HomeMy WebLinkAboutR-78-0665RFC / orb
lo/18/78
RESOLUTION NO, 8 6 6 5
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ACCEPT A $30,000 GRANT AWARD FROM THE U.S.
COMMUNITY SERVICES ADMINISTRATION FOR A COM-
MUNITY ECONOMIC DEVELOPMENT DEMONSTRATION
PROJECT, PLANNING, DESIGNING AND DEVELOPING
A FINANCIAL ASSISTANCE PROGRAM AND THE IMPLE-
MENTATION OF A STUDY ASSESSING THE FEASI-
BILITY OF CREATING A DEVELOPMENT ORGANIZATION
TO ENCOURAGE ECONOMIC DEVELOPMENT PROJECTS
WITHIN THE CITY BY SECURING A GREATER UTILIZA-
TION AND COORDINATION OF EXISTING AND ANTICI-
PATED PRIVATE AND PUBLIC RESOURCES; FURTHER
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
p(�R` \V 'f�ECESSARY CONTRACTS AND/OR AGREEMENTS TO IMPLE-
"S `p �,,/R 11 MF.NT THE PROJECT.
OCUNt'E
FOLLOW
WHEREAS, the City Manager or his representative has
applied for a grant from the U. S. Community Services
tration for a Community Economic Development Demonstration
Project; and
WHEREAS, this project involves planning, designing and
development of a financial assistance program and the implemen-
tation of a study to assess the feasibility of creating a develop-
ment organization to encourage economic development projects
within the City by securing a greater utilization and coordina-
of existing and anticipated private, cit�y,0tq' trY4 s�®EX uj,riitt
federal resources; and ITEM N0.
WHEREAS, sufficient City of Miami funds and in -kind
services have been identified
NOW, THEREFORE, BE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
meet any requirements for match
a $30,000 grant award from
COMMISSIONOF THE
Community Services
Administration for a Community Economic Development Project,
planning, designing and developing a financial assistance program
and the implementation of a study to assess the feasibility of
creating a development organization to encourage economic develop-
ment projects within the City by securing a greater utilization
igt he and ' .tihated pt1Vate eat
biio tesbUtceS,
Section 2, The City i4anaget is hereby authotited 'th,
e` tetUte the necessary contracts and/or agreements to ithpie
tent this project.
PASSED AND ADOPTED this 24 day of OCTOBER
MAIJRICE A, FERRE
t1AURICE A. FERRE, M A Y 0
ATTEST:
RA PH G 'ONGIE, CITY CLERK
PREPARED AND APPROVED BY:
1 f %
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/C,
ROBERT F. CLARK, ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECNTESS:
GEORGE . KNOX, JR., CI
TORNEY
"SUPPORTIVE
DOCUMENTS
FOLLOW"
r 78-665
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Joseph R, Grassi
City Manager
:ITY i1Y' 11A►.li. :-Lof3IDA
1'i '"�.0 r w tr i� ' 1�Jt;:`.i•lDU�•i
Julio A, Castano, Director
Office of Trade & Commerce DJelopment
The Office of Trade & Commerce Development has received notification
of positive action on the City of Miami's application for $30,000 in
matching -grant funds from the Office of Economic Development, U. S.
Community Services Administration (CSA). The federal grant funds have
been awarded to the City of Miami for the purpose of implementing a
six-month Community Economic Development Demonstration Project.
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
projects 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
project include:
- The development of a Comprehensive Financial Assistance Program
which will be directed toward the coordination of existing fi-
nancial 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 im-
plementation of the Financial Assistance Program which would pro-
mote economic development, facilitate the attraction of new busi-
ness and industry, create and expand job opportunities and thereby
strengthen the economic base and tax base of the City.
Attached please find, for Commission approval, a resolution authorizing
acceptance of the $30,000 grant from the U. S. Community Services Adminis-
tration for the Community Economic Development Demonstration Project.
I am also attaching for Commission information a copy of the proposal
which prompted this grant.
JAC/TEC:zf
Encs. (2)
"SUPPORTIVE
�UM
DO ENTS
FOLLOW"
78-665
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CITY OF MIAMI
OFFICE OF TRADE & COMMERCE DEVELOPMENT
"SUPPORTIVE
DOCUMENTS
FOLLOW„
September, 1978
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1 c kground Information y City of Mialti CooriofniC ConditibfiS
- Income Trend
City Tax Base
-
Unemployment
Economic Base
Needs to be Addressed by Demonstration Project
Local Project Liaison, Support and Information Sources
5. Anticipated Benefits of Demonstration Project
6. Work Program and Schedule
7. Budget
"SUPPORTIVE
DOCUMENTS
FOLLOW"
thttbd j ,tio
the City of Miami proposes to examine the feasibility of
dlxeatincj a mechanism capable of advancing the development of the
City, This development tool would be authorized to investigate
alternative measures to encourage development projects Within key
areas by securing a greater utilization and coordination of exist-
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-
'inent Corporation would seek high risk loan and equity capital to fi-
nance 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 order to finance
•the planning and design of a Financial Assistance Program. The pur-
pose for which this planning study is being undertaken is the creation
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 and econo-
mic growth objectives,
wItlffitTrWeing
DOCUMENTS
FOLLOW"
defined.
