By Coral Gables Gazette staff

The special consultants hired to help determine whether the City of Coral Gables should reinstitute a special taxing district in its central business district acknowledged this week that there are still significant questions about whether such a district would succeed.

The admission came from Denver-based Progressive Urban Management Associates (PUMA) during a presentation to the city’s Economic Development Board on February 4, after a board member asked how the consultants envisioned the process playing out locally.

Brad Segal, PUMA’s president and founding partner, said the firm looks for two key factors when evaluating whether a business improvement district, or BID, will work. The first is whether the district’s services can enhance property values and make the downtown more competitive with other urban centers in the region.

On that front, Segal said Coral Gables checks the box.

A new district, which the city is referring to as a “downtown partnership,” could strengthen marketing, events, cleanliness and overall downtown appeal, he said, potentially positioning the city more competitively against nearby commercial hubs.

But the second factor, Segal cautioned, remains unresolved.

“The other thing we look for I would characterize as political will,” Segal said. “Is there a willingness by property owners and the enthusiasm by property owners, in particular, and businesses to support the concept? Is there cohesion between local government and the downtown business community? And I would say on that one, the jury’s out.”

What the proposed district would look like

PUMA presented an initial study area for the proposed district that would be larger than Coral Gables’ former BID. The footprint would extend south to The Plaza development, with defined eastern and western boundaries and residential neighborhoods bordering the district to the north near Alcazar Avenue.

Within that area, consultants proposed dividing the district into three zones based on the level of benefit and intensity of services.

Miracle Mile would comprise Zone 1, which PUMA said would receive the greatest concentration of services and the most direct benefit. A single block of Giralda Avenue would form Zone 2, while the remainder of the district would be designated Zone 3.

Because benefits would vary, Segal said assessments would be weighted accordingly, using what he described as a “4-2-1” model. Under that approach, Miracle Mile properties would be assessed at four times the rate of the broader district, Giralda at twice the rate, and Zone 3 at the base level.

Budget options and proposed assessment rates

Consultants outlined three options for property owners and city leaders to consider. Option A would be to do nothing, avoiding new assessments, legal processes and a formal vote, but also forgoing any guaranteed supplemental services.

The other two options would create a new assessment district at different funding levels. The first would establish a $1.75 million annual budget, compared to roughly $1 million under the former BID. That budget, Segal said, could support destination marketing, events and programming, enhanced cleaning and landscaping, and expanded economic development efforts.

Under this option, PUMA recommended that the city continue its existing $500,000 block-by-block maintenance program to complement and leverage the new district’s services.

Assessments would be calculated based on a combination of lot size and building square footage, a method Segal said better reflects how benefits are experienced, particularly on lower floors. Proposed annual rates would be approximately 30 cents per square foot on Miracle Mile, 15 cents on Giralda, and 7.5 cents elsewhere in the district.

A second, more ambitious option would raise the budget to $2.75 million annually, allowing for more sophisticated destination marketing, expanded events, public art, gateways, signage and other physical improvements. Assessment rates under that scenario would rise to about 48 cents per square foot on Miracle Mile, 24 cents on Giralda, and 12 cents in the rest of the district.

Segal noted that while some Miracle Mile rates could be slightly higher than before, they would still be lower than the peak assessments charged when the former BID was not renewed. Because of its size, the Plaza development would likely become the district’s largest single ratepayer.

Consultants still looking for a champion; plan to meet with largest property owners

Segal said one of the biggest unanswered questions for the proposed downtown partnership is the absence, so far, of clear private-sector champions willing to lead the effort. Drawing on PUMA’s experience helping establish roughly 90 similar districts nationwide, he noted that the most common reason the firm advises communities not to move forward is a lack of strong business or property owner advocates.

“These districts are successful when there are champions who are going to move it and carry it,” Segal said, emphasizing that while consultants and city staff can guide the process, the financial burden ultimately falls on property and business owners. “It’s not our money. It’s the property and business owners’ money.”

Segal said the challenge is particularly significant in Coral Gables because creating a new district would require approval from roughly 300 property owners. At present, he said, that level of organized private-sector leadership has not yet emerged.

As part of the next phase of outreach, PUMA plans to meet with several of the largest property stakeholders in the downtown area. Segal said the owners of The Plaza Coral Gables development have already been engaged and have expressed support for the concept, noting they see the initiative as a way to strengthen the surrounding district and enhance their investment. He added that consultants also plan to reach out to Terranova Corp., a major property owner along Miracle Mile, along with other key stakeholders they have not yet engaged, in an effort to determine whether broader support can be built.

Findings from stakeholder meetings

Amanda Kannard, PUMA vice president and managing partner, said the firm has conducted extensive outreach to gauge support. Consultants have spoken with more than 70 downtown stakeholders — including property owners, business owners and residents — through site visits, virtual meetings and three in-person sessions held February 3.

An online survey will remain open through the end of February as part of an effort to further measure political will.

Kannard said stakeholders consistently cited downtown’s cleanliness, safety, walkability, strong dining scene and overall prestige as key strengths. Mobility options, including the trolley, valet services and ride programs, were also widely praised.

At the same time, several challenges emerged. Business owners raised concerns about navigating city permitting processes and what they described as excessive red tape. Others pointed to the lack of a unified downtown identity and marketing voice, particularly when compared with competitor districts like Coconut Grove.

Participants also noted gaps in the retail mix, including a need for stronger anchor stores to drive foot traffic, as well as confusion around parking and access despite the availability of multiple options.

Based on those discussions, PUMA identified potential focus areas for a new district that include marketing and communications, business support, events and programming, public realm improvements, parking and mobility management, and enhanced cleaning services — if sufficient support materializes.