HomeMy WebLinkAboutItem #57 - Discussion ItemSFr
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CITY OF MIAMI
CENTRAL BUSINESS DISTRICT
REINVESTMENT STRATEGY
February 2001
PREPARED FOR DDA MIAMI BY:
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Table of Contents
Introduction................................................................................................................................ Page 1
RealEstate Market Overview.................................................................................................... Page 4
MarketArea Demographics.......................................................................................................... Page 4
RetailMarket Overview................................................................................................................ Page 9
Tourists........................................................................................................................................ Page 11
RetailSupply................................................................................................................................ Page 14
Hotel Market Overview................................................................................................................ Page 19
Residential Market Overview........................................................................................................ Page 22
RedevelopmentRequirements.................................................................................................... Page 25
LandownerPartnership................................................................................................................. Page 26
DebtFinancing............................................................................................................................. Page 27
PropertyTax Reduction................................................................................................................ Page 28
Economic Development Grants..................................................................................................... Page 29
Reinvestment Recommendations...............................................................................................Page 30
((i Creating a Vibrant Downtown...................................................................................................... Page 30
l
Recommended Redevelopment..................................................................................................... Page 32
WaterviewResidential .... .............................................................................................................. Page 34
IntownResidential........................................................................................................................ Page 37
AdaptiveReuse Residential........................................................................................................... Page 38
Hotel............................................................................................................................................. Page 40
Amenity Retail...............
........................................................... Page 43
Office........................................................................................................................................... Page 44
( Jewelry District Retail................................................................................................................... Page 46
Premium Outlet/Restaurant and Entertainment.............................................................................. Page 47
Technology / Communications...................................................................................................... Page 49
Economic Benefits....................................................................................................................... Page 51
Appendix.....................................................................................................................................Page 52
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Figures
Figure1: Miami CBD Study Area............................................................................................................. Page 2
Figure 2: One Mile Market Area Map........................................................................................................ Page 5
Figure 3: Five and Ten Mile Market Area Map.......................................................................................... Page 6
Figure 4: 2000 Population and Household Summary .................................................................................. Page 7
Figure5: Population by Age...................................................................................................................... Page 7 ,
Figure6: Trends 2000 — 2005 .................................................. . ........ . ................... ..................................... Page 8
Figure7: Households by Income............................................................................................................... Page 8
Figure 8: Top Five Consumer Groups........................................................................................................ Page 10
Figure 9: Miami Overnight Visitors by Region of Origin........................................................................... Page 11
Figure 10: Total Overnight Visitors by Area.............................................................................................. Page 12
Figure 11: Most Liked Features in Miami Area.......................................................................................... Page 12
Figure 12: Overnight Visitor Market Shares for Major Points of Interest .................................................... Page 13
Figure13: Retail Use Types...................................................................................................................... Page 14
Figure 14: Major Shopping Centers........................................................................................................... Page 15
Figure 15: Downtown Miami Study Area Top Ten Business Types........................................................... Page 17
Figure 16: Downtown Miami Business Types............................................................................................ Page 17
Figure17: Downtown Miami Hotels.......................................................................................................... Page 19
Figure 18: Downtown Miami Hotel Trends............................................................................................... Page 20
Figure 19: Downtown Miami Hotels Revenue Per Available Room........................................................... Page 20
Figure 20: Downtown Miami Hotel Room Supply and Demand................................................................. Page 21
Figure 21: Adaptive Reuse Residential Below Market Interest Rate Example ............................................ Page 27
Figure 22: Property Tax Abatement Example............................................................................................ Page 27
Figure23: Public Ownership Map............................................................................................................. Page 28
Figure 24: CBD Redevelopment Plan........................................................................................................ Page 31
Figure 25: Potential Uses at Buildout......................................................................................................... Page 33
Figure 26: New Residential Development Areas........................................................................................ Page 34
Figure 27: Intown Residential Development Area...................................................................................... Page 37
Figure 28: Adaptive Reuse Residential...................................................................................................... Page 38
Figure29: Hotel........................................................................................................................................ Page 40
Figure30: Amenity Retail......................................................................................................................... Page 43
Figure31: Office....................................................................................................................................... Page 44
Figure32: Jewelry District Retail.............................................................................................................. Page 46
Figure 33: Premium Outlet / Restaurant & Entertainment.......................................................................... Page 47
Figure 34: Technology/Communications................................................................................................... Page 49
Figure 35: Potential Economic Development Benefits Summary ................................................................ Page 51
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Introduction
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INTRODUCTION
BACKGROUND
The Miami Downtown Development Authority (DDA) has
targeted the Central Business District (CBD) as a priority area
for improvement. To achieve this goal, the DDA is
establishing a comprehensive redevelopment strategy for the
district. The CBD, which generally is identified as the area
within the Metromover tracks, is bounded on the east by
Biscayne Boulevard, Bayfront Park and Biscayne Bay. To the
west is the Miami Government Center, including the
intermodal rail station. NW 5u' street forms the CBD's
northern boundary and immediately to the south is the Miami
River and Brickell Village, the city's major financial district.
One of the key components of the CBD redevelopment strategy
is an urban design plan, recently completed by
Ehrenkrantz/Eckstut/Kuhn. Together the design plan and the
recommendations in this report provide the DDA with an
investment strategy for commercial, hotel, and residential
redevelopment in the CBD. This report is based on the
following: Interviews with business leaders, property owners
and other downtown stakeholders; An overview of real estate
market conditions; An inventory and analysis of properties
having potential for redevelopment in the area; An assessment
of real estate investment opportunities in the area. This study
looks at demographics, local development patterns, competing
supply in the market area and issues of development feasibility.
Final recommendations focus on areas for public participation
as a development partner with the private sector in future
project efforts.
STUDY PURPOSE
The Miami DDA will use this Reinvestment Strategy and the
Urban Design Plan as they consider policies and actions
affecting redevelopment in the CBD area. Particularly
important is the need to allocate public improvement dollars
and to determine whether there is a need for incentives to
attract real estate investment to the area. The Strategy is
intended as a market-based guide for public and private sector
investment decision-making in the Central Business District.
Recommendations are provided regarding locational conditions
affecting real estate investment in the CBD, uses supportable
by market area dynamics, and scale of development
recommended for specific areas within the CBD.
METHODOLOGY
These recommendations result from a series of activities,
including meetings with DDA representatives, CBD property -
owners, tenants, local lending institutions, real estate
developers, civic leaders and others who have an interest in the
downtown core's real estate investment environment. Market
overviews were performed for retail, hotel, residential and
office uses. Demographic analyses were performed for the
retail market areas. Physical surveys of locational conditions
were conducted with DDA representatives and the urban
design consultants.
Interviews with local real estate brokers and leasing agents
helped develop an understanding of current market conditions.
A review of potential sources for public contributions within
the City of Miami and Dade County was performed, as was a
review of development incentives in selected other major U.S.
cities. Development pro -forma for representative potential
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future projects within the CBD were created, using
assumptions from market area comparables and industry
I averages for development costs in the area.
This report is presented in five chapters: Introduction, Real
Estate Market Overview, Redevelopment Requirements,
Reinvestment Recommendations, and Economic Benefits.
Figure 1:
Miami CBD Study Area
Source: Katherine Beebe & Associates
DOWNTOWN S•rRN.F.ECA' ['AG.E, 2 I:N•ritODUC JON
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Real Estate Market Overview
DDA rAtAivii
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REAL, ESTATE MARKET OVERVIEW
The real estate market overview looks first at demographics for
the Central Business District and then at local market
conditions affecting the major potential uses which were
identified in our interviews with downtown stakeholders as
offering potential for attraction to the downtown core. These
uses include the following, which are discussed in more detail
below:
• Residential
Retail
® Hotel
Market Area Demographics
The market area for businesses located within the CBD varies
with the type of business and related customer draw. The retail
market area for a location is the geographic area from which
the majority of retail customers is drawn. Generally, the
market area is used by knowledgeable retail businesses as a
basis for assessing demographics to determine the potential
customer base for their goods or services. The primary market
area is defined by current customer travel patterns, retail
experience in similar market areas, pedestrian and vehicular
traffic flows, residential and employment densities, and the
location of competing retail locations. For retail, the market
area most commonly used is defined as one mile for amenity or
neighborhood type businesses, five miles for convenience
stores, ten miles for destination businesses and up to forty
miles for outlet stores..
For the purposes of this analysis, we look at the one, five and
ten mile areas for an understanding of market area
demographics. These are the typical service areas for amenity
and community level shopping facilities. In this report, we also
address the potential for a premium outlet mall. This type of
development would draw from an area within 45 minutes to an
hour driving time. In addition to local market area
demographics, the premium outlet developer also would be
concerned with regional travel patterns, potential for tourist
draw and the location of competing facilities when making a
location decision.
Demographic analyses used to identify the types and amount of
potential demand for retail uses in the CBD are based on the
one, five and ten mile market areas. Sources of demand
additional to these resident households include employees
working in or near the downtown, including the Brickell
district to the south of the CBD, and visitors to the area,
including cruise ship traffic.
Demographic data and projections for the Miami CBD are
based on data provided by CACI and the U.S, census. CACI is
a market data research firm based in Fairfax, Virginia, which
provides data projections used in retail locational analyses.
The one, five and ten mile market areas are shown in Figures 2
and 3.
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Figure 2: One Mile Market Area
DOWNTOWN RE DEVELOPMENT STRATLGV PAGi? .5 t L: L :STATE MARKET OVERVIEW
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Population and Households
Downtown Miami's one mile market area contains 18,329
individuals in 7,747 households. The population in this market
area is essentially stable with growth projected to 19,132 by the
year 2005. Estimated population in the five mile market area,
including portions of the communities of Miami Beach,
Gladeview, Brownsville, Coral Gables and Key Biscayne is
431,607, with an expected increase of 17,000 by the year 2005.
There are 169,047 households within five miles of the Flagler
and NE 2nd Avenue intersection with future growth estimated
to increase to 175,639 over the next four years.
In the ten mile area, the current population is approximately
1,105,000 with an increase of nearly five percent projected by
2005.
Average household size is smaller in the one mile area (2.29)
than in the five mile area (2.5), reflecting the higher number of
l,.
single person households in the one mile area.
Approximately eleven percent of the households in the one
mile market area are owner -occupied, with the share of
homeowners increasing to one/third in the five mile and to
nearly one/half in the ten mile area.
1 v
Median age is approximately the same in the one, five and ten
mile areas and stable at 38 years old. School age children
i comprise about one/fifth of the population, while senior
citizens age 65 and older account for eighteen percent of the
population. The largest population group is ages 45 to 64, and
it is expected to increase in the next five years.
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Figure 4:
2000 Population and Household Summary
Source: CACI and Katherine Beebe & Associates
25%
tax
5%
Figure S: Population by Age
One, Five, and Ten Mlle Radius
Flegler t N6 2nd Avenue
2000
910ne Mile - Median Age 37.5
Cl Five Mile - Median Age 38.4
O Ten Mile - Median Age 39
0% i-URU-J
<5 5 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 64 65 to 74 75 to 84 85+
Age Group
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One Mile
Five Mile
Ten Mile
Population
18,329
431,607
1,104,788
Households
7,747
169,047
410,832
Average Household Size
2.29
2.5
2.64
Owner Occupied
881 (11%)
55,889 (33%)
195,732 (48%)
Households
Renter Occupied
6,867 (89%)
113,158 (67%)
215,101 (52%)
Households
25%
tax
5%
Figure S: Population by Age
One, Five, and Ten Mlle Radius
Flegler t N6 2nd Avenue
2000
910ne Mile - Median Age 37.5
Cl Five Mile - Median Age 38.4
O Ten Mile - Median Age 39
0% i-URU-J
<5 5 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 64 65 to 74 75 to 84 85+
Age Group
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Figure 6:
Trends for the one and five mile areas show the one mile area Trends 2000 — 2005
is expected to gain a higher percentage of population and Source: CACI and Katherine Beebe & Associates
households than the five mile area from 2000 to 2005 and that Annual Percent Change for 2000 — 2005
per capita income in the one mile area is expected to gain
slightly more than in the five mile area. I One Mile 1 Five Male
Income
Estimated current median household income in the one mile
area is $14,728, compared to $21,523 in the five mile area and
$28,404 in the ten mile area.
Less than one/fifth of the households in the one mile area earn
over $35,000 annually, while eleven percent earn more than
$50,000. Thirty percent of households in the five mile area earn
over $35,000 and seventeen percent earn over $50,000. In the
ten mile area, where the median income is higher,
approximately 25.8 percent earn over $50,000 annually.
Average household incomes are expected to increase over the
next four years in the one, five and ten mile market areas --29
percent in the one mile market area, 24 percent in the five mile
market area and 22 percent in the ten mile area. Per capita
income is expected to increase 4.7 percent in the five mile area,
compared to 4.4 percent in the state of Florida and 4.6 percent
nationally.
Population
Households
Families
Owner
Households
Per Capita
Income
W%
50%
Area
0.86%
0.87%
1.00%
1.82%
State
National
0.88%
1.04%
0.74%
1.41%
4.41% 4.38% 4.57%
Area
0.78%
0.77%
0.81%
1.65%
State
National
0.88%
1.04%
0.74%
1.41%
1 4.66% 4.38% 4.57%
Figure 7: Households by Income
One, Five, and Ten Mite Radius
2000
404:.
- -
_-- _ _...—____----
[]One Mile- Median HH Income Y14,728
9 Five Mile - Median HH Income $21,523
30%
iq
----
OTen Milo - Median HH larome fZ8,404
X 2041
1045.
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415,000 $15,000- 525,000 535,000- $50,000. $75,000- $100,000
$24,999 $34,999 $49,999 $74,999 $99,999 +
Income
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Retail Market Overview
CONSUMER TYPES
An analysis of consumer types has been prepared to further
describe the one, five and ten mile area demographic profiles.
The analysis utilizes census and market area data in a model
that combines variables to describe the characterization of
retail customer groups. Variables include age, income,
location, ownership characteristics, and related indicators.
The analysis for the one mile area generally comprising the
Miami downtown district describes the households as
predominantly four types: Young Mobile Adults, City
Dwellers, Downtown Residents, and Non -Residential
Neighborhoods.
The five mile area, which primarily includes City of Miami
households, also extends to Miami Beach and the fringes of
Key Biscayne, Brownsville, Gladeview, Miami Springs, El
Portal and North Bay Village. This larger market area has more
affluent families, upscale households, and up and coming
singles than the one mile area. These segments comprise five
percent of the five mile area's households, which are not
represented in the downtown core. The 410,832 households in
v the ten mile area show a higher percentage of upscale, affluent
and up and coming, totaling approximately 15 percent of the
total. An additional 5.5 percent are higher -end retirement
households.
