HomeMy WebLinkAboutR-85-0631R �F
RESOLUTION NOrw ""fiai
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE AN AGREEMENT IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY WITH
HAMMER. SILERs GEORGE ASSOCIATES, FOR A
FEE NOT TO EXCEED $43,640 TO PREPARE AN
ECONOMIC ANALYSIS AND GROWTH PROJECTIONS
FOR THE PROPOSED DOWNTOWN DEVELOPMENT
PLAN AND DRI APPLICATION, WHICH
INCORPORATES THE PRINCIPAL FACTORS IN THE
ATTACHED PROPOSAL DATED APRIL 309 19851r
WITH FUNDS THEREFOR TO BE EXPENDED FROM
FY 184-185 SPECIAL PROGRAMS AND ACCOUNTS.
WHEREASs by Resolution No. 85-2081 dated February 289 1985,
the City Commission authorized procedures necessary to obtain
professional services to assist in the preparation of a
comprehensive Downtown Development Plan and an Application for
Development Approval for downtown as a Development of Regional
Impact, and further instructing the City Manager to identify the
sources of $400,00 in funds and for said project; and
WHEREAS, the fee of $43,640 recommended for consultant
services to prepare an economic analysis and growth projections
has been budgeted within the total amount of $1509000 earmarked
from Special Programs and Accounts to cover project costs during
FY 184-185; and
WHEREAS, the City has advertised publicly for consultant
proposals to prepare an economic analysis and growth projections
for said project, and a nine member selection committee
established by the City Manager has evaluated all eligible
proposals according to criteria set forth in the Request for
Proposals; and
WHEREAS, the selection committee has personally interviewed
consultants who submitted the four top rated proposals and ranked
said proposals as follows: 1) Hammer, Siler, George Associates,
2) Real. Estate Research Corporation, 3) AB2MT, 4) Coopers and
Lybrand; and
WHEREAS, the proposal submitted by hammer, Siler, George
Associates provides the highest quality professional services
available to the City at a reasonable cost;
CITY COMMISSION
MEETING OF
JUN 13 1985
.W IUD nu. 85-631
RKS.
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t4OVI THtREFORt4 tt IT HgoLVED BY THE COM1418SION OF THE CITY
OF MIAMI, FLORIDA:
2tttioh 1. The City Manager is hereby auth6fi2td to enter
into an agreement$ in a form acceptable to the City Attorney,
with liarnmerg Siierf George Associates* for a fee not to exceed
$43,640# to prepare an economic analysis and growth projections
for the proposed Downtown Development Plan and Development of
Regional impact application, which incorporates the principal
factors in the attached proposal, dated April 30, 1985, with the
additional stipulation that Ms. Kimberly Parker, attorney with
offices at 1865 Brickell Avenue, shall perform the land valuation
analysis as a subconsultant to Hammer, Silerg George Associates.
Section 2. Funds therefor shall be expended from FY 184-
185 Special Programs and Accounts.
PASSED AND ADOPTED this 13th_ day of June -
ATTEST:
Opp
Ralf h G. Ongie , City CMrk
PREPARED AND APPROVED BY:
Assistant City Attorney
APPRO AS TO FORM AND CORRECTNESS:
Mcia Doughdety ....... ....
City Attorney
Maurice A. Ferre
MAURICE A. FERREO MAYOR
85-631
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- Cl" OP MIAMI. PLORIbA
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The Honorable Mayan and Members DATE:
of the City Commission
SUBJECT: Economic Consultant -
Downtown Plan and DRI
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RAW At0tkENCEs:
Sergio Perei a City Commission Meeting
City Manager ENCLOSURES: of June 13, 1985
It is recommended that the
Commission adopt the attached
resolution authorizing the City
Manager to execute an agreement,
in a form acceptable to the City
Attorney, with Hammer, Siler,
George and Associates, for a fee
not to exceed $432b.0� , to
prepare an economic analysis and
growth projections for the
proposed Downtown Development
s
Plan and Development of Regional
Impact (DRI) application, which
incorporates the principal
features in the attached
-
proposal, dated April 30, 1985,
with the stipulation that Ms.
Kimberly Parker, attorney with
offices at 1865 Brickell Avenue,
shall perform the land valuation
analysis as a subconsultant to
Hammer, Siler, George
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Associates; and with funds
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therefore to be expended from
FY - 185 Special Program and
Accounts.
