Quarterly highlights and activities include the following:
§ Vacant Storefront Program: The city, in partnership with property owners, has installed twenty-eight vacant store front covers throughout the city to activate and minimize potential impacts of street level vacant storefronts. Owners of vacant properties can request the installation of any of the five designs, all of which are works by local Design & Architecture Senior High (DASH) students.
§ Pop-Up Program: Since March 2019, fourteen permits have been issued as part of the program. Staff continues to work with property owners, brokers and business organizations to market the program. We had our first pop-up to BTR: Bonefly on Lincoln Rd.
North Beach:
Objective: Organize stakeholders to collectively focus on this area for a continuous five-year period and explore various tools and financing methods that could be used to develop this area and implement plans. Outcomes includes creating a Community Redevelopment Area (CRA), execute P3 projects and implement GO bond projects.
Year-to-date highlights and activities include the following:
§ Rue Vendome Streetscape Project: construction will commence in March 2020.
§ Hydroponic Farming: on January 14, 2020, the City Manager issued a Letter to Commission (LTC) regarding the discontinued negotiations pursuant to ITN 2019-138-KB for a Hydroponic Farming Partnership with Energy Cost Solutions Group, LLC (ECSG) until such time as the City develops its long-term plan for the West Lots.
§ Byron Carlyle RFP: On June 28, 2019 the City received two proposals from Pacific Star Capital, LLC and the Menin Hospitality and KGTC, LLC to redevelop the Byron Carlyle the 31,500 square feet (SF) site and P85 properties located on the southeast corner of 71st Street and Carlyle Avenue with the option to include the 12,625 SF P80 surface parking lot. Pacific Star Capital has proposed ground floor retail, two story cultural component, eight story-hotel with 160 rooms, and a roof top deck on the Byron Carlyle site; and retail on the P80 site. The building will be 11 stories plus a roof top deck. They have proposed approximately $8 million as two lump sum payments for a 99-year lease and requesting full conveyance of title for the P80 site. The Menin Hospitality & KGTC, LLC proposal includes ground floor retail, ground floor cultural center, and 6 floors of 120 workforce housing units on the Byron Carlyle site; and a five-story office building on the P80 lot. It appears they are requesting ownership of the workforce housing and office building and conveying ownership to the City for the cultural amenity.
On January 6, 2020, the Administration in partnership with the city’s consultant CBRE interviewed Menin Hospitality and KGTC, LLC and Pacific Star Capital to discuss their proposed development projects, timelines, proforma, community and economic development benefits, experience developing comparable projects and financial ability to perform. The next step is complete our due diligence and make a recommendation to the Finance, Economic and Resiliency Committee summer 2020.
§ Community Redevelopment Area (CRA): On July 17, 2019 the Commission approved the Finding of Necessity (FoN) and directed the Administration to transmit the FoN to the County to initiate the creation process of a North Beach CRA.
o On October 31, 2019, the City of Miami Beach presented the FoN to the Miami-Dade County Tax Increment Financing and Coordination Committee. The Committee included staff from Planning, Housing, Budget, and the Property Appraiser. The Committee accepted the FoN and made a motion to recommend the City consider extending the boundary into the Crespi area of Miami Beach to help retain and create opportunities to leverage city and county programs and services for attainable housing.
o On January 15, 2020 the Administration presented a resolution to the Mayor and City Commission to accept the revised preliminary report that included the expanded boundaries and updated FoN. The Commission directed the Administration to hold additional community meetings to educate and inform residents, property owners and businesses on the formation and benefits of a CRA.
o On February 18, 2020, the city hosted a public meeting on the proposed community redevelopment area in North Beach. Over 150 residents, businesses and property owners attended the meeting to learn about benefits of a CRA and how we can leverage tax increment financing for community revitalization in partnership with Miami-Dade County. Staff has also attended several community events and hosted community walk-in days at the North Beach city annex as part of the CRA community outreach efforts.
o Next steps are to bring the updated FoN and expanded boundary back to the City Commission on March 18, 2020 . If the City Commission approves the FoN, the Administration will then submit the FoN to the County for placement on a county commission committee meeting agenda. If approved by the county committee, the FoN and the proposed CRA will be transmitted to the full Board of County Commissioners for a vote to approve a new CRA in North Beach.
41st Street Corridor
Objective: Continue to partner with the Mayor’s Ad-hoc 41st Street Blue Ribbon Committee (41st Street Committee) and the community to identify corridor improvements and activation, mixed-use development including office, residential and retail development and implement a district wide study focusing on 40th to 42nd Streets.
41st Street Committee Updates:
§ On December 11, 2019, the City Commission approved a resolution and directed staff to install lighting enhancements along the 41st Street corridor from Alton Road to Pine Tree Drive. Staff is working with the contractor to install the lights in the second quarter of 2020.
