1. Revitalize Targeted Areas and Increase Investment
a. North Beach Community Redevelopment Agency
Following Miami-Dade County’s delegation of powers to the City in July 2020, the Administration and the City’s consultant team led a robust public engagement process in preparation of the North Beach Community Redevelopment Agency (“North Beach CRA”) Redevelopment Plan. Since March 2021, the Department has served as City liaison for the new Ad Hoc North Beach CRA Advisory Committee, including preparing multiple presentations regarding the Redevelopment Plan. Simultaneous with preparation of the Redevelopment Plan and conducting regular meetings of the North Beach CRA Advisory Committee, the Department participated in negotiations and meetings with the Miami-Dade County Administration and elected officials concerning the Interlocal Agreement between the City of Miami Beach, the North Beach CRA, and Miami-Dade County.
On May 12, 2021, following the unanimous, favorable recommendations by both the Planning Board and North Beach CRA Advisory Committee, the City Commission and North Beach CRA Board formally approved the Redevelopment Plan and Interlocal Agreement for transmittal to Miami-Dade County.
On July 20, 2021, the Miami-Dade County Board of County Commissioners approved Ordinance No. 21-70, establishing the North Beach CRA Trust Fund, and a resolution approving the Redevelopment Plan and the final, negotiated Interlocal Agreement, as amended. The Resolution was adopted with an amendment on the floor by Commissioner Higgins, requiring that, upon the combined annual contribution into the Trust Fund by the County and the City reaching or exceeding $1 million, ten percent (10%) of the TIF revenue generated in the redevelopment area be specifically designated for funding projects associated with affordable and workforce housing including construction, rehabilitation and preservation.
On July 28, 2021, a joint item was approved by resolution of the North Beach CRA Board and the City Commission to approve the Interlocal Agreement, as amended. Adoption of the Redevelopment Plan and Interlocal Agreement by the County and City represent the final step in the regulatory approval process to formally establish the North Beach CRA. The Administration joins the City Commission in acknowledging this major accomplishment, which will have a lasting impact on North Beach and the entire city. The Department continues to serve as liaison at monthly meetings of the North Beach CRA Advisory Committee, where the committee discusses important redevelopment matters affecting North Beach.
b. Vacant Storefront Cover Program
The Department relaunched the Vacant Storefront Cover Program (“Program”) earlier this year. The purpose of the Program is to improve the appearance of vacant street-level commercial buildings located throughout Miami Beach and to support the activation and 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 empty spaces.
The Program initially began using the current designs created by DASH students in 2019. Although funding for the Program was appropriated for all areas of the City, only property owners in South Beach participated in the Program. When the coronavirus (COVID-19) pandemic emerged, the Program was halted as the Department focused on other forms of business assistance including the Resource Center and small business grants. The Program is again active and a new application and program information packet was developed. This information has been shared with all of the business improvement districts, business associations and the Chamber of Commerce. The Department continues to reach out to commercial real estate brokers to market the program and conduct targeted outreach, which has yielded six (6) new participating properties since May 2021 and has made significant progress in North Beach covering over 2,000 square feet of vacant storefront windows at a major intersection.
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 under the direction of the Economic Development Department and the G.O. Bond Program office, 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, RFQ 2021-196-ND for Architectural and Engineering Design Services for the 41st Street Corridor Revitalization was prepared and advertised. On September 17, 2021, the Mayor and City Commission adopted a resolution authorizing the Administration to commence negotiations with the best qualified firm. In addition, the City released RFQ 2021-217-ND for a construction manager at risk for the project with recommendations to follow at a subsequent City Commission meeting. The project is being managed by the Capital Improvement Projects Department.
d. Art Deco Cultural District (ADCD)
The City Commission has directed the Administration to devote great consideration in developing a strategy for elevating the conditions of the Mixed-Use Entertainment (MXE) District, including examining issues with the current business climate and encouraging new investment. In September 2020, in furtherance of this objective, the City Commission authorized Zyscovich Architects to prepare a comprehensive land use, mobility and economic development planning strategy and vision concept through the G.O. Bond Program. To aid the process and offer insights to the City’s consultant, Mayor Gelber appointed seventeen (17) resident and community stakeholders in an advisory capacity onto the Mayor’s Art Deco Cultural District (ADCD) Panel. Since January 2021, the Panel has convened 16 times on a biweekly basis to discuss enhancement of the ADCD district, including four (4) workshop presentations by the multidisciplinary consultant team on the following subjects: Street Life and Programming; the Economic Potential of Retail, Tourism, and Entertainment; Urban Design, Open Space, Mobility, and Transit; and Zoning and Land Use. On June 23, 2021, Bernard Zyscovich presented a draft conceptual vision plan and progress report and received feedback from the City Commission.