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Consultant Selection Process
On April 15, 1985, the City advertised publicly for proposals from
economic consultants to prepare an economic analysis and growth
projections for the proposed Downtown Development Plan and
Development of Regional Impact (DRI) application. A total of seven
proposals were received; one was disqualified for not meeting the
submission deadline of 5:00 PM, May 1, 1985. A nine -member selection
committee met on May 6, 1985 to review the submissions and short-
listed four proposals for oral presentations and interviews. The
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The honorable Mayor and Members
of the City Commission
interviews were held on May 13, 1985, following whioh, the Committee
Compiled the following ranking!
1. Hammer, Siler, George Associates
2. Real Estate Research Corporation
3. AB MT
4. Co8pers and Lybrand
Evaluation
The following criteria and percentage weights were published in the
Request for Proposals and utilized by the selection committee to rate
individual proposals and compile the final ranking.
20% A. Proposed Methodology for Growth Projections
15% B. Familiarity with Local Economic Conditions
15% C. Qualifications and Experience of Individuals Assigned to
the Project
10% D. Experience in Similar Projects
10% E. Overall Experience and Reputation of Firm
10% F. Minority Participation
20% G. Proposed Fee for Services Requested by the City
Hammer, Siler, George Associates was ranked first by the selection
committee for the following reasons:
a. their proposed methodology was considered the most thoughtful
and suitable approach to the project.
b. the firm has an excellent reputation and proven performance
record, a crucial consideration due to the brief ninety day
deadline for completion of the study.
c. George Dengler and Cliff Henry, who would be responsible for
this project, have previously conducted market studies for
special projects by the City of Miami including Southeast
Overtown Park West, Dinner Key Master Plan, and the Civic
Center. Thus, they bring to the project a familiarity with
the local market and an existing base of information that
saves time and cost to the City. This factor outweighs the
fact that their office is located in Silver Spring, Md.
d. their proposed fee of $43,646 was the best deal for the City,
based upon comparable services offered by other consultants.
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The Honorable Mayor and Members
of the City► commission
Minority Particibation
The recommended consultant, Hammer, Siler, George Associates is not a
minority owned firm; however two of the four individuals who will
perform the work on this project are black. This includes Mr. Cliff
Henry who is a Vice President and stockholder in the firm. In
addition, Hammer, Siler, George Associates is committed to
subcontract the portion of the work program related to land value
analysis to Ms. Kimberly Parker, a local black attorney, with
offices at 1865 Brickell Avenue.
Selection Committee Members
Joseph W. McManus, Asst. Director, Planning Department
David Whittington, Chief of General Planning, Planning Department
Joyce Meyers, Project Manager, Planning Department
Annette DeLara, Supervisor of Economic Research, Finance Department
Adam Lukin, Downtown Development Authority
Dr. Charles Blowers, Dade County Planning Department
J. Antonio Villamil, Senior Vice President and Economist, Southeast
Bank, N.A.
Peter Clark, President, Clark -Biondi Realtors
Thomas Patrick, Coldwell Banker Commercial Realtors - (did not
attend)
SP/SR/JAM
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PROPOSAL FOR
ECONOMIC ANALYSIS AND GRFFWTH PROJECTIONS it
FOR CITY OF MIAMI
DOWNTOWNDEVELOPMENTPKFN AND DRI
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April 30, 1985
r Mr. Sergio Rodriguez
( Director
City of Miami Planning Department
275 NW 2nd Street
f Miami, Florida 33233-0708
y, Dear Mr. Rodriguez:
Hammer, Siler, George Associates is pleased to submit this
proposal to prepare economic and growth projections for downtown Miami.
` It is our understanding that this work will provide the basis for the
E development of a comprehensive development plan for the year 2005 and an
Application for Development Approval for Downtown as a Development of
Regional Impact pursuant to Chapter 380.06 of the Florida Statutes.
r We believe that previous assignments undertaken by us for the
City of Miami uniquely qualifies us for this assignment. These prior
assignments have included the Miami Civic Center Area Study in which we
assisted the city planning staff in analyzing the development potential
for specific land parcels. A 200-room Days Inn and a branch bank have
been constructed to date. Medical offices and residential developments
are also expected to be developed in the area. In the Southeast
Overtown/Park West assignment Hammer, Siler, George Associates con-
ducted an economic analysis of the market potential for residential,
` office, retail, and hotel development within this 200 acre area. In
this assignment we also conducted a land value analysis and provided the
economic analysis for the development of regional impact. HSGA also
served as the economic consultant on the team of Bermello, Kurki and
L Vera, Inc., to update the Dinner Key Plan. Our role was to evaluate the
potential of the Dinner Key Area for expanded marina and retail activi-
ties and to make recommendations with respect City lease negotiations
with private entrepreneurs in the area. We have conducted several other
private studies in downtown Miami in recent years.