78' 665
IIIIIIIuIuuIIIIIIIIIiuII
)3d declihitig ih real tetins, Over the past three years the
JtoWth in the pioperty tax base has been 9.0% (1915)# 55%
has occurred
(1976).,
at 1 time when the cost of providing City services has rapidly
increased. At the same time, the property tax base growth ih
bade County has been consistently higher than the City.
and 3,8% (1977) ,
This
slowed
growth rate
CITY TAX. BASE GROWTH
City of Miami
% Increase Over
Previous Year
Dade County
% Increase Over
Previous Year
* Reassessed upward in '74-not a -relevant figure.
After 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 budget. 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 imposed limit on municipal governments).• This.
limitation is a severe fiscal hardship in -as -much as the City
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thtroduCtion
pity
of Miami ptoposes to examine the feasibility of
dreatihci a mechanism capable of advancing the development of the
City, This development tool would be authorized to investigate
alternative measures to encourage development projects within key
areas by securing a greater utilization and coordination of exist-
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-
nance 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 order to finance
the planning and design of a Financial Assistance Program. The pur-
pose for which this planning study is being undertaken is the creation
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 and econo-
-rtilvil
mic growth objectives, whi t t being defined.
DOCUMENTS
FOLLOW"
78 665
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C:itburtd It f_nt ftiati.bn%Cit,y, E wFfiiat i
Of Miami is currently facincJ a crucial fisdal
iati ti in Which its financial options are a severe curtail
:Mehl: Of municipal services, an expansion of its economic anti
.taX bases thrruJh an active and innovative economic development
1 att, or a combination of the two alternatives. Four key
measures of fiscal well -being —median family income, property
• ta•: base, unemployment and employment trends by major sector--
41 indicate a worsening fiscal situation in the City.
tilcoMe Tren'i .
Th` median family income of City residents has declined,
;`over the past twenty years, as a percentage of Dade County
arnily income.
Year
1950
1960
1970
**
TABLE I
City igedian Family Income as a
of Dade County Family Income*
188*
83 (82)
79 (80)
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.
-it,:v T::.. Base
Miami's property tax base, poses a severe revenue problem,,
in that, while not declining in dollar value the tax base may
MIST,
bd rdedlining in real terlt'ts, Over the past three ear th@
rOW th in the property tax base has been 9,0% (1975), 5,5%
(1976).t and 3,8% (1977), This slowed growth rate has occurred
at a time when the cost of providing City services has rapidly
increased, At the same time, the property tax base growth ih
bade County has been consistently higher than the City,
Year
CITY TAX BASE GROWTH
City of Miami
Increase Over
Previous Year
1971 10.00
1972 7'.0%
1973 13.0%
1974
1975
1976 5.5%
1977 3.8% 5.0%
*Reassessed upward in '74-not a relevant figure.
Dade County
% Increase Over
Previous Year
'After adjusting for increases in the cost of services and
`applies, 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 budget. Only substantial redevelop
_rent and economic growth can reverse this trend. In 1977 the
City of Miami increased its property tax millage rate to 10
mills (the State imposed limit on municipal governments). . This
'limitation is a severe fiscal hardship in -as -much as the City
1i ii etitly derives some 0s, of its 6e`tietai Operating 401ehiie ,
ftbM Lhu property 'tak base.
gh1 O1(„s2:yn;«nt 1 robletn
In addition to a severe revenue problernr the City Of
,•imami faces a serious unemployment problem. During the spring
and summer of 1977 a City survey placed the unemployment rate
Within the City at a time when unemployment countywide
:t3ag approtcirately 70, a figure significantly higher than the
national rate.
:e1SIC: EMPLOYMENT PROFILE OF THE CITY OF MIAMI
SPRING -SUMMER 1977
% Employed o Employed % Active % Discouraged
Full-time Part-time Unemployed Unemployed (N)
City of :Iiami.
Racial/:a:hnic Groups
Arig1oS 77.2, 14.5
Latins 78.3 8.8
black 67.2 17.3
:I.,luhbor;.)o.l3
Model City
Edison/Litt:le laver
:all.apatt.h
; . nwood
Cu1::ier
Little Havana
Coconut Grove
Other Miami
75. 1`%
66.5
67.4
80.5
82.2
G1.3
75.1
64.5
80.5
11.9%
18.2
24.1
7.0
5.7
12.9
9.1
13.2
9.9
9.4%
14.3
6.1
12.5
12.1
22.6
9.5
11.2
5.7
3.6%
2.5
0.0
0.0
3.2
6.3
11.2
3.9
(951)
(141)
(544)
(263)
(106)
(98)
(91)
(37)
(31)
(191)
(31)
(359)
ObItO ni,.d, Ba$e
The unique nature of Miami s ecohofhic base has also created
serious problems for the Cityis economic health, The heavy
dependence on tourism, construction, and the garment industry in
Miami led to the very high unemployment rates of 12 to 13 per -
Cent during the recent 1973-75 recession, as tourism and
construction are generally among the first sectors to suffer
during a national economic downturn.
