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RESOLUTION NO.
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A RESOLUTION APPROVING THE ATTACHED SUMriARy
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O` THE PROPOSED ECONOMIC ADJUSTMENT PLAN
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PREPARED BY JANUS ASSOCIATES AND ENDORSING �'��x�;4
THE APPLICATION AND ITS SUBMISSION TO THE
ECONOMIC DEVELOPMENT ADMINISTRATION FOR° r
TITLE IBC FUNDS TO CARRY OUT SAID PLAN 3 `
WHtRtA5; the City of Miami and Metropolitan bade Couiit+t
have received $100,000 from the Economic Development Administrd-
tion to prepare an economic adjustment plan for the civil distuYb�
ance areas; and
WHEREAS,
has prepared
County; and
Cny COMMISSION
MEETING OF
JUN?, 5 1J31
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NS 6 INTCA1 OPItICE MtMORAW)UM
TO Howard V. Gary
City Manager
FROM Jim Reid
Acting Assistant City Manager
DATE June 17, 1981 FILE
SUBJECT Economic Adjustment Plan
June 25, 1981 City Commission Meeting
REFERENCES
ENCLOSURES
On May 19, 1981 the City Commission received a copy of the economic adjustment
plan for rebuilding the civil disturbance areas prepared by Janus Associates.
Subsequent to that date, on June 3, 1981, a public meeting was held regarding
a proposed application for $5 million in funding from the Economic Adjustment
Administration to carry out the economic adjustment plan.
The plan suggests that a number of major projects be funded with a $5 million
EDA grant sought jointly by the City and the County. These include:
A possible African and/or Caribbean Trade Fair.
- Entrepreneurial training to aid Black business persons.
- Follow-on technical assistance for the creation of: youth
enterprises, an enterprise zone and a Black financial insti-
tution such as a bank or savings and loan.
- Assisting the development of an urban market on the Pantry
Pride site, in the Model City area.
- Assisting the development of a hotel adjacent to the Overtown
transit station with facilities for community and cultural
activities.
- Assisting the development of the Ace Theatre/Market project
in Coconut Grove.
- Assisting the development of other commercial revitalization
projects in the Edison/Little River area along N. W. 2nd Avenue
and on 36th Street in Allapattah.
- Exploring the feasibility of an industrial park/free trade zone
on the FEC site in N. E. Miami.
- Creation of a Small Business Investment Corporation and provision
of additional loan guarantee authority to Miami Capital Development
Corporation.
Attached for your information is a copy of that summary. It is requested that the
City Lommission approve the economic adjustment plan and endorse the joint City/County
application for $5 million in Title IX funding.
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—SUMMARY
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pR(aR'QSiED APPLICATION_
FOR EcOlp'NoON11C ADJUSTMENT
IMPLEi1o1�i�TATION
FUNDING
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CITY OF MIAMI AND DADE COUNTY
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The May 1'-19, 1980 Civil Disturbance which occurred in the
City of Miami and other parts of Dade County caused exten=
give economic loss. Overall 246 properties were.damaged.,
of which 83 were completely destroyed. Total property damage
Was estimated in excess of $70,000,000 and it was reported
that 835 jobs were affected as a result of the disturbance.
The Civil Disturbance had a severe impact upon the already
poor economic conditions within the Black community.
The US Department of Commerce, Economic Development Adminis-
tration, jointly awarded the City of Miami and Dade County
funding to prepare an Economic Adjustment Plan for the areas
impacted by the civil disturbance and JANUS Associates of
Washington, D.C. was selected as the consultant to prepare
this document. Within their report, which is highlighted
in this summary, is an extensive listing of recommended
public and private actions aimed at ameliorating the dete-
riorating economic conditions within the Black community.
Included for immediate action is a recommendation that the
City and Cou.:ty seek $5 million from the Sudden and Severe
Economic Dislocation Program (Title IX) of the U.S. Depart-
ment of Commerce Economic Adjustment Administration to im-
plement a number of key economic revitalization projects.
