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HomeMy WebLinkAboutIII. Tab 4.Economic Impact StudyTHE ECONOMIC IMPACTS OF EMPIRE WORLD TOWERS ON THE CITY OF MIAMI. DEVELOPMENT AND RECURRING PHASES Prepared by: The Washington Economics Group, Inc. November 20, 2007 2655 Lejeune Road, Suite 608 Loral Gables, Florida 33134 Tel: 305.461.3811 — Fax: 303.461.3822 info@weg.com www.weg.cona TABLE OF CONTENTS 1. BACKGROUND IL THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF EMPIRE WORLD TOWERS ON THE CITY OF MIAMI ARE SIGNIFICANT . ..... ........ 2 III. THE RECURRING ECONOMIC IMPACTS OF THE COMPLETED EMPIRE WORLD TOWERS ON THE CITY OF MIANII CONTRIBUTE IMPORTANTLY TO THE CREATION OF A MODERN CITY CORE ...... ...... ......... ........ ........ „ ........ „ . , ...... 7 IV. CONCLUSION 13 APPENDIX: THE WASHINGTON ECONOMICS GROUP, INC. TEAM AND QUALIFICATIONS 14 List of Tables I'f hie 1. Summary- of the Economic impacts Arising from the Development of Empire WorldTowers............................................................................................................. 3 Table 2, Employment Impacts Arising from the Development of Empire World Table 3. Labor income impacts Arising frorr the Development of Empire World Towers.......................................................................................................................... 4 Table 4. Value -Added Impacts Arising from the Development of Empire World Table 5, Economic Output impacts Resulting from the Development of Empire World Towers 6 Table 6, Fiscal Contributions Attributable to the Development of Empire World Towers 6 Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Activities Carried Out in the Completed Empire World Towers...,.o....o. 8 Table 8. Permanent Employment Impacts Arising from Activities that will Occur in the Completed Empire World Towers Development 9 Table 9. Labor Income Impacts Arising from Activities that will Occur in the Completed Empire World Towers .Development 9 Table 10. Recurring Value -Added Impacts Resulting from Empire World Towers Development's Anticipated Operations 10 Table 11. Recurring Economic Output Impacts Resulting from Empire World Towers Anticipated Operations 11 Table 12. Recurring Fiscal Contributions of the Completed Empire World Towers Anticipated Operations 11 Table 13. Empire World Towers Pro -Forma Property Tax Calculations Based on 2007 Adopted Millage Rates for the City of Miami 12 i1 BACKGROUND The Washington Economics Group, Inc. has been retained to prepare an economic impact Brief of the development and ongoing operations of the proposed Empire World Towers Project on the City of Miarni. As currently envisioned, Empire World Towers will consist of two 93 -story residential condominium towers; located at 330 Biscayne Boulevard in downtown Miami. A total of 1,557 residential condominium units are planned for the two lowers, 793. in the tower facing Biscayne Boulevard and 764 units in the tower facing Northwest 4tza Street. The condominium units will enjoy panoramic views of Biscayne Bay, Miami Beach and the Atlantic Ocean. The lower floors of each tower are connected, and share common areas for lobbies, resident amenities, parking, storage and building services. Three unique air bridges connect the residential towers on the 38a , 63`d, and 92nd floors. As currently proposed Empire World Towers will have a wide range of resident amenities including health clubs, restaurants, bars and shops that cater to the needs of residents. Empire World Towers sponsors estimate that the cost of construction, including residential construction upgrades, all common areas, and commercial space buildouts will be over $1 billion. Empire World``Towers, strategically located in the multicultural. City of Miami, would solidify U.S. and Miami leadership in the Americas, in a location where emerging South of the Hemisphere meets the industrialized North. Empire VYorld Towers will become one of the tallest residential complexes in the world, signaling the renewed technological and architecturalleadership of the U.S. as the pre-eminent global economic power, and the City of Miami` as the Business Capital of the Americas. The Minnesota IMPLAN Group, Inc. (MIG) provides the software and basic data needed to formulate the economic multiplier model developed for quantifying the development and ongoing activities of the Empire World Towers on the City of Miami. MIG has been providing economic multiplier models for regional economic impact analysis since 19851. Models developed using IMPLAN software have been widely used by the private sector, academic economists, and by federal, state and local government agencies to measure