City wants to label North Beach ‘blighted’ to invest $100 million in property taxes
A clash between North Beach residents and one of the neighborhood’s most prominent property owners forced Miami Beach commissioners to punt on a controversial vote requesting that the county designate North Beach as “blighted” for the purposes of establishing a community redevelopment agency there.
A report authored by a city consultant found that North Beach, an area bounded by 87th Terrace to the north and 65th Street to the south, meets nine of 15 criteria identified by Florida statute in order to designate an area as blighted, or ripe for redevelopment. Just two are needed.
The study found higher rates of emergency calls, code violations and vacancy rates in North Beach than elsewhere in the city.
But, the consultant also pointed out that the predominance of small lots and a “diversity of ownership” in the area — two other criteria the statute lists — would make “larger scale full-block development” difficult.
Over the 20- to 30-year life of the redevelopment agency, the city would be able to pump about $100 million in property tax revenue into the area that would otherwise go to the county, the consultant said.
Commissioners on Wednesday, speaking over a loud back-and-forth between residents and North Beach developer Matis Cohen, agreed to postpone a vote on the matter until February so the city could organize a community meeting to answer residents’ questions about what type of development the city intends for North Beach. A date for the meeting has not been announced.
When the city approved its 2016 North Beach Master Plan, a redevelopment agency proposal figured into discussions about possible sources of funding for improvements to the area, which has a median household income of about $9,500 less than the rest of the city, according to the plan.
In July of 2018, the commission adopted a resolution to commence discussions with the county about the possibility of applying for a redevelopment agency.
The Master Plan recommended the city create a vibrant and pedestrian-friendly downtown area at Town Center along 71st Street, develop the Byron Carlyle Theater and improve transportation in the area by building crosswalks and bicycle paths.
If a redevelopment agency is approved, the board would prioritize funding projects outlined in the Master Plan, said Commissioner Mark Samuelian.
“My goal would be to bring to life the North Beach Master Plan,” Samuelian said. “That is the guiding post.”
The formation of a redevelopment agency would allow the city to keep the lion’s share of the property tax revenue generated in North Beach for the sole purpose of funding capital projects within the borders of the designated area. The county and the rest of the city receive the majority of that revenue today.
“This really is about trying to improve the quality of life in North Beach by dedicating city and, importantly, county funds to that area,” Samuelian said.
A new anti-blight designation would help attract development, said Commissioner Ricky Arriola.
“They know there’s going to be money in the future that’s going to come from the [redevelopment agency], and is going to be reinvested in the neighborhoods,” he said. “This is an effort to reinvest in the community for decades to come.”
The city has established two anti-blight tax districts in its history, both of which are considered big successes. The South Pointe Community Redevelopment Agency, which was active between 1987 and 2006, saw assessed property values balloon 42-fold. The City Center Community Redevelopment Agency, which has been active since 1993, experienced increases 20 times the original values.
Nancy Liebman, a former Miami Beach commissioner, said she remembers when the city proposed the City Center Community Redevelopment Agency before she became a commissioner. She urged the current board to do sufficient public outreach before voting.
She said she was concerned the county may reject the city’s proposal due to “all of the negative commotion.”
“The [redevelopment agency] is one of the best things that ever happened in this city,” she said. “It’s giving us the money to spend that normally would have gone to the county.”
Kristen Rosen Gonzalez, a former commissioner who lost her bid to rejoin the board in November, said residents may be more welcoming of a new tax district if the city offers a “plan and a promise.”
“I think what people want to know is what you’re planning on doing with the money,” said Rosen Gonzalez, who attended an impromptu meeting of residents in North Beach a day before the vote was to take place.
Paula King, who organized the gathering at her home, said she invited six neighbors but about 35 showed up.
“I’m against the lack of public outreach,” she said in a Facebook message. “The public should be driving the bus, not developers and our public servants who have the job of protecting the public trust.”
Cohen, who owns several garden apartments in North Beach, was frustrated that he could not make a case for the proposed redevelopment agency before the commission. He was asked to “step back” by Mayor Dan Gelber during the apex of the exchange.
In a text message after the commission voted to defer its decision until February, Cohen called the incident a “childish dispute about misinformation from the same people who are always against everything.”
“An important issue that was ignored is that the county commissioners need to vote and approve [the city’s request], and this delay could push us into their election cycle and derail us,” he said.
County Commissioner Sally Heyman, who represents North Beach, would sit on the board of the redevelopment agency if it were ratified. The redevelopment agency board would be composed of the current city commission and Heyman, commissioners said.
She said she is not “a fan” of the ways anti-blight tax districts are structured. Money can often be spent arbitrarily, she said, at the direction of unscrupulous stewards. But Heyman said she trusts the city commissioners to jump-start North Beach.
A 2015 Miami-Dade grand jury report found that some anti-blight tax districts appear to run like “slush funds” for elected officials in charge. Designed to fight poverty, the report said, these districts often subsidize cultural and recreational projects, like dog parks.
Asked if she was concerned with the tax dollars the county would be losing, Heyman called the redevelopment agency a “win-win” in the long haul because North Beach’s success will be the county’s eventual success.
“I’m excited it’s getting off the ground,” she said. “When you think about it, if it’s going to generate improvements and the improvements are going to generate greater revenue, then the county is on a win win.”
Arriola, who was confused by the response from residents at the meeting, said the proposal was “an effort to reinvest in the community for decades to come.”
“Rather than send that money elsewhere in the city or the county, that money stays in the area where it’s generated,” he said. “Going forward, more money is going to be coming to your neighborhood.”
He added after the vote, in a text: “It’s hard to comprehend how someone living in a [redevelopment agency] wouldn’t want to see more money invested in their neighborhoods.”
This story was originally published January 21, 2020 at 6:01 AM with the headline "City wants to label North Beach ‘blighted’ to invest $100 million in property taxes."
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