§ On February 16, 2020, the Administration executed a professional services agreement with AECOM to develop a Master Action Schedule Project for the 41st Street Corridor. The project will focus on land use, transportation and mobility and economic development along the corridor. The project will commence in February 2020 and be completed by fall 2020. The consultant will meet with the following stakeholders: the committee, Florida Department of Transportation (FDOT), Miami-Dade County, city staff from the city manager’s office, planning, transportation, parking, economic development, public works, capital improvements, and GO bond. Existing city commission approved plans will inform the process, as well as existing FDOT and county plans and associated project funding.
§ Staff is working in partnership with the 41st Street Committee to implement a 90-day pilot farmer’s market that will be launched on Sunday, March 1, from 9 a.m. to 2 p.m. located at the intersection of 41st Street and Pine Tree Drive. If the pilot is deemed successful, staff will come back to the City Commission to request funding for the market every Sunday on a year-around-basis. To date, twenty-five vendors have signed on for the market.
GOB $15 Million Neighborhood and Infrastructure
- Tranche 1 & 2 ($3 M) – (2019 – 2022) for shade structures, lighting & bike lanes
- Tranche 3 & 4 ($12M) – (2022-2025) widening of sidewalks (pending FDOT approval) and replacement parking.
Washington Avenue Corridor:
Objective: Influence place-making, high design standards, vibrant public spaces, and mixed-use development to spur further development along Washington Avenue.
§ Land-Use, Mobility and Economic Development Study: On May 8, the City Commission approved a request to issue a request for qualifications (RFQ) for the entertainment district. Two proposals were submitted by Zyscovich, Inc. and BusinessFlare. On July 31, the City Commission adopted a resolution authorizing the City Manager to enter into negotiations with Zyscovich, Inc. as the top rank proposer. Staff is finalizing the scope-of-work and budget for the study.
Ocean Drive:
Objective: Provide support, identify and structure collaborative partnerships so that Ocean Drive has year-round utilization and economic impact to the city.
§ On January 15, 2020 the city commission approved the formation of the South Beach Business Improvement District (BID). On February 12, the city commission approved commencing elections for property owners in the proposed district to vote whether or not to approve self-assessment in order to subsidize the BID.
3. Business Attraction
Develop strategies to increase the number, types and quality of companies and businesses to relocate to Miami Beach.
Objective 1: Develop a Business Attraction Strategy
§ Identify key industry sectors to recruit companies and businesses to the city;
§ Develop an analysis of recruitment strategies, programs and efforts from peer communities;
§ Incorporate best practices into Miami Beach business recruitment program;
§ Identify and analyze factors that influence companies to locate to the Miami region.
Quarterly highlights and activities include the following:
§ Staff is working with the Beacon Council to host the next economic development partners meeting in Miami Beach in April 2020. The meeting will bring together economic development professionals from around Miami-Dade County to learn about all the projects and initiatives in Miami Beach and the region. The Miami-Dade Beacon Council’s mission is to support new job generating investments through assisting local business expansion and marketing Miami as an opportunity for growth to recruit new business to our community.
§ Staff continues to review and respond to business attraction prospects that are generated through the Beacon Council, Enterprise Florida and other private sector partners. Staff is currently working on several retail and office prospects who are looking to locate in Miami Beach.
4. Business Assistance, Data Resources, and Market Research
Objective: Redefine department performance measurements, update economic data, and provide concierge services to business.
Quarterly highlights and activities include the following:
Business Tax Receipt and Certificate of Use Update
§ On July 31, 2018, the City Manager issued a memo to Department Directors related to customer complaints regarding the complexity of the City’s Business Tax Receipt (BTR) process and the impact it’s had on businesses. In order to provide customers with clear steps, expectations and a thorough explanation of their requirements for operating with the city, the point of application is being bifurcated. By separating the review of the BTR, which will be reviewed by the Finance staff in the Customer Service Center, and Certificate of Use (CU), to be reviewed by the Planning Department; businesses can navigate the process with greater ease.
Through community outreach and coordination with the Communications Department, applicants will be provided with clear direction and information on how to first obtain a CU (not a BTR) prior to applying for a BTR. Upon the issuance of a CU, the customer must register their business by obtaining a BTR. A BTR for a commercial establishment cannot be obtained until a CU is issued. Customers will pay for and supply all necessary documents to obtain a BTR through the Customer Service Department; where it can be issued promptly. Staff is finalizing the bifurcation process and creating the ability to apply online for both the CU and BTR, minimizing customers having to physically navigate between two departments.
The administration brought to the Planning Board the code revision necessary to bifurcate the Certificate of Use from the Business Tax Receipt at its November 19 meeting. The Board passed the item with recommendations that will need to be incorporated into the code revisions prior to presenting to City Commission for first reading.