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Mr. Sergio Rodriguez
Page 2
Each of these assignments required an understanding of the Dade
County economy and projecting the share of County growth that could be
Captured by the City. Each also involved projecting the distribution of
City growth between downtown and other locations within the City. This
background provides us with the fundamentals required to understand the
dynamics of this assignment. At the same time, we recognize that Miami
is an international city with substantial economic linkages to Latin
America and the Caribbean. This reality requires an understanding of
the economic conditions prevailing in Latin America and their potential
impact on development trends within the City of Miami.
It is for this reason that our approach would be to conduct a
rigorous analysis for the periods 1985-1990 and 1990 and 1995 but with a
lessor effort for the period 1995-2000 and 2000 to 20005. Projections
would be made for the entire period, but the plan should be continually
monitored and updated following the 1990 census. In our approach, we
will designate the Omni Area as Subsector A; Southeast Overtown/Park
West as Subsector B; the Central Business District as Subsector C; and
the Brickell area as Subsector D. Each subsector will also be analyzed
and projections made for areas which are within the Downtown Development
Authority boundaries and also for areas outside of the DDA boundaries
which make up the Development of Regional Impact Study Area.
LStaffing
of the Assignment
I will serve as Project Director of this assignment and will be
assisted by Clifton Henry, also a Vice President of the firm. My
experience in Miami includes serving as the Project Director for the
Civic Center Area Study and conducting the office and retail analysis
for the Southeast Overtown/Park West Study. In addition to these
activities I have work for the private sector on the Omni Center and the
L
Southeast Bank Center in the downtown. I have also undertaken other
studies for private developers in Dade County.
LMr.
Henry has also directed a number of studies for the firm in
Miami including the Southeast Overtown/ Park West Study, the Dinner Key
Study, the Model Cities Transit Corridor Study and the economic analysis
Lfor
the Economic Adjustment Study.
We will be joined by Patricia Thornton -Beach and Catherine Brown.
Both are Associates of the firm who will serve as research assistants.
L
Both have assisted me on similar assignments undertaken by the firm.
All of our resumes have been included in this proposal and a breakdown
of our hours has been provided, among other items, following the work
scope presentation.
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Mr. Sergio Rodriguez
April 30, 1985
page 3
Organizational Structure
Hammer, Siler, George Associates Inc. is a privately held
corporation which has been in business for over 30 years. Mr. Robert
Siler is the President, and his home address is 601 G Street S.W.,
Washington, D.C., 200024; the Executive Vice President is Mr. Vernon
George, and his home address is 1038 Dead Run Drive, McLean, Virginia,
f 22101. On this assignment, principals also include Mr. Clifton W. Henry
whose home address is 9524 Linden Avenue, Bethesda, Maryland 20814; and
myself, George Dengler, Vice President, residing at 224 West Lanvale
Street, Baltimore, Maryland 21217.
Experience and Qualifications
_ A special section on our corporate experience and project
experience relevant to this assignment has been included at the end of
` the proposal. Resumes of staff assigned. to this work have also been
L included in this section.
Minority Participation
Hammer, Siler, George Associates is an equal opportunity employer
with a stated policy of nondiscrimination because of age, race, creed,
color, religion, sex, or national origin. Three of the four staff
members assigned to this work are minorities and/or women. In addition,
as noted above Mr. Henry is also a principal and stockholder in the
L firm. In addition, Hammer, Siler, George has made it a policy to work
with minority firms of complementary disciplines. In Miami, the firm
has worked with Bermello, Kurki, and Vera, Inc., and Ronald Frazier and
Associates.
LProposed Methodology, Fee for Services, and Task Time Schedule
f Our proposed methodology has been incorporated in the scope of
L work which can be found in a separate section of this proposal. Our
projected fee for services rendered can be found in the budget section
L of the report, and a task time schedule can be found immediately
following the scope of work.