2 In the ten mile area, the profile shows 11.3 percent of the
households are "affluent families" and an additional 18 percent
are "upscale households" and `up and coming singles."
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Together, these high-end consumers constitute nearly thirty
percent of the households.
The next step in the analysis further defines Miami households
as consumer types, which have certain lifestyle preferences.
Consumer types provide an understanding of demand
generated by households within the local market area for retail
and service businesses. Where they are higher than the
national index for comparably sized communities, they
represent a significant number, which should be considered
when planning retail development for the downtown area.
These groups represent the potential retail market area base for
the downtown.
The top consumer types in the one mile area are New
American Families, Distressed Neighborhoods, "East Coast
Immigrants, and Twentysomethings. In the five mile area, the
top consumer groups are New American Families, East Coast
Immigrants, Distressed Neighborhoods, Social Security
Dependents, and Hardtimes. In the ten mile area,
approximately 64 percent of the 411,000 households are
described as New American Families. The remaining
households are evenly divided among Distressed
Neighborhoods, Urban Working Families and Active Senior
Singles,
DOWNTOWN REDEVELOPMENT STRATEGY PAGE 9 REAL ESTATE MARKETOVERVIEW
DDA A N A im
Figure 8:
Top Five Consumer Types
Source: CACI and Katherine Beebe & Associates
One Mile Area
New American
Families
68%
Distressed
;ighborhoc
18%
East Coast
Immigrants
11%
_Twentysomethings
3%
Business Districts
0%
New Ameri,
Families
65%
Five Mile Area East Coast
Immigrants
17%
New America
Families
64%
Ten Mile Area
East Coast
I unigrants
hstressed
ghborhoods
9%
Social Security
Dependents
5%
fardtimes
4%
Distressed
Neighborhoods
6%
Urban Working
Families
6%
:five Senior
Singles
5%
I
l
DOWNTOWN REDEVELOPMENT STRATEGY PAGE 10 REAL ESTATE MARKET OVERVIEW
Purchase Price Index
Data provided by Simmons Market Research Bureau surveys
and the Bureau of Labor Statistics Consumer Expenditure
survey was used by CACI to prepare a retail spending report
for the one, five and ten mile market areas. The Purchase Price
Potential Index (PPI) shows demand for a product or service
and the Spending Price Potential Index (SPI) shows the amount
spent for a product or service in CBD market areas.
The national average is indexed at 100. Generally, categories
with indexed scores at or above 100 on the PPI are the products
and services which the Miami DDA market area households
demand and/or are purchasing at or above the national average.
Retailers offering these goods and services should find the
Miami DDA location attractive in terms of market area
support. They include the following:
• Women's, Children's, and Men's Apparel
• Cable Television
• Child Care
• Groceries
• Home Remodeling, Maintenance and Repaid
• Home Services
• Household Furnishings, furniture
• Appliances and Electronics
• Audio Equipment, Video Equipment, Tapes & CDs
• Luggage
• Insurance
o Optical Goods
• Toys and Hobbies
Households in the local market area currently support retail
uses offering these products. Note this analysis describes the
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basis for demand in the market area. To understand whether
additional businesses are needed to meet this demand, an
identification of major sources of competing supply is
described in the next section. Detailed charts describing PPI,
SPI and the annual amount spent per consumer household in
the one, five and ten market areas are in the Appendix to this
report.
Tourists
The Greater Miami Convention & Visitors Bureau reports
approximately 9.8 million overnight visitors to the area in
1999, reflecting an increase of 48,700 over 1998.
Approximately 55 percent of the visitors are international and
45 percent from the U.S. The Caribbean, South and Central
America account for over 3.2 million annual visitors, with
South American Miami's strongest region in Latin America.
PAG.E 11
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The Convention Bureau's annual survey shows visitor
satisfaction at the highest levels since the survey began in
1989, with 98 percent of the visitors "extremely or very
satisfied" with their stay.
Figure 10 shows where visitors stayed in 1999. Approximately
12.5 percent stayed in downtown Miami, where hotels reported
an average occupancy level of 68.6 percent.
Figure 10:
Total Overnight Visitors by Area -1999
Source: Greater Miami Convention end Visitors Bureau
Katherine Beebe & Associates
Grove - Miami Beach
Gables - Key 39.5%
Biscayne
7.8%
South Miami
Dade
8.3%
Downtown
12.5%
Airport
North Dade - 19.40/o
Sunny Isles
12.5%
-
When asked what they rated as the top characteristics they
liked about Miami, nearly all the features are found in the
downtown area. As seen in Figure 12, major points of interest
included Downtown Miami for 48.2 percent of the visitors and
Bayside Marketplace for 57.6 percent, together equaling more
than the Art Deco District/South Beach area.
The Bureau estimates an average of $190.83 per day is spent
by each overnight visitor. With the median number of nights
stayed up to 6.8 in 1999, the expenditures per person per visit
are estimated at $1,297.12. to
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Figure 11:
Most Liked Features in Miami Area
Most Liked
Total
Domestic
International
Features
Visitors
Visitors
Visitors
Weather
47.7%
67.0%
31.7%
Beaches
36.5
29.5
42.3
Shopping
34.7
8.7
56.1
Nightlife
30.6
33.2
28.5
Outdoor
15.3
16.4
14.5
Cafes
Restaurants
12.6
3.4
20.2
International
Ambiance
9.1
6.1
11.7
Source: Greater Miami Convention and Visitors Bureau
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m
Figure 120
Overnight Visitor Market Shares for Major
Points of Interest
Source: Greater Miami Convention and Visitors Bureau
The Beaches
Art Deco District / South Beach
Bayside Marketplace
Downtown Miami
CocoWalk / Mayfair. / Coconut Grove
Aventura Mall
Night Clubs
International Mall
Key Biscayne
Lincoln Road
Miami Seaquarium
Little Havana
Bal Harbour Shops
Sawgrass Mills
Dadeland Mall
Concerts
Museums
Golf
The Falls
Shops of Mayfair
Westland Mall
Everglades National Park
64.9%
60.0%
57.6%
48.2%
48.1%
38.4%
23.1%
18.4%
17.8%
13.4%
12.2%
10.4%
9.7%
9.7%
9.5%
9.1%
8.9%
6.8%
5.6%
4.2%
2.9%
2.4%
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Retail Supply
The Miami downtown retail market areas serve customers at
the neighborhood (one mile), community (five mile) and
regional (five to ten miles and higher) levels. The community
and regional level customers are particularly well -served by
shopping malls, existing business districts, and retail strips.
Retail uses may be categorized as Neighborhood Shopping
Centers, Community Shopping Centers, Regional Shopping
Centers, Super Regional Centers, Big Box, Commercial
Corridors and Older Town Centers. All are competing
locations for the businesses which market demand could
support in the Miami DDA area. Figure 13 summarizes
characteristics of these types of commercial space.
The location of major competing retail supply which serves
Miami's downtown five to ten mile market areas is shown on
the following page.
Figure 13: Retail Use 'Types
Type of Center
General Range in Gross
Usual
Minimum Site
Area
Leasable Area
(Square Feet)
Neighborhood
30,000-100,000
3-10 Acres
Community
100,000-450,000
10-30 Acres
Regional
300,000-900,000
10-60 Acres
Super Regional
500,000-2 million
15-100 Acres
Big Box
40,000+
2 Acres
Commercial Corridor
100,000+
2 Blocks
Older Town Center
500,000 -1,000,000
N/A
Premium Outlet
400,000 +
20 Acres
Source: Urban Land Institute
Katherine Beebe & Associates
Dow[vT(1WN REDEVELOPMENT NI S INA'1 EGY PAGE 14 til:Al, 11:STATV ,I1'.1AREFT 0 l lMEM
DDA OVItAlkil
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Community Center Retail
There are over one million square feet of retail space within
five miles of downtown Miami and approximately an
additional five million square feet in major malls with ten
miles. A list of these facilities, including a description of
location, major retail tenants and distance from the downtown
is included in the Appendix.
The Taubman Company is opening in March, 2001 a 1.4
million square foot enclosed regional mall at the Florida
Turnpike and Dolphin Expressway, which is about ten miles
from downtown Miami. The Dolphin Mall is expected to draw
from a minimum of ten miles, including the downtown area.
The Dolphin Mall has signed 13 anchors and plans more than
200 outlet, dining and entertainment venues.
Major Centers within five miles include Lincoln Road Mall
and Collins Avenue stores, Streets of Mayfair, CocoWalk, and
Bayside. In addition, the ten mile market area includes The
Shops at Sunset Place, Bal Harbour Shops, Dadeland Mall,
Westland Mall, Mall of the Americas, Miami International
Mall, Aventura Mall and Loehmann's Fashion Island.
Large retail centers within a forty-five minute drive distance
include the Fashion Mall at Plantation, The Galleria, Coral
Square Mall, Mizner Park, Town Center at Boca Raton and
Sawgrass Mills.
Outlet Retail
Sawgrass Mills is a 1.9 million square foot shopping mall
offering a number of outlet retail stores. Major tenants include
Burlington Coat Factory, JCPenney Outlet Store, Last
Call!Neiman, Marshalls and TJMaxx. Located 26 miles and a
forty minute drive from downtown Miami, Sawgrass Mills
attracts Miami residents and tourists to the area, including
cruise ship passengers who are bused to the Mall as part of
their Florida travel experience.
Premium Outlet
Premium outlet malls cluster outlet stores offering designer and
fine specialty items in one center. A minimum of 350,000
square feet in area, these centers focus on the market seeking
sales or lower cost items from usually higher priced stores.
Typical tenants in these premium outlet malls include Anne
Klein, Burberry, DKNY, Nautica, Polo Ralph Lauren and
Coach. Together the outlets form a shopping destination for
the fashion -oriented value buyer.
Premium outlet retail malls are considered as destination retail,
with most customers coming from within one hour's drive
time. Outlet mall developers state they seek visible locations
on roads with high vehicle counts. Locations near airports and
major tourist destinations are preferred
Downtown Retail
Downtowns are neighborhoods to those who live and work
within the Central Business District. Neighborhood or amenity
retail serves this population and draws from an approximate
market area of one mile. Stores rely strongly on pedestrian
activity and persons who want the convenience of a five to ten
minute drive. A review of existing and planned retail within
the DDA area, which comprises approximately one square mile
shows an unusual mix of retail businesses.
0MYNI•IY)\VWdr.IAIY\'l?LO NVI1`NI' 1i1AZA')A,'CV I`.it:E l.rs hrt:�ll. E�:•A•r1'CE INIA111 til T ()NI ':RVII w
r
Our survey of the downtown identified approximately 1000
retail businesses at street level. More than one✓third of the
stores are jewelry. Ten percent are restaurants, nine percent are
clothing, and eight percent are electronics. Approximately five
percent of the first floor occupancy is office and bank use. The
remaining businesses include personal and business services
and miscellaneous retail. About forty percent would be
described as destination businesses and forty percent as
convenience. There are few stores providing neighborhood
service items, reflecting the low number of households
currently living in the downtown.
Figure 15:
Downtown Miami Study Area
Top Ten Business Types
Source: Katherine Beebe & Associates
Jewelry
371
37.06%
Restaurant
105
10.49%
Clothing
95
9.49%
Electronics
81
8.09%
Vacant
71
7.09%
Shoes
35
3.50%
Personal Service
31
3.10%
Cosmetics/Perfume
27
2.70%
Bank
25
2.50%
Office
19
1.90%
DDA N -I J AM I
The downtown lacks some neighborhood amenities, which
would serve downtown housing. This includes better quality
grocery, restaurants, personal service, coffee shops, bookstores,
and similar establishments.
Figure 16:
Downtown Miami Business Types
Source: Katherine Beebe & Associates
RCOMMM
10%
aah4
spm
VA
k"Iry
39% PawdSam a
3%
omce
4%
Olha
VA"M 21%
m
TxAMC COUNTS
The downtown has an unusually high number of jewelry stores, Average daily traffic counts are important to retailers, when
which together comprise a "jewelry district"—a specialty selecting a location. A review of traffic counts for key
shopping destination serving customers from the region as well locations in the Central Business District shows 36,000
as international visitors. vehicles daily on Biscayne Boulevard at Flagler. The
DowNTOWN REDEVELOPMENT STRATEGY PAGE 17 REAL ESTATE MARK -ET OVERVIEW
'PD i)A IVA I 101
downtown distributor carries 32,500 and SE 2nd Street (Brickell
extended) carries 25,000. Retailers look for a minimum of
20,000 vehicles daily. SE l't Street carries 10,000 cars, west
of Biscayne Boulevard, and Flagler carries 4,800. If these
counts were combined in a two way system, the higher counts
would be a plus for businesses along the Flagler frontage.
Retail Conclusions
It is recommended future development in the Miami Central
Business District focus on four major types of retail activity:,
Specialty (Jewelry and related luxury goods), Premium Outlet
Amenity Retail and Restaurant/Entertainment.
Specialty Retail Miami's jewelry district is a "diamond in the
rough". With over 370 jewelry businesses in the downtown,
this district rivals New York's in the quality of offerings and
size. Yet, it is not as well known and does not stand
prominently as the major activity in downtown Miami. With
most of the stores located in a four block area centering on
Flagler and bounded by Second and Miami Avenues, the
district offers an opportunity to improve the image of the
downtown. Re -tenanting of some of the existing building first
floor spaces to include only luxury jewelry and related
boutique retail, so visitors would perceive the district as a
unique destination shopping experience, would greatly enhance
the downtown's ambiance. This means electronics stores
would, over time, relocate elsewhere in the district.
DDA tenant recruitment should focus on stores related to the
jewelry district, including leather and fine accessories. At the
same time, better stores located outside the existing district
should be encouraged to locate closer to the district center.
Fapade and first floor improvements should be made to
improve the image of the jewelry district.
The visibility and recognition of Miami's downtown jewelry
district should result from these improvements. While it is
expected that the re -tenanting effort should result in a modest
increase in retail businesses (100,000 to 125,000 square feet),
the focus on the district should improve the quality of the
existing first floor retail and upgrade its economic value.
Premium Outlet Interviews with premium outlet mall
developers indicate Miami is a good market. If their needs for
land area (sufficient for a minimum of 350,000 square feet of
retail space) could be met at a feasible cost, the downtown
could be attractive. Stores would have to front on Biscayne
Boulevard, the busiest street, with a major visible presence at
NW 6th to attract cruise ship traffic and mark the entrance to
downtown from the north and east. Customers would be drawn
from the greater Miami area as well as tourists to the region.
Cruise ship traffic would be expected to contribute to the
market base.
