Item Coversheet

Resolutions - C7  A




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:October  18, 2023
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING IN SUBSTANTIAL FORM AND AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE A MEMORANDUM OF UNDERSTANDING, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH 41ST STREET BUSINESS IMPROVEMENT DISTRICT, INC. TO ADMINISTER THE SPECIAL ASSESSMENT DISTRICT KNOWN AS THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT, WHICH WAS CREATED BY THE CITY PURSUANT TO RESOLUTION NOS. 2023-32544 AND 2023-32715 IN ORDER TO STABILIZE AND IMPROVE THE 41ST STREET RETAIL BUSINESS DISTRICT, THROUGH PROMOTION, MANAGEMENT, MARKETING, AND OTHER SIMILAR SERVICES.

RECOMMENDATION

Adopt the Resolution, which is sponsored by Commissioner Steven Meiner.

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 a 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, 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.

As authorized by City Commission Resolution No. 2023-32566, the City entered into a memorandum of understanding, pertaining solely to conducting the Election, with Middle Beach Partnership, Inc., a Florida not-for-profit corporation affiliated with the Steering Committee (the “Election MOU”). Pursuant to its terms, the Election MOU expired upon the City’s certification of the results to 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 such improvements and providing such 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.

Following the opportunity for testimony, the Mayor and City Commission voted to levy the special assessments. Thereafter, pursuant to Section 170.08, Florida Statutes, the Mayor and City Commission met as an equalizing board to hear and consider any and all complaints as to the special assessments and to adjust and equalize the assessments on a basis of justice and right, following which the Mayor and City Commission approved the final assessment roll for the District pursuant to Resolution No. 2023-32715, adopted on July 26, 2023.

ANALYSIS

 

Incorporation of BID Entity

On July 6, 2023, representatives of the Steering Committee filed articles of incorporation with the Florida Secretary of State to create a nonprofit entity named the 41st Street Business Improvement District, Inc. (the “BID”). The BID is composed of member properties and an elected board of directors (including opportunity for a City appointee on the board of directors). The BID provides structure and leadership for managing District affairs, and acting as liaison to the City, and provides a unified voice when advocating on behalf of the 41st Street commercial corridor.

Memorandum of Understanding

The Administration and the Office of the City Attorney have negotiated a comprehensive Memorandum of Understanding with the BID (the “MOU”), attached in draft form as an Exhibit to the Resolution accompanying this Commission Memorandum, to set forth, among other things, the obligations of the BID to administer the District, as well as the relative rights and obligations of the BID and the City. These include, but are not limited to the following:

      BID

  • Compensate the City a 1% administrative fee, as well as reimburse actual costs and expenses, for the City’s collection of the special assessments.
  • Conduct biannual assessment survey and reporting of District properties, in correlation with biannual 5% escalation in assessment rates, to promote fairness, accuracy, and transparency.
  • Provide to the City an annual budget and annual report on BID activities.
  • Provide to the City quarterly reports on commercial performance metrics within the District.
  • 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.
  • Provide training to the Board of Directors on Chapter 170, Florida Statutes; the Uniform Special District Accountability Act; and the Florida Sunshine Law.

 

      City

  • Administer collection of the special assessments on an annual basis.
  • Conduct an annual review of the BID's annual budget and activities and quarterly review of commercial performance metrics within the District.
  • Audit the BID, as the City Manager may, in her/his reasonable discretion and judgment, deem necessary. 
  • Appoint, at the City Manager’s discretion, an Authorized Representative as a non-voting, ex officio member of the Board of Directors.

SUPPORTING SURVEY DATA

As currently proposed in the BID’s Year 1 Budget, ‘branding and marketing’ will receive the largest funding allocation among categories of BID services. 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

The MOU provides for personnel from the City Administration to administer the collection and processing of annual assessments, track the BID’s progress, and monitor compliance with the MOU. In recognition of the recurring administrative support by the City Administration that is necessary to ensure the BID’s long-term success, the City and BID have negotiated an annual administrative fee in an amount equal to one percent (1.0%) of the assessments remitted to the 41st Street BID by the City in the previous fiscal year. Actual costs and out-of-pocket expenses incurred by the City in connection with administration of the assessment collection will be reimbursed to the City by the BID. Such costs may include, but are not limited to, bank transfer fees, postage, mailing supplies for invoices and any other notices required by law, and expenses incurred by the City in the course of remitting the assessments to the BID and collecting unpaid assessments, including, without limitation, the cost of recording liens, court costs, and filing fees.

CONCLUSION

As affirmed by Commission Resolution No. 2023-32630, the owners of affected property voted in the Election wherein a majority voted in support of levying the annual assessments to fund services including promotion, management and marketing, that will benefit themselves and the District. These property owners have voted to organize as a body, represented by the BID, in their relationship with the City. For the duration of the term, the assessment district will serve as a funding mechanism for growth and improvement.


The Administration recommends that the Mayor and City Commission proceed with this final step in the BID formation process, by adopting the Resolution to approve the MOU that memorializes the respective obligations and responsibilities of the City and BID throughout the 10-year duration of the District.

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
Commissioner Steven Meiner

ATTACHMENTS:
Description
Attachment - Draft MOU
Resolution