FIU Study On Ocean Drive Liquor Vote Finds Little Impact

MIAMI BEACH, FL — An FIU study commissioned by the city of Miami Beach found that the proposed Ocean Drive liquor referendum would have minimal impact on city taxes. The study also found that 23 percent of local Miami-Dade County residents surveyed would be more inclined to visit the iconic strip if bars were forced to stop selling alcohol at 2 a.m. The study contradicts earlier findings that estimated Miami Beach could lose as many as 5,500 jobs and millions of dollars in tax revenue.

See also Ocean Drive Liquor Vote Would Kill 5.5K Jobs: Study

The new study, which was released by Miami Beach officials after the close of business on Friday, found that the referendum would only affect eight businesses that accounted for 10 percent of all alcohol sales in this urban resort. The eight businesses generated total alcohol sales of $43,313,519 in 2015-16, according to the study that was performed by FIU's Metropolitan Center, which is part of the Steven J. Green School of International and Public Affairs.

An earlier study commissioned by the Florida Restaurant & Lodging Association found that Miami Beach restaurants, bars and hotels stand to lose more than $340 million each year in sales, while the city would lose more than $19 million in property, resort and sales taxes.

City voters are set to vote on the referendum on Nov. 7.

If approved by voters, the measure would allow commissioners to roll back final alcohol sales at from 5 a.m. to 2 a.m. along Ocean Drive between 5 and 15 Streets. The iconic strip is world famous for its pulsing nightlife but also has been the scene of a number of violent crimes over the years. The referendum would continue to allow indoor sales of alcohol in hotels.

City officials released only the executive summary of the FIU study on Friday and planned to release the complete findings at an upcoming meeting of commissioners on Halloween day.

"Patrons of the eight impacted establishments who wish to continue drinking after 2 a.m. still have 68 establishments that serve alcohol until 5 a.m. within walking distance (either on Ocean, Collins or Washington)," according to the FIU study.

The study also found no correlation between declining entertainment district alcohol sales and hotel room nights sold. "Since the city ended alcohol sales at sidewalk cafes citywide at 2 a.m. in 2015, the total number of hotel room night sales has actually increased over the entire Miami Beach market," the FIU study found, noting that the entertainment district's share of the city's overall hotel, food and alcohol sales was 8.4 percent in 2015-16 and declining.

Only 7 percent of Miami-Dade residents said they would be less likely to visit Ocean Drive if the alcohol sales are restricted. The vast majority of visitors to the area are from outside Miami-Dade County.

"The assumption that early closure of outdoor sales of alcohol will drive customers to Miami or elsewhere is not substantiated by empirical evidence," the FIU study concluded. "Since the city ended alcohol sales at sidewalk cafes citywide at 2 a.m. in 2015, while alcohol sales did decrease in the entertainment district, alcohol sales actually increased in the rest of Miami Beach, resulting in an overall 0.6 percent increase across the city."

Moreover, "the tax impact on the city will be minimal at worst, and is likely to be neutral in light of the fact that patrons will simply consume alcohol at other establishments on Miami Beach," the FIU study found.

Miami Beach Mayor Philip Levine called for the restriction after a series of vicious Memorial Day incidents that marred the holiday weekend.

"Ocean Drive's raucous atmosphere negatively impacts residents and erodes the Miami Beach brand, all year long," Levine said earlier. "I want to bring back Ocean Drive to its glory days, so it can be enjoyed by families and residents."

In recent days Miami Beach Commissioner John Elizabeth Alemán announced that she would oppose the referendum and feared that late-night parties would be driven from Ocean Drive to more residential areas.

"We need REAL solutions to our safety issues on Miami Beach," she wrote in an email to residents. "As your commissioner, I am committed to working with each of you and our police and community partners to draft legislation that addresses crime on every corner of the beach — and won’t cost taxpayers millions of dollars and put thousands of people out of work."

Economist Hank Fishkind whose firm conducted the Florida Restaurant & Lodging Association study predicted that the effects of the referendum would be felt across Miami Beach.

“The ballot referendum which will ban alcohol sales on just a few businesses on Ocean Drive will have far-reaching negative economic effects for Miami Beach taxpayers and businesses," he penned. "After a full economic impact study, we found that direct and cascading revenue losses to local businesses will top $340 million dollars. This loss in sales from tourists will result in millions in lost tax revenue for the city, a significant loss in jobs and lower property values."

Ocean Drive Photo by Paul Scicchitano