HomeMy WebLinkAboutII.3. Economic Impact Study and Environmental StudyMIAMI-DADE COUNTY
CHILDREN'S COURTHOUSE
Economic Impact Analysis
Submitted to
City of Miami
Prepared by:
SHARPTON, BRUNSON & COMPANY, P.A.
One Southeast Third Avenue
Suite 2100
Miami, Florida 33131
(305) 374-1574
MIAMI-DADE COUNTY
CHILDREN'S COURTHOUSE
TABLE OF CONTENTS
PAGE(S)
THE PROJECT OVERVIEW 1
EXECUTIVE SUMMARY
Summary of Benefits 2
OBJECTIVES AND DEFINITIONS
Objectives 4
Definition of Economic and Tax Impact 4
Direct and Indirect Effects 4
Measures of Economic Impact 5
Description of Results 6
DISCUSSION OF THE RESULTS BY ECONOMIC INDICATORS
Impact Indicators 7
Results of Indicators 7
Impact of Construction 7
Impact of Ongoing Operations 8
Analysis by Economic Indicators 8
Employment 8
Wages 9
Output 9
EXHIBITS
Exhibit I: Summary of Economic Impact 11
PROJECT OVERVIEW
MIAMI-DADE COUNTY
CHILDREN'S COURTHOUSE
Miami -Dade County plans to
construct a courthouse and
administration building designed
to accommodate the concept of a
"Unified Family Court" (the
Project). The Project is located
across the street from the Steven
P. Clark Government Center.
The site address is 112 NW 3rd
Street. It is bounded by N.W. 3rd
Street, N.W. 4th Street, N.W. 2nd
Avenue and the Metro Rail Right
of Way. The site dimensions are
approximately 466 feet long by
300 feet wide (3.387 acres).
The Project will include a
375,000 square foot, 14 story
building containing 18
courtrooms with offices for
complimentary staff. There will
be 98 parking spaces, principally
for the judiciary with additional
parking for the Police
Department and the County
Transit Department.
A "collegiate" type of
architectural design has been
implemented to house all judges
and magistrates on the top floors
and courtrooms on separate
floors.
Complimentary
personnel will
include staff
from the
Administrative
Office of the
Courts (AOC),
State Attorney's
Office (SA), Public Defender
(PD), Guardian
At Litem (GAL).
Clerk of the
Courts (COC),
Department of
Juvenile Justice
(DJJ), Police Department
(MDPD), Department
of Children
and Families
(DCF), Public
Schools (MDPS),
Our Kids,
Foster Care
Review, Drug
Testing, and
Court Care
(YWCA).
This new facility is needed in
order to replace the existing
inefficient outdated building. The
Courthouse will accommodate
the evolving divisions of
Dependency and Delinquency,
and through innovative planning
and design, incorporate the
mandated implementation of a
Unified Family Court for the 11th
Judicial Circuit Court of Florida.
Summary of Benefits
Miami Dade County Children's
Courthouse Building (the Project) will
bring considerable economic benefits
to the city of Miami (the City). This
section summarizes the impact of the
project on employment, public sector
revenues and other economic
benefits as a result of the
development.
Employment
Employment considerations include
the direct employment resulting from
the Project. Average developmental
construction phase employment will
be for approximately 336 employees
and the Project management is
expected to employ 25 people for on-
going operation of the facilities.
Wages
To compute the wages associated
with the new employment we started
with budgeted data directly related to
the developmental and operational
phases of the Project. Total direct
and indirect impacts expected from
wages associated with the new
development approximate the
following:
One Time $79,544,922
Annual $ 1,334,232
Output
The estimate of total economic
impact is measured by total
output. This analysis measures
the economic impact of
developmental costs and ongoing,
operational expenditures. To
determine the effect of respending
within the City, we utilized a
multiplier to compute total direct
and indirect benefits. Total output
expected to be generated, as a
result of the developmental and
operational phases of the Project
will approximate the following:
One Time $ 250,125,831
Annual $ 2,424,168
Summary of Benefits
Significant Community Benefits:
Jobs
Wages
Economic Activity
Employees' Spending Impacting Local Businesses:
➢ Food
➢ Recreation/Entertainment
➢ Transportation
The following table and charts summarize the economic impact of the
Miami -Dade County Children's Courthouse Building.
CONSTRUCTION
PERIOD
IMPACT
Economic Activity Stimulated
Output $ 250,125,831
Wages 78,544,922
$ 328,670,753
Jobs Created
336
ANNUAL
RECURRING
$ 2,424,168
1.334.232
$ 3,758,400
25
3
Objectives And Definitions
Objectives
The objective of this analysis is to provide
information on the various benefits
created by the Project and to prepare an
estimate of such benefits to the City.