Industry employment figures for Dade County, shown below,
reflect both the impact of the economic recession and some
local softness in the industries themselves.
EMPLOYMENT BY INDUSTRY
DADE COUNTY
Construction
Garment
Hotel
Construction activity has dropped considerably since its
973 peak for a number of reasons. These include the national
recession, the local decrease in demand for housing caused by
the cessation of Cuban in -migration, and rampant increases in
housing costs unmatched by income expansion.
The garment industry has steadily suffered as a result of
competition from cheap -labor countries: Columbia - 28C/hr.;
"SUPPORTIVE
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c;uiiririi.cari Repubi.id 38Q/hr. ; costa tti a Wih Pifth do
•tithe to rni,Irate to take advantage of labor SaVi• gb ih this
.t bor iritensiVe industry.
The tourist industry met with Crippling competition ih the
from Disney World, the Caribbean and other resorts.
0dupaney levels dropped drastically and large hotels like the
t'ountainbleau and the Eden Roc have gone into receivership. Even
though Miami has few hotels in comparison to Miami Beach, most
of the work force servicing the tourist industry comes from the
Latin community residing in the City of Miami.
:AS with Sll metropolitan regions, the economic base of the
Miami area consists of those economic activities for which
p'Lociuct ion exceeds the requirements of local consumption. By
receiving income from outside sources through basic economic
activities, the Miami region is able to purchase goods and
services not produced locally.
Tourism continues as a major "export" industry representing
'approximately 21 of the economic base. The hotel industry and
,other supporting services centered in the beach area benefit
••:markedly from this major economic activity. Likewise, tourism
represents a major source of income to Miami's two principal
,:transportation centers, the Port of Miami and Miami International
','airport.
Oft importance to the regional economic base is manufacturing.
ile thu manufacturing sector in the Miami region is not as
si,.anii:icant as in some other major cities, industrial growth
h of the type which minimizes not{ions iMpacts oh the
ohMent. Dade County is a rapidly expanding Manufacturing
ddiltei.' which remains dominated by garment manufacturing, ttow=.
:oVof, precision electronics, aluminum fabrication and plastics
ai=c increasingly attracted to the outlying Miami area.
Another signifiarit element of the economic base, external
hinds, originate outside the City but do not involve the pro-
dudtion of goods and services. The Miami area has a particularly
important external fund sector (9 %) due primarily to thelarge
number of retired persons whose income is derived from pensions,
governmi:nt 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 size
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
ofMiami will experience during the next ten years is a function
Ofregional employment growth conditions and the rate at
the City captures regional growth.
Due to Miami's unique development history, significant
ciz erences exist between Miami's employment mix and national
"SUPPORTIVE
DOCUMENTS
FOLLOW"
:Vat the h atoii ) ittanill=aCtutinetnplciyrileht loads d �.
tut dAbgbiies With 26`s of all jobs, followed by serVides and
4.10uriiineht with 13 % each, Retail trade industry is fourth With
a pLo :imately In comparison, the Miami area is dominated
1b�}s the trade industry (retail as well as wholesale) representing
a pro :imately 26':, of the employment base. Next in importance
is they category of service industries which together account for
Over 24'; of the County's jobs. Trade and service related employ-
ment combined account for half of the toal employment base. The
strength of these job categories underscores the importance of
tourism to th .rogional economy. 19% of the 26% (of total
employment base) of trade jobs are retail employment related.
; u;:t in importance is manufacturing with 15 . Although Dade
iunty' S manufacturing and government job categories are less
~uortant than for the nation, all other categories, conversely,
are stronger. Contract construction, in particular,. has 12% of
the region's employment, compared with 5', for the nation. This
Oi course, reflects Miami's extraordinary rate of urbanization.
In addition, tourist related employment is more significant for
the Miami region than for most other areas of the country.
::Employment within the hotel and lodging industry (as a category'
within the services heading) accounts for 4; of all jobs, com-
pared with for the nation.
Although trade continues as the leading employment category,
Vices exhibit the largest numerical growth rate, accounting
icr eases of 7,400 jobs annually. Retail and wholesale trade
is the sedonci largest growth industry, with 40600 new jobs,
olloWcd by manufacturing representing 3,800 jobs annually,
dr'oWth Within the category of non-durabel goods, particularly
apparel and textiles, constitute the strongest component of manti-
fddturing growth.
