Item Coversheet

Resolutions - C7  AF




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:March  27, 2023
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING, PURSUANT TO CHAPTER 170, FLORIDA STATUTES, AND SUBJECT TO THE APPROVAL OF A MAJORITY OF THE AFFECTED PROPERTY OWNERS, A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AS "THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT," FOR A TERM OF TEN (10) YEARS, TO STABILIZE AND IMPROVE THAT CERTAIN AREA OF THE CITY OF MIAMI BEACH HEREIN REFERRED TO AS THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT, WHICH DISTRICT IS GENERALLY BOUNDED ON THE WEST BY ALTON ROAD, ON THE EAST BY INDIAN CREEK CANAL, AND CONSISTS OF PROPERTIES ABUTTING WEST 41ST STREET/ARTHUR GODFREY ROAD, THROUGH PROMOTION, MANAGEMENT, MARKETING, AND OTHER SIMILAR SERVICES (THE "SERVICES"); PROVIDING FOR THE LEVY AND COLLECTION OF SPECIAL ASSESSMENTS, IN THE AMOUNT OF $195,246 IN THE FIRST YEAR, WHICH SHALL INCREASE BY FIVE (5%) PERCENT EVERY TWO (2) YEARS; INDICATING THE LOCATION, NATURE, AND ESTIMATED COST OF THE SERVICES, WHOSE COSTS ARE TO BE DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING THE LANDS UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION, IN ACCORDANCE WITH SECTION 170.05, FLORIDA STATUTES; AUTHORIZING THE CITY ADMINISTRATION TO CAUSE TO BE MADE A PRELIMINARY ASSESSMENT ROLL, IN ACCORDANCE WITH SECTION 170.02, FLORIDA STATUTES; AND UPON COMPLETION OF SUCH PRELIMINARY ASSESSMENT ROLL, PROVIDING THAT SUCH ASSESSMENT ROLL SHALL BE ON FILE WITH THE CITY CLERK'S OFFICE AND OPEN TO THE INSPECTION OF THE PUBLIC.

RECOMMENDATION

Adopt the Resolution which is sponsored by Vice Mayor Steven Meiner.

BACKGROUND/HISTORY

Miami Beach’s Middle Beach neighborhood is accessed via 41st Street, a major east-west thoroughfare and commercial corridor. The 41st Street corridor is largely flanked by low-scale, commercial properties featuring street level retail. The corridor also features nearby schools, and houses of worship. The business environment is primarily characterized by medical and professional services offices, restaurants, and other retail uses.

 

Chapter 170, Florida Statutes, authorizes any municipality, subject to the approval of a majority of the affected property owners, to levy and collect special assessments against property benefitted for the purpose of stabilizing and improving retail business districts, wholesale business districts, or nationally recognized historic districts, or any combination of such districts, through promotion, management, marketing, and other similar services.

 

On February 25, 2021, as reported in Letter to Commission (LTC) 125-2021, the Mayor’s 41st Street Blue Ribbon Committee passed a motion requesting the City conduct an educational and informational public webinar to inform the 41st Street community about the benefits of creating a special assessment district. On March 23, 2021, the City Administration in collaboration with the Office of the City Attorney conducted the town hall webinar. In addition to online notice, an invitation letter was mailed to businesses on 41st Street with a business tax receipt (BTR) and all owners of commercial property on 41st Street, with informal notice also emailed to Mid-Beach neighborhood associations.    

 

A group of 41st Street commercial property owners of commercial real estate abutting 41ST Street (the “Steering Committee”), in an area generally bounded by the Indian Creek Canal on the east and Alton Road on the west, has requested that the City of Miami Beach establish a business improvement district (BID) under Chapter 170, Florida Statutes, to enhance and improve the 41st Street business corridor. If the City Commission and the property owners approve the creation of the district, as detailed below, the Steering Committee will incorporate an entity to be known as the 41st Street Business Improvement District (hereinafter the “BID”), which would administer the special assessment district.

 

On October 26, 2022, the Mayor and City Commission adopted Resolution No. 2022-32348 which authorized the Offices of the City Manager and City Attorney to work with the Steering Committee, for the purpose of establishing a special assessment district, pursuant to Chapter 170, Florida Statutes, to stabilize and improve the 41st Street retail business district, through promotion, management, marketing, and other similar services. Staff has met and corresponded with the Steering Committee on numerous occasions for this purpose.

