HomeMy WebLinkAboutResolution 2025-33688 RESOLUTION NO. 2025-33688
A RESOLUTION OF THE MAYOR ANQ CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND RESILIENCY COMMITTEE, AT ITS JANUARY 24, 2025
MEETING, TO IMPLEMENT A ONE-YEAR LINCOLN ROAD OUTDOOR
CONCESSION FEE ABATEMENT PROGRAM, PROVIDING FOR A 100%
REDUCTION FOR THE FIRST THREE (3) MONTHS FOR ANY NEW
RESTAURANT AND A 50°!o REDUCTION FOR THE MONTHS OF AUGUST,
SEPTEMBER AND OCTOBER 2025(DEEMED THE SLOWEST MONTHS OF
THE YEAR), AS WELL AS A 100% ABATEMENT FOR THE MONTHS OF
AUGUST, SEPTEMBER AND OCTOBER 2025 FOR BUSINESSES THAT
OCCUPY A PREMISES MEASURING 800 SQUARE FEET OR LESS SUCH
REDUCTIONS TO BE APPLIED DURING THE OCTOBER 2025-MARCH
2026 BILLING PERIOD.
WHEREAS,the outdoor dining concession agreement for Fiscal Year(FY)2024/25 began
on October 1, 2024. Fees for the concessions are broken down into two payments. The first
payment covers the months of October— March (billed October 1)and the second payment from
April —September(billed April 1); and
WHEREAS, any amendments to the agreement would require City Commission approval,
to amend the billing cycle, and proceed with any fee adjustments for the desired months; and
WHEREAS, the adjustments would be based on the restauranYs outdoor seating square
footage multiplied by $32 per square foot, per year, which the City charges, minus the 50%
suggested discount; and
WHEREAS, there are currently 149 outdoor concessions throughout the City(Attachment
A), bringing an estimated revenue of$2 Million per year; and
WHEREAS, the Finance and Economic Resiliency Committee (the "Committee")
discussed the potential outdoor dining concession fee reduction and abatement during the months
of August, September and October at its January 24, 2025 meeting, and concluded with a motion
to move the item to the City Commission with a favorable recommendation to implement a one-
year Lincoln Road outdoor dining concession abatement program at 100% for the first 3 months
for new restaurants, and a 50% reduction for the October 2025-March 2026 billing period for
existing restaurants; and
WHEREAS, the item was presented at the February 26, 2025 City Commission meeting
but after much debate, the item was continued to the March 19, 2025 City Commission meeting
with direction that the Administration develop criteria to be considered for a program similar to the
existing Small Business Grant Program (the program is currently funded for$100,000); and
WHEREAS, the item was placed on the March 19, 2025 and April 23, 2025, City
Commission meeting agendas, however the item was not reached; and
WHEREAS, the item was heard at the May 21, 2025 meeting of the Mayor and City
Commission; and
WHEREAS, businesses need financial assistance during the slow summer months (i.e.,
August, September and October); and
WHEREAS, the semi-annual invoices issued October 1, 2025 would be ideal time to apply
the abatement when cash flow is at its lowest; and
WHEREAS, the fiscal impact of the abatement program in respect of August, September
and October 2025 would occur in Fiscal Year 2026; and
WHEREAS, at the May 21, 2025 City Commission meeting, the Mayor and City
Commission accepted the Committee's recommendation and, in addition, agreed to provide a
100% abatement for businesses that occupy a premises that measures 800 square feet or less
during August, September and October 2025.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby, accept the recommendation of the Finance and Economic Resiliency
Committee, at its January 24, 2025 meeting, to implement a one-year Lincoln Road Outdoor
Concession Fee Abatement Program providing for a 100% reduction for the first three months for
any new restaurant and a 50% reduction for the months of August, September and October 2025
(deemed the slowest months of the year), as well as a 100% abatement for the months of August,
September and October 2025 for businesses that occupy a premises measuring 800 square feet
or less, such reductions to be applied during the October 2025-March 2026 billing period.
PASSED AND ADOPTED this a� day of /��_. _4�__2025.
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ATTEST:
Steven Meiner, Mayor
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Rafael E. Granado, City Clerk
(Sponsored by Commissioner Kristen Rosen Gonzalez) '
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City Attomey Date
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1�111 A�ii l BEAC H
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: May 21, 2025
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND RESILIENCY COMMITTEE, AT ITS JANUARY 24, 2025 MEETING,
TO IMPLEMENT A ONE-YEAR LINCOLN ROAD OUTDOOR CONCESSION FEE
ABATEMENT PROGRAM, PROVIDING A 100% REDUCTION FOR THE FIRST
THREE (3) MONTHS FOR ANY NEW RESTAURANT AND A 50% REDUCTION
FOR THE MONTHS OF AUGUST, SEPTEMBER, AND OCTOBER OF 2025
(DEEMED THE SLOWEST MONTHS OF THE YEAR); AND REQUIRING
RESTAURANTS TO APPLY FOR THE ABATEMENT AND SATISFY CRITERIA
APPROVED BY THE CITY COMMISSION, SUCH AS DEMONSTRATED
FINANCIAL HARDSHIP; AND FURTHER, PROVIDING THAT SUCH REDUCTIONS
WILL BE EFFECTIVE DURING THE OCTOBER 2025-MARCH 2O26 BILLING
PERIOD.
RECOMMENDATION
The Administration does not recommend decreasing the outdoor dining concession fees by 50%,
nor the three-month abatement for new businesses, as it would not represent a significant amount
of cost savings for the outdoor dining concession applicant.
BACKGROUND/HISTORY
On November 20, 2024, at the request of Commissioner Kristen Rosen Gonzalez, the Mayor and
City Commission (City Commission) approved item C4F, a referral to the Finance and Economic
Resiliency Committee (FERC) to discuss considering a 50% outdoor dining concession fee
reduction during the months of August, September, and October (deemed the slowest months of
the year), and a fee abatement for any new business for the first three months of operation.