Office Location
LAll work on this assignment will be conducted from our
headquarters office located at 1111 Bonifant Street, Silver Spring,
Maryland 20910. All staff assigned to this work are located in the
headquarters office.
N
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Mr. Sergio
Rodriguez
April 30.
1985
Page 4
We
appreciate the
opportunity to respond to this RFP and look
Should
forward to
working for
the City of Miami again. you require
additional
information,
please let me know and I will forward it to you
immediately.
Sincerely,
Georgeengler!/�
Vice President
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inHAMMER, SILER, GEORGE ASSOCIATES
• ECONOMIC DEVELOPMENT CONSULTANTS
AATLANTA• DENVER • ORLANDO • SILVER SPRING • WASHINGTON
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IS AND GROWTH PROJECTIONS FOR CITY OF
SCOPE OF WORK
I. Market Analysis
The market analysis work will draw upon and test projections made
by DDA and the City of Miami Planning Department to 2005. It will also
draw upon a data base established through our recent work in Miami.
These and other studies and documents will be reviewed and updated based
on independent field research and data collection. The work to be
accomplished under this task is described in detail following.
A. Office
1. Comp�titive Framework. A survey of existing general tenant
Billdings downtown and by Sectors), office park facilities,
and major freestanding general tenant buildings in the region
will be made. The inventory will include building size,
occupancy level, general tenant composition, rent structure,
and quality rating. A profile will be obtained which will
indicate operating experiences and differences in market
orientation between downtown (and its Sectors) and the suburbs.
We will draw upon our office work for the Southeast Overtown/
Park West project and from other recent work in southeast
Florida for undertaking the inventory. This will be supple-
mented by interviews with commercial office realtors, BOMA,
building managers and others knowledgeable about the current
Miami office market.
2. Trends. The trends in the development and absorption of
general tenant office space in the market area over the past 10
years will be examined based upon municipal records and inter-
views with owners and realtors. The analysis will include the
absorption rate of office space by location, tenant types, and
rent levels.
As -part of the trends analysis, we will also inventory the
absorption of government and regional/headquarters office space
during the same time period.
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3+ Future Development Potentials. The role of the CBD in the
uture regional general tenant market will be forecast based on
projected employment by industry groupings for the Miami region
and the anticipated competitive position of downtown within the
region. These evaluations will be based on past office space
development and absorption trends in downtown and in the
suburbs as well as trends in office sector employment as a
+ share of total regional employment growth. Replacement office
space needs will also be considered as part of this task.
Based on these analyses, conclusions and recommendations will
be made as to the amount, type, rent structure, and timing of
new general tenant office development which can be developed
downtown by 1.990, 1995, 2000 and 2005. In turn, the accommoda-
tion of the overall general tenant office space demand in
Sectors A, B, C and D will be evaluated and estimated by the
Consultant for the same study years above.
Future corporate office space needs are based primarily on
corporate decisions rather than market analysis. Based on
discussions with key corporate leaders concerning their
future needs and expansion plans, we will estimate the
amount of corporate (including regional or branch office)
office space that can be accommodated in downtown Miami by
Sectors (A,B, C and D) by 1990, 1995, 2000 and 2005.
B. Retail/Services
The Consultant will evaluate the potential for new retail and
services space for the CBD and the four subsectors. We will draw upon
our experience in several private downtown projects in recent years as
well as the Southeast Overtown/Park West experience. These data will be
updated and projected into the future. Future retail potential will be
projected for shoppers goods, convenience goods and business/personal
services categories.
The opportunities for future retail potential will be generated by
the residential trade area, downtown employment, and other user groups
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3. Future Development Potentials. The role of the CBD in the
uture regional general tenant market will be forecast based on
projected employment by industry groupings for the Miami region
and the anticipated competitive position of downtown within the
region. These evaluations will be based on past office space
development and absorption trends in downtown and in the
suburbs as well as trends in office sector employment as a
+ share of total regional employment growth. Replacement office
space needs will also be considered as part of this task.
Based on these analyses, conclusions and recommendations will
be made as to the amount, type, rent structure, and timing of
new general tenant office development which can be developed
downtown by 1990, 1995, 2000 and 2005. 1n turn, the accommoda-
tion of the overall general tenant office space demand in
Sectors A, B, C and D will be evaluated and estimated by the
Consultant for the same study years above.