The Administration meets with the consultant team on a weekly basis, and coordinates dialogue with other pertinent governmental and regulatory agencies, in ongoing efforts to formulate the City’s long term ADCD planning efforts. In addition to managing the consultant’s contract, the Department continues to serve as liaison for the ADCD Panel’s biweekly meetings, where the Panel provides guidance and recommendations to Zyscovich and the Administration.
2. Real Estate Assets and Joint Development (Public Private Partnerships - P3)
a. Collins Park Cultural Arts Facility
On January 27, 2021, the City Commission directed negotiations with an established nonprofit cultural arts partner, Miami New Drama, following receipt of an unsolicited proposal to activate the ground floor of the Collins Park Parking Garage. The City Commission directed the negotiation of a term sheet for development and activation of a new 16,000 square foot cultural arts space that will further distinguish Collins Park as the city’s cultural arts campus.
On April 30, 2021, after providing direction to the Administration at its meeting the previous month, the FERC recommended bringing the negotiated term sheet before the City Commission. On June 23, 2021, the City Commission adopted Resolution No. 2021-31749, accepting the FERC’s recommendation and authorizing negotiation of a draft lease agreement (“Lease”), subject to approval by a 4/7th vote of the Planning Board and a 6/7th vote of the City Commission, pursuant to Section 1.03(b)(4) of the City Charter. On July 27, 2021, the Planning Board reviewed the term sheet for the Lease and passed a motion to approve the proposed terms, as required by the City Charter.
In addition to incorporating into the Lease specific direction provided by the City Commission in Resolution No. 2021-31749, the Administration has further negotiated a community benefits package with Miami New Drama as stipulated by the term sheet. The negotiated Lease terms provide that the City will contribute up to $4.75 million for construction buildout of the facility and Miami New Drama will contribute $250,000 for the architectural design. The City has not yet identified a funding source nor made a budget appropriation for the project. However, the Lease incorporates an outside deadline of October 1, 2024 for the City to appropriate sufficient funds for the project, otherwise either party may terminate the Lease. It is anticipated that the City Commission will review the Lease on first reading within the next several weeks.
b. Collins Park Artist / Workforce Housing Project
On January 11, 2021, the City Commission approved a ground lease and development agreement with private developer Servitas to construct a brand-new facility on City-owned land that will 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 2,200 square feet ground floor space available to the City to further activate the cultural arts campus. The Department was actively involved in negotiating this public-private partnership, which requires little capital investment from the City but provides considerable community benefits over the lease term. The nonprofit project will be fully self-sustaining and surplus revenues will cover operating expenses, debt service, and a portion of revenues will inure back to the City (for use possibly, at the City Commission’s discretion, to activate the ground floor with cultural uses).
On June 15, 2021, the project’s design received unanimous approval of the Historic Preservation Board, allowing the developer to prepare plans and apply for a building permit. The developer has made an initial submission for a building permit with the intention of obtaining the permit before the year’s end. Along with closing on the bond financing for the project, issuance of a building permit will allow the parties to execute the long-term ground lease. The Collins Park Artist and Educator Workforce Housing Project is the first workforce housing project proposed for development within the city and ownership of the building will transfer to the City upon lease expiration.
c. Class A Office Space Request for Proposals (RFP)
On June 23, 2021, the City Commission authorized the Administration to issue RFP 2021-173-KB for development of mixed-use structures incorporating Class A office space on three City-owned parking lots (P25, P26, P27) and the 17th Street Parking Garage (G5). Proposals must incorporate Class A office space and provide for replacement of any existing public parking. Any long-term ground lease of the parcels would require referendum approval by the electorate. Following the City Commission’s authorization to issue, approximately 50,000 suppliers received notification of the RFP via Periscope S2G and the Administration sent the RFP by email to 185 vendors. As of September 10, 2021, 158 suppliers have viewed the document on Periscope S2G.