the economic impacts of various policy alternatives, `'Information on the IMPLAN Group models and the company history can be found at ww -.unplan.com. The Washington Economics Group, Inc. Page 1 The construction of Empire World Towers in the City of Miami will generate significant quantifiable economic impacts. These impacts, estimated by utilizing a professionally, accepted and widely used methodology, support high -wage employment, the generation of labor income, economic output and public revenues in the City. Therefore, the economic outcomes expected from Empire World Towers will provide significant economic benefits to the City of Miami and its residents. Methodology Used in this Brief Economic models that explicitly account for inter -industry linkages (supply relationships), the generation of labor and capital income and the spending of household income have been used since the 1960's to estimate the contribution that a particular business or industry makes to the general economy. These "input-outpuf' models recognize that, as an industry experiences an increase in the demand for its products or services, it in turn needs more goods and services from its suppliers and must increase its purchases from other industries in the economy. The effect on regional production resulting from successive rounds of inter -industry linkages is referred to as the indirect effect. The resulting increases in regional production also lead to expansions in employment and labor income, and the increases in labor income lead to more consumer spending, further expanding sales and production throughout the regional economy. The latter economic impacts are referred to as the induced effects. The successive waves of production, spending and more production result in economic multiplier effects, where the final or total increase in regional production, income and employment, respectively, is larger than the initial (or "direct") increase in production, income and employment. The total quantitative economic contribution of these activities, therefore, is comprised of a direct effect, an indirect effect and an induced effect. H. THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF EMPIRE WORLD TOWERS ON THE CITY OF MIAMI ARE SIGNIFICANT The expenditures associated with Empire World Towers development will generate economic impacts that extend beyond those directly related to the development process. These "spillover" or multiplier impacts are the result of each business activity's supply relationships with other firms operating within the region, the proportion of business value The Washington Economics Group, Inc. Page 2 added- that accrues to households in Lhe form of labor and capital income, of households to spend income on goods produced within the local area. :d the propensity The direct impact of Empire World Towers is comprised of all of the expenditures for labor and materials used in the construction of the building, Utilizing the direct economic impacts discussed above, indirect and induced economic impacts of Empire World Towers were calculated using an extended input-output model of the City of Miami economy. These comprehensive direct, indirect and induced economic impacts are summarized in Table 1. Source: The Washington Economics Group, lac. Table 1. Summary of the Economic Impacts Arising from the Development of Empire World Towers Employment (Jobs) Labor income ($ Mill.) :Value. Added ($ Mill.) Federal, State & Local Tax Revenues ($ Mill.) Total Economic Impact ($ Mill.) 8,628 384 473 1,001 5,720 234 381 14,348 618 854 194 646 1,647 An estimated 14,348 high -wage jobs for local residents result directly or indirectly from the planned Development of Empire World Towers. The capital projects phase of this development is directly responsible for 8,628 jobs in the Construction and related support sectors. However, its indirect and induced job creation process reaches deeply into all sectors of the local economy. This dramatically demonstrates the close supply inter -relationships that the Construction sector has with all of the other sectors of the local economy. An additional 2,687 jobs are supported via indirect economic effects (mostly suppliers). Lastly, 3,033 jobs in all sectors of the local economy are generated by induced spending effects. Therefore, the total number of jobs, directly, indirectly and induced, supported by Empire World Towers' development is estimated at 14,348 — making a significant contribution to local employment opportunities in Miami. The number of jobs created in each economic sector by the Empire World Towers' development is summarized in Table 2. Of the 14,348 jobs supported by the capital projects 2"Value