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HomeMy WebLinkAboutM-89-0391aPYpx g=1 cf • igskgg - -T=1 atOTWIP14,:p;, ---__ 1 • IP. 33. • :St. , e Pt4 ed r.cess to S Develo ment hi Da a, ' 1 . .hru ary 1989 e Black un c Submitted in tie public record in cornicction with item tax. I: on __tf 1 IP 6 / 1 Matty Iii City Clerk f 1-' 7 1 ii f ,./- .., ..„. 8?-391 -,r0 -WrOS t ;�. (Vti "".}t •kY '4?'i\ i?tiF.'e°�'4+.7 • dtx+�;f Y - • 1 Garth Reeves Chairman Steering Committee February 1989 Facilitator: Greater Miami United Funded by: Metro-Miami Action Plan Consultant: John Hall il{!kIW6�lUIk11kIIERi k ,ti 0 Tools for Change The Planned Process to Stimulate Black Economic Development in Dade County. ) • A lthough this plan is delivered at a difficult time, it was not developed as a response to the Overtown and Liberty City disturbances ofJanuary, 1989. Accordingly, the recommendations are not a quick -fix response to those 'disturbances. This report does, however, reflect the reality that in spite of the efforts of dozens of organizations throughout Dade County, black economic conditions in many aren as are worse than they were in 1980. This project is the result of a year long effort to establish consensus among 39 Black Steering Committee. members regarding a sober, five yea strategic plan which has been designed to begin to turn around many of the negative trends that characterize the condition of black economic develop- ment in Greater Milani. Establishing the consensus itself is an important part of the solution. However, the contents of this document make it clear, a tremendous, diffi- cult, long term struggle is before us and we must move quickly ahead toward actions which create a positive, proactive black economic development climate in Dade County. Garth C. Reeves, Sr. Chairman, Steering Committee 1 Garth Reeves, Chairman Publisher THE MIAMI TIMES STEERING COMMITTEE William Armstrong President American Oldsmobile Honorable James Burke Member Flroida House of Representatives Dr. Larry Capp Executive Director Metro —Miami Action Plan Honorable Barbara Carey Commissioner Metro-Dade County Ira Clark President Public Health Trust Jackson Memorial Hospital Marcia Conners City Manager City of Opa -Locka Terri Conward Executive Director DEEDCO Tony Cooper President Musashi, lnteranational Honorable Miller Dawkins Commissioner City of Miami New all Daughtrey Executive Director Business Assistant Cononium Albert E. Dotson President Datson's Gift & Travel Chair, Morro -Miami Action Plan T. Willard Fair President Urban League of Greater Miami Ron Frazier President Frazier & Associates Inc. Antonia Gary Former Executive Director Greater Miami United Howard Gary President ILVG., Inc. Larry IiandIcld, Esq. Handfield & Pitts Attorneys at Law President Black Lawyers Association Art Hill President Peoples National Bank Planned Process to Stimulate Black Economic Development in Dade County Steering Committee &Technical Advisory Work Group Members Honorable Robcn Ingraham Mayor City of Opa -Locka Eugene Jackson President Unity Broadcasting Network Reverend Anhur Jackson President P.U.L.S.E. Charles Johnson Board Member Greater Miami United Shalley Jones Vice President Chase Federal Bank President Urban Bankers Virginia Jordan President Jara Investments President Black Women Entrepreneurs Dewey Knight Former Deputy County Manager Metro-Dade County George Knox, Esq. Long & Knox Attorneys at Law Robert Lamothe Executie Director Haitian Task Force Honorable Willie Logan Member Florida House of Representatives Jesse McCrary Jr., Esq. McCrary & Scif Attorneys at Law Honorable Carrie Aleck State Senator Florida State Senate Dr. Rudolph Moise Dentist Dr. Roy Phillips Vice President of Public Affairs Miami -Dade Community College Otis Pitts Presidents TLcolcy Economic Develpment Corp. President Miami -Dade Chamber of Commerce Dr. Willie Robinson President Florida Memorial College Dianne Smith, Esq. Office of County Attorney Metro-Dade County Arthus'Iecle, Esq. Chairman Applied Electronic Technicians Inc. Francena Thomas Co-chair Greater Miami United Metro-Dade County TECHNICAL ADVISORY WORK GROUP MEMBERS Herb Bailey Assistant City Manager City of Miami Rene Beale Senior Vice President Centrust Savings Corporation Donnie Carter Executive Director Division of Procurement Management Dade County Public Schools John Cordrey Vice President of Research The Beacon Council Frank Dawkins President Aircontech Associates Incorporated Clarence Ewell Director Metro-Dade County Office of Job Training Hubert James Office of Black Affairs Metro -Dade County Barbara E. Higgs President Barbara Iiigp,s Beauty Salon Ringo Kinard President Baptiste Corporation Richard AtcNish Industrial Park Manager New Century Develpment Corporation Marvin Nesbitt Progratu Director Small Business Develpment Institute Florida International University Dean Taylor Deputy Director Office of Community Economic Development Metro -Dade County Milton Vickers Director Minority Business Development Metro-Dade County Bill Wynn President Afro Caribe Gift Shop FACILITATORS Antonia Gary Former Executive Director Former Project Officer Greater Miami United Facilitator Lynette Williams Project Officer Greater Miami United Facilitator John Hall Facilitating Consultant President Urban Develpment Corporation of Greater Miami Dr. Martell Smith Miami -Dade Community College Expert Consultant to Project Team Karen Koplin Project Coordinator Lisa Lewis Research Assistant Participation in the Planned Process by individuals was not structured to and does not reflect the positions of their organizations. 89-391 _ l Acknowledgements There are scvcral dozen persons whose input was important to the compl tion of this project. Many were instrumental in the critical process of build ingconsensus. Qt hers made vital contributions to the writing. editing and production of this Executive Summary as well as the nine separate issue papers. Most volunteered countless hours of uncompensated time to the process because they believed in its importance. Thanks go first to Garth Reeves, Chairman of the Steering Committee; Dr. Roy Phillips, of the METRO -MIAMI ACTION PLAN, who pushed the process from the bcginn and delivered resources from Miami -Dade Community College whenever they were needed; Antonia Gary; Project Officer on the Project for GREA1 MIAMI UNITED, who helped design the strategic planning process in an effective way and steered the project to completion; Dr. Larry Capp for MMAP's consistent support; Dr. Marzcll Smith, consultant and author of several key issue papers; Zandra Faulks who edited the Executive Summar Karen Coplin, Project Coordinator; Graelin Major., computer analyst; and Lisa Lewis, research analyst and typist. Steering Committee members contributing significant amounts of tir support and/or recommendations included Commissioner Barbara Carey. Commissioner Miller Dawkins, Senator Carrie