10-14-20 Miami Beach Economic Growth Initiative for Class A(78506937.3)There Is No Class A or A+
Office in Miami Beach
The current demand in today’s market is
not being met in Miami Beach.
Currently no contemporary Class A or A+
structure exists in Miami Beach, and the
current code in most districts restricts the
feasibility of any new proposed Class A or
A+buildings
Existing Miami Beach
Office
Competitor neighborhoods understand the value of Class A & A+ Office Space
Miami Beach is losing out
Wynwood
New Office Mixed Use
Coconut Grove
Office Mixed Use
Pipeline
COVID-19 Market Demands
Additional height allows for
smaller floor plates
•Less employees per floor
•Less shared common areas
•Safer work environment
Long Term Positive
Economic Impact
Increased Tax Revenue from
Underutilized Properties
Less Reliance on Tourism Dollars
Short & Long-Term Job Creation
Increased Full-Time Resident
Population
Increased Retail & Restaurant
Spending
Sustained Local Business Support
Proposed Incentive Areas :
Sunset Harbour (CD-2 & I-1)
Alton Road from 6th to Dade
Boulevard (CD-2, non-historic)
Terminal Island (I-1)
Current Projects Impacted by Text Amendment
Eighteen Sunset-Office, Retail, and Residential Terminal Island-Office
No Height Change
Proposed Height Change
No Height Change
Proposed Height Change
Proposed Text
Amendment
Sec 142-306 &
Sec 142-486
To create long-term and diversified economic growth
in Miami Beach, this proposed text amendment aims
to incentivize the development of new Class-A office.
This text amendment will allow for height increases
in select CD-2 and I-1 zones up to 75ft.
All qualifying projects must use .45 of their net FAR
towards office space.
Lot sizes must be 7,500 sq. ft. + to qualify.
What this Proposed Text
Amendment is NOT:
•NO Change to density
•NO Change to building use
•NO Change to short term
rental regulations
Appendix
Miami Beach Class A & B Office
Provided by Colliers International
Terminal Island Tax Analysis
Provided by Flanagan Bilton LLC
Eighteen Sunset Tax Analysis
Retail:
Projected Gross Income (15,051 SF @$75psf):1,128,825.00$
Vacancy & Collection Loss (5%):56,441.25$
Effective Gross Income:1,072,383.75$
Unreimbursed Expenses (5%):53,619.19$
Net Operating Income:1,018,764.56$
Capitalization Rate:5.50%
Value:18,522,992.05$
Assessment (85%):15,744,543.24$
Miami Beach Millage Rate:0.60%
CMB Tax Revenue:94,815.21$
Office:
Projected Gross Income (30,740 SF @$80psf):2,459,200.00$
Vacancy & Collection Loss (5%):122,960.00$
Effective Gross Income:2,336,240.00$
Unreimbursed Operating Expenses (25%):584,060.00$
Net Operating Income:1,752,180.00$
Capitalization Rate (5.5% plus millage):7.50%
Value:23,362,400.00$
Assessment (85%):19,858,040.00$
Miami Beach Millage Rate:0.60%
CMB Tax Revenue:119,587.10$
Parking:
Projected Income (78 spaces @ $300/mo.):280,800.00$
Vacancy & Collection Loss (10%):28,080.00$
Effective Gross Income:252,720.00$
Unreimbursed Operating Expenses (25%):63,180.00$
Net Operating Income:189,540.00$
Capitalization Rate (5.5% plus millage):7.50%
Value:2,527,200.00$
Assessment (85%):2,148,120.00$
Miami Beach Millage Rate:0.60%
CMB Tax Revenue:12,936.19$
Residential Penthouse:
Projected Sale Price:30,000,000.00$
Assessment (85%):25,500,000.00$
Miami Beach Millage Rate:0.60%
CMB Tax Revenue:153,563.55$
Projected Property Tax Revenue:380,902.06$
Resort Tax Revenue:
Total Projected Food, Beverage and Retail Sales (15,051 SF @ $1200psf):18,061,200.00$
CMB Projected Resort Tax Revenue (Total Sales x 2%):361,224.00$
Tangible Personal Property Tax Rate:7%
Estimated Personal Property Value (All Components of Development):5,000,000.00$
Projected Tangible Personal Property Tax Revenue:350,000.00$
Projected Net TPP Tax Revenue to City of Miami Beach:108,766.74$
Current Tax Revenue from Existing Property to City of Miami Beach:49,230.00$
Projected Tax Revenue to City from New Development:850,892.80$
Annual Minimum Difference Between Existing and New Development Revenue:801,662.80$
Additional Annual Tax Revenue Growth over first 5 years of operation for New
Development v. Existing Revenue*:212,593.97$
Total Projected Annual Tax Revenue upon Development Stabilization (Year 5):1,063,486.77$