On July 14, 2021, the Administration conducted a public pre-submittal informational meeting that was attended by 34 external parties. By the August 24, 2021 deadline for receipt of proposer questions, the Procurement Department had received 39 questions from parties interested in the RFP. The Administration is preparing an RFP addendum with responses to questions received. The current deadline for parties to submit proposals to the City in response to the RFP is November 15, 2021.
Together with the Lincoln Road Business Improvement District (BID) and Colliers, consultant on the RFP, the Administration has successfully secured press opportunities and features about the RFP in various media publications. In addition, given the success of marketing efforts for the earlier related RFLI, the City also partnered with the Lincoln Road BID to administer a digital media campaign to expand the reach of the RFP. The Marketing and Communications Department worked with the Department to develop and launch the 10-week campaign on August 6, 2021. Specifically, digital ad buys employ a targeted two-tiered strategy of driving traffic to a unique RFP website: https://lincolnrd.com/office/. Programmatic display ads appear for users matching certain behavioral and content filters (e.g., real estate industry, property development and management, etc.) and who are browsing publisher sites/applications within a specified geo-targeted area. Also, Private MarketPlace (PMP) advertisement allows the Department to target strategic digital publications such as The Wall Street Journal, New York Times, Bloomberg, South Florida Business Journal, Miami Herald, Florida Trend, and others.
The media campaign has garnered the following engagement through August 29, 2021:
- 404,037 total impressions
- 426 click throughs with a 0.10% click through rate (whereas industry average for display banners is 0.05%)
- Digital marketing ads are sending 92.75% of traffic to the Lincoln Road BID page
- The Private Marketplace (PMP) campaign, reaching targeted media publications, has click through rate of 0.12%
- Leading five geographical areas with the top impression delivery and clicks are as follows:
3. Business Assistance, Business Attraction, and Market Research
a. Targeted Industries, Expedited Plan Review and Permitting Incentive Program, and Job Creation Incentive Program Recommendations
On March 17, 2021, the Mayor and City Commission adopted Resolution No. 2021-31619 and authorized the Administration to develop and implement an expedited plan review and permitting incentive for targeted industries (technology and financial services). The Department subsequently launched the Expedited Plan Review and Permitting Incentive Program and continues to market this no-cost incentive. The incentive is offered to eligible businesses to encourage targeted relocations or expansions and associated development. Developments or renovations supporting the targeted industries will be eligible for a 10-business day plan review and permitting process. The Administration is currently assisting three businesses through the expedited permit process with more companies preparing to go through the process in the coming months. The Department would like to acknowledge and thank the Building and Planning Departments for their support of the expedited plan review and permit approval process, allowing these businesses to relocate and expand in the city as quickly as possible.
The Mayor and City Commission also approved a Job Creation Incentive Program (JCIP) on March 17, 2021 via Resolution No. 2021-31620. The JCIP is a performance-based 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 within the City of Miami Beach while increasing the number of quality, high-wage jobs.
The JCIP participant 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. As outlined in the program guidelines, recommendations for award of this incentive must be reviewed by the FERC and approved by the City Commission.
Inaugural JCIP Award Recommendations
Currently, two qualified companies, GMF Capital and Melvin Capital, are being recommended for the JCIP, given that they each have met the program criteria at the time of application.
GMF Capital recently decided to relocate its headquarters to the City of Miami Beach. Founded by Gary M. Fegel and Jay Lobell in 2015, GMF Capital, an SEC-registered investment management firm based out of New York, will soon call Miami Beach home. GMF develops and executes operating businesses and investment strategies across diverse sectors including real estate and healthcare and has directed over $2 billion in equity investments. The firm holds over $10 billion in real estate and healthcare assets.
GMF is setting roots down in Miami Beach with a recently signed 5-year lease with renewal options for over 2,400 square feet at 1674 Meridian Avenue, a Class A office building near Lincoln Road represented by Integra and the Constellation Group. In line with the City Commission's efforts to diversify the economy and encourage workforce opportunities, GMF intends in short order to hire over a dozen employees to work out of its new Miami Beach office and create approximately twenty-five (25) jobs over a four-year period, with estimated wages averaging $100,000. As such, the Administration is recommending the company for the JCIP.