Meek, Representative Jame Burke, Representative Willie Logan, T. Willard Fair, Otis Pitts, Jr., Arthur Teele, Art Hill, William Armstrong, Albert E. Dotson, Howard Gary; Eugen Jackson, Mayor Robert Ingram, Francena Thomas, Terri Conward, Dr. Wil Robinson, Charles Johnson and George Knox, Esq. Particular mention mt be made of Frank Dawkins, Bill Wynn, Reney Beale, Dean Taylor, Marvin Nesbitt, Herb Bailey; Richard McNish, Clarence Ewell and Hubert James 01 the Work Group. Others playing vital roles included Lynette Williams of GREATER MIAMI UNITED, who also served as Project Officer, John Cord and Charles Jainarain of the Beacon Council Research Department, Dr. Ea nest Martin of the Dade County Office of Community Development, Lee Kline of Miami -Dade Community College for document layout and the er tire Steering Committee and Work Group. A special thanks to DALY IMAGES of Coral Gables for the rapid turn- around in the typesetting of the document. John Hall Project Director 89--351 List of Exhibits • Thble of Contents 3 1. Mission 1 I1. The Problem 2 III. Summary of Findings and Conclusions 5 Demographics 5 Business Development 7 Jobs and Income Development 10 Infrastructure Development 15 IV. Recommendations 18 Goals of the Strategic Plan "The Ten -Point Plan" 18 Business Development Goals 18 Jobs and Income Development Goals 20 Infrastructure Development Goals 21 Implementation Plan 21 V. Bibliography & Footnotes 22 1 Major Issues Examined 2 Key Economic Development Issues 3 Racial and Ethnic Population Components, Dade County, Florida 4 Population by Race and Hispanic Origin, Dade County - 1980 to 2000 5 5 Where Blacks Live - 1990, Metro -Dade County 6 6 Major and Minor Statistical Areas, Metro -Dade County 6 7 Dade County Black Businesses, 1977 and 1982 . 8 Number of Jobs Generated by Size -of -Firm — Nationwide 8 9 Dade County Black Businesses with Employees Percent of Total (1977 -1982) 9 10 Barriers to Black Business Development 10 11 Unofficial Black Unemployment Rite vs. Unofficial Total Employment Rate 11 12 Declining Youth Population /Rising Business Demand for Entry Level Employees 11 13 1985 Births to Mothers 16 and Under by Zip Code - Dade County, Florida 13 14 Median Family Income - Dade County, Florida, 1969 -1979 by Ethnic Origin 15 Families Below Poverty - Dade County/Florida /UCLA 16 Barriers to Black Job Generation /Income Gains 17 Affordable Housing Shortage - Dade County Florida 18 Barriers to Infrastructure Development 19 Goals of Strategic Plan Required for Positive Climate 20 Organization Stnucture, Black Economic Development Coalition 20 21 Black Economic Development Coalition Committee Structure 21 22 Venture Development Corporation Organization Structure 22 8 9-351 3 3 5 1-a 14 15 10 17 19 alMff ^ ;''xxrz� 1. 3, Pre , :31e The PLANNED PROCESS TO STIMULATE BLACK ECONOMIC DEVELOP- MENT IN DADE COUNTY WAS initiated by the METRO -MIAMI ACTION PLAN's ECONOMIC DEVELOPMENT ACTION COMMITTEE, chaired by Dr. Roy Phillips, vice president for Public Affairs at MIAMI DADE COMMUNITY COLLEGE. GREATER MIAMI UNITED. under the leadership of its former executive director, Antonia Gary, contracted with, John Hall, president of URBAN DEVELOPMENT CORPORATION OF GREATER MIAMI as the facili- tator consultant. Garth C. Reeves, Sr., Publisher of THE MIAMI TIMES, served as Chairman of the Planned Process Steering Committee. II`l di Mission The mission of "THE PLANNED PROCESS TO STIMULATE BLACK ECONOMIC DEVELOPMENT is as follows: 1. To establish arcommon vision of the future of black Dade County, 2. To identify and focus resources on actions required to stimulate the growth of black enterprises, 3. To identify and focus resources on actions required to stimulate employment opportunities for blacks, and 4. To reach consensus on actions necessary to fulfill the vision, county wide. The primary objective of The Planned Process is to develop a strategic economic development plan which includes defining the strengths, weak- nesses and constraints of and the threats to the future of black economic development in Dade County. A secondary objective of the project is to assess the status of black eco- nomic development in Dade County after having attempted to implement the recommendations of The Janus Report conducted after the riots in 1980. Nine issue papers were developed by a 16 member Technical Advisory Work Group, and refined and prioritized by the 39-member Steering Com- mittee. Over a 12 month period, more than 30 separate meetings and focus groups were held among these 55 volunteers who represented a cross sec- tion of community opinions. A consensus was developed around the priorities projected to have the highest impact and probability of occurrence, after which the implementa- tion plan was developed. This report summarizes the results of that process, the final recommendations of the Steering Committee and the approach proposed for implementation and evaluation. 89-391 i �..•,:v.;�.u� xr »rny;r:i,:_rswtitS AT�Shc% i :'�f•� . s�;#�F =' n'3T_±+x ,�,+�nr'Lx�n - ____ ._._ __ -_ Black economic development is olxrationally defined for this projck as follows: all activities that increase the amounts of and circulation of income among blacks living or working in Dade County (income includes the revenues, purchases and profits of black -owned business and the salaries, wages and passive incomes of black individuals). In summary, the aggregate condition of economic development in black Dade County is getting worse: in some cases because statistics ncc: that already difficult conditions continue to deteriorate; in other cases, lx• cause not enough progress is being nude to stay even in an aggressive, fiercely competitive, local economy. Because conditions deteriorated dui periods in which progress was anticipated after the disturbances of 1980, 1982 and 1984, and due to the pervasiveness of crack cocaine, Greater I31; Miami is in the midst of a complex economic development crisis. This is not to say that nothing is being done. In some ways, Greater Miami gets an unfair rap by those who say it has been unresponsive to pre vious disturbances. Although many are doing so without fanfare, literally dozens of black and multi- ethnic, public, private and non - profit organiza- tions are doing good-to-excellent jobs of wrestling with aspects of "the pi lem ". "The" problem, however, is not "a" problem but a multi - dimensior interconnection of problems, and the many successes tend to be limited tf small, unconnected percentages of the solution, working against the grair Although there are several well -known major success stories, they are not basis for complacency regarding a comparison with conditions in 1980. Quite the contrary, the conditions uncovered herein are essentially strangling Dade County's black economy. The several economic development problems in black Dade County lead to the same ultimate result, "inadequate amounts of and circulation