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HomeMy WebLinkAboutIII. Tab 4. Economic Impact Study and Environmental Study200, Mr. Howard Wolfson Hospitality Operations, Miami, Florida Re: MUSP impact Analysis — Proposed Hampton inn & Surte Dear Mr, Wolfson: Miar i Economic Associates: Inc. (MEAD has performed n analysis to e t=mare the fiscal and economic benefits that amixed-use project w i h w H be anchored by a proposed Hampton lrin & Suites wiii provide to the City of Miami, The project, which will be located at 30 S.V. 12'h Street, will also contain 10;080 square feet of retail space and 210 parking spaces. This letter, which is organized as shown below. provides the findings of our analysis and their bases_ Section f Findin Fiscal Benefits Economic Benefits Bases of Estimates. Closing__The analysis presented below is based n preii it ry sti ates of the construction costs for the proposed mixed -use project and its operating% n completed and current tax and fee rates. The estimates of fiscal and economic ben f=ts presented below are subject to change and the changes may be signifi:art based on market conditions, cost parameters and rate structures at the time the proposed mixed -use project ,s a pally developed. Project Description The proposed trixedp-use proOct - together with 10,000 square feet of ret stabilized occupancy level of 71 percent rate approximating $200 per night: It is a per square foot mprdsed of 2 unit Hampton inn & Suites pane- The h t l is projected to achieve a : P full year operations at an average daily t.cioat d that the retail space will rent for $0 1 Sawa 39th Terrace Tail. € ) 229 Fax.: itt9,9) 4 Miami Elands 33459 r Howard Wei Hospitality }per July 10, 2008 Page 2 Construction of the proposed ix use project erected to cost $38.` mnark casts. An additional $9:0 million will be expended for sod costs -inclusive architect r i and engineering fees, marketing, pre -opening expenses, project overhead, ec. Accordingly, the proposed mixed -{use project will cost 547.0 :�-n e develop exclusive of land, financing costs and developer fees. Summary of Findings Development et the proposed (nixed -use project it Miami in important ways. 4$ summarized 10 : Fiscal Benefits the City Fiscal Benefits rete to the pas iti e i pact that the proposed Hampton inns &Bunts mixed -use project will have on the finances of the City of Mien;i. The benefits that ;t will provide to the City VAN be both non- e e E:n and recurring r inng in nature enumerated below.. The estimates shown below are expressed in 2008 Constant Dollars. N rd rnn T s • $ 64,850 In City building per fees • 10,000 in City solid waste surcharge fees • $ 26,737 in City police impact fees a $ 11,860 in City fire -rescue impart fees • $ 4,786 in City general services impact act fees • $ 128.0 6 in Downtown DR supplemental fees Re Berieit • $ 364,995 annual; City General Fund ad valorem taxes ▪ $ 28,880 annually in City Debt Service ad valorem taxes • $ 25,000 annually in Downtown Development Authority ad valorem taxes Non -Quantifiable • Trade -related fees for rooting, electrical, pr obing, echanical, pool and elevator work performed during construction nor! -recurring • Increased City utility taxes and franchise fees (recurring) • increased occupational lie-ense fees (recurring) • Increased parking surcharge revenues (iecurr :increased saes tax rebates(recurring) Miami tonealic Associates, Inc, 6861 SAN, Selot Terrace Mia.. i, Florida 33156 Teb. (30.5) 9 OZ Fax: (3O) 6,69-8 -3 Email: la r 'rsls ietisci at e.net Mr. Hospital; July 10, Page 3 .1,Ntrilie the focus of M A=.' sc l nalysis was. on the City f M=a , the proposed mix x d_ use project wilt, as shown below, provide significantf c i benefits to other nond municipial governmental jurisdictions that €mpact the Ives of City of Miami resid r is ▪ $ 253,322 in County road s r t fees re ,g) • $ 228,990 in County General Fund valorem taxes rec '$ $ 14_250 in County Debt Sea,ce a v ,rem taxes (recorr • $ 21,115 in Chlidren's Trust a" ` a orem taxes (recurring,/ • $ 19,210 in County Library ad valorem taxes (recurring) ▪ $ 378,500 in School Operating ad valorem taxes £.recurring) • $ 18,900 in School Debt Service ad vaorem taxes (recura3rg • $ 690,000 in County hotel occupancy taxes • In ie sec County occupat anal license fees (recurring; • lncr