Saturday, June 15, 2013

How Much Does It Cost To Open A business In North Bay Village?


How much does it cost to open a business in North Bay Village? On our last commission meeting of June 11, 2013 approximately at 8:30 pm the section for Good & Welfare was opened.  Some residents expressed outrage for the legal and planning charges racked up by Captain Joe’s and the Ski Rental business that opened up on the Marina by Harbor Island. Captain Joe’s owner pleaded with the commission to look into the $ 16,000.00 in legal and planning fees under the Recovery Ordinance for North Bay Village. The Ski Rental Business fees according to what we heard were $ 3000.00.  These charges were not expected or imagined by the new business entrepreneurs.

I am not a lawyer or a planning and zoning expert; however I will attempt to explain it as best as I can.  Feel free to correct or add anything that you feel is missing.  The way the ordinances are written, anyone wishing to open a business in North Bay Village cannot plan for the costs.  Besides the permits and licenses, all documents are to be reviewed by our legal department and planning and zoning department. On the surface nothing appears to be wrong with this process.  

Here is the problem; these fees and charges are not set in stone or scheduled.  The business owner surrenders all the documents and requisitions, opens an escrow account for the village to draw from as the charges are calculated.  When the balance is depleted, the business owner is contacted and is asked to replenish the account otherwise nothing goes forward. Please understand that this is perfectly legal, it is the way the rules are written; no wonder it is so hard to attract businesses to North Bay Village! The charges are calculated by hours spent on any particular task; research, reviewing, verifying, variances etc.

In this process there maybe duplication by the legal department and/or planning and zoning; but who cares; the business owner will pay! There is no warning nor is it written in our user unfriendly web site…that is a problem all on its own. In other more successful cities these charges are pre-calculated and transparent for the investor of a new business. Think about it. Legal is researching and verifying a document for which they don’t have the answer and they need to review something that is tucked away at a warehouse.  I am been ridiculous but follow me. It took hours and hours to finally find the document.  After 50 hrs, the document is found. Legal bill 50 hours times their going rate. Let’s say $ 250.00 per hour that’s a $ 12,500.00 charge. The village under the cost recovery ordinance rule or whatever it is called bills the unsuspected new business owner that amount. Heart attack in the making! This needs to change to a set tariff and a charge for each particular document. Planning and Zoning along with Legal costs that are fixed and set. Fair and Balance to all parties concern. So, How Much Does It Cost To Open A Business InNorth Bay Village? We Honestly Dont Know!

Honestly opinionating!

Putting North Bay Village First!

Mario Garcia

June 15, 2013

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