Future corporate office space needs are based primarily on
corporate decisions rather than market analysis. Based on
discussions with key corporate leaders concerning their
future needs and expansion plans, we will estimate the
amount of corporate (including regional or branch office)
office space that can be accommodated in downtown Miami by
Sectors (A,B, C and D) by 1990, 1995, 2000 and 2005.
B. Retail/Services
The Consultant will evaluate the potential for new retail and
services space for the CBD and the four subsectors. We will draw upon
our experience in several private downtown projects in recent years as
well as the Southeast Overtown/Park West experience. These data will be
updated and projected into the future. Future retail potential will be
projected for shoppers goods, convenience goods and business/personal
services categories.
The opportunities for future retail potential will be generated by
the residential trade area, downtown employment, and other user groups
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(conventioneers, tourists, business visitors etc.). Steps 3n the
process of defining these opportunities include:
1. Market Sources. Define the residential trade area (possibly
primary and secondary subzones) attributable to CBD retailing
and estimate the future population, households and household
income levels of the trade area for 1990, 1995, 2000 and 2005.
Project downtown employment for the same years above.
Projected annual convention delegates, tourists and business
visitors to downtown for the same study years above.
2. Project Expenditure Potentials. The retail expenditure
potential for each of these sources will be projected by retail
categories and type of stores for the study years. The
shoppers goods category will be subdivided into apparel,
furniture/home furnishings, and miscellaneous (gift, jewelry,
book, toy and hobby, etc.) units. The convenience goods
category will be subdivided into food, drug, eating/drinking,
hardware, florists, etc, units. Business/personal services
includes travel agents, photographers, cleaners, repair shops
and others.
The expenditure projection for the trade area residents will be
based on discernible national and state income -retail expendi-
ture trends. The expenditures for downtown employees will be
based on local information, if available, or on data the
Consultant has compiled in surveys in other major cities. The
expenditures for the visitors will be based either on local
data supplied by convention and hotel people or national
averages.
The expenditure potentials generated for each retail category
represent the total amounts available to be captured by
retailers not only in the CBD, but at all other locations in
the Miami region as well.
3. Com etitive Evaluation. As a measure for determining the type
an amount of new retailing that can be successfully developed
downtown, the existing and known future retail infrastructure
must be evaluated for its effectiveness in fulfilling consumer
needs today and in the future. Accordingly, we will inventory
retail concentrations and modes in the CBD by locations, store
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types, and densities. We will competitively evaluate existing
and planned retail store's mix, merchandising, layout, and
quality attributes. We will estimate existing sales by store
type. In carrying out this task we will conduct merchant
interviews with different types of operations at several
locations throuahout the CBD.
We will also inventory and evaluate major shopping centers in
the Miami area which compete with downtown for a share of trade
area expenditure potential.
4. Project Retail Potential. Based on a close evaluation of
market sources, the generated potentials from those sources,
the strength of the existing and developing retail infrastruc-
ture, we will project the sales potential available to new
retailers in the CBD for the study years. These sales poten-
tials will be converted to warranted gross leasable area of
floor space based on acceptable industry standards of sales per
square foot/floor area relationships for new retail space.
Special attention will be given here to identifying the likely
types of retailing to be realized in Sections A, B, C, and D,
respectively. The gross square footage of retail space will be
estimated by major store type categories for each subsector.
C. Hotels
In this Task the Consultant will evaluate the potential for new
hotel construction for the CBD and its subsectors. Our work on the
Civic Center and Southeast Overtown/Park West projects will provide
basic data which will then be updated and expanded. Tasks to be
performed in this assignment include:
e
1. Competitive Framework. An analysis of the major competitive
existing transient accommodations will be made and these
facilities will be grouped by downtown and appropriate suburban
locations. The market factors to be considered in the analysis
will include number of rooms, occupancy levels, rate structure,
amenities offered and market support base (commercial, tourist/
convention, highway traveler, etc.). Basic information on
market trends will come from our recent work experience. The
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updating of this information will be obtained through secondary
local hotel industry sources and selected hotel management
interviews.
The competitive analysis will take into consideration planned
new transient facilities.
2. Forecast Demand. The market will be broken into sectors,
including: the commercial market relating to area businesses;
visitors and tourists; delegates attending conventions,
conferences, seminars and training sessions; and pass -through
transients. Each of these sectors will be forecast. Commer-
cial demand projections are tied to future employment ratios;
visitors and tourists, to population and tourist attractions/
attendance data; delegates, to future convention activity
bookings and estimates. The information necessary to make
these projections will come from public agency estimates (e.g.,
employment), Chamber of Commerce data, and interviews with
convention bureau personnel, highway officials and hotel
personnel, among others.