added" refers to the difference between business revenues and the cost of non -tabor and non -capital inputs used to produce goods and/or services. The Washington Economics Group, Inc. Page 3 phase, 6 percent are in the Construction sector, 23 percent are in Knowledge -Based Ser sectors, and the retraining 17 percent are distributed among other economic sectors. Table 2. Employment Impacts Arising from the Development of Empire World Towers Construction 8,653- 1 nowledge-Based Services 3,291 ;Retail Trade 1,251 !Wholesale Trade & Transportation Services 503 Visitor Industry 373 `Manufacturing 187 Government & Other 91 Total All Industries Source: The Washington Economics Group, Inc. The development of Empire World Towers will also be an important generator of Labor Income for the City's labor force. In addition to the $384 million of Labor Income directly generated by Empire World Towers' construction, $115 million of Labor Income is created by indirect economic activities, and $119 million of Labor Income is created by induced economic activities. In summary, the development of Empire World Towers is estimated to generate more than $618 million in Labor Income, with the largest proportion of income generated from the Construction and Knowledge -Based Services economic sectors as shown in Table 3. 14,348 Table 3. Labor Income Impacts Arising from the Development of Empire World Towers ($ in thousands) `Construction !Knowledge -Based Services ;Retail Trade Wholesale Trade & Transportation Services !Visitor Industry Manufacturing !Government & Other !Total All Industries Source: The Washington Economics Group, Inc. 385,575 141,170 38,862 27,204 9,226 8,700. 7,301-'; $618,036 The Washington Economics Grousp, Inc. Page 4 Value added arising from the project is another measure of economic development benefits from the Empire World Towers' construction. Value added is the portion of business revenues that is available to pay compensation to workers, capital income and indirect business taxes'. Value added is also the principal source of household income and a key measure of the contributions that Empire World. Towers will make to the City of Miami economy. Development of this project will create $473 million of value added directly, while $164 million of value added is created by indirect activities, and $217 million of -value added is created by induced economic activities. In total, the development of Empire World Towers will generate almost $854 million in value added. Table 4 summarizes the value- added impacts associated with the development of Empire World Towers on each economic sector. The greatest increases in value added also arise in the Construction and Knowledge -Based Services sectors where 78 percent of the value added is created. Table 4. Value -Added Impacts Arising from the Development of Empire World Towers ($ in thousands) ;Construction ;Knowledge -Based Services ;Retail Trade ;Government & Other Wholesale Trade & Transportation Visitor Industry Manufacturing 'Total All Industries Source; The Washington Econotnics Group, Inc. 473,905 1 92,854 62,533 53,580 43,588 13,799 13,533 $853, 792 A final and comprehensive measure of the total economic impact of the development of Empire World Towers on Miami is Gross Economic Output, representing the sum of gross revenues (receipts) of private firms plus the value of govemr-nent services (valued at cost). The total economic impact of the development of Empire World Towers on the City is estimated at just over $1.6 billion — generating a significant economic impact, Of this total, an estimated $1 billion is generated by direct activities, while an additional $646 million is generated by indirect and induced activities. Table 5 on the next page shows the industry distribution of the total economic impact. ' Value added also includes compensation to government workers. The Washington Econormmfcs Group, Inc. Page 5 Table 5, Economic Output Impacts Resulting from the Development of Empire World Towers ($ in thousands ruction wiedge-Based Services ...._.. 