ased sales tax rebates (recurring) • increased io ai option sales taxes for the County Health Trust and Transit (recurring) Ec no i Benefits l* Walk Benefits relates to the pitwwe impact that the proposed mixed rise project ve on the economy of the City rather than its finances. The econo benefits provide will also be is n-recur•=ping and recunn in nature. Non Approximately percent of the $47, =loran° ttiat till be spent n hard and soft costs to develop the project ,ill; be spent within the City of mi. producing an overall eouno, impact approximating 65.7 millionn when the multiplier effect is cans dere-'d. Constructor expenditures within the City nt 1m= will include ar estimated 1 5.2 million for construction labor, an amount sub+Merit to pay approximately 292 construction workers, some of whom may be City residents, the average annual wage of S52,000= for construction workers toMiami-Dade County. Recurring i Guests in the proposed Motel will spend 3.0 annu ly for their id ing, food and beverage, ground transportation, retail goods and entertainment. The workforce atythe �pproject w€lll span- n ditior ei 0 51,, Approximately L 5 percent `�.tf tS F3s $23-5 I € iiiion 4d i £ b nt within the City. producing an overall economic impact en the City of -Miami's economy approximating $26.4 Million when the multiplier effect i c ns{iere. Econo . Associate*, too. 6361 a , bilm Terrace Nis t; Florida 33156 Tei: (305) 6 9_3 Z8 Fax: (3 s) 665 Entail: ate. .riktibetlsoa th&net Mr. Howard Wolfson Hospitality Operations, I , 2008 Page 4 A total of 1. 5 pep le will be employed at the proposed rxed-use pro ect, Based on data compiled by the F£orrda Agency on Work re Inn vation€ estimated that these workers, who may include City render? - o earn approximate 7 3 million annually. Bases of Estimates The mate, to s that follow nevi the assumptions used to estirrl to the fiscal and economic benefits that the development of the proposed Ham n Sites mixed - use project will provide to the City of sa i. Ail monetary, va,ues are stated in 2008 Constant Dollars. Project Characteristic The proposed mixed - use project " Qll o ated at 30 SStreet within tree boundaries of the City of Miami and its Downtown Develop e t Authority as we as those of the Downtown DR"E. It will also be located within the j risdictions of Miami - Dade County and the Mrar r-Dade County Public School District. The proposed mixed -us project will ant i, th Inns & Suites lodging facility and 10,000 s 210 parking spaces. The project will entail th budding inclusive of 158 500 square feet for space and the parking garage. onstructron of a 22 1 -rlft Hampton: eet of retail space together with the traction of 259,400 square feet of hotel, 10,000 square feet of retai? Development of the proposed mixed --use project t t pproximateiy $3. million to construct in terms of hard 'construction_ Soft costs including those relating to professional fees, marketing, leasing commissions, permits, developer overhead, pre -opening expenses, administration, etc. will total an additional $9.0 million. Therefore, $47.0 million will be spent to develop it exclusive of and acquisition, financing costs and developer's fees. Based on a review of Miami -Dade County property assessment oats, it zs esti-mated that the assessed and taxable value of the proposed rr fixed -use proj will approximate $50,0 million for ad valorem tax purposes The proposed hotel is protected to achieve a stabilize level of occupancy approximating 71 percent in its 3 ' full year of operations and n average daily rate approximating $200. At this level of performance, it will record lodging revenues totaling $11.5 million annually. It is further estimated that guests at the hotel will spend an average of approximately 200 per occupied room -night for food and beverage, ground transportation, retail goods and entertainment. These expenditures will also Natal $1 1.5 million annually, a Eton rri Assoc) t F, Inc, 6 h Terrace r a 33166 Tea: (3O5) 66 r 9 Fax: (3 6) 669- #9. a atn14 .etiaouth«n.e.t Mr. Howard'; ofsora Hospitality Oprtioin j uy 10, Page 5 Sales in; the proposed retail space dependig on the type of tenant, Based on industry standards occupied by approx€mat lodging unit and 2.5 employe information compiled by the Flo that these workers i } earn average of $10 to $12 per day expenditures would approximate $0.5 million Non recurring Fiscal impacts er anoare foo ated that the bird ed o= 1 space !