Banking, as a component of the finance, insurance and real
estate industry, has experienced rapid growth in recent years.
The importance of construction and trade activities and the rise
of manufacturing, by demanding local capital and credit has
stimulated the development of a strong regional financial center
whose significance extends throughout Latin America.
NO.d-AGRICULTURAL EMPLOYMENT BY INDUSTRY
DADE COUNTY
1960 - 1974
Industrial Category
Manufacturing 41,700 54,600 75,700 91,800
Contract Construction 23,300 23,300 32,100 43,400
T.C.P.U. 2/ 35,300 37,400 56,500 60,100
Trade 87,600 99,400 132,700 156,400
1'.I.R.E. 3/ 20,800 24,700 33,900 47,100
Services E. Miscellaneous 63,300 77,600 114,700 142,200
Government 35,600 46,600 57,600 71,100
Total 307,600 363,600 503,200 612,100
Average Annual Employment 1/
1960 1965 1970 1974
1/ Estimated on place -of -work basis.
2/ Transportation, Communication and Public Utilities.
3/ I'inanc, Insurance and Real Estate
Source: Labor Market Trends, Florida Department of Commerce.
"SUPPORTIVE
DOCUMENTS
FOLLOW"
bAbt COUgVO id0t0..._b! t 19i0
, E!,:tint4At FUNDS
1, External Investment
Property Income
'34 Transfer Payment
4, Other Labor Income
t of Total.
9%
10
12
Total External VUhd . + Aa !`i'+"�'i+!Y 3 r t s 34v
'ties/C ECONOMIC ACTIVITIES
, Tourism
Manufacturing
a. Aluminum
b. Garment
C. Printing, Publishing
d. Electronics
e. Plastics
f. Other
Total Manufacturing . ••
. Aircraft Maintenance
Wholesaling
5. Agriculture
6. Airfreight
7. Air home Office
9. Research 19
9. Other Basic Activities
Total Basic Activities 66%
ource: Research Division Metropolitan Dade County
Planning Department, Metropolitan Miami: -
A Demographic Overview, 1972
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ddofding to the 197b tensu54 there was a total of 175,506
Lis Within the City of Miami 8 This represents approximately
of the county employment. Regional employment remains ten=
ilized Within the city, since the city accounts for only 6% of
the urbanized land area and 25?, of the county population.
The bulk of employment growth in recent years has occurred
outside the City of Miami. The incorporated community of Hialeah
and unincorporated sections of Dade County have received much of
this job expansion, due to the availability of inexpensive land,
•o,•:pressway access and an expanding suburban population. From
1972 Census of Business data, the City contained over 90,000 jobs
in the primary categories of retail trade, wholesale trade, manu-
facturing and selected services (including
finance, insurance
'and real estate). This corresponded -o 32`:: of the total for
,Dade County. The city was strongest in the category of whole-
sale trade, with 377, of the total. While not included in the
1972 data, the City of Miami remains a center for government
employment. The County Courthouse and the Civic Center presently
house the bulk of this employment; however, the new Government
Center will further strengthen the central area as an employment
core.
Retail employment continues in a fairly stable position in
the development of new regional facilities,
,,'particularly the Omni development. However, outside of downtown,
the widespread strip commercial developments are undergoing
decline in market support duo primarily to increasing competition
'downtown Miami due to
"SUPPORTIVE
DOCUMENTS
FCLLCW"
u'tIying shopping centere,
Si ilarly, irianUfacturinc within
10 •city has suffered from the competition of outlying areas
offering inexpensive land and lower taxes, Retail and manufac=
turinrt, therefore► represent only marginal growth potential for
the City.
Cmployment growth for the City to 1985 is expected to
Ceed 87,000 jobs or 50T of the 1970 level. However, 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.