r legitimate income within the black community" Eight broad issues (EXHIBIT 1) were initially examined during The Planned Process and for purposes of manageability have been reduced to three basic problem are (EXHIBIT 2): 1. BUSINESS DEVELOPMENT 2. JOBS AND INCOME DEVELOPMENT AND 3. INFRASTRUCTURE DEVELOPMENT (housing, commercial structures, physical conditions) The debate continues regarding which of the three areas deserves tri ment as the highest priority, but there was little debate that each of the ahi is a critical, interrelated component in the formula for increased circulatio of income within the back community. Consequently, a serious er_onomi development strategy trust address all three. The interrelationships of the three areas are circular and are clear. KEY INTERRELATIONSHIPS Jobs and Income Development Income from Jobs Supports Horne Ownership Income from Jobs Supports Businesses Business Development Businesses Support Commercial Corridors Businesses Create Jobs Infrastructure Development Affordable, decent housing reduces middle/working class flight Competitive commercial corridors attract quality businesses "PLANNED PROCESS" r.� EXHIBIT 2 JOBS /INCOME DEV. SOURCE: U.D.C.G.M. MAJOR ISSUES EXAMINED • SELF-RELIANCE EXHIBIT 1 • JOBS AND INCOME • DEBT AND EQUITY CAPITAL • BUSINESS AND ENTREPRENEURIAL DEVELOPMENT • REAL ESTATE DEVELOPMENT & CONSTRUCTION • EDUCATION AND TRAINING • DILUTION OF HUMAN & BUDGETARY RESOURCES • RACIAL DISCRIMINATION I. ill OH II,Hilll IiVIInl II l H1.11,,11111,11 Ii 14.11. 111.1111 1 11.111 KEY ECSNOr IC DEVELS'MENT ISSUES BUSINESS DEVELOPMENT INFRASTRUCTURE DEV. c "Thy � frp te must all be addressed in a formula for success: The increased circulation of income from all of the above. in turn support more development of businesses, ;ohs and infrastructure. The extensive analysis, debate and discussion of the eight basic issue e. eventually led to Several other pervasive factors which must he addressed the process: • The climate for economic development in black Dade County is dr. matically more depressed than in the white or Latin sectors. Revitali tion efforts in any of the three basic areas are extremely difficult within this climate and the overall goal of the plan must therefore ho "create a proactive. promising climak' for black economic dc't'e'lop meat in Dade County"' • There is a drug trafficking crisis in the black community and the oft( related "black -on -black crime "creates a seemingly impregnable ne over long term black economic development efforts. Throughout tl country, black neighborhoods have become important distribution points for street drugs. In that regard, black drug trafficking in Miam is a magnified reflection of the huge influx of drugs throughout the country, a disproportionate percentage of which comes through Miami. Drugs and crime must be dramatically reduced in Dade s War communities, or at worst in targeted corridors in order for the desire proactive climate to be created. Without immediate, major, dramatic efforts, this problem can only get worse. Priorities include an increa in drug treatment centers within selected black communities, that offer crack addicts alternatives to selling drugs in order to support their habits, (such as a crack equivalent to the heroin methadone programs). • Market forces alone cannot fix "the problem." Many believe the pre- dicted tightening of the youth labor market will dramatically decret` the black unemployment gaps. (EXHIBIT 12.) Unfortunately, withou substantial improvements in the preparedness of many black youth, the jobs are expected to go to others. Targeted, proactive, dramatic action will be required to change the direction of years of decline in critical economic development trends. Among other thing q, hundre, of targeted jobs need to be created v'ithin black neighborhoods and many black teenagers will need mentors before they will get and kec jobs the system;." • The Steering Committee expressed a clear commitment to establish self-reliant approach to economic deveioprnent. Altlu>ugTli all of the resources required to solve. the problem are currently beyond the means of the black community; the approach envisioned involves es the black community taking the lead in defining the problems, identifi'ir the solutions, managing their implementation, putting up black seed money required to leverage the cost of that implementation and seek ing out the balance of the funds required for complete implementa- tion. 4 • Wa. Summary of Findings and Conclusions !t • 'it --I; EXHIBIT 3 EXHIBIT 4 NONHISP WHITES 42.0% SOURCE: METRO-DADE PLANNING DEPT PERCENTAGES 60% 55% - 50% - 45% - 40% - 35% - 30% - 25% - 20% - 15% - 10% 5% 0% 5 DEMOGRAPHICS Since 1980, black population growth has stabilized at approximately 20% of the total Dade population, effectively keeping pace with Hispanic population growth. This is largely due to the comparable immigra- tion of Haitians into Miami along with Cubans and other Latins. The antici- pated immigration ofliispanics into the 1990s is, however, expected to decrease the black percentage. (EXHIBITS 3 and 4) RACIAL & ETHNIC COMPONENTS DADE COUNTY HISPANICS 38.O% 1986 POPULATION 1,776,000 POF'ULATION BY RACE & HISPANIC ORIGIN DADE COUNTY, 1980 - 2000 NONHISP WHITE NONHISP BLACKS 20.O% HISPANIC ................ .4 ........ ........ ................. BLACK 1980 1985 1990 1995 2000 COUNTYWIDE TREND PROJECTIONS SOURCE METRO-DADE PLNG DEPT. & UDCGM 69--3 ZIEM••■• ,01■1 .1.1 .1.111,111k. • .=tom 3 UM es% on @CORE c041, TO CM d talk —m "sr,4TO G1% I ,.. d l a/ -- ! €fS Tr.O.DADa COUNTY P4JJ4 mGQ DEPT OEM COUNTY, PI-9 M.& EXHIBIT B In 1986. there Nyere approximately 365,001) blacks in Dade County, Nyhich the overwhelming majority was located in Northwest Dade Count north of N. \ \'. 34th Street and east of Red Road (N. \ \'. 5 - th Avenue). (EXHIBIT 5) Concentrations of blacks in Dade County have mirrored the pattern• around the country in which middle and working class blacks have escah "the ghettos" leaving behind the "underclass.' Over one -third of Dade County's blacks are "in Ixwerty ", and over 82,000 live in the relatively ho mogcnous economically depressed community designated as M.S.A. (EXHIBIT 6) EXHIBIT 6 b MAJOR A MINOR STATISTICAL AREAS .