Our analysis is based on an economic
model, which estimates economic
impacts of various projects on a
designated area. The model is
specifically tailored to the City of Miami
(the City).
Definition of The Economic Impact
The construction and subsequent
operation of the Project will create
important benefits within the City. These
benefits include new income, new jobs
and new economic activity impacting
upon every sector of the local economy.
Moreover, through the multiplier effect of
responding and reinvesting, indirect
economic benefits are added to the direct
benefits brought about by initial
construction expenditures, the
expenditures from ongoing operations.
Direct and Indirect Effects
The total economic impact of public and
private projects and policies on a region
does not end with the impact from the
initial construction expenditures; the
continued benefits to the local economy
must also be considered. Income to firms
furnishing construction materials and
services is subsequently converted into
employee salaries, material purchases,
investment in plant and equipment,
savings, profits, purchases of services,
and a variety of other economic activities.
Income to laborers is subsequently.
respent for purchasing of food,
housing, transportation, education,
entertainment, medical and dental
services, clothing, personal services,
and a wide variety of other goods
and services.
Furthermore, income to the
governmental unit is respent as
salaries, purchases, and support of
a variety of programs, including
education, transportation, and social
services. In turn, individuals, firms,
and governments furnishing these
goods and services again spend
their income for more ,purchases,
salaries, investments, and savings.
In this manner, indirect benefits
result each time the initial sum is
respent, and the additional sum
available in the local economy
induces further job creation,
business development and savings.
Quantification of these indirect
benefits has been the object of
considerable economic study.
Because economic relationships are
so complex in our modern society,
no single area or political unit is a
completely self-contained economic
unit. Therefore, purchases from
other areas and political units are
necessary, and goods and services
are exported in return.
As purchases are made from other
units, some of the benefits of
economic responding are lost to the
local economy. Ultimately, a smaller
and smaller portion of the initial sum
would remain, until, after several
rounds of responding, an
insignificant sum is left.
4
Objectives And Definitions
The indirect effects can be viewed as
a set of "ripples" in the economy.
Indirect, like direct, resources require
labor, materials, equipment and
services for their production to induce
further job creation and spending of
wages.
The "ripple" of the indirect effect
multiplies the original impact of the
purchase. The common measure of
the magnitude of the "ripple" effect is
called a multiplier. A multiplier
measures the total magnitude of the
impact on each particular economic
indicator as a multiple of the initial,
direct effect. For instance, a
multiplier of "1" would signify no
"ripple" effects as the total impact is 1
times the initial impact, while a
multiplier of "2" would imply that the
total impact is 2 times the direct
effect.
The actual magnitude of a multiplier
depends on the likelihood the goods
and services purchased in a region
would be produced in, or provided
from the region.
The model we used to estimate the
total economic impact incorporates a
multiplier developed by utilizing past
consumption and production patterns
in the City.
Measures of Economic Impact
Various measures can be used to
indicate the impact of a policy or
project on a region. Specifically,
for this study, they are the
increases in local employment,
wages, tax revenue and output that
result. Definitions of these
measures are as follows:
Employment is measured full-time
equivalent jobs.
Wa es include wages, salaries,
and proprietor's income only. They
may include non -wage
compensation, such as pensions,
insurance, and other fringe
benefits. Wages are assumed to
be expended by households in the
area at which the wage-earner
works.
Direct expenditures include those
sums expended for land
acquisition, site preparation and all
hard and soft costs associated with
a project.
Indirect expenditures are those
sums expended within the local
economy as a result of the "ripple"
effect described earlier.
Output describes total economic
activity, and is essentially
equivalent to the sum of direct and
indirect expenditures (exclusive of
wages and taxes).
5
M Objectives And Definitions
Description of Results
For the purpose of describing the total
economic benefits of the Project, the
related expenditures and economic
activity stimulated have been broken
into two categories:
Developmental
Annual Recurring
Developmental expenditures include
those expenditures related to the design
and construction phase of the Project.
Annual recurring activities stimulated
are those expenditures incurred in
connection with the ongoing operation
of the Project.
Discussion Of The Results By Economic
-� Indicators
Impact Indicators
We measured the Project's impact on
four commonly used indicators of
economic activity.
Those indicators are:
Jobs
Wages
Total output
Results of Indicators
Exhibit I details the Project's direct and
indirect impact on the above economic
indicators for Miami. A summary of
such impact follows:
DEVELOPMENT
(One Time) OUTPUT
Direct $ 133,102,294
Indirect 117,023,537
ANNUAL
Operational:
Direct
Indirect
$ 250,125,831
$ 1,290,000
1,134,168
$ 2,424,168
The economic indicator most commonly
measured, and publicly reported on to
gauge the economic impact of a public
project is output. The impact of a
project on the indicator output is often
referred to as the project's economic
impact.
