HomeMy WebLinkAboutM-82-0286{
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Howard V. Gary March 4, 1982
City Manager Submission of Plan of Action
for the Department of Trade
and Commerce
C. Gallogly, Director
Department of Trade and Comme )ce
Per your request, I have developed a plan of action inclusive of goals and
objectives for the Department of Trade and Commerce. This plan represents
the most ambitious effort to be engaged in by the Department in its three
year history. This plan and its implementation need to be reviewed in terms
of the adequacy of the current budget. My success in implementing this plan
will be dependent upon the hiring of qualified staff in this organization,
your personal support, the City Commissioners, the active involvement of the
City's business community and the continuation of funding for these new
initiatives. _
CG:orb
Attachment
CrTY COMMISSION
MEETING OF
A P K 1 1982
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F
PLAN OF ACTION
FOR THE
DEPARTMENT OF TRADE AND COMMERCE
Prepared by:
Department of Trade &
Commerce
March 1982
TABLE OF CONTENTS
Page
I.
INTRODUCTION
1
11.
ROLE OF THE DEPARTMENT OF TRADE AND COMMERCE
1
III.
GOALS.
2
IV.
NEW INITIATIVES
3
V.
DEPARTMENTAL FUNCTIONS AND OBJECTIVES
5
A. Economic Research Office
5
Functions
Objectives
B. International and Domestic Business Promotion Division
7
n
j
1. Miami -Dade International Trade Promotion
Corporation
7
Functions
Objectives
2. Marketing Unit
10
Functions
Objectives
C. Business Services and Financing Division
12
1. Business Services Unit
12
Functions
Objectives
2. Business Financing Unit
15
Functions
Objectives
3. Neighborhood Revitalization Unit
17
Functions
Objectives
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INTRODUCTION
II.
Miami is one of the
this hemisphere. It!
to the Caribbean and
its competitive tax
environment. It is
that exists between
commerce and business
fastest growing commercial and financial centers in
expanding economy is unique because of its proximity
Central and South America, its tri-lingual labor pool,
structure, its transportation system and its natural
also unique because of the cooperation and commitment
the private sector and government in the arena of
development.
The most important recent development in the city's history is the recog-
nition by foreign, as well as domestic companies, that Miami is the place
to do business. The Greater Miami area is home to more than 80 branches of
Fortune 500 corporations... Brickell Avenue is rapidly becoming known as
the "Wall Street of the South," the Free Zone is the largest, privately run
tone in the U.S., the Port of Miami registered $7.5 billion in exports in
1981; more Edge Act Corporations call Miami home (37) than New York (29);
43 international banking facilities have notified the Federal Reserve Bank
of their intention of opening a branch in Miami; and, finally, more and
more foreign companies are coming to Miami: Rolls Royce, Ceiba-Geigy, W.R.
Grace, L.M. Ericcson, etc.
Miami's continued growth as an international center and regional U.S.
commercial center will depend dramatically on its image, both as a place to
conduct business, as well as a place to live. Miami's image has recently
been adversely impacted by the influx of over 125,000 refugees from Cuba,
the steady entrance of Haitians, the May 1980 civil disturbance, the drug
trafficking that occurs in South Florida and the violence associated with
the recent past.
Also negatively affecting Miami's image is the deteriorated condition of
many of its urban neighborhoods. Economic development strategies are
critical to their survival. Specifically, initatives need to be mounted in
these neighborhoods to retain and expand businesses, create and preserve
jobs, prevent crime and provide businesses with a variety of services and
financial assistance. These issues must be addressed simultaneously and
proactively if we are to continue to grow economically.
ROLE OF THE DEPARTMENT OF TRADE AND COMMERCE
The Department of Trade and Commerce serves as the focal point in the City
of Miami government for promoting international and domestic trade and
foreign capital investment, for serving as an ombudsman to assist local
businesses in resolving problems related to government requirements or who
need financial assistance, and for revitalizing designated neighborhood
areas. The Department's mandate is clearly one of being "pro business" and
for fostering this type of attitude within the City of Miami government.