Amenity Retail Approximately eight percent of the existing
businesses in the downtown may be classified as amenity retail,
with most of their customers coming from households within
one mile of their location. These include the barber/beauty
shops, pharmacy, personal service, small office and some of
the restaurants. Amenity shopping facilities are expected to
help build a healthy residential base in the downtown, with the
retail serving as an amenity to the residential units. Housing
and retail in proximity build value for each other. A good
quality grocery store, more neighborhood restaurants and
services will draw their market from a downtown residential
community and contribute to the viability of new housing
investment.
It is recommended amenity retail be located on the first floor of
mixed-use buildings throughout the downtown, close to the
DO'1NhI ~ RL'DEVELOPMENT STRATFGY PAGE 18 REAL ESTATE MARKET OVERVILW
,I
residential development. This use should not be encouraged on
Flagler or Biscayne Boulevard. Because these are usually
lower -rent paying businesses, they should not be planned as
free-standing independent buildings. It is estimated the
downtown, with the development of additional planned
residential and hotel units would support approximately
175,000 to 225,000 square feet of additional amenity retail.
Potential stores would include a grocery, pharmacy,
barber/beauty and neighborhood restaurants.
Restaurant Entertainment Because the Dolphin Mall is still
marketing space, it is difficult to determine the extent to which
the center will lease to tenants, who may have contributed to
the tenant base for a premium mall developer in the Central
Business District. With only eleven miles separating the two
locations, this is a concern. Future plans should provide for
flexibility with first floor space on Biscayne Boulevard, so the
retail use could be reduced and focus more on
restaurant/entertainment and related uses.
Hotel Market Overview
Downtown Miami's hotel supply includes 6,011 rooms in
nineteen establishments. The market area for hotels includes
properties in the Brickell and North Biscayne Boulevard areas,
where the most recent additions were the Mandarin Oriental
Miami and the Marriott Miami hotels in 2000. There are nine
hotels in the Central Business District, with a total of 2870
rooms. These represent less than half of the downtown area
supply. Most of the Central Business District hotels were
developed between 1964 and 1984. The CBD's most recently -
developed hotel is the Miami Sun, 90 rooms built in 1994.
Occupancy trends for downtown Miami hotels show an
average occupancy from 1994 to 2000 of 71 percent.
Occupancy levels and room rates have been increasing steadily
DOWNTOWN REDEVELOPMENT STRATEGY
DDA 1L11AMI
over the last five years. While there has been an increase of
room supply, there also has been an increase in demand with
Figure 17:
Downtown Miami Hotels
Source: Smith Travel Research ® 2000 & Katherine Beebe & Associates
Hotel Establishment
Address
Rooms
Year
Building
Opened
Sheraton Hotel Biscayne
495 Brickell Ave • Miami • FL 33131
598
N/A
Best Western
340 Biscayne Boulevard - Miami • FL 33132
200
1964
Howard Johnson
1100 Biscayne Boulevard • Miami • FL 33132
115
N/A
Holiday Inn Miami
Downtown
200 SE 2nd Avenue • Miami • FL 33131
256
N/A
Hyatt Regency Miami
400 SE 2nd Avenue - Miami • FL 33131
615
1982
Marriott Biscayne Bay
1633 North Bayshore Drive • Miami • FL
33132
603
1983
Wyndham Miami Biscayne
1601 Biscayne Boulevard - Miami • FL 33132
528
N/A
Ramada Inn Dupont Plaza
300 Biscayne Boulevard Way • Miami • FL
33131
295
1970
Everglades Hotel
244 Biscayne Boulevard • Miami • FL 33132
376
N/A
Inter -Continental Miami
100 Chopin Plaza • Miami - FL 33131
639
1984
Four Ambassadors Hotel
801 Brickell Drive • Miami • FL 33131
150
N/A
Clarion Plaza Hotel
100 SE 4th Street • Miami • FL 33131
149
1980
Doubletree Hotels Grand
1717 North Bayshore Drive - Miami - FL 33132
152
1988
Riande Continental
146 Biscayne Boulevard • Miami • FL 33132
250
N/A
Miami Sun Hotel
226 NE 1st Avenue • Miami • FL 33132
90
1994
Travelodge Miami
1170 NW 11th Street • Miami • FL 33131
100
1975
Mandarin Oriental Miami
601 Brickell Key Drive - Miami - FL 33131
329
2000
J.W. Marriott Miami Hotel
1111 Brickell Avenue • Miami • FL 33131
300
2000
Fortune House
185 SE 14th Terrace • Miami • FL 33131
176
1998
TOTAL
6,011
PAGE 19
DEAL ESTATE MARKE'r OVERVIEW
DDA MIA101
room revenue at its highest in 1999 and 2000 year to date
The number of overnight visitors to Miami has increased since
$89.00
looking strong.
1985 from 5.4 million to 9.8 million in 1999. Leisure travel is
1,421,811
The monthly occupancy and room rate by region, prepared by
the primary reason for visiting Miami both for domestic and
international tourists. According to the Greater Miami
74.00%
the Greater Miami Convention and Visitors Bureau, indicates
the total average occupancy level for Dade County is 70.5
Convention and Visitors Bureau, nearly 70 percent of the
�
percent through September, 2000. The occupancy levels for
visitors in 1999 came for vacation or pleasure. Business and
convention travel accounts for an estimated five percent of the
1999
Downtown/North Dade are at the same level, with Miami
Beach and South Dade slightly lower. The highest level is at
visits and passenger cruises for an additional 12 percent. The
$74.14
the Airport/Civic Center, 76.3 percent. Downtown/North Dade
majority of visitors stay in hotels/motels (over 8.1 million), up
nine percent from 1998 to 1999. Approximately 12.5 percent
$145,483,429
shows a year-to-date increase over 1999 of 3.7 percent, higher
than any of the remaining areas.
of these visitors in 1999 stayed in the downtown. Figures 18,
$106.84
$77.66
19, and 20 show Overnight Visitors statistics,
1,074,534
Occupancy Room Revenue Per Room Room Room
Rate Avallahle Supply Demand Revenue
Room
1994 64.50% $79.42 $51.27 1,717,203 893,026 $97,372,489 1
1995 69.30% $79.72 $55.28 1,912,965 1,326,317 $105,739,282
1996 70.90% $81.45 $57.72 1,912,965 1,355,788 $110,425,767
1997
75.00%
$89.00
$66.79
1,894,715
1,421,811
$126,543,942
1998
74.00%
$95.21
$70.42
1,921,643
1,421,233
$135,319,332
1999
71.20%
$104.15
$74.14
1,962,165
1,396,873
$145,483,429
2000
72.70%
$106.84
$77.66
1,478,286
1,074,534
$114,804,309
(through
Sept)
Average
71.09%
$90.83
$64.75
1,828,563
1,269,940
$119,384,079
With the Dade County and downtown occupancy rates at 70
percent and an increase in demand projected for the downtown
hotel market, the downtown should plan for the addition of
some hotel rooms in the Central Business District.
I
DOWNITOWIl f REDEVELOPMENT STRATEGY PAGE 20 HEAL ESTATE MARKET OVERVIEW
e
Hotel Conclusions It is recommended that new hotels be
planned for two areas in the downtown core. The first is the
addition of one to two hotels on Biscayne Boulevard, with
views of the Bay. One of the hotels or an additional third
hotel can be developed through the renovation of existing
property for improved hotel use. Another possible location is
on the southern edge of the CBD, with views of the Miami
River and Biscayne Bay. Finally, there is room for another
smaller boutique hotel in one of the CBD's existing buildings.
Together these future hotel rooms could total 800 units. It is
assumed they would be developed over a period of time,
allowing the absorption of the Biscayne Bay and Miami River
frontage units to occur with minimal impact on existing
properties. A minimum of five years should be planned for
the absorption of these hotel rooms.
DOWNTOWN REDEVELOPMENT STRATEGY
DIDA N -11A.101
Rgure 20:
Downtown Mismi Hotel Rooms Supply and Demand
1994 to Septanbv 2000
2,500,000
i
2,000,000 " ® Room Supply
❑ Room Demand
1,500,000
i
o
1,000,000
i
500,000
i
0.
1994 1995 1996 1997 1998 1999 2000 YTD
PAGE 21
REAL ESTATE MARKET OVERVIEW
P)IATA iv'11AIVJ I
Residential Market Overview
The Central Business District (core downtown) currently has
approximately 300 residents. This compares to an estimated
4,500 in East Brickell, 5,200 in West Brickell and 2,500 in
Overtown. The total downtown population was estimated at
17,065 in 1997.
In a 1998 report prepared by Reinhold P. Wolff Economic
Research, Inc., the CBD was described as losing housing units
steadily since the early 1970s with approximately 239
residential units remaining in the area. The greater downtown
area has about 70 percent of its units in rental housing, a
decrease from 94 percent in the early 1970s. There has been
no new housing developed in the Central Business District in
over forty years.
In the last five years, five existing buildings have been
rehabilitated for low income housing. These include the
Everglades Apartments (42 units), the Cologne Building (24
units), Metropol Building (30 units), Congress Building (130
units), and Olympia Building (80 units). The 306 units rent to
low-income students, singles and small families. Unit sizes
range from 325 and 430 square feet for efficiencies to 1300 for
a three bedroom penthouse. Most of the structures were built
in the 1920s with renovations completed between 1994 and
2000. Rentals range from $300 to $1400 a unit, with most
units in the $500-$600 per month range. Occupancy is high,
with owners reporting an average of 95 percent. Approximately
two/thirds of the downtown core units are efficiencies, with an
additional 38 percent in one bedroom units.
Current estimated population of the downtown core is 832,
with a median household income of $8,212. With the U.S.
census showing no owner -occupied units in the downtown
core, the median rent is estimated at $251. Half of the units are
occupied by householders aged 65 and older. More than half
are Hispanic origin. Eighty-five percent of the existing
population reports having no car. There are few seasonal
residents in the downtown core.
Residential development in the greater downtown area,
including the Brickell, Overtown and Omni districts, shows
occupancy rates for buildings completed since 1990 at 92-98
percent. Condominium developments have contributed to an
average population increase of 375 annually from 1990 to
1997, according to Reinhold P. Wolff Economic Research.
Most of the new units were in the Brickell and Omni East
Districts.
While the core downtown experienced a net loss of population
and housing units, the net increase in the greater downtown
area has been 1500 units in the last decade. This represents
approximately 2.5 percent of the increase in housing in Dade
County. According to Wolff, it is reasonable to assume the
downtown could capture up to 10 percent of the County
market, if "there is an improved perception of the downtown
Miami area as a safe place to live." These numbers translate to
approximately 7,300 additional units in the greater downtown.
It is reasonable to assume that one/third of these units
ultimately could be located in the downtown core.
Downtown Employees
It is estimated that the greater downtown Miami area employs
139,500 persons in the area, with a projected average increase
of approximately three percent a year. In a 1993 survey of
DowNTOWN REDEVELOPMENT STRATEGY PAGE; 22 RFAt. ES -TATE MARKET OVERVIEW
downtown employees, 18 percent stated they would be very
likely to move to the downtown area if attractive housing were
provided.
A 1998 Bay Area Economics survey of downtown Miami
workers showed nearly one/fifth of the respondents were
interested in living in or near the downtown core. About 34
percent of the interested group earned $50,000 or more
annually, including 20 percent that earned $100,000 or more.
The Wolff report estimated the core downtown area would
have a demand potential for approximately 1300 additional
units through 2005. If plans were made to accommodate new
housing development through 2010, areas for approximately
2600 to 3000 units could be allocated in the downtown.
Downtown residential development is critical to the attraction
of retail businesses to the downtown. Interviews with retailers
indicates that an increase in the downtown residential base
would be needed to encourage their location in the CBD. Not
only would the additional households contribute to market
demand, they also would make the downtown environment
safer, more attractive and welcoming.
1)1)A .1��1i kNit
1500 — 2000 new residential units in higher density housing
with Biscayne Bay and Miami River views. These units
should be approximately two/thirds ownership tenure.
® 600-1000 new units in the CBD, which are medium density
and offer more affordable market rate ownership and rental
opportunities than the waterview residential
400-800 residential units through the adaptive reuse of
upper floors in downtown commercial buildings.
Residential Conclusions It is recommended the DDA plan for
an additional 3,000 units in the downtown. There should be a
variety of residential unit types, rental and ownership
opportunities, and housing for varying income levels. The
current population is majority low-income. The CBD's new
housing development over the last ten years have been six
projects, all targeted to low income households. Future
'i housing should be planned to provide a balance and diversity in
the downtown core. The following types of housing are
recommended to provide a CBD residential base.
DOWNTOWN _lt.faif:4:�;.(:UI'iVC(:�!'L' :'TR.'.'1-E Y VAGE, 23 Yi.[�;,pit., ��'•'>t'.t1'I'F .l�'�:�RT.�I a' y �i'C:I{V[f:li'
DOWN'TOWN1 �'Ac.,-li, 24
Redevelopment Requirements
REDINFLOPMENT
DDA MIAMI
ti MI
parks, pedestrian malls, and related open space. Most activities
REDEVEIAPMENT REQUIREMENTS do not focus on direct grants to a developer, but do participate
in financing.
Implementation of this reinvestment strategy and the
realization of the Central Business District plan will require the Development participation by the DDA and City in the
joint effort of Miami's city leaders and private investors. redevelopment of Miami's Central Business District could be
Experience in other cities shows that public/private through the following actions:
partnerships for downtown development often result in
business, residential and civic projects, which initially did not
seem feasible. The projects became feasible because of public
participation. Examples include Boca Raton's Mizner Park,
where the city participated in land acquisition and tax-free
financing; Baltimore's Inner Harbor and New York's Battery
Park where the cities prepared master plans, participated in
land assembly and created major public improvements; and
South Beach, where Miami's public participation in public
improvements and the financing of hotel rehabilitation has
created an area, which today stands on its own for attracting
private investment.
In determining the need for public participation, four basic
steps are taken. First, the total development cost for a project
is estimated. Then, the level of private financing available is
determined (private lenders base their participation on the
project's likely income stream or development value on
completion). This value is assessed by estimating the income-
producing capacity of the project, capitalizing net operating
income and estimating the loan value and equity financing
required. Thirdly, the gap between available private resources
and the project development cost is identified.
The private developer then seeks participation by the public
sector in covering that gap. Forms of participation include
cost-sharing, subsidies for land redevelopment, infrastructure
financing, parking garages and public improvements, e.g.,
® Preparation of a master plan for selected development
areas. It is recommended that a plan be prepared for the
Biscayne Boulevard mixed-use development area.
