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HomeMy WebLinkAboutM-03-0095CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and- Members ndMembers of the City Commission F-- 0 204 DATE: JAN - 9 4W FILE: SUBJECT: DiscussionlItem Regarding the Little- Havana Economic Impact Study REFERENCES : 1 /23/03 City Commission Meeting ENCLOSURES: A discussion item concerning the economic impact study being conducted by Lambert Advisory, is being placed on the agenda as an update. BACKGROUND The Department of Public Works hired the engineering firm Kunde Sprecher to prepare a detailed traffic study evaluating SW 7'�' and 8h Streets in Little Havana. This study, completed on January 22, 2002, studied three alternate traffic routes: reversal of current traffic flow, reverse traffic with shoulders, and two-way traffic. Following a directive of the City Commission, the Department of Economic Development, issued a Request for Proposals on February 8, 2002 seeking Professional Services to conduct an economic impact study of each of the three traffic alternatives for SW 7h and 8th Streets, between Brickell and 27th Avenues in Little Havana. After a formal review process, Lambert Advisory was hired to complete the study on July 1, 2002. A draft report was delivered to the City on December 20, 2002 and is currently being reviewed by City staff. LB//MJN 03_ 095 T4/,,, #0 2, Submitted 1111,2 (�3°a'h.$lc ECONOMIC IMPACT ANALYSIS SUMMARY OF FINDI%9rd Vi con, SW 7th Street and SW 8th Street Traffic Alternatives item 1 91 r O Little Havana — Miami, Florida f'rislFa City Clerk Lambert Advisory LC in conjunction with Curtis & Kimball and Jack Ahlstedt, P.E. has completed an economic impact and related development analysis associated with four alternative traffic configurations for Southwest 7th and Southwest 8th Streets in the Little Havana neighborhood of the City of Miami. The analysis is focused on that portion of the SW 7th/SW 8th Street corridor that is located west of Interstate 95 and east of SW 27th Avenue. The alternative traffic options evaluated included: �+ • BarelineAllemalive— No change in the current traffic configuration with traffic on Southwest (L 81h Street traveling from west to east and traffic on Southwest 7th Street from east to west; Al Ir Fnwt.. 5 • ReverreFlawAllerna*'m—Traffic on Southwest 8th Street running east to west and traffic on Southwest 7th Street from west to east; • Rereire Flow wilh ShavlderrAllemwive— The same as the Reverse Flow Alternative but would include the construction of acceleration/deceleration shoulders along Southwest 7th Street to provide greater safety for vehicles when entering the traffic flow; and, • Two Way,4hemalive—Traffic flow on both Southwest 8th and Southwest 7th Street would be converted to two way east/west flow. As part of the study a number of research and analysis initiatives were completed including: background demographic and economic data specific -to the neighborhood and broader region was 7 �%b an yze ;over interviews with corridor businesses were conducted as part of a business survey; fieldwork was complete to o co ect data on real estate trends in the corridor and discuss future development opportunities and protects in planning with various property owners and community leaders; and two community meetings were held to discuss findings from the initial analysis and to ____/obtain input into the vanous tematives as it relates to traffic along the corridor. Conclusions have been derived from this analysis as well as case studies and the consultant team's experience evaluating similar corridors in other communities in South Florida and throughout the United States. r ,A Principal conclusions from this study are as follows: C G� U� • Although it was not within the scope of this analysis to estimate the cost of implementing any of the traffic alternatives, given information provided by the City of Miami and its traffic C`fit consultants, the capital cost and loss of business cost of implementingany of the alternatives ap ear quite modest�1�a�clnprovemencs o�=any this e. 'Pus is unportant from an G<< economic unpact use Mi means economic benefit will significantly =' outweigh costs. There is no roadway or sidewalk widening associated with any of the alternatives and the estimated implementation time may be as short as two weeks, allowing for changes in signage, roadway markings, and traffic signalization. • Given the similarity of the Reverse Flow Alternative and the Reverse Flow with Shoulders Alternative the economic impacts from these alternatives are indistinguishable. • It is clear from the real estate analysis, business survey, and community meetings that the proposed changes in travel patterns in the corridor will not be enough alone to realize significant economic impact. Rather, certain other investments must be made which will b`n enhance the relative impact of each Alternative. or C, \.