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HomeMy WebLinkAboutIII. Tab 4. Economic Impact Study & Environmental StudyCQnsuffcon, Inc. March 26, 2010 Mr. Frank Steslow, Chief Operating Officer Miami Science Museum 3280 South Miami Avenue Miami, FL 33129 By Email: fsteslow@miamisci.org Re: Economic Impacts of the New Miami Science Museum Dear Mr. Steslow: ConsultEcon, Inc. has prepared an analysis of the economic and fiscal benefits to the City of Miami of the Miami Science Museum's new facility in Museum Park. This letter summarizes the findings of our analysis. FISCAL BENEFITS The term "fiscal benefits" refers to the positive impact of the new Miami Science Museum on the finances of the City of Miami. The benefits that it will provide to the City will include initial non- recurring benefits from project construction and once open, recurring benefits from ongoing operations. Non -Recurring Benefits The new Miami Science Museum will be developed by a not-for-profit organization. The project will be located on a site owned by the City of Miami. It has been defined by the City of Miami Commission as a "project of a government agency" and it is anticipated that it will receive a waiver from permit and impact fees. However, in the event the waiver is not granted, the following fees discussed below would be paid. Building Permit Fees The City of Miami Typically charges $0.25 building permit fees per square foot for non-residential projects with the fee applying to all space within the structure including its structured parking. The new Miami Science Museum facility will contain 175,000 square feet of enclosed space (not including structured parking and outdoor areas), that would result in a $43,750 building permit fee if such fees are imposed. Additional fees would be paid by the project's roofing, electrical, plumbing, mechanical and elevator contractors; however, the plans for the project are not sufficiently formulated to estimate these fees at this time. Finally, the project will pay a solid waste surcharge of $10,000. Impact Fees Typically, non-residential projects constructed within the City of Miami are required to pay impact fees for police, fire and general services.. In addition, supplemental fees are applicable for those projects located within the portion of the City where development activity is governed by the Phone: +1 (617) 547-0100 • Fax: +1 (617) 547-0102 • 545 Concord Avenue, Suite 210, Cambridge, MA 02138 U.S.A. www.consultecon.com • info@consultecon.com onsultEcon, Inc. Downtown Miami Development of Regional Impact. The amounts of these and/or any other applicable impact fees have not established. Recurring Benefits Ad Valorem Taxes As a not-for-profit entity, Miami Science Museum would not be required to pay ad valorem taxes on its new facility to the City of Miami, Miami -Dade County or the Miami -Dade County Public School District. Non -Ad Valorem Revenues The City of Miami collects utility taxes and franchise fees from the providers of telephone, electric and other services based on their revenues. Upon application, non-profit organizations are exempt from utility service and franchise fees and utility excise taxes. To the extent that additional taxes imposed to cover the cost of operating the City of Miami Storm -Water Management System would apply, the amount collected would be dependent on the amount of these services used. The amount to be used cannot be quantified at this time. The City will also collect parking surcharges from museum visitors and museum staff while working that park a vehicle within a City facility or at a city parking meter. Many of the visitors to the new Miami Science Museum will make expenditures for food, beverage retail goods and overnight accommodations in conjunction with their visit. These would be taxable purchases and the City of Miami will receive a portion of the total tax proceeds per established State and County revenue sharing formulas. These tax types include: Tourist Development Taxes, Sales and Use Tax, Motor Fuel Tax, Cigarette Tax. Where these purchases are made, and the type of establishment, will affect the amount of revenue that flows to the City of Miami. Data regarding point of purchase and type of establishment (per the tax laws) to support an analysis of this type is not available. Therefore, an estimate of the amount is not made for this report. These taxes in general would occur due to the increased economic activity generated due to the new Miami Science Museum. ECONOMIC The term "economic benefits" relates to the positive impact that development of the new Miami Science Museum facility will have on the City's economy as a whole and is not specific to its finances. The project will generate non-recurring economic benefits during construction and annual recurring economic benefits from operations. Non -Recurring Benefits It is estimated that approximately 63 percent of the $300 million development budget for the new Miami Science Museum will be spent in the City of Miami. This will produce an overall economic impact of $489 million in expenditures (including direct, indirect and induced economic activity), including $305 million due to hard cost expenditures and $184 million due to soft cost expenditures. These estimates include multiplier effects. 