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HomeMy WebLinkAboutR-79-0049RESOLUTION NO, 7 9 " 49 A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CON'I AUNTPOR NOT PROCESSIONAL CONSULTANT SERVICES, IN AN $45,000, TO IMPLEMENT A COMMUNITY ECONOMIC DEVELOP- MENT DEMONSTRATION PROJECT FOR THE CITY OP MIAMI, WITH FUNDS THEREFORE ALLOCATED PROM THE TRUST & AGENCY FUND ENTITLED "COMMUNITY ECONOMIC DEVELOP- MENT DEMONSTRATION PROJECT"; AND DIRECTING TIIE CITY MANAGER TO PRESENT THE EXECUTED CONTRACT TO THE .. P BT1V CITY COMMISSION AT THE EARLIEST SCHEDULED COMMISSION ltl rNPU,, • r tS TIFICATION i MEETING AFTTHE EXECUTION OF THE CONTRACT FOR RA== `✓ �., AFTER APPROVAL OF THE COMMISSION. Duk F WHEREAS, the City of. Miami has applied approval of its grant application to the U. S. Community Services Administration for a $30,000 matching -grant for and received to implement. a Community Economic Development Demonstration Project; and WHEREAS, the City of Miami Community Economic Development Demonstration Project will involve planning, design, and development of a Financial Assistance Program and the implementation of a study creating a development organization to`. to assess the feasibility of encourage economic development projects within the City by securing a greater utilization and coordination of existing and anticipated. private, City, County, State, and Federal program resources; and WHEREAS, the City Commission on October 24, 1978 approved Resolution No. 78-665, accepting the offer of a matching -grant award in an amount of $30,000 from the U. S. Community Services Administra- tion; and WHEREAS, the City Commission on December 14, 1978 passed, on first reading, an Ordinance appropriating the $30,000 in Federal. funds from the U. S. Community Services Administration and the required City cash -match of $15,000 from the budget of the Office of Trade & Commerce Development; and 'T0c1lliPP1T '1. DEX CITY COMMISSION MEETING OF JAN i 1919 1 WiltR A8i the Office of Trade & Commerce Development has adhered to the provisions of the State of 1'lotida Consultant's Competitive Negotiati on ' tion Act► and has conducted a consultant selec.- tion process which began with an adVertisement of a Request for' Proposals in the local media between November 2-5, 1978 and which was cofCluded on January 3, 1979 with oral presentations by five consultant firms selected as finalists by a five -member Technical Review Committee which was established by the Office of Trade & Commerce Development; and WHEREAS, the Technical Review Committee having carefully reviewed the qualifications and proposals of all interested firms and having heard oral presentations by five finalist firms on January 3, 1979, has recommended the negotiation and award of a contract for professional services to implement the Community Econo- mic Development Demonstration Project with the most qualified firms in the following order of preference: 1) Mariscal & Company, 2) National Urban Development Services Corporation, and 3) Touche. Ross. & Company or Candeub, Fleissig and Associates; and WHEREAS, the Office of Trade & Commerce Development has. recommended and the City Manager has endorsed the Technical Review Committee's recommended rank order for the negotiation and execution of a professional consultant services agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,-FLORIDA: Section 1. The amount of $45,000 is hereby allocated "SUPPORTIVE DOCUMENTS FOLLOW„ from the account entitled Community Economic Development Demonstration Project for the implementation of the Community Economic Development Demonstration Project. 79-49 Sedtion The City Manager is hereby authoti2ed to negotiate and execute a contract, i1 an amount not exceeding $45,000, for profes- sional services on behalf of the City of Miami, with contract negotiations to take place with firms in the afore -stated order of preference. The contract shall be in accordance with the terms and specifications of the Request for Proposals and the proposals as submitted by the afore -mentioned firms. Section 4 The City Manager is directed to present to the Commission the executed contract at the earliest scheduled Commission meeting immediately following the execution of said contract for ratification and approval of the Commission of the City of Miami. PASSED AND ADOPTED THIS 18th day of JANUARY , 1979.. MAUIRICE A . FERRE MAURICE`A. FERRE, MAYOR PREPARED AND APPROVED BYe 16I TERRY V. PERC v, ASSISTANT ITY ATTORNEY AS TO FORM N1 CORRECTNESS; KNOX, JR,. ATTpRNEY "SUPPORTIVE DOCUMENTS FOLLOW" 7 9 1 4 9 the City of Miatiti'm unique potential. iti Lilo OrenOrent intertmtiona l trade, i finance, and eotutlici titsns The Otrice of Trade (l'omwrce Development iS developing a comprehensive eeot)omic deVelbpt etit .i n- vestMent strategy to execute the City's economic policy, This ;;tra- tecjy plan will address both citywide and neighborhood economic de- velopment issues, all major economic sectors, land packaging £tnrl development, financial leveraging, financialinducements, industry diversification, municipal services coordination, private and public partnership ventures, etc. n key component of the City's economic development program is the Commercial Services Division of the Office of Trade & Commerce Development. The principal functions of the Commercial Services Division are: 1) To act as the principal point of contact for busi- ness persons and investors with the City, 2) to serve as the City's primary agent in assisting existing businesses to remain and expand, and 3) to serve as the City's agent in working to attract selected new business and investment to major opportunity areas in the City. with particular emphasis on development as an international center of trade and commerce. The Commercial Services Division provides governmental liaison services vis-a-vis the private sector; quasi private entities such as chambers of commerce, business and merchant associations, industrial development groups; and other related county, state and federal government agencies. These services elude