€ be This estimate assumes . 'workers per square feet of retail space. Based oo `JQr force innovation, It is estimated ally. Assuming that they spend an er items while worktng, their annual The City of Miami charges building permit fees al rate of $G.25 ger gross s uare foot of commercial construction in caicuiating fees, the square footage associated with parking garage space Is inci ;ded in the caiculatir n. The proposedmixed-use project will contain a total of 259.400 square feet of space, inclusive of paring Accordingly, buliding pewit fees totailn $64,650 will be paid, A solid waste surcharge fee in the a.n-nount of $18 000, the r maxirnum amount will be applied The various trades involved in co .pieting the proposed ixe€ use In ud g the roofing, electrical, plumbing, ~ han cal and elevator pontractors will be required go pay fees on their work. Calculation of the fees that they will pay requires that the projects final engineering drawing. s be completed, which leas not yet occurred. Accordingly; the fees that will be paid can not be quantified at this time. A solid waste surcharge is applied to these fees. The City of Miami charges impact fees on new nstri construction projects. The rates for hotel projects are $87 per room for polio 0 per room for fire rescue and $16 per room for general services. The rates for retail space `s a project with less than 25.000 square feet are $0,751 per square for police, $0,302 per square foot for fire- rescue and $0.126 per square toot for general services. impact fees totaling $43,383 will be paid an the proposedmixed-use project, cif which $2 , 737 will be for police. $11,860 for fire -rescue and $4,786 for general services. In addition to the impact fees discussed in the preceding paragraph that are charged to projects anywhere within the a ty of Miami, supote nentai impact fees are charged on projects located in the area covered by the Downtown DRL. According to the current table of fee coefficients, the rates for hotel units and retail space are $. j24 and $1,332 per square foot, respectively. Based an these rates it is estimated that a total of $128,016 in Downtown DRI supplemental impact fees will be paid. New commercial: nstr on prate : Ea t ty f Miami, also need to pay impact fees to Mis`,. m. Dade County r roads, n i eastern portion of the county, road impact fee rates f 5r of i -units retail spade in the quantities being proposed /Warm cono kk Assvl,aates, erica 6361 3.01, 3.9th Terrace Miami. ftoridra 3= Tete (305) 65 O229 Fax: (3 66%4a34 Email: morainic o t met Howar- Jc,fscri Hospitality Operations, July 10, 2008 Page are $`` 042 per unit and $2.294 per s payment of $25 ,322. Recurring Fiscal cts Me mit age rate currently being e vied 1 ,;.. governmental ertit.e referenced it the Summary ol Irnmediately to The he aid valorem tax revenues pro'. Findings and the table below were oak:. ated by app ying the proposed pro ect's estimated taxable value of .0 million, Ratel$1000 Ertl Taxable Value -rid Deb Service Fund Downtown Develppment Authority '-Dad Debt Service Fond s Trust ._.. _Ibrary . _. MiarniA)ade County Public Schoo s 0 rat')__. urc: 0,4223 0,3842 7 03 Economic As c ciates. result in a tax purposes ` b' shown in the labF the Summary o .ge rates shown to , 995 28,880 2 5, 000 228.980 14,250 15 9.210 Or) Guests i e proposed hotel ill pay an occupancy tax at a rate of 6 percent of their room ciarges. Assuming annual .00m revenues totaling $11 5 million, $690,000 in occupancy taxes will be generated annually. The City of Mia, communication, amount cotlected wilt be dependen duant ted at this Lime. Both the City of Miam from the proposed h collected can not be estirn the businesses,, not yet known, cofects utility taxes and franchise fees from the 7c and other 5t411 serAces based on their revenues. T ha result of the development of the proposed mixed -use project on the amount of these services used, hence, it pan not be ;-Dade County will collect cupation d iicerise fees pants of the proposed retail space The amount is time since it will be dependent an tie nature of occupy the retail space. The City of Miami collects a 20 pe§ surcharge revenues that will be co ected depend on usage; hence, it can not be est Economic is Associates, ttcca 68 1 Tel: ( 5) 6 9-Qi2 9 Fax.: (30) 66 harge on parkin- tea rn the proposed mix ted at this time. Terrace 4 Email. meal The amount of use project will outh.net Mr. Howard tlot son Hospit.ai.ity Operation lno. July 10, 20 $ Page 7 The State Florida charges 6 percent sales tax of :e paym . t m to occupy a lodging, rent retail space r d for parking as weli as on a wide-`i r et oo r a a good and expenditures in restaurants Approximately. 