Miami Beach Commissioner Joe Magazine says the commission’s approval last week of his proposal to pay $10 million to the county’s Homeless Trust — instead of taxing small businesses 1% on sales — is a fair financial solution to help fund program's for the homelessness.
“The 1% homeless tax actually would have taxed our smallest mom and pop businesses,” Magazine told WLRN's South Florida Roundup Friday. “What was really unfortunate is that the [Nov. 5] ballot measure would have excluded the largest businesses that could most easily accommodate a 1% sales tax, such as hotels.”
Miami Beach and Miami-Dade officials have been feuding in recent weeks over homeless services after Miami Beach City Commissioners abruptly rescinded the Nov. 5 ballot item — even after 20,000 voters had already cast their ballot. The commission's vote was 4-3. Commissioner Magazine voted with the majority.
The measure would have opted the city into a 1% food and beverage tax to help fund the county’s Homeless Trust. A group of Miami Beach voters then sued the city, but a judge sided with the city. Miami-Dade then demanded the city pay its share of funding for the homeless.
In response, the Miami Beach Commission agreed last Thursday to pay $10 million to the county’s Homeless Trust as well as provide additional funding in the coming years.
During last Thursday’s meeting, commissioners also approved a proposal made by Magazine to direct a 4% hotel bed tax to the county for homeless services once the city’s Convention Center hotel starts running in 2027. It would provide up to $5 million per year until 2039. The city’s proposal will go to the Miami-Dade County Commission for its consideration on Wednesday.
On the latest episode of the South Florida Roundup, WLRN’s Tim Padgett spoke with Magazine about his proposal, the region’s affordable housing crisis and who should foot the bill to help the homeless in Miami-Dade.
READ MORE: Homeless Trust: Miami Beach getting free services for years. County wants city to pay fair share
Padgett: Commissioner Magazine, I want to start with you and update our listeners on what happened yesterday at the Miami Beach City Commission meeting. The commission did in the end vote to pay Miami-Dade County the $10 million it had demanded for the Homeless Trust as a result of Miami Beach taking the 1% tax off the ballot. What exactly was the proposal you recommended that convinced the rest of the commission to go along with that payment? And will the County approve that proposal?
Magazine: Once the convention center hotel is built [in 2027], which will be a key economic driver across Miami Dade County and catering to wealthy conventioneers, Miami Beach was already set to receive a 4% hotel resort tax once that construction is completed and the convention center is up and running. So, now we will divert that 4% hotel tax to the County in support of our recognition that homelessness is a regional issue that we all need to be partners of. So, what we really did is shift that burden from our mom and pop businesses and the residents that frequent them to a convention center hotel.
Padgett: Is that not making an assumption though, that this new project will actually generate enough revenue to accommodate that 10 million payment you need to make?
Magazine: I worked very closely with the development team there to understand their financial projections.The projected revenue is going to be well above the $4 million per year. In the event of a black swan scenario where for some reason that does not happen, the county will be safeguarded because there will be a sweep of the excess RDA surplus funds that exist right now.
Padgett: The sort of homeless “czar” who runs Miami-Dade County’s Homeless Trust — Ron Book and County Commissioners like Eileen Higgins insist that Miami Beach’s move to scrap the 1% tax for homelessness services was an act of bad faith. Miami Beach has countered that Mr. Book and the County have also been acting in bad faith. In what ways specifically?
Magazine: Mr. Book was as clear as day that reimbursement for Miami Beach would include our police services. He said that in no uncertain terms, it's on our public record. It's in our video archives from December 2021. So, the fact that there was so much ambiguity when something was being introduced on the ballot shows just all the more reason that it really wasn't in the proper context to move forward. However, finding this alternative revenue source simplifies the logistics of things and really shows Miami Beach's commitment to helping out our county partners, the homeless trust with this regional issue. We just didn't feel that the dynamics of that previously agreed to deal were in good faith and ready to go forward.
Padgett: Commissioner Magazine, given the new state law that cracks down on the homeless in public spaces, how should Miami-Dade County and municipalities like Miami Beach be better coordinating and cooperating with one another as we move forward?
Magazine: Miami Beach and our county as a whole is a very compassionate city. We are going to do everything that we can and provide the resources that we have at our disposal to help those that are truly in need. Those that need the resources that we can get them on the right track. That being said, it's not compassionate for either the homeless individuals or our community to allow people to continue living on the street. Oftentimes embedded among this is a criminal element. 37% of crimes in Miami Beach are actually committed by the homeless. So, we're an incredibly compassionate city, but it's not compassionate to allow people to live on our streets to fall through the cracks.
The transcription has been edited for brevity. You can listen to the full conversation above or wherever you get your podcasts by searching: The South Florida Roundup.