information and referral services, business outreach programs, economic research and data collection, marketing analysis, and all other related services required by industry in order to tevr'lop and. maintain a healthy local business climate. "SUPPORTIVE DOCUMENTS FOLLOW" The CM DeMc nstration Project will have 'the atttntibn of top level City Management pettonttel. This management structure Win cissUre o1.ote coordination of this project With ongoing oCono" mic development planning and policy making as well as program/project development acti.ViLios. Local Level agency coordination will involve: t) City Office of Trade s Commerce bevelopment, 2) City Planning Department (responsible for the City Comprehensive Development Master Plan, as well as land -use and zoning), 3) Office of Community Develop- ment (responsible for public capital improvements, City housing stra- tegy, and neighborhood redevelopment activities),"4) Downtown Develop- ment Authority, a quasi -governmental, public/private agency working with other groups to improve Downtown Miami, is currently monitoring some $700 million of public and private sector development and development projects in the Downtown Miami area, 5) Metropolitan Dade County Office of Economic Development, 6) Greater Miami Chamber of Commerce, 7) Latin Chamber of Commerce, 8) Little Havana Develop- ment Authority, 9) Miami -Dade Chamber of Commerce, 10) Banking and private financial institutions, and 11) other neighborhood develop- ment organizations, business associations, and economic development groups. As delineates] in the City's Comprehensive Development Master Plan, three strategies constitute present City policy with respect to economic development: 1. Provide Additional. Public Improvements and Services to Maintain and Strengthen Existing Vale Commercial and Industrial Areas. This is most effective where businesses are relatively viable, such as 17th Avenue, S.W. 8th Street, thy Coconut Grove Village Center, and the Little River commercial area. The approach tries to trigger private improvements and actions through limited public investment, such as street beautification and traffic an parking improvements. It has prove(1 .e,1;I .0 vC;_>. i,n... tr.he_,.,..DP.s tl in _rnn t r t'...1na.:r h rmn.0- . f` ►F ra.r. . Whdtd strategy hFAs 1.56 h ap.1lkod Meit!tih ttit}ir+tr Riftg DeultVAtt1, it ha§ pr6ver1 i.tttut[ieitht. Iddi ti t ttl ihvestt1 ht it) l ah§ ttr p ivattl invet;tot=s t1t'e roquired itt ttlditi n to publii iltvesttltert for sttect` thit pi.`ti.3tt>t. (+. ArbrOVIOti Atic1_�.EXPnhd ��ltll.' s t tt titimira nab-0by br__ ___ _htoFl Cat►l.ys,t dcvelopnient;t ate hew public rrojectt Which stimulate' investment. They include mtnitios, such as 8icehtt'nttial Pork: business attractions; such as the Cotivehtion Center public bi.tildintjs ► such as the Government Center; and public implrovemetits, such as the proposed Mass Rapid Tratis it system. These catalysts :houl.d be carefully integrated into the existing activities of the City. Miami: has already undertaken several projects to promote and further bowtltoWn deW 1optnent. Other possibil ides inc.l ude the develo uncut of: a Trade Mart, a Fish Market on the Miami River, an open-air Latin Market and a sports complex on Atirginia. 3 . Improve the Cmploye bi.li. ty and Cmploymen t n r Miami's Labor: Force Throt .Jh tlanpower. Proraroms: This strategy deals with 'the labor Force: It is aimed at Improving the employability OE the popula- tion and fining appropriate jobs for their skills. Tt includes job -training programs, adult-edi.rcation T%\, progd rams', appr:li entirc ipprocjt ms and job-t2lacement SU�PJR �/ G ro rams. -1n addition, ay -care programs provide Cl t'^n C means of allowing single heads of holl,i holds I.o findDOCUiil niTJ jobs and remain etnploycd. This strategy in appropri FOLLQW" Ate in arras of high unemployment and low educational ' attainment. The areas o` highest manpower needs are the Central Miami and portions of Model. City, Ccli. ,on Park and h,llapattah. A fourth economic devolopmnnt strntc+-;y Is a crt bi.n:!t.ion st r:O.r.ly which is the broadest: ilncl most: f.11 reaching, can:produce thc, 9.teatrnt results,, and requires the greatest public Cummitti1U I1L, ,, Provide lucent Public Assistance to Promote an_cievelr7imir.n1 to Attract mr w I11101IlCF+FiI?i .1110 Industry, to Croat:r•) Job Oppnr.tili tic: ,itid in :t renjt11c11 t lit'_ T,1:. l aso ri t : tlttt 1 1 t_� - - Pn_develnpment involves urban rf. newr1l powprs (-,;', land a ssernbl'/, clr'.iranc7e and relocation, .1!i well. as ne`w tools, tin.1TI':'ill9tec•hnigiit- 3 atl.rl l?riV.ltn int7ont.i.ve�1, Tax •Inoretitent- l:'ihthdthg currd ntly vailabl And Tak AbAttttiloht•, siaott to be avai.1able in the Stste- of f'lori.c]ar of hei tunl:hods of direct public 0sats tabre airs r;otnhiet° i i it li��bi3 i tt tii i i j.oat� n� i. l buaine: s 1onn60 uti`.lity ioari§, arrd proviLJ tin bf public pet:rking► lied evcl.optiicrtt is. apliropt'i.ctte•in biiiihted►--underuti1J.zrdi area§ �:ir-id where .i.,:�tid an., sembly i.§ tli.ffcuit. -This §tr'ategy- will• create opportunities for frlrthering ether-dJovelhpmeht objooLives,- such -as housing .bear etnp.loyrnent. centers► and' new industrial pants: This -strategy cati be mo§t- effeotively applied in matiy of the areas i n: or ttear bowntown, inciuding - the proposed New-Town-i tt -Town, the Miami taverf.ront, -.portions. of MLI< loulevArd, and 'Grand Avenue, the•underiitilized•I.t:C. yards near - 'the.Julia 'Tuttle.Ceiiseway'and• other selected portions of•the•City. It is antirii)ated that Lite CSA Demonstration Project will provide the basis for a rinancial Assistance Program embracing a comprehensive coordination strategy and the development of an organizational structure which will institutionalize the local economic development proces's and thereby maximize the impact of available resources. O tt t •t i:pa 1, ,c) 1gtie r, . f otriosi tt`e`ti Otls ?r0Io Proposed coottcftiic, deveic>ptnent straleOit±s Will be brionl.ed toWard MaXiMi2ing eConbrttic bencLits throughout the