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III. GOALS
Specifically, the Department has three major goals:
To strengthen and increase the tax base of the City of Miami.
To generate new jobs for City residents.
To develop strategies to economically revitalize nine neighbor-
hood areas.
Currently, the City of Miami's fiscal year 1982 budget shows that $67.4
million of the total planned budget or 45% in revenue is contributed by
businesses in the following categories:
1. Franchise fees: $5.4 million
2. Property taxes: $34.1 million
3. Utility taxes: $20.7 million
4. License and permit fees: $7.8 million
5. Miscellaneous: $.4 million
This figure, when compared with data over the past five fiscal years,
reveals the following trend:
Taxes Contributed By City Of Miami Businesses
FY '78 FY '79 FY '80 FY '81 FY '82
38.0% 39.5% 40.8% 41.3% 45.0%
A review of the percentages of revenue contributed by businesses reveals
that the percentage share, althogh increasing slightly across time, has
remained for all intents and purposes constant and the change merely
reflects appreciation of commercial property, particularly in the downtown
area.
It is critical that the revenues received by the City of Miami from local
business continue to grow to assure a stable revenue base and to help
offset the increasing cost of government services. In view of the new
"Federalism" program of the current administration which is reducing
federal funding support for local government activities, increases in
revenues paid by new or expanding businesses will help to offset the cut-
backs in federal support and meet the increasing demand of citizens for
increased and improved government services.
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As of November 30, 1980, 202,300 persons were employed within the City of
Miami. The City of Miami's Planning Department has stated that approxi-
mately 2,000 - 2,700 new jobs will have to be created for City residents on
a yearly basis to keep the City's unemployment rate at 7% over the period
of 1980-85. In reviewing the goal related to job creation, it is important
to review labor force trends as impacted by the recent wave of refugee and
illegal aliens. The number of new jobs required is increased to a total of
approximately 5,400 new jobs when the refugee impact is taken into account
presuming that the adjusted City unemployment rate is held to 7%.
With respect to the third goal, it is critical that we assist the nine
neighborhood organizations currently under contract with the City of Miami
to fulfill their responsibilities for implementing economic development
strategies for their respective communities. Revitalization of these
neighborhoods will have to occur so that they become more attractive places
to live and work and become economically viable enough to attract new and
expanding businesses or businesses forced to relocate due to rapid transit
construction.
Miami's continued growth as an international trade and finance center and
regional commercial center will depend heavily on the accomplishment of the
Department's goals.
IV. NEW INITIATIVES
It is critical that the Department of Trade and Commerce be able to assure
that the goals previously identified can be accomplished. The proposed
plan of action differs from the previous activities engaged in by the
Department in the following keyways:
- Establishment of an Economic Research Office to provide infor-
mation and services targeted at Miami's business sector.
- Provision of services to businesses will be restricted to those
businesses operating within City boundries.
- Development of performance based work programs for all activities
undertaken by the Department.
- Development of a comprehensive data base on Miami businesses to
determine trends in business growth and expansion, and to
identify and resolve problems, where appropriate, experienced by
businesses as they relate to governement.
- Maintenance of an up-to-date listing of available office space by
neighborhood.
- Establishment of an International Trade Promotion Corporation to
attract major trade shows, conventions, etc. to Miami which will
generate its own resources and become self sufficient in two
years.
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Identification of manpower requirements of businesses and
assurance that area vocational schools and colleges are training
for jobs available in the business sector according to manpower
forecasts.
Development of a business retention "early warning" system to
determine which Miami firms will need special attention or
services to insure that they stay in Miami.
~ Develop a plan to identify the type of businesses to attract to
Miami.
Establishment of Business Advisory Groups to assist the City of
Miami in marketing Miami in other countries and U.S. cities on a
targeted industry basis and to provide input on recommended
changes to City programs and operations impacting business
activity in Miami.
Establishment of a Business Services Unit to serve as an ombuds-
man or trouble shooter for businesses needing help with govern-
ment "red tape."
