C7G - Approve Playboy Job Incentive

Resolutions - C7 G

C7 G A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCE COMMITTEE AND APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH PLAYBOY ENTERPRISES INTERNATIONAL, INC., FOR PARTICIPATION IN THE JOB CREATION INCENTIVE PROGRAM, IN AN AMOUNT NOT TO EXCEED $200,000 PER YEAR, FOR UP TO FOUR (4) YEARS, SUBJECT TO ANNUAL FUNDING APPROPRIATION AND APPROVAL DURING THE CITY'S BUDGETARY PROCESS FOR EACH FISCAL YEAR DURING THE TERM OF THE AGREEMENT. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends the approval and authorization of the City Manager to execute an agreement with Playboy Enterprises International, Inc. (“Playboy”) for participation in the Job Creation Incentive Program, in an amount not to exceed $200,000 per year, for up to four years, subject to funding appropriation and approval during the City's budgetary process for each fiscal year during the term of the agreement.

BACKGROUND/HISTORY

The Economic Development Department is dedicated to fostering a robust economy that stimulates balanced growth by connecting business, community, people and jobs through business assistance and resources, corridor development and redevelopment, real estate, and creating a diverse economy and resilient community.

On March 17, 2021, the Mayor and City Commission adopted Resolution 2021-31620, establishing the Job Creation Incentive Program (“JCIP”)/(the “Program”). The Program mission is to attract and grow targeted industries in Miami Beach by providing performance-based incentives for companies in technology, financial services, and headquarters operations relocating to or expanding in the City of Miami Beach.

The JCIP affords the city a greater competitive advantage and ability to leverage existing incentives from the State and County. The purpose of the JCIP is to strategically attract new and expanding businesses within the City of Miami Beach and to diversify the economy by strategically increasing the number of quality, high-wage jobs in Miami Beach. Program participants must create or relocate a minimum of ten (10) new, fulltime equivalent jobs with average annual wages meeting or exceeding 125% of the State of Florida or Miami-Dade County average wage, whichever is higher, at the time of application. After each annual performance period, participants are eligible to receive an incentive based on number of new and relocated employees with additional incentives for participants locating in North Beach, and those hiring Miami Beach residents and employees with education or training received at local institutions.

At that time, new-to-market companies that were recipients of the incentive were eligible for an award of up to $60,000 per year for four (4) years. Expanding companies were eligible for an award of up to $60,000 per year for three (3) years.

On April 6, 2022, the City Commission authorized an amendment to the Program to encourage small and startup businesses to participate and to develop a greater focus on subcategories within the targeted industries including cryptocurrency, blockchain, Web3, decentralized finance, sustainability, resiliency, hospitality, tourism, health and wellness, and arts and culture. As outlined in the Program guidelines, recommendations for award must be reviewed by the Finance and Economic Resiliency Committee (FERC) and approved by the City Commission.

On May 21, 2025, the City Commission authorized amendments to the JCIP to further attract new and expanding businesses to Miami Beach. The revisions modify Program eligibility requiring applicants to create or relocate a minimum of 20 new full-time equivalent jobs in Miami Beach, with average annual wages that meet or exceed 120% of either the State of Florida or Miami- Dade County average wage (currently $69,494 and $77,694, respectively, per the U.S. Bureau of Labor Statistics), whichever is higher, at the time of application.

The amended Program establishes a maximum award of $200,000 per year, for up to four (4) years for a single new business. In addition, the Commission approved increasing the FY 2026 JCIP budget line item by $400,000.

On September 3, 2025, the Finance and Economic Resilience Committee reviewed Playboy Enterprises International Inc.’s JCIP application and recommended Commission approval.

ANALYSIS

Established in December 1953 in Chicago, by Hugh Hefner, as a lifestyle magazine, Playboy is a global media and leisure company connecting consumers with products, content, and experiences that help them lead more fulfilling lives. Playboy, the consumer brand, is one of the most recognizable brands in the world, with products and content available in approximately 180 countries.

Today, Playboy operates as a digital lifestyle brand that maintains collaborations with artists, models, and partners across media and consumer markets, and has diversified into luxury goods, digital platforms, and global licensing. Playboy remains an internationally recognized enterprise with a portfolio that spans publishing, entertainment, and consumer products.

The company is projecting a significant capital investment of $4,818,900 in its relocation to Miami Beach, with the landlord contributing $2,420,251 toward the planned improvements. The relocation project is scheduled to begin with design and permitting from July 1, 2025, through January 1, 2026, followed by construction commencing in early 2026. Completion of the buildout and full move-in is anticipated by September 30, 2026.

Playboy currently employs 68 full-time staff company-wide, and projects creating 20 new full-time jobs in Miami Beach, within the first 12 months of operations. Seventy-five new positions are anticipated over the four (4) year incentive period. These jobs represent highly compensated

opportunities, with average annual wage projected at $175,021, well above state and county benchmarks.

As a global consumer lifestyle brand, Playboy markets its portfolio through a wide range of licensing initiatives, direct-to-consumer products, Playboy magazine, digital subscriptions and content, and online and location-based entertainment. The relocation of Playboy’s headquarters will bring high-wage employment opportunities to the City and elevate Miami Beach as a destination for world-class media, culture, and creative business activity.

PLAYBOY ENTERPRISES INTERNATIONAL INC: Project Summary Industry and business services Media Location 1691 Michigan Ave, Miami Beach, FL 33139 Type of Office Headquarters Lease Term 139 months Capital Investment $4,818,900 ($2,420,251 to be provided by landlord) New or Relocated Jobs 75 projected over 4 years Average Wages $175,021 Estimated annual award amount $200,000 Estimated final award amount $800,000 (over 4 years) Economic Impact Analysis (IMPLAN) See Exhibit A

FISCAL IMPACT STATEMENT

The fiscal impact to the City is potentially up to $200,000 per fiscal year for four (4) years, or $800,000 over the four-year Program term, subject to funding appropriation and approval during the budgetary process for each fiscal year throughout the term of the agreement.

Does this Ordinance require a Business Impact Estimate?

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends the approval and authorization of the City Manager to execute an agreement with Playboy Enterprises International, Inc. (“Playboy”) for participation in the Job Creation Incentive Program, in an amount not to exceed $200,000 per year, for up to four years, subject to funding appropriation and approval during the City's budgetary process for each fiscal year during the term of the agreement.

Exhibit A: Economic Impact Report Exhibit B: JCIP Application

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Economic Development

Sponsor(s)

Commissioner Joseph Magazine

Co-sponsor(s)

Condensed Title

Approve JCIP Award and Agreement, Playboy Enterprises (JM) ED