'Retail Trade 'Ewhoiesale Trade ,& Transportati 'Government & Other .Manufacturing . V i sitor Industry Total All Industries Source: The Washington Economics Group, Inc. 1,004,2281 39,484 94,445 224 66,871 47,310,., 24,648 $1,647,21 0': In addition to the various economic impacts presented, the Development of Empire World Towers will result in significant fiscal revenues for federal, state, and local governments as shown in Table 6. Over the course of the development, just over $193 million of fiscal revenues are generated by Construction and related activities. Of this total, $146.5 million, or 76 percent, flow to the federal government, with the remaining $47 million, or 24 percent, of tax revenues allocated to state and local governments. Table 6. Fiscal Contributions Attributable to the Development of Empire World Towers ($ in thousands) Labor Capital . Corporations Indirect Business Taxes 35.178 25.992 40.263 Total: $146,544 $46,966 $193,506 Source: The Washington Economics Group, Inc. The Washington Economics Group, Inc. Page 6 THE RECURRING ECONOMIC IMPACTS OF THE COMPLET.ED EMPIRE Woiun TOWERS ON THE CITY OF M€AMI CONTRIBUTE IMPORTANTLY TO THE CREATION OF A MODERN CITY CORE As presented in the previous sections. Empire World Towers will consist of two 93-story residential condominium towers, located at 330 Biscayne Boulevard in downtown Miami. A total of 1,557 residential condominium units are planned for the two towers, 793 in the tower :rasing Biscayne Boulevard, an.d..764 units.. in. the ._tower ._facing Nortl.miest 4th Street. Empire World Towers will have a wide range of resident amenities including health clubs, restaurants, bars, and shops that cater to the needs of residents, serving as a magnet for the economic development of the urban core, In this section, the annual economic impacts of the ongoing operations that will occur in the completed Empire World Towers are analyzed. These activities include consumer expenditures of individuals living in the residential units on either a temporary or a permanent basis, out-of-town visitor lodging, dining, and other expenditures as individuals visit Miami to see this landmark building, and resident and visitor expenditures in the businesses that operate in the building spaces reserved for resident amenities and commercial activities. Based on projections made by Empire World Towers development sponsors, consultant estimates on average 10,000 out-of-town visitors will come to Miami each year to see the building, generating $5.9 million of tourism -related expenditures for local businesses. Activities in the areas designated for amenities and retail spaces will generate $68 million of business revenues each year, divided between merchandise and restaurant sales. Finally, it is estimated that residential living expenditures of $ 140.9 million per annum will occur, based on current U.S. Commerce Department consumer household expenditure data for high - income individuals attracted to the Empire World Towers residences. Therefore, the ongoing activities in the completed development will generate significant quantifiable and recurring economic impacts each year. These impacts, estimated by utilizing professionally accepted and widely used methodology, will support other high -wage employment, and the generation of labor income, economic output and public revenues in the City of Miami on an ongoing basis. The expenditures associated with activities in the completed Empire World Towers generate economic impacts that extend beyond those directly related to its operations. These "spillover" or multiplier impacts are the result of each business activity's supply relationships The Washington Economics Group. Inc. Page 7 with other firms operating witi that accrues to households in the omznunity, t e proportion of business value added4 of labor and capital income, and the propensity of households to spend income on goods produced within the local area. The direct impact of the activities that will occur in the completed towers is comprised of all of their expenditures for labor and materials used in the retailing and consumer expenditure activities, Utilizing the direct economic impacts discussed above, indirect and induced economic impacts of the activities occurring in the completed development were calculated using an extended input-output model of the City of Miami economy, These comprehensive direct, indirect and induced economic impacts are summarized in Table 7. Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Activities Carried Out in the Completed Empire World Towers Employment (Jobs) ;Labor Income ($ Mill.) :Value Added ($ Mill.) ;Federal, State & Local Tax Revenues ($ Mill.) Total Economic Impact (5 Mill.) Source: The Washington Economics Group, Inc. 2,967. 80 1,0861 4,053 44 124 I 136H 771 213 215 129 58 344 An estimated 4,053 permanent jobs for local residents result directly or indirectly from business and other activities in the completed Empire World Towers. Expenditures related to resident living activities, building -related tourism, and in -building commercial activities are directly responsible for 2,967 jobs in the Knowledge -Based Services, Retailing and related support sectors. However, the indirect and induced job creation process reaches deeply into all sectors of the local economy. This dramatically demonstrates the close supply inter- relationships that these sectors have with all of the other sectors of the local economy. An additional 503 jobs are supported via indirect economic effects (mostly suppliers). Lastly, 583 jobs are generated by induced spending effects. Therefore, the total number of jobs, directly, indirectly and induced, supported by activities in the completed building are estimated at 4,053 — making a significant contribution to local employment opportunities. 