| | | | | | | |  | Resolutions - R7 E
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | July 26, 2023 | | | | 5:03 p.m. Public Hearing
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING A DULY NOTICED PUBLIC HEARING PURSUANT TO SECTIONS 170.07 AND 170.08, FLORIDA STATUTES, THE FINAL ASSESSMENT ROLL FOR THE SPECIAL ASSESSMENT DISTRICT KNOWN AS THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT, AND CONFIRMING SUCH ASSESSMENTS AS LEGAL, VALID, AND BINDING FIRST LIENS UPON THE PROPERTY AGAINST WHICH SUCH ASSESSMENTS ARE MADE UNTIL PAID. |
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| | | | | | | | RECOMMENDATION
| | Adopt the Resolution which is sponsored by Commissioner Steven Meiner. |
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| | | | | | | | BACKGROUND/HISTORY
| 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, the Mayor’s 41st Street Blue Ribbon Committee passed a motion requesting the City to conduct an educational and informational public webinar to inform the 41st Street community about the benefits of creating a business improvement district (BID). On March 23, 2021, the City Administration in collaboration with the Office of the City Attorney conducted the town hall webinar.
On October 26, 2022, the Mayor and City Commission adopted Resolution No. 2022-32348 which, in pertinent part, authorized the Offices of the City Manager and City Attorney to work with the Steering Committee of 41st Street commercial property owners, 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.
On March 27, 2023, the Mayor and City Commission adopted Resolution No. 2023-32544, which created, 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 (the “District”), for a term of ten (10) years, to stabilize and improve the 41st street retail business district through promotion, management, marketing, and other similar services.
On April 28, 2023, the Mayor and City Commission adopted Resolution No. 2023-32566, which called for a special mail ballot election (the "Election"), to be held from June 5, 2023 to June 27, 2023, to determine whether a majority (50% plus one) of the affected property owners approve the creation of the District. Pursuant to Resolution No. 2023-32566, the Mayor and City Commission designated Rafael E. Granado, City Clerk; Faroat Andasheva, Senior Assistant City Attorney; and Rogelio A. Madan, Development & Resiliency Officer, Planning Department, to serve as the members of the Canvassing Board for the Election.
On May 17, 2023, the Mayor and City Commission adopted Resolution No. 2023-32601, setting, subject to the approval of a majority of the affected property owners in the Election, and pursuant to Chapter 170, Florida Statutes, a public hearing on July 26, 2023, at 5:03 p.m., for the owners of the affected property to be assessed, or any other interested persons, to be heard by the City Commission as to the propriety and advisability of making the proposed improvements and providing the services (and funding the aforementioned with special assessments on property), as to the cost thereof, as to the manner of payment therefor, and as to the amount to be assessed against each affected property.
The affected property owners approved the creation of the District, as follows: thirty-four (34) ballots were cast in favor of the creation of the District, nine (9) ballots were cast in opposition to the creation of the District, one (1) ballot was rejected as improperly cast, and eighteen (18) ballots were not returned. Following the Election, on June 28, 2023, the Mayor and City Commission adopted Resolution No. 2023-32630 adopting the Official Election Certificate of the Canvassing Board.
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| | | | | | | | ANALYSIS
| A. Requirement of a public hearing, pursuant to Chapter 170, Florida Statutes, to levy the special assessments and approve the final assessment roll
Pursuant to Sections 170. 07 and 170.08, Florida Statues, a public hearing is scheduled to be held on July 26, 2023, at 5:03 p.m., for the owners of the property to be assessed or any other interested persons to appear before the Mayor and City Commission and be heard as to the propriety and advisability of making such improvements and providing such services (and funding them with special assessments on property), as to the cost thereof, as to the manner of payment therefor, and as to the amount thereof to be assessed against each property.
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. The preliminary assessment roll is attached to the proposed Resolution as Exhibit "A".
B. Creation of BID Entity and Memorandum of Understanding
After the Mayor and City Commission adopted Resolution No. 2022-32348, authorizing the City Manager and City Attorney to work with the Steering Committee, the City assisted the Steering Committee to prepare documents necessary for BID creation. As authorized by City Commission Resolution No. 2023-32566, the City entered into a memorandum of understanding (MOU) relative to the Election with Middle Beach Partnership, Inc., a Florida not-for-profit corporation affiliated with the Steering Committee. Concurrent with the City Commission’s final actions to formally establish the District, the Steering Committee will file articles of incorporation creating the 41st St. Business Improvement District, Inc., (the “BID”) a not-for-profit entity to self-govern the District. Composed of member property owners and an elected board, the BID will provide structure and leadership for managing District affairs. Acting as liaison to the City, the BID also provides a unified voice when advocating on behalf of the commercial corridor.
If the Mayor and City Commission approve the final assessment roll and vote to levy the special assessments, the Administration and the Office of the City Attorney will proceed to negotiate a comprehensive Memorandum of Understanding with the BID (the “MOU”), to set forth, among other things, the obligations of the BID to administer the District, as well as the rights and obligations of the City to collect the special assessments, conduct an annual review of the BID's budget and activities, and audit the BID. The MOU will require that the BID comply with Chapter 170, Florida Statutes; the requirements of the Uniform Special District Accountability Act, set forth in Chapter 189, Florida Statutes; and the Florida Sunshine Law, including, without limitation, Chapter 286, Florida Statutes. Additionally, the MOU will authorize the City Manager to appoint an Authorized Representative as a non-voting, ex officio member of the Board of Directors and, if applicable, Executive Committee of the BID. |
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| | | | | | | | SUPPORTING SURVEY DATA
| | As currently proposed in its Year 1 Budget, the District’s most heavily weighted area of services focuses on branding and marketing. According to the 2022 City of Miami Beach Community Satisfaction 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’. |
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| | | | | | | | FINANCIAL INFORMATION
| | A memorandum of understanding will be negotiated and executed to outline the respective roles of the City and the BID in the administration of the District. Consistent with the City’s approach to other business improvement districts, the City will process and, on an annual basis, issue invoices for each property’s assessments. The City will incur costs in connection with processing annual assessments levied upon BID properties, including staff time, mailing costs, and recording fees. |
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| | | | | | | | CONCLUSION
| As affirmed by Commission Resolution No. 2023-32630, a majority of the affected property owners voted in support of levying the annual assessments to fund services that will benefit both the property owners individually, and the District at large. For the duration of the District’s term, the special assessment district will serve as a funding mechanism for growth and improvement.
Affected property owners, stakeholders, and members of the public will have an opportunity to raise concerns and address the City Commission, serving in its capacity as the equalizing board, at the duly noticed public hearing on July 26, 2023.
The Administration recommends that the Mayor and City Commission proceed with this subsequent step in the creation of the District by adopting the attached Resolution to approve the Final Assessment Roll and levy the assessments.
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| | | | | | | | Applicable Area
| | Middle Beach |
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| | | | | | | | | 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 | |
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| | | | | | | | Strategic Connection
| | Prosperity - Revitalize targeted areas and increase investment. |
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| | | | | | | | Legislative Tracking Economic Development |
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| | | | | | | | Sponsor Sponsored by Commissioner Steven Meiner |
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