Advertisement of a business "hot line" for Miami businesses to
tali in and receive information or assistance.
~ Provision of business advisory services and related assistance to
minority businesses.
Establishment of an "Entrepreneur Venture Capital Fund" to '
provide 10--15 loans annually to black entrepreneurs.
Assurance that the Miami Capital Development Corporation loans
out all of the $4.8 million in the Revolving Loan Fund by October
1, 1982. This will be dependent upon the continued cooperation
of private lending institutions who must share responsibility for
the financing of fixed asset loans.
Management of a variety of revenue providing funds, such as the
Community Development Block Grant Fund, to assure that the Depart-
ment generates revenues to become self sufficient in three years,
dependent upon the continued availability of federal funding.
Development of a three (3) year work program for the nine
neighborhood economic development organizations designed to
accomplish specific economic revitalization projects and to make
them self sufficient within three (3) years.
Development of merchant associations in each neighborhood as the
driving force behind business -related projects.
Preparation of an annual report on the accomplishment of the
Department's goals and objectives for review by the City Manager
and the Commission.
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V. DEPARTMENTAL FUNCTIONS AND OBJECTIVES
A description of the major functions and objectives to be accomplished by
the Department is provided.
A. -ECONOMIC RESEARCH OFFICE
Functions
With the establishment of this office, the Department will, for the
first time, possess a substantive capacity to help businesses wishing
to relocate to Miami or those already here. This aid will come in the
preparation of in-depth economic reports on key industries which will
be continously updated, in the form of tailored feasibility studies on
specific business projects/ideas that need more detailed information,
the production of collateral material such as brochures, annual
reports on the state of the economy, (i.e. Miami Business Report
1981), pamphlets, etc. and the placement of monthly business related
articles in the Latin American and U.S. press and trade journals.
These articles will feature different sectors of our business economy.
The major thrust of the Economic Research Office will be the provision
of information about Miami's business outlook and opportunities. This
function has not currently been supplied by any private or public body
in a comprehensive format. Miami's businesses can obtain vast amounts
of information regarding federal or state economic perspectives, but
relatively little information exists on substantive issues regarding
Miami's business outlook -- this is what the Miami Business Report
1981 and other similar studies have come to represent to the Miami
businesses: a format of statistical information that enables them to
make clearer business decisions regarding Miami; whether to expand,
relocate, or enter new fields. This is of critical concern to one of
the most vital constituencies, the "Miami Businessman or Woman," the
person who is not currently receiving any direct information or
assistance from the government to which he/she pays taxes.
Miami is made up of predominantly small businesses. The City of Coral
Gables may lay clam to some Latin American Fortune 500 branch
offices; the County may make a claim to having several giants in
manufacturing; (Racal Milgo, Cordis-Dow, Dow Chemical,
etc.) but, the City of Miami, outside the financial intermediary
sector, is basically a significant, thriving community of small
businesses. The time has come to establish a "quid pro quo" relation-
ship -- recognition of their status, a►id provision of what they (and
other potential business tax payers) need; an excellent flow of infor-
mation from which the small businessperson (who cannot afford to keep
an economic analysis unit, but collectively are a significant force)
can make informed decisions.
Contrasting past and prospective Department policy, a tighter geo-
graphic focus is required to assure that only City of Miami businesses
benefit from the Department's activities, and not businesses in
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Miami's surrounding environs. Historic policy has been Greater -Miami
oriented (e.g. Fortune 500 branches in Coral Gables). First priority
'in the future must go to the City -- non -Miami firms should not be
assisted unless the linkage to the City is direct (e.g. an out -of -
.Miami firm with warehouses or freight forwarding facilities in the
City).
Hitherto, there was very little targeting of Miami -based industries
through commercial surveys.
Objective #1
To serve as an information clearinghouse on Miami's industrial and
commercial economy for businesses in Miami and others studying the
feasibility of relocating to the area.
Major Activities
a. Prepare reports on a scheduled basis which provide a professional
and analytical assessment of Miami's current economic structure.
