Research reveals {that a} earlier alcohol freeze in Miami Seashore may price the town $ 14.7 million yearly

As voters prepare to decide whether to take the final call to bars in Miami Beach, a new study says the move could cost the city tens of millions of dollars in revenue.

Residents will vote on a referendum on November 2 that could move the city’s alcohol sales freeze from 5 a.m. to 2 a.m. Miami Beach Chamber of Commerce estimates that a 2 a.m. lockdown will cost the city $ 7.5 million annually in property tax revenue and an additional $ 7.2 million in resort tax revenue, for a total annual loss of $ 14.7 million.

Fishkind Litigation Services conducted the study. The company sent questionnaires to clubs that would be affected by the proposed changes to determine when alcohol sales will take place and to better gauge the impact of an earlier closing date.

These estimated losses result from fewer alcohol sales as well as an estimate of lost profits and lower hotel and grocery sales as a result of the move. In estimating the impact on tourism, the researchers cited data showing that “many guests are motivated to visit Miami Beach, in part because of its nightlife. This factor is mentioned regularly in visitor surveys and in our survey of hotel concierges. “

The researchers used a 20% discount rate to estimate that these future losses are now worth more than $ 70 million.

The study finds that this lost income could be offset by an increase in property tax, which averages about $ 100 for the average home. However, it is unclear which route the city would take to make up for the lost revenue.

Earlier this year, the Miami Beach Commission approved a move moving the final call from 5 a.m. to 2 a.m. while giving voters the final say in the November 2nd election. Officials who voted for the change cited rioting and violence during spring break. These outbreaks caused the city to become one 8 p.m. curfew and the shutdown of trips to the city’s entertainment district. A spike in COVID-19 cases also added to the city’s caution.

The Clevelander Lawsuit filed The Commission’s move was challenged on the grounds that the existing permits contain provisions fixing the last call at 5am. In June, a judge agreed that the move was illegal and reinstated the last call at 5 a.m.

That leaves the final decision to the Miami Beach voters, who will also take part in the mayor’s race and several city commission competitions.

On Thursday afternoon, supporters of the study held a press conference at the Miami Beach Chamber of Commerce highlighting the study and the potential negative economic impact of postponing the deadline.

This study also estimates that more than 4,000 people could lose their jobs due to lower alcohol sales. This is because the region continues to recover from the negative effects of tourism during the COVID-19 pandemic.

“The recovery is fragile and incomplete, which makes this a particularly bad time to continue to weigh heavily on the economy,” the study says.

Post views:
109