The intent of this public hearing is to elicit the community's
comments concerning this proposed application. Included within
this summary is a brief overview of the JANUS report and a
listing of proposed City of Miami and Dade County projects to
be undertaken with this grant. It should be noted that this
application only addresses certain needs of the community and
should be reviewed as part of an Overall Economic Adjustment
Strategy which entails major public and private financial
committments. This application supports initiatives already
underway.
II. ECONOMIC ADJUSTMENT PLAN SUMMARY OF FINDINGS
Economic and Demographic. Despite a mild "mini -recession" in
recent months, Dade County has experienced 20 years of strong _-
growth in population, households, household income, employment,
real estate investment and international trade, commerce and =_
finance. However, to a large extent, the Black community of -
Miami -Dade has not been a part of this general prosperity and - =_
growth. As a result, there are severe disparities between the
economic condition of the population of the Civil Disturbance
Areas and that of the population of the SMSA. Unemployment
among Blacks is at least 1-1/2 times more than the unemployment
.in the total workforce in the County. Black youth unemployment
has reached catastrophic levels. Black business development lags
far behind, not only that of the white and Latin communities of
Dade, but, that of Blacks in most major cities elsewhere in the
U.S. These gross disparities -- and their related symptoms of
high crime and youth delinquency and racial tension --represent
a major threat to Miami's continued growth and development as a
center of international trade, commerce and tourism. Consequently,
the Ponnomic future of the City and County, in a real sense, _
depends upon the degree of success attained in improving the
ocoromic condition of the Black business and residential community.
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NORTH COUNTY
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CIVIL DISTURBAN
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tommun_i_ty,Assesment. Despite its depressed economic condition
n"d the lack of strong, well -supported financial and develop-
ment institutions, the Black community of Miami -Dade has sigh=
ificant strengths upon which to build. Among these are sev-
eral economic assistance organizations,a number of community
and service organizations which, though generally inadequately
funded and hence without strong economic development capability,
do have capable leadership, records of accomplishment in special-
ized areas, and which have earned the community's respect. In
addition, the City and County have created a number of new deve-
lopment instruments which, if adequately supported by the public
and private sectors, have potential for becoming catalysts of
increased job and enterprise development.
Barriers and Opportunties
Job Development. Among the chief barriers to job development
are the low educational levels in many parts of the Black
community; lack of relevant labor market skills; lack, particu-
larly youth, of employability skills (appearance, behavioral
and attitudinal); imperfecticns in the information flow concern-
ing job market opportunities and trends; lack of adequate
after -placement support services; transportation costs; and
failure of public and private programs to employ sufficient
approaches that draw on local neighborhood groups and leadership
as vehicles for reaching target groups, particularly youth.
On the other hand, the existence in the Miami -Dade labor market
of a large number of hard -to -fill job classifications offers
new job development opportunities for the Black unemployed and
underemployed. The continued growth of the office -related and
other employment sectors presents similar opportunities.
Business Development and Community Revitalization. Major barriers
to business development include lack of credit and capital instru-
ments (particularly sources of equity); inadequate information
concerning market opportunities and their assessment, business
planning, standards of financial institutions, international
trade, etc.; too little contact with the white and Latin business
communities; and a lack of successful business role models.
As with job development, major opportunities exist for Black
business development in such regional growth sectors as inter-
national trade, office -related services, and construction. Other
opportunities for business development and community revitalization
arise as a result of unmet needs within the Black community in
areas such as convenience goods and services, finance and housing
(new and rehabilitated). Several public initiatives - notably
construction of the Rapid Trai,-it System - also have potential
for enterprise development and commercial revitalization.
Strategies for Development
A primary strategy for both job and enterprise development must
be to link the Black labor force and Black businesses more in-
tegrally to the economic growth sectors of the region, particu-
14rly the services sector and international trade, commerce,
finance and tourism. A second strategy must be to develon
successful businesses which will create job opportunities by
providing the Black community with goods and services it
presently lacks. Finally, affirmative action and set -aside
programs must be effectively utilized to maximize opportunities
in the public sector.