4"Value added" refers to the difference between business revenues and the cost of non -labor and non -capital inputs used to produce goods and/or services. The Washington Economics Group, Inc. Page 8 The jobs created in each economic sector by activities that are projected to occur in the completed Empire World Towers development are summarized in Table 8. Of the 4,053 jobs supported by these activities, 38 percent are in the Knowledge -Based Services sector. Many of the employment positions in this broad -based sector require management and professional level employees, and the positions pay wages that are well above local and state average wages. An additional 46 percent of the jobs created are in the Retail Trade sector and the Visitor Industry, with the remaining 15 percent of jobs distributed among other economic sectors. Table 8. Permanent Employment Impacts Arising from Activities that will Occur in the Completed Empire World Towers Development Knowledge -Based Services ;Visitor Industry `Retail Trade 'Wholesale Trade & Transportation Services Government & Other Manufacturing =Construction :Total All Industries Source: The Washington Economics Group, Inc. 1,530 875 576 33 2 12, -,i 4,053! Table 9. Labor Income Impacts Arising from Activities that will Occur in the Completed Empire World Towers Development ($ in thousands) owledge-Based Services 'Visitor Industry "Retail Trade 'Wholesale Trade & Transportation Services jGovemment & Other anufacturing !Construction Total All Industries l $123,972 Source: The Washington Economics Group, Inc. The ongoing activities that will occur in the Empire World Towers development will be an important generator of Labor Income for the City of Miami labor force, In addition to the $80 million annually of recurring Labor Income directly generated by activities that will occur in the completed development, $21 million of Labor Income will be created by indirect economic activities each year, and $23 million of Labor Income will be created by induced 58,406 • 22,928 22,451 15,699 2,687 1,250 533' The Washington Economics Group, Inc. Page 9 economc activities each year. In summary, activities in the completed Empire World Towers development will generate over $124 million in Labor Income each year, with the largest proportion of income generated from the high-tech Knowledge -Based Services economic sector as shown in Table 9. Value added from activities that will occur annually (ongoing) in Empire World Towers is another measure of the economic benefits of this project. Value added is the portion of business revenues that is available to pay compensation to workers, capital income and indirect business taxes'oValue added is also the principal source of income to households and a key measure of the Empire World Towers' recurring contributions to the local economy. Each year Empire World Towers` on -going activities will create $136 million of value added directly, while $35 million of value added will be created by indirect activities, and $42 million of value added will be created by induced economic activities. In total, Empire World Towers' projected activities will generate just over $213 million in value added each year. Table 10 summarizes the recurring value-added impacts of Empire World Towers' anticipated activities on each economic sector. The greatest increases in value added will arise in the Knowledge -Based Services, Retail Trade, and Visitor Industry sectors where 83 percent of the value added will be created. Table 10. Recurring Value -Added Impacts Resulting from Empire World Towers Development's Anticipated Operations ($ in thousands) ;Knowledge -Based Sery ;Retail Trade Visitor Industry Wholesale Trade & Transportation Services government & Other !Manufacturing onstruction Total All Industries Source: The Washington Economies Group, Inc. 109,099 33,561 32,916 22,516 12,4631 1,972 7 564! 