Inspector General audit flags $661,000 discrepancy in Miami Beach Marina lease accounting; committee keeps lease extension discussion open

An audit by the City of Miami Beach Inspector General, presented to the Finance and Economic Resiliency Committee on May 7, identified a $661,000 difference for the audit year February 2022 related to revenue calculations under the Miami Beach Marina lease. The Committee heard the audit findings, received a detailed response from the marina operator’s counsel, and did not approve any lease extensions at the meeting; instead the Committee asked staff to continue negotiations and to return when there is an agreed path forward.

Inspector General Joseph Santorino said his office’s audit — which began in February 2023 and concluded with a report issued on April 17, 2025 — identified several contract-compliance questions and what the Inspector General described as a substantial assessment from the city’s perspective for the single audit year. Santorino said his office relied upon the city attorney’s contract interpretations for disputed terms and that the $661,000 figure reflects the Inspector General’s interpretation of amounts due for that year; he also noted the audit was contentious and that some requested records were initially difficult to obtain.

Representatives for Suntex — the marina tenant — disputed the audit’s conclusions. Michael Grieco, representing Suntex, said the lease is a 1983 agreement with many amendments and that, since Suntex assumed the lease, city revenues from the marina had increased (Suntex reported average annual payments of about $2.7 million since 2019 versus about $1.2 million from the prior operator). Grieco said Suntex provides annual audited financial information and that the company’s outside counsel had provided a 10-page response challenging the Inspector General’s findings.

City attorneys said they had reviewed the audit and that the office saw support in the lease for the Inspector General’s interpretation, but they also emphasized that conversations with the tenant and further legal and financial review were warranted before any negotiation or settlement. The committee kept a previously filed directive in place to negotiate both short-term (less than 10 years) and long-term (10 years or more) extensions and to present draft term sheets, while staff and the City Attorney’s Office follow up on the audit findings and the vendor responses.

No vote was taken to extend the lease. The committee heard and retained the item; staff will return as discussions and any negotiation progress. Commissioners urged timely review because the audit raises material questions that could affect negotiations. The committee did not make findings about wrongdoing; it directed staff to prioritize legal and financial review and to provide a path forward to the Commission.