The reports are as follows:
1. An Annual Report entitled "Miami Business Report."
2. Monthly economic reports which feature a key local industry
or group of industries.
b. Prepare feasibility studies in response to specific requests from
Trade and Commerce clients, Miami Capital clients and other
corporate clients served by the Department to include studies on
site location, financing, cost analysis, licensing procedures,
etc.
C. Develop a client profile index representing a comprehensive
overview of the needs and demands of the small businesses in
Miami.
d. Develop research and key position papers on a variety of selected
issues for presentation at symposia, conferences and seminars
attended by representatives of the City of Miami businesses as
well as businesses outside the local area.
e. Compile comprehensive and concise demographic data on all City of
Miami businesses through surveys and data acquisition.
f. Prepare maps depicting Miami businesses by type, location, areas,
SIC code, employment density, income/tax density, etc.
g. Develop an in-depth analysis of our employment/unemployment base
to determine:
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a) skills by industry usage (potential)
b) skills employment programs must teach
c) skills by commercial usage (potential)
d) Classification of immigrants, and residents by skills, and
by lack of skills
h. Maintain a listing of office and retail space developed or under
development, to include price ranges, types of use, and dates of
availability.
i. Research current legislation regarding tax abatements, tax incen-
tives, capital credits, labor credits and other programs to
develop a package of incentives for use in marketing Miami.
j. Secure private sector funding for the publishing of all economic
reports.
k. Utilize survey data and other information to identify businesses
that may need special services to assure that they don't leave
Miami.
B. INTERNATIONAL AND DOMESTIC BUSINESS PROMOTION DIVISION
1. Miami -Dade International Trade Promotion Corporation
The International and Domestic Business Promotion Division will
be responsible for marketing Miami to both international and
domestic businesses to assure that there is a continuing increase
in the Miami tax base. This division will establish a non-profit
trade promotion corporation to plan and coordinate trade shows on
behalf of the City of Miami and will operate a marketing unit to
promote business interest in moving to Miami.
Functions
In recent years, the Miami -Dade County economy has seen a tremen-
dous increase in employment connected with international business
and tourism. For example, in a study prepared by Florida Inter-
national University's Bureau of Business Research, the direct and
indirect employment attributed to this sector rose from 93,391 in
1974, to 210,105 in 1980, or an increase of almost 125%. In the
same period, the percentage of Dade County's work force in the
international sector rose from 15. 2% in 1974 to 28. 7% in 1980.
This rapid economic growth has served to diversify the W ami-Dade
economy and has been a major contributing factor in the Downtown
Miami office building boom.
Despite this rapid increase in economic growth, significant
untapped opportunities remain, including:
- Increasing trade and commerce with major Latin American
giants such as Brazil and Mexico.
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- More trade with the Caribbean countries in response to
the increasing U. S. Federal support for private sector
economic activities in the Caribbean.
Significant infusion of funds from Canada and Europe
that is essentially "flight capital" looking for more
stable markets.
Establishing Miami as a major location for trade with
the emerging African countries both in terms of direct
economic activities with American firms and as a
connecting point for Latin American/African trade.
Both the City of Miami and Dade County have, in the past, created
quasi -public organizations to carry out public purposes, e.g.
Downtown Development Authority, Miami Capital Development,
Incorporated, Dade County Sports Authority and the Dade County
Revitalization Board. It is the intention of the City of Miami
to establish, in joint venture with Metropolitan Dade County and
the State of Florida. a quasi -public corporation, the Miami -Dade
International Trade Promotion Corporation. The objectives of
this corporation would be to:
- Promote Miami as a center of international trade,
commerce and finance.
- Increase the volume of business transactions conducted
in Miami, Dade County and South Florida, in the fields
of international trade, commerce and finance.
- Promote increased employment and taxes as a result of
this economic activity.