5213,0901 A final and comprehensive measure of the total recurring economic impact of the completed Empire World Towers development is Gross Economic Output, representing the sum of gross revenues (receipts) of private firms plus the value of government services (valued at cost). The total recurring economic impact of the Empire World Towers development is estimated at $344 million annually. Of this total, $21 5 million will be generated by direct activities at Empire World Towers, while an additional $129 million will Value added also includes compensation to government workers. The Washington Economics Group, Inc. Page 10 be generated by indirect and induced activities. As presented in the previous analysis o economic impacts, the greatest increases in total economic impact (Gras's Economic Output) will arise in the 1 owledge-Based Services, Visitor industry and Retail Trade sectors, where 82 percent of the recurring economic output will be created as shown in Table i l , Table 11. Recurring Economic Output Impacts Resulting from Empire World Towers Anticipated Operations (. in thousands) ,ff--dam._.. ge-Basel_.Set ;Visitor Industry 169,819 ...................... 61,066 Retail Trade 49.992 {Wholesale Trade & Transportation Services 37,259 !Government & Other 16,351 Manufacturing 8,301 Construction 1,364 Total All Industries Source: The Washington Economics Group, Inc. 5344,151 In addition to the various economic impacts presented, Empire World Towers' ongoing operations will result in significant fiscal revenues each year for federal, state, and local governments as shown in Table 12. Each year almost $58 million of fiscal revenues will be generated by the completed development's ongoing activities. Of this total, $34.6 million, or 60 percent, will flow to the federal government, with the remaining $23.2 million, or 40 percent, of tax revenues being allocated to state and local governments. An estimate of specific City of Miami property tax revenues from the development of the Ernpire World Towers is also discussed in the following page. Table 12. Recurring Fiscal Contributions of Empire World Towers Anticipated Operations ($ in thousands) Labor Capital 601 ! 601 households j 11,749 1 725 1 12,744 f Corporations 6,467 2,365 E 8,832 Indirect Business Taxes Tatai; Source The Washington Economics Group, Inc. 19,823 $23,168 The Washington Economics Group, Inc. Page 11 Annual property taxes attributable to the deveiopment can be estimated for the Cityof Miami, :Based on the development cost estimates provided by the developer, and assuming a conservative 10 percent profit margin, consultant has projected a total sales price/assessed value for all aspects of the project of $1,102 million. Based on 2007 property tax mil!age rates provided by the Miami -Dade County Tax Collectors office, the 2007 pro -forma property taxes for all sections of Empire World Towers would be over $24million per annum, Details of the pro -forma tax calculations are set forth in Table 13 below. It should be noted that these estimates do not include fiscal revenues associated with other taxes and fees. Table 13. Empire World Towers Pro -Forma Property Tax Calculations Based on 2007 Adopted Millage Rates for the City of Miami Calculation of Pro -Forma Assessed .Value Estimated Construction Costs: Overall Structure Expenses: Unit Buildouts: Common Area & Amenities: Total Cost of Construction: Developer Profits: % of Costs: Pro -Forma Sales Revenues: Total Units in Development: Pro -Forma Avg. Unit Revenue: Pro -Forma Assessed Value $934,817,520 S55,739,325 S 10.880.675 $1,001,437,520 10.00% $1,101,581.272 1,557 $707,502 S 1,101,581,272 operty Tax Calculations. Tax Category I Millage I Pro -Forma Annual Tax Levy City/UMSA' Millage: School Operating School Debt Service 7.8775 7.5700 0.3780 Everglades Project 0.0894 So. Fla. Water Management 0.5346 F1ND2 0.0345 County Millage Debt Service Fire & Rescue Fire Debt Service Library Children's Trust $8,677,706.47 $8,338,970.23 $416,397.72 $98,48 1.37 $588,905.35 $38,004.55 4.5796 $5,044,801.59 0.2850 $313,950.66 0.0000 $0.00 0.0000 $0.00 0.3842 $423,227.52 0.4223 $465,197,77 Total: 22..1551 $24,405,643.24 'UMSA-Inincorporated areas of Miami -Dade County 'FIND -Florida Inland Navigation District Source: The Washington Economics Group; Inc. The Washington Economics Group, Inc. Page 12 Under Florida law one halt e percent (0 50%) of the •Stat'`s sales tax collections are transferred to local governments_ Consultant estimates that recurring expenditures attrihutahle to Empire World Towers from out of town visitor expenditures, taxable sales in the nonresidential portions of thebuilding, and taxable living expenditures by building resident will total $124 million each year, and that the City's portion of the associated sales taxes will be $620,000 each year, IV, CONCLUSION The development phase Empire World Towers will be a significant generator of jobs in the building trades and the construction industries. The