Impact of Construction
The site preparation and construction
expenditures, including soft costs and
impact fees are estimated at $175
million. Such activity will create
approximately 336 new full time
equivalent jobs and employ a maximum
of 411 workers during peak periods.
The workers will earn approximately
$41.8 million in direct wages.
WAGES EMPLOYMENT
$ 41, 797, 000 336
36,747,922
$ 78,544,922 336
$ 710,000 25
624,232
$ 1,334,232 25
7
Discussion Of The Results By Economic
Indicators
Impact of Ongoing Operations
As a result of the on-going operation and
maintenance of the Project, Miami will
gain approximately 25 new, permanent,
full-time equivalent jobs. The wages of the
workers who obtain these positions will
provide an impact of approximately $1.3
thousand annually.
The total expenditures for the Project's
operations, will provide a new permanent
impact of $2.4 million annually to the
City's economy. This impact consists of
the direct expenditures from the
maintenance, security and day-to-day
operation of the Project, and the multiplied
effects of such spending thus creating
indirect benefits.
Analysis by Economic Indicators
Our analysis of the economic and tax
benefits of the Project was done by each
major phase of the Project. We identified
the major phases to be developmental
and operational.
This analysis determines the economic
benefits to the City by identifying such
benefits for each of the phases.
The effects on economic indicators
used to measure benefits
(employment, wages, output) were
computed for each phase.
Employment
Employment is one of the most
important economic benefits of the
Project. It is one of the most
accessible and direct benefits for the
City's residents and is a primary
means by which developmental,
operational and maintenance
expenditures generate indirect
economic benefits. This employment
is derived from on-going operations
of the Project. Further employment is
generated off-site by the expenditures
of employees of the Project and
operations conducted in the Project,
at area businesses.
As can be seen in Exhibit I, total
short-term (developmental)
employment will average 336
employees over a fourteen month
period and a total on-going
employment will average 25.
The total on-going positions can be
summarized as follows:
Management
Security
Maintenance/Facilities
Discussion Of The Results By Economic
Indicators
................. .
Wages
The analysis deemed wages are a direct
by-product of employment. As discussed
in the above section, both on-site and
off-site jobs are created. There were
both temporary and permanent in nature.
To compute the wages associated with
the new employment we started with
budgeted data directly related to the
developmental and operational phases of
the Project.
Employment, such as construction
related employment, was obtained
directly from construction estimates.
These numbers were tested for
reasonableness.
Output
The output generated, as a result of the
development and operations of the
Project, is caused by the following type
of expenditures:
Development costs expended in the
City (100%)
Annual operational expenditures
New spending in the locality by
employees of operations conducted
in the Project
To incorporate the impact of dollars
being respent and/or reinvested in the
City, a multiplier was applied to total
direct output. A multiplier of 1.8792
was used to determine total direct
and indirect output created by the
Project.
This multiplier indicates that for every
$100 spent in Miami, another $187.92
will be respent or reinvested in Miami.
This multiplier was obtained from the
Dade City Planning Department.
Direct output from the developmental
phase of the Project is primarily a
result of developer costs. These
costs include land acquisition, site
preparation and soft and hard costs
relating to the Project's construction.
To determine the total output we
determined what development costs
were expected to be or had been
spent in Miami.
Total direct output during the
development phase is $133 million.
Total indirect output created by the
direct respending in Miami is $117
million. Thus total Miami Output from
the development of the Project is
$250 million.
The final component of output results
from the direct operating expenditures
of the Project, and the indirect
benefits created as a result of the
multiplier effect on direct output.
E
Discussion Of The Results By Economic
Indicators
Output (Contd.)
The Developer provided us with an
annual operating budget for the Project.
An overall assumption was made that
all expenditures would be spent initially
in the City.
The total operating expenditures
incorporate all estimated expenses of
the ongoing operation of the Project.
To incorporate the potential respending
and reinvesting in Miami, the multiplier
effect was measured. By applying a
multiplier of 1.8792 to the total direct
output from operating expenditures, we
determined total output (direct and
indirect) from ongoing operating
expenditures.