2 ConsultEc®n, Inc. Recurring Benefits Visitor Expenditures and Miami Science Museum Operation The Miami Science Museum estimates that 550,000 people will visit its new facility in a stabilized year of operation, which is the basis for this analysis. Based on on-site and off-site spending by visitors to the new Miami Science Museum as part of their visit to the Museum and the Museum's annual gross expenditures of S 19 million, including costs of goods sold, the total direct, indirect and induced annual economic impact would be $91 million in expenditures. Employment A total of 155 people will be employed at the Miami Science Museum's new facility when it is completed, including 93 full-time employees. The total direct, indirect and induced effects of visitor spending and the Museum's operation would result in 1,058 Rill -time and part-time jobs and earnings of $40 million in the City of Miami. SUMMARY Beyond its potential to create direct and multiplier effects on the City of Miami, other local economies and the State, the new Miami Science Museum will contribute to the expanded profile of Miami as a visitor destination. The new Miami Science Museum has the potential to be a stimulus to tourism revenues, making a significant contribution in expanding the City of Miami's overall tourism economy while educating, inspiring and entertaining both its residents and visitors. R98pectfully submitted, A W Robert E. Brais Vice President Elena Kazlas Principal 3 onsultEcon, Inc. March 30, 2010 v Table I Estimated Construction Period Impacts in Miami -Dade County - Hard Costs New Miami Science Museum Estint aIedDeve IopineitIExpenditures Ir Estimated Soft & Owner's Costs E.cpenditures For Museum within Miami Dade Count), rr Estimated Avg. Annual Architechue and Engineering Related Wages& Overhead 31 Direct Person -)'ears of Construction Related Employment Applicable M ultipliers, M !ami -Dade County $300,000,000 $74,120.000 $79.500 559 Multipliers 4 Expenditures Earnings 2.0932 0.8893 Employment 5' 17.5000 Total Direct, Indirect & Induced 61 Expenditures Earnings Ern plOemenI Total Indirect and Induced Impacts in the Al itintade County S155,148,636 $65,915,679 1,288 Plus Total DireelImpacts $74,120,000 $35,552,400 559 Estimated Total Economic Impacts in the M iami-Dade County S229,268i636 S101,468,079 1,847 11 Total development o{nese Miami Science M useum, including hard and soft costs, is estimated 10 be 5300 million, based on estimates prepared by M iami Science Museum. This analysis includes portion ofthe total soft and owners costs ofSi00 million spent in the M iami-Dade County associated with the development ofthe M useum. 21 Over 74% of soft and owner's costs assumed to be made in M iami-Dade County. 3; Architecture and engineering wages and overhead are estimated to equal 75% oftolal soft and owner's costs. A II workers are assumed to have 25% overhead costs in addition to annualized salary. Average annual 2008 mean architecture and engineering wages ofS63,190 for M iami-Fort Lauderdale -M iami Beach, FL metropolitan statistical area are based on data from the Bureau ofLabof Statistics. Adjusted for inflation (0.7% )to February 2010 dollars results in a wage of S63,612. 0 See text fordiscussion of multipliers. Multipliers from custom run ofthe Minnesota IM PLAN T. Group, Inc. 5r In person years of employment per million dollars of expenditures, multipliers are based on the 2008 value of the dollar adjusted to February 2010 by inflation. 61 The total effects shown include the direct spending in M iami-Dade County for the construction ofthe M useum 7t Includes full time and part time person years ofemployment at a ratio similar to the mixofthe economy as a whole. Note A nalysis for M iami-Dade County includes City ofM iami for both direct spending and for multiplier effects. A 11 estimates are in current dollars. The economic model includes rounding that is reflected in individual results, factors and totals. Source ConsultEcon, Inc and as noted. 