Loading...
HomeMy WebLinkAboutSubmittals at PZAB MtgsS 7ecord November 12. 2020 Miami City Commission City Hall 3500 Pan American Dnve Miami, FL 33133 Re: Miami Design District Dear Commissioners. Miami Economic Associates. Ir^c. (MEAT) has performed an analysis to estimate the key economic. fiscal and public benefits that have been generated by the subject protect to date for the City of Miami as well as Miami -[lade County and the Miami -Dade County Public School District- The analysis we performed was commissioned by Miami Design District Associates (Del), LLC (MDDA) to provide context for the City as it considers proposed amendments to the protects special area plan (DO SAP) and modifications to its Regulating Plan and Concept Book and the Development Agreement between the City and MDDA (Development Agreement) The materials that follow provide our estimates of the key economic, fiscal and public benefits that Miami Design District has generated to date. The remainder of this letter is organized as shown below: section Keay Fiindin�� — Economic _Benefits . Fiscal l3enefita _� Public Beriefitt Closing__ - Page 4 6861 S.W. 89- Terrace Miami, Florida 33156 Tel: l3051 66$-0223 Fax: (8661 496-G167 Email: meainkdbeiisDuth-n&t Miami City Commission November 12. 2020 Page 2 Key Findings The key findings of the analysis performed by MEAL are follows' The Miami Design District to data has generated a total of 4 612iob5 including 1100 jobs on -site (direct workers; and 1,512 jobs either In businesses related to the on -site economic activity (indirect workers) or in businesses where the direct and indirect workers spend their earnings The annual income of all these workers exceeds S202.0 million. The Miami Design District project will pay approximately 19.14 million in ad valorem taxes this ftsc:al year including nearly $3.6 million to the City of Miami. • Miami -Dade County annually collects 1-cent local option sales taxes on more than 367 million in transactions at the Miami Design District project. • As shown ,n the table below tre Miami Design district project has already funded more than $119.0 million in ,public benefits within the DD SAP and is expected to fund at least S3.0 million more in the future Public Benefits to Dade Miami Design District _ Public Benefit —_ — Developer Costs Total Benefit Public Right of Way Investment-- S 13,765.732 5 4.015.732 Public Art Investment - $ 6.908,00+0 $6.908,000 Artistic Cara a Facades 5 8.744.475 $ 8.744,475 Contribution towards ICA" f S 23,600.000 $ 7.00.000'"' rJn oin Maintenance Costs'"" �_ 5 4.900-000 S 4 ,900.000 Public Benefits Provided in DE) SAP $ 57 9 8. 07 5 1 t9 568,207 L7onateon of the lots underlying the institute for Contempprary Art (kCA) This amount hss been raised to turd the ICA for 10 year8 _" Estimate of the net present vaiue of Trointertance costs over 20 years Source. Miami Design DistrictAssocia'es (Del) LLC. Miami EconomicAssWates, Inc. «. Economic Benefits Tne term 'economic benefits" refers to the positive impact that the Miami Design District project has had on the economy of the City of Miami andlor Miami -Dade County in terms of jobs and labor income. To estimate that impacts that the completed portions of the project are currently generating on an annual basis- MEAT utilized the Minnesota IMPLAN Input-output Model A description of the model may be found in the Appendix to tis letter on page 7 According to information provided to MEAT t)y MDDA, there are currently 981,792 square feet of operating space within the Miami Design District. Of that amount 392.718 square feet are occupied retaiii establishments. 264,354 square feet occ6ipsed by showrooms (generally displaying furniture and home furnishings and equipment) and art galt+ories. 25.329 square feet operated by healthfwetlness businesses and personal service Miami Economic Assoclstrs, Inc. 68G1 S.W. 391, Terrace Miami, Florida 33155 Tel. (305j 669.0229 Fax: (866) 496-6107 Email: meaink+_:belisouth.net Miami city Commission November 12, 2020 Page 3 establishments. 101.604 square feet occupied by restaurants and 186.195 square feet of office space. In conducting its analysis. MEAI considered all the space just enumerated; however. we did not consider the remaining 68,565 square feet of space that houses outer diverse uses. The table below provides MEAI's estimate of the economic benefits currently being generated the Miami Design District project an annual basis in terms of tabs and labor income Benefits Jobs Created Direct Indirect Induced Total Economic Benefits Miami Design District Project (2020 Constant Dollars) 3.100 686 — 826 4.612 Labor income All workers] S 202.273.400 - Scurcw mis m bimi n L7istrkg Aaaoe es (1)91). LLC. IMPLANT Miamt Eeonemic Assocales. inC. - With respect to the above table. the following points are noted: The term 'direct lobs_. refers to jobs on -site. "Indirect jobs... are jobs in industries related to the on -sate economic activity