10
Exhibit List
Exhibit I Summary of Economic Impact
Exhibit -
Summary of Economic Impact
DIRECT
DEVELOPMENTAL
OPERATIONAL
TOTAL DIRECT
INDIRECT
DEVELOPMENTAL
OPERATIONAL
TOTAL INDIRECT
TOTAL BENEFITS
TOTAL DEVELOPMENTAL
TOTAL OPERATIONAL
133,102,294
1,290,000
$ 41,797,000 336
710,000 25
134,392,294 42,507,000 361
117,023,537
1,134,168
36,747,922
624,232
118,157,705 37,372,154 -
$ 252,549,999 $ 79,879,154 361
$ 250,125,831
2,424,168
$ 78,544,922 336
1,334,232 25
TOTAL BENEFITS $ 252,549,999 $ 79,879,154 361
EN ( 1IbFEEKIN (�
October 20, 2008
RE: Miami -Dade County Children's Courthouse
112 NW 3"d Street, Miami, Florida
Environmental Impact Analysis Statement (EIAS)
To Whom It May Concern:
834 Inman Village Parkway
Suite 230
Atlanta GA 30307
404.806.2018
404.806.2019 (fax)
BVM Engineering, Inc. has determined, after review of the Miami -Dade County Children's Courthouse
design documents provided to us by Hellmuth, Obata & Kassabaum, Inc. (Architect), that the Miami -
Dade County Children's Courthouse will have the following environmental impact on the immediate
neighborhood. Based on the project design and potential impact of the development, this EIAS takes
into consideration the following environmental issues: the economy, public services, and the
environment within the immediate neighborhood.
The economic impact of this project is detailed in a report completed by Sharpton, Brunson &
Company. In summary the report states that the project will have a positive economic impact on The
City of Miami. Please refer to the economic impact report for further analysis.
A transportation study, dated October 14, 2008, has been complied by Richard Garcia & Associates.
In summary the report states that the existing roadway capacity around the project is sufficient for the
trips that will be generated.
A site utility study, dated October 2008, has been completed by EAC Consulting, Inc. and is the result
of extensive research and on site exploration. Existing utilities will be relocated and replaced
supplementing the infrastructure in and around the project site.
Introduction
The Miami -Dade County Children's Courthouse is being built to address an incredible need for safe
and efficient facilities that provide access to justice for the children of Miami. This project is sustainable
in both its impact on the environment and in its relationship with the community. It is located as an
integral part of the Miami -Dade Government complex adjacent to other courthouses and public
buildings. The project has been designed as a piece of signature architecture that is set within public
open space that completes the park that runs south to NW 1st Street.
The building will be located at 112 NW 3'd Street in downtown Miami, Florida. The 3.80 acre site will
contain the 14 -story, 371,500 square foot, Miami -Dade County Children's Courthouse, as well as
surface parking for judges, police, and Miami -Dade Transit vehicles. The building contains 18
courtrooms for Juvenile Dependency, Juvenile Delinquency, and Unified Family Courts. The building
also contains the agencies that drive the judicial process, as well as providing support to children and
families, all in one public building. These agencies are: Judges, Court Administration and Case
Management, State Attorney, Public Defender, Guardian Ad Lltem, The Clerk of the Court, Department
of Juvenile Justice, Drug Court Programs, Department of Children and Families, Foster Care Review,
Miami -Dade Public Schools, and YWCA Child Care.
The project has a design goal, as stated by the County, to achieve a LEED-NC Silver rating. Given this
goal, consideration has been given during the design to minimizing the building's impact on the site,
Miami -Dade County Children's Courthouse October 20, 2008
Environmental Impact Analysis Statement (EIAS) Page 2
reducing water usage, reducing energy usage, using recycled and regional materials, and improving
indoor environmental quality.
Site Impact
The site for this building is part of the government center DRI. It uses a site which is construed as urban
infill, increasing the density of development in this area utilizing the existing infrastructure and building
on adjacencies with other courts and government buildings. The courthouse is located one block north
of the Government Center Metro station, three blocks south of the Overtown station, and is served
directly by a bus stop on the west site boundary at NW 2"d Avenue, thereby providing multiple options
for public transportation. This building is located within '/ mile of ten basic services which, along with
the proximity to public transportation, creates the opportunity for significant reductions in vehicle traffic
and associated CO2 emissions.
In addition to the public transportation access, bicycle racks are being provided adjacent to the building
to provide on-site parking for cyclists. Showers are provided within the building at the first floor for any
of the staff to use, which help to make cycling a viable commute altemative. Again, these measures
help reduce vehicle traffic and associated CO2 emissions.
Parking is only provided on site for limited specific uses, including judges, police, and Miami -Dade
Transit vehicles. The surface lot for secure parking will be screened with a masonry wall with creeping
plants. One of the walls (facing the entry) will be used as the location for a Public Art installation.