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�edmendat ions
The
report's recomendations are designed to acdompligh
four
objectives. These objectives and related redwnenda-
tiont
are briefly summarized below:
Objective 1. Achieve cooperation of all sectors to make
economic parity for Blacks a top priority for
the Eighties.
Recommended Action:
Revitalization Board assume central coordinating rolP,,
Objective 2. Reduce Black adult and youth unemploy-
ment by 1990 to levels no higher than those of the
overall County population.
Recommended Actions:
Interagency task force to remove institutional, regUlfttbry
and other barriers to public employment.
Enlist private sector employers to take similar action.
Establish Youth Employment Enterprises in such areas
as home repair, perimeter parking, neighborhood security,
information surveys and messenger service.
Implementation of Affirmative Action Plans for City and
County Capital Improvement Plans.
Consistently enforce affirmative action laws and policies
for all covered employment.
Replicate successful local manpower and employment programs.
Counselor orientation to inform them of basic skill job
openings and requirements for them.
Assign CETA responsibility for recruiting vocational
education enrollees.
Encourage cooperation and joint projects among skills
training, placement, and job counseling agencies, and
with employers.
Develop job -needs index as guide to targeting skills
training to job classifications most in demand.
Pilot programs to increase student retention rates.
Special programs to encourage Black students to gain
Spanish and other foreign language drof ic iency.
Utilize schools, churches and neighborhood facilities
and leadership to teach employability skills.
Implement successful neighborhood -based youth employment
programs from other cities.
Locate job placement services in target areas.
Pilot programs employing community residents to improve'.
information flow to and from public agencies.
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employer van pools and other measures,
More low-cost, convenient day-care centers in target
ftreft§ .
Obj,gqtive 3. Expand business opportunities for Blacks in regional
growth sectors.
- Engage The Entrepreneurship.Institute to conduct an entre-
reneurial workshop to match Black entrepreneurs with domestic
and international markets and resources. -
- African -Caribbean trade missions for Black business -persons.
- Increase Black membership in mainstream business organiza-
tions and corporate boards of directors.
Joint ventures with Latin and White businesses.
Industrial Park/Free Trade Zone/Enterprise Zone.
. . .. .. . ..
State, County and City minority set -aside programs,
Cable and low -power TV franchise for Blacks.
Increase contracting Qpportunities for Black firms to
operate public facilities, concessions and services.
Major waterfront development project stressing City's
multicultural character with maximum Black business
participation.
...Objective 4. Expanded opportunities through provision of services
and goods in the Black community.
- Increased local support for Black business assistance
and development organizations.
- Assist social service and skills training organizations
to expand into such related economic development areas
as Youth Employment Enterprise.
Support such neighborhood -based entrepreneurial initiatives
as Shell City Flea Market and Ace Theater project.
Develop Urban Market or convenience retail facility on
Pantry Pride site. (See separate JANUS/HSGA study.)
Implement plan for equity participation by Black property
owners in Overtown development.
Fund amenities for New Washington Heights hotel project,
Support Northside Shopping Center management efforts to
retain major tenant and improve Center traffic through
community activities and events.
(See separate JANUS/HSGA
study. )
- Revolving loan fund for commercial revitalization projects,
- Increase CTD bond guaranty fund.
W Insurance agency for bonding, casualty and liability
Insurance.
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Attract foundation and other outside resourc ,
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Establish or acquire a $lack -owned bank.
Organize private investment groups.
Investments by successful Blacks in young and now
businesses.
Campaign to correct negative image of Mack community,
Adherence to design and esthetic standards in neighbor-
hood commercial areas.
Maintain cleanliness, appearance of neighborhood commer-
cial areas.
Tying all the listed recommendations together are two central
themes or approaches. The first of these approaches is to
expand job and business opportunities for Blacks in the region's
economic growth sectors, particularly international trade and
commerce. The second approach is the expansion of job, entre-
preneurial and community development opportunities for Blacks
within the Black community in areas such as the provision (J
needed goods and services and the development of Youth Employ-
ment Enterprises. The overall goal of these two approaches
is to eliminate present glaring economic disparities by enabling '
Blacks, during the decade of the Eighties, to become positive
contributors to the continued economic life and growth of the
Miami SNISA. Only by including Blacks as full participants in
its growth will Miami achieve its full potential of becoming
a multi -cultural center of international trade, tourism and
finance.
