1. Revitalize Targeted Areas and Increase Investment
a. North Beach Community Redevelopment Agency
Following Miami-Dade County’s delegation of powers to the City last summer, preparation of the North Beach Community Redevelopment Agency (“North Beach CRA”) Redevelopment Plan was completed by the City and its consultant group. On March 8, 2021, the Administration hosted a virtual informational meeting and published the draft Redevelopment Plan online for public review and comments. The virtual event was attended by over 100 participants.
On March 17, 2021, the City Commission appointed seven (7) individuals to serve as members of the Ad Hoc North Beach CRA Advisory Committee and provide recommendations as to the Redevelopment Plan. The Advisory Committee convened five (5) times between March 31st and May 5th during publicly noticed virtual meetings.
During the meetings, City staff and consultants gave presentations regarding the elements of the Redevelopment Plan. Concurrent with preparation of the Redevelopment Plan, the Administration also engaged with the Miami-Dade County Administration to negotiate the Interlocal Agreement between the City of Miami Beach, the North Beach CRA and Miami-Dade County.
The Redevelopment Plan received a unanimous favorable recommendation from the Planning Board and Ad Hoc North Beach CRA Advisory Committee. The Committee also favorably recommended the Interlocal Agreement. On May 12, 2021, the City Commission and North Beach CRA Board formally approved the Redevelopment Plan and Interlocal Agreement and authorized transmittal to Miami-Dade County.
The next steps required for the full establishment of the North Beach CRA include approval of the Redevelopment Plan and Interlocal Agreement by the Miami-Dade County Board of County Commissioners. If approved, Miami-Dade County will also establish a Trust Fund via Ordinance to provide for the tax increment revenue needed to fund the North Beach CRA.
b. Vacant Storefront Cover Program Relaunch
The Economic Development Department has relaunched the Vacant Storefront Cover Program. The purpose of the Program is to improve the appearance of vacant street-level commercial buildings located throughout the City of Miami Beach and to support the development of retail uses within the City. This initiative allows property owners to cover their vacant storefronts with pre-approved artistic designs already permitted by the City. The Program works to beautify vacant storefront windows and doors to promote available or underutilized tenant spaces. Through this voluntary, no-cost Program subsidized by the City, pre-approved designs can be temporarily displayed in storefront windows to help revitalize and support the attraction of new tenants to the vacant spaces.
The Program began using the current designs created by Design and Architecture High School (DASH) students in 2019 prior to Super Bowl LIV. While funding for the Program was appropriated for all areas of the City and outreach occurred Citywide, only property owners in South Beach opted to participate in the initial launch of the Program. When the COVID-19 pandemic emerged, the Program was halted as the Department focused on other critical business assistance including the Resource Center and small business grants. The Program has been relaunched with a new PDF fillable application and program information packet as shown in Exhibit A. This information has been shared with all of the business improvement districts, business associations and the Chamber of Commerce. The Department is also reaching out to commercial real estate brokers to market the program.
c. 41st Street Corridor Streetscape Project
On January 13, 2021, the Miami Beach City Commission approved a conceptual streetscape design for a $15 million G.O. Bond project that will revitalize the 41st Street business corridor. The corridor runs from Alton Road to Pine Tree Drive over the Biscayne Waterway and through five major intersections. The conceptual design, produced by AECOM, is considered preliminary.
By adopting Resolution No. 2021-31551 on January 13, 2021, the Mayor and City Commission authorized the Administration to issue a Request for Qualifications (RFQ) for the selection of a firm for the design development construction documents, bid and award, and construction administration services for the project. Accordingly, as of May 2021, RFQ 2021-196-ND Architectural and Engineering Design Services for the 41st Street Corridor Revitalization has been prepared and the project will be managed by the Capital Improvement Projects Department.
d. Art Deco Cultural District (ADCD)
The Mayor and City Commission have directed the Administration to devote great consideration in developing a strategy for elevating the economic vitality of the Mixed-Use Entertainment (MXE) District, including examining issues with the current business climate and encouraging new investment. Last year, the City Commission authorized Zyscovich Architects to prepare a comprehensive multidisciplinary planning strategy through the G.O. Bond program. Seventeen (17) resident and community stakeholders were appointed to the Mayor’s Art Deco Cultural District (ADCD) Panel in an advisory capacity to provide insights to the City’s consultant. The Panel has continued to convene biweekly since January 8, 2020 and intends to provide recommendations for the City Commission’s consideration. On May 21, 2021, the Panel will review preliminary concept plans by Bernard Zyscovich exploring mobility, land use, activation, placemaking, landscaping and economic development opportunities in the MXE/ADCD.