Parking is available for building users, both staff & public, in existing parking garages or surface lots
within two blocks of the project site.
The site itself will undergo hazardous material remediation prior to the start of building construction
removing the contaminants left from an underground fuel tank. The source removal plan was
submitted to DERM on September 19th, 2008 after extensive investigation and documentation.
Stormwater run-off from the Miami -Dade County Children's Courthouse will be contained on site. The
run-off will be collected through a mature of catch basin inlets, trench drains and yard drains which are
interconnected through a series of solid storm pipes composed of high density polyethylene (HDPE).
No exfiitration trenches are proposed. The stormwater run-off will eventually be piped to a continuous
deflection separation (CDS) unit to separate debris, oil and grease. Finally the run-off will be
discharged to an underground source of non -drinking water (USDW) aquifer through a system of a
stormwater injection wells.
The landscape and hardscape design for the site incorporates plaza and walkway areas which promote
sitting, socializing, meeting and access from nearby transit and public buildings. Approaches from the
Metro stations, bus stops, and from the SPCC are accommodated by accessible pathways crossing
the site and oriented to the building entry. The plaza on the south side is a visual and literal link to the
existing park that is located to the west of the SPCC and respects the original master plan for this area.
The plazas and walkways are shaded by native trees. The paving material is light in color to minimize
the heat island effect. There will be two installations coordinated by the County Art in Public Places
(AIPP) program within the plaza. A portion of the building roof (over the lobby) will be constructed as a
"green roof utilizing a light mantel of soil and planting to provide insulation to the building and to extend
the useful life of the roof. The main roof will be an insulated reflective surfaced roof material which will
reduce the heat island effect and improve energy efficiency.
Water Usage
The majority of the planting is native and/or does not have high watering requirements, which help to
reduce the water use for irrigation by 50%. Shrubs and groundcovers are predominant on the ground
plane and the use of grass is limited to minimize irrigation requirements. Water use in the building will
be reduced by 30% through the use of ultra low -flow plumbing fixtures in restrooms and showers,
thereby requiring less impact on the City infrastructure.
Miami -Dade County Children's Courthouse October 20, 2008
Environmental Impact Analysis Statement (EIAS) Page 3
Energy Usage
The orientation of the building has been carefully studied and modeled. All facades of the building have
been evaluated for material use, energy efficiency and appearance. A balance of daylight, cooling
loads, and security have influenced the design. Sun shades have been added to help control early
morning sun, a mostly opaque elevation faces west. Glazing is maximized on the north elevation to
allow daylight into the office space and improve working conditions. Outside air coming into the building
is going to be monitored to improve the occupants comfort level. In addition the systems are designed
to meet AHSRAE standards for thermal comfort.
The building design has gone through numerous energy model studies to fine tune the efficiency of the
systems. The operational savings equate to 14-20% better than the current code requirement
(substantially more than that over existing government buildings). The building will be connected to the
County Central Utility plant for chilled water taking advantage of the efficiencies of that equipment. The
engineering systems will be commissioned by an independent commissioning agent to optimize the
efficiency creating a more comfortable environment for staff and public within the building as well as
driving down energy use.
Lighting within the building will be controlled by occupancy and daylight sensors to reduce electricity
use. Public spaces will be naturally daylight for most of the time the building is open. Daylight has been
shown to improve the quality of the indoor environment for all users of the space, specifically in this
case reducing stress amongst the participants and increasing productivity of the employees.
Building Materials
Materials, both interior and exterior have been selected to be durable, dignified and cost effective.
Where possible, local materials and systems have been specified reducing the amount of
transportation required and providing more local employment opportunities. Recycled materials, as well
as materials from rapidly renewable sources, have also been specified. The building contractor will also
be required to produce and follow a construction waste management plan to divert more than 50% of
construction waste away from landfills.
Indoor Environmental Quality
The building will utilize low VOC emitting paints, adhesives, and carpets to improve indoor air quality.
In addition, the contractor will be required to follow a construction phase Indoor Air Quality plan to make
sure that construction debris does not negatively impact the finished building.
As the owner and operator of the building, the County has committed to the efficient and
environmentally sensitive management of this public asset. It will be providing recycling within the
building. Green cleaning procedures will be implemented and a Green education program will be part
of the permanent and temporary signage within the public spaces.
Conclusion
In regard to all the environmental impacts associated with this project, it is my professional opinion that
the proposed Miami -Dade County Children's Courthouse is appropriate and will have a favorable
impact on the public service, economy, and environment within the immediate neighborhood.
Sincerely,
Z4—p- ��
Timothy D. Williamson, AIA, LEED AP
BVM Engineering, Inc.
404.806.2018