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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
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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
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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.
•
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3 UM
es% on @CORE
c041, TO CM
d talk —m "sr,4TO G1%
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! €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.
Black Issues in Higher Education. January 1988,
20(4), t
Black Issues in Higher Education. June 1988'(5), 1
Black ISStac.' in Higher Education. November,
198 16(4), 1
Black Issues in Higher Education. August 1988 10
(5)
Carson. Emmett D., Pulling )burse /J(ph }(our
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89