-A � n Lambert Advisory LC 03` 095 Summary- Economic li.,)act Analysis SW 7' Street & SW 8' Street Corridor e2 �0 116rll� gl!bl 311ttei� Into t& "e nt.lblic \ HCl°1i Itefii R'v--Ci' ! JA 31 - -� i ,1dP` City Clerk The provision of additional parking, particularly in the core of the Southwest 8th Street business district (between 12,h Avenue and 17th Avenue) is one of the critical areas that must be addressed along with changes in road patterns. Only after off street parking options are expanded will the corridor realize significant investment in properties and businesses that in turn will drive economic impact. Increased off street parking is a particularly important factor in enhanced benefits associated with the Two -Way Alternative and Baseline Alternative. Increasing the provision of off street parking is less of a driving factor in the impacts associated with the Reverse Flow Alternative, but even under this Alternative off street parking will still be of additional positive benefit because it will also encourage the development of eating and drinking establishments and related venues in the core. Because of the importance of providing additional parking, we have assumed that "appropriate"" off- street parking is provided in the core of Southwest 8th Street under all Alternatives when calculating economic impacts. The follow table details the economic impact from the various roadway improvements in terms of number of jobs created and Value Added expressed in 2002 dollars. The impact shown is the annual additional benefit that will be realized by 2009, six years after the roadway and parking improvements are made. These benefits are over and above the "Existing Condition" economic output of the neighborhood. Additionally, we have also estimated the change from the "Existing Condition" in economic impact in the corridor assuming there is no change in the traffic pattern and no investment in additional parking. Marginal Economic Benefit as Expressed in Jobs and Value Added SW 7th Street and SW & Street Corridor 2002 Dollars The economic impact analysis indicates that there is an actual decrease in jobs in the area and virtually no value added if there is no investment in either parking or changing the traffic flow in the area. This is based upon a continuation of existing trends where employment in the area has been declining over the past five to seven years in contrast to relative strong home price appreciation in the area. Once parking is added and the various traffic alternatives are tested, the greatest benefit is derived from the Reverse Flow Alternative due to the fact that it will encourage large national general merchandise, apparel, supermarket For the purposes of this study, "appropriate" parking is assumed to be a number of parking spaces which is relatively consistent with the City of Miami's existing parking requirements. However, a parking study will be required to better define exactly how much off street parking may be needed given the development programs outlined within this study and the level of on -street parking which currently exists. Lambert Advisory LC 03- 095 JQbj Value Added 420 s Existing Condition 2002 2,657 $75,425,000 Baseline Alternative 2009 (20) $15,000 o additionalparking) Baseline Alternative 2009 337 $9,520,000 (Plus additionalparking) Reverse Flow Alternative 2009 1,073 $32,202,000 (Plus additionalparking) Two -Way Alternative 2009 1,016 $30,223,000 (Plus additionalparking) The economic impact analysis indicates that there is an actual decrease in jobs in the area and virtually no value added if there is no investment in either parking or changing the traffic flow in the area. This is based upon a continuation of existing trends where employment in the area has been declining over the past five to seven years in contrast to relative strong home price appreciation in the area. Once parking is added and the various traffic alternatives are tested, the greatest benefit is derived from the Reverse Flow Alternative due to the fact that it will encourage large national general merchandise, apparel, supermarket For the purposes of this study, "appropriate" parking is assumed to be a number of parking spaces which is relatively consistent with the City of Miami's existing parking requirements. However, a parking study will be required to better define exactly how much off street parking may be needed given the development programs outlined within this study and the level of on -street parking which currently exists. Lambert Advisory LC 03- 095 Summary– Economic Inpact Analysis SW 7"' Street & SW 80 Street Corridor Paae 3 1 vIO r� I #I`\ �C �i4` and other shopper goods retailers to move into the area. Under the Reverse Flow Alternative, Southwest 8th Street will now be delivering critical afternoon/after work shoppers to these businesses. While the Reverse Flow Alternative provides the greatest benefit it is only minimally better than the Two Way Alternative. The Two Way Alternative creates a significantly distinct investment environment than does the Reverse Flow alternative in that it will encourage an enhanced mix of