RESOLUTION 92-20522 •
RESOLUTION NO. 92-20522
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, REQUESTING THAT
LANGUAGE BE ADDED TO DADE COUNTY' S PROPOSAL
FOR THE EXPANSION OF THE LOCAL OPTION TOURIST
DEVELOPMENT TAX WHICH WOULD ALLOCATE
ONE MILLION DOLLARS OF THE TAX REVENUES YEARLY
FOR THE CREATION OF QUALITY HOTEL ROOMS ON
MIAMI BEACH TO SUPPORT THE MIAMI BEACH
CONVENTION CENTER AND AUTHORIZING THE CITY
MANAGER TO NEGOTIATE SUCH.
WHEREAS, Metropolitan Dade County is proposing a change to
Florida Statutes Section 125 . 0104 which would expand the Local
Option Tourist Development Tax currently charged; and
WHEREAS, it is estimated that approximately $20 million will
be generated from the expansion of the tax; and
WHEREAS, the County has proposed that the revenues be
allocated to Tourism, Advertising and Promotion; Homeless Programs;
Economic Development in distressed areas; Job Creation Economic
Development and Cultural Programs; and
WHEREAS, the City of Miami Beach is in need of quality hotel
rooms in and around the Miami Beach Convention Center which is the
major Convention Center for all Dade County; and
WHEREAS, the creation of quality hotel rooms would stimulate
new employment opportunities in the County as well as in the City
of Miami Beach.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the City Commission of the
City of Miami Beach requests that language be added to the proposed
amendment to the Local Option Tourist Development Tax which would
allocate the amount of $1 million on a yearly basis to the City of
Miami Beach for the creation of quality hotel rooms in and around
the Miami Beach Convention Center and authorizing the City Manager
to negotiate with Dade County and the Dade Delegation for the
inclusion of such language in the amendment.
PASSED and APPROVED this 3rd day o June , 1992 .
Kj)2
MAYOR
i
ATTEST:
CITY CLERK
FORM APPROVED
LEGAL DEPT.
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSiON MEMORANDUM NO. 37S-92,
TO: Mayor Seymour Gelber and DATE: June 3 , 1992
Members of the City Commission
FROM: Roger M. Cult
City Manager
REPORT OF COUNTY-WIDE EXPANSION OF FOOD AND BEVERAGE TAX
SUBJECT: REGARDING CONVENTION HEADQUARTERS HOTEL ON MIAMI BEACH
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the City Commission approve the
position of adding language to the proposed State Legislation which
would allocate $1 million of the funds for acquisition of land
relating to and/or at least the construction of a Convention
Headquarters Hotel on Miami Beach.
BACKGROUND:
During the regular State Legislative Session the expansion of the
County's Food and Beverage Tax (levied in all of Dade County with
the exception of Miami Beach, Sunny Isles and Bal Harbour) to all
restaurants with liquor licenses and the expansion of the eligible
uses for the tax were proposed. This item was a County and City of
Miami Beach priority during the regular session of the Legislature.
In its original form the proposal was that the revenues generated
from this expansion would be allocated as follows:
25% for Cultural Programs.
45% for the Greater Miami Convention and Visitors Bureau.
30% for the Local Economic Development Programs at the
County's discretion.
County Commissioner Dusseau further proposed that the 30% for local
economic development be allocated as follows:
50% of the 30% to Homeless Shelter and Social Programs.
$2 , 000, 000 toward the construction of Convention Headquarters
Hotel to be located in Miami Beach.
$1, 000, 000 toward a World Trade Center.
Although the County approved in concept the Dusseau proposal, the
legislation presented to the Legislature did not contain any
language as to the allocation of the 30% Economic Development
funds. As a result, several organizations attempted to allocate
this portion in various manners, leading to the eventual failure of
the expansion of the Food and Beverage Tax.
Continued. . .
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AGENDA
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COMMISSION MEMORANDUM PAGE TWO JOIE 3, 1992
The County, the Greater Miami Convention and Visitors Bureau and
the Cultural Affairs Council are anticipated to resurface the item
at the Special Session. In its current form, the allocation of
funds changes to the following:
ESTIMATED REVENUE PERCENT CATEGORY
$9, 000, 000 45% Tourism Advertising and
Promotion
$3 , 000, 000 15% Homeless Programs
$2 , 000, 000 10% Economic Development in
Distressed Areas
$1, 000, 000 5% Job Creation Economic
Development
$5, 000, 000 25% Cultural Programs including
$20,000,000 100% Metrozoo and Vizcaya Marketing
ANALYSIS:
With the above allocation, it appears that the City of Miami Beach
Convention Headquarters Hotel may be precluded from funding unless
the site was in a Redevelopment Area. The 10% Economic Development
in Distressed Areas includes a caveat that the funds would be used
for economic development activities in slum or blighted areas,
i.e. , redevelopment areas. As the City of Miami Beach currently
has only one redevelopment area (South Pointe) and has not made a
final decision on the Convention Center Redevelopment Area, a hotel
site in and around the Miami Beach Convention Center may not be
eligible for funding under this category.
The remaining category of 5% - Job Creation Economic Development
would be allocated for economic development activities developing
new or expanded businesses or to stimulate new employment
opportunities. Although a Convention Headquarters Hotel would
clearly be eligible for funding from this category, the City of
Miami Beach would be subject to an allocation from the County along
with other projects which meet this definition. With an estimated
$1 million in revenue generated in this category, it is unlikely
that the entire $1 million would be allocated for a Convention
Headquarters Hotel, thereby not providing a sufficient allocation
to assist the City of Miami Beach in completion of the Hotel.
CONCLUSION:
The City of Miami Beach should actively pursue a change to the
proposed language to include at least a $1 million allocation of
funds generated from the expansion of Dade County Food and Beverage
Tax for the specific purpose of a Convention Headquarters Hotel on
Miami Beach. Said purpose should not be restricted to construction
of a Hotel but also include the acquisition of land relating to a
Convention Headquarters Hotel.
CONCERN:
While the position incorporated in this memorandum is appropriate
from the standpoint of Miami Beach, it is my concern that other
municipalities and non-profit entities are polarizing regarding
their specific interests. My recommendation is that the
Administration be authorized to take the position in support of the
Convention Headquarters Hotel, but negotiations should be allowed
in order to not adversely impact ultimate passage of this
Legislation.
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PrRESOLUTION NO. 92-20522
Requesting that language be added to
Dade County's proposal for the expansion
of the local option Tourist Development
It: Tax which would allocate one million
dollars of the tax revenues yearly for
the creation of quality hotel rooms on
Miami Beach to support the Miami Beach
Convention Center and authorizing the
City Manager to negotiate such.
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