ANALYSIS

The attached Resolution is the first step under Chapter 170, Florida Statutes, to create the proposed special assessment district and is hereby submitted for consideration by the Mayor and City Commission.

 

A.   The Proposed “41st Street Business Improvement District”

 

The attached Resolution creates, subject to the approval of a majority of the affected property owners, a special assessment district, to be known as the “41st Street Business Improvement District” (the “District”), for a term of ten (10) years, to stabilize and improve the 41st Street business district, which consists of properties abutting 41st Street and generally bounded by the Indian Creek Canal on the east and Alton Road on the west, through promotion, management, marketing, and other similar services.

 

The Resolution provides for the creation of a preliminary assessment roll; provides for the annual levy and collection of special assessments, in the amount of $195,246; indicates the location, nature, and estimated cost of those services which costs are to be defrayed by the special assessments; provides the manner in which such special assessments shall be made; provides when such special assessments shall be made; designates the lands upon which the special assessments shall be levied; provides for publication of this Resolution; and authorizes other related actions.

 

The material terms for the proposed District are as follows:

 

1.    District Boundaries

 

The District shall consist of those commercial properties abutting 41st which are generally bounded by the Indian Creek Canal on the east and Alton Road on the west; provided, however, that the following properties shall be excluded and exempted from the District: (1) residential properties; (2) any property owned by a City, County, State, or Federal governmental entity or school district; and (3) any property owned or occupied by a religious institution and used as a place of worship or education (as defined in Section 170.201(2), Florida Statutes).

 

Pursuant to Section 170.04, Florida Statutes, at the time of the adoption of the attached Resolution, there shall be on file with the City Clerk an assessment plat showing the area to be assessed, which assessment plat shall be open to the inspection of the public. A proposed assessment plat is attached as Exhibit “D” to the Resolution.

 

2.    Term/Duration of the District

 

The term/duration of the proposed District is ten (10) years.

 

3.    Total Annual Amount of Special Assessments to be Levied and Collected

 

The initial total amount of special assessments to be levied and collected annually shall be approximately $195,246.

 

Every two (2) years, the assessment rate for each property shall increase by five (5%) percent. Each year, prior to preparing an annual Budget and prior to the City levying any assessments, the BID shall be responsible for reviewing the assessment roll to verify the actual use of each assessed property. If the BID determines that an amendment to the assessment roll is necessary, consistent with the District’s assessment methodology, the BID shall submit a written request to the City. Any change to the assessment roll would require the City’s prior written approval.

 

4.    Assessment Methodologies

 

To ensure a fair and equitable assessment consistent with Florida law, each property’s assessment must be proportionate to the special benefit derived therefrom. To that end, the assessment methodology is based on the predominant use on the ground floor, specifically, whether the ground floor contains retail or commercial use. Given that the District primarily serves as a retail business improvement district, the assessment rate is higher for properties with ground floor retail or commercial use:

 

a.    Properties with a ground floor retail commercial use of fifty percent (50%) or greater will be assessed at the rate of fifty cents ($0.50) per square foot of lot size.

 

b.    All other non-exempt properties will be assessed at a rate of twenty-five cents ($0.25) per square foot of lot size.

 

5.    Services to be Provided

 

The special assessments shall be used to fund those Services described in Exhibits “B” and “C” to the Resolution. Per the District’s budget and workplan strategy described in Exhibit B, in addition to general and administrative costs, the first year budget projection “prioritizes the development of a strong foundation for the future of the district. This includes the creation of a website and marketing plan to promote and enhance economic vitality in the area. Additionally, the BID is committed to advocating for the interests of businesses and property owners within the district by working in a unified voice to establish positive and productive relationships with the City of Miami Beach.”

 

The District will fund consulting, advocacy, and marketing services related to issues germane to the District. Further, as noted in the scope of services narrative, “[a]s the district evolves and changes over the 10-year lifespan of the BID, services will adapt to meet the evolving needs of the district. This may include expanding marketing efforts to attract new businesses, implementing new programs to improve the district's, safety, walkability and accessibility, and advocating for new policies that benefit the district.”

 

Should the BID expend funds on programming, events and activations on 41st Street, any ny activities on public property within the District are subject to City approval. The BID may conduct programming on City property by either (i) obtaining a special event permit, or (ii) partnering with the City or a City permittee.

 

B.   Procedure for Creating the District, Following the Adoption of the Attached Resolution

 

1.    Notice Requirement

 

Upon adoption of the attached Resolution, and pursuant to Section 170.05, Florida Statutes, the City shall cause the Resolution to be published one time in a newspaper of general circulation published in the City.

