Here are ways Miami could spend millions in rent from David Beckham’s stadium complex
For 99 years, Miami stands to receive at least $4.3 million in annual rent from the developers of Miami Freedom Park, the $1 billion commercial and Major League Soccer stadium complex that will host home games for Inter Miami. Before the developers even pull permits to start construction, commissioners are considering ways to spend half of the new revenue.
The new dollars could flow entirely into the city’s general fund, the $965 million pool of mostly tax dollars that pays for police, fire rescue and other city services. Commission Chairwoman Christine King has a different idea: diverting 25% of the rent — at least $1 million — to a semi-discretionary fund divided among the mayor and commissioners for anti-poverty projects in their districts. Another proposal from Mayor Francis Suarez and Commissioner Joe Carollo would steer 25% toward a new affordable housing trust fund.
The full commission will consider both proposals Thursday.
Rent payments will begin at a reduced rate after the land for Miami Freedom Park is vacated by the operators of the Melreese golf course so construction can begin, which could happen within the next six months. Under the lease, developers are required to build the stadium and adjacent 58-acre park first. The full rent would not be due until the city allows the stadium to be occupied, which team owners hope will happen by spring 2025.
The $2.7 million anti-poverty fund allows commissioners to give money to community groups, nonprofits, food distribution organizations and other private interests.
“It will help me achieve my goal of transforming the district into one of the richest areas of Miami in culture, diversity, entertainment, housing and economic opportunities,” King said of her proposal.
“This approach allows me to address the underserved areas and communities with the greatest need and often the least amount of support, particularly Liberty City,” she said. She added that while Overtown and Little Haiti need support as well, those neighborhoods benefit from assistance from the Overtown Community Redevelopment Agency and the Little Haiti Revitalization Trust.
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King’s proposal comes about a week after the commission gave initial approval to a $1.5 billion spending plan for the city’s operating budget. A majority of the commission must approve spending from the anti-poverty fund, which is divided among the mayor and commissioners depending on poverty rates in each district. King’s District 5 is budgeted to receive $580,000, the largest share, pending final approval of the overall budget on Thursday.
If approved, King told the Miami Herald, she intends to direct her share toward initiatives that support housing opportunities, summer jobs for youths and programs for seniors.
A separate proposal sponsored by Suarez and Carollo would set aside another 25% of the Freedom Park rent revenue to create a trust fund that could provide financial assistance to developers, existing homeowners and first-time buyers. The trust fund, which would be managed by city housing administrators, would spend money either through open bids on projects or with approval by the commission.
The plan calls for the trust fund to exist for at least five years, and for additional funding to come from interest on any loans the fund provides.
The rent payments from Miami Freedom Park could grow, based on the 99-year lease approved by commissioners in April. The overall rent minimum was set at $4.3 million, but new appraisals that are still not finalized could push the floor higher. Once the project is built, the city will receive 6% of Freedom Park’s gross revenues if that figure is larger than the rent minimum.
This story was originally published September 19, 2022 at 4:12 PM.