while -induced jobs' are jobs in economic sectors across the entirety of the economy in which the direct and indirect workers spend their earnings. The estimates of indirect and induced jobs as well as labor income and value-added were estimated based on the assumption that there would be 2.959 direct workers on -Site on a full-time equivalent (FTE) basis- The figure was. in turn. arrived at by assuming that: 1) the 682,401 square feet of retail. showroom and gallery space and wellness/health and personal service space would be occupied by 2 5 workers per 1.000 square feet on a FTE basis, 2) the 101,6104 square feet of restaurant space would be occupied space would be occupied by 5 workers per 1.000 square feet on a FTE basis. and 3) the 186.195 square feet of office space would be occupied by 4 workers per 1.000 square `eet on a FTE basis The number of FTE's on -site also includes the 141 people employed by the project to deal with leasing. security, parking operations and maintenance. • The number of workers employed on Site is likely to substantially exceed the number of FTE'S because the workforces in the retail, personal service and restaurant sectors includes high percentages of part-time workers. • The IMPiAN model estimates the number of workers employed countywide rather than the City of Miami. however MEAL believes that City residents will hold a substantial percentage of the countywide jobs. Miami Economic Associates, Inc. 8881 S.W. 891, Terrace Miami, Flonda 33156 7rt: (309) 889-0229 Fam (866) e9"107 Email: meaink4boilsouth.net Miami city Commission November 12, 2020 Page 4 Fiscal Benefits The term "fiscal benefits" refers to the poSdive impact that the Design District project has on the finances of the City of Miami as well as Miami -Dade County and Miami -Dade County Public School District. Tree primary fiscal benefit that the project generates for each is the aci valorem taxes it pays to them The City also collects a significant amount of revenue each year in the form of utility taxes and franchise fees; however. MEAT did not have sufficient information available to it to estimate the amount of these revenues collected on an annual basis. The project generates a significant amount of revenue for the County each year from the 1 percent local option sales tax levied on retail and restaurant sales rents and parking receipts. Ad valorem Taxes The table below shows the amounts of annual ad valorem taxes that will be collected by the properties that comprise the already developed portions of the Design District'. It should be noted that figures shown reflect only the amount of taxes paid on tine real property i e. land and buildings. Additional ad valorem taxes will be paid by the entities occupying the buildings with respect to their persona1 property. i e furniture. fixtures and equipment - November 2020 Ad valorem Taxes City of Miami. Miami -Dade County and Miami -Oath: Public School District _ Already Completed portions of the Miami Design District. -Project JurisdictioniFund _ Amount—C� City Miami _ 5 3,507.802 General Fund _ �� $ 88.307 _. Debt Service Fund _ -_-- - v-- $3,59B,1L19 Tooth M_ iami-Dade County _ -- General Fund — Debt Service Fund Library Fund _-- Total Miii l-bade Public 8ehool District Operating Fund Debt Service Fund_ Total_ $2.135, 337 5 218,708 -- $ 129,944 — $ 2 S3 9889 S 2,918305 -... $ 148,016 ,$ 3,OBB,7Z1 Total for All 3 Jurisdictions_ _ $ 9,146 819 Source, Miami Design District (Dei: LLC. V.1ami-Dade County Oroperty Appraiser: !Miami Economic Associates Inc _... _.- ales Taxes It those taxes are pain before the enc of this monththey quality for a 4 percent discourr, Miami Economic Associate, Inc. 6861 S.W. 89t" Terrace Miami, Florida 33156 Tel: (305) 669-0229 Fax: 1866) 496-6107 Email: rneaink�-7belisouth.net Miami City Commission November 12. 2020 Page 5 The State of Florida collects a 6 percent sales tax on all retail sales of non-exempt items and restaurant charges as well as on rents paid and parking fees collected on other than on -street parking. The State retains approximately 91 percent of the sales taxes it collects and rebates approximately 9 percent to the County in which the sales taxes were originally collected The rebated amount is then diwided between the County and the municipalities within the County The amount rebated by any Individual municipality from a single source such as the Miami Deign Project is generally fairly small, Adddionally. Miami -Dade County charges a 1 percent local option sales tax on the same transactions, with the proceeds from that tax being split evenly between transit and the Miami -Dade Health Trust Information provided to provided to MEAT by MDDA identities approximately $357,0 million worth of transactions on which the 1 percent local option sales tax was levied in 2019. This; figure; included all rents paid and parking fees charged in the De:,ign District's parking garages that year. It a15a included