Projections of future hotel room demand will be the product of
estimates of future additional hotel room nights by sources at
assumed operating levels and indicated replacement room demand
based on obsolescence of part of the existing inventory. The
projections will be for the years 1990, 1995, 2000 and 2005.
3. Hotel Development Potential. Based upon the forecast of
additional new and replacement hotel room demand in the overall
Miami hotel market and the anticipated competitive position of
downtown to accommodate the various levels (or consumer
sources) of demand, we will estimate the total number of new
rooms that could be supported downtown and in Sectors A, B, C
and D for the study years above. The recommendations will
include the number, size and types of facilities to be
developed in response to the characteristics of the market,
and the timing of development by Sectors.
D. Residential
The Consultant shall evaluate the potential for new residential
construction for the entire CBD and for Sectors A,B, C and D. The tasks
involved here include:
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1. Analyze Regional Housing Trends. We will evaluate housing
market trends in the Miami region based on 1970 and 1980 Census
information, building permit data, and other information from
public agencies. We will project regional housing demand by
type and price for 1990, 1995, 2000 and 2005. In performing
this Task we will update the considerable housing research we
undertook as part of the Overtown/Park West project in October
1983.
2. Analyze City Housing Trends. We will examine the dynamics
of the housing market in the City of Miami using 1970-1980
Census data, data from our 1983 Southeast Overtown/Park West
report, building permit data, other current data from local
agencies and interviews with local realtors and data from MLS.
From ;.his we will determine the nature and strength of current
housing demand downtown and in other parts of the City as
reflected in sales and vacancy ratios. We will characterize
the areas where significant housing demand exists and indicate
the market and/or social factors influencing that demand. We
will also identify, characterize and evaluate the market
performance of new housing constructed in the City over the
past three years.
3. Competitive A�na_l, ski s_. We will inventory and evaluate all
competitive rental and sales housing in the downcown study area
(and its subsectors) and in competitive locations elsewhere
from available data or field surveys. We will characterize the
demand for housing in the downtown area over the past five (5)
years by number, type, rental or prices, rental or buyer
characteristics, amenities, and vacancy trends. This task also
provides information on the recent annual absorption rate of
downtown units by type and rental/sales price range. This
analysis will be based on MLS or other sources of sales
transactions, interviews with local realtors and lenders,
newspaper ads, and any surveys which might have been undertaken
as part of recent studies.
We will identify new housing proposals that will be competitive
for the downtown market.
4. Downtown Housing Demand Potential. Within the framework of the
regional market demand projections, we will estimate the poten-
tial demand for downtown sales and rental housing for 1990,
1995, 2000 and 2005 by number, unit mix, size, rental/price
ranges. We will also identify the amenities required for
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market acceptance of downtown housing, including commercial,
entertainment/recreational facilities, and so forth.
The projections above will be for the CBD and for Sectors A, 8,
C, and D.
E. Entertainment/Recreation
Entertainment/recreation is defined here to mean activities other
than retailing which will draw people to the CBD during evening hours.
Included would be legitimate theatres, movie theatres, restaurants,
niqht clubs and other commercial recreational activities. Support for
these activities would come from a primary and regional trade area
residential base and from visitors, especially those housed in downtown
hotels. The steps in conducting this analysis include:
1. Market Sources. Define the primary and regional residential
trade areas attributable to downtown entertainment and estimate
the future population, households, and household income levels
of the trade areas for 1990, 1995, 2000 and 2005.
Project downtown visitor days generated by existing and future
hotels at assumed occupancy levels and persons per room. These
projections will be separated into convention, tourist and
business visitors because of differing persons per room and
daily expenditure characteristics of these groups. Data to be
used in performing this task will be derived from interviews
and discussions with local hotel and convention officials.
2. Project Expenditure Potentials. The entertainment expenditure
potentials for each source above will be projected for the
study years 1990, 1995, 2000 and 2005. The expenditures
generated by the trade area residents will be based on discer-
nible national and state income -entertainment expenditure
relationships. The expenditures generated by visitors will be
separated by convention delegates, tourist and business
visitors and based either on local information available
through the Convention Bureau and hotels, information available
to the Consultant through other surveys, or national averages
depending on the availability of data. Visitor eating/drinking
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expenditures will be separated into those spent in hotels and
outside hotels (the latter being the overa7 potential
available to a new entertainment complex).