city, rather. than concentrating in areas designated es "Special Impact Arent." `phis approach takes into full account o .istinc3 community devel- opment activities, which will hopefully be identified, stipporfeet and enhanced as a result of the recommendations of the Demonstra- tion Project. A. To the City as a whole: 1. The development of a Financial Assistance Program and an organizational strategy for its implementa- tion ;as a mechanism to address city-wide micro - level (eq., neighborhood) economic development concerns, as a complement to a macro -level (e.g., City-wide) overall economic development Man, policy, and program strategy currently under development by the City Office of Tradv. and Commerce Development. CSA Demonstration Project will, provide the basis for the implementation of a Financial Assistance Program which would promote economic redevelopment, facilitate the attraction of new business and industry,create and expand job opportunities and thereby strengthen the economic b.0 e and tax base of the City of Miami. low income communities within the City. Analysis of ,the capita 1 needs of small rind mi nor t ty- owned businesses, identification of key problems, and development of a com rehensivc� Financial 0 ;._ Assistance Program emphasizing: a) the c:oorclin,i- ";,.. { ; .; r L- tion of .existing resources, resoures, b) :lmprd''t.nq -- i-.1 access to aVai.1abl e high -risk capital resources if for investment in declining neiglihorhoocls, and c) developing new financial resources or, fools for economic development to benefit 1 ow- i. ncoma Ccm*1)14 ties. 2. Thtt1tvej.bphhi ti ,•o3 t iiati i i1 It?;sig Atte6 rbelt eliti which wt uld thebOragt fitotitihq tor tlih•6tt h.ti§h- tricot„. of busittet ttitittpti:•which woui.d bt...fu i.i3 5 :or r iai1y..owt td by ibwi-iti ritttt Aria rtidcti - :and rtttgby•lbiw"i.iicbtiib ar i t trsidttit t. 1Vvt: 1:.....i' gtam Kitt it $Peei f ea,L on ht , to 11e rldc� I:oSr 0 Ta k....1 betermine debt And eguity needs of businesses ih the high risk: category. Task.2 Identify current sources of high risk venture. capital. T»»k._.3 identify typical development projects needed ih city's ecotc 4tic dcvelopMeht target areas: i.e., neighborhood commercial redevelophent, shopping malls, etc. Phase II. Inventory nf Governmen.t Resources Task 1 Identify all federal, state, and local sources of business loads, guarantees, capital grants, and other forms of capital creation for the purposes of economic development. Task 2 Identify all. relevant guidelines and constraints of such programs. Task 3 Identify and research all state of Florida statutes which create authorities for quasi -public bodies to rai e debt and equity capital from the public directly or from public bodies such as the stato and local. government. Task 4 Identify all relevant guidelines and constraints of information developed in Task 3. Task 5 Evaluate existing programs for duplications and service gaps. Phase III. Define Financial and Development Assistance Needs Trask 1 Using the information from Phase T , 'Tasi 3, idcn t is 1' the kinds of clients as well as the expectations of private developers and techniques to coor.dinato and assist the development objectives of the two groups. "SUPPORTIVE DOCUMENT S FOLLOW" PhatO IV bdrine Ltitiftl ChAttet Of beVelopteht ebtporatibn i Task i Utihq the ihformation ftom Phnlos 1 and 1/ dew I t up a legal chatter which mott ditectly totpohdt to the needs identified in Phmte 1 while maxittit ihq the utilitation of fOnds and authority idonLified in nate 11, Task2 Define the rking relationship between the city govetnment and. the beVelOpment Corporation, phase V. cirratii2attonel TaSk I Develop aft organi2ation description consistent with needs and authorities identified by earlier phases. Task 2 Develop job descriptions for key personnel. Task 3 Develop an operating budget. Phase VI. Financing and Timetable Task 1 Establish capital targets to begin operation. Task 2 Identify source of operating funds. Task 3 Establish agenda of actions for first 90, 120, 180 days of operation. TOmired CSA dram City of Miami Oath $1S,000 in -Rind 1S,000 expenditures Consulting Pees & Services In -Rind Contribution Assistant City Manager $ 2,500 (Richard L. rosmoen ) Director, Trade & Commerce 3, 000 (Julio A. Castano). Assistant Director, Trade 6,000 & Commerce (Tony Crapp) Law Department 2,000 Project Audit 500 Finance Department 1,000 Total $15,000 $60,000 tool p tivpbtsb • IhforMAtioi - SoUted§ The CSA beiteriStraticM1 Project Will be adfiniste.red by the CityOf Ntiatti under` the overalltttanagett►eht and guidance of the i Cdt:iftrissie�h and City Manager, Direct managetfieht will City beypr, i the Office of Trade & Commerce Development and the be provided by Other development department$ tender the assistant Manager for Planning and Community Development (Richard L. Tosmot n) Cognizant of the need for a more direct involvement in the economic life of this community and the implementation of an eco- nomic development function as part of the local govet:ntlent structure, the City of Miami is currently undertaking a program of economic development activities, The creation of the Office of Trade & Com- merce Development is the basis for a concerted effort to improve economic conditions in Miami through the active coordination of economic development activities. The general objectives of the Office of Trade & Commerce De- velopment are: 1) To increase the City's tax base, 2) diversify. the local economic base, 3) develop and expand employment opportu- nities 4) assist private investment and promote reinvestment, and 5) capitalize on the City's comparative advantage areas. The objectives of the Office of Trade & Commerce Development will be accomplished through the preparation of a comprehensive and cohesive economicdevelopmentplan, policy, and program implementation strategy directed toward three general goals: 1) Retention and ex- pansion of existing commercial and industrial enterprises, 2) attrac- tion and establishment of selected industrial and commercial firms, and 3) fostering of international business development by exploiting Count r Emappl t Thts - pri.vate sei too-- oft th€ cL ter hahth - dons. •riot fully , enttiptehetid the . clitidat. elimate •and federal and. state•gyetem --if whi't':h the rtoverti rieh t e5perc tea l not does 7. t apptrecia t t the h'E.tl i.