At the February 12, 2020 Commission meeting, ordinance revisions reestablishing the Certificate of Use (CU) in the city’s land use code, passed first reading. Upon approval at second reading, staff will begin an educational outreach campaign to inform new applicants of the new bifurcated process.
Business Start-Up Guide: The guide is intended to help new and expanding businesses to get up and running. The guide will include structuring your business, selecting a location, determine zoning, licensing and site permitting, registering your business with taxing authorities, and business partner organization resources. Staff plans to distribute the guide once the revised CU ordinance is approved.
Customer Service Center Enhancements
§ In order to address concerns by business who have expressed difficulty in determining their ability to do business in the city, staff has sought the procurement of a permitting and licensing online wizard. This software will serve as a web tool for stakeholders to utilize, incorporating land use regulations and city code.
Economic Update
§ Updating economic data with city consultant. Next step is to post data and information on website by summer 2020 and create an annual economic update by spring 2020.
§ Miami Beach by the Numbers:
o Population: 92,136
o Median Income: $53,754
o Median Age: 42.6
o Local Jobs: 65,629
o Resident Workers: 58,300
§ The unemployment rate is 2.6 percent through the fourth quarter of 2019 was 0.4 percentage points lower than the previous year’s level and 1.1 percentage points lower than the national average, 0.9 lower than the State of Florida and 0.7 lower than Miami-Dade County.
§ The Miami Beach office market has approximately 3.8 million square feet (SF) of space. The office vacancy rate is 7.6 percent compared to 9.1 percent from the previous year. The vacancy rate for Miami-Dade County is 12.4 percent . Rent per SF is $43.61 and sales per SF is $360.
§ The Miami Beach retail market has approximately 7.2 million SF of space, representing 2.8 percent of retail space in Miami-Dade County. The retail market vacancy rate was 7.7 percent during the first quarter of 2020, compared to 9.1 percent a year earlier. Vacancy rates can fluctuate, and 7.4 percent is still a healthy rate and recent vacancies are expected to be absorbed in the near future. Rent is $83.56 per SF and sale per SF is $803. The Miami Beach vacancy rate was 3.5 percentage points higher than the Miami-Dade vacancy rate during the period. Miami Beach continues to see a lot of new retail and restaurant concepts announcing and opening including Showfields, Mila, Pink Taco, Bonefly, Yoyoso, Intimo, Ole Ole Steakhouse, Gelato Company, Gitano, Mama Joon, Great, Harold's Shrimp and Chicken, Eggstaurant, Sewell Fish N' Oyster and Zeke’s Roadhouse to name a few in the community.
§ The Miami Beach industrial market has approximately 84,500 SF of space. The industrial vacancy rate is 5.7% percent compared to 9 percent for the Miami-Dade County. Rent per SF is $34.77.
§ The Miami Beach multi-family rental market has 16,334 units with 734 under construction. The vacancy rate of 4.9 percent through the fourth quarter of 2019, which was 0.6 percentage points below the fourth quarter of 2018 level (4.3 percent). The Miami Dade vacancy rate is 6.2 percent. Market rents average $1,454 citywide, $1,603 in South Beach, $1,146 in Mid-Beach and $1,181 in North Beach. Average sales price per unit is $200,000.
§ Tourism and Hospitality: According to the Greater Miami Beach Convention and Visitors Bureau, Miami Beach recorded an average occupancy rate of 76.7 percent through December 2019. This rate was 1.2 percent higher than the prior year’s occupancy rate of 75.8 percent. The room rate for Miami Beach was $268.36 per night, a -0.4 percent decrease from the previous year or $269.48. The average occupancy rate in Miami-Dade County was 75.9 percent, and the average daily room rate of $196.52. Miami Beach has 179 hotel properties with 19,766 rooms and Miami-Dade has 458 hotel properties and 57,974 rooms.
The Grand Hyatt was selected as the flag for the new 800-room Miami Beach Conventions Center Hotel. The Ritz-Carlton, South Beach re-opened its doors following a $90 million, multi-year renovation that touched all elements of the property. The 376 guestrooms and suites reflect Cristian Rubio's vision, which is the result of his extensive research into Miami and the many facets of the city that make it so special. The ballroom spans over 10,000-square-feet and is supplemented by 11 separate meeting and event spaces. In October 2019, the city commission voted to unanimously approved an ordinance to allow hotel development on Lincoln Road from Pennsylvania to Lennox Avenue with a 500-room cap and must include a cultural component. There are two proposed hotels in the works, one above the Sterling Building at 927 Lincoln Road on the north side and Lincoln Center at 630 Lincoln Road on the south side.
§ Miami Beach Resort Tax Collections: Resort tax collections for FY 2019 was $88,576,819 compared to $86,543,514 for 2018 or a 2.3 percent increase from FY 2018.