Lincoln Road is one of my favorite parts of Miami Beach. Supposedly the pedestrian-only street attracts some 11 million visitors a year. But I have noticed that the street has lost some of its mainstays to areas such as Wynwood. This is probably why the city and local property/business owners struck a deal this past summer to makeover the street based on a design by Field Operations.

The deal works like this: The City of Miami Beach is going to pay for the entire US$67 million makeover. This money will come from city and county taxes, as well from bonds. In return, property owners in the Lincoln Road Business Improvement District (BID) have agreed to tax themselves an additional 25% in order to pay for promoting and programming the street.

Obviously everyone believes that they will come out ahead as a result of this makeover. An improved Lincoln Road means more foot traffic, more sales, and more tax revenue. There's also talk of expanding the boundaries of the BID, which would generate additional funds. Right now the district is bounded by Alton Road on the west and by Washington Avenue on the east.

For those of you who aren't familiar with Business Improvement Districts, they are essentially defined areas where additional taxes are levied in order to fund projects and improvements that help overall economic development within the district. It is a structure that is used all around the world and it is one that was actually pioneered here in Toronto.

Here we call them Business Improvement Areas, and the first ever was the Bloor West Village BIA, which was established in 1970. There are now 83 BIAs in the City of Toronto. The first BID in the United States was the Downtown Development District in New Orleans. It was established in 1974. There are now over 1,200 across the U.S.

If you'd like to learn more about the improvements planned for Lincoln Road, here's a copy of the master plan that was submitted to the City of Miami Beach's Historic Preservation Board. The link is from The Next Miami.

Rendering: Field Operations

This past weekend I was in a condo building here in Toronto with large signs in the elevator saying, "No Short-Term Rentals Including Airbnb Are Permitted. Trespassers Will be Prosecuted." It was the first time I had seen anything like this, but it immediately signaled to me that the building must be having a problem with short-term rentals. Why else would you deface the elevators? There are some buildings that allow short-term rentals, but most don't.

However, over the last few years we have started to see purpose-built short-term rental buildings. In some cases, existing apartments buildings were "converted", as was the case with Niido's two properties in Nashville and Orlando. Here tenants in the building can rent both unfurnished and furnished apartments and then rent them out on Airbnb up to a maximum of 180 days per year. To date, I think these are the only two properties to use the "Powered by Airbnb" moniker, but more are on the way.

The developer behind Niido -- Newgard Development Group -- recently launched a new Powered by Airbnb brand called, Natiivo. This one looks to be focused on for sale product, with two upcoming projects in Austin and Miami. Both projects will have hotel licenses in order to avoid any regulatory risk going forward. But this makes me wonder how materially different this model is from the condo-hotels we're already familiar with.

For landlords and developers, the goal is obviously to maximize rents and prices. Allowing (or explicitly encouraging) residents to rent out their place and earn some extra cash, should help with that. And given the way I started this post, we also know there's a desire to do this, particularly in places with strong tourist demand like in Nashville and Miami. But the reviews are mixed. Not everyone wants to live in a hotel. But then again, not everyone wants to co-live. To each their own.

I have a large, and growing, stack of books sitting beside my bed. It is a symptom of my interest in reading exceeding my actual capacity to read, given all the other things I'm doing. However, summer is a good time to get caught up and over the long weekend I did finish reading, The Global Edge: Miami in the Twenty-First Century. It was great, and so now I can confidently recommend it to all of you.

The most interesting storyline for me was the leading role that "pre-Mariel" Cubans (more on this below) played in transforming Miami from a winter destination to an emerging global city. According to 2015 figures, the City of Miami's population is 70% Hispanic, of which 34% are Cuban. About 70% of the city's population speaks Spanish at home. And only about 11.9% of the population is white (non-Hispanic).

But the bit that really intrigued me was the distinction that Alejandro Portes and Aerial C. Armony make between the "pre-Mariel" Cubans who arrived in the 1960s and 1970s -- many of whom became successful entrepreneurs -- and the "Marielitos" who arrived in the 1980s onward. This latter group has, on average, not seen the same kind of financial successes as its predecessors.

The other thing that I think many of you will appreciate is that the authors recognize that all urban phenomena are inherently spatial. And so almost everything they discuss is described in terms of its physical manifestation within the city. Perhaps the most stark is the region's growing inequality. Wealth along the water; poverty inland.

Here's some more information on the book if you're interested.

Photo by Alejandro Luengo on Unsplash