Miami 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 city's
total, 43', was located in downtown Miami. Several planned
Projects will undoubtedly reinforce the downtown office
public
core. Downtown and adjacent areas will benefit from improved
access afforded by the proposed rapid transit system. Downtown
10111111111=1111111111111111•111iiiimmimmo1
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bk5loyfitontisolq)bdtbd 10 ihdtoad froth its pilbdht leVOiHo
45000 jobs to betWeen 73,000 and 88,000 by 1535.1
f,t%„,t,
t•P.PLo.:;' AD R8Stbi:NC.t
I.22 c:It`z 1970
Otneit'S tii00411$ 11.1""
Whams Word w .10.1•••••••
"SUPPORTIVE
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Downtown Miami 1973-1935, An Urban Development and ZoningPiai
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ESTIMATED OFFICE A'7D NON -OFFICE E'ii'IFJY EnT •
DADE COUNTY AND CITY OF MIA!TI
Manufacturing
Contract Construction
Transportation, Communication —
and Public Utilities
Trade
Finance, Insurance and
Real Estate
Services and Miscellaneous
Government
TOTAL
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ESTIMATED EMPLOi'MEI+T:
Dade County
.. approximately 35% for 1970'
130,000
62,000
80,400
200,000
72,800
205,000
100,000
850,200
City of x4Fa::^i
As % of
Dade Co_
number
32,500
18,60:0
28,T0=a
22 R60:0
40,000:
263,30E
Source: Gladstone Associates
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NON-AGRICULTURAL EnPLO.YnE tr :BY tit« '
DARE COUNTY 1960 - 1575`
Ia:i:�strisl C3te;or;• 1960
Manufacturing
Contract Construction
T.C.P.U.2
::t.rvices & Miscellaneous
G.'vcrnmen
Total:'
1965 1970D
II
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41,700 13.6% 54,600 15.0% 75,700 15.3% 88„500
23,300 7.6% 23,300 6.4% 32,100 6..5% 39,700 6.6*
35,300 11.5% 37,400 10.3% 56,500 11.2% 58,8001 9,-7*
87,600 28.5€ 99,400 27.3% 132,700 26.5% 154,900 25.7*
20,800 6.8% 24.700 6.8% 33,900 6.5% 44,500 7.4*
63,300 20.6% 77,600 21.3% 114,700 22.7% 145,700 24.1%
35,600 11.6% 46,600 12.8% 57,600 11.3% 71,300 11.8%
307,600 100.0% (363,600 100.0% 503,200 100.0% 603,400 100.0%
1January 1975, Original Monthly Estimates
2Transportation, Communication and Public Utilities:
3Finance, Insurance and Real Estate
C'^
-.: Source: Labor Market Trends, Florida Department of Commerce, Gladstone 1ssoc1at
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In :ustries.-
Retail Trade
Wholesale Trade
:;elected Services
:Sanufacturing
TOTAL
EnVLOY:1I'.:;T P.Ilt) I: STr:IIi,ISIr:tl::lT BY SELECTED INDUSTRIES,
CITY OF 11I .: ; i i. 1D nr'.t,E COtr.I f t
1972
No. Establishments tlo. Employees
13,724
3,571
15,039
2,890
9.4,799
38,519
73,922
85,900
32,224 293,140
source: 1972 Census of Business, Gladstone Associa
"SUPPORTIVE
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FOLLOW"
City' of niand
4,659 (34%)
1,316 (37%)
5,421 (36%)
997 (3.4%)
28,639 (30%):
14,322 (371)
23,821 (32%)
25,600 (301)
11111111101111 I.IIuIIIIIuiIIuIIIIIuIIII 01111 NE u""■lion
Needs,.,
Addressed by DemonstrationPtojedt
Redent trends toward decentralization and cue,=categotitatioh
iedotal community development and manpower programs has
;Shifted the emphasis of decision -making from the federal to
•Local government officials. As a result, local government now
has a greater responsibility for the coordination and planning
ref a public
economic development program.
Another trend that supports an aggressive coordinated
'development approach between the public and private sectors is
`increasinj fc! oral categorial grant support that provides cities
with the capacity for planning and implementing a coordinated
6c6nomic development strategy.
An
2nci Example:
"SUPPORTIVE
DOCUMENTS
FOLLOW"
In ,hrJrt,
EDA's Section 302 planning program which
provided support to cities for comprehensive
planning and analysis,
77-79 Community Economics Development
Demonstration Programs - jointly funded by
THUD, Labor Department and EDA. This 10 city
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.
the federal agencies are giving local city, state
and county governments a free hand. They are encouraging inno-
vative and imaginative programs
of public and private expertise
that package an improved blend
in the development process.
However, in their efforts to improve their capacity to deliver,
cities have encountered 4 major problem areas.
They are finding that their government structures,
which have evolved gradually over the years, do not
permit a quick and coordinated response to the needs
of priv.ite c7ntCrprisLt.
1•
1
"cities Are learning that many of the tools and tech'
:iigUes of urban planning do not provide adequate
infnrrnation for developing comprehensive investment
sttdtcgies.
New approaches and urban planning tools must be
developed and implemented.
Cities are finding that traditional federal grants-
in-aid, such as IIUD's community development programs
or Labor's CETA program, are not easily integrated
into comprehensive economic development strategies.
The legislative history and administrative tradition
of these agencies have produced guidelines that
generally have inhibited the stimulation of private
sector economic activity.
Finally, cities are recognizing that they need to
build cooperation with private sector interests at
two levels - the POLICY LEVEL, where overall
strategies are discussed, reviewed and adopted,
and the IMPLEMENTATION LEVEL, where projects are
designed and financing is arranged.
IIOW ARE CITIES OVERCOMING TIIESE PROBLEM AREAS:
The trend is toward the creation of joint public/private
evelopment 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
hey.differ according to th_ir purpose, structure,
.f funding and their area of focus, which might include a
Specific or city-wide project, an economic sector, or sub -city
area.