Melvin Capital is a New York-based SEC-registered investment advisory firm founded in 2014 by Gabe Plotkin, the firm’s Chief Investment Officer. As of June 2021, the firm was managing over $11 billion in assets.
Melvin Capital plans to be a long-term stakeholder in the city with a 10-year lease for 6,762 square feet (an entire floor) of Class A office space at 1674 Meridian Avenue, including an approximately $1.1 million capital investment. The firm intends to hire approximately twenty (20) new employees in high-wage jobs in the coming year, with an additional ten (10) new employees over four years. Wages are estimated to be $150,000 on average. As such, the Administration is recommending the company for the JCIP.
b. Communications and Cultivating Partnerships
The Department is actively working on collaborations and partnerships that would position the City as a greater participant in the technology and financial services ecosystem of Miami-Dade County. The Department is engaging with local organizations to further marketing, recruitment and retention efforts, including continued engagement with the Miami-Dade Beacon Council to support and leverage their efforts in this regard. The Department is also making an effort to actively engage in local technology conferences in 2022.
The Department has been working with the Marketing and Communications Department to engage a firm to assist with development of a comprehensive marketing and public relations campaign to amplify initial efforts to position the City of Miami Beach as a leading business destination. Recent press releases and media articles are attached as Exhibit A.
Additionally, the Department launched a monthly newsletter in June 2021, which continues to see excellent performance with an average 32.97% open rate (well above the 22% industry average) and an average 14.37% click through rate (nearly double the 7.5% industry average), with newsletter subscribership increasing by 22% since the first publication. Monthly Newsletter content is attached as Exhibit B.
The Department’s MBbiz.com website continues to be updated regularly to provide business assistance resources to the community, including current employment and labor data, statistics and market conditions powered by Local Intel.
c. 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 third-party 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. To date, twenty-seven (27) 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, in addition to other promotions, the agreement benefited both Miami Beach restaurants and residents. The partnership included a joint marketing campaign between Uber Eats and the City. The promotional period occurred from July 1, 2021 through August 14, 2021 at the request of the Administration to promote restaurants after the end of the high season.
The partnership was a resounding success with Uber Eats providing a $91,000 in kind contribution to cover waived delivery fees to customers and about $23,600 for waived pickup orders. The data for the promotional period reflected an 11.55% increase in trips (including deliveries via pedestrian, bicycle, scooter, and car) month over month from June to July versus a 6% increase in the City of Miami, which did not have a similar campaign implemented at the time. Miami Beach restaurant sales increased by 15.82% month over month from June to July versus an 8.31% increase in the City of Miami. As a result of the promotional efforts, Miami Beach restaurants overall experienced increased trip growth ranging anywhere from 2.01% up to 56.91%.
In addition, and in appreciation of those serving in the Surfside Champlain Towers search and rescue and recovery efforts, Uber Eats donated 120 meal vouchers to City staff and first responders. Uber Eats is interested in working with the City to launch additional, co-funded promotional opportunities in the future.
d. CDBG-CV-funded Business Assistance: Small Business Assistance Program, Emergency Small Business Reimbursement Grant Program and Business Assistance Technical Services
In June 2020, the City Commission allocated $200,000 in Community Development Block Grant Coronavirus (CDBG-CV) funds for small business assistance grants. The Administration developed an application and completed a virtual lottery process in an effort to assist small businesses with up to $10,000 for reimbursement of eligible business expenses. To date, $140,000 has been disbursed to fourteen (14) qualified businesses.
On October 28, 2020, the City Commission allocated an additional $600,000 of 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, with aims of assisting microenterprises or small businesses with up to $20,000 for reimbursement of eligible business expenses. To date, $360,000 has been disbursed to eighteen (18) qualified businesses. Applications continue to be received and reviewed on a rolling basis. Of these eighteen (18) businesses awarded the grant:
· 9 businesses are in Job Creation/Retention category;
· 9 businesses are in the Microenterprise category;
· 12 businesses are located in South Beach;
· 4 businesses are located in Mid- Beach; and
· 2 businesses are located in North Beach.
The Department 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 has prepared and plans to issue a Request for Letters of Interest to contract with a community partner to conduct monthly trainings and 1-on-1 business consulting on topics related to business finance, operations and management, and market growth, which may be accessed free of charge by eligible Miami Beach small businesses.