The corporation would develop and promote international promo-
tional events such as trade shows, trade missions, conferences
and seminars to augment the international image of Miami and
expand the Miami -Dade economic base. The corporation would be a
catalyst for expanding the number of promotional events that
would take place in Miami, particularly targeted to manufacturing
growth industries identified in our Miami -Dade economic base
study including:
- apparel
- leather products
- food and kindred products
- rubber and plastics
- electronic equipment
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instruments and related products
household furniture and furnishings
printing and pulishing
The Department will work with other government officals to estab-
lish the Miami -Dade International Trade Promotion Corporation.
One of the unique aspects of this corporation is that this would
be the first attempt by any government agency to develop a
coherent intermediate and long range plan for attracting shows to
Miami. The division will assure that proper linkages are estab-
lished betweeen Miami's trade shows and the planned business
growth in our commercial/services/industrial base. A hands-on
posture is required if we are to successfully promote and show-
case Miami's potential. Concomitant with our new sophistication
in international trade and finance will also come a need for
symposia, conferences, and conventions that can quickly and
effectively deal with these themes. Miami must insure that its
professionals have access to these affairs to increase their
productivity and our city's growth.
Objective #1
To establish a Miami -Dade International Trade Promotion Corpor-
ation to attract successful major trade shows, symposia,
seminars, conferences and conventions to the area.
Major Activities
a. Attract funding for a Miami -Dade International Trade Pro-
motion Corporation, a not -for -profit corporation to be under
contract to the City of Miami.
b. Implement the structure, staffing and the operating budget
for the Corporation.
C. Establish a 5 year strategic plan to attract major trade,
professional and technical shows to Miami or establish a
satellite show in Miami.
d. Negotiate and provide the ground -work for ensuring that
specific targeted industries bring shows to the area (i.e.
Electronics, Health Care, International Trade, tight
Manufacturing, Insurance and Banking Industry, Textile and
Garment Industry, etc.).
e. Provide assessment and evaluation reports on the corpor-
ation's activities to determine their impact on increasing
trade and commerce development.
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Objective *2
To make the Miami -Dade International Trade Promotion Corporation
self sufficient by the end of the second year of operation.
Major Activities
a. Develop a fee structure for services provided to various
trade shows and associations.
Objective #3
To work closely with other city, county, state, federal and
private agencies involved in promoting Miami.
Major Activities
a. Attend all pertinent meetings.
b. Become members of all pertinent trade and business organ-
izations.
C. Utilize brochures, pamphlets and other materials generated
by other organizations to promote the area to avoid dupli-
cation and save costs.
2. Marketing Unit
Functions
Miami has recently achieved an international status as an
"entrepot" city, a go-between, or marketplace for American goods
and services in Latin America and Europe, as well as European and
Japanese products imported into the U.S. and Latin America.
In addition to being viewed as the newest, most dynamic inter-
national business metropolis in the U.S., Miami is perceived more
and more as a regional distribution center for the state and also
as having a large tri -1 i ngual labor pool.
Miami's growth as an international and national distribution
center will depend heavily on its image. It is critical that a
vari-ty of steps be taken to change Miami's image in order to
ensure that it continues to be viewed as an attractive place for
business relocation and expansion.
One of the most important new initiatives is the establishment of
Business Advisory Groups which will be utilized to promote Miami
in domestic and international business spheres. No one can argue
that the best promoter of "doing business in Miami" is a success-
ful business person. Business Advisory Groups will be estab-
lished on a targeted industry basis.
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Objective #1
To promote foreign trade and investment in Miami and concurrently
expand domestic trade and investment in the Miami area.
Major Activities
a. Utilize the Business Advisory Groups and various Trade
Associations to assist City of Miami officials in marketing
Miami in other countries and U.S. cities on a targeted
industry basis.
b. Send Miami business groups on missions to targeted countries
to provide first-hand information on Miami's economy.
C. Send Miami business groups to targeted U.S. cities and
businesses to provide first-hand information on Miami's
economy.
d. Utilize specific business groups to advise City of Miami
officials on the establishment of business districts tar-
geted to specific industries, i.e. furniture manufacturing
district, garment center district, and electronic component
district.
e. Conduct seminars for top executives on "What Miami Has To
Offer."
f. Provide a variety of business support services to executives
who are in Miami considering business relocation, to include
the use of our offices, clerical support and the production
of special reports.