Capital improvements. The improvement of Flagler
Street is an important first step. Additional areas for
city attention include the Brickell extension to SE V d
Avenue and linking the Biscayne Boulevard frontage to
the park area. When plans are developed for the mixed-
use district, additional public rights-of-way
improvements likely will be identified for pedestrian
areas within the district.
Debt financing, through direct loans at below-market
interest rates e.g. EDC bonds or MPA bonds, or in loan
guarantees or credit enhancements, can contribute
significantly to reducing the gap in project development
costs.
• Public financing of parking facilities, which serve the
new and the older areas within the Central Business
District. When parking is provided at the base of a
structure, its construction can reduce the site
development and foundation costs for buildings, e.g.
apartments or hotel, built over the parking.
YpO\'JN'1'(14'iN IC1:171�;�'T;l,OPhifN'1 i '1'IZL1�`1'(i�l. A(, If /5)
® Facilitating the creation of a partnership of key
landowners, who would participate together as equity
partners with a developer to create successful
redevelopment projects. In addition to assisting with the
planning and legal structuring of an entity, the DDA
could administer an RFP process for the landowners. If
needed, TIF funds could contribute to the costs of site
consolidation, associated professional services and soft
costs of development. Quick take by eminent domain
may be necessary to complete a development's land
requirement needs.
® Reduced processing time and waiver of fees for project
approvals.
® Below -cost utilities for publicly -owned utilities
servicing designated development areas.
® Government commitments to rent space, particularly in
the renovated building areas, could contribute
significantly to the rental income stream needed to make
these smaller projects feasible.
e Waiver of property taxes for a designated period of time
would contribute to an increase in net operating costs.
e Economic development grants which contribute to the
reduction of project development costs.
Four of these actions, which may require further exploration
and would be particularly effective for city action, are
described below.
1)DA 1"AlAWTI
Landowner Partnership
Land assembly for new development is a key issue for the
downtown, particularly where the development of a mixed-use
district on Biscayne Boulevard is recommended. For a
developer considering redevelopment of existing properties,
there are issues that usually seem insurmountable. They
include unwilling sellers, land value speculation,
environmental liabilities, availability of financing and risk that
the project will not be approved. If the landowners are a part
of the development team, these risks can be minimized. This
also is achieved, if the developer purchases the property at a
value which supports an economically viable rent or sales
structure.
The DDA would encourage the landowners to form a
development partnership for the purpose of realizing value
from their properties through a joint redevelopment effort. The
DDA and city would agree to provide incentives to the
development, as required for economic viability. It is
recommended these incentives include planning and
environmental studies, public space improvements, low-
interest financing and the waiver of property taxes (on the
increased value of the property resulting from new
development) for a designated period. The DDA also could
provide the property -owner partnership with a RFP process for
attracting a developer partner for the project. An additional
public contribution could be the waiver of processing fees and
expedited processing through city departments.
DOWNTOWN RED.L: ELOPMEN"r' ['RA'I`GGV VAc_ E 26 EN'l'.KEQ1JIF2TATENTS
a.)t1.1,��11I
DEBT FINANCING
Debt financing through direct loans at below-market interest
rates is a strong redevelopment incentive. The example shows
the difference in development costs for an adaptive reuse
residential project, with the only variable being the amount of
interest for debt financing.
Market rate financing, which is typically debt, is one
component of the structure that makes up the rental rate. To
the extent that the debt requirement can be reduced, that
amount of reduction is directly applicable to reducing the
monthly rental rate.
Figure 21:
ADAPTIVE REUSE RESIDENTIAL EXAMPLE
INTEREST RATE COMPARISON
Source: Larson Realty Group
lii)� Itl'1'a)Vt%I.r uSi%l')It:t lsi:i)I'14'll_h"l' ;'!'lt��'1'l <al"
Market Rate
Belowanarket
Financing
Rate Financing
Total Development Costs
$
21,417,258
21,417,258
Anticipated Debt Financing
75.00%
75.00%
Debt Service Rate
8.50%
5.00%
Debt Financing Amount
$
16,062,944
$
16,062,944
Annual Debt Service
$
1,569,537
$
1,139,705
Number of Units
56
56
Burden per Unit per year
$
28,027
$
20,352
Burden per Unit per month (debt only)
$
2,336
$
1,696
Rental Reduction per month per Unit
$
640
Percent Reduction per month per Unit
27.39%
VU;E, Z7 1Ciil)6:t�1:1,OPitit:i l'l' kCl.:{!l.!lt?l;lEil? `''l":,
ECONOMIC DEVELOPMENT GRANTS
Economic development incentives are used by many
communities to make their locations economically competitive
for development. The example below shows how an economic
development incentive could be applied to a 200 unit market
rate residential development.
Figure 22:
Economic Development Grant Example
200 Unit Residential Development
$200,000 per unit
Source: Katherine Beebe & Associates
Annual Grant Amount
DDA MIAMI
It illustrates how incremental grant allocations can be made.
The grants run annually for a seven year period on a sliding
scale from 80 to 20 percent to contribute to the economic
viability of the project. It is assumed this annual contribution
would be only for a defined period as illustrated by the
example.
Year One Year Two Year Three Year Four Year Five Year Six Year Seven
100% Grant 100% Grant 80% Grant 60% Grant 40% Grant 20% Grant 0% Grant
$431,000 $431,000 $344,800 $258,600 $172,400 $86,204 $0
Cumulative Total
Year One through
Year Seven
$1,724,004
DOWNTOWN REDEVELOPMENT STRATEGY PAGE 28 REDEVELOPMENT REQUIREMENTS
f
V1)A I11111R11
Economic Development Grants
The City and DDA may consider providing economic
development grants to developers who meet established criteria
for promoting the economic development of the CBD through
the redevelopment of property consistent with the DDA's
redevelopment goals. The grant would be a contribution of
funds to reduce the gap between project redevelopment costs
and market -supportable rents or sales prices. The purpose is to
make the redevelopment of CBD properties economically
feasible and competitive with real estate development
opportunities outside the CBD.
Each candidate redevelopment property should be evaluated
for its contribution to the CBD's economic revitalization.
Examples of criteria which the City and DDA may use include
the following:
• Contribution to downtown employment
• Improving the quality and upgrading existing businesses
• Contribution to the city tax base over time
• Consistency with the DDA plan for the CBD desired uses
• Contribution to increasing the downtown residential base
• Provision of areas and activities which will increase the
use of the downtown beyond 9-5 working hours
• Contribution to pedestrian activity in the downtown
• Provision of a facility which enhances the quality of life
for the downtown
• Leverage investments in the downtown, creating a
catalytic impact
The matrix on page 69 in the Appendix shows how these
criteria could be ranked.
Public/Private Property -Ownership
Surveys of CBD property -ownership show that a major portion
of the land area is in public ownership. The City of Miami,
Dade County, and Miami Dade Community College operate
major facilities in the CBD. While these facilities are
important to the vitality of the downtown, they do not
contribute to the property tax base. When evaluating the CBD
for future redevelopment sites, it was assumed the public
facility areas would continue in their current use. Future areas
where private investment should be encouraged are focused
where properties have locational advantage and the potential
for investment in improvement.
Figure 23:
Public Ownership
Source: Katherine Beebe & Associates
A
V1
3
.11.OWNTOWty PAC r: 29 lit�:al:VF,LC)1?MCIV r tti:Ql.11Rh;M1:M r�;
Reinvestment Recommendations
��o���:vrc�ti��;�� p�tnr,`�.r:�.c>i>nti�r�,�r f��c�zn•tr.c�°
DDA MIAINIII
lAAlI
REINVESTMENT RECOMMENDATIONS
Creating a Vibrant Central Business District
A vibrant downtown is a 24-hour community, with a mix of
activities. It is a place where people want to live, with housing
for downtown employees and for those who seek an urban
setting.
Shopping to support the residential community and also as a
destination for those who live farther away is important. To
sustain a lively environment, restaurants social and cultural
activities that are active in the evening hours are needed. This
reinvestment strategy for Miami's Central Business District is
based on a plan for the area which emphasizes the downtown
area's public spaces, streets, and parks. Taking advantage of
the city's existing infrastructure and the beautiful waterfront
setting, the plan proposes new development and upgrading of
existing areas to create an "urban diversity to reach all sectors
of the marketplace and citizens of the city". The plan, prepared
by Ehrenkrantz Eckstut & Kuhn, is shown on the following
page.
l)0Y-.Nl0W[gREtyleVEL{)t'1.N4rN STRAIT:(!1 VF1(Ai:30 REINV17SIANIEN
Figure 24:
CBD Redevelopment Concept
Source: Katherine Beebe & Associates
Ehrenkrantz, Eckstut & Kuhn Architects
r......., - - .d -ra ',: �., I -Z �� �7t
DIM NAJAMI
t*A(-;.P!' 3-1 Oct S
is ,� 17; A<. INI I A iN9 t
Recommended Redevelopment
The market overview and analysis of development potential
indicates the following uses should be included in the
redevelopment strategy for the CBD. The strategy represents a
"build -out" picture and would be developed in phases, over
time, as market conditions warrant. Unit counts and square
feet are approximate and provided to give an indication of
scale.
• 1800 new residential units, with approximately two/thirds
of the units in condominium or cooperative ownership and
the balance for rental. Recommended for Biscayne and
Flagler frontage as well as along the Miami River, these
units would be in high rise structures with views of the
river, bay and downtown. Units should draw seasonal and
permanent residents.
• 800 new units at separate locations in the Central Business
District, with approximately sixty percent in rental units
and forty percent in home ownership. These units would
be priced lower than the water -view residential and appeal
to employees in the area
• 600 units created through the adaptive reuse of upper floors
in existing commercial buildings. Priced for moderate and
middle-income households, these units would likely attract
more singles and couples without children.
0 800 additional hotel rooms, recommended with Biscayne
Bay and Miami River frontage and including a small
boutique hotel within the business district. Rooms would
be marketed to tourists and business-related users.
® 600,000 s.f of office, with most of the space in one to two
new office buildings to be located on the Miami River, with
views of the Bay. The remainder would be in renovated
buildings within the downtown core.
• An additional 200,000 sf of amenity retail, supported by
the increased residential community in the CBD as well as
by downtown employees and visitors to the area. The retail
would be located throughout the downtown at the first floor
level.
• 350-400,000 square feet of premium outlet retail to be
located at the first and second floor levels of mixed-use
buildings on the Biscayne Bay frontage. The premium
outlet retail would work with Bayside to create a shopping
destination for local residents and visitors to the area.
Alternatively, future development of retail space within the
ten mile market area may result in the allocation of more
CBD first floor space to restaurant and entertainment uses.
6y.!tiCE32 RV i n VENFINIIi`. ���� ��. �`_�.��}y�.l���i. �l�il���/ OW,
'.l
• Jewelry District retail would result from 110,000
square feet of additional retail within the existing
jewelry district blocks. Stores marketing luxury goods
would compliment jewelry retailers.
Figure 25:
Potential Uses at "Build -out"
Source: Katherine Beebe & Associates
Use
RESIDENTIAL
Market -rate Condominium /
Co-op and Rental
RESIDENTIAL
Market -rate Rental and
Ownership
RESIDENTIAL
Market -rate Rental and
Ownership
HOTEL ROOMS
OFFICE
One to Two New Buildings
And Existing Renovations
AMENITY RETAIL
Existing CBD Space
PREMIUM OUTLET RETAIL
New Development with
Restaurant / Entertainment
JEWELRY DISTRICT RETAIL
Existing CBD Space
TECHNOLOGY/
COMMUNICATIONS
Two Major Locations
Location
Biscayne Frontage
Flagler Frontage
Miami River Frontage
Central Business District
RRA MIAMI
Number of Units /
Square Feet
1800 Units
800 Units
Upper Floors of Existing 600 Units
Commercial Buildings
Biscayne Bay Frontage
Miami River Frontage
Central Business District
Miami River Frontage
Biscayne Bay Frontage
Renovated Downtown Buildings
Downtown at street level
800 Rooms
600,000 Square Feet
200,000 Square Feet
Biscayne Bay Frontage 350,000 to 400,000
Square Feet
Central Business District 110,000 Square Feet
Central Business District 270,000 Square Feet
l)C)C�4'N'C`C►��1'N .l�t::l):CS'l :I..OPh1Xt:iv`T .�i'.l'Rt1`I'EGS' PAG.O: 33 1��;:[IV YI:S"I'iVil?N'l' .kl f CC)N[1bi["M[)ATIONS
4)X) N-1i&fflI
Recommended Development: Waterview Residential
Figure 26:
Waterview Residential
Source: Katherine Beebe & Associates
Description
1800 new residential units, with approximately two/thirds of
Implementation Requirements
Waterview residential is recommended as an element of mixed-
use development proposed in two major districts: Biscayne
Bay frontage and Miami River frontage.
n�
Miami River frontage is largely incorporated in the One Miami �^
Center project, a four block area east of SE 2" avenue and
south of SE 2nd street. Developer plans --which include hotel,
residential, office and retail uses—are being reviewed by the
city and in the process of finalizing financing. The project's
first phase includes a residential and office high rise with
retail and restaurant located on the first floors.
Biscayne frontage development is recommended as a mixed-
use district comprising approximately six blocks between
Biscayne Bay Boulevard and SE 2nd avenue. Implementation
will require the cooperation of property -owners as participants
in redevelopment. To better determine the location of j
redevelopment parcels, building densities, requirements for 1
public improvements, infrastructure needs and project
financing, a site plan for the district is needed. Project
financing may require the application of the following
incentives to encourage the development of market -rate
housing in the CBD:
the units in condominium or cooperative ownership and the • Creation of a city financing entity, which would provide
balance in rental units, low interest financing to projects meeting the downtown
district's economic development goals, e.g., market -rate
Recommended for Biscayne and Flagler frontage as well as residential development.
along the Miami River, these units would be in high rise • Tax abatement or an equivalent economic development
structures with views of the river, bay and downtown. Units subsidy.
should draw seasonal and permanent residents. Average unit 9 Waiver of development impact fees.
value is projected to be $300,000.
DOWNTOWN 11A.G .:',.1 IIr':INVY. STI A1,NT ItI",C011AAEN1) AT101.1S
D A..R.'Imm-f
• Waiver of building permit fees.
• Expedited process for site plan review and permitting.
DDA Actions
• Prepare plans for the Biscayne Bay mixed-use district,
• Provide technical assistance to the property -owners for the
formation of an entity to represent their shared interests in
future development.
• Administration of an RFP process for the land-owning
entity to facilitate the redevelopment of the parcels.
• Prepare plans for the recommended Brickell traffic circle to
provide for access to One Miami and the improvement of
adjacent frontage.