* !RO DAD! COUNtY PLANNING C PI ., • oak b 3 -- 0 4 -- BCTSIN'IiSS DEVELOPMENT 1 HOUSAND$ WORSE: METRO-DADE PLNG DEPT. & LIDO GM 3 There are relatively few black business success stories in Dade County: Only one Miami business was among 300 firms on six separate lists of top firms in Black E.rEer/rrtIce magazine -June, 1988. The black business formation rate is disproportionately low (1.4 per cent of Dade's black population owned businesses in 1982). In 1982, about 3,385 black businesses in Dade County employed 2,323 persons. Only 450 had paid employees. The total of all persons employed, including the entrepreneurs was 6,208 or 4 percent of the black population. (EXHIBIT 7) DADE COUNTY BLACK BUSINESSES 1977 AND 1982 EXHIBIT 7 ALL FIRMS FIRMS W /ND EMPLOYE Eft 1977 EU 1982 EMPLOYEES Nationally, blacks represent 12 percent of the population but only 3 percent of all business ownership.' In 1987, black business represented only 8.3 percent of money income ($218 billion) of the U.S. black population, reflecting extremely low circula- tion of income. THE' 'HITS I.lAN'S ICE IS COLDER syndrome: there is a perception by area consumers, both black and non- black,that the quality of service and merchandise, depth and breadth of inventor\; pricing, and the appearance and cleanliness of the stores of black businesses are inferior to non -black businesses. This stereotypical perception can create a serious uphill market- ing problem hetbre one even opens the door ofa new business. Commercial corridors in Dade's black communities are typically de- pressed and are not competitive with comparable corridors in other ethnic communities. 89-3 1 "Miami's colleges and univerisities produce very few black MBA's each year." A CLASSICAL "CATCH -22 ". Black firms seeking to capture their natura black market base. that are also seeking to sell products requiring average family incomes of 630()00 or more, eventually must choose between a blaC market bate and family income. Other difficulties of locating businesses in black communities include inaccessible or unrealistically expensive crime and liability insurance, and the sometimes understandable reluctance of banking institutions to accept area real estate as loan collateral at loan -to -value ratios comparable with othc areas, if at all. Increasing the number of black businesses with employees can do mot than create jobs, it can increase circulation of income within the black com- munity, create successful role models, expand the support base for commu- nity institutions and charitable causes and provide tenant candidates for revitalized commercial areas of the black community Even though many will not survive, increasing the number of new black business formations will also help black employment. Frorn 1969 to 1976, 76 percent of the jobs in the U.S. were generated by firms with 20 employees or less. (EXHIBIT 8) NUMBER OF J E TED BY SIZE OF FIRM NATIONWIDE EXHIBIT 8 8 0-20 21.50 12.0% (11989 - 1976) 8t]URCtc• BP0.4, There is a tit, icic ly hdc11) :: rccpt ion that capital is unavailable to IDade's black businesses. An unscientific analysis reveals that debt capital for black entrepreneurs 1.vith relatively good p:.cktgcs is very difficult to obtain but often is eventually accessible. Reportedly, however, institutionalized risi: capital (e.g. equity from MESBICS or venture capital firms) is virtually un- available to blacks within Dade County. Without adequate leverage from ri,h capital, the debt capital becomes inaccessible. Because very few blacks have inherited wealth, few sizeable black deals are completed. Targeted MESB1C funds in Dade County are too limited to support size- able, black projects or to adequately leverage substantial conventional debt financing. Miami's colleges and universities produce very few black MBAs each year. Fierce competition requires serious entrepreneurs to assemble critical masses of management talent, technology, and capital in order to be compet- itive. Over 95 percent of Dade's black businesses reportedly have fewer than five employees. Many are run by competent presidents but have inexperi- enced management support teams. Most are seriously undercapitalized. 100 -500 6,0% 51 -100 5 096 -a _a "Miami's colleges and univerisities produce very few black MBA's each year." A CLASSICAL "CATCH-22". Black firms seeking to capture their natur,{ black market base, that are also seeking to sell products requiring average family incomes of 1E30.000 or more, eventually must choose between a blac market base and family income. Other difficulties of locating businesses in black communities include inaccessible or unrealistically expensive crime and liability insurance, and the sometimes understandable reluctance of banking institutions to accept area real estate as loan collateral at loan -to -value ratios comparable with othe areas, if at all. Increasing the number of black businesses with employees can do mor than create jobs, it can increase circulation of income within the black com- munity, create successful role models, expand the support base for commu- nity institutions and charitable causes and provide tenant candidates for revitalized commercial areas of the black community. Even though many will not survive, increasing the number of new black business formations will also help black employment. From 1969 to 1976, 76 percent of the jobs in the U.S. were generated by firms with 20 employees or less. (EXHIBIT 8) NUMBER OF J = GENERATED BY SIZE OF FIRM NATIONWIDE SOURCE' Co roi, 4.47 1031 EXHIBIT 8 21-50 12.G9L (1969 -- 1976) There is a widely held perception that capital is unavailable to Dade's black businesses. An unscientific analysis reveals that debt capital for black entrepreneurs with relatively good packages is ver,' difficult to obtain but often is eventually accessible. Reportedly, however, institutionalized risk capital (e.g. equity from MESBICS or venture capital firms) is virtually un- available to blacks within Dade County. Without adequate leverage from risk capital, the debt capital becomes inaccessible. Because very few blacks have inherited wealth, few sizeable black deals are completed. Targeted MESBIC funds in Dade County are too limited to support size- able, black projects or to adequately leverage substantial conventional debt financing. Miami's colleges and universities produce very few black MBAs each year. Fierce competition requires serious entrepreneurs to assemble critical masses of management talent, technolog ; and capital in order to be compet- itive. Over 95 percent of Dade's black businesses reportedly have fewer than five employees. Many are run by competent presidents but have inexperi- enced management support teams. Most are seriously undercapitalized. 89-391 a ,1 t • Nat In 1982, 95 percent of U.S. black businesses were sole proprietorships. 