"SUPPORTIVE
DOCUMENTS
FOLLOW"
power, source
'1�e jc}f to these institutions is that they Ond both
pb1id and private development capacity by providing a profess
sionel staff of development experts, legal powers and financial
flexibility. The flexibility enables the institution to make
dicker ,lo cisions and operate in a more businesslike fashion
than a public agency.
Problem: A Question of Accountability
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:
Can a quasi -public institution effectively represent
the public interest?
How can the public sector maintain control over a
quasi -public body?
How much control can be exercised without comprosing
the flexibility of the institution or losing private
sector support?
. What is the appropriate mix of public and private
resources?
hese aro the tough questions we hope to
tion project feasibility study, so that
Q:
won't cause problems down the road!
answer during the demonstra-
questions of accountability
III 111 III IIIIIIII I II IIIII I II IIIIIIIIIIII11Noti■
itic, 1 VO0t00
There .tre other factors that Will greatly effect the final
structure of the proposed quasi -public venture. Its character
is largely determined by.
Local Attitudes
bevelopment Priorities, and
State and Municipal Enabling Legislation
Some institutions have a more public character than others,
ecause of their powers and source of funds. 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. !!ere, 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 continue
develop in each sector as they learn to appreciate and
understand the other's needs and perspectives on the develop
Ynent process.
Example: The public sector often does not fully under-
stand the private investor's need for timely
action and long-term commitment to a project.
"SUPP0R71VE
DOCUMENTS
FOLLOW"
Ikathple: The private sector, on the other hand,
does not fully comprehend the political climate
and federal and state system in which the govern
ment operates, nor does it appreciate the need for
the public review process.
Moreover, the two sectors do not always agree on what areas
Of the City should be developed and what type of development is
feasible. Therefore, the key to a successful local economic develop-
ment effort is a meaningful partnership between the public & private
sectors.
In the case of the City of Miami, a coordinated commitment from
key City officials has already been initiated along with the work
on the City's comprehensive Development Master Plan.
support and endorsement will prove to be the major challenge facing
the development of a true partnership between the private and public
sectors directed toward strengthening and expanding the local econo-
my.
Private sector
i_
i
■
MM
MEM
i
odd Project Liaison, SuppottAnd.
Information Sources
the CS.A Demonstration Project will be administered by the
city of Miami under the overall management and guidance of the
mayor, City Commission and City Manager. Direct management will
be provided by the Office of Trade & Commerce Development and the
other development departments under the Assistant Manager for
Planning and Community Development (Richard L. Fosmoen).
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 government 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-
F- zigt )
CC LU
The
CI. '- will be accomplished through the preparation of a comprehensive and
� ��U O policy,and program implementation
'L'cohesive economic development plan, 1�
.Ca 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
W nities, 4) assist private investment and promote reinvestment, and
capitalize on the City's comparative advantage areas.
objectives of the Office of Trade & Commerce Development
IIIIII111 IIIIIIIIIII 11111IIII I•nn■mn
tie ity Of Miami'S unique potential in the areas of interhati.onal
trade, finance, and communications: The Office of Trade & Commerce
bevelopment is developing a comprehensive economic development in-
vestment strategy to execute the City's economic policy. This stra-
tegy plan will address both citywide and neighborhood economic de-
velopment issues, all major economic sectors, land packaging and
development, financial leveraging, financial inducements, industry
diversification, municipal services coordination, private and public
partnership ventures, etc.
A key component of the City's economic development
the Commercial Services Division of the Office of Trade
Development. The principal functions of the Commercial
Division are: 1) To act as the principal point of contact for busi-
serve as the City's
to remain and expand,
to attract selected
ness persons and investors with the
primary agent in assisting existing
City, 2) to
businesses
and 3) to serve as the City's agent in working
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 local,
county, state and federal government agencies. These services in-
clude information and referral services, business outreach programs,
economic research and data collection, marketing analysis, and al'l.
other related services required by industry in order to develop and
maintain a healthy local business climate.
program is
& Commerce
Services
1
•
•
MM
MM
MM
•
T....S0PORI `'
`0000.A\11S
V 00,0\li"
the CsA Demonstration Project will have the attention of
VoqdVel City management personnel. This management structure
Will assure close coordination of this project with ongoing econo-
bid development planning and policy making as well as program/project
development activities. Local level agency coordination will involve:
1) City Office of Trade & Commerce Development, 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 re-
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 delineated 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 Viable Commercial
and Industrial Areas.
This is most effective where businesses are relatively
viable, such as 17th Avenue, S.W. 8th Street, the
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 proved
effective in the Design Center and Garment Center.
Whbte the strategy has been applied to Martin Luther'
1<0.iq BouleVard, it has proved insufficient. 11ddi=
Uibhal investment in loans to private investors are
required in addition to public investment for success
Of this project.
Strengthen and Expand Miami's Economic Base by
Promoting Catalyst Developments.