• Extend Flagler street improvement area south along both
sides of SE 2nd avenue from Flagler to the proposed circle.
DOWNTOWN:t�[ i�c;v�.:c,o[�nn�:�v.r �i.r[inr:�:c,�° Ijne:E 35 REINNVUSIMuENT RrcOn-rMENDATIONS
00A k jj jy9T
WATERFRONT RESIDENTIAL
It) tib MIAMI In„
LAND USE INFORMATION
$
Taal
1,658,625 S
Per Unit
13,269
Level
GSF
Site area:
15,000 square feet
Residential
Zoning:
Mlzed use
PROGRAM SUMMARY
No. or Stories:
20
57,990,000
456,900
Level
15,000
FAR
20
Level 3
Level
Use
Units
GSF
ArchlteclurelJEngineedng
Level 1
Retail/Function
Retail space
15,000
6UILDINO USE INFORMATION
Level 2
Parking
60 spaces
15,000
Gross Building Area:
285,000 square feel
Financing Costs
Level 3
Parking
60 spaces
15,000
Retail space:
15,990 square feet
Level 4 -19 each
Residential
8 units
15,000
Condominium Units:
units
Roof
_ Terrace
15,000
240,000
Perking Spaces:
spaces
TOTAL
45,633
285,000
DEVELOPMENT COST INFORMATION
AREA SUMMARY
Site Costs
$
Taal
1,658,625 S
Per Unit
13,269
Level
GSF
Parking/Misc.
Retail
Residential
Level 1
15,000
Construction
57,990,000
456,900
Level
15,000
Level 3
15,001)
ArchlteclurelJEngineedng
3,420,000
27,360
Level 4 - 19 each
15,000
I
Taxes and Insurance
605,750
4,846
Financing Costs
4,104,000
32,832
ROOF
0
'
Marketing and Leasing
555.000
4,440
TOTAL
285,000
30,000
15,000
240,000
General and Administrative
5,729,187
45,633
Total ParkingfMisc.
30,000
TOTAL DEVELOPMENT COSTS
S
73,072,562 S
584,580
Total Retail
15,000
FINANCIAL SUMMARY
Total Residential
240,000
,
Revenues:
UNIT PRICING SUMMARY
Unit Sales
s
84,750,000
Nae 1
9,990,990
Nae 2
ToRetail
Total Revenues
$
93,750,000
Level
Terms
$/Sf
Retail
Residential
Level
Lease
$ 30.00
Costs:
Level 2
Purchase
$10,000 Be
Equity Returns
(8,789,063)
Note 3
Level 3
Purchase
$10,000 ea
Development costs
(73,072
Nae 4
(87,881,824).624)
Level 4 - 10 each
Purchase
$ 275.00
- •-
Level 11 -14 each
Purchase
$ 300.00
• ... . .
Projected Gap Requirements
$
11,666,376
Level 15 -19 each
Purchase
$ 325.00
Roof
Subsidy Analysis:
Total Revenues Per unit S 750,000
Taal Coate per unit 9 (054,893) TOTAL 71,250,000
Total Subsidy per unit S 95,107
Average Price per square foot $296.87 j
Ndes:
1) See the Unit Pricing Summery for pricing details
2) The Retail space Is capitalized at 10% to produce a PV for the analysis:
i
Year 1 NO[ $ 900,000 15,000 SF X $30.00
Cep Rete 10 nu-.,
Year 1 Value $ 9,000,000
i
3) The Onancable portion of the project is anticipated to be Bnanced as follows:
Construction Financing 70,312,500 7t1%
DOWNTOWN RE'D ?VELOPMENT ST'IZA'fEC' I',Acal, 36
Recommended Development: Intown Residential
Figure 27:
Intown Residential
Source: Katherine Beebe & Associates
�I Esmog I%1tftdUWW
�s+.e LIZA] (fitvrvn
Lf�j� `^^-- nrsroerrruL
�t'q`A4i1H11{ rlpif 7S (y!7 iii It �'/4 m y �j k
P
Aw
' syi
Description
Approximately 800 new units are recommended for
development at locations in the Central Business District,
which currently are vacant or under-utilized. One is in
connection with the Miami Parking System's location for
Garage No. 1, which is slated for rebuilding. A second is
adjacent to the Intermodal facility near the court facilities and a
third is proposed next to the Gesu Church. It is recommended
the new housing be market rate with approximately sixty
IMA M.I,kml
percent in rental units and forty percent in home ownership.
These units would be priced lower than the water -view
residential and appeal to employees in the downtown area.
Implementation Requirements
The creation of moderately -priced market rate housing in the
CBD will require financial incentives as well as the
cooperation of project property -owners. The following
incentives are recommended for implementation:
• Creation of a city financing entity, which would provide
low interest financing to projects meeting the downtown
district's economic development goals, e.g., market -rate
residential development.
• Tax abatement or an equivalent economic development
subsidy.
• Waiver of development impact fees.
• Waiver of building permit fees.
• Expedited process for site plan review and permitting,
DDA Actions
• Work with the Miami Parking System and property -owners
to develop an implementation plan for each project area.
• Provide technical assistance to the property -owners for the
pre -development work needed to define the residential
project plan and financing requirements.
I)OWNTOWN_IIru:[ VI!J.,0I",ME_,NT STRAT.EG PAc.:r: 37 l ><;.rr�tiTr:sr rr:�v� :f cconnIr:,NDATIONS
Recommended Development: Adaptive Reuse Residential
Figure 28:
Adaptive Reuse
Source: Katherine Beebe & Associates
Description
Adaptive reuse of upper floors in existing commercial
buildings throughout the CBD is estimated to generate
approximately 600 new residential units. Priced for moderate
and middle-income households, these units are estimated to
average $130,000 in value. They are likely to attract singles
and couples without children. Employees in the greater
downtown area should be a major source of market demand.
The areas generally designated as containing buildings suitable
for adaptive reuse are shown in the plan. Examples of
buildings include the Capitol and Flagler, Old Centrust and
McCrory buildings in the Jewelry District. In most cases, these
are vacant or underutilized office areas with high vacancy
rates.
Implementation Requirements n!�
Conversion of these buildings to residential reuse will require
incentives to create market rate units. Sample development
pro -forma show the gap between redevelopment costs and
market -supportable rents needs to be reduced. One tool is the
use of historic tax credits for the rehabilitation of the units.
Additional incentives, which could be provided to building
owners include the following:
• Provision of "seed money" to cover due diligence needed
to determine structural condition, building plans, market
demand and financing requirements.
• Low interest financing for market -rate housing
• Development impact fee waivers for market -rate housing
• Waiver of building permit fees for market -rate housing
• Tax abatement or equivalent economic development grant
for market -rate housing mixed with first floor retail use.
DDA Actions
• Identify buildings suitable for adaptive reuse
• Provide a "seed money" fund for use by building owners
and investors with plans to redevelop upper floors as
market rate residential to prepare building plans and
perform due diligence.
• Work with the city to establish low-interest loan fund for
the CBD district.
• Plan streetscape and public improvements to support new
building development.
• Establish a building fagade improvement program for
historic structures.
0OWNTOWN lU-w ta.oi,*i.LN1 STRAIIAA' ['A( -;E 38
DDA MIAN11
Sample ProForma
ADAPTIVE REUSE RESIDENTIAL
PROF(IMIA- ADAPI I
rrY';r MIAMI DDA
PROGRAM SUMMARY
LAND USE INFORMATION
.....troop
square to I at
Level
Use
Units,
GSF
Zoning:
mixed-use
Level 1
Retall/Function
Retail space
15,000
No. of Stories:
g
Level 2
Residential
8 units
15,000
FAR
a
Level 3
Residential
8 units
15.000
Level 4
Residential
8 units
15,000
BUILDING USE INFORMATION-
Level 5
Residential
8 units
15,000
cross suiwing Areal
120,000 aqua re feet
Level 6
Residential
8 units
15.000
Retail Space:
15,000 square feet
Level 7
Residential
8 units
15,000
Rental Unl1w,
9b units
Level 8
Residential
8 units
15,000
Parking Spaces:
n spaces
Roof
Terrace
TOTAL
120.000
DEVELOPMENT COST INFORMATION
Told Par t"
AREA SUMMARY
Acquisition Costs $
*2.863.800 $ 47,389
CcnstrucHon
14,400.000 257,143
Level
G8F
ParldRg/M*,
Retail
Residential
Level 1
15,000
Archlieclursi/ftinearing
884,000 15,429
Level 2
15,000
Taxes and Insurance
225.200 4,021
Level 3
15,000
Financing Coos
1,030.000 18,514
Level 4
15,000
Marketing and Leasing
555,000 9.911
Level 5
15,000
ki
I o 1;!i I
General and AdmAnistrallve
1.882,458 30,044
Level 6
15,000
p
61
TOTAL DEVELOPMENT COSTS $
21.417,256 $ 382,451
Level 7
15.000
Level 8
15,000
r 1!
FINANCIAL SUMMARY
Roof
0I
I
0
Revenues.
TOTAL
120,000
0
15,000
105,000
Residential Value $
13,230.000 Note 1
Retail Value
3,000,000 Note 2
Total Parking/Misc.
0
Total Value $
16,230,000
Total Retail
15,000
Costs:
Total Residential
105.000
Equity Returns
(608,625) Note 3
Development Costs (21.417 2581 Note 4
(22.025,083)
UNIT PRICING SUMMARY inionthly rental)
projected Gap Requirements
Level.
Terms
Ver
Retail
Residential
Subsidy Analysis.,
Level i
Lease
$ 20.001'ji!
- I
rl
Total Revenues W unit 6
289.821
Level 2
Purchase
$ 1 ky)
,,, ".4,
Total Costs per unit
Total Subsidy per unit 6
CW
(393.319)
(103,498)
Level 3
ase
Purchase
$ 1.05
15 P.11
ri
Level 4
Purchase
$ 105
a
1', f.,4r I
Wait;
Level 5
Purchase
$ 1.05
"i :,.[I
1) The residential space Is Capitalized at 10% to produce a PV for the analysis:
Level 6
Purchase
$ 1.05
Year i Not $
1,323,000 105.000 SIX 1.05 per square foot
Level 7
Purchase
$ 1.05
"•I.
Cap Rate
Year I Value S
10.0111II,
13,230,000
Level 8
Purchase
$ 1.05
Roof
2) The Retail space Iscapitailzed at 10%toproduce a PV fa the analysis:
TOTAL
$ 110,250
15,000
110,250
Year I NOI 111
300,000 15,000SFX$20
Cap Rate
Year I Value $
10.00/1
3.000,000
Average Price per square foot
$ 1.05
DOWNVOWN -RE-D EV'LLOPNIENT SINATEXTV llm;ir 39 REINVESYMENT
1D1)rE I�l�,tr�-u
Recommended Development: Hotel
Figure 29:
Hotels
Source: Katherine Beebe & Associates
Description
Approximately 800 additional hotel rooms are recommended in
the mixed-use areas with Biscayne Bay and Miami River
frontage. In addition, a smaller boutique hotel within the
business district could be supported. Rooms would be
marketed to tourists and business-related users. Hotel outdoor
amenities, including pool and recreation areas, would be
necessary to attract lodgers.
Waterview hotels would be developed as high rise structures
with retail and restaurant/entertainment on the first and second
levels. It is expected the riverfront area would support one
hotel and the Biscayne Bay frontage one to two hotels.
The two waterview districts where future hotel development is
recommended is shown on the plan. The boutique hotel would
be located in a historic structure in the CBD.
Implementation Requirements
Hotel development requires the improvement of the CBD's
general environment and image. To market the hotel, the
surrounding location must be made more attractive. Open
space and streetscape improvements should be installed on SE
2°d avenue to link the riverfront development area to the
Biscayne frontage. The improvements also will carry the
positive image of the Brickell district north into the CBD.
In addition to these activities, the following incentives may be
required to make hotel development economically feasible in
this area.
• Creation of a city financing entity, which would provide
low interest financing to projects meeting the downtown
district's economic development goals.
• Tax abatement or an equivalent economic development
subsidy.
• Waiver of development impact fees.
• Waiver of building permit fees.
• Expedited process for site plan review and permitting.
DOWNTOWN PAGE 40 1Umvr.;ti'nvwN'rRrComrvirNDATIONS
tit
CpliANtrr\itT
DDA Actions
® Prepare plans for the Biscayne Bay mixed-use district.
O Provide technical assistance to the property -owners for the
formation of an entity to represent their shared interests in
future development.
® Administration of an RFP process for the land-owning
entity to facilitate the redevelopment of the parcels.
® Prepare plans for the recommended Brickell traffic circle to
provide for access to One Miami and the improvement of
adjacent frontage.
Extend Flagler street improvement area south along both
sides of SE 2°d avenue from Flagler to the proposed circle.
PAGE 41 W:tKvT, si,mFN'.0 1U.-co.v[tWEINDATION.S
1) Kik N1 I lk (o I
Sample Hotel Pro -Forma
Level
10,000
Revenues:
Level 4
HOTEL
Hotel Value $ 16,665,174 Note 1
Level 5
10,000
-A\II'll 11;VI"IHNI\ 1111V(',,�,i IM:(•i 100
Level 6
Level
10,000
7
a1Ar.0 IA
PROGRAM SUMMARY
Level 8
10,000
LAND USE INFORMATION
Level 9
Level
Use
Units
GSF
Site area:
10,060 square feel
Level 1
RetaiVFunction
Retail space
10,000
Zoning:
Na of stades:
twxeduse
15
Level 2
Hotel
20 rooms
10,000
FAR
is
Level 3
Hotel
20 rooms
10,000
Total Revenues per room S 66,761
Level 14
Level 4
Hotel
20 rooms
10,000
BUILDING USE INFORMATION
Level 5
Hotel
20 rooms
10,000
Grass Building Area:
150.000.squere feet
Level 6
Hotel
20 rooms
10,000
10,000
Level 7
Hotel
20 rooms
10,000
Retail Space:
o square fed
Level 8
Hotel
20 rooms
10,000
Hard Rooms:
Parking Spaces:
250 `earns
0 spaces
Level 9
Hotel
20 rooms
10,000
StabltizodValue $ 16,695,174
Level 10
Hotel
20 rooms
10,000
Level 11
Hotel
20 rooms
10,000
DEVELOPMENT COST INFORMATION
Level 12
Hotel
20 rooms
10,000
Total Casts Per Room
Level 13
Hotel
20 rooms
10,000
Site Costs S
1,105,750 S 4,423
Level 14
Hotel
20 rooms
10,000
Construction
22,500,000 99,000
Roof
Roof
TOTAL
140,000
ArchiledureUEngineedng
1,350,000 5,400
Taxes and Insurance
406,250 1,625
Financing Cosis
1,620,000 8,480
Marketing and Leasing
555,000 2,220
AREA SUMMARY
General and Administrative
2,315,645 9,383
TOTAL DEVELOPMENT COSTS S
29,882,645 S 118,531
Level
GSF
Parking/Misc.