the sales that occurred in approximately 355.000 square feet of retail space. It did not, however include sales in the nearly 2155.000 square feet of space occupied by furniture and art galleries, the approximately 100,000 square feet of restaurant space and 68,656 square feet occupied by miscellaneous uses within the Miami Design Distnet. The amount of local option sales taxes collected in 2019 on the known amount of tax eligible transactions was 53.57 million Public Benefits The table below summanzes the public benefits that have already been provided by MDDA in the DD SAP even though it has been unnecessary to date to obtain -bonus- development capacity. - Public Benefits to Dade - — - Miami Design District Project Public Benefit Developer Costs Total Benefit Public Right of Way Investment 5 13,765.732 S 24.015.732 -- Public Art Investment S 6,908.000 S 6908,000 Artistic Garage Facades - S 8,744.475 - _S 8.744,475 Contribution towards ICA" 5 23,600.000 S 75.000.000" ' Ongoing Maintenance Costs"-_ S 4.900.000 _ 5 4.9DO,000 Public Benefits Provided in DO SAP_ _ S 57,918,247 $119,668,207 Donation of the lots underlying the Institute for Contemporary Art (ICA) ... Th+s amount has been raised to fund tnr ICA for 10 years — Estimate of the net present vaiue of maintenance costs over 20 years 5ovrce Miami Resign District Associates (De!] LLC. Miami F-conome Associates Inc_ MDDA has already installed much of the infrastructure needed to support future development of the district However an additional S2 - 5 million in public infrastructure and 51 - 3 million in public an spending are estimated in conjunction with the future DD SAP projects. Together with this future spending. trio total value of the public benefits will exceed $122-0 million Miami Economic Associates, Inc. 8$61 S.W. 891" Tr.rrace Miami, Florida 33156 Tel: (305) 669.0229 Fax: (886) 496-6107 Email: meainkg bellsouth.net Miami City Commission November 12, 2020 Page S Closing ME^I believes that the information presented above demonstrates that the Miami Design District project has been highly beneficial to the City of Miami a$ well as Miami -Dade County and the Miami -Dade Public School District, Approval of the proposed amendments will enable the project to continue to be so, Future development within the Miami Design District will result ,n significant numbers of new jobs being created. and the amount ad valorem taxes collected from the district will rise substantially. Accordingly, MEAI encourages you to approve the proposed amendment described above Sincerely, Miami Economic Associates. Inc. Andrew Dolkart President Miami Economic Associates, Inc. 6861 S.W. 891,1, Terrace Miami. Florida 33156 Tel: (305) 669-0229 Fax: (8661 496.6107 Email: mcaink4bellsouth.net Miami City Commission November 12. 2020 Page 7 Appendix Minnesota IMPLAN Input -Output Model The Minnesota IMPLAN input -Output Model relies on multiplier analysis which quantifies the cumulative effect of dollars inserted into the regional economy. As a dollar moves through the region. it creates additional revenue for linked businesses andlor their employees who also spend that money. More simply.. expenditures dispersed by one entity become revenue to another, continuing an economic cycle which ultimately dissipates bleeding into other regions or areas. Although several economic models are available. they work In fundamentally similar ways and center on the same indicators, The Minnesota IMPLAN model was initially created over 35 years ago at the University of Minnesota and has been upgraded on a continuing basis in the ensuing years The multiplier Impacts calculated by the Minnesota IMPLAN model are based on Input- output methodology. which explicitly considers the inter -industry linkages that exist within an economy Each Industry needs labor and Inputs trom other industries to produce economic output Whenever an industry experiences an Increase in the demand for its output. many other industries within that economy Indirectly experience an increase in demand as well because of these Inter -industry linkages This increase in demand that results from the need for material inputs Is called the indirect effects. In addition. an increase in production within a region also leads to an increase in household income through the hiring of workers. which in turn generates further demands for goods and services within the region Firms also need to expand their base of physical capital to meet higher levels of demand. and this too stimulates regional economic growth The latter effects are referred to as induced effects The inter -industry linkages and the induced effects on consumer and capital spending lead to successive rounds of production. and this process results in an increase in output that exceeds the initial change in demand. or a multiplier effect. Similarly. the increase in household Income will exceed the initial payroll increase encountered in the industry