3 percent were partnerships and only 2 percent were corporations. In 1982, average of Dadc;s black firms were $42,96 down 37 percent from 1977. From 1977 to 1982, the percentage of Dade's black businesses with employees declined from 17.7 percent to 11.6 percent (EXHII3IT 9) DADE COUNTY BLACK BUSINESSES WITH EMPLOYEES - PERCENT OF TOTAL (1977 -1982) 9 1977 EXHIBIT 9 SOURCE! NETAQ -D&CIE PING DEPT. i UDOOM w tt.Cli 1982 • In 1982,88 percent of all black firms in Dade County had no employ- ees. Until these firms have organizational structures providing for consistent expertise applied to accounting, finance, administration and marketing as well as operations, they will be unable to be competitive and grow "Incuba- tors" have been successful in comprehensively shoring up the administrative requirements of small firms in many cities. Few incubators exist in Dade County. Many other components in the "infrastructure of support services" needed by Dade County's black busi- nesses are not present. Particularly, in addition to the absence of targeted ris?; capital and incubators, the quality of business packages by black entrepre- neurs often fails to meet lender criteria. There are few true entrepreneurial development avenues, and local higher education alternatives are limited, creating a "brain drain" of emerging black entrepreneurial and management talent. There is no mechanism for focusing the activities of the many organi- zations that are currently addressing the problem. In short, Miami has yet to establish the tools required in a positive, proactive black business develop- ment climate. A summary of business development barriers is listed below and is displayed graphically in EXHIBIT 10. • DISCOURAGING BUSINESS CLIMATE • UNCOMPETITIVE COMMERCIAL CORRIDORS • POOR INCOME CIRCULATION • ABSENCE OF COMPLETE MANAGEMENT TEAMS • "WHITE ICE IS COLDER" SYNDROME • INADEQUATE SUPPORT SYSTEMS • INACCESSIBLE EQUITY AND RISK CAPITAL • ABSENCE OF PROACTIVE BLACK BUSINESS DEVELOPMENT AGENT L.3 `--; • f C SOURCE I1R 1014AL ALLIIJu:.E IF MANESS 0 JOBS AND INCOME DEVELOPMENT WORKFORCE PROJECTIONS OCMP£R IAL CORRIDORS BUSINESS CL'MATE • The number of 16-24 year old labor force particlp3nta will decline between now and 1995 • From 1982 to 1995 the black labor force will grow at almost twig the white rate • Black male teenscers with vx rk experience are expected to continue to decline (from 67% -47% between the mki '6 0s to the mid '74s) BARRIERS TO BLACK BUSINESS DEVELOPMENT EXHEIT 10 INCOME CIRCULATION MAN,CMENT TEAMS EGUITYiRISK CAPITAL SOURCE U D.C.G.M Ill 'WHITE ICE' COLDER SUPPORT SYSTEMS A longitudinal study of black families escaping from poverty indicated that traditional values were at the core of the eventual success of such black families. The first generation worked hard, kept the marriage together hut did not graduate from high school — although the second generation did. and the third generation graduated from college. Hard work, high self - esteem and aspirations and a two- parent family were values passed on from generation to generation in these now middle class black families.' Seventy -one percent of black families were in poverty in 10 -40. They escaped "the ghetto" at a tremendous rate and in 1975, only 30 percent of black families were in poverty, h!ow, black poverty rates are reportedly b; +c i. up to 33 percent and growing. A definition of the "Underclass" — a group of individuals that lacks training and skills and either experiences long term unemployment or is nc part of the labor force; individuals who are engaged in street crime and nt! k forms of aberrant behavior, and families that experience long term periods poverty and/or welfare dependence. Because they live and interact in the same depressed community, they are part of the population that has, with the exodus of the more stable working- and middle -class segments, become me increasingly isolated socially from mainstream patterns and norms of beha ion"' The unofficial unemployment rate (including discouraged workers and part -time workers seeking full -time work) for blacks has not been under ?l I percent since 1975 (EXHIBIT 11). A central key to escaping poverty, according to many experts is finding the formula for employing the black male. Increasing the proportions of "wage- earning" black males may be the most important contribution that can be made in the effort to break the underclass cycle_. It is improbable that more than a small percentage of single wage- earner, low income families, especially those headed by teenage mothers, will emerge from poverty with out becoming two earner households. •.i:' t. F t... Wl s, r r, n r. _ .ii�1A:n . 20% • 16% 8S - EXHIBIT 12 20% - AT -RISK YOUTH CONNECTED YOUTH BUSINESS DEMAND u A strategy that focuses on such emergence must address the difficult characteristics of the shrinking lxx)l of marrigeablc black men.' "Marrigeablci' serves as a euphemism for "employed ". In 1987, there were 19,0X) (officially) unemployed blacks in Dade County. Over three times that number arc in the "underclass" and arc not h the work force. The number of 16-24 year -old labor force participants will decline between now and 1995. Between 1982 and 1995, the black labor force will grow at almost "twice" the white rate. The number of black male teenagers with work experience is expected to continue to decline (they declined from 67 percent to 47 percent between the mid 60's and the mid 70's). (EXHIBIT 12).` UNOFFICIAL BLACK UNEMPLOYMENT RATE V8 UNOFFICIAL TOTAL UNEMPLOYMENT RATE 3O%t EXHIBIT 11 BLACKS TOTAL NATIONAL ALLIANCE OF BUSINESS 25% 15% - — TOTAL RATE '+' BLACt( RATE SOURCE: NATIONAL UMW LEAGUE II =Gm DECLINING YOUTH POP. /RISING BUSINESS DEMAND FOR ENTRY -LEVEL EMPLOYEES OS 1976 107e 1977 1978 1079 1980 1081 0% 1978 1983 1995 PERCENT OF U.S. POPULATION "Blacks represented 24 percent of Dade County's unemployment rate In 19 0 and 35 ! ei it • C� `(��y @ ra i n ❑ 4,� JJ a 7 777 11 Blacks represented 24 percent of Dade County's (official) unemploy- ment rate in 1980 and 35 percent in 1987. In 1970, 31 percent or 31,9(6 of Dade's black children were poor. In 1980, 361,ercent or 37,115 of Dade's black children were poor. In 1986, 39 percent or 50,000 of Dade's black children were poor.' Sixty percent of all prison inmates are dropouts.' From 1980 -1985 the Dade County Public Schools dropout rate was 2 percent. The rate for blacks was over 33 percent, up from a reported 21 percent in 1980. There are unverified reports that the black male rate may as high as 50 percent in certain areas of the county." Existing research indicates that there are predictors of the tendency t( dropout: academic failure, school and social isolation, lack of parental and peer support, socioeconomic class, high rates of truancy, academic under: chievement, feeling rejected by the school, reading below grade level and continuing discipline problems." A survey of 100 Dade County gang members in 1985 indicated that 91 percent had not graduated from high school, 81 percent dropped out of school before the 8th grade, 75 percent lived with the mother only, 62 pct cent of these mothers worked outside the house, 98 percent were still unc ployed and a job was the most immediately desirable goal. Ninety -four percent claimed they were bored because there was nothing to do and no- where to go.'" There is mounting evidence that dropout prevention programs are most effective when they begin in pre - school programs that include a read ing curriculum." In 1988, there were more than 70 gangs in Dade County with a total o more than 3,500 members, a 95 percent increase over 1985.'