Retail Hotel
Level
10,000
Level'3
10 000
FINANCIAL SUMMARY
Level
10,000
Revenues:
Level 4
10,000
Hotel Value $ 16,665,174 Note 1
Level 5
10,000
Retell Value o
`dal value 16,095,174
Level 6
Level
10,000
7
10,000
Cods:
Level 8
10,000
Equity Returns (1,566,839) Note 2
Level 9
10,000
I ` - '�
Development Costs (29,882.645) Note 3
(31,451,484)
Level 10
10,000
Level 11
10,000
�• 1: I lu'
Projected Gap Requirements $ (14,756,309)
Level 12
10,000
;
SubsidyAnelysts:
Level 13
10,000
' ,:;il:V.
Total Revenues per room S 66,761
Level 14
10,000
I ;;07
Total Casts per room (125.806)
Roof
0
Taal Subsidy per roan S (59,625)
TOTAL
140,000
10,000 0 130,000
Nates:
1) The hold income Is capitalized at 10% to produce a PV for the analysis:
Tota) Parking/Misc.
10,000
Occupancy 75%
Total Retail
0
Average Deily Rale $ 105.00 ' information from 2000 comparables
Total Residential
130,000
Stabilized NOI $ 1,669,517
Cep Rale 10,00%
StabltizodValue $ 16,695,174
2) The project Is anticipated to be financed as fellows:
Financing $ 19,423,719 65%
Equity Financing S 10,456,926 35%
Equity Return 15.00% per annum
Annual Return Required S 1,586,539
3) For Development Cods, see Construction cudgel spreadsheet
I:I<}WN I'OWNJL?I?I)i?VI LOI'f�9:I;1`l'I''SIRATECY
I'M T 112
REINVE.-S I'NTENT lti:('(.}iN1�9l.Nllf3'1.`I.0"l
Recommended Development: Amenity Retail
Figure 30:
Amenity Retail
Source: Katherine Beebe & Associates
Description
An additional 200,000 s.f of amenity retail, supported by the
increased residential community in the District as well as by
downtown employees and visitors to the area. The retail would
• be located throughout the downtown at the first floor level.
U
The retail market overview showed the amenity retail should
include a quality grocery store, more neighborhood restaurants
and personal services for residents. It is expected most of this
retail would be located west of SE 2nd avenue and north of the
Flagler corridor.
DI)A.M I M.[
The presence of these types of businesses in the CBD are
important to support residential development and to create an
attractive environment for larger businesses whose employees
also are customers for these services.
Implementation Requirements
Site plan review requirements should support the development
of retail space on the first floor of commercial and residential
buildings. To assure that these type of businesses become a
part of the CBD business mix, a tenant attraction program
should be instituted. Most of the amenity -retail will be locally -
and independently -owned. In some cases, businesses in other
neighborhoods need to be encouraged to locate a second
establishment in the CBD. Some communities find the
attraction of independent businesses requires small business
loan assistance plus work with the building owners.
DDA Actions
The DDA could facilitate the location of amenity retail in the
downtown with the following activities:
® Identify areas in the CBD, where amenity retail could be
located. Areas offering opportunities for clustering service-
oriented businesses are most attractive.
® Work with the empowerment zone and other economic
development incentive programs to attract these businesses
to provide financial support and technical assistance to
these types of businesses.
e Develop a tenant attraction program with the building and
property -owners, where amenity retail businesses could
locate.
DONYN-TOWN 14,C):u,vrt,orMC4N`.[• STRA'[` AN I'.�C;:G 13 11E,:[iVV1?5'.CtVtli�l'l'
��Pyi4 (��.tiYivlE
Recommended Development: Office
Figure 31:
Office
Source: Katherine Beebe & Associates
YA,I'AI[NLRe'.. €� i.!LfJ Rt• ... ^uii4 ��. 1i:s'F. �.
f 1a
Implementation Requirements
New office development on water view frontage may need
some assistance to be competitive with locations in the Brickel1
area and north of the CBD along the bayfront. The following
incentives may be considered to facilitate new office
development in the river view area and for rehabilitation of
upper floors in existing older office buildings in the CBD.
• Creation of a city financing entity, which would provide
low interest financing to projects meeting the downtown
district's economic development goals. Funds would be
available for new development or for rehabilitation of
existing buildings.
• Tax abatement or an equivalent economic development
subsidy.
• Waiver of development impact fees.
• Waiver of building permit fees.
• Expedited process for site plan review and permitting.
DDA Actions
Description • Prepare plans for the recommended Brickell traffic circle to
provide for access to One Miami and the improvement of
It is recommended the redevelopment plans incorporate adjacent frontage.
approximately 600,000 s.f. of office development. It is • Extend Flagler street improvement area south along both
anticipated most of the space will be in one to two new office sides of SE 2nd avenue from Flagler to the proposed circle.
buildings to be located on the Miami river frontage, with views • Work with the owners of existing under -performing office
of the Bay. Current plans for One Miami contain an office buildings to determine if low-interest loans for
element in the mixed-use project. The remainder would be in rehabilitation would encourage the improvement of their
renovated buildings within the downtown core. office areas.
DOW NTOWN 111A)fNLl`A(;ie 44 ElIVV1+;ti'I' IIFINN. ItE( `(HY)()Ns
Sample ProForma
COMMERCIAL OFFICE
SAMP1.H PRI IFORA1.1NJ. NIiW CONS I RI IC'I ION
c'ITY 1)P MIANH DDA
LAND USE INFORMATION
Zoning: 7Officl square eel
Zoning: OMca
No. of Slodes: 13
FAR 13
BUILDING USE INFORMATION
Trial
Grose B ding Area:
326, *gore feet
Retail Space:
Office Space (NRA):
15.000 square fest
Parking Spacer:
202,500 square feet
175.00
2.00 spaces
DEVELOPMENT COST INFORMATION
FINANCIAL SUMMARY
Revenuer
Office Space Value
Trial
Per $F
Site Code
9 2,514,375 ;
7.74
Construction
58,875,000
175.00
Architectural/Erglneedrg
3,412,500
10.50
Taxes and Insurance
50,000
0.16
Financing Cats
4,095,000
12.80
Mrkating and Leasing
558,000
1.71
General and Administrative
5,742,859
17.87
TOTAL DEVELOPMENT COSTS
; 73,244,534 ;
225.37
FINANCIAL SUMMARY
Revenuer
Office Space Value
S 68,600,000
Nets 1
Retell Value
3,760,000
Not* 2
Trial Value
S 02,25.000
Code:
Equity Returns
(2,334,375)
Note 3
Development Costs
(73 244,834)
Note 4
(75,878,BOp)
Prajecled Gap Requirements: S (13,328.BODI
Subsidy Analysis:
Told Revenues per of $ 191.64
Trial Costs per of (232,85)
Total Subsidy per sf ; (41.01)
Ngss;
1) The office space Is capitalized at 10% to produce a PV for the analysis:
Stabilized NOI $ 5,85.000 ;20 Per square foot
Cap Rate UU 4
Year 1 Value ; 68,50.00D
2) The Retail space Is apllalized at 10%to produce a PV for the analysis:
Year 1 NOI S 375,000
Dap Rale 10.010%
Year 1 Value S 3,750,000
3) The finencable portion of the project Is anticipated to be financed as follows:
Construction Financing 46,687,500 HOA
Equity Financing 15,562,500 25%
Equity Return 15.00% per annum
Annual Return Required 2,334,375
4) For Development Costs, see Construction Budget spreadsheet
DD.A .MuMCI
PAI(:[I:45
��Q�;'a ;1'Q1�11�•1I
floor space currently occupied by non -supporting uses. It is
Recommended Development: Jewelry District Retail estimated this would add approximately 100,000 square feet of
retail to the district and improve the quality of the retail
Figure 32• environment on Flagler.
Jewelry District
Source: Katherine Beebe & Associates IMplementation Requirements
V7 7 The creation of this four block district would require the
relocation of non -supporting uses to other areas over time. The
DDA should work with the building owners to create a
program for attracting the jewelry and luxury goods tenants to
the downtown. The program's goal is to establish a clearly
identifiable and well-publicized district, where customers are
attracted to the area as well as to a single business. Each
Vis. •y�. JL .
retailer would be more successful in the district environment,
than as a single business surrounded by non -supporting uses.
DDA Actions
( r a
The DDA program should include an identification of existing
jewelry businesses outside. the four block district, which may
�p� )3 i be encouraged to move into the four block area. In some cases,
businesses may be given incentives to swap locations. A
targeted business attraction effort also will be needed to bring
new luxury good retailers into the area.
Description
It is recommended that specialty retail be concentrated in the
Jewelry District, the area bounded generally by SE 2nd and
Miami Avenues and centering on Flagler. With most of the
existing jewelry businesses located in this area, there is an
opportunity to create a major district, which would attract even
more luxury market buyers to the area. New jewelry and
related luxury item businesses would locate in first and second
Promoting the area is important to the success of the District.
It is recommended the DDA work with the Jewelry District
businesses to create a marketing program for the district.
Economic development incentives may be considered for the
location of existing businesses into the district or to attract new
businesses to the area.
DOWNTOWN IZLI)EVELOPMENT STRAI'ECY PAGE -16 HEINVEISTIVIENT I.ZI.,(,(.)M ll;NlaA.'I'laON,
I
Recommended Development: Premium Outlet/Restaurant
and Entertainment
Figure 33:
Premium Outlet / Restaurant & Entertainment
Source: Katherine Beebe & Associates
Description
`1Approximately 350-400,000 square feet of premium outlet
_Qretail is recommended for location at the first and second floor
levels of mixed-use buildings on the Biscayne Bay frontage.
The premium outlet retail would work well with Bayside
Market Place to create a shopping destination for local
residents and visitors to the area. The larger floor area
businesses in the premium outlet area would complement
tenants in Bay Side Market Place. A share of the space also is
J) RA P:'It,�INi[
allocated for restaurant/entertainment and related uses, which
should find the bayfront location in new mixed-use buildings
attractive.
Physical improvements on Biscayne Boulevard should link the
two shopping areas.
Implementation Requirements
Bayfront mixed-use development requires the improvement of
the CBD's general environment and image. To market the area
for retail development, the surrounding environment must be
made more attractive. Open space and pedestrian
improvements should be made within the mixed-use area and
on edge streets, where the new development joins the existing
downtown buildings. It also is important to link the riverfront
development area to Bay Side.
Major project development, which includes retail, residential
and hotel uses, will require the cooperation of existing property
owners. It is recommended the DDA work with the owners to
structure their participation in a development partnership to
achieve the proposed mixed-use projects.
To better determine the location of redevelopment parcels,
building densities, requirements for public improvements,
infrastructure needs and project financing, a site plan for the
district is needed. Project financing may require the
application of the following incentives to encourage the
development of market -rate housing in the CBD:
• Creation of a city financing entity, which would provide
low interest financing to projects meeting the downtown
district's economic development goals, e.g., market -rate
residential development.
I)UWN.fC)W.N.I�I:DIla�[?LQPAC:1!;N'.I' �9'.l'KA'['C:C:Y PAGE 47{C,:INYI:S'[':NIJS.N`.['.Itl',COiVLlkiI.NDA'[':[QNfi
i�tb;� h'tlAn�!
• Tax abatement or an equivalent economic development
subsidy.
• Waiver of development impact fees.
• Waiver of building permit fees.
• Expedited process for site plan review and permitting.
DDA Actions
• Prepare plans for the Biscayne Bay mixed-use district.
• Provide technical assistance to the property -owners for the
formation of an entity to represent their shared interests in
future development.
• Administration of an RFP process for the land-owning
entity to facilitate the redevelopment of the parcels.
• Prepare plans for recommended public improvements
• Extend Flagler street improvement area north along both
sides of SE 2°d avenue from Flagler to NE 6h street.
DONNIhNI'UW1'i PACK -I t; VIIIA NVESTIVIKIv'1' ddl?f:f)i�11171.Nt1A (`!C):V!�
Recommended Development: Technology/Communications
Figure 34:
Technology / Communications
Source: Katherine Beebe & Associates
_�
y;t 1
i Nfa Ips} ;SuY9 iyyL{�
r rel Dt e I3 ' `
c r y VO
1
Description
Technology/communications buildings are recommended for
two areas in the CBD. Containing businesses and equipment
related to the telecommunications industry, this type of
building is being located in downtowns where there is a fiber-
optic route, existing infrastructure and easy access to the
metropolitan area.
Street level retail is recommended for the first floor of these
buildings, so they contribute to the CBD's image as a lively
II)OW vTovi%rr
IMA PO.T,tINIV
and populated place. Approximately 270,000 square feet is
recommended in the two locations.
Implementation Requirements
The DDA should work with the property owners to promote
the development of these two areas with telecommunication
facilities. Some incentives may be needed to bring the
businesses into the CBD. These should be applied only if they
provide for active first floor uses to increase the vitality of the
downtown area.
• Creation of a city financing entity, which would provide
low interest financing to projects meeting the downtown
district's economic development goals, e.g., employment
and improved active street level environment.
• Tax abatement or an equivalent economic development
subsidy.
• Waiver of development impact fees.
• Waiver of building permit fees.
• Expedited process for site plan review and permitting.
DDA Actions
• Provide technical assistance to the property -owners for the
attraction of telecommunications businesses to the CBD.
• Extend Flagler street improvement area to link to these
potential redevelopment sites.
DOWNTOWN REA)EVli;l.OP11 EN'r S•r►r_A•rlx.Y -50 ���:i CVv►:�� ��►i',v1 ��r:�.c�n><<�i>,ti►►�� r►►�r,ti
Economic Benefits
w ITf.,Ow U,4. R ED.Ce, VPA., OVAIEN A'TFG'.V
DDA IVIIAMI
ECONomic BENEFITS
Full implementation of these recommendations will bring
considerable economic benefits to the downtown, City of
Miami, Dade County and State of Florida. While total
redevelopment will take at least ten years to accomplish, it
is important to recognize that these benefits will accrue
over time. Also, the alternative to investing public and
private sector resources in the CBD is to see property -
owners and local government miss the opportunity to
capture these benefits.
Tax and employment benefits are identified by use type
and shown for each taxing jurisdiction. These benefits are
provided in today's dollars on an annual basis for the CBD
at full build -out. In addition, there are purchasing dollars,
construction -related tax dollars and employment, and spin-
off benefits to existing businesses in the CBD which are
additional to the identified benefits. These additional
benefits may be calculated as projects become better
defined.
