Miami Beach

Property values surge in Miami Beach with $1.1 billion in new construction

Property values in Miami Beach increased again last year, according to preliminary estimates from the county property appraiser.
Property values in Miami Beach increased again last year, according to preliminary estimates from the county property appraiser. jflechas@miamiherald.com

With the highest value of new construction in the county, the total property value in Miami Beach grew by about 13 percent last year, which will give City Hall another bump in tax revenue as it prepares its next municipal budget.

The Beach added $1.156 billion in new construction in 2015, according to the Miami-Dade property appraiser’s June 1 preliminary report on tax-roll estimates. Total for the county was more than $5 billion. Across the county, final figures will be released July 1.

After a similar increase last year, the City Commission approved a $300 million budget and slight decrease in the city’s property tax rate. Fueling the growth in value was a busy construction market, with large projects like the Faena Hotel in Mid-Beach opening in 2015.

Preliminary numbers indicate that the city could bring in an additional $20.3 million in tax revenue, according to a memo from City Manager Jimmy Morales, although that number could change depending on whether values increased in the city’s redevelopment areas, like the neighborhood that encompasses the Miami Beach Convention Center and the New World Symphony. Tax revenues collected in these areas go toward projects in these neighborhoods.

Cintya Ramos, the Beach’s budget director, said the estimated increase gives commissioners room to evaluate priorities as they discuss the budget.

“It allows us to have a big-picture discussion about keeping our current level of city services, assess our capital needs and make decisions based on those conversations,” she said.

The commission’s finance committee is set to start the conversation at 1 p.m. Monday at City Hall, 1700 Convention Center Dr.

By the fall, elected officials will set the property tax rate and determine what to do with any surplus revenue. Among the projects that commissioners could consider: a new fire station, an olympic-sized pool and a new passive park to replace a par-3 golf course in the Bayshore neighborhood.

Joey Flechas: 305-376-3602, @joeflech

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