= Young black males are being sent to prison in record numbers, over- crowding Florida's prisons and diverting funds from other pressing domes needs. In 1986, a random urinalysis study in conjunction with the Dade County Department of Corrections and Rehabilitation revealed that over 9 percent of 450 arrestees tested within 24 hours of arrest had one or more drugs, other than alcohol, within their bodies. Sevens v percent had cocain in their system.' The Florida State Department of Corrections recently received ;:-13 million its construction money to expand its prison system." Much more funding is projected. Future expenditures could be reduced if fund; w erc cost effectively used in drug treatment or job training lno;;ct_rns. Each vout kept out of the criminal justice system could eventually represent a saving, of well over 520,000 per year in incarceration maintenance plus th cost ( )i prison construction. Regular violent homicides and other felonies arc increasing primarily through black -on -black crime. Fortress -like conditions are being required by residents throughout black neighborhoods, "The drug trade" has made commercially zoned areas in certain black communities undesirable for legitimate businesses seeking a law- abiding clientele. The working poor are a significant and rising proportion of the po rr. Almost 20 percent of U.S. jobs will not support a worker and two dependents." In 1986, 35 percent of all people who worked part - and full -time earne less than $8,500 a year.'" EXHIBIT 13 Low - paying jobs arc proliferating while high paying manufacturing job are disappearing. According to a Joint Economic Committee report, an esti- mated 44 percent (tthc new jobs created between 1979 and 1985 paid Icss than 87,400 a year.' Many fit 11 -time jobs have lecn converted to part-time as firms hire more temporary and contract workers and fewer full -time, permanent employees. By 1986, these "marginal" workers made up 23 percent of the total Ameri- can workforce.'" Black per capita income has been stagnant at approximately 57 -59 per- cent of white per capita income from 1976 through 1985. Forty -two percent of heads of households in poverty in Dade County are employed. Out of 338,000 persons in poverty in 1986 in Dade County, 51,517 were receiving AFDC. Almost half of Dade s poverty families are female headed with an esti- mated total of 42,000 children. Extremely high proportions of 1985 births to mothers 16 and under were concentrated in M.S.A. 4.2. (EXHIBIT 13) CRa1 Ca4t7Y PLASOMOMMTTLEUIT Between 1969 and 1978, the proportion of black families with two or more earners fell steeply from 56 percent to 47 percent, while the propor- tion of white families with two or more earners rose from 54 percent to 57 percent. Between 1969 and 1979, black median family income as a percentage of white median family income in Dade County increased by 1 percent from 61 percent to 62 percent (EXHIBIT 14). Between 1969 and 1979, the percentage of families below poverty de- clined throughout the U.S. (on the average) and in Florida. The percentage increased, however, in Dade County (EXHIBIT 15). 13 Af TU3 6J4RHO TO SRDT114`0E IS AND UUfIR HY r? CO'D'E CAD oarart FLORICA EACH O7rLLE tv;:r E iHTE 1%. ( TOTAL t:ATHr a f. C'2.+3 GOZ TY. (R.4.3dA 89 3a F • MEDIAN FAMLY `INCOME DADE COUNTY 1969-1979 EXHIBIT 14 T13userde ;2t • J.B. BUREAU Of CENSUS Sio 1%160 • 1; i 1970 ® 10B0 FLORIDA U.S. (PERCENT) 1970 ® 1000 U.6. BUREAU Of OEN6U6 1Q10 a 1080 The absence of traditional avenues of success has allowed "the drug trade" to serve as the johs program as well as the entrepreneurial develop- ment program in certain underclass sections of the black community. The dearth of successful entrepreneurs and other successful blacks provides limited visible competition with the "drug dealer" as the neighbor- hood role model and mentor. Hundreds of young blacks males are faced with convincing incentives to choose crime as an alternative to the workplace. Simultaneously, black unwed teenage mothers are faced with convincing incentives to choose various combinations of AFDC, food stamps, Medicaid, public housing, etc. as alternatives to minimum wage jobs. Creative options must be devised to make the choices of crime and dependency undesirable. Many of the solu- tions require legislation, such as increasing the minimum wage and enhance- ments in the Project Independence concepts. There is a need to dramatically expand the many programs of mentors and tutors targeting the black communities. An effective jobs delivery system for targeted blacks does not exist. Such a system should coordinate the provision throughout Dade County of remediation training, job readiness training and counseling, occupational skills training and counseling, customized training for industry, on-the-job training, placement services, post- placement follow -up counseling and serv- ices, transportation suppon services, day care support services, Project Inde- pendence and other efforts to mitigate the "disincentive systems " A summary of jobs and income development barriers is listed below and is displayed graphically in EXHIBIT 16. • POOR EDUCATIONS/HIGH DROPOUT & ILLITERACY RATES • INADEQUATE TARGETING /MARKETING OF VOCATIONAI- EDUCATIONAL PROGRAMS • DISCOURAGING CLIMATE FOR GETTING "GOOD" JOBS • WIDESPREAD CRIME AND DRUG TRAFFICKING • INADEQUATE BLACK BUSINESS EXPANSIONS /FORMATIONS • DEMISE OF THE TWO - PARENT FAMILY • INADEQUATE MENTOR.ING, TRANSFERRING CULTURAL VALUES • DEPRESSED COMMERCIAL CORRIDORS • ABSENCE OF TARGETED JOBS DELIVERY SYSTEM 14 FAMIUE' BELOW POVERTY DADE /FLORIDA /USA EXHIBIT 16 weaoraymappaymiswir WIRE BARRIERS TO BLACK JOB GENERATION/INCOME GAINS EXHIBIT 16 DISCOURAGING CLIMATE DRUGS /CRIME RATE COMMERCIAL CORRIDORS 8OUROE: U.D.O.Q.M. INFRASTRUCTURE DEVELOPMENT 15 BLACK BUS.FORMATIONS VALUES /MENTORS NUCLEAR FAMILIES DROPOUT /READ'G RATES Over twenty commercial corridors in black communities throughout Dade County suffer from years of deterioration and neglected maintenance. The worst of these corridors become breeding grounds for vagrants, drug trafficking and other crimes . Merchants Located in depressed commercial corridors cannot be com- petitive with merchants in well maintained corridors in neighboringcom- munities. Many are also competing with stores in modern, air- conditioned, enclosed malls. In 1983, there were over 88,000 substandard housing units in Dade County and over 78,000 low income families were spending over 30 percent of their incomes on housing. (EXHIBIT 17). Sunbelt Research Corporation reported a shortage of over 98,000 low income rental units in Dade County in 1988. (EXHIBIT 17). Community development corporations engaged in commercial devel- opments and affordable housing development are becoming increasingly more successful and are making important improvements to the infrastructure. IMAM 20 BLACK COMMERCIAL CORRIDORS /AREAS TARGETED FOR REVITALIZATION housands 120 100 EXHIBIT 17 80 80- 40 CORRIDOR /COMMER. AREA NEIGHBORHOOD /CITY POINCIANA IND. PARK MODEL CITIES GRAND AVENUE COCONUT GROVE COMMERCIAL AREAS OVERTOWN HOMESTEAD AVE WEST PERRINE NORTHSIDE SHOPPING CNT WEST LITTLE RIVER NORTHWEST 7Th AVE. EDISON BUS. DISTRICT COMMERCIAL AREAS LITTLE HAITI NORTHWEST 27Th AVE. LIBERTY CITY COMMERCIAL AREAS CAROL CITY /NORTH DADE NORTHWEST 79Th ST. WEST LITTLE RIVER OPA -LOCKA BLVD. OPA -LOCKA COMMERCIAL AREAS HOMESTEAD /FLORIDA CITY COMMERCIAL AREAS SOUTH MIAMI COMMERCIAL AREAS GOULDS III Ill III, dills tnd iid4d3Y6graLi brtid av :d 6EeiWUdi'dW,wfu ltl adn, 8 u 6.uY di hiill,ud1861ewili:::i AIFFOR ABLE H U . 