MDM Wants Subsidy By Late October To Build Marriott Expo Center

Negotiations will begin within the next few days on a subsidy deal for the Marriott Marquis Miami Worldcenter Hotel & Expo Center.

Developer MDM wants a tax rebate that could be worth at least $100 million. Company representatives told Southeast Overtown Park West Community Redevelopment Agency board members yesterday that they hope to have a deal finalized by later this month, the Herald reported.

The $750 million project is expected to include 1,800 rooms and 600,000 square feet of convention space.

Construction permits were applied for earlier this summer. The project is forecast to open in fall of 2018.

 

 

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Anonymous
6 years ago

This Convention Center and MWC are the most important economic catalyst projects for the park west / museum park districts, if you want to see increased jobs, increasing tax base and increased property values these projects must move forward and the city should push these negotiations forward the long term benefits to the taxpayers far outweigh the short term concerns.

Anonymous
6 years ago

Good luck with that. I think most taxpayers in the City of Miami are fed up with these cozy deals.

MrDreTheOne
6 years ago

Agreements like these enable developers to build projects that ultimately generate tax revenues that far exceed any of the breaks they get in addition to many other improvements for the city. That is why cities accept these “cozy deals”.

Anonymous
6 years ago

Prove it. MDM is asking for an even larger share than the current 50% of property taxes to go to the local CRA rather than the city. Based on the $100 million number thrown around in tax rebates they’d have to generate $10 million a year in property tax to breakeven for the city, no?

Really???
6 years ago

You seem to have a funny way at looking at this. They want tax “rebates” of $75M to be paid out over 20 years. Due to inflation the value of those rebates are closer to $100M in today’s dollars.

But regardless your $10M a year breakeven doesn’t make sense. If the developers doesn’t build anything then the city loses out because they can’t get property taxes from something that isn’t there.

Look at it this way. What if you owned a piece of land that has a property tax of $100k a year and by building on it you would have to pay $5M a year in property tax. So if you left it vacant for the next 10 years the city would get $1M in taxes. But if you built it out the city would get $50M in taxes. Even if the city gave you tax rebates for $45M they would still come out making $5M more. Plus all the new jobs, income taxes, sales tax, etc that are generated from the project over that 10 years.

In an environment where people are going to build no matter what because its a mature market it doesn’t make sense for the city to make a deal like that as the person is going to build anyway. But in an environment like downtown Miami where the CBD still have vast amounts of vacant land and the growth could still take a couple decades there is no reason to jumpstart the growth because again you can’t get taxes from something that is not there.

Anonymous
6 years ago

How about this… why can’t they build without the tax rebate? Seems fishy, no? Will this project not survive on it’s own merit? If not, are the developers trying to pull a fast one?

Really???
6 years ago

I’d say look around at what most developers are doing and you’ll get your answer. If they were building another condo building that everyone else is building then I’d say yes. Why give them a tax rebate to do what everyone else is doing. The exception would be Canvas which is really in a struggling area and will likely help spur more developments like it.

But they’re doing a Expo Center with 1,800 rooms and 600,000 square feet of convention space. The ability to have conventions downtown a block from a transit location is going to be good for Miami. This is going to be good for downtown is to be honest its laughable that a city this size doesn’t have a facility like this already.

It’s a lot harder for a developer to finance something non traditional like convention space. So you’re only going to get lending on something when it is basically a home run. So sure the developers are probably going to make a lot of money. But can you really complain when they are doing something that is good for the overall city?

I guess the answer is would you rather have more condos or an expo center.

marc
6 years ago

Mass transit (Overtown/Lyric) across the street actually.