9 percent of the amount collected is rebated to the County :n i ri it i collected. Half of the rebated amount is retained by Miami -Dade County with remainder being divided among the municipalities w/thin the County. Miami -Dade County charges an additional 1 percent sales tax, the proceeds of which are divided equally between the Miami -Dade Health Trust and transit_ The amounts that will de collected will be dependent on the proportion of toe retail expenditures recur &-d at the projecl and by the hotel guests that are subject to sales tax as opposed to being exempt, whit,' i not currently known rienn these tax revenues can not be estimated at tills time. Closing The analysis performed y MEA dens n tr to Suites mixed -use prcj economically, ill be highly beneficial Miarroi Econo As,soc t Tet (30 e -02.23 of the the Cit6. i Hampton Inns both fiscally and g.i ry.[�y��q Ass nomI � + Nss An Do kart President 4 Terrace tarot, Florida 33166 a a ; meein 'eetisouth,siet E �.zbS.i R{1 bi wwait f.e.s 501 S P-IN AK.5 is<. 33326 Upinc.CC i.I7 (954),347-0967 Fax (9*4)-2i7-36t4 :RE: Hampton l.nte & Suites Environmental Impact Analysis Statement (ETAS) To Whom It May Concern: Date: filly 8, 2 After review and consideration oldie Hampton .Inn & Suites project MUSP application literature provided to me by Brickell Hotel Group LLLF, and prepared by Greenberg Traurig P.A.. Israel Bigelman (Architect), Richard Garcia & Associates (Traffic Study), Sun -Tech Engineers (Site lJtility Study), Miami Economic Associates (Economic lmpact Analysis) it is determined that the Hampton Inn & Suites, 30 S.W. 12th St. will have the following environmental impact on the immediate neighborhood. Based on the design elements and potential impact of the development in the context of the environmental and social conditions of the study area, this EIAS takes into consideration the following environmental issues: the economy, public services, and the environment within the immediate neighborhood. A complete economic impact analysis provided by Miami Economic Associates is included in the MUSP application. In summary the report states that the fiscal benefits to The City if Miami and the increase in employment opportunity as a measure of full time jobs, wages, local taxes, direct expenditures, indirect expenditures and output generated by the project are determined to be a positive economic result of the proposed project. Please see the MUSP application for further analysis. The Projects' relationship to traffic flow, pedestrian movement and transportation access is thoroughly examined by Richard Garcia & Associates and can be found in the MUSP application. While all study area corridors were found to operate at "acceptable levels of service" I believe it is import to consider the following social and environmental concerns. By channeling redevelopment to urban infill areas, with existing infrastructure, the impact on natural resources can be protected. Communities with at least ten basic services within a half mile radius and in close proximity to bus lines and light rail, reduce the impact of vehicular traffte, improve productivity, alleviate parking problems, and promote healthy levels of outdoor physical activity. The Hampton Inn Suites project could promote public transit and alternative transportation use due to its close proximity to basic services, bus routes, the metro mover and light rail system. The traffic study suggests that no road improvements will be required for the density being requested for this project The Ownership will encourage public transportation use by its employees and clients due to the hotels close proximity to the Metro Mover. Bicycle racks and employee showers are being included in this project. When encouraging alternative modes of transportation, bicycle routes and options should be considered and explored_ Bike lanes should be well marked, protected and provide direct access to transit corridors. A large number of people are willing to use mass transit and alternative transportation if it is convenient and facilities are provided. This strategy can potentially reduce the energy demand for transportation which would cut CO2 emissions and lessen the negative effects of buildings by reducing the need for single occupant vehicle use. Additionally providing appropriate bicycle lanes, and accommodations can alleviate the traffic burden on existing roadways and infrastructure well beyond the 2011 forecast provided for in the Traffic Study. Excess parking is being proposed by this project. Providing the minimum amount of parking required by code will further promote a more walkable community and encourage ridership for alternative means of transportation. By developing a site near to light rail and bus routes and encouraging employees and clients to use public transportation this project will be promoting pollution reduction and community connectivity. The projects 10,480 square feet of retail space are designed to complement the 221 hotel units by encouraging pedestrian activities. This project should embrace a Live, Work, Play, philosophy in line with a "new urbanism" growth model. The site is located at 30 SW 12th St. Basic services already exist in this community and focusing hotel/residential and retail density here will promote community connectivity which allows for living, shopping and working in close proximity. In order to integrate this project into the community and encourage pedestrian activities, the design team has included exterior plazas and walkways that include native plant varieties and vegetative space, shade and breezeways, Designing more native vegetation into the plaza and walkway areas will promote a connection between hardseape and native habitat in order to maximize open space and restore native habitat. The design will accommodate some ground floor plaza areas where sitting, socializing, meeting and walking will be possible. The proposed site for The Hampton Inn Suites is a previously developed site which is not considered prime farmland, a greenlield, habitat for any species on the threatened or endangered species lists and is not within 100 feet of Building Commissioning- LIEEDTM Consulting ;�€ e cfl, i worN e ..�N.N AK..E R.G.R. wetlands, �r public park land. Since this site has been p -cviousiy disturbed, damage to tent as limited and more sensitive land can be preserved, The developers proposed plan provides the minimum requirements for open space. Using native plant varieties and increasing the amount of vegetative open space will help restore habitat in the dense urban surroundings of this project, The proposed landscaping plan appears to provide slightly more vegetation then required by code. As much as possible native plant varieties have been included to help protect and restore local habitat. A landscaped pool deck which acts as the roof of the parking garage where 100% of the parking spaces are covered allows for a smaller building footprint and also will reduce the urban heat island effect for a project of this size, The differences in temperature gradients between urban settings can be detrimental to habitat, wildlife and migration corridors. This heat island effect will be further mitigated by using roofing materials and hardscapes with a high solar reflective index or by adding additional vegetation. 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 can be done by thoughtful placement of permanent lighting, such that it does not escape through windows, minimizing up lighting, using lower Hower 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 projects lighting plan has not been reviewed or developed at this time. The Developer has indicated that it is their intention to reduce Light pollution associated with the projects lighting plan. The Developer has considered native vegetation, additional vegetative open space with native plant varieties, high reflective roof coating and a lighting plan internal and external which limits light pollution. In doing so the project is minimizing its effect on the immediate environment. The orientation of this project in relationship to the suns path across the sky lends itself