+r • the public t eview tiroceaai t4oreover, the tWo eeetotys••do 'tint- always . agtee Oh what artaii of the City should be developed arid what type of devel:oprent is • feasible, rhere1ore, the key to a successful loeal•econotttid develt p' nett effort.1s a meaningful partnership between•the public tr private - sectors In the ease of the City of Miatni j- a coordinated•cotntnitment from • key' City.officiali has already been initiated along with the work • • on the City's Comprehensive•bevelopment Master Plan. Private motor support and endorsement will' prove :to the development of a true partnership sectors directed toward strengthening and expanding the local econo- my. be the major challenge facing between the private and public btttc-+t i E ..q4l 'ai*1W; L'g There Ate athct: factors that Will greatly effect the tidal struettire of the proposed quasi -public VchtAit c, Itys dh dradttt is largely determined by t 1. Local Attitudes 2, development Priorities, and 3, State and Municipal Enabling Legislation Some institutions have a mote public character than others, because of their powers and source ofbfunds. Project adminis- tration is often closely controlled by a formal public review process. Others, which are structurally independent from local governments, have considerable control over certain development tools. here, funding and decision -making are typically shared by the public and private sectors. The mounting costs and complexity of undertaking urban development projects makes it increasingly necessary for local governments and private businesses to pool their resources and share the risks of planning, financing, constructing and marketing major development projects. However, this is not an easy job! Difficulties to develop in each sector as they learn to appreciate and understand the other's needs and perspectives on the develop - process. [:..ample: The public sector often does not fully under.- stand the private investor's need for timely action and lonT-term commitment to a project. `i'h`e key•to thosc institutibtis it that Uir'y t pit r1 both publio t' rd privatc developmtnt o paI:S.!?y byprovidih t protot--.. gionAJ: staff of deve.iopment txpertt, l.ccal petiers at;ci fittat1uia.l flexibility, /he fle.tibi lily eti::ib1os '.the institution to rnc-tko quiCke _det✓is,ivoh_ and Operate in a smote busit5rsslikt fashion . than a public igent+y, 'Problernt OU.O. 0h of lccou i_t4bi1ity. but+ those are the advantages of such a quasi -public Vehicle. The disadvantage is the blurred distinction between the public and private sector. When individuals from the private sector participate in the formulation and management of public development programs, they are also making decisions about the use of public powers and resources. As a result, a number of questions are being raised about the accountability of develop- ment institutions to local government: Q: Can a quas`i.-public institution efteclively represent the public interest? Q: How can the public sector maintain control over a quasi -public body? Q: How much control can be exercised without compromicinn the flexibility of the institution or losing private sector .support? Q• What is the; appropriate in of public and private resources? These are the tough questions we hope to answer during the demonstra- tion feasibility study, so that questLons of accountability won't cause problems down the road! la Cites Ar.6 Atatninq tliit coati oof i otlitlebs lcguateteh- ttit ut t bf urb h planning c b 11_.�.... ,p n�U t-iii fit ittfofiiatiot! dot clevc1opinci otnp.._ sttate4lba New•appronehea and t.ii•ban planritnr tooia t;ivat die deVeloPeti € hci ititpieti mit6 Cities are finding• that traditioftil federal grants-. ih—aidp auch as: t1UWs community development pregroffitl or Labtlr�s OE 'A �arogratti� are not' easily _ nt-orA 4 itito comprehensive econotfiid deve16pmetit strategie§ The legis).ative . history ntid administrative tradit;ioti of these.agencies have.produced guidelines that .generally.have inhibited -the stimulation of private' :sector eeonotiiic- activity. rinal1y, cities are reCC' iZifl Sec t t� n ereshoy dstat build cooperation with private tto levels the POLICY LEVCL,-;where overall• • strategies are discussed, reviewed.and'adopted, and • tho IMPLEMENTATION LEVEL, where projects are • designed .and financing is arranged. HOW ARE CITIES OVERCOMING THESE PROBLEM ARIAS The trend is toward the creation of joint public/private development institutions that share the responsibilities of policy planning and program implementation. Examples of these joint institutions include: mayor's task forces on development quasi public development corporations downtown development authorities economic development commissions They differ according to their purpose, structure, power, source of funding and their area of focus, which might include a specific or city-wide project, an economic sector., or sub -city t ti Lb. ,60w,._titicl_tr t;0d .1) .s.. bemtlh s t_ ra tieetrit t `elidt LoWatd tledentraliratioti and d ,caLegtiti.'ttati n of fr±deral 664thitinity develdpthettL and ftt,ttipoWcr ht-Ogt°dhts his shifted the etnphzlsi.s of deeisionjtitaking froth t:hE fedceal t local governtiient OffiCialt. As a .result, focal governi=nehL rlow has a greattr:rpSpOhSibili.ty for the coordination :find planning Of a public economic development program, Another trend that supports an aoyressive coordinated development approach between the public and private sectors increasing federal pategorial grant support that provides 'cities with the capacity for planning and impletnentitrg a coordinated economic development strategy. An Examples EDA's Section 302 planning program which provided support to cities planning and analysis, 2nd Example: 77-79 Community Economics