The Real Deal Miami

Miami Beach systematically failed to collect developer fees

The city lost out on nearly $19M in “fee in lieu parking” fees

September 17, 2014 02:15PM

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Miami Beach City Hall

Miami Beach City Hall

Over a 25-year period, Miami Beach city staffers failed to collect nearly $19 million in fees from developers — fees earmarked for the city’s parking facilities.

City administrators uncovered the problem through an eight-month internal review, according to the Miami Herald.

Since 1989, the city has operated a “fee in lieu parking” program, which allows developers to pay a one-time fee for each parking space they’re not able to provide at a project.

That fee, currently set at $35,000 per space, is then supposed to be used to improve the city’s parking facilities.

But the City Commission uncovered issues with billing, accounting and inspection of properties in the program, leading to the $18.9 million loss.

“Staff has conducted extensive research and has had to reconstruct the history for most of the accounts evaluated,” the memo states. “As new details come to light and additional information is received the estimated receivable amount may change to include other projects identified at a future date.” [Miami Herald]Christopher Cameron

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