Moving In Miami: A Transit-Oriented Initiative That Will Forever Change Downtown Miami
“What we’re increasingly seeing,” began Eileen Higgins, Miami-Dade County Commissioner for District 5 (which includes downtown Miami and nearby neighborhoods), “is that the promise of new residential development in downtown and Brickell is only partially fulfilled. People want to live with the convenience of downtown, the lack of traffic, the walkable city dynamic, but it’s impossible to do so for long once those families have children who need to go to school and have access to other all-ages resources. My role as a government official is to make sure [Miami] is a good place for everyone to live. Right now, our average median income is among the lowest in the country at the same time our costs of housing are near the top, and continuing to rise. We have to close that gap.”
Released for the Request for Qualifications (RFQ) only a day ahead of the conference, the county’s plan to redevelop 28-acres of county-owned land near the Government Center metrorail station and the Brightline rail station is to include a public middle school, a new home for History Miami museum and the main Miami-Dade County Public Library, solutions for ride-share traffic, retail, and a mix of workforce, senior, and market-rate housing.
Eulois Cleckley, the Director & CEO of Miami-Dade County’s Department of Transportation and Public Works underscored the importance - and exciting possibilities - of this type of project. “When you look at cities like Denver, Oakland, and London, you see the tremendous positive impact that integrated public transportation makes on that city’s overall prosperity. When you look at Miami, people are currently spending close to 50% of their disposable income on commuting. Compare that to Oakland, which is a similar city in size and structure and it’s 38% because public transportation in off-setting that expense.” Cleckley then highlighted that demand for public transportation is high in Miami, currently at 86% of pre-pandemic ridership even though other cities across the nation are still at 60% or lower. “The idea that public transportation is a social service is changing,” he added. “It’s actually a consumer good. With public transportation effectively lowering both the time and cost of commuting, Miami sees strong, sustainable growth. Without it, we actually limit how far the city can grow because we will reach critical mass on roadways.”
John A. Buck II, Chairman and Chief Executive Office of The John Buck Company agreed, saying, “This is so vital to the central business district of Miami, which is something real estate buyers and tenants all want. This city needs more connectivity and transportation and is fortunate enough in this stage of its growth to be able to improve that in a way few cities ever get the chance to.” He was also quick to point out that public transportation need not be solely functional; it can also enhance the cultural identity of an area. Examples included the San Francisco transportation center, the Harry Weiss subway stops in Washington, D.C., and the Centennial Yards in Atlanta. All of these destinations weave transportation into the fabric of the community to become seamless parts of day-to-day life. Cleckley then cited how the SMART expansion of the MetroRail system is already doing that in Miami, with service now directly to the airport, and various stations being updated to integrate with the Brightline rail service to Broward and Palm Beach counties (Orlando service is expected to come online in late 2023 or early 2024).
Susan Wachter, Professor of Finance at the Wharton School at the University of Pennsylvania, then led the panel through a discussion of how creating a more easily trafficked business destination with a captive resident population provides economic stability for all businesses in the area, more job opportunity (and security) for those living and/or working in the area, and better protection against rising housing costs as city residents no longer have to face relocating simply for the sake of school or family-oriented amenities.
Wachter also posed a question about why projects as ambitious as the downtown Miami redevelopment plan are financially feasible. “Why should municipalities or governments, or developers for that matter, seek out projects of this kind? Where’s the financial upside in what will most certainly be an expensive undertaking?” The panelists each responded on various benefits such as county-owned land generating revenue for the county through lease-hold agreements, while also reducing land acquisition costs for developers. “With lease-hold agreements like we’re doing with publicly owned land, it’s a win-win situation. There is less initial investment required of investors and developers, the land becomes a revenue-producing asset for the county, and there are a number of federal programs and subsidies to offset what would normally be market-rate housing in favor of a more blended income stream.” Adding to that thought, Buck reframed perspectives from a developer’s side, noting that workforce housing is designed to suit those who earn 140% of an area’s average median income. Depending on age in Miami, that includes households earning between $112,000 and $151,000 per year, which equates to monthly mortgage or rental rates ranging from $2,500 to $4,500 per month. “That’s certainly within the realm of’ profitable’ for developers. Remember, a 7% return is considered realistic. If you’re simply responsible about how you approach a project, that figure is attainable and the community benefits as well.”
“The popular saying is transit-oriented development,” said Higgins, “but I prefer to think of it as building transit-oriented communities, because this isn’t simply development for development’s sake, but a true re-shaping of how we live, work, and exist in our neighborhoods. That’s not exclusive to the suburbs, it can, and needs to happen in downtown destinations as well.”