6NG ,. FkH•RTAGE . ' CTUNT F€ ORIDA 1983 no SUBSTANDARD UNITS U•6.OENSUS, SUNBELT RESEARCH, U.D.C.G•M. 16 1083 3) FAMIL'S SPEND'() 00%* 1088 cJ RENTAL DEMAND • 8t7URC :l1D.QQMYt The increasingly successful activities of several community develop- ment corlxorations (CDC's), with the assistance of several intermediary orga- nizations, GREATER MIAMI NEIGHBORHOODS, GREATER MLANII LOCAL INITIATIVES S 1j' )RT CORPORATION, GREATER MIA11t! 1 and HOMES FOR SOUTH FLORIDA, have produced within the List two ■tars several thousand affordable housing units in Dade County, of which several hundred have been in the black community. The support of the City of Miami and Dade County governments has been imperative to these suc- cesses. Special efforts must be made to avoid gentrification of desirable black neighborhoods once they are targeted for development. The Dade County Documentary Surtax Program is an important tool ir the provision of financing for affordable housing. The size of this pool of resources is woefully inadequate. Expanding the size of the Surtax pool to a multiple of three times the existing level would only accommodate an esti- mated 900 to 1000 additional units of new single family dwellings per year. Because conventional financing is difficult to attract to economically depressed areas, major, dramatic efforts are required to expand the size of commercial and residential development financing alternatives available to CDC's and private developers seeking to revitalize selected areas of black communities. A summary of infrastructure development barriers is listed below and is displayed graphically in EXHIBIT 18. • INADEQUATE CIRCULATION OF INCOME • INADEQUATE BLACK BUSINESS EXPANSIONS/FORMATIONS • WIDESPREAD CRIME AND DRUG TRAFFICKING DISCOURAGING RETAIL TRAFFIC • INADEQUATE CAPITAL/DEVELOPMENT FINANCING OPTIONS • DEPRESSED REAL ESTATE CLIMATE • INADEQUATE CDC/PRIVATE SECTOR JOINT VENTURES • WIDESPREAD UNEMPLOYMENT REDUCING AREA MARKETABILITY TO INFRASTRU TU : E DEVEL R ENT EXHST 18 DRUGS /CRIME RATE INCOME CIRCULATION CAPITAL FORMATION 17 BUSINESS FORMATIONS UNEMPLOYMENT RATE REAL ESTATE VALUES DEVELOPER TEAMS/CDCS 89 -39/ = , c.. Recommendations development of the strategic plan required first defining the barri- ed crs in each of the th cc areas of a analysis. (1) Business Dcvckrpmcnt. (_)) (2)Lobs of t11 e and Income Development and (3) Infrastructure Development. The summar- ies of these barriers are presented in LXI I1I31TS 10, 10 and 18. P : i:' : ::ss The slicer volume of problem areas to he addressed appears initially to be overwhelming. The approach envisioned, therefore, seeks to take advan. tags of the dozens of existing organizations that arc often working on the met solutions proposed. The challenge is not to reinvent the wheel. but to r facilitate the expansion of the better programs and where required, target the recipients of the services to include more of the identified populations. As an example, each of the numerous mentor programs currently oper- ating appears to assist between 15 and 150 youth. There is evidence of a need to serve several thousand more. A central coordinating body, THE 13LACh ECONOMIC DEVELOPMENT COALITION (BEDC), is to Count and pk)t on a map the address /neighborhood of each youth assisted by existing organiza- tions, to identify the most underserved areas and encourage the effective programs to expand in targeted neighborhoods; the BEDC might also join with those organizations in seeking the resources to support such expan- sion. This methodology prevents the BEDC from getting into the "men - toring industry ". In the event all mentoring organizations have reached their capacity, BEDC may encourage new organizations to participate. The BEDC would set a county -wide goal for the number of mentors/ youth matched in a given year, stimulate existing and new organizations to reach that goal, monitor the progress of all participating organ and reward with annual recognition the outstanding participants. Peer group accountability would be established for organizations making commitments that are not achieved. A summary of the overall goals of the plan are described generally as follows and are illustrated graphically as ENIIIBIT 19. GOALS OF STRATEGIC PLAN "THE TEN POINT PLAN" The Steering Committee of the PLANNED PROCESS proposes to raise 5500,000 in risk capital from black investors to establish and fund the \'EN- TURE DEVELOPMENT CORPORATION (VDC). This firm is to N.-come a for - profit affiliate of the ? 1A ?`1l -DADE CHA.MI31R OF COMMERCE and is to serve as a private sector, targeted, venture capital re: soul cc. The Steering Committee further proposes to cstahiish and facilitate dedicated snatching handing of the BLACK EC( )NON11C:1)FVI l.c)i'y1ENT COALITION (BEDC) as a non - profit subsidiary of the ;.1IA M1 -D.:DE CI -LANE BER OF COM'1ERCE. The BEDC would have the resp:,nsthility of establish- ing broad membership among organizations assist ing in black economic development and of assuring that through its membership, each of the tol- lowing ten goals is achieved. BUSINESS DEVELORtfENT GOALS 1. "Create a proactive black business development climate'' in Dade County by January 1, 1994, evidenced by a toted of 10,000 black owned businesses in Dade County, including 125 expansions of existing busi- nesses to levels of 50 employees or more. Package deals required for VDC funding. Facilitate target area incubators and other required supp, in systems. Establish goals for each year beginning in 1989. 2. "Improve income circulation within black Dade County" to a level that the sum of all black business receipts exceeds the equivalent of 10 ';,, of black Dade County income by 199.1. Establish goals for each year begin- ning in 1989. Asr roAK–Art 1: • GOALS OF STRATEGIC PLAN REQUIRED FOR POSITIVE CLIMATE EXHIBIT 19 TARGETED CONSTRUCT'N. PROACTIVE BUS.DEVEL. VALUES TRANSFER :1 • .2'; • • • • '; :1 V ' I. • • !: •!, • r f• *: I. • • SOURCE: U.D.C.G.M. TARGETED JOBS CAPITAL FORMATION REDUCED CRIME/DRUGS • . EDUCATION IMPROVUTS 0 e ol 19 7J INCOME CIRCULATION O5 TY 71DPHT 8 9 - 391.: ''' • - BLACK ECONOMIC DEVEL. COALITION NONPP 3 3. "Raise 5500,000 in risk capital" from blacks investors, creating the VENTURE DEVELOPMENT CORPORATION as the private sector proactive black business development financing resource by Janti ary 1, 1920. Through the Dade County government, the City of Miami, THE GREATER MIAMI CHAMBER OF COMMERCE, THE BEACON COUNCIL and THE BUSINESS ASSISTANC1T CENTER, raise the existing $5.5 million in total MESBIC capital targeted to Dade's black businesses to 520 million by January 1, 1990. Establisl a Committee of the VDC to finalize goals for targeted capital forma tion in future years. JOBS AND INCOME DEVELOPMENT GOALS 4. "Stimulate 10,000 new permanent targeted jobs," training slots and other necessary support systems (such as mentors, day care slots, etc.) by 1994, with black businesses assuming a goal of 50 % or 5,000 of the jobs. Establish goals for each year beginning in 1989. 