Figure 35
Potential Economic Development Benefits Summary
Source: Katherine Beebe & Associates
DOWN` OWfd VALE: 5l 1?�.'i)[VO��](; BENEFITS
CBD Potential
Full Time
One Year CBD
Five Year CBD
New
Equivalent
Area Tax
Area Tax
Development
Jobs
Revenue Total
Revenue Total
Value
Residential
$547,500,000
50
$15,266,490
$76,332,450
Residential
$181,600,000
30
$5,063,734
$25,318,672
Hotel
$100,000,000
800
$2,788,400
$13,942,000
Office
$120,000,000
1800
$3,346,080
$16,730,400
Amenity Retail
$30,750,000
515
$857,433
$4,287,165
Outlet Retail
$55,500,000
925
$1,547,562
$7,737,810
Jewelry District
$16,500,000
275
$460,086
$2,300,430
Retail
Communications
$40,500,000
360
$1,129,302
$5,646,510
Buildings
Reuse /
$89,830,000
30
$2,504,820
$12,524,099
Residential
Re tenant
$7,875,000
100
$219,587
$1,097,933
Total
$1,190,055,000
4885
$33,183,494
$165,917,469
DOWN` OWfd VALE: 5l 1?�.'i)[VO��](; BENEFITS
Appendix
DOMINTOWN Nri"EADIX
11k)A IIAI► IN1►
CBD Potential New .
nl avolnnment V91ue I 5547.5b0.000 �s 5181.600,000 5100;000.0011 $120,000;000 s'�0,750,000 $5$,500000
Tax Revenue
;5 003 734
; , $2 788 4003
346'080
; 67 433
$1 647,882
Five Year CBD Area Tax. t
Revenue Tbtal $78,332 4f30
Annual DDA Capture
$273,750
$90,800
$50,000
$60,000
$15,375
$27,750
City
$5,625,563
$1,865,940
$1,027,500
$1,233,000
$315,956
$570,263
Potential Economic Benefits
$5,265,308
$1,746,447
$961,700
$1,154,040
$295,723
3
Source: Katherine Beebe & Associates
$404,055
$134,021
$73,800
$88,560
$22,694
$40,959
County
$3,505,643
$1,162,785
$640,300
$768,360
$196,892
$355,367
Residential (1)
Residential (2)
Hotel
Office
Amenity Retail
Outlet Retail
$300,000
$200,000
$125,000
$200
$150
$150
per unit
per unit
per room
per sq. ft.
per sq. ft.
per sq. ft.
1,825
908
800
600,000
205,000
370,000
Units
Units
Rooms
sq. ft
sq. ft.
sq. ft.
CBD Potential New .
nl avolnnment V91ue I 5547.5b0.000 �s 5181.600,000 5100;000.0011 $120,000;000 s'�0,750,000 $5$,500000
Tax Revenue
;5 003 734
; , $2 788 4003
346'080
; 67 433
$1 647,882
Five Year CBD Area Tax. t
Revenue Tbtal $78,332 4f30
Annual DDA Capture
$273,750
$90,800
$50,000
$60,000
$15,375
$27,750
City
$5,625,563
$1,865,940
$1,027,500
$1,233,000
$315,956
$570,263
School
$5,265,308
$1,746,447
$961,700
$1,154,040
$295,723
$533,744
State
$404,055
$134,021
$73,800
$88,560
$22,694
$40,959
County
$3,505,643
$1,162,785
$640,300
$768,360
$196,892
$355,367
Special District Millages
$192,173
$63,742
$35,100
$42,120
$10,793
$19,481
One Year CBD Area Tax -
Revenue T tal $16;268'490
;5 003 734
; , $2 788 4003
346'080
; 67 433
$1 647,882
Five Year CBD Area Tax. t
Revenue Tbtal $78,332 4f30
$26,3116,02
$13 042,000,
$16;730 400
$4 2137185
0,737,1310
Full Time Equivalent
,Jobs 50 30 800 1,800 515 925
j
i
1)()W►TMA-114 PAGE �l [11'1'1<itil)fh
- 1
Jewelry District Retail Telecommunications Reuse/ Residential Re -tenant
$150
$150
$130,000
$75
per sq. ft.
per sq. ft
per unit
per sq. ft.
110,000
270,000
691
105,000
sq. ft.
sq. ft.
units
sq. ft. Total
275 360 1 30 100 4885
'1iCANIi'+l'i'U't' N itl:1).P;S%I;:I,OI'NI1!;N'1'
t'A;f• 53
D D A INII'yvi t
AvP l :.tND.tx
� r
�
Area Total
?�`..., 1` 12��` 02n
, " �E� :,,' :. 804 $10
.; :� 1g y
Taxes
$8,250
$20,250
$44,915
$3,938
$595,028
$169,538
$416,138
$923,003
$80,916
$12,227,815
$158,681
$389,489
$863,895
$75,734
$11,444,759
$12,177
$29,889
$66,295
$5,812
$878,261
$105,650
$259,322
$575,181
$50,424
$7,619,922
$5,792
$14,216
$31,530
$2,764
$417,709
275 360 1 30 100 4885
'1iCANIi'+l'i'U't' N itl:1).P;S%I;:I,OI'NI1!;N'1'
t'A;f• 53
D D A INII'yvi t
AvP l :.tND.tx
� r
�
?�`..., 1` 12��` 02n
, " �E� :,,' :. 804 $10
.; :� 1g y
�r�` 3$183,494.
S frtlrl rEt11���it€;
' 5r FY7'
( [ a?j8i! { tt-k����.
( f t 6�+a`IC
lsph�rsA�iC.i
Ct17
...�� '
.
til ' b
l
°€! < �16.Ili
l
r
0.17 480
r < :f:i
,� .:.rr{.IN
275 360 1 30 100 4885
'1iCANIi'+l'i'U't' N itl:1).P;S%I;:I,OI'NI1!;N'1'
t'A;f• 53
D D A INII'yvi t
AvP l :.tND.tx
1) 1 � A IM I'k N1 I
MIAMI AREA SHOPPING CENTERS
Source: Katherine Beebe & Associates
SHOPPING CENTER ADDRESS SQUARE FEET MAJOR RETAIL TENANTS IDISTANCE FROM
DOWNTOWN
MIAMI
110Wr4T(.)WN 1':1c;1, 54 AlItIFNJAX
Disney Store
Gap
401 Biscayne Blvd. R-
Sharper Image
0 miles
Bayside Market Place
106, Miami
223,000
Victoria's Secret
Warner Bros. Studio Store
Hard Rock Cafd
Lincoln Road Mall
Lincoln Road at 16
Miscellaneous independent retailers
4 Miles
Street Miami Beach
and restaurants
Bath & Body Works
Streets of Mayfair
2911 Grand Avenue,
240,000
Borders Books and Music
4.5 Miles
Coconut Grove
The Limited
Regal Mayfair 10 Cinemas
Banana Republic
B. Dalton Booksellers
Express
5 miles
3015 Grand Avenue,
162,000
Gap
CocoWalk
Coconut Grove
Speedo
Victoria's Secret
The White House
AMC 16
Nike Town
Virgin Megastore
Barnes & Noble
FAO Schwarz
Pottery Barn
The Shops at Sunset
5825 Sunset Drive,
514,470
Brookstone
8 Miles
Place
South Miami
Urban Outfitters
Banana Republic
Gap
AIX Armani Exchange
IMAX Theatre
24 Screen AMC Theatre
110Wr4T(.)WN 1':1c;1, 54 AlItIFNJAX
MIAMI AREA SHOPPING CENTERS
CONTINUED....
SHOPPING CENTER ADDRESS SQUARE FEET MAJOR RETAIL TENANTS DISTANCE FROM
DOWNTOWN
MIAMI
RATI"G 1"A{..t: �7:+ �:k�:k'I:iv.l.?[.N:
i
Bvlgari
Cartier
Chanel
Escada
Prada
Mermes
9700 Collins Avenue,
Christian Dior
Bal Harbour Shops
Bal Harbour
500,000
Slavatore Ferragamo
10 Miles
Giorgio Armani
Gucci
Ungaro
Gianni Versace
Tiffany & Co.
Neiman Marcus
Saks Fifth Avenue
Burdines
7535 N. Kendall
Saks Fifth Avenue
10 Miles
Dadeland Mail
Drive, Kendall
1.63 Million
Lord & Taylor
JCPenney
Westland Mall
1675 West 49h Street,
Hialeah
225,000
Burdines
10 Miles
7795 W. Flagler,
Home Depot
Mall of the Americas
Miami
667,356
667,356
Lechters
11 Miles
Thin s
RATI"G 1"A{..t: �7:+ �:k�:k'I:iv.l.?[.N:
i
1t)A N;l m im i
MIAMI AREA SHOPPING CENTERS CONTINUED....
t
SHOPPING CENTER ADDRESS SQUARE FEET MAJOR RETAIL TENANTS
DISTANCE FROM
DOWNTOWN
MIAMI
ainment
Group USA
Oshman's Supersports USA
Northeast quadrant of the
Off 5th Saks Fifth Avenue Outlet
FYE For Your Entert
Store
DOWNTOWN PAGE ,% t PPENIAX
=
ainment
Group USA
Northeast quadrant of the
Off 5th Saks Fifth Avenue Outlet
Florida Turnpike and the
Store
Dolphin Mall
Dolphin Expressway (SR
1.4 Million
Burlington Coat Factory
11 Miles
836)
Linens n Things
MARS Music
Marshalls Megastore
Old Navy
Ross Dress for Less
28 Screen Regal Cinemas
Burdines
Dillard's
Miami International Mall
i Mia NW 107'x' Avenue,
1.76 Million
SePa snney
11 Miles
Bloomingdale's
Burdines
Macy's
19501 Biscayne Boulevard,
Lord & Taylor
Aventura Mall
North Miami Beach
2.3 Million
Sears
12 Miles
JCPenney
Restoration Hardware
Crate & Barrel
24 Screen AMC Theater
Loehmann's
Loehmann's Fashion
18711 NE Biscayne Blvd,
288013
Barnes & Noble
12 Miles
Island
Aventura
Publix
AMC 16
The Falls Shopping
8888 SW 136" Street,
Macy's,
13 13 Miles
Center
Kendall
BloomiPF
Changs
DOWNTOWN PAGE ,% t PPENIAX
=
0.10A. ai] ojv(I,
MIAMI AREA SHOPPING CENTERS CONTINUED....
SHOPPING CENTER ADDRESS SQUARE FEET MAJOR RETAIL TENANTS DISTANCE FROM
DowNTowN
MIAMI
Fashion Mall at Plantation
321 North University Drive,
669
Lord & Taylor
25 Miles
Plantation
,000
Macy's
Burdines
Dillards
The Galleria
2414 East Sunrise
Boulevard, Fort Lauderdale
I Million +
Lord and Taylor
Neiman Marcus
26 Miles
Saks Fifth Avenue
Galleria Cinemas
Bed Bath & Beyond
Beall's Outlet
BrandsMart USA
Burlington Coat Factory
Gameworks
Hard Rock Cafd
Homeplace
JCPenney Outlet Store
Sawgrass Mills
12801 West Sunrise
19
Jillian's
26 Miles
Boulevard, Sunrise FL
Last Calll Neiman Marcus
Marshalls
Off 5s' Saks Fifth Avenue
Ron Jon Surf Shop
Service Merchandise
Spiegel Outlet Store
Target Greatland
TJ Maxx
VF Factory Outlet
Burdines
9469 W. Atlantic Boulevard,
Burdines Men's, Kid's & Home
Coral Square Mall
Coral Springs
945,000
Store
32 Miles
Dillards
JCPenney
Sears
0WNTOWNRIJ)1,Vf:L.0PM1;.NT'i'U AT.11:GV PA( -,57 A.t':P1:NDLx
'00A NUAiN41
Miami Area Shopping Centers continued....
SHOPPING CENTER ADDRESS SQUARE FEET MAJOR RETAIL TENANTS IDISTANCE FROM
IDOWNTOWN
MIAMI
Mizuer Park
430 Plaza Real, Boca Raton
156,715 Retail
270,000 Office
272
Apartments/Townh
omes30 Acre
mixed-use
Jacobson's
(80,000 sq ft)
40 Miles
Bloomingdale's
Burdines
6000 West Glades Road,
Lord & Taylor
Town Center at Boca Raton
Boca Raton
1.65 Million
Nordstrom
40 Miles
Saks Fifth Avenue
Sears
A La Mode
5200 Town Center Circle,
Carina Nucci Shoes
Shops and Boca Center
Boca Raton
Chico's
Guy La Ferra
40 Miles
Hoffman's Chocolates
The Perfect Setting
1DOWINTOWN liiJ)PA( )5' S8
,
DllA PrIIAyII
One Mile Market Area
ACORN Analysis
Flagler & NE 2nd Avenue Households
ACORN Description 2000 Number 2000 Percent U.S. Percent Area Index
Affluent Families
0
0
17.2
-
Upscale Households
i
0
14.9
-
i
Up and Coming Singles
0
0
6
-
Retirement Styles
0
0
10.9
-
Young Mobile Adults
253
3.2
3.5
91
5A Twentysomethings
253
3.2
2.1
153
City Dwellers
852
10.7
14.3
75
6A East Coast Immigrants
852
10.7
2.4
441
Factory and Farm Communities
0
0
26.9
-
Downtown Residents
6,816
85.8
6.1
1396
8A Young Immigrant Families
5,353
67.4
1
6904
8B Social Security Dependents
16
0.2
0.9
23
8C Distressed Neighborhoods
1,447
18.2
1
1789
Nonresidential Neighborhoods
22
0.3
0.1
280
9A Business Districts
22
0.3
0
1279
Total
7,943
Dowivro 1wN
59
Fj
Five Mile Market Area ACORN Analysis
Flagler & NE 2nd Avenue Households
ACORN Description
PA CA",
2000 Number
2000 Percent
U.S. Percent
Area Index
Affluent Families
1,441
0.9
17.2
5
IA Top One Percent
754
0.4
1.2
37
1B, Wealthy Seabord Suburbs
430
0.3
2.2
11
1C. Upper Income Empty Nesters
257
0.2
2.3
7
Upscale Households
2,138
1.3
14.9
9
2A Urban Professional Couples
1,662
1
4
24
2C Thriving Immigrants
476
0.3
1.7
17
Up and Coming Singles
5,058
3
6
50
3A High Rise Renters
5,058
3
2.3
132
Retirement Styles
2,670
1.6
10.9
14
4A Retirement Communities
2,530
1.5
1.3
119
4B Active Senior Singles
140
0.1
2.7
3
Young Mobile Adults
1,059
0.6
3.5
18
5A Twentysomethings
1,059
0.6
2.1
30
City Dwellers
27,055
16
14.3
112
6A East Coast Immigrants
25,399
15
2.4
617
6B Working Class Families
1,448
0.9
1.2
73
6E West Coast Immigrants
208
0.1
1.2
10
Factory and Farm Communities
22
0
26.9 -
7A Middle America
22
0
.9-
7.9 -
PACA", 60
DDA IV1:iAMt
Five Mile Market Area ACORN Analysis continued....
i
ACORN Description
2000 Number
2000 Percent
U.S. Percent
Area Index
Downtown Residents
129,256
76.5
6.1
1244
8A Young Immigrant Families
95,945
56.8
1
5814
8B Social Security Dependents
7,695
4.6
0.9
524
8C Distressed Neighborhoods
13,827
8.2
1
803
8D Hardtimes
6,489
3.8
1.7
230
8E Urban Working Families
5,300
3.1
1.6
194
I.