Development Demonstration Programs - jointly funded by HUD, Labor Department and EDA This 10 ci ty demonstration program is aimed at increasing the capacity of cities to plan, program and manage the public and private investments necessary for successful eocnomic development. In short, the federal agencies area giving .local city, state and county governments a tree hand. They are encouraging inno- vative and imaginative program s that package an improved blind f public and private expertise in the development: process. However, in their efforts to improve their capae1ly to deliver, the cities have encountered 4 major problem aro,as. 1. They are finding that their government structures, which h,i e evolved gradually over the yrrrr!i, do not permit a quick and cfmrdinate(1 response to t 1"' nf''ods of private .,ntrr.;,r for comprehensive Ia :ustries Retail Trade Wholesale Trade :;elected Services :lanufacturing TOTAL ,EMPLOYMENT AUD ESThflLlSiir!EN BY: SELECTED INDUSTRIES CITYOF !II s tI AND DADE--CODUTY Dade County No. Establishments No. Employees :.aurce 1972 Census of Business, Gladstone Associates 4,659 C34 i 1,316 (371) 5,421 (36%) 997 (34t) 12,393 (351 23,,635 (3G%) 14,122 (371) 23,Et21 U321. 25,600 (3(1%) 52,332 f32s) II DISTRIBUTION OF F NON-AGRICULTURAL E'tPLO£MEUT . BY INDUSTRY DADE COUNTY 1960 — 1975 Industrial Category 1960 1965 41,700 13.61 54,600 15.0% 75,700 15.3%,, [ 88,,500 14_73 23,300 7.6% 23,300 6.4% 32,100 6.51 39,1043 6. 6% T.C.P.U.` 35,300 11.5% 37,400 10.3% 56,500 11.2% S ,,900i 9}.;7A T a3e 87,600 28.5% 99,400 27.3% 132,700 26.5t. 154,9(10 2.5_7 r.I.R.E. 3 20,300 6.8% 24.700 6.8% 23,900 6-575 44 50,G 2.ervices s Miscellaneous 63,300 20.6% 77,600 21:.,3% 114,70E 22.7%. 145,7G0 24-It Gcve n...ent 35,600 11.6t 46,600 12.8% 57,600 11.3% 7 ,30-0 it -al Total 307,600 i00.03 1363,600 100.0% 503r200 I00.0 ¢ 6:03,4004 100�-0 Manufacturing CJntrict Construction ;January 1975 Original: Monthly Estimates ;T`Transportation, Communication aa3 Public .Utilities ransportation, Insurance and Real Estate 1970 %1:rce: Labor Market` Trends, Florida Department of Commerce, Gladstone Associates 19,75.1 ID" ESTIMATED OFFICE AND NON -OFFICE' EMPLOYMENT DADE COUNTY AND CITY OF MMIAMI 19E15 ESTIMATED EMPLOYMENT: I9a5 Dade County Industry City of [Miami As 8 of Dade Co... ►lu.'tth.er Manufacturing 130,000 Contract Construction 62,000 Transportation, Communication 80,400 andPublic Utilities Trade 200,000 Finance, Insurance and 72,800 Real Estate • Services and Miscellaneous Government TOTAL 205,000 100,000 850,200 25' 30$ 35% 30 31%, 3G%. 404 263,300D iF Source Gladstone Associates vs. roxir:atcly 35t for ��p ire toetlt:pedtod to .itiai`o<ito• froth its pr7at;t tQrt1 a 4t.00 jobt t i ty n•`iJ>OOO mht1 88 000 by LCCAT1ON!t, COMPAP t8Otts bbTt1t:t;t PLACE 15P t MPL81c`t;E't► A!ib titttbMCt 1,t-Tit C2TY of ,tt .tt ltt i010 1't 0,641 tug * M''S Yi NAM VP MwM'1 ' y wN 1Downtown Miami 1973-1985, An Urban Development and F,oninq Wt•11tT trout outlying bheppitig 'ddhte'ss itrt lit ly, mattutActt1Iing within the city has sutfeterl frotfi the Competition of outlying ateaa c ffarittc inevpetjtaiV€i latici and lower tAMeSs Retail and tanurcic- turinc, theref Ye► represent only tnargittal growth poLentiol rot the City. Employment growth for the City to 1985 is expected to exceeC 87,000 jobs or 50% of the 19`70 level, ttoweVer, the remainder of the region Will expand employment opportunities even more rapidly. The City, however, will continue as an . important employment center within the region. tta,imi has a significant opportunity to develop as a major international trade center. Over one billion dollars in exports currently are handled through the Port of Miami.. Cruise ship activity as well as international trade can be expected to expand. Dredging operations planned to allow passage of larger ships in addition to potential trade relations with Cuba should contribute to a further expansion of Miami's port operations. The City of Miami will also remain a regional center for office related employment, particularly for financial and other professional services. Between 1962 and 1972, 54 of the county's office growth was located in the City of Miami Of the total, 43% was located in downtown Miami. Several planned public projects will undoubtedly reinforce the downtown office core. Downtown and adjacent areas will benefit from improved access afforded by the proposed rapid transit system. DownLewn According to -tire 1070 contuz i •thero of lTa 000 fobs. +within the City of Miami:► This rcpresent'.s r"l jptsO :lttr�ttC'i.' of ;the i;ount:y. titnpl.oytiient. hcc)iona]nplu itnont t:emains t:r n- • tralitod•within the city, since rho city ac'coitntr for on1.Y tho urbahi2ed land. area - and 2 .of the county population, • The bulk 'tit-c:tnployment' growth to recent years hat of tutted outside the City` of Miai'ni. The incorporated community of'Hialeah' and Unincorporated sections of bade County Barre received•much .ref this job expansion, due to`. the availability of inevpensive•.t.anrl, expressway access and -an expanding subuLban-population From 1972 Census -of Business data, the City -contained. over 90,OOn jobs.' in the primary categories of retailtrade, wholesale trade,.manit-• facturing and -selected services Aincluding finance, insuranc and -real estate) . -This corresponded -to 32 of the total, fni' Dade County.. The city was str.oncJest in the category of: whole- sale trade,' with 3M of the-tota1.., While not included•itl the' 1972 data,, the- City of• Miami remains a center for-governnicnt employrnent. The County Courthouse and house the bulk of this ompl.oynront • however, the_ new Government Center will further strengthen the centl•,i1 area as on employment. core. the Civic Center present! Retail employment continuos in a fairly stable position in downtown Miamidue t.o the development of new togionril particularly the Ornni development. However, outside of downt ewu, the widespread strip commercial cie_velopr.:itLs ore undCrgoin'l decline in market mi port_ duel primarily to increasing rnmj)ot ilir'u bAbr„,66bN ; 10M1( 1 1 t 0-1 o tkfitii0AL i'NubS 1. Emterrial nv'entmotit Property T.ncone Tranoter Payment. • 4. -- Other 'Labor. Income Total•E.cternal Curios I. BASIC ECONOMIC ACTIVITIES 1. Tourism 2. Manufacturing a. Aluminum 2% b. Garment 3 c. Printing ► Publishing 1 d. Electronics e. Plastics 1 f. Other 5 Total Manufacturing 3. Aircraft Maintenance 3 4. Wholesaling, 2 5. Agriculture 1. 