that experienced the original increase in demand. The total change in employment in the regional economy is a multiple of the direct change in employment. In addition to estimating empioyment. MEAI also used the Minnesota IMPLAN model to quantify the total earnings or labor income of the direct indirect and induced workers as well as the total gross domes z product, or value added, that would result from the efforts of the direct, indirect and Induced employees- Labor income consists of all forms of employment income including wages and salaries and proprietor income Gross domestic product (GDP). also known as value-added. Is the increased value of a product or service as the result of the economic Inpurls Tabor and capital) expended at a given stage. GDP is the sum of wages and salaries. proprietor income. interest and indirect business taxes Miami Economic Associates. Inc. 6861 S.W. 891^ Terrace Miami, Florida 33156 Tel: (305) 669.0229 Fax- (866) 495-6107 Email: meaink_-beElsauth.net 11 1 5 T U R 1 (: �'EIc.HlstyttN[i[rrr .AS:nCt.AT10 Mayor Francis Suarcz & City Commissioners City of'Miami City tlalI 1500 Pan American Drive Miami, Fl. 33133 Francisco Garcia, Planning Director City of Miami Planning Department 444 SW 2nd Avenue. 3rd floor Vliarni, FL 33130 Re: Support For Sth Amendment to'►Iinmi Design District Retail Street SAY Dear Mayor Susrre7., City Commissioners and Mr. Garcia: Scpl`mber 7, 2020 Ird The Buena Vista Fart Historic :A1cighborhood Association has collaborated over die years with our commercial neighbor's, the Miami Design District as it has evolved into the present -clay international shoppin-g, arts and entertainment destination. The Design District team presented a proposed 5th Amendment to the %Iiami Design District Retail Street Special Area Plan to neighborhood residents in Sglcntix:r 2019, which will include (among other things): (i) The inercasc in imight of the Tuttle South property at 3750 Biscayne Blvd. from 20 stories to 36 Aories. The roving at the Tuttle North property at 299 NE 39" Street will remain the same with a maximum height of 20 stories. The total gross floor area for the Tuttle Properties will remain the same as currently allowed. (ii) The developer's ability to flexibly utilize previously unused development capacity (i.e., floor area) othenvise available undux the coning regulations applicable to the S,-V properties. This letter confirms that Buena Vista Fast Historical Neihborhood Association continues to be in favor of the above -mentioned revised 5th Amendment to 14fiami Design District Retail Street Special area Plan. Respectfillly, Robin Portur, President Buena Vista Fast Ncialtborhood Association P.Q. Box 371067, 4tiarni, FL 33 B7 hv►:hnarasmail.com JPPENHEfM REAL ESTATE VENTURES L.L.C. Chad L. appenhatm 245 NIF 37P Street, Suite 102 Miami, Florida 33137 November 18, 2020 Han. Charles A. Garavaolia & Board Merrber:. City of Miami Pianning Zoning and Appeals Board 3500 Pan American Drive Miami, Florida 33133 RO: Miami Design District Retall Street SAP Amendrnetlt Dear Chairman Garavag.:a & members of the Planning Zoning and Appeals Board, Submitted into They Record I I 11 ?lzs 2L) - I own the property at 245 NE 37' Street. My property shares two property lines with the applicant's "Gateway Site South' aXa. -'Tuttle South". I am deeply concerned that l am only now hearing, for the first time, about this application and its sweeping changes to the Design District SAP. which could result in new towers of 36 stories with d uble the am au t of aC[owaale don right next to nay property. Though this application -with its nearly K0 pages of material- appears to have been in the works for months, neither I nor any of my other neighbors in the area were cven aware that it existed. The applicant never conducted any Outreach to the neighbors that could be affected. The City also failed to let any of the stakeholders in the area know that they were working with the applicant on these significant changes to the area. I found out about this application just days ago when the City announced that the application would be moving forward to a hearing before this board. I was completely bllndsided. With only a few days between the City`s announcement and the hearing. l haven't been able to review and evaluate the massive changes to the SAP being proposed. It would be totally unfair to move this application Forward without first giving impacted property owners like me an opportunity to review the proposal and understand its possible impacts, especially when there is the potential for doubling of density. A few days prior to the heartng simply isn't enough time. Accordingly, I ask that you please defer this application for at least 90 days to allow the community and stakeholders to have a meaningful opportunity to review the application and discuss any concerns with the applicant and City staff before the City takes any sort of official action. Sincer Chad L.