towers will require large amounts of goods and materials, becoming an important customer for local companies that supply these to the building industry. When completed, Empire World Towers will have over 1,500 residences and serve as home to over 3,000 new residents of Miami. The completed building will be a landmark of national and international importance drawing visitors to the community and asserting US and Florida technological and engineering leadership in the construction and development of landmark residential structures. Empire World Towers will add to the growing residential population of downtown Miami that is helping to support the renaissance of the area as it evolves toward its destiny as one of the great cities of the 21 st Century. The Washington Economics Group, Inc. Page 13 APPENDIX. THE WASHINGTON ECONOMICS GROUP, INC. TEAM AND QUALIFICATIONS The Washington Economics Group, Inc. Page 14 J. ANT©NI© "TONY" VILLAMIL Chief Executive Officer The Washington Econor ics Group, Inc. www.weg.com Tony Villamil has over twenty-five years of successful experience as a business economist and high- level policymaker at both federal and state governments_ He has served as a U.S. Undersecretary of Commerce for Economic Affairs and is currently Chief Executive Officer of The Washington Economics Group, an economics and business consulting practice now in its second decade of operations. His areas of specialization are in economic analysis, economic development, trade policy, the U.S. Hispanic market and the Florida economy. Dr. Villamil is a member of the President's Advisory Committee on Trade Policy and Negotiations in Washington, D.C., He recently served as Chairman of the Governor's Council of Economic Advisors of Florida. During 1999-2000, he directed the Tourism, Trade and Economic Development activities of the State in the Executive Office of Governor Jeb Bush. Presently, he is on the Board of Directors of the Spanish Broadcasting System (NASDAQ), CommerceBank, N.A. and Enterprise Florida -- the State's principal economic development organization. Among other leadership positions, Dr. Villamil served on the Property Tax Reform Committee of Florida during 2006 and is currently Chairman of the Economic Roundtable of the Beacon Council — Miami -Dade County's official economic development organization. He is Senior Research Fellow of Florida TaxWatch, an established fiscal and policy research organization of the State. After winning the Gubernatorial elections in November 2006, then Governor -elect Charlie Crist appointed him as his Economic Advisor during the transition period. Tony earned his undergraduate and advanced degrees in Economics from Louisiana State University (LSU). In 1991, Florida International University (FIU) awarded him a doctoral degree in Economics (ITC), for "distinguished contributions to the Nation in the field of economics." Dr. Villamil publishes widely on economics and trade policy topics, and is a professor in the MBA programs of Florida International University (FIU). He was Senior Fellow of the Latin American and Caribbean Center of FIU from 1993-1994. CHARLES K. YAROS Associate Consultant for Economics Chuck Yaros is an Associate Consultant for Economics at The Washington Economics Group, Inc. (WEG). He serves as economic consultant in the areas of financial economics and economic impact studies. Prior to joining WEG he was a Vice President and Portfolio Strategist at Shay Financial Services in Miami where he specialized in developing, implementing and managing interest rate risk and capital optimization strategies for financial institutions. Mr. Yaros has over 20 years of experience as a business and financial economist, having worked in a number of positions of progressive responsibility in the South Florida business community. Additionally, he has spoken and taught courses on financial risk management. Chuck received his undergraduate degree in Economics with Honors from Trinity College and his Master's degree in Economics from Duke University, where he also completed course work for the Ph.D. degree. Chuck and his family are residents of Coral Gables, Florida. The Washington Economics Group, headquartered in Coral Gables, Florida, has been successfully meeting client objectives since 1993 through strategic consulting services for corporations and institutions based in the Americas. The Group has the expertise, high-level contacts, and business alliances to strengthen a firm's competitive position in the rapidly expanding market places of Florida, and Latin America. The Washington Economics Group, Inca (WEG) has been successfully meeting client objectives since .1993 through economic consulting