Miami-Dade commissioners voted 12-0 on Sept. 1 to create a special tax district funding $149 million in infrastructure at the Shops at Sunset Place in South Miami.

The new Downtown SoMi Community Development District, or CDD, covers 10.16 acres bounded by U.S. 1, Red Road, Sunset Drive and Southwest 58th Avenue. It will fund infrastructure through tax-exempt bonds repaid by assessments on property owners inside the district. No Miami-Dade general fund dollars are involved, according to county records.

For Coral Gables residents, the project next door means 1,513 new residential units and towers up to 33 stories rising along the U.S. 1 corridor near the South Miami Metrorail station.

Sponsor Modeled District After Midtown CRA, but More Restrictive

Commissioner Raquel Regalado, who represents District 7 and sponsored the ordinance, told Florida Politics after the Sept. 1 vote that she modeled the CDD after the Midtown Community Redevelopment Agency but made it more restrictive.

"It really is an infrastructure CRA that has a transit component. It doesn't have housing. It doesn't have a community benefit … the infrastructure is the community benefit," Regalado said.

Parking Garage and Chilled Water Facility Top Spending List

The biggest line item is a $49 million public parking garage. A chilled water facility accounts for another $41.7 million. The remaining funds cover roadways, signalization, sidewalk widening, stormwater systems, water and sewer upgrades, telecommunications, security and lighting. Miami-Dade will own and maintain the water and sewer systems.

Developer Plans Residential Units, Theater and Retail on Former Mall Site

Developer Alex Vadia's Midtown Development plans to replace the largely vacant mall with the residential units, a 1,300-seat movie theater and more than 200,000 square feet of retail. London-based Heatherwick Studio and ODP Architecture & Design are the project architects, according to Florida Politics.

Midtown Development's sister company, Midtown Opportunities, bought Sunset Place for $65.5 million in late 2020. Vadia said in 2021 that occupancy sat at just under 60%.

Future Condo Owners Face Added Annual Assessments

Future condo owners will pay annual CDD assessments on top of regular property taxes. Estimates peg those at $2,475 for units under 851 square feet, $3,725 for units between 851 and 1,750 square feet, and $4,975 for larger units. Over the 30-year bond term, the capital share alone runs between roughly $51,750 and $103,500 per unit. Buyers can prepay at closing. Homestead exemptions will not reduce the assessments.

Ordinance Took Nearly Five Months to Pass

The ordinance took nearly five months to pass. Commissioners approved it on first reading April 21 but deferred it June 2. The item was not considered July 21. The substitute version adopted Sept. 1 swapped one name on the CDD's five-member Board of Supervisors, replacing development executive Dean Warhaft with Gustavo Cabrera, principal of Evergreen Venture Group and a former MasTec executive.

Regalado also said the project includes redevelopment of the South Miami Metrorail Station, City Hall and a nearby library, though those components do not appear in the ordinance text.

City and County Finalize Agreement; Project to Span Up to 20 Years

South Miami Mayor Javier Fernandez told the Miami Herald in July that the city had finalized a formal agreement with the county. "The framework is now in place for them to begin," Fernandez said at the time. The Herald reported the project is planned to be built in phases over up to 20 years, with developers required to build streets and sidewalks throughout the property first.

Ordinance 26-66 takes effect Sept. 11 unless Miami-Dade Mayor Daniella Levine Cava vetoes it. Her administration recommended adoption.