residential and commercial investment and creates a bias towards smaller in-line stores and restaurants as opposed to larger national retailers. The development program that drives the economic impact model for each of the alternatives is shown in the following chart. None of the alternatives includes any hospitality or office investment in the corridor. The study determined that hotel investment will occur elsewhere in the City and region over the next six years. Given the fieldwork, a competitive analysis, and employment trends, office users interested in locating in the SW 7th/SW 8th Street corridor should be able to be accommodated within existing space in the area, and the principal benefit as it relates to office will come from enhanced rents and occupancies as opposed to new construction or conversion. Net New Development by Traffic Alternative: Retail & Housing SW 7th Street and SW & Street Corridor _-. % � Ori -I'\ -19o" Retail Space Added Housing Units Added Existing Condition 2002 808,000 Baseline Alternative 2009 115 o additionalparking) Baseline Alternative 2009 36,000 115 (Plus additionalparking) Reverse Flow Alternative 2009 170,500 115 (Plus additionalparking) Two -Way Alternative 2009 89,000 339 (Plus additionalparking) • In order to realize the benefits and level of development outlined above, it is clear from the analysis and fieldwork that the City of Miami must play a continuing role in the development of the corridor beyond just changing the traffic pattern and providing for additional parking. The Southwest 7th and Southwest 8th Street corridor has some wonderful attributes which fi promises to support any reinvestment or redevelopment program: the neighborhood surrounding the corridor has seen an impressive level of reinvestment in its housing stock particularly south of Southwest 8th Street, the corridor is heavily traveled both by vehicles VoWand pedestrians, and the area has a certain emotional relationship to the broader Cuban Na American community not only in South Florida but throughout the United States. However, as with many other areas which are in need of redevelopment there are challenges to realizing the full extent of investment in the corridor. The community meetings, survey of businesses, and broader analysis identified some key hurdles (beyond parking) that need to be addressed before substantial development and associated investment will occur. These . { , �`� include: �( -� o A continued drop off in tourist related business for area merchants; ��'� o A perceived lack of safety in the western stretch of the corridor; and, SllbMittCd last?daL:. ?3iz :jlC it@i'e ed -1l a.r 'o -s- Lambert Advisory LC FP'riscHl a A. Ca°:Y Clark 03— 095 Summary — Economic h i.jact Analysis SW 7" Street & SW 8' Street Corridor Paqe 4 o The nature of small parcel property ownership in the area which makes it difficult for development of any significance to occur. Our case studies within South Florida and outside of the area tend to indicate that these are issues which will only be addressed in a more comprehensive way by The City of Miami or an entity of the City of Miami in contrast to individual businesses and property owners within the corridor being left to their own devices. Finally, the economic impact analysis and associated community meetings have highlighted three areas of further work that should occur before traffic changes are implemented. First, there is some concern (albeit relatively muted) that any change in traffic along the SW 7th Street/SW 8th Street corridor will cause a significant amount of spillover traffic onto the surrounding residential streets. Concurrently, others have voiced a concern that traffic along SW 8th Street would be so tied up under the Two Way Alternative that it might have unintended negative consequences for area businesses. Both of these concerns can be tested through the use of a traffic model that will provide a graphic depiction of how traffic may disperse under different alternatives; P ,f �u • The second area of further work is related to a parking analysis that determines the level of \-�parking required given the development programs outlined within this Study. The parking �` analysis should detail the level of parking private land owners can be expected to provide and the amount of parking which the City may need to provide; Finally, an implementation strategy must be developed which identifies the best way in which the City of Miami can ensure that revitalization occurs in the corridor. This includes addressing how to best implement the traffic improvements but is also related to developing a broader revitalization scheme which will include further provision of parking, developing a comprehensive strategy for bringing visitors to the area, and addressing the dispersed property ownership which significantly limits the scale of redevelopment and reinvestment which can occur. Sc bmiiited Into the pubFc record, In'{ iten P 4Em'"L lla' A. G � I C sdda'?o 3 City berle, Lambert Advisory LC ®3-- 095