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LTC 151-2022 Cryptocurrency Update151-2022 MIAMI BEACH OFFICE OF THE CITY MANAGER NO . LTC# LETTER TO COMMISSION TO: FROM: DATE: Honorable Mayor Dan Gelber and Members of the City Commission Alina T. Hudak, City Manag~ April 20, 2022 SUBJECT: Cryptocurrency Update The purpose of this Letter to Commission is to follow up on an approved resolution from the January 20, 2022 Commission meeting directing the City Administration to (1) explore opportunities , and potential benefits to the City, its residents and businesses, for the City to engage in the cryptocurrency space, including by attracting cryptocurrency and other financial technology ("Fintech") entities or businesses to Miami Beach, and (2) provide the City Commission with a report via Letter to Commission within 90 days on potential opportunities which may be available to the City with respect to cryptocurrency . Economic Development -Events, Tradeshows and Conferences: The Administration has and is leveraging partnerships and resources to cultivate relationships with and grow the technology and financial services industries by attending events that offer opportunities for the Miami Beach team to showcase current programs and incentives ; engage with business owners, entrepreneurs , investors and thought leaders ; research and participate in identifying trends ; and marketing Miami Beach . Fintech Thought Leadership Events: April is Tech Month in Miami Beach and the 2022 festivities were launched with "Let's Talk Crypto ," an engaging cryptocurrency thought leadership event that featured venture capitalist Jalak Jobanputra and Laura Shin, journalist, podcast host and author of the newly released "The Cryptopians - a story of the idealists, technologists, and opportunists fighting to bring cryptocurrency to the masses." In partnership with the Miami-Dade Beacon Council and Future\Perfect Ventures, the cryptocurrency chat was held on the eve of the Bitcoin 2022 conference. The rooftop event included local, regional , and national Bitcoin enthusiasts, cryptocurrency influencers, venture capitalists and entrepreneurs. It was a perfect opportunity to welcome our fintech visitors and invite them to get to know Miami Beach incentives , programs , policies , and people . L TC -Cryptocurrency Update Page 2 of 2 Bitcoin 2022 Conference: Billed as the world's largest cryptocurrency conference , Bitcoin 2022 was held April 6-9 , 2022, at the Miami Beach Convention Center campus. Bitcoin 2022 attracted 17,000+ of the best and brightest Fintech leaders and enthusiasts in the rapidly expanding cryptocurrency space . Bitcoin 2022 was welcomed to Miami Beach by Miami-Dade County Mayor Daniella Levine Cava , Miami Beach Mayor Dan Gelber, and Miami Mayor Francis X . Suarez who participated in the unveiling of a 1,000-pound charging bull sculpture as well as a creative and grand activation at Pride Park. The Miami Beach Bitcoin exhibition booth promoted Miami Beach and Miami-Dade County business incentives for new and startup businesses interested in relocating or expanding their operations in Miami Beach . The Economic Development Department, together with the Miami- Dade County Beacon Council and the Greater Miami and Miami Beach Convention and Visitors Bureau (GMCVB) met with more than 500 attendees from cities as close as Orlando and as far away as Australia . Attendees saw videos showcasing vibrant neighborhoods , commercial districts, art and culture , entertainment, office space and many more assets and amenit ies . The city shared helpful information, maps and special offers from trendy restaurants and retail shops. Participants took home quintessential and memorable tokens of Miami Beach hospitality - sunglasses, flip-flops, beach balls/towels and even fresh , local coconuts. The conference brought three days of engaging networking and enhanced our list of prospectives ten-fold . eMerge Americas Conference: Tech Month continued with the return of eMerge Americas 2022 conference at the Miami Beach Convention Center on April 18-19, 2022 . The venture-backed platform focuses on transforming the Greater Miami and Miami Beach community into the tech hub of the Americas . The two-day global tech conference included a welcome by Mayors Levine Cava and Gelber, who highlighted available incentive programs to support new and existing fintech startups and entrepreneurs. The city hosted a "Suits Optional " exhibition booth to connect with attendees and appeal to business owners, influencers and talent interested in making a bold move to Miami Beach . L TC -Cryptocurrency Update Page 2 of2 Job Creation Incentive Program I Expedited Plan Review & Permitting Incentive Program: On March 17, 2021, the Mayor and City Commission adopted Resolution 2021-31620, authorizing the Administration to create a Job Creation Incentive Program (JCIP or the "Program") for the purpose of attracting targeted industries to Miami Beach. The Program offers a performance- based financial incentive available to technology and financial services firms and headquarters relocating to or expanding in the City of Miami Beach. The JCIP affords the city a greater competitive advantage and ability to leverage existing incentives from the State and County. The purpose of the JCIP is to strategically attract new and expanding businesses within the City of Miami Beach and to diversify the economy by strategically increasing the number of quality, high-wage jobs in Miami Beach. Program participants must create or relocate a minimum often (10) new, fulltime equivalent jobs with average annual wages meeting or exceeding 125% of the State of Florida or Miami-Dade County average wage, whichever is higher, at the time of application. After each annual performance period, participants are eligible to receive an incentive based on number of new and relocated employees with additional incentives for participants locating in North Beach, and those hiring Miami Beach residents and employees with education or training received at local institutions. New-to-market companies that are recipients of the incentive may be eligible for an award of up to $60,000 per year for four (4) years. Expanding companies are eligible for an award of up to $60,000 per year for three (3) years. The program has attracted five (5) companies with approximately 235 new or relocated jobs over the next four years; and salaries estimated between $69,000 and $350,000 . On April 6, 2022, the City Commission authorized an amendment to the Program to encourage small businesses to participate and to develop a greater focus on subcategories within the targeted industries including cryptocurrency, blockchain, Web3, decentralized finance, sustainability, resiliency, hospitality, tourism, health and wellness, and arts and culture. As outlined in the program guidelines, recommendations for award of this incentive must be reviewed by the Finance and Economic Resiliency Committee (FERC) and approved by the City Commission . L TC -Cryptocurrency Update Page 2 of 2 Cryptocurrency Task Force The Miami-Dade County Board of County Commissioners created a Cryptocurrency Task Force for the purpose of studying the feasibility of accepting cryptocurrency and other digital monetary forms as an acceptable method of payment for county taxes, fees and services, and to offer recommendations for other policy initiatives relating to cryptocurrencies . The main goals of the Cryptocurrency Task Force are to: • review what other municipalities have done • survey county residents • look for vendors that could provide transaction and custodian services • recommendations of best practices The Task Force was created in April 2021, held its first meeting on September 15, 2021, and recently delivered its report in April 2022. Over the next few weeks, the Administration will review the report of the County's Task Force before moving forward with recommendations for potential initiatives such as accepting cryptocurrency and other digital monetary forms as an approved method of payment. The potential recommendations are planned to be discussed at the Finance & Economic Resiliency Committee meeting on May 27, 2022.