5 r ANERGY COST SOLUTIONS GROUP, LLC RE: Miami Science Museum MUSP Application Date: March 29, 2010 Environmental Impact Analysis Statement (EIAS) To Whom It May Concern: This EIAS considers the environmental and social issues regarding development as they relate to the local economy, public services, environment, and housing supply within the immediate neighborhood of the Miami Science Museum. I have determined that the Miami Science Museum ("Project") located at 1075 Biscayne Boulevard will have an overall positive environmental impact on the immediate neighborhood. This conclusion is based on review and consideration of portions of the Miami Art Museum MUSP application components provided by Oppenheim Lewis, inc. Documents reviewed include a Traffic Study performed by David Plummer & Associates Inc, architectural drawings and site survey provided by Grimshaw and Rodriguez and Quiroga Architecture (Architects), Landscape Plan provided by ArchitectonicaGeo (Landscape Architect), Site Utility Study provided by A.D.A. Engineering Inc., Miami Science Museum Project Background Document provided by Oppenheim Lewis and the LEED tracking documents provided by Atelier Ten. Please consider the following. The Project's relationship to traffic flow, pedestrian movement and transportation access is examined by David Plummer & Associates and, the final report, has been included in the MUSP application. All study area corridors were found to operate at "acceptable levels of service". The Miami Science Museum Project promotes public transit and alternative transportation use due to its close proximity to bus routes, and the metro rail system and public garages. With many linkages to basic services and public transportation, there is great potential here to promote community connectivity through thoughtful roadway/ bike lane improvements and planned pedestrian oriented hardscape. Re opening the Bi Centennial Park Metro Mover Station and urban biking are being used, in part, to allow for a 10% reduction in vehicle trips. Access to the project via bike or public transport should be encouraged through hardscape design and planning. In this way the Project will be positioned to demonstrate positive social, environmental and community transformation by providing direct, safe connections to open space, local destinations, housing and community centers. 6705 Rpd Rond, Suite 5€T13 1 Coual C-,aN s, Florida 33143 1 P '305 787 4133 1 F t 7€3f3 472 A3812 E +rJ+t°v �t�tSr�C� siG�ltatit .�a� re�i��3.�',€ rtt ENERGY COST SOLUTIONS GPOUP, LLC The traffic study suggests road improvements will not be required for the increased density being requested for this Project. It is indicated that that bike racks will be included in the project design. Bike access routes for this project have not been discussed. Bike lanes should be well marked, protected and provide direct access to transit corridors. Encouraging bicycles and use of public transportation in urban areas will reduce automobile dependence as well as the energy demand for transportation, thereby cutting CO2 emissions, and allowing for a greater service life of existing vehicular infrastructure beyond the 2014 forecast provided for in the Traffic Study. The Project's overall 250,000 square feet consists of indoor and outdoor science exhibition space, a energy playground, aquarium, planetarium, retail and office areas. This Project embraces a Live Work Play philosophy in line with a "new urbanism" growth model. In order to integrate this Project into the community / local environment and encourage pedestrian activities, the design team has included areas of constructed wetlands, native plantings in exterior plazas as well as a promenade and park. The proposed site for Miami Science Museum and Miami Art Museum are on a previously developed site and a public park. Additionally the project boundary is relatively close to a navigable waterway. These conditions have been addressed with a design approach which allows access to the waterfront and museum open space to pedestrians and also protects the waterway from pollution, sedimentation, run off and provides vegetative support for native ecosystems. By using native plant varieties to increase the amount of vegetative open space this Project will help restore habitat in its dense urban surroundings. Examples of large, well developed, native vegetation provide ecologically valuable habitat. Consideration is being given towards preservation of well established, mature, native or adaptive, vegetation. New trees being planted should be as mature as possible. The below ground parking spaces associated with the Miami Science Museum Project allows for a smaller building footprint and also will reduce the urban heat island effect for a Project of this size. Heat Island Effect occurs when warmer temperatures are experienced in urban landscapes compared to adjacent rural areas as a result of solar energy retention on constructed surfaces. Principal surfaces that contribute to heat