services for corporations, institutions and governments of the Americas. We have the expertise, high-level contacts, and business alliances to strengthen your competitive positioning in the growing marketplaces of Florida and Latin America. Our roster of satisfied clients, over the ._past ...fourteen _ years, includes multinational corporations,_ financial institutions, public entities, and non-profit associations expanding their operations in the Americas. EXCLUSIVE CONSULTING APPROACH: Each client is unique to us. We spend considerable time and effort in understanding the operations, goals, and objectives of clients as they seek our consulting and strategic advice. We are not a mass - production consulting entity nor do we accept every project that comes to us. We engage a limited number of clients each year that require customized consulting services in our premier areas of specialization. These premier and exclusive services are headed by former U.S. Under Secretary of Commerce, Dr. J. Antonio Villamil, with over twenty-five years of experience as a business executive and as a senior public official of the U.S. and most recently of Florida. PREMIER CONSULTING SERVICES: Comprehensive Corporate Expansion Services, Our seamless and customized service includes site selection analysis, development of incentive strategies and community and governmental relations. Economic Im act Studies highlight the importance of a client's activities in the generation of income, output and employment in the market area serviced by the entity. These studies are also utilized to analyze the impact of public policies on key factors that may affect a client's activities such as tax changes, zoning, environmental permits and others. Strategic Business Development Services. These services are customized to meet client objectives, with particular emphasis in the growing marketplaces of Florida, Mexico, Central and South America. Recent consulting assignments include customized marketing strategies, country risk assessments for investment decisions and corporate spokesperson activities and speeches on behalf of the client at public or private meetings. r--- For a full description of WEB capabilities and services, please visit ourebsite: t: 6 Representative Client List 1993-2007 MULTINATIONAL NS • Lockheed Martin • FedEx T,atie America • IBM • Motorola • SBC Communications Ameritech Izaternatioaa1 • Lucent Technologies • MediaOne/AT&T • Joseph E. Seagram & Sons, Inc. (Vivendi) • Microsoft Latin America ▪ Carrier • Medtronic • Phelps Dodge • Esso Inter -America ® Visa International • MasterCard International ® Telefonica Data Systems a Bureau Veritas (BIVAC) • Merck Latin America ® DMJM & Harris ® Wilbur Smith Associates FLORIDA-BASED CORPORATIONS ® Sprint of Florida • Florida Marlins • Flo -Sun Sugar Corp. • Farm Stores • The BMI Companies • Spillis Candela & Partners ® The Siltmore Hotel ® Traazuxrel Crow Company • Advantage Capital ® WCI Development Companies ® Iberia Tiles • Florida Hospital ® Mercy Hospital • The St. Joe Companies LATIN AMERICA-BASED INSTITUTIONS ® Federation of Inter -American Financial Institutions (FIBAFIN) • The Brunetta Group of Argentina * Association of Peruvian Banks • Peruvian Management Institute (IPAE) e Mercantil Servicios Financ.eros, Venezuela • Allied-Dorn.ecq, Mexico • Fonalledas Enterprises FINANCIAL INSTITLTTIONS • AB? --AifyIRO Bank ays Bank • Lazard Freres & Co. • Banque Nationale de Paris • l JSt3C/ Maritxe 'i'Ixdland ▪ Fiduciary Trust International ® Soo '1 rust Corporation • First Union National Bank (Wachovia) • Union Planter Bank of Florida (R.egions) * Bank Atlantic Corp. • Hemisphere National Bank * Bank1Jnited ▪ ConunerceBank N.A. • PointeBank, N.A. The Equitable/AXA Advisors PUBLIC INSTITUTIONS, NON-PROFIT ORGANIZATIONS & UNIVERSITIES ® Mia i-Dade Expressway Authority • Mtam:i-Dade College ® Miasni Museum of Science e Zoological Society of Florida • Florida International University ® University of Miami ® Inter. -American Development Bank (IDB) ® United Nations Economic Development Program (UNDP) ® Universidad Politecnica de Puerto Rico ® ste112.a Universitario Ana G. Mendez. (StJAGM) ® Leiser University (Private) • Full Sail ® Florida Ports Council m Florida Sports Foundation ® Florida Citrus Mutual ® Florida Nursing Homes Alliance 9 Florida Bankers Association • florid Outdoor Advertising Association ® City of Plantation ® City of West Palrn Beach ® Econ. Dev. Commission of Lee County • Economic Dev. Commission of Miami -Dade (Beacon Council) • Econ. Dev. Commission of Mid -Florida ▪ Jacksonville Chamber of Commerce • SW Florida Regional Chamber of Cormnerce • Enterprise Florida, Inc. • The Beacon Council