The expenditure potentials generated for each entertainment
category represent the total amounts available to be captured
by facilities not only downtown but at other appropriate
locations in the Miami region as well.
3. Competitive Evaluation. We will inventory legitimate theatres,
concert halls, movie theatres, night clubs, and other major
recreational facilities now or contemplated to compete for
future entertainment dollars. Though interviews with manage-
ments we will ascertain audience support sources and gather an
operating profile on these facilities. This task will also
assist the Consultant in determining what entertainment
facilities are adequately not adequately developed in downtown
Miami.
4. Project Mall Entertainment/Recreation Potential. Projections
will be made based on a close evaluation of market sources,•the
generated sales potential from these sources, the type and
relative success of entertainment facilities downtown, and an
overall evaluation of the extent and appeal of similar suburban
entertainment facilities. We will project the sales potential
available to new entertainment/recreation facilities in the CBD
for the study years 1990, 1995, 2000 and 2005. These sales
potentials will be converted to warranted floor area or seats
or other appropriate measurement based on acceptable industry
standards of sales/ physical development relationships. The
recommendations will distinguish between and dimension various
entertainment facilities that should be considered for future
development (theaters, night clubs, restaurants, etc.) and what
minimum mix and density might be required in order to ensure
the successful development of any particular complex.
The future projections here will be for the CBD and for its
subsectors.
F. Wholesale and Industrial
In this section, the Consultant will evaluate the potential demand
for wholesaling and industrial land within the CBD and its subsectors.
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The basic approach will be to determine the extent of current whole-
saling and industrial land demands, if any, in central Miami locations,
how competitive land in the area is for that market, and to project the
probable absorption rate for such land for the study years. Specific
work tasks will include:
1. Assess Wholesaling/Industrial Trends. We will assess trends
generally within the metropolitan area and the CBD based on
employment data, land use trends, industrial development
activity as recorded by local agencies, and interviews with
local industrial realtors.
2. Competition. An analysis of the principal wholesaling/
industrial districts in the region will be undertaken. The
survey will include the amount of available land in each zoned
and ready for development, and the price. We will seek to
determine sales and development activity at each location for
the past three years.
3. Project Wholesaling/Industrial Land Absorption Potential.
Projection will be made of the demand for wholesaling/
industrial land in the Miami CBD and its subsectors in acres
for 1990, 1995, 2000 and 2005, taking into account the level
and character of metropolitan market demands and the
competition for that market.
G. Employment and Residents
Once the market analysis for downtown land uses in completed, the
results will be used to assist the Consultant in projecting future
levels of employment by major categories (i.e., office, retail,
manufacturing, etc.) and population (residents). The increases in these
demographic indices resulting from projected development will be
evaluated against existing estimates of CBD employment and population.
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This task will Culminate in a projection of employment and
residential population levels in the C50 and its subareas for 1990,
1995, 2000 and 2005.
II. Analysis of Land Values
The Consultant will analyze existing land values in the CBD and
recent trends in these values. The analysis will culminate in a
projected growth in assessed property values (land and improvements) for
the target study years (1990, 1995, 2000 and 2005). This task will
include:
1. Interview the local tax assessor.
2. Interview local realtors knowledgeable of CBD land values,
offerings and recent transactions.
3. Analyze data from the tax appraisors file.
A second work component will be to assess current and project
future market values for land in various locations for the aforemen-
tioned target years. In approaching this task, the CBD and its sub -
sectors will be divided into geographic "market areas" reflecting
general land values in a designated area ($20 square foot. . . $100
square foot, etc.) and projections will be made of future changes in
these values based on anticipated development trends and other economic
forces at work in the designated areas.
III. Developing Em oyment and Economic Characteristics
Tor —the Deve opment of RegionsImpact R
This task in the scope addresses the need to develop information
required in the Application for Development Approval downtown as defined
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by the Development of Regional Impact pursuant to Chapter 380.06 of the
Florida Statues.
Question 20 of the application requires specific economic impact
analysis of either the proposed project or plan relating to construction
cost and expenditure distributions, construction employment, projections
of full-time equivalent employment with wage or salary distributions,
the extent of existing economic activity on the site or within the
planning area, public sector financing requirements and sources of
funds, and market area data by both project sector and the phasing of
the project.
