Miami Beach Voters Keep Late Night Alcohol Sales

MIAMI BEACH, FL — Miami Beach residents overwhelmingly voted to keep 5 a.m. liquor sales along iconic Ocean Drive in a controversial referendum that was decided on Tuesday. Proponents of the measure, including Miami Beach Mayor Philip Levine, insisted that an earlier closing time for bars on the strip would reduce crime. But one recent study estimated that the city stood to lose 5,500 jobs and millions of dollars in tax revenue had the measure passed.

The vote was 64.7 percent in favor of the measure and 35.29 percent opposed. That translated to 7,635 voters opposed to the measure and only 4,164 voters in favor with all 24 precincts reporting.

The measure would have allowed commissioners to roll back final alcohol sales 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 have continued to allow indoor sales of alcohol in hotels.

An FIU study commissioned by the city of Miami Beach contradicted the earlier study by the Florida Restaurant & Lodging Association but voters were apparently unwilling to risk an annual loss of more than $340 million to restaurants, bars and hotels in this tourist-dependent economy.

“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," said economist Hank Fishkind whose firm conducted the Florida Restaurant & Lodging Association study. "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.”

See also FIU Study On Ocean Drive Liquor Vote Finds Little Impact

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."

But the Florida Restaurant & Lodging Association study found that the proposed change in serving hours is likely to have little effect on crime.

"Research by noted crime expert Ronal Serpas concludes that the city’s crime problems are unrelated to the club operations from 2 a.m. through 5 a.m.," the study reported. "Mr. Serpas determined that the ban is
unlikely to reduce crime in any meaningful fashion."

On the other hand, the study found that the proposed change in liquor sales would negatively affect the city's tourism industry, including:

• There will be cascading losses in sales to nearby hotels and restaurants with an estimated 15 percent drop in Ocean Drive restaurant sales and 10 percent reduction for nearby business sales, resulting in upward of $341 million in lost income to local restaurants, clubs, and hotels.
• The city will see a $19.6 million decline in tax dollars usually paid by tourists.
• The loss of sales and profits realized as a direct result of the ban translates to a loss of some 5,500 jobs in city bars, restaurants and hotels.

The study concluded that the referendum would damage the city's "global reputation as a unique, exciting, fun place to visit and to party late into the night" and found that Miami Beach clubs that would be directly impacted are vital to the area’s reputation and to its economic functioning.

"Essentially, the clubs act as the area’s main attractions and they are the key element that differentiates the area from other beach-oriented communities," the study charged.

Ocean Drive Photo by Paul Scicchitano