Miami Beach modern; Miami Beach has gone through a series of transformations over the decades, from glamour days in the 1950s to retirement enclave in the 1970s. Today it has become an affluent community, rich in the arts, appealing as much to businesses as it does to tourists

South Florida CEO, April, 2004 by Rochelle Broder-Singer

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"It would be something internationally important, that would put the city back at the center of a lot of attention," says architect Bernard Zyscovich, who drew up the master plan for the area. "A place will become trendy and then it will fall off the map ... Frank Gehry doing the building will take Miami Beach to another level, and it will be good for another 10 years or so."

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Close by, developers have already announced a condominium--Artecity--that is being marketed for its proximity to the Bass Museum and the Miami City Ballet, both located in the Soundspace neighborhood. It's one example of how tourists and residents are beginning to look at the city as an arts destination, particularly after the success of the Art Basel gallery shows the past two years. "Art Basel is a unique asset that we have that no other city in the country has," says businessman Ricky Arriola, a member of the Miami Beach Cultural Arts Council board of directors. "It brings a very high-end collector to Miami Beach."

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To improve its cultural base, Miami Beach has made $50 million in capital improvements to its facilities in recent years. Still, some of those facilities will experience competition from Miami's Performing Arts Center when it opens across the bay. The 3,000-seat Jackie Gleason Theater of the Performing Arts will find itself the low-cost alternative, says city manager Jorge Gonzalez, and is already positioned in a decidedly retro niche--as a television production venue.

The success of Miami Beach on so many fronts--tourism, residential development, business growth - has inevitably engendered some conflict. "A city like ours, that is a little less than 100,000 in terms of population but can swell to over 250,000, that creates a lot of challenges," says Mayor David Dermer. Dermer and Gonzalez try to remind residents and tourism-related businesses that their relationship is symbiotic. "I struggle with trying to impress upon our residents the significant impact and value added that the tourism industry brings to our community. It represents nearly $16 million per year into our general fund," says Gonzalez. "And every day I tell the tourism community how important our residential community is to us, because they represent 45 percent of the city's budgets."

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All those people pouring into a 7.5-square-mile strip of land have left the city scrambling to keep its infrastructure on a par. It is currently in the second year of a five-to seven-year, $500 million, capital improvement plan that covers everything from parks to sewer systems. Financed by a General Obligation Bond. Gonzalez says the spending comes to around $100,000 per Miami Beach resident.

For businesses, traffic remains a top concern. "All you need to do is drive from my house on 56th Street to South Beach, and you realize when you cross Dade Boulevard, that you are stuck," says Michael Milberg, president of consulting firm Big Dog Ventures, and chairman of the Miami Beach Chamber of Commerce. "The total traffic has to do with concurrency and approval of future development, which has an economic impact on the business growth of our community."