2. Real Estate Assets and Joint Development (P3)
a. Collins Park Cultural Facility
On January 27, 2021, the City Commission directed opening negotiations with an existing nonprofit cultural arts partner, Miami New Drama, following an unsolicited proposal for development and activation of the ground floor of the Collins Park Parking Garage. Pursuant to direction that a negotiated term sheet be brought before the Finance and Economic Resiliency Committee (FERC) within 60 days, the Administration negotiated deal terms for development and activation of a brand new 16,000 square foot cultural arts space that will further distinguish Collins Park as the City’s preeminent cultural arts campus.
Economic Development presented an initial term sheet to the FERC on March 26, 2021 and discussed a few open items. The FERC directed the Administration to continue negotiations with Miami New Drama, therefore, the Administration presented an updated term sheet to the FERC on April 30, 2021. The updated term sheet received a favorable recommendation from the FERC with a referral back to the City Commission. The proposed deal terms provide that the City contribute up to $4.75 million for the build-out of the facility and also include a contribution of $250,000 from Miami New Drama for the architect. The City has not identified a funding source nor made a budget appropriation for the project at this time.
b. Collins Park Artist / Workforce Housing Project
On January 11, 2021, the City Commission approved the ground lease and development agreement for a private developer to construct a brand new facility to provide 80 workforce residences for artists, teachers, and other eligible workers employed in Miami Beach, campus dormitory housing for the Miami City Ballet, and an additional 5,300 square feet of ground floor space available to the City to further activate the cultural arts campus. Economic Development was actively involved in negotiating this public-private partnership, which requires little capital investment from the City.
The development agreement has been fully executed thereby enabling the developer to commence the permitting process. The 40-year lease, with two 20-year renewal options, will not be executed until after financing is in place and the project receives all permits and approvals for the commencement of construction. Currently, the project’s design is slated to go before the Historic Preservation Board in June 2021, after which the developer may apply for and receive a building permit. The developer anticipates breaking ground before the end of the year. The nonprofit project will be fully self-sustaining and surplus revenues will cover operating expenses, debt service, and a portion of which will inure back to the City. Upon lease expiration, the building will transfer back to the City. The Collins Park Artist and Educator Workforce Housing Project is the first workforce housing project proposed for development within the City.
c. Class A Office Space Request for Proposals (RFP)
On March 17, 2021, the City Commission authorized the Administration to prepare an RFP for redevelopment of three City-owned parking lots (P25, P26, P27) into mixed-use structures incorporating Class A office space and public parking facilities. In addition to the three surface lots, the Administration, at the direction of the City Commission, will also include a fourth City-owned parcel adjacent to Lincoln Road that is improved with a five-story parking structure – the 17th Street Garage (G5).
The RFP solicitation will aim to maximize use of underdeveloped City-owned assets and encourage private capital investment, offering developers a tremendous opportunity to access public land steps away from Lincoln Road. Proposals must incorporate Class A office space and provide for replacement of any existing public parking. Pursuant to the City’s Charter, any long-term ground lease of the parcels would require approval at referendum by a majority of the electorate. Firms invited to participate in the RFP would include but not be limited to respondents to the previous Request for Letters of Interest (RFLI) completed in February.
On April 8, 2021, the City conducted an industry webinar to promote the RFP and solicit input from interested parties. The webinar was attended by over eighty-five (85) non-City staff/consultant participants. The RFP is slated to come before the City Commission in June 2021 for consideration.
3. Business Assistance, Business Attraction, and Market Research
a. Targeted Industries and Cultivating Partnerships
On March 17, 2021, the Mayor and City Commission approved expedited plan review and permitting for targeted industries (tech and financial services). This no-cost incentive is offered to certain eligible businesses and developers to encourage targeted relocations or expansions and associated development. Developments or renovations supporting the targeted industries will be eligible for a 10-day plan review and permitting process. The Administration has begun marketing this service to relevant and interested parties including existing Miami Beach property owners.
The Mayor and City Commission also approved a Job Creation Incentive Program (JCIP) on March 17, 2021. The JCIP is a baseline financial incentive package that will ensure that the City has a greater competitive advantage and the ability to leverage existing incentives available from the State and County. The purpose of the JCIP is to strategically attract companies and expand existing businesses in the City of Miami Beach while increasing the number of quality, high-wage jobs in the community.