6. Airfreight 1 7, Air Home OEtice 8. Research 1_ 9. Other Basic Activities 19 Total Basic Activities 66 h• bt To a1 Ehnomic t Ases 973 10 12 3 {. . ► . • • . . . . . .. 34% Source: 21 13% 5 Research Division Metropolitan Dade County Planningi Department, Metropolitan Miami:",. A Demographic Overview, '1972 f tltt? IdeOnd large t gt=owlh indue,,Ett mew: job§) foll6t4k t1 by metnutactttting tot'1'esr5htilig ; , 3Ot) _)bbs alilii.irilly-, 1_twth ,within Eht c a togory o r. Heirdurahci .•gtir)cl , p7t: t iculAr 1.y tipparc.l. and to tile$, cdtietittttr Lhe att:•nntjest•compcnctit or tiiihtr fae'tiiril g •grbwth, 136nkiti4, an. a -component of t;ic'. finalice, insurance and- 1:c61 estate industry, has . e' perionced rapid growt}i tl recoui. yeat�s. The importance of construction acid trade activities and the 1-iso of manufacturing by demanding local capital and credit has Stimulated the development of a strong regional financial center whose significance extends throughout Latin America. NON-A'It?tCiti]TUrM. EMPLOYMENT tot I;JDUSTPY DADE COUNTY 1960 1974 Industrial Category Average Annual Employment 1/ 1 "60 1965 H7n Manufacturing 41,700 54,600 75, 700 91,800 Contract Construction 23,300 23,300 32,100 43,400 '1'.C.P.11. 2/ 35,300 37,400 56,500 60►100 Trade 87,600 99,400 132,700 156,400 F-.I . R. C. 3/ 20 , 00t) : 24',700 13,900 47,100 Services & I4isccllaneou; 63,300 77,600 114,700 142,200 Government 35,600 : 46 , 600 57,600 71', 100 307,600 363,600 612 ,1►)0 1/ Estimated on place -of -work hnsi 2/ 1'r n:chortation, _ Comununicat.icm and Public U►:.il it i.e::. 3/ Finance, Insurance ctnd Real Estate Source: Labor Market Trends, riorida i)rh.arttnrnt of Oimmercr. 1 patterns. , Vor thr tiatioh, manufacturing ctnpir�ythetlt other•tatecori'es with 26-13 bf • ali jobs. fello ted by cr.Vitet and cj Verflt eft with ).5t.+ each~ iletail trade i.tlduttry i fourth with alit roxim tely 10, tn. comp ►rison, the Miami- area it dominated by the -trade ilidutjtry (retai_t as well as who1csale) repretentitt-t • approximately 26% of the employment base. Next in importanc:e• is the category of sereice.industries which together accouHt.foe • over 24A of the County's jobs. Trade and service related employ font combined account for half•of.the toal employment strength of these job categories underscores -the importance of tourism to the• regional economy. 19% of the _2r0°• (of' total employment. base) of. trade•jobs are retail employment•related. Next in importance is manufacturing with 15 0 . nl though' Dade County`s manufacturing and.government job categories are less •important than for. the nation, all other categer.ies, conversely, are stronger. Contract construction, in particular, has 12% of the region's employment, compared with 5 for the nation. 'Phis. of course, reflects Miami extraordinary rate of urbanization. In addition, tourist related employment is more significant for the Miami region than for most other areas of the country. within the hotel and lodging industry. within the services heading) accounts for 4% of all job pared with 1% for t:ho nation.' ca tccjo ry Although trade continues as the leading employment category, services exhibit the largest numerical jrowth rate, accounting increases of 7,400 jobs annually. Retail .ind wholesale trade his been of the type' W}iie}i ift% i is on - the t hVironmieht► I de tslifity iJ A tapidl.y r:;pandinvi Onufactut°it,ct oettitnr mhieh ' rettiains doming tect by cjattnetit *nut� d tttri g.,• }lkiw= oVet°, predision.electronics, aluminum fabiidition and plastics -Ate increasir 1y. attracted to the outlyinq Miami area► Another signifiant eletnot,t of the eC:onoml.c -ba8ei external funds, originate outside the city but do not involve the pro. duction of gobds and services. The Miami area has a particularly important external fund sector (9 ) due primarily to the large number of retired persons whose incomes is derived from pensions, government and other external income. Although not considered a basic economic activity,` the largest and increasing source of secondary income in the Miami region is the production and distribution of services. The mix of economic activities processed by a local economy determines the level, distribution and stability of income into the area, However,the growth and distribution of employment Opportunities normally is a dominant factor influencing the sie and growth of an urban area. In addition, employment is the most commonly accepted measure of economic performance. The type and level of economic development which the City of Miami will experience during the nett ten years is a function of regional employment growth conditions and the rate at which the City captures regional growth. Duo to:Miami's unique development history, significant-. dif ferener,s exist between Miami's c"mployment, niix :in'l national bcnittidah epublic 18t~/'hey i doSta I ir41 lti4'%hr: PintPint§ c() tihue i igrate Lo Lake sdV hLag of labor sdVingN i:ti this labor.,i'n'tetisive industry. The tourist i.ttciustry mot with crippling Compelition itt the 7O's from, bisttey World, the Caribbean and other resorts. occupancy levels dropped drastically and largo hotels like the rountainbleau and the Eden Itoc have gone into receivership• Even though Miami has few hotels in comparison to Miami !leach, most of the work force servicing the tourist industry comes from the Latin community residing it the City of Miami, As with all metropolitan regions, the economic base of Miami area consists of those economic activities for which production exceeds the requirements of local consumption. ty receiving income from outside sources through basic economic activities, the ttiazni region is