Nonresidential Neighborhoods
344
0.2
0.1
206
9A Business Districts
24
0
0
66
9B Institutional Populations
320
0.2
0.1
245
Total
I..
1
I
169,021
100
100
i V
V'
i
1)OM"KfOWN i, Ll)
I
61
1 m—Al iwx
WAVN'I'(1WN lt!?1)1 �'l:r_,t)1'111I.N'C �;'I'1tA7'l::l;i' I'AGh 62 �fk'Nk:ltil)I�i
Ten bile Market Area ACORN Analysis
s
Flagler & NE 2nd Avenue Households
ACORN Description 2000 Number
2000 Percent
U.S. Percent
Area Index
Affluent Families
23,240
5.66%
5.70%
33 i
1A Top One Percent
9,214
2.24%
2.20%
154
1B. Wealthy Seabord Suburbs
12,602
3.07%
3.10%
137
1C. Upper Income Empty Nesters
1,422
0.35%
0.30%
15
1D. Successful Suburbanites
2
0.00%
0.00%
0 1
Upscale Households
19,875
4.84%
4.80%
33
2A Urban Professional Couples
4,025
0.98%
1.00%
24
2B Baby Boomers with Children
15,135
3.68%
3.70%
220 j
21) Pacific Heights
715
0.17%
0.20%
4
i
Up and Coming Singles
17,154
4.18%
4.20%
70
3A High Rise Renters
15,476
3.77%
3.80%
166
3B Enterprising Young Singles
1,678
0.41%
0.40%
11
Retirement Styles
22,533
5.48%
5.50%
50
4A Retirement Communities
2,530
0.62%
0.60%
49
4B Active Senior Singles
16,891
4.11%
4.10%
150
4C Prosperous Older Couples
1,129
0.27%
0.30%
8
41) Wealthiest Seniors
1,983
0.48%
0.50%
42
f
l
WAVN'I'(1WN lt!?1)1 �'l:r_,t)1'111I.N'C �;'I'1tA7'l::l;i' I'AGh 62 �fk'Nk:ltil)I�i
Ten Mile Market Area ACORN Analysis continued....
ACORN Description
2000 Number
2000 Percent
U.S. Percent
Area Index
5A Twentysomethings
1,810
0.44%
0.40%
21
5B College Campuses
90
0.02%
0.00%
3
City Dwellers
68,353
16.64%
16.60%
116
6A East Coast Immigrants
59,404
14.46%
14.50%
594
6B Working Class Families
7,059
1.72%
1.70%
147
6D Southwest Families
533
0.13%
0.10%
6
6E West Coast Immigrants
1,358
0.33%
0.30%
27
Factory and Farm Communities
21
0.01%
0.00%
0
7A Middle America
21
0.01%
0.00%
0
Downtown Residents
257,139
62.59%
62.60%
1018
8A Young Immigrant Families
201,458
49.04%
49.00%
5023
8B Social Security Dependents
9,226
2.25%
2.20%
259
8C Distressed Neighborhoods
18,709
4.55%
4.60%
447
8D Hardtimes
10,484
2.55%
2.60%
153
8E Urban Working Families
17,262
4.20%
4.20%
260
Nonresidential Neighborhoods
617
0.15%
0.20%
152
9A Business Districts
39
0.01%
0.00%
44
9B Institutional Populations
578
0.14%
0.10%
182
Total
410,832
100.00%
100.00%
DDA cq rOWN lCf:llt� l'L`Gi)P;iCL:IV'1' :i'.rRt\'1':t:(,k'
PAGE 63
DD/k A.'([ANrt
N1> ,rm.t)u �
01);1 Ala,sMl
The Retail Spending Report for the DDA One, Five, and Ten Mile
Market Area
Source: CACI and Katherine Beebe & Associates
rehase Potential Index Spending Potential Annual Amount Spent Total (000)
Index per Consumer
Household
Aftermarket
Books & Periodicals
Cable Television
One
Five
Ten
One
Five
Ten
93
Mile
Mile
Mile
Mile
Mile
Mile
Alcoholic Beverages
96
97
99
97
99
10
Apparel
99
99
99
92
94
99
Men's
102
103
10
82
84
88
Women's
110
108
106
102
103
10
------
10
---------------------------
Children's
-------
106
---------
101
- -----
100
-
102
-----
103
Infa_nts'_ _
_ 115
107
105
112
.1101---
lo
Footwear-
94
_
95
96
95
97
10
Watches & Jewelry
93
94
95
90
95
101
utomotive
49
55
62
94
96
10
Aftermarket
Books & Periodicals
Cable Television
90
92
94
94
91
92
Cameras &
93
93
95
E ui ment
_ _
$536
Child Care
133
119
114
Entertainment
94
94
96
One
2
6
6
3
_9
A
Five
Ten
One
Five Mile
Ten Mile
Mile
Mile
Mile
Mile
104
$530
$536
$553
$1,645
$36,303
$97,267
$1,262
$1,815
$1,364
$157,706
$414,698
$628
_$_1,292
$635
^ $656
_$73188
$1,474
- -$32,864
- - $89,022
$742
$750
$775
$2,822
$62,052
$162,302
$622
$626
$630
$1,161
$24,604
$61,497
_ $380
y $374
$370
$477
$10,0_19
$25,18_8
- - - $47,523
0 $295
$300
$310
$829
-- $18,188
$640
$672$717
$606
$14,186
$40,339
1-1---$-627
$642
$674
$2,024
$45,717
$123,892
91 94
811 86
Membership Fees 41 52 63 79 80
_Sporting Events _ 44 51 _ 60 65 69 _
Sports Participation 80 82 86 78 81
Theater & Concerts 72 79 88 72 75
100 $2,166 $2,250 $2,381 $1,533
94 $407 $430 -$472. $1,643
�85 $464 $471 $501 $342
75 $209 $221 - $243 $107
841 $3551 $3651 $3791 $288
79� `$1521- - $157 - -$1671__._ $379
$23,578
$39,424
$3,703
$33,837
$37,700
_�- - $8,090
$2$507
$6,787
$63,666
$99,264
$10,341
$91,200
$106,618
- --$24,122
$7,333
$19,542
$23,629
1)ut4�i� rt,�vN .lt[:i»�.v7 i.oi�twlt:N STittt'r1:c;Y t'A(;i� 64 MVENIDiX
93
$201
$208
$223
$1,0_43
104
104
104
$423
$422
- $423
$1,815
96
98
103
$93
$95
-- $99
$163
91 94
811 86
Membership Fees 41 52 63 79 80
_Sporting Events _ 44 51 _ 60 65 69 _
Sports Participation 80 82 86 78 81
Theater & Concerts 72 79 88 72 75
100 $2,166 $2,250 $2,381 $1,533
94 $407 $430 -$472. $1,643
�85 $464 $471 $501 $342
75 $209 $221 - $243 $107
841 $3551 $3651 $3791 $288
79� `$1521- - $157 - -$1671__._ $379
$23,578
$39,424
$3,703
$33,837
$37,700
_�- - $8,090
$2$507
$6,787
$63,666
$99,264
$10,341
$91,200
$106,618
- --$24,122
$7,333
$19,542
$23,629
1)ut4�i� rt,�vN .lt[:i»�.v7 i.oi�twlt:N STittt'r1:c;Y t'A(;i� 64 MVENIDiX
The Retail Spending Report continued...
DDA NUANU
DoNvir'4'row't "REMWELOPME NT-STEKIT GY 65
Purchase Potential
I
Spending Potential
Annual Amount Spent
Total (000)
Index
Index
per Consumer Household
One
Five
Ten
One
Five
Ten
One
Five
Ten
One
Five Mile
Ten Mile
Mile
Mile
Mile
Mile
Mile
Mile
Mile
Mile
Mile
Mile
Film Processing
91
74
76
79
$77
$78
$81
$2,624
$7,364
91
93
$115
Automobile Loans
37
45.
52
94
96
$3)612
$3,668
$3,759
$6,730
$151,261
$405,624
Hpmq Loans.
.....
.33
1
44.
---92
92
96
104
$7,532,
$7,802
$8,486
$.18)065
'$418,088
$1,208,225
.
. ...
investments
29
-
39
--"- --,*, -
55
-, -.-
88
-,
95
.
107
-
$12,086
$13,018
$14,592
-
$762
- - -.
$20,913
.. --
$75,582
Ci ' nes.
�oce
99
99
too
101
103
$31279
$3,29
$3,368
V5,726
$550,909
$1373202
1
Health Insurance_75
79
82
90
91
94
$1,243
$1,259
$1,295
$5,263
$119,737
$309,418
,Home Improvement62
65
70
91
93
98
$2,070
$2,115
$21228
$5$600
$129,951
$362,800
Remodeling
51
55
60
103
100
101
$5,204
$5,079
$5,106
$2,644
$60,653
$172,519
monteng!IC6 and
70
73
71
104
106
108
$1730
$1,760
$1,800
$1,983
$46,228
$1260894
air.
-$422
---$435
--$109
-
Paint
73
75
79
98
99
102
$416
$2,480-
$6,704
Lawn*, Garden
39
45
53
91
99
$425
$438
$402
$883
$20,810
$58,861
Home Services
58
76
115
113
116
$1,167.
$1,148
$1,174
$575
$13,764.$40,754
.100
-67-
100
-
too...
88
91
97
$825
$856
.$913
$3,262
$73,451
Furnishings =--_
--$'--2--3--8'--'
--$5,3-7-0
.$200,598
- -'-
-$1-4',*3-57
Appliances
109
105
103
93
95
97
$313
$319
t32-7-
Electroill6s:
109::
102
99
83
86
92
$409
$415
.$451
$1,064
$24,098
$66,809
Audio Equipment
138
131
126
88
89
90
$297
$302
$304
$110
$2,457
$6,479
Tapes & CD&
101
100
101
97
98
101
$147
$149
$153
$218
$4,876
$13,312
Video Equipment
1691*
1621
99
99
100
101
$2-3--7-1
---$"-2-4-O--J--
$242
-$345
$7,661
$20-404
DoNvir'4'row't "REMWELOPME NT-STEKIT GY 65
a�I�:�. f0•l.t�L.1,•tl
i
The Retail Spending Report continued... •
,
Dt)WtJ't't)WN I"AG1, 6(►
Purchase Potential
Spending
Annual Amount Spent
per
Total
Index
Potential Index
Consumer Household
One Five Ten One Five
Ten
One Mile
Five
Ten One Five Mile
Ten Mile
Mile Mile Mile Mile . Mile
Mile
Mile
Mile Mile
PC
51 59 70 90 92
94
$1,817
$1,851
$1,884 $363 $8,648
$26,114
Hardware/Software
94 91 92 107 108
Furniture i,
111
$1,253
$1,268
$1,296
$945
- $20,817
$55,308
Home Furnishin s
100 100 100 88 92
98
1113
$414
$432
- $464
$89.4
$20,519
$57,202
Homeowners/Renters
33
41
50
106
109
$843
$861
$894
$1,273
$29,307
$79,769
Insurance
Vehicle Insurance
42
49
57
101
103
106
95
$1,505
$1,523
$1,574
$4,596
$102,184
$270,399
Life Insurance
_
62
-117
66
71
87
89
$959
$976
$1,037
$_2,587
$5.8,177
$155,801
Luggage
-117
119
96
98
100
100
101
$320
$165
$327
$166
$334
$167
$38
$80
$874
$1,827
$25460
$4,992
Optical Goods
79
84
87
100
Pets'& Supplies
56
59
64
` 87
90
94
$262
$271
$283
$282
$6,444
$17,679
Restaurants
65
71
77
86
89
96
$994
$1,030
$1,103
$5,732
$127,797
$343,078
.Sporting Goods
61
77
- _
63
81
--- .
68
85
__.-
94
96
96
96
100
98
-------
$602
$618
_ .._.__
$614
$618
$638
$626
- _
$424
$4,598
$9,797
$98,476
-
$28,323
$244,705
-
Telephone
--- -
Toys & Hobbies
102
9798
84
87
$397
$408
$429
$542
$12,131
$33,040
Travel
70
_
74
82
98
_
99
____91
103
$1,881
$1,912
$1,986
$2,459
- $56,991
$162,285
Air Fare
_ 79
85
96
_ 99
94
100
103
_ $2;078
$2,101
_ $2,166
$999
$1,42-9-
$33,183
'$94,-41-1
Hotels/Motels
47
55
64
95
` 98
-- $955
$969
$954
$22,224
_
$6_3,659
Rental Cars
74
83
94
97
98
98
$864
$869
$873
$1521.
$3,557
$10,480
Dt)WtJ't't)WN I"AG1, 6(►
W)Dik MIAR41
Economic Development Grant Evaluation Criteria
Source: Katherine Beebe & Associates
Criteria
Rankin
Contribution to downtown employment
1
2
3
4
5
Improving the quality and upgrading existing
businesses
1
2
3
4
5
Contribution to the city tax base over time
1
2
3
4
5
Consistency with the DDA plan for the CBD desired
uses
1
2
3
4
5
Contribution to increasing the downtown residential
base
1
2
3
4
5
Provision of areas and activities which will increase
the use of the downtown beyond 9-5 working hours
1
2
3
4
5
Contribution to pedestrian activity in the downtown
1
2
3
4
5
Provision of a facility which enhances the quality of
life for the downtown
1
2
3
4
5
Leverage investments in the downtown, creating a
catalytic impact
1
2
3
4
5
1= No Impact
2 = Slight Impact
3 = Moderate Impact
4 = Significant Impact
5 = Strong Impact
(DOWNTOWN REDEVELOPMENT STRATEGY PAGE fig APPENDIX
w ■