The applicant must create or relocate a minimum of ten (10) new, fulltime equivalent jobs with average annual wages meeting or exceeding 125% of the Miami-Dade County or State of Florida average wage, whichever is higher, at the time of the application. The maximum incentive for new-to-market companies is $60,000 per year for up to four (4) years. The maximum incentive for expanding companies is $60,000 per year for up to three (3) years. The Administration has received multiple inquiries about the JCIP and is following up on leads.
As outlined in the Program, recommendations for award of this incentive will be brought forward to the FERC. After issuance of a press release about the incentives, the Economic Development Department received many inquiries and had several meetings with out-of-state businesses to discuss the incentives. The Administration is focused on recommending award of the incentives to the FERC for a company that would bring a substantial amount of high-wage jobs to the City.
The Economic Development Department is actively developing partnerships that would position the City as a greater participant in the technology and financial services ecosystem of Miami-Dade County. The Department is making an effort to actively engage in Miami Tech Week and the eMerge Americas conference in 2022.
The Department continues to engage with the Miami-Dade Beacon Council. In response to Miami-Dade County Resolution No. R-57-21, sponsored by Commissioner Cohen Higgins and adopted by the Board of County Commissioners on January 21, 2021, the County Mayor designated the Beacon Council to develop a report (Exhibit B) on recommendations for economic development measures on both the local and state levels to attract technology companies, entrepreneurs, and investors to relocate their headquarters to Miami Dade County, and to encourage and foster technology start-ups to launch locally and for established technology companies currently existing to remain in the County. The Economic Development Department will continue to work with the Beacon Council to support and leverage their efforts in this regard.
b. Restaurant Industry Relief: Reimbursement Grant Program, Recovery Outdoor Seating Program, and Uber Eats Partnership
On September 29, 2020, as part of the FY 2021 General Fund Budget, the City Commission allocated $60,000 for a delivery service reimbursement program benefiting Miami Beach restaurants.
Aimed to provide relief to restaurants facing hardships due to the pandemic and associated emergency orders, the City Commission accepted the Neighborhood and Quality of Life Committee’s (NQLC) recommendation and created the Miami Beach Restaurant Reimbursement Grant Program on October 28, 2020. To date, seventeen (17) grants have been awarded. Interested businesses may access the online application at miamibeachfl.gosmart.org.
On February 10, 2021, the City Commission accepted the recommendation of the NQLC and authorized the City Manager to negotiate an agreement with Uber Eats to provide economic relief and support to Miami Beach restaurants and residents. By waiving certain consumer delivery fees, the agreement will benefit both Miami Beach restaurants and residents and will include a joint marketing campaign between Uber Eats and the City. At the request of the Administration, the promotional period will commence on July 1, 2021 to promote restaurants after the high season has ended and to market the partnership to residents in the July 2021 issue of MB Magazine.
c. CDBG-CV-funded Business Assistance: Emergency Small Business Reimbursement Grant Program (Round 2) and Business Assistance Technical Services
On October 28, 2020, the City Commission allocated an additional $600,000 of Community Development Block Grant Coronavirus (CDBG-CV) funds for small business assistance grants. On January 6, 2021, the Administration began receiving applications for the Emergency Small Business Reimbursement Grant Program, aimed at assisting at least thirty (30) microenterprises or small businesses with up to $20,000 for reimbursement of eligible business expenses. To date, $284,000 has been disbursed to fifteen (15) qualified businesses. Applications continue to be received and reviewed on a rolling basis. Of the fifteen (15) businesses awarded:
· 10 businesses are in the Job Creation/Retention category;
· 5 businesses are in the Microenterprise category;
· 10 businesses are located in South Beach;
· 2 businesses are located in North Beach; and
· 3 businesses are located in Mid-Beach.
Economic Development will use additional CDBG-CV funding to provide technical assistance, including the recent creation of a City employee position dedicated to providing small business concierge support services, grant administration and technical assistance coordination. In addition to in-house technical assistance services, the City is in talks with the Florida Small Business Development Center (SBDC) at FIU to conduct monthly trainings and 1-on-1 business consulting on topics related to business finance, operations and management, and market growth—free of charge to Miami Beach small businesses.
Since last summer, the Department continues to issue its weekly e-Newsletter Updates & Resources for Businesses Impacted by COVID-19, which reaches 3,090 subscribers. The website MBbiz.com is updated regularly to provide business assistance resources to the community, including current labor and business data powered by Local Intel.