able to purchase goods and services not produced locally. Tourism continues as a major "export" industry representing approximately 210 of the economic base. The hotel industry and other supporting services centered in the beach area benefi L• markedly from this major economic activity. Likewi.se, tourism represents a major source of income to Miami's two principal transportation centers, the Port of Miami and Miami International Airport. OE importance_ to the regional economic base While the manufacturing sector in the Miami region is not as significant as in some other major cities, industrial growth teortoM4,a o the uhir ue hatUre of Miami l s ecofcitnid hci u has r J_'`ao Created ater1 soriolts probte is for the CiLy's cconottli.L health. The heavy depenc1cnce Oh tourism, construction, and the gat -Met -It industry in Mini led to the very high unempl.oyr ent rates of 12 to 13 pet - dent during the recent 1973-75 recession, as tourism and construction are generally among the first sectors to suffer. durihg a national ecohomic downturn. Industry employment figures for Dacle County, shown below, reflect both the impact of the economic recession and some local softness in the industries themselves. i•1PLOYMI NT BY INtUSTRY DADE COU4JTY Construction - Garment Hotel Total 1973 44,700 22-,603 24,800 92,100 1977 2,3,900 19,400 16,800 60,100 Construction ,activity has dropped considerably since it: 1973 peak for a number of reasons. These include the national recession, the local decrease in demand for housi.n't caused b;• the cessation of Cuban in -migration, and rampant increases in housing costs unmatched by income expansion. The garment industry has steadily sufferedas .n result of Competition from c1w.ip-labor countries; Lolumlii.ri pfesehtiy t orivot sage 4J1 of A is eiehtArt1_ Operatinct AdUOM .itg from the property LAM bases UtietttioYregt.. Probidfn In addition tb a severe 1rev0110e problem, the City of Miami faces a serious unemployment problem. During the spr it j and summer of 1577 a City survey placed the unemployment tate At 964% within the city At a time when unemployment countywide was approximately 7%,a figure significantly higher than the y 9 g national rate. BASIC rt•1PLQYt•1ENT PitorILE OF THE CITY OF MIAM.t SPRING-S1)MMER 1977 Employed % Emfi'loyed % Active ' Discour.noed Full-time Part-time Unemployed Unemployed (N) City of Miami 75.1% ] 1.9% 9. 4% 3.6% 051) Racial/Ethnic Groups Anglos 77.2 14.5 4.6 3.8 (141) Latins 78.3 8.8 9.2 3.8 (544) Black 67.2 17.3 12.5 3.0 (263) Neighborhoods Model City 66.5 18.2 Edison/Little River 67.4 24.1 Allapc ttah 80.5 7.0 Wynwood 82.2 5.7 Culmer 61.3 1.2.9 Little Havana 75.1 9.1 Coconut Grove 64.5 13.2 Other Miami 80.5 9.9 14.1 6.1 12.5 12.1 22.6 9.5 11.2 5.7 1.0 2.5 0.0 0.0 3.2 6.3 11.2 3.9 (t06) (98) (91) (37) (31) (191) (31) (359) ,be dedlittitiq itt yeti t te% int i• 'beer the Oast three ye:art the 'growth n the pro i rtj 'tci' b ige h 6 9.0-'' (1.07s) , y' 0.16) nd •(1977) s Phis 0.oWed rt' owth t: ri:e It: s' o6cur,t'd at a tittle. whoa the iJest of. provi.ctinc City, se?Viees has ravi'ily ]:net-oastde At the Sable tithe, the tepo?ty tc : base ctrowth i.n bade County has-been cehtistently. higher than the City.: CITY TAX t3)\SC Gt bWT11 Year City of Miami % Increase Over Previous Year Dade county % Increase over Previous Year 1971 10.Q% 1972 7.07. 1973 13.0% 1974 29: 53: 1975 9. 0"i 1976 5.5% 7.07 1977 3, t3% 5.07. * Reassessed upward in ' 74-not a relevant figura. Ater adjusting for increases in the cost of services and supplies, the City tax base has shown a real decline in the. past two years, a decline that threatens the ability of the City to balance its annual bu.idget. Only substantial redevelop- ment ,and economic growth can reverse this trend. In 1977 the City of Miami increased its property tax millage rate to 10 mills (the State limitation is a imposed limit on municipal governments). ever- fiscal hardship in-as-mar+:h as the 0wou .....ltttntiii4Liottty.r (A , Tlie city of Miaiid is currently f n. tt g a •crucial. fiscal situation in which its financial options are -a severe 'curtail- ment of municipal sPrVices, ati r efts= -it oC its economic aittl tag bases through an active. and innovative economic development plan, or a combination of the two altei:nativete ,flour key measures -of median fatni1y ineoine, property tart base, unemployment aticl employment :trends by major. sect-i-- - all indicate a worsening fiscal situation in the City. Income'.Trend The median family income of• City residents has declined, over the past twenty years, as a.percentage of Dade County family income. Year 1950 1960 1970. TABLE I City Median Family Income as a of Dade Country Family Income* 188* 83 (82) 79 (80) a.. Census population and housing, Census Tract, 1970 ** 1950 figures combine median family income for families and individuals. Figures in parenthesis for 1960 and 1970 show median income for families and individuals combined. City Tarr Base Miami's property tax base, poses a severe revenue probion, in that, while not declining in dollar value the tax bast may thLt:otluctioh The City of miffini pLopoget; to examine the feasibility of creating a mechanistic capable of advandiUcj the development or Lht City, h This deveit -tnt?tit tool would be authori ed Lo inVesti:ct tt.o alternative treasures to encourage development projects within key areas by securing a greater uti1itatioh and coordination of eXit;t; ing and anticipated programs, Working in harmony with the City's development departments (Planning, Office of Trade & commerce Development, Community De- velopment), and within the framework of the City's Comprehensive Development Master Plan, and the Comprehensive Economic Development Strategy, this Development Corporation, would initially concentrate on providing financial and project- packaging assistance in coordina- tion with existing development agencies. In addition, the Develop- ment Corporation would seek high risk loan and equity capital to fi nonce the acquisition of land and construction of buildings for pro jects it approves, and