Objective #2
'fo develop an international and domestic media campaign to pro-
mote the advantages of doing business in Miami and the amenities
of life in South Florida to be funded on a cooperative basis with
the private sector and other governmental agencies.
Major Activities
a. Prepare and submit economic and business related articles
for puaiication in foreign (i.e., Latin American, European)
and national newspapers and trade journals.
b. Produce brochures and pamphlets for distribution by the
various Miami business groups which are sent abroad and
across the country to promote Miami.
C. Develop materials informing businesses about available tax
and other financial incentives.
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d. Follow-up on mail -outs and targeted ads to measure their
effectiveness.
Objective #3
Respond and follow-up on all inquiries from foreign and U.S.
investors wanting to relocate to Miami.
Major Activities
a. Identify appropriate staff to respond to inquiries and
provide requested information and/or material.
b. Maintain log of calls and inquiries for statistical and
analytical review.
C. Assist businesses making inquiries by referring them to
appropriate officials, and agencies and private sector
businesses (with appropriate discretion).
C. Business Services and Financing Division
The Business Services and Financing Division will respond to the needs
of local businesses. The functions and the objectives of the division
are as follows.
1. Business Services Unit
Functions
Some areas of Miami have continually experienced an economic
decline or are at a standstill which has led to businesses
moving out of Miami and many of those who stayed have failed to
expand and eventually are going out of business. This type of
activity hurts the City of Miami in terms of lost revenues and
decreases the tax base, therefore, this process must be reversed
at all costs.
The Business Services Unit will work with both the commercial and
industrial businesses in the area to insure that this exodus is
halted and assist them to expand their businesses in Miami, where
feasible. The new structure will allow for establishment of an
early warning system to retain and preserve our commercial/
industrial base by working closely with our established
businesses and having a team capable of giving them first
priority.
This division will include a business "hot line" for any busi-
ness, large or small, to call in and receive immediate and
prompt attention. One of the most important roles this division
will play is that of "OMBUDSMAN," or trouble shooter,
functioning as a one step business assistance office that can and
will go that extra mile to assure that local business people have
government red tape cut or to facilitate any process for the
smooth operation of their businesses.
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Through the formation of Business Advisory Groups for the key
industries within the City of Miami, the communications network
between businesses and within industries will be increased and
expanded. The groups will review the Department's work plan and
performance and will advise the City of Miami on needed changes
in the arena of governmental services.
The unit will also have responsibility for providing or arranging
for the provision of technical assistance to minority businesses.
Workshops, seminars, conferences, and other in-depth teaching
forums will be provided whereby the small business community
can increase the level of their technical/managerial skills and
capacities.
Objective #1
To preserve and retain businesses in the Miami area.
Major Activities
a. Identify needs and concerns of established firms through
questionnaires and surveys and from referrals from business
associations.
b. Resolve problems identified by established firms through
referrals or direct intervention.
C. Identify firms prior to flight and intervene in their
decision to leave.
Objective #2
To serve as an "OMBUDSMAN" serving as a one -stop service agency
that will assist local businesses to cut through government "red
tape" and facilitate any process aiding their smooth operation.
Major Activities
a. Establish a "hot line" for businesses to call in their
problems.
b. Respond to phone inquiries from out-of-town businesses
expressing interest in buying items for export or import and
follow-up as appropriate.
C. Serve as a liaison between established business and govern-
ment officials and agencies in resolving business related
problems.
d. Inform local businesses of opportunities in domestic and
international trade.
e. Recommend changes in government policies and procedures when
appropriate.
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� Objective #3
To expand the network of communications within and between the
community's key industries"
Major Activities
a. Utilize the City's Business Advisory Council and appoint
Business Advisory Groups to advise government officials
about the needs and concerns of established businesses in
order to lessen or overcome unnecessary regulatory barriers.
b. Within the Business Advisory Council, establish four (4)
Business Advisory Groups made up of representatives from the
medical and health care industry, the garment and design
industry, the international trade industry, and light
manufacturing industries.