L
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I t, PROPOSED ALLOCATION Off' FDA TIM IX
Project
1. Local Business Trade Fair
African-Carribean Trade Fair
To further assist in meeting the need
of Black entrepreneurs, funds will be
allocated to develop a local business
trade fair for Black busnesses. The
fair will host local Black businesses
so they gain exposure to potential
major purchases in Dade County as
well as to provide the opportunity to
the community at large to become
familiar with the locally owned operat-
ed Black businesses. The fair will pro-
vide the Black entreneneurs narticipa-
tina with an opnortunity to expand their
market and sales.
The African-Carribean Trade Fair will
expand onportunities for Black entrenen-
eurs in the area of international trade.
The Fair will be held in 19S2.
2. Follow-up Technical Assistance
(Feasibility Studies & Design
Work)
A. Youth Employment Enterprise
Youth Employment Enterprise will be es -
City lCouhty
$125 000 I $125,000
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$ 75 , 0001 $ 75 , 000
tablished
in areas
such as home repair,
downtown,
perimeter
parking, neighbor-
hood security, information
surveys and
messenger
service.
The programs will
„N
provide jobs for Black youths and help
to decrease the black youth unemploy-
ment level. w-
B. Development of.Capital Vehiclesgg
Newfinancing techniques N1i11 be deve-
loned to meet canital and credit needs
of black enternrises not able to obtain
conventional financing. F.ecommendation.
include establishment of a revolving*
loan fund. A venture canital company
(SBIC), a P.lack-owned commercial bank
a bond guarantee fund for Black cons-
turction contractors.'
U.R
C. Industrial Park (Free Trade Zone/
Fnterprise one
Development of an Industrial Park 2-1
facility within the civil distur-
bance areas will offer opportunities
for Black business creation/expansion
And increase employment opportunities
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City County
for area residents. Three possible
sites for such a facility are present-
ly under consideration. A portion of
the industrial park will be designated
a Free Trade Zone. Designation of the
site as an Enterprise Zone is also being
investigated.
3. The Entreprenuership Institute &
Other Entreprenuership Training
51
�,000 �• $75,000
Workshops will be conducted by the En-
trepreneurship Institute to establish
linkages and sources of market onnortun-f.
the Carribean
ities in South Florida,
markets. The work-
and other overseas
shops and training seminars will be
sponsored by local governments and
businesses which will leverage the
funds with private & public dollars.
Capitalization of Small Business
00 0001 $400,000
Investment Company (SIIIC)
To further assist in meeting the need
funds
for equity and subordinated debt,
%,ill be allocated to SBIC or venture
capital company for minorities with an
develop-
y
emphasis on Black enterprise
by
E'"'
This entity will be managed
men t .f
Economic Development Corporation
"
the
of Dade County and riiami Capital Inc.
15. Revolving Loan Fund
The project will allocate public funds
to create a revolving loan fund to form
a guaranty pool to reduce risks to cre-
ditors extending credit to minorities
with an emphasis to Black businesses.
In addition, part of the funds would
be used in direct lending to provide
medium and long-term loans normally
not available from banks.
6. Augmentation of Bond Guaranty Fund
Increase the funds available to Con-
tractors Training and Development,
Inc. to gurantee performance bond-
ing for minority contractors in the
rapid transit develonment, public
housing rehabilitation, downtown
office building construction and
general construction Projects.
