United States: A Strategy For Revitalization

For some time, downtown Miami has lacked market-rate residential housing, a critical component to revitalizing the urban core. A downtown that could bustle with activity is desolate between 5:00 P.M. and 7:00 A.M. on weekdays and remains desolate on weekends. For 30 years, I have practiced law downtown, and I have witnessed this unfortunate phenomenon. I am pleased, though, with a surge of activity involving approximately $3 billion in mixed-use, residential and commercial developments in the downtown area that results from recognition by the City's leadership of the area's potential and from targeted government incentives.

Miami's natural beauty and scenic landscape undeniably attract new residents. However, a dramatically increasing population over the last twenty years, a restricted development boundary to the West, and frustration from lengthy commutes accentuates the need for increased redevelopment downtown.

The City of Miami's elected leadership recognizes that a livable and sustainable residential community downtown can be accomplished through targeted incentives. With the recent passage of a citywide economic development referendum, and focused attention on downtown area revitalization, the City has ensured that a number of incentives are available to developers constructing new housing stock and redeveloping old properties downtown.

These incentives include: a City of Miami Impact Fee Exemption for three (3) market-rate residential projects with, among other things, 200 or more residential units downtown; a $4 million one-time grant to improve the green space along the mouth of the Miami River; one hundred percent (100%) approval of off-site parking for residential developments within 1,000 square feet of the residential development or 600 square feet of a Metromover station; and certain enterprise zone incentives.

Most of downtown lies within the City's enterprise zone. In September 2002, the City leadership received approval from the electorate to grant property tax abatements to new and expanding businesses and other developments within the enterprise zone. In December 2002, the City Commission adopted an ordinance establishing the criteria for exercising its discretion to grant these partial abatements of city taxes to qualifying developments. The purpose of these abatements is to promote development and job creation. Also, within the enterprise zone, new or expanding businesses and developments are eligible for: an abatement of a portion of Miami-Dade County's local property taxes for up to five (5) years, if a business creates at least five (5) new full-time jobs; a refund of up to 96% of impact fees, excluding impact fees paid to mitigate the development's impact on neighboring schools; a 96% tax credit against sales and use or corporate income tax on wages paid to employees that are enterprise zone residents; and a 96% credit against Florida corporate income tax liability for up to $50,000 for up to 5 years, based on ad valorem taxes not abated by local government.

The urban infill development incentives for downtown Miami encourage the creation of a livable and sustainable residential community, changing the landscape of the City and the patterns of its population. Many developers find that they are able most effectively to avail themselves to these incentives through association with area strategic planning teams comprised of architects, engineers and lawyers who take an interdisciplinary approach to urban development by aggregating their expertise in corporate finance, real estate, land use, government relations and urban design, that navigate the projects through the development process. Developer/consultant alliances in the City of Miami have recently obtained project approvals of, for example:

• Mary Brickell Village, an approved 32-story, 382-unit, mixed-use apartment development that spans more than a city block, with 5 restaurants, a Publix Supermarket, and a health club;

• Jade Residences at Brickell Bay, an 80% pre-sold, 48-story, 336-unit condominium development;

• Neo Lofts on the Miami River, the first projected loft-style condominium development downtown, with 27 stories and 332 residential units;

• South Bayshore Tower, a 39-story, 347-unit, mixed-use apartment development located on Brickell Bay Drive, with a plaza level restaurant and other commercial and retail space;

• Biscayne Village, a mixed-use development at the intersection of North Bayshore Drive and Biscayne Boulevard, with 437 residential units, including lofts, and a ground floor with retail space;

• One Miami-Two, a contemplated 1,500 residential unit, mixed-use development with 5 free-standing structures: a 12-story parking garage, a 4-story entertainment complex with a 16-screen movie theater, a 39-story, 400-unit condominium tower, a 42-story, 450-unit apartment tower, and a 72-story, 650-unit apartment tower.

These and other similar projects are revitalizing and transforming downtown Miami, making it an exciting place for people to live and work for the first time ever, without the hassle of time-consuming commutes.