C. Convene ad -hoc groups of targeted industry leaders to pro-
vide input to the Business Advisory Council on specific
problems or issues impacting on that industry.
d. Participate in meetings, seminars, or conferences. sponsored
by various local industry groups.
e. Utilize the Business Advisory Council to review the Depart-
ment's annual work plan and evaluate the Department's effec-
tiveness.
Objective #4
Assist businesses forced to relocate because of rapid transit
development to relocate within the City of Miami.
Major Activities
a. Work with OTA and the City to identify fn advance the
businesses forced to move because of line or station
construction.
b. Develop an individual plan of action to include alternate
site locations for the effected businesses to consider.
Objective #5
To increase the level of technical and management expertise and
knowledge of minority businesses.
Major Activities
a. Conduct teaching seminars for minority businesses on a
variety of technical and management topics.
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• b. Provide or arrange for the provision of intensive technical
assistance workshops on site at the businesses, when appro-
pri ate.
2. Business Financing Unit
Functions
This unit has the responsibility for providing government financ-
ing to eligible businesses. This is managed through serving as
the contract manager for the City's contract with Miami Capital
Development, Inc. (MCDI), for overseeing the "Entrepreneur
Venture Capital" program and for managing the other government
based financing programs such as the Community Development Block
Grant float program.
As the MCDI contract manager, the major priority will be to
monitor its lending programs, in particular the Revolving Loan
Fund, to assure that the entire $4.8 is loaned out and that as
repayments are submitted, additional loans are being approved on
a timely basis. Also it will be critical to monitor and assess
the technical assistance provided to businesses receiving loans
to reduce the 45% national loan failure rate common to Revolving
Loan Funds.
In addition, priorities will be placed on improving the image of
MCDI in the community, and among financial lending institutions
as well as streamlining the loan application process and devel-
oping information for prospective loan clients which clearly
delineate the steps involved in the loan process and the time -
frames associated with it.
An "Entrepreneur Venture Capital" fund in the amount of $150,000
will be started by the Department between MCDI and Metro's loan
agency, Economic Development Corporation, with each setting aside
$75,000 from their Community Development Block Grant budgets.
The recipients of this fund are to be Black businesses who have
"a good idea," but lack the capital to implement the concept.
They will be people that commercial banks consider marginal, and,
consequently, cannot obtain loans either because they currently
operate on too narrow of a margin for the bank to assume the
downside risk, or because the dollar volume does not justify the
"paperwork" of a private lender.
f The loans will be provided to entrepreneurs who want the money to
generate sales, not to repay loans; who have a proven track
record of personal struggle and stamina in business affairs;
j those who are not asking for a loan to elevate their level of
1 comfort, but to increase the marketability of their company.
This program shall strengthen the infrastructure of the minority
business community and is thus targeted to entrepreneurs requir-
ing $15,000 or less of capital to implement their concept.
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The unit's last role will be that of generating sufficient rev-
enue within the next three years to make the Department self
• sufficient by pursuing vehicles such as the Float Program. The
concept is simple. The money held in reserve in Jacksonville for
Miami's C.D. projects will be used to replace existing high
interest 1 year construction loans at a lower interest rate. The
interest income generated to the City of Miami from these loans
will be used to fund the Departments of Trade and Commerce and
Community Development.
Objective #1
Monitor the contract with Miami Capital Development, and
recommend appropriate changes.
Major Activities
a. Assure that the $4.8 in the Revolving Loan Fund is disbursed
by October 1, 1982, albeit in a fiscally prudent manner.
This will be dependent upon the continued cooperation of
private lending institutions who must share responsibility
for the financing of fixed assets loans.
b. Monitor the loan repayment schedule to insure compliance and
pro -actively identify problems to reduce the loan failure
rate.
