South Beach Tourist Mecca Looks at Taxing District for Security, Sanitation

Clevelander Hotel, 1020 Ocean Drive, Miami Beach. Photo: Google

Some property owners along the most popular stretch of Ocean Drive and Collins Avenue in South Beach might face a tax for more police, sanitation and an overall push to advance the bustling tourist area.

An executive with Jesta Group, owner of the Clevelander and Essex House, wants to form a business improvement district on Ocean Drive from Fifth and 15th streets and on Collins Avenue from Fifth to 17th streets.

"It's going to unify the ownership groups into one vision, and then in that vision we can create a platform for improving the safety, the cleanliness, make it a much more high-level experience for our guests and residents," said Mike Palma, Jesta Group executive vice president for the Southeastern U.S.

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The BID would need to be approved by a majority of property owners in an election expected to be held November 2019. First, the Miami Beach City Commission would have to sign off on the details of a special taxing district, including the boundaries and assessments.

Owners could be assessed by linear foot of their buildings, feet of street frontage or another way. Other BIDs, for example, levy 50 cents to $1.50 per linear foot on the annual tax bill, Palma said.

Business property owners rather than residential owners would be taxed.

Two other BIDs cover Lincoln Road and Washington Avenue from Fifth to 17th streets.

The current target is home to some of the top tourist draws in Miami Beach. The hotels include the Clevelander, Essex House, Avalon Hotel, Loews, Delano, The Betsy and Dream South Beach. Other well-known venues are the News Cafe and Mango's Tropical Cafe.

"This is in essence the Times Square of Miami Beach. It's where the energy is and where people want to be. We want to be able to see visible police on the street," Palma said.

The push is in part an effort by business owners to create area-specific marketing and improve garbage collection while tackling security concerns.

"The city has been somewhat receptive, but they've got finite resources," said Alexander Tachmes, the attorney working with the businesses in the proposed BID.

The Clevelander and other businesses have been paying off-duty police officers for weekend nights. This initiative was temporarily discontinued a few years ago after one of the officers was found intoxicated, Palma said.

"During that time we could all feel the demise of the area because when you take six officers off Ocean Drive, it gave this open window to criminal activity," he said.

"I am not saying it's not safe," but he added it could be better.

Exactly how many officers would be added in the neighborhood under a BID hasn't been determined.

Tachmes, a partner at Shutts & Bowen in Miami, said the district would spread the cost of police and other services more equally among businesses.

"These enhanced services for police and sanitation will be spread across every property owner in the district, thereby better defraying the cost and providing more unity to be able to kind of drive their own police, sanitation, marketing."