 

2.    Preliminary Assessment Roll

 

Additionally, upon adoption of the attached Resolution, and pursuant to Section 170.02, Florida Statutes, the Administration shall cause to be made a preliminary assessment roll, in accordance with the method of assessment provided for in the Resolution, which assessment roll shall show the lots and lands assessed, the amount of benefit to and the assessment against each lot or parcel of land, and the number of annual installments in which the assessment is divided. Upon completion of the preliminary assessment roll, it shall be made available for public inspection in the City Clerk’s office. (A draft of the preliminary assessment roll is attached hereto as Exhibit “E”).

 

3.    Special Mail Ballot Election

 

Following adoption of the attached Resolution by the Mayor and City Commission, and completion of the preliminary assessment roll, the City Clerk, in consultation with the City Attorney’s Office, shall conduct a special mail ballot election for the majority (50% plus one) of the affected property owners to approve the proposed special assessment.

 

4.    Final Hearing for the Mayor and City Commission to Hear Testimony, Decide Whether to Levy Special Assessments, and Meet as an Equalizing Board to Adjust and Equalize the Assessments on a Basis of Justice and Right

 

Upon completion of the preliminary assessment roll, and upon the approval of the District by a majority of the affected property owners, the Mayor and City Commission must adopt a subsequent Resolution to schedule a public hearing at which the owners of the properties to be assessed or any other persons interested therein may appear before the Mayor and City Commission and be heard as to the propriety and advisability of the assessments proposed to be levied, or the provision of the Services, the costs thereof, the manner of payment therefor, or the amount thereof to be assessed against each lot so serviced.

 

Following the public hearing, the Mayor and City Commission shall make a final decision on whether to levy the special assessments. At that time, the Mayor and City Commission shall also serve as an “equalizing board” to hear and consider any and all complaints as to the special assessments, and shall adjust and equalize the assessments on a basis of justice and right.  When so equalized, and approved by Resolution of the Mayor and City Commission, a final assessment roll shall be filed with the City Clerk, and the special assessments (as set forth in the final roll) shall stand confirmed and remain legal, valid, and binding liens upon the property against which such assessments are made, until paid.

SUPPORTING SURVEY DATA

As currently proposed in its Year 1 Budget, the majority of the District’s services focus on branding and marketing. According to the 2022 City of Miami Beach Community Survey, when asked what type of support would help advance their business, the highest number of responses—reflecting some 27.5% of businesses participating in the survey—selected ‘support with business marketing, branding, and social media’.

FINANCIAL INFORMATION

There is no direct fiscal impact to the City through adoption of the Resolution. If the City Commission subsequently approves, by Resolution, a special mail ballot election, the related costs will be subsidized entirely by the Steering Committee and the Office of the City Clerk will administer the election. If the creation of the District is ultimately approved, a memorandum of understanding will be negotiated and executed outlining the role of the City and the BID including that personnel from the City Administration will be responsible for administrative processing of annual assessments with costs incurred in connection with the mailing of the annual assessments levied upon BID properties.

CONCLUSION

The attached Resolution shall become effective upon the date of adoption; provided, however, that if the proposed special assessment does not subsequently receive the approval of a majority (50% plus one) of the affected property owners, the Resolution shall be null and void.

The Administration recommends that the City Commission proceed to initiate creation of the proposed District by adoption of the Resolution as set forth above. The next step in the process is for the City Commission to adopt a Resolution calling for a special mail ballot election of the affected property owners, which election will be administered by the Office of the City Clerk.

The owners of property proposed to be assessed will vote on whether to assess themselves, and if a majority of the owners vote to approve the assessments, any concerned property owner will, subsequently, have an opportunity to address the City Commission (serving as the Equalizing Board) at a duly noticed public hearing. With commercial property owners voting to assess themselves and invest collectively in services that benefit the district, the BID could serve as an economic funding tool and forge a unified voice among 41st Street stakeholders in their relationship with the City.

Applicable Area

Middle Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Prosperity - Revitalize targeted areas and increase investment.
Legislative Tracking
Economic Development
Sponsor
Sponsored by Vice-Mayor Steven Meiner

ATTACHMENTS:
Description
Exhibit A - Resolution 2022-32348
Exhibit B - Budget & Methodology Narrative
Exhibit C - Year One Budget
Exhibit D - Assessment Plat
Exhibit E - Assessment Roll
Resolution