Catalyst developments are new public projects which
stimulate investment. They include amenities, such
as Bicentennial Park; business attractions, such as
the Convention Center; public buildings, such as
the Gcvernmeht Center; and public improvements,
such as the proposed Mass Rapid Transit System.
These catalysts should be carefully integrated
into the existing activities of the City. Miami
has already undertaken several projects to promote
and further Downtown development. Other possibil-
ities include the development of a Trade Mart, a
Fish ?Market on the Miami River, an open-air Latin
Market and a sports complex on Virginia Rey.
Improve the Employability and Employment of Miami's
Labor Force Through Manpower Programs.
This strategy deals with the labor force. It is
aimed at improving the employability of the popula-
tion and fining appropriate jobs for their skills.
It includes job -training programs, adult -education
programs, apprenticeship programs and job -placement
programs. In addition, day-care programs provide a
means of allowing single heads of households to find
jobs and remain employed. This strategy is appropri-
ate in areas of high unemployment and low educational
attainment. The areas of highest manpower needs are
the Central Miami and portions of Model City, Edison
Park and Allapattah.
ourth economic development strategy is a combination strategy
a:iLh is the broadest and most far reaching, can produce the
eatest results, and requires the greatest public commitment.
Provide Direct Public Assistance to Promote
Redevelopment, to Attract New Businesses and
Industry, to Create ,Job Opportunities and to
Strengthen the I'a:{ Lase of the City.
'Redevelopment involves urban renewal powers of lagd
assembly, clearance and relocation, as well as 'new'
tools, financing techniques and private incentives.
a .
increment Financing currently available and
'BAR Abatement; soon to be available in the State
Of Florida. Other methods of direct public assis-
tance are commercial rehabilitation loans, small
business loans, utility loans, and provision of
public parking. Redevelopment is appropriate in
blighted, underutilized areas and where land as-
sembly is difficult. This strategy will create
opportunities for furthering other development
objectives, such as housing near employment centers,
and new industrial parks. This strategy can be most
effectively applied in many of the areas in or near
Downtown, including the proposed New -Town -in -Town,
the Miami Riverfront, portions of MLK Boulevard, and
Grand Avenue, the underutilized F.E.C. yards near
the Julia Tuttle Causeway and other selected portions
of the City. •
It is anticipated that the CSA Demonstration Project will
provide the basis for a Financial Assistance Program embracing
a comprehensive coordination strategy and the development of
an organizational structure which will institutionalize the
local economic development process and thereby maximize the
impact of available resources.
"SUPPORTIVE
DOCUMENTS
FOLLOW"
78,•665
tt 0,54t.00,0P,Oefit s f r9m _ CO
0.00nst,ration Project
roposed economic development strategies Will be oriented
tic Ward maximizing economic benefits throughout the city, rather
thath Concontratiuq in areas designated as "Special Impact Areas."
This approach takes into full account existing community devel-
opment activities, which will hopefully be identified, supported
and enhanced as a result of the recommendations of the Demonstra-
tion Project,
To the City as a whole.
1: The uevelopment of a Financial Assistance Program
and an organizational strategy for its implementa-
tion as a mechanism to address city-wide micro -
level (eg., neighborhood) economic development
concerns, as a complement to a macro -level (e.g.,
City-wide) overall economic development plan,
policy, and program strategy currently under
development by the City Office of Trade 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 base and tax base
of the City of Miami.
o low income communities within the City.
Analysis of the capital needs of small and minority -
owned businesses, identification of key problems,
and developm:nt of a comprehensive Financial
Assistance Program emphasizing: a) the coordina-
tion of existing financial resources, b) improving
access to available high -risk capital resources
for investment in declining neighborhoods, and
c) developing new financial resources or tools for
economic development to benefit low-income communi-
ties.
"SUPPORTIVE
DOCUMENTS
FuLLOW"
8 665
fi-
AA
ommommmoom
. ,
tif1{,j't1,01raM
f§0 Is Specification of Needs to be Addressed
'INWtl Determine debt and equity needs of bUtineSteg
in the high risk category.
TaSk 2 Identify current sources of high risk venture
capital.
Identify typical development projects needed
in city's economic development target areas;
i.e., neighborhood commercial redevelopment,
shopping malls, etc.
haSe'.I.I. Inventory of Government Resources
.Task 1 Identify all federal, state, and local sources
of business loans, 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 raise debt and equity capital from the public
directly or from public bodies such as the state
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.
naSeIII. Define Financial and Development Assistance Needs
Task 1 Using the information from Phase I, Task 3, identify
the kinds of clients as well as the expectations
of private developers and techniques to coordinate
and assist the development objectives of the two
groups.
"SUPPORTIVE
DOCUMENTS
FC)L. L ow"
on,
'r t c,ina ted Bene f its froth c S
Demonstration Project
dpbsocl edonomic development strategies will be briehted
bt��irc matimizing economic benefits throughout the city, rather
• th an
�rhiJ
COnctntrating in areas designated as "Special Impact Areas,"
approach takes into full account existing community level-
opinent activities, which will hopefully be identified, supported
and enhanced as a result of the recommendations of the Demonstra-
tion Project.