arrange for financing for its portfolio pro- jects. The purpose of this grant application is to secure matching funds from the Community Services Administration in ori1er to finance the planning and design of a financial Assistance Program. The pur- pose for which this planning study is being undertaken is the c,r%atlon of a Development Corporation, which would possess the most compre- hensive set of financial tools and technical expertise available for utilizing public funds to induce private investment: into areas and industries which are consistent with Miami's public policy ;ind r'c no-. mic growth objectives, which ,ire currently being plc f i nrd. CONTENTS Introduction Background Information Cite -of Miami. Economic Condit.tonS. - Income Trend • City Tait ' t3ase - .Unemployment - Economio Base . Needs to be Addressed by Demonstration Project• 4.' Local Project -Liaison, Support and Information Sources 5. Anticipated Benefits•of Demonstration Project Work Program and Schedule 7. Budget CITY OF MtAMI OFFICE OF TRADE & COMMERCE DEVELOPMENT DEMONSTRATION PROJECT PROI'OSM1 Joseph f t Crassie Page 2 Jahtiary Sp 1979 The Office of Trade & Coim erce bevelo m ent has. adhered to.the provisioht- of.the State of Florida Oonsultant's•competitive.Negotiatiori Act, --and - has conducted -a consultant selection process which begari with an•adVer., tisement of a Request for. Proposals in the local media between. November 2 5, 1979• and which Was•concluded . on January 3 r 19 79 With oral presence Cations. by. five consultant'. firms selected as finalists b a five -member • .Technical• Review - Cotrmittee which was established by the Office of• Trade &'•Commerce Development. On behalf of the Technical Review Committee, I am recommending the negotia- tion and award of a contract for professional services to conduct the Community tconomic Development Demonstration Project with the two most qualified firms in the following order of preference: 1) Mariscal & Company; and 2) National Urban Development Services Corporation, Please be advised that there were two firms tied as the third choice for the contract award- Touche Ross & Company; and Candeub, Fleissig and Associ- ates - either of which would be acceptable in the event that a contract could not be negotiated with either of the first two choices. JAC/TEC:vh Attachments - Proposed Resolution - Grant Proposal Resolution #78-665 Appropriation Ordinance Consultant Proposals (4) i t'l 1.F >.it. ',11. t'LGF?IhA t Joaeph R. 'GresSie • :City t�iarager Fc"' Julio A. Castano, Director Office of grade & Com neree velopment ,'..-rk.- -da uary•0 19,5 Resolution Authbriz ng 6Ohtr'dCt. EkeCtitioii to ii-iipleireh€•.the•Co t� • tMihity Econotic beve lop tteht CSei ton' .stration-FYojeet Attached for presentation to the City Commission on January 18, 1979 is '. a Resolution which authorizes the City manager tonegotiate and execute a contract for r p consultant services, in an amount not e{ceeding $45,000, for theimplementatibn of a Community Economic Development Demons- tration Project for the City of Miami. The City Commission of October 24, 1978 approved Resolution 78-665, accept- ing the offer of a matching- grant award in an amount of $30000 from the Office of Economic Development, U. S._Community Services Administration (copy attached). On December 14, 1978 the City Commission passed, on first reading, an Ordinance appropriating` the $30,000 in federal funds from the U. S. Community Services Administration and the required City Cash -match of $15,000 from the budget of the Office of Trade & Commerce Development (copy attached) The City of Miami Community Economic Development Demonstration Project will involve planning, design, and development of a Financial Assistance Program and the implementation of a study to assess the feasibility of creating a development organization to encourage economic development pro- jects within the. City by securing a greater utilization and coordination of existing and anticipated private, City, County, State, and Federal pro- gram resources. The anticipated benefits to the City of Miami from this demonstration pro- ject include: The development of a Comprehensive Financial. Assistance Program which will be directed toward the coordination of existing financial resources improving access to available high -risk loan and equity capital resources for investment in declining neighborhoods and city-wide public/private development projects, and developing new financial resources or tools for economic development in the City. A feasibility analysis of an organizational structure for the implementation of the Financial Assistance Program which would promote economic development, facilitate the attraction of new business and industry, create and expand job opportunities and thereby strengthen the economic base and tax base of the City. The Office• of -Trade .&' Gotnmerde Delopftlent has -. adhered . to i the - pt0Viaioiis -. of the-gtate of Florida Consultaht►s Cotipesi heChe0otiatioii Act, and has oiducted a consultant selectioiri the focal tttediaabetweena�vovembef tieement of a )request. for .proposals 1979 with. oral pre�eii� -2-5,.-1979 and which was concluded -on danuary•3, five consultant firms selected as finalists by,a- five -Member tations•by ,-i � of -Trade.. Technical Review Committee which was established by the Office of 'fir e•Development. - the ne ota� & Cbeh behalf the-Technical•Review Conlmittee,'1 am •recommending g ti behnl tion and avtard of a contract.. for. professtoohlprorect with theatwo most,, -Community Dconoittic Development Demonstra J qualified firms in the• following-veorder-entprerviceseCorporationcal lease Company; and 2) National tlrb be advised that there were ttvo firms and eSCandeub,r�'lessig and Associ� 'contract .award- Touche Ross•& p y ates - either of which would be,acceptable•in the- event. that a contract could •not be negotiated with either of. the first two choices, JAC/TEC:vh Attachments - Proposed Resolution Grant Proposal Resolution #78-665 - Appropriation Ordinance - Consultant proposals(4)