The referred discussion was scheduled to be heard at the December 20, 2024 FERC meeting,
however, the item was not reached, therefore it was rescheduled for January 24, 2025.
On January 24, 2025, FERC members discussed the potential outdoor dining concession fee
reduction and abatemPnt during the months of August, September and October, and concluded
with a motion to move the item to the City Commission with a favorable recommendation to
implement a one-year Lincoln Road outdoor dining concession abatement program at 100% for
the first 3 months for new restaurants, and a 50% reduction for the October 2025-March 2026
billing period for existing restaurants.
ANALYSIS
The outdoor dining concession agreement for Fiscal Year (FY) 2025 began on October 1,
2024. Fees for the concessions are broken down into two payments. The first payment covers
the months of October — March (billed in September) and the second payment from April —
September (billed in March).
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Any amendments to the agreement would require City Commission approval to amend the billing
cycle, and proceed with any fee adjustment for the desired months. The adjustment would be
based on the restauranYs outdoor seating square footage multiplied by $32 per square foot, per
year, which the City charges, minus the 50% suggested discount. There are currently 149
outdoor concessions throughout the City, bringing an estimated revenue of $2 Million per year.
The item was presented at the February 26, 2025, City Commission meeting. It was discussed
that businesses need financial assistance for the previously mentioned months. However, since
the semi-annual invoices arrive October 1, 2025, that would be the ideal time to offer an
abatement when cash flow is at the lowest. Thus, any fiscal impact would occur in Fiscal Year
2026.
The resulting request of the City Commission after much debate, was to continue the item to the
March 19, 2025, City Commission meeting and for the Administration to provide criteria to be
considered for a program similar to the existing Small Business Grant Program (the program is
currently funded for$100,000). The item was placed on the March 19, 2025, and April 23, 2025,
City Commission agendas, however the item was not reached. It is scheduled to be heard on
May 21, 2025. It is important to note that until this abatement request is approved by the City
Commission, the Administration will not be able to proceed with the proposed abatement.
The following criteria is presented for consideration:
PROPOSED CRITERIA:
The following is a set of criteria which could be used to determine if concession applicants
qualify:
Financial hardship:
• Demonstrated recent decline in revenue or profits due to economic factors
• Proof of financial distress through financial statements or other documentation
Compliance history:
• Good standing, no significant or repeated violations of permits or regulations in the past
• Active efforts to correct any existing minor violations
Business operations:
• Active Miami Beach Business Tax Receipt (BTR)
• Registered as an active entity with the Florida Division of Corporations
• Active and in good financial standing with the Lincoln Road Business Improvement
District (LRBID)
• In good standing with the City of Miami Beach and Miami-Dade County, including, but
not limited to, no outstanding taxes or debt, and full compliance with local ordinances,
zoning taws, and licensing requirements.
Other areas for criteria:
• Business size (e.g. no more than 2,000 SQ FT of business space)
• Annual revenue (e.g., less than $2 Million)
• Number of employees (e.g., less than 10)
Potential ineligible restaurants/food services may include:
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• Franchises and national chain restaurants/food services
ELIGIBILITY REQUIREMENT FOR REIMBURSEMENT•
• No a�liation with a nationai chain business or franchise
QUALIFIED EXPENSES
The following qualified expenses incurred by the business will be evaluated for consideration of
an abatement:
Operational Costs:
• Rent, lease, or mortgage payments for business premises
• Utility payments (e.g., electricity, water, internet)
• Repair or purchase of equipment or technology necessary for business operations
Professionai Services and Employee Related Costs:
• Payrall expenses for employees
• Marketing and Advertising
Inventory and Supplies:
• Purchase of inventory or supplies directly related to business operations
Other Approved Expenses:
• Any other expenses deemed necessary for the business' operations
Non-Qualified Expenses:
• Personal expenses are unrelated to business operations.
• Payment of outstanding taxes, fines, or penalties.
• Expenses incurred prior to the execution of the abatement agreement.
• Costs associated with lobbying or political activities.
The City reserves the right to review and approve or deny any expense at its discretion.
Applications with supporting documentation to satisfy the criteria for the abatement program are
due prior to October '1, 2025. Abatements will be credited to the invoiced amount of the outdoor
dining space.
All new businesses will automatically receive an abated invoice for the outdoor space for the first
three manths.
FISCAL IMPACT STATEMENT
As presented at the FERC meeting, the originaf proposal does not present a fiscal impact,
however, there will be a negative revenue impact as listed below:
50°/o reduction for the months of August, September and October: there are 37 Lincoln Road
Cafes (equating up to $123,14Q abaternents).
100% abatement for any new business on Lincoln Road: currently, there are eight (8) new
restaurants that have app�ied for an outdoor dining concession (equating to approximately
$51,200 for three (3) months), based on an 800 SQ FT average footprint.
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CONCLUSION
The Administration does not recommend decreasing the outdoor dining concession fees by 50%,
nor the three-month abatement for new businesses, as it would not represent a significant amount
of cost savings for the outdoor dining concession applicant.
Applicable Area
Citywide
Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond
pursuant to Citv Code Section 2-17? Proiect?
Yes No
Was this Aqenda Item initially requested by a lobbyist which, as defined in Code Sec. 2�81,
includes a principal enqaqed in lobbyinq? No
If so, specify the name of lobbyist(s) and principal(s):
Deqartment
Public Works
Condensed Title
NR- Accept Rec, Implement 1-Year Lincoln Rd Outdoor Concession Abatement Program. PW
Previous Action (For City Clerk Use Only)
Not reached on 4/23/2025 - R7 G
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