According to the 2019 Customer Satisfaction Survey, the majority of Miami Beach businesses, approximately 70%, have a positive overall image of the city. However, in terms of parking and transit, there are opportunities for improvement. When businesses were asked how it would rate the effectiveness of public transit for employee commuting, 52% of respondents indicated fair or poor. Only 28% of businesses reported providing free or subsidized parking for employees. When asked about the availability of public and private parking for customers, 57% of businesses replied that there were seldom or almost never any parking spaces nearby.

With respect to the Groot request, the Administration is sensitive to Groot’s contribution as an employer and purveyor of various first-rate dining, hospitality, and entertainment offerings in the City. Though Groot has not formally requested monthly parking permits or joined the waiting list through the Parking Department, the Administration acknowledges Groot’s unique position as a local mainstay in the hospitality industry and investor in the Miami Beach community.

After months of discussion by the FERC on diversifying the city’s economic base, on March 17, 2021, the Mayor and City Commission adopted resolutions identifying technology and financial services as targeted industries for business attraction, retention and expansion efforts. Identified methods included inducements and incentives for locating or expanding local headquarters or regional offices for other industries, a category which may include Groot. The Mayor and City Commission authorized baseline criteria and performance standards for the Economic Development Department to market and offer services and multi-year financial incentives, such as the Job Creation Incentive Program for the targeted industries. It is important to note that companies in the established targeted industries are not currently offered a parking incentive, however, these businesses often seek parking accommodations when considering relocation to or expansion in Miami Beach.

Although the City Commission directed the Administration to prioritize the recruitment and retention of technology and financial services, there is a desire to elevate and firmly support the hospitality industry, the backbone of the City’s economy. Based on the discussions during the September 24, 2021 and October 22, 2021 FERC meetings, the Parking Department has evaluated parking demand and access at area parking facilities and has separated twenty (20) parking access cards for potential use by Groot.

Funding for this type of incentive is not currently identified or appropriated. If this financial incentive is to be offered during the current fiscal year, a budget appropriation would be required. The fiscal impact, at the current rate for parking access cards, is $108 plus tax per space per month. If the City incentivizes parking access cards for Groot, the cost for twenty (20) parking access cards for twelve months would be $25,920 (with no tax applied). For two (2) years, the cost would be approximately $51,840, and for three (3) years, the incentive would cost $77,760 based on current parking rates.

While services and financial incentives are an important component of the city’s targeted industry attraction and retention strategy, non-targeted industry retention is an important policy decision as existing businesses are valuable assets to our economy.