A To the City as a whole.
The development of a Financial Assistance Program
• and an organizational strategy for its implementa-
tion as a mechanism to address city-wide micro -
level (eg., neighborhood) economic development
concerns, as a complement to a macro -level (e.g.,
City-wide) overall economic development plan,
policy, and program strategy currently under
development by the City Office of Trade and
Commerce Development.
2. CSi\ 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 base and tax base
of the City of Miami.
low income communities within the City.
Analysis of the capital needs of small and minority -
owned businesses, identification of key problems,
and development of a comprehensive Financial
Assistance Program emphasizing: a) the coordina-
tion of existing financial resources, b) improving
access to available high -risk capital resources
for investment in declining neighborhoods, and
c) developing new financial resources or tools for
economic development to benefit low-income communi-
ties.
"SUPPORTIVE
DOCUMENTS
F6LLOV\i"
he de etopment of a Financial Assistance hrogratt
which would encourage financing for the establish
inent of business enterprises which would be fully
or partially owned by low-income area residents
and employ low-income area residents:
IIII■1ii111 i inimiii inum
8podifidation of Needs to be Addressed
Task 1 Determine debt and equity needs of businettet
in the high risk category.
Task 2 Identify current sources of high risk Venture
caoi tal.
_Task 3 Identify typical development projects needed
in city's economic development target areas;
i.e., neighborhood commercial redevelopment,
shopping malls, etc.
Chase II Inventory of Government Resources
Task 1 Identify all federal, state, and local sources
of business loans, 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 raise debt and equity capital from the public
directly or from public bodies such as the state
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
Task 1
Using the information from Phase I, Task 3, identify
the kinds of clients as well as the expectations
of private developers and techniques to coordinate
and assist the development objectives of the two
groups.
"SUPPORTIVE - EVE
DOCUMENTS
1 o ;,,, Low" 1 "
I1e111II1111I111I111II111■IIo■
in
■
wited Pudg t
netelitirddg
CSt Craht,
City of Miami
Cash WOO
In -Kind 15.,.009
Total
tstpenditures
Consulting Fees & Services
In -hind Contribution
Assistant City Manager
(Richard L. Fosmoen)
Director, Trade & Commerce
(Julio A. Castano)
Assistant Director, Trade
& Commerce (Tony Crapp)
Law Department
Project Audit
Finance Department
Total
$ 2,500
3,000
6,000
2,000
500
1,000
006
30,000
$60,000
$45,000-
$15,000
$60,000
IIIIIIIIIII II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII miiun
Work . P.roctafin
h` sh ,t, Specification of Needs to be Addressed
'ash: 1 Determine debt and equity needs of businesses
in the high risk category.
Ta_sk 2 Identify current sources of high risk Venture
capital.
Task 3 Identify typical development projects needed
in city's economic development target areas;
i.e., neighborhood commercial redevelopment;
shopping malls, etc.
aSt II. Inventory of Government Resources
Task 1 Identify all federal, state, and local sources
of business loans, 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 raise debt and equity capital from the public
directly or from public bodies such as the state
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.
lase IIi. Define Financial and Development Assistance Needs
Task 1 Using the information from Phase I, Task 3, identify
the kinds of clients as well as the expectations
of private developers and techniques to coordinate
and assist the development objectives of the two
groups.
'n'SUPPORTIVE
QCUMENT
r-. ., , S
AAA
■I II I III IIIIIIIII IIIII IIIIIIIII IDI 111111 IIIIIII III I III I I III III I I II I II IIIIIII 0011 IIuIU111111IUi l
hate t'V, befi ne Legal Charter of Development. Corporation
Thsk j. Using the information from Phases I and II, draw
�.....
up a legal charter which most directly responds
to the needs identified in Phase I while maximizy
ing the utilization of funds and authority identified
in Phase II.
between the
Task 2 govene he rnment andking the Development Corporation.
pity
gov�.rCorporation.
Chase V, Organization and Personnel
Task 1 Develop an organization 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 operatic
2 Identify source of operating funds.
Task 3 Establish agenda of actions for first 90"j 1.20
180 days of operation.
Task
$ 2,500
3,000
6,000
2,000
500
1,000
■
■
i
•
ReAOOCOS
C$A Grant
City of Miami
Cash
In -Kind
Total
ttpenditures
t P.Otd.._ nude dt
$ . t000
-5f .000
Consulting Fees & Services
In -Kind Contribution
Assistant City Manager
(Richard L. Fosmoen)
Director, Trade & Commerce
(Julio A. Castano)
Assistant Director, Trade
& Commerce (Tony Crapp)
Law Department
Project Audit
Finance Department
Total
$s0_, 000
$60,000
$45,000
$15,000
$60,000