Property owners and prospective tenants willing to bring arts-focused, community-centered commerce into the heart of South Beach's storied architectural corridor now have a direct financial incentive to do so — one that could cut their occupancy costs nearly in half for three years running.

The Commercial Lease Subsidy Program is a performance-based reimbursement grant incentive created by the Miami Beach City Commission, via Resolution 2022-32207, that reimburses a portion of expenses related to rent, leasing, mortgage, or real estate taxes for eligible commercial properties within the ADCD Overlay that are leased by a business that promotes the program's purpose.

The City of Miami Beach's Art Deco / MiMo Commercial Character Overlay District — known as the ADCD Overlay — encompasses a geographic area within South Beach containing unique cultural, commercial, and entertainment amenities that are vital to the Miami Beach economy and its tourism industry.

What the Program Pays

The incentive can be substantial.

Participants are eligible to receive reimbursement of eligible paid expenses — rent, mortgage payments, and/or real estate taxes — in an amount not to exceed $2,500 per month or 50 percent of total monthly expenses, whichever is less. The program also provides a waiver of the annual fee associated with a City of Miami Beach business tax receipt for both the tenant business and/or the property owner throughout the three-year program term.

In aggregate, program participants are eligible to receive an award of up to $20,000 annually or $60,000 throughout the three-year program term.

Two Paths to Eligibility

The program is intended to strengthen and transform commercial corridors within the ADCD Overlay, with objectives of encouraging property owners to transition private properties from nonconforming uses to permitted uses and attracting businesses that promote arts and culture.

The city has structured eligibility around two distinct business tracks.

Type 1 — Transitioning Out Nonconforming Uses: The first track targets properties currently occupied by "grandfathered" businesses — operations that were lawful when they opened but are no longer permitted under current zoning rules.

Examples of businesses that potentially operate lawfully today but were prohibited with the enactment of Ordinance 2017-4137 (Art Deco/MiMo Commercial Character and Formula Commercial Overlay District) include check cashing stores, pawn shops, pharmacies, grocery stores, package stores, convenience stores, souvenir and t-shirt shops, tobacco/vape dealers, tattoo studios, and occult science establishments.

To qualify under this track, the commercial activity must undergo a transition whereby the current tenant, at the time of application submittal, is a legal nonconforming business and is replaced with a legally permitted use, with valid and active permitting and licensing for the new tenant.

Type 2 — New-to-Market Arts & Culture Tenants: The second track is reserved for incoming arts and culture businesses.

The city is looking for experiential and artisanal retailers — for example, technology, design, art and/or culture-driven retail and incubator-inspired artisan experiences such as offering patrons the chance to learn how to make or craft their own artistic, decorative, musical, culinary, or sensory product — as well as interactive and activity-based spaces such as social media museums and artistic installations and curated destinations of art, culture, design, recreation, leisure, wellness, and/or amusement.

The new business must be an entity without an existing physical location in the ADCD Overlay, and whose presence furthers the goal of attracting high-quality arts and culture uses into the district. Properties are eligible if the new business already operates in Miami Beach at a physical address outside of the ADCD Overlay.

How to Apply

A pre-submittal conference is a required prerequisite to submitting an application form.

Interested parties should contact the City's Economic Development Department before filing anything official.

An applicant wishing to participate in the program will request and complete a pre-submittal conference, followed by submission of a complete application to the City of Miami Beach.

Once an application is submitted, the review process moves quickly by municipal standards.

Within 30 days of application receipt and initial review, staff will inform the City Commission and schedule an application presentation at the following City Commission meeting. Executive leadership representing the applicant — both property owner and tenant business — is required to participate in person or virtually at the City Commission meeting.

Participants must also meet ongoing obligations to keep receiving funds.

To remain eligible for the lease subsidy program, participants must maintain continued compliance with program requirements and obligations outlined in the participation agreement.

Among the operational requirements:

businesses may seek reimbursement only if their principal business activities are conducted at the subject property, are open to the public, and include daytime operational hours no less than five days a week, with operations commencing no later than 12:00 p.m. on days when the business is operating.

The Bigger Picture

The city is committed to promoting and attracting diverse commercial activities, with a focus on businesses and family-friendly activities that contribute to the city's cultural arts legacy.

The program's mission is to attract wholesome and community-focused spaces that enhance both the visitor experience and resident quality of life.

The Commercial Lease Subsidy Program is one of several current economic tools, alongside the Facade Improvement Grant, Job Creation Incentive Program, and Expedited Plan Review Program, all designed to support business growth, improve commercial corridors, and attract industry investment.

Businesses and property owners interested in the program can reach the Economic Development Department by email at [email protected] or by phone at 305-673-7572. Applications are submitted through the city's online portal at MBBiz.com.