‘Hostile takeover’ or helpful neighbor? Miami Beach weighs annexing North Bay Village

An economic boost

Joining Miami Beach could have financial benefits for North Bay Village.

North Bay Village has just over $1 billion in taxable property value, with less than ten percent of that coming from non-residential properties. Despite still-underdeveloped waterfront, the village generated almost no revenue from new development last year. The city was the only municipality in Miami-Dade to raise the tax rate from 2016-2017.

In 2017, its 8,300 residents paid a nine percent higher property tax rate than people living in Miami Beach. Though part of that has to do with debt incurred by pricey infrastructure projects, a big part of the difference is the taxes North Bay Village levies to pay for county fire services. If it were part of Miami Beach, North Bay Village would no longer pay the county for those services because Miami Beach has its own fire department. Both cities’ tax rates fall close to average for the county.

In general, Miami Beach has more money to spend on services for residents. Property taxes alone generate $1,600 more available dollars per resident in Miami Beach than North Bay Village, mostly due to taxes levied on commercial properties.

“We’d get a lot more bang for our buck,” said Kevin Vericker, a North Bay Village activist and blogger who says he’s undecided on the issue but doesn’t think the proposal is farfetched. “I think all of the nonsense in our government has compromised trust. So I think it has a shot.”

From Miami Beach’s perspective, property taxes from North Bay Village could be a welcome addition to the city’s coffers.

“We would not be assuming a low-income population by any means — quite the contrary,” Arriola said. “And they’ve got under-developed commercial areas that if they were to be developed would be quite profitable and a nice amenity for Miami Beach residents.”

Philip Freedman, managing director of Compass Development in Florida, said having a Miami Beach address would also likely boost North Bay Village property values.

“I believe that the panache and cachet of Miami Beach is so strong that even though North Bay Village has been a strong community for decades, it would only be a benefit to the residents on the island to have a Miami Beach moniker as a postal code,” he said.

For buyers from other parts of the country and from Latin America, Miami Beach has the name recognition that North Bay Village doesn’t, Freedman added.

It’s all going to come down to how Miami Beach sells the idea to residents, said North Bay Village Commissioner Eddie Lim. While he sees the potential benefits, for a lot of residents of North Bay Village, he says, the economics aren’t enough. They like the conveniences of a small town.

“I also know the voters won’t vote for annexation,” said village resident Jane Blake. “The most important feature in North Bay Village is that police can respond in a few minutes.”

An ‘attack’ on the city’s identity

It’s unclear whether the Miami Beach City Commission would get behind the proposal. Four commissioners told the Miami Herald they wanted more information before weighing in.

Commissioner Michael Góngora said he thinks both cities should consider the possibility, but doesn’t believe the North Bay Village Commission would ever approve. “We can consolidate government and provide efficiencies to save taxpayer money for these communities,” especially when it comes to emergency responders like the police and fire departments, he said.

Commissioner Kristen Rosen Gonzalez was less enthusiastic. She said she was concerned North Bay Village residents would see annexation as “an attack on their identity.”

“North Bay Village is an island paradise with a storied history and its own culture,” she said. “If the people of North Bay Village embrace it, I will.”

Tiny North Bay Village, incorporated in 1945, has a rich history of glamor and intrigue. It’s been a favorite hangout for both mobsters and celebrities, including Frank Sinatra, who shot a movie in a local club.

Asked what he thought about the proposal, Miami Beach Mayor Dan Gelber joked about North Bay Village’s dining options but declined to take a side. “I understand Ricky [Arriola] is raising an invading army because he’s always had his eye on Benihana,” he said, referring to the Japanese restaurant. “Personally I think Shuckers [Waterfront Bar and Grill] is a high-value target as well.”

Jokes aside, Arriola and Góngora believe annexation could offer real benefits.

Chief among them, for North Bay Village residents, could be Miami Beach’s assistance in paying for much-needed infrastructure improvements and preparing for sea level rise, Arriola said.