In response to the COVID-19 pandemic and the imposition of a midnight curfew by Miami-Dade County, on January 13, 2021, the City Commission approved a Resolution approving the pro-ration of supplemental BTR fees related to BTR categories involving the sale and service of alcoholic beverages after midnight. Resolution No. 2021-31559 is attached as Exhibit “A” hereto.
Businesses that had already paid their BTR fees were to be given a refund and once the County’s midnight curfew was lifted, businesses would have to activate that portion of their BTR; at a pro-rated rate through the end of the fiscal year.
The County’s midnight curfew expired on Monday, April 12, 2021. In addition, on May 12th the City Commission voted to restrict alcohol sales to 2 am in the Art Deco Cultural District as part of a 7 month pilot program and approved the addition of a voter referendum item to the November ballot that would make this temporary restriction permanent. As a result, the Administration recommends not charging the remaining pro-ration of BTR fees to allow businesses to serve alcohol from midnight to 5 am for the rest of FY 2021.
Given that more than half of the fiscal year has already taken place and that businesses were unable to sell or serve alcoholic beverages after midnight due to the County’s curfew for several months of FY 2020, and the administrative challenges involved, the Administration also recommends not charging the remaining pro-ration of BTR fees to allow businesses to serve alcohol from midnight to 2 am for the rest of FY 2021.
The fiscal impact of this proposed action is estimated at approximately $250,000. During the first quarter projections, the Administration assumed this loss of revenue based on the original resolution due to the uncertainty of timing of the lifting of the mandatory midnight curfew. As a result, the potential fiscal impact has already been mitigated due to the CARES Act reimbursement through Miami-Dade County of $41.1 million, to date.