Miami-Dade Approves $149M Tax District for Sunset Place Redevelopment

• Address: 5701 SW 72nd Street, South Miami, FL, at the former Shops at Sunset Place site.
• Miami-Dade County commissioners unanimously approved a $149 million Community Development District (CDD) to finance infrastructure for the property's redevelopment.
• Midtown Development, led by Alex Vadia, is proposing a major mixed-use project with 1,513 residential units, more than 200,000 square feet of retail space, and a 1,300-seat movie theater.
• The redevelopment could include towers reaching 33 stories, with architecture by Heatherwick Studio and ODP Architecture & Design.
• The special district will finance infrastructure such as a $49 million parking garage, $41.7 million chilled-water facility, roads, utilities, landscaping, stormwater systems, and signalization.

What the New Tax District Will Fund

Miami-Dade County has approved a special taxing district that could provide up to $149 million in infrastructure financing for the redevelopment of Shops at Sunset Place in South Miami. The Downtown SoMi Community Development District covers approximately 10.16 acres bounded by US 1, Red Road, Sunset Drive and Southwest 58th Avenue. The district can issue tax-exempt bonds to pay for infrastructure, with property owners within the district responsible for repaying the debt through special assessments. Importantly, the county says the financing will not be a county obligation and will not be paid from Miami-Dade's general fund.

What Infrastructure the Redevelopment Needs

The largest proposed expense is a $49 million public parking structure, followed by an estimated $41.7 million chilled-water main facility. Other infrastructure funded through the district could include telecommunications, security and lighting, road improvements, traffic signalization, landscaping, stormwater systems, and water and sewer infrastructure. Miami-Dade County is expected to own and maintain several of these infrastructure improvements. Commissioner Raquel Regalado, who sponsored the measure, described the district as an infrastructure-focused financing mechanism intended to support the property's transition from primarily commercial use to a much larger mixed-use development.

What Midtown Development Is Planning

The redevelopment plan from Midtown Development would dramatically change the existing Sunset Place property. The proposal calls for 1,513 residential units, more than 200,000 square feet of retail space, and a 1,300-seat movie theater. Some of the proposed towers could rise as high as 33 stories, creating a substantially denser development than the existing shopping center. The project is being designed by London-based Heatherwick Studio in collaboration with ODP Architecture & Design. Plans also call for improvements involving the nearby South Miami Metrorail Station, City Hall and a library, although those components are not included in the approved CDD ordinance.

What the Assessments Could Mean for Future Owners

The infrastructure financing will be repaid through assessments on properties inside the district. According to project filings, annual assessments are estimated at approximately $2,475 for condos smaller than 851 square feet, $3,725 for units between 851 and 1,750 square feet, and $4,975 for larger residences. Over the anticipated 30-year bond term, the capital portion would range from roughly $51,750 to $103,500 per unit. Buyers would have the option to prepay the assessment at closing. These charges would be separate from standard city and county property taxes, and homestead exemptions would not reduce the CDD assessments.

What the Redevelopment Could Mean for Sunset Place

Sunset Place opened in 1999 on the former site of Bakery Centre. The shopping center once attracted major tenants and entertainment destinations including an AMC movie theater, Virgin Megastore, Barnes & Noble, Rainforest Café and LA Fitness. The property has struggled with declining foot traffic and vacancies in recent years. Midtown Opportunities, a sister company of Midtown Development, acquired the property for $65.5 million in late 2020, significantly below its previous sale price. The proposed redevelopment would replace the aging retail-focused model with a much denser mix of housing, retail and entertainment. If completed as envisioned, the project could become one of South Miami's most significant redevelopment efforts in years.

What Happens Next With the Sunset Place Plan

The approved CDD is scheduled to take effect September 11, unless Miami-Dade Mayor Daniella Levine Cava vetoes the measure. Her administration recommended approval, making a veto unlikely. The county's approval clears an important infrastructure-financing hurdle, but the larger redevelopment still has additional steps ahead before construction can move forward. The next stages will determine how the proposed residential towers, retail space, theater and surrounding public improvements ultimately take shape.