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HomeMy WebLinkAboutBack-Up DocumentsBusiness Impact Estimate: Adding to existing Chapter 10/Article IV2/Article IX code registration for structures three stories or higher a nonrefundable annual fee of @0.30 per square. 1. Summary of the Proposed Ordinance This ordinance proposes a registration program for owners of blighted, unsecured, vacant, or abandoned structures within the City of Miami. The purpose is to: • Address the public health, safety, and welfare concerns associated with vacant and abandoned properties. • Reduce blight within the community. • Offset the additional costs incurred by the City in dealing with vacant and abandoned properties, such as increased waste removal, nuisance abatement, and crime prevention. 2. Estimated Revenues and Costs a. Estimated Revenues Businesses that own blighted, unsecured, vacant, or abandoned properties will be subject to annual registration fees. The registration fees are intended to cover the City's regulatory costs associated with the program. The fee schedule is: Current Fees: • Year 1: $262.50 • Year 2: $394.00 • Year 3 and beyond: $525.00 New Charges or Fees: • Additional fee of $0.30 per square foot for structures exceeding three stories (non-refundable) b. Estimated Direct/Indirect Compliance Cost • Program administration (staffing, Operating, etc.). Code Compliance (1,352 hours) $122,500 Police Heat Team $300,000 Homeless $39,926 Total Direct Cost $462,426 • Indirect Cost rate (Administrative cost) $126,242 Square Footage 2,207,901 Per Square footage(Cents) 0.30 Estimated Revenue 662,370 Estimated Cost Code (1,352 hours) 122,500 Police Heat Team 300,000 Homeless 39,926 Total Direct Cost 462,426 Indirect Cost rate (Administrative cost) 27.30% 126,242 Total Cost 588,668 3. Economic Impact on Businesses Based on staff analysis there are 64 businesses that will be impacted, with a total square footage of 2,207,901. An average cost to a business that is vacant, blighted, unsecured and abandoned: Number of Businesses Being Impacted 64 Average Square footage 34,498.45 Fee per square footage (cents) 0.30 Total $10,349.54 4. Additional Information • This ordinance is intended to incentivize property owners to maintain their vacant or abandoned properties or take steps towards their productive reuse. • The City may explore offering incentives or programs to assist property owners in bringing these structures into compliance. • Public education and outreach will be crucial to inform property owners about the ordinance and its requirements. Please note: This is a preliminary business impact estimate based on the information provided. The final estimate may be subject to change as the ordinance is further developed and finalized.