5. "Create a five -year, multi -media and in person campaign to convey traditional black values" (such as "stay in school, the two- parent family, delayed gratification, buy black, drug -free neighborhoods, etc.) throughout the black community through churches, black youth, parents, mentors, media, the Ad Council, Dade County Public Schools, chambers of commerce, associations and institu- tions. Establish goals for each year beginning in 1989. 6. "Stimulate reduced crime rates and drug -free zones" in five targeted commercial and five targeted neighborhood areas in 1989. Work with the new drug task force to establish specific annual goals for the next five years beginning in 1989. 7. "Stimulate improved educational system outcomes," particularly reading and basic skill testing levels at inner -city schools through intensified parental, church and mentor involvement and support of dropout prevention programs, reducing the black dropout rate to 10% by 1994. Through a consortium of Dade's colleges and universities, increase black MBA graduates to 100 per year by 1994. Establish goals for each year beginning in 1989. ORGANIZATIONAL STRUCTURE BLACK ECONOMIC DEVELOPMENT COALITION CHAIMER COMMITTEES com Ep }} � //� {{ ��88�� 6 I1ETtll ED 20 VENTURE DEVELOPMENT CORPORATION IT FOR - PROFIT EXHIBIT 20 THREE SEPARATE BOARDS OF DIRECTORS gra IMPLEMENTATION PLAN EXHIBIT 21 INFRAS7R( ICTl 'RE DEt'ED )I'.11E,vT Gf M LS 8. "Stimulate the revitalization of 20 major projects" in commercial corridors black communities throughout Dade County by 1993 Establish targeted goals for each year beginning in 1989. 9. "Stimulate the development of 5000 units of affordable housing" within black communities by 1993 without gentrification. Establisl . targeted goals for each year beginning in 1989. 10. "Support the Liberty City Tax Increment District concept" and other methods for facilitating ample dedicated resources for the revitalization of several deteriorated black neighborhoods. The initial steps involved in the implementation of the recommenda- tions are as follows: 1. Incorporate and fund the "BLACK ECONOMIC DEVELOPMENT COALITION" as a non - profit subsidiary of the MIAMI -DADE CHAMBER OF COMMERCE. (EXHIBIT 21.) The preliminary estimate requires a dedi- cated source of funding at the level of $500,000 per year throughout the five year implementation phase. • The BEDC Board would Meet quarterly to review the progress of black economic development priorities, and • Coordinate activities among members • Leverage activities among members • Assign projects to appropriate members • Initiate projects none of the member organizations are well- suited to perform • Monitor the progress of and establish peer group accountability of member organizations and government agencies in fulfilling BEDC objectives, and • Advocate for change where required. ® The BEDC staff would Work through member organizations to assure that BEDC five-year goals are reduced to realistic annual goals, and • Monitor attainment of annual goals each year. • Assure implementation of specific recommendations made by BEDC board. • Provide packaging assistance to the VD C. • Establish a Dade - County -wide "targeted jobs delivery system" to identify and fill the gaps in services that must be provided in order for BEDC goals to be achieved. • Research the condition of black economic development BLA(IC ECONOMIC DEVEL COALITION COMMITTEE STRUCTURE BLACK ECONOMIC DEVELOPMENT COALITION BUSINESS JOBS AND INCOME INFRASTRUCTURE DEVELOPM'T DEVELOPM'T : DEVELOPM'T Black Enterprise, January 1988 2 Harriett McAdoo, The State of Black Anterica 1987. The National Urban League, January 1988. i William Julius Wilson, The Thu1y Disadvantaged: The Innen The Underclass and Public Polio; The University of Chicago Press. 1987. Ibid. s National Alliance of Business, Employment Policies Looking to the }Par 2000, Metropolitan Dade County, Children in hoed, A Social Crisis. 1988. " Dade County Grand Jug Final &port, July 17, 1984. Act VENTURE DEVELOPMENT CORPORATION ORGANIZATION STRUCTURE INVESTMENT COMMITTEE Footnotes 2. Establish and fund the VENTURE DEVELOPMENT CORPORATION, a for - profit, privately held corporation, performing as an investment holding company, with black investors (EXIIIBIT 22). VDC would seek $500,080 in initial capitali72tion; seek to highly leverage targeted minority capital funds and conventional capital sources; consider deals by black -owned businesses located within Dade County; pro- actively consider, when interested, "BEDC" business development priorities, including franchises, labor -extensive projects and promis- ing, tourist - oriented, labor - intensive projects. VDC would also pursue "LBO's" and other opportunities; monitor, own and manage where required the assets purchased; and encourage BEDC to build management, technological and legal capacities to improve the quality of packages presented for funding. 3. Set the agenda for the initial BEDC board meeting. VENTURE DEVELOPMENT CORPORATION INVESTMENT HOLDING CO. 22 8 Metropolitan Dade County, Children in Need, a Social Crisis, March 1988. Y Dade County Grand Jury Final Report, July 17, 1984, p.6. Dade County Grand Jury Final Report, May 11, 1988. 1 ' Dade County Grand Jury Final Report, July 17, 1984, p.44. 42 Dade County Grand Jury Final Repon, May 11, 1988, p.21 Dade County Grand Jury Final Report, November 16, 1988, p.21 " Ibid. CAPITAL FORMATION ($500,000 PRIVATELY RAISED FUND) EXHIBIT 22 IS Ibid. 1 " Ibid. 4 " Ibid. '" Michael Harrington, W7ao are the Poor? Campaign for Human Development, United States Catholic Conference, 1987. ¢iiooilaioui.iioe,ihiio 11111, ik 1111111i,II 1 ii I Beacon Council. Direction — .4 Strategic Plan far lkede'z Economic l'utrerr. November. 1985. Beacon Council, Miami-Dade Cunnrty /yeti Jdc', 1986 - 198'. Bender, David I. The 11"e'IJam Slate. Opposing (}ruyortts Third Edition. Greenhaven Press, St Paul, Minnesota 1982. Black Business News tune 198 . Black Enterprise. C. nlrontnrg the Challenge o (.hanging Economy Januan'. 1988. Black Enterprise Etc on the nitun', September, 1988. Black Enterprise. Tourism and Tavel, May 1988. 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