island effect include streets, roof tops and parking lots. 6705 Red Road, Sultea X0.9 1 trial GiblGs. Floilch 03143 1 P :305 787 4 133 1 F :766 472 (38,12 1 SOLUTIONS GROUP, lLdst These differences in temperature gradients between urban settings can be detrimental to habitat, wildlife and human comfort. Heat island effect will be further mitigated on this project by the use of vegetative roofing materials. Site lighting can also have an impact on nocturnal environments for people as well as wildlife and habitat. Reducing light pollution by limiting light trespass and up lighting can improve nocturnal environments and provide greater access to the night sky. This will be accomplished by thoughtful placement of permanent lighting, such that it does not escape through windows during night time hours, minimizing up lighting, using lower power densities then recommended by ASHRAE/ IESNA standards for exterior lighting, and by carefully designing site lighting that does not escape the site boundary horizontally or into the night sky. The Project's lighting plan has not been reviewed at this time, however, the Owner and Design Team has indicated that it is their intention to meet the leading national requirements addressing minimizing heat island effect and reducing light pollution. This type of lighting compliance should be encouraged. A portion of the Miami Science Museum program includes roof top telescopes. The benefits of night time light pollution reduction will provide better access to the night sky and will enhance the visitor experience of star gazing through telescopes on the museum rooftop viewing area. The Miami Science Museum has indicated that they will be pursuing the US Green Building Councils LEED certification. In doing so energy modeling software will be used to compare proposed ng mtedal�builzlirig--ari�ntati-on,—glazing churactoristi-cs iinsulati6n valuers-anzl ne gysyste�ms; in order to determine the most efficient and cost effective means for cooling and illuminating the interior of the building. Currently the design team is targeting a 14% - 21% overall energy cost reduction compared to ASHRAE Standard 90.1 2004 and the latest version of the Florida Building Code. Early project documents indicate that photovoltaic panels and potentially a Fuel Cell along with water cooled HVAC system will be used to help the project meet its energy cost reduction goals. Demand side ventilation and high performance glazing may also be required help meet the energy cost reduction goals while maintaining a comfortable indoor environmental quality. 6705 Red RCIFI'1, SO 10 0,8, 1 On al Gables, Florid r 2 3,14 3 1 P :;305 787 413 1 t : 78(3 472 0812 1 vmm En o i g ContSo Ik,itjonsCroup.c€arn Stormwater will be managed using a vegetative roof, roof drain cistern, drainage wells and catch basins designed to recharge the Biscayne Aquifer. Sewage will be gravity fed to existing Miami Dade Water and Sewer Facilities for treatment. Contractors will adhere to an Erosion and Sediment Control Plan before groundbreaking in order to reduce pollution from construction activities by controlling soil erosion, waterway sedimentation and airborne dust generation. Rain water harvesting, and low flow flush and flow fixtures will be used to alleviate the increase demand on municipal water service infrastructure for a Project of this size. A large reduction in internal potable water use is forecasted for this project. Additionally rainwater collection has been incorporated into the project design so that potable water use for cooling tower blow down can be substantially reduced. Providing recycling in commercial projects is law in Miami Dade County and a requirement of the US Green Building Councils LEED rating system. Throughout the demolition and construction phases of this Project attention should be given towards recycling a significant percentage of the demolition and construction debris. It is my professional opinion that the proposed development site is appropriate and will have a favorable impact on economy, public services, environment and housing supply within the immediate neighborhood after reviewing the potential environmental impact associated with this Project. While developing the design for the Miami Science Museum and building on this site, consideration should be given towards maximizing energy efficiency, using environmentally appropriate materials, and m-unitoTrng nduoTenvrro=ent-al qu-ality-Iff -thiway-tlre imp 0 eve to e t will -be ecologically balanced with the performance of our built environment. inc , Jason Biondi LEED AP ECSG Environmental Consultants 786 897 7783 6705 Rod Roads Suit« 508 1 Corai Gables, Florida 33143 1 P : 305 757 4-132 1 F :780 472 &912 1 v�� w.�nur�jC:n tStal�itiCxlaC�rc �i�a.r'<€�r�7