7. Rapid Transit: Related project
D oVo lopment
Develop and implement a plan for
nluxirnizing equity participation
by Black property -owners in the
Rapid Transit development. This
program will assist with various
�.�500, 000
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P fir
J" All
10.000
$100,000
�EE-�Yet�'��;5'+ �,� a
City I County
aspects of development financing,
e.P., injection of equity into
projects, interest write -down,
surrogate collateral, etc. This
program will be directed towards
the development in and around the
rapid transit stations in the Model
City corridor. _
i
8. Industrial Park (Business Develop-
ment and Incentive Funds) 64
Industrial Park. In its simplest
form, —an--in —dust rial park is a gen-
erally self-contained site zoned
for and primarily dedicated to
T
Land within such
industrial use .
a site may be either leased or sold
assembly ware-
to manufacturing,
housing enterprises by the owner���: j
site.
(private or public) of the
Land parcels may be sold or leased, fits
either developed (with a facility)
or undeveloped. The chief advan-ralr4��
tapes of an industrial park are
usually: or l.ation (proximity to`+��,�
highways, railroad spurs ,' ports Wlxv
m ,j
or airports);
proximity to a labor�
7
pool; pre -established zoning clear -
In addition, many
antes; security.
,
,
industrial parks having been deve-
loped by public authorities or with
assistance (including low -interest
loans and tax abatement) from public��i����,`
�s
agencies, can offer highly compete -
can
tive or concessionary (favorable) 0V1, ,s 1Ri
--
In recent to
lease or purchase terms. �x �F�++�,;
b
years,
there has been a strong trend
toward development of industrial���
parks which are well -designed and
planned, sometimes even offering
such amenities as centralized ser-��� t"
vices (security, etc.);
attractive
ildin s; day-care �� No
multipurpose bugs; g
centers for children of emviovees, F���
recreational facilities, etc. The ,�;_�g
funds allocated for this program�`�` 6
would be used for various necessary
components of the industrial park�..R
�i •i
development. Principally, -however,
the funds will be used to provide"IM�
low-interest loans and loan guaran-
tees to industrial firms. In addi-
Lion, funds•would be used to assist
in providing infrastructure improve-
ments, right-of-way improvements,
physical amenities, etc.
_ �40Q, OOQ .�
Pantry Pride
The redevelopment of former Pantry
Pride Supermarket at N.W. 62nd Street
and 6th Avenue into a neighborhood
N
shopping cerv. 2r with a 20,000 sq.ft.
food market and the remaining 20,000
sq.ft. leased to small specialty
retailers in order to stimulate Blac
business development and Community
revitalization Funding will be uti-
lized for property acquisition.
10. Overtown Hotel Project
$400,000
The Overtown Hotel Project is part
of the UMTA joint -.development iri-
tiative. It is anticipated that
this 200-250 room hotel will be
constructed north of the Govern-
meet Center. Construction of the
Overtown Hotel project will support
redevelopment activities scheduled
for the area.
11. Guarenty Pool (Commercial Revital-
$500,000
ization Project)
A guaranty nool will be created from
nuhlic funds to reduce risks for lend-
ers extending credit to Black business-
es. rivarenties would serve to nrovide
lenders with collateral and partial
prof or t i on ac:ainst loss.
2. Allar.attah Commercial Revitalization
$1000000
-�-
Project
This project will complement efforts
underway along N.W. 36th Street to
revitalize the Allanattach Commercial
District. The project will entail a
paint program, beautification, improved
secruity and business promotional ass-
istance.
13. Edison/Little River Commercial Revital-
S100,000
---
ization Project
The project entails the acnitisition of
land for the development in conjunction
with a neighborhood oriented Rhonning
Center of 12 , 000-15 , 000 sq . feet along
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N.W. 2nd Avenue within the Buena Vista
..
Neighborhood (N.W. 38-54th Streets).
This Project is recommended within the
Buena Vista Revitalization Plan.
�14. Ace Theater Project
$100,000
.a
This property entails the acquisition
'
of property located east of the Ace
Theater on Grand Avenue in Coconut
Grove. Pronertp will be utilized
for exnansion of shopping arcade,
offices and a pedestrian Plaza. This
project will be the major focal point
of the Grand Avenue Commercial Revi-
talization -Project.
[15. Indirect Cgsts
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Total Proposed Allocated 1$2,500,000 1.$2,500,000
.otal City and County I $5,000,000
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