The development of a realistic response requires both a sound
assessment of the market and probable absorption levels for types of
land uses, and also requires the formulation of an accurate set of
assumptions relating to construction cost by use type, the distribution
percentages for development cost dollars, and the number of construction
jobs generated by square foot of construction or by dollar volume of
construction. In addition it requires the development of a realistic set
of assumptions relating to permanent full-time equivalent jobs at
project build out or by phase if applicable.
Our approach would be to review the assumptions formulated for the
Southeast Overtown/Park West Project in light of current market factors
to determine what modifications, if any, should be made in those assump-
tions. We would also review the assumptions utilized in developing the
calculations for the Government Center DRI application. Following these
reviews, we would reformulate any assumption which required changing
due to changes in the market or the type of development projects
expected to'be put into place.
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Your RFP indicates that this assignment will only require the
completion of Tables 20.1,20.2,20.5, 20.6 and Figure 20.1. We therefore
assume that the missing tables which include those not identified
through 20.11 will not be required in the application process. Once the
assumptions have been established for the appropriate impact data the
calculations will be run by personal computer using the development
program projected and assumptions jointly agreed upon by Consultant and
Client.
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HAMMER, SILER, GEORGE ASSOCIATES
ECONOMIC& DEVELOPMENT CONSULTANTS
ATLANTA • DENVER • ORLANDO • SILVER SPRING • WASHINGTON
J
P
PROR E0 STUDY BUDGET
M
A. La�or
II Market Analysis
Mice
B. Retail/Services
C. Hotel
D. Residential
E. Entertainment/Recreation
F. Wholesale/Industrial
G. Employment/Population
II, Analysis of Land Values
III. DRI
Subtotal
B. Meetings
eetings/Presentations
Subtotal
C. Expenses
Six Trips @ $700
Report Production, Telephone, Xerox,
Etc.
Total Budget
80
96
112
100
72
64
16
64
56
10
670
$ 4,400
6,280
6,160
5,500
3,960
3,520
880
4,160
4_
$38,340
800
$39,140
$ 4,200
300
$43,640
ADDITIONAL WORK
FEE STRUC URE
The fee for any additional work that might be necessary to meet
sufficiency requirements that may result from south Florida Regional
Planning Council review of the DRI application would be on a per diem
basis. The hourly rate structure is $75-$95 for a Vice President;
$40-$50 for an Associate; and $25-$35 for support staff.
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MEETINGS
We propose that three
client
meetings be held during the study
-- one at the outset
of the
assignment; one following conclusion
process
of the market analysis; and
one at
the conclusion of the study process
to present the technical
report.
We would also make up to four
t
presentations to other agencies
and
groups as directed by the Client
(with these presentations scheduled
on one or two consecutive days).
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TIME
SCHEDULE
Task
Date_Begin
bate Completed
1,
Market Analysis
June 24
August 12
11.
Analysis of Land Values
August 5
August 19
111.
DRI
August 21
August 30
IV.
Submission of Draft Report
August 12
September 6
V.
Submission of Final Report
September 20 1/
1/ Assumes all client comments on the
draft be received
— by September 13.
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George Dengler, a Vice President of HSGA, will be the Project
Director with direct responsibility for the study and the technical
results. He will direct the support staff, conduct key interviews,
assist in report preparation, attend all meetings and presentations, and
have responsibility for the report production and content. Mr. Dengler
will devote 200 hours to the assignment.
Clifton Henry, also a Vice President of HSGA, will have primary
responsibility for all work items relating to the DRI preparation. In
addition, he will draw from his recent experience in the market to
assist the team in formulating market conclusions relating to land use
demand. Mr. Henry will spend 80 hours on the project..
Patricia Beach, an Associate, will be one of the two analysts
assigned to the project. Ms. Beach will have the responsibility for
conducting the market work for the residential, hotel, wholesale/
industrial uses, and the employment and population analysis. Ms. Beach
will devote 190 hours to the project.
Catherine Brown, an Associate, will be the second analyst assigned
to the project. Ms. Brown will have the responsibility for conducting
the market work for the office, retail, and entertainment land uses and
the land value analysis. Ms. Brown will devote 160 hours to the
assignment.
Clerical and drafting support staff will provide 40 hours of work
involved with draft and technical report production.
.
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