C. Monitor the technical assistance provided to loan applicants
and to approved loan businesses.
d. Improve the image of MCOI in the black community and among
financial institutions.
e. Review the loan process and timeframes and recommend changes
where appropriate.
f. Develop informational materials delineating the loan
process, requirements and timeframes for distribution to
prospective loan applicants.
g. Monitor all details of the contract.
Objective #2
To increase the amount of venture capital available for Black
minority businesses in Miami.
Major Activities
a. Establish an "Entrepreneur Venture Capital" program in
partnership with Metro's Economic Development Corporation
and Miami Capital Development, Inc.
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v .
j y b. Set aside $75,000 from the Community Development Block Grant
Fund to fund the program.
C. Identify and make loans not to exceed $15,000 per loan to
ten (10) to fifteen (15) businesses during a twelve month
period.
Objective #3
To identify a varity of revenue sources which would assist the
Department to become a self-sufficient unit within the next three
(3) years by utilizing the Community Development (C.D.) float,
UDAG grants and funds generated by other programs, dependent upon
the availability of continued federal funding.
Major Activities
a. Research the amount and creative ways to utilize the C.D.
float and develop UDGA applications.
b. Amend the C.D. plan to include in the management of this
program the use of the revenue by the Departments of Trade
and Commerce and Community Development.
C. Hire a qualified commercial loan officer to administer the
program.
3. Neighborhood Business Revitalization Unit
Functions
A major priority of the Department is the growth and development
of the neighborhoods comprising Miami. The needs of our resi-
dents for steady jobs with defined career paths and their needs
for services provided by local businesses must be addressed.
Neighborhoods must be revitalized in such a way that they will be
a more pleasant and safe place in which to live and at the same
time be conducive to conducting business - the types of
businesses that each neighborhood community demands and has the
human and financial structures to support.
At present, the City of Miami contracts with nine neighborhood
based organizations for the accomplishment of specific economic
development initiatives. The neighborhood organizations were
not, as a system, properly utilized in the past to meet the
economic revitalization needs of their communities. Nor have
they been held to fulfilling the requirements of their contracts.
The unit will define with the City's Planning and Community
Development Departments the specific projects for each community
and define the roles each neighborhood organization should play
alongside with Merchants Associations, C.D. Advisory Boards, and
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t
local Chambers of Commerce. A critical initiative will be to
make the organizations self-sufficient within the next three
years.
The Department of Trade and Commerce will now begin to place
emphasis on the development of the human resources from within
the community, with the end result being that the citizens of the
community will be capable of supplying the businesses in their
neighborhood with the skills and expertise these businesses
demand. This has a dual purpose: a) creation of jobs and skills
in the community, thereby reducing the unemployment rate and
business flight; and b) the revitalization of the community by
strengthening its economic base.
Objective #1
Establish a synergistic three year work plan for the neighborhood
organizations under contract to the City of Miami.
a. Define specific needs of each community to include business,
community and governmental perspectives.
b. Develop management by objective performance plans describ-
ing programmatic objectives, work plans and deadlines for
accomplishing each specific economic development initiative.
C. Develop plan for self-sufficiency within the three year
period.
Objective #2
Develop and monitor the implementation of 1 year contract with
each organization for the period of June 17, 1982 through June
16, 1983.
a. Issue contract instructions and specifications to include:
- Survey of businesses to develop a socio-economic and
employment information data base on each neighborhood.
- Interpret survey findings and make recommendations
regarding industry mix and employment needs of
businesses in each neighborhood.
- Development of community crime prevention programs,
where appropriate.
- Establishment of at least one merchant association in
each neighborhood.
- Process for referring businesses to MCDI.
- Identification of projects to be completed during year.
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"82-28g
- Identification of a process to raise revenue to replace
the withdrawal of 25% government funding in January
1983.
b. Monitor contract compliance on a monthly basis and provide
• technical assistance as required.
C. Provide assistance to facilitate the accomplishment of
contract objectives with each neighborhood organization.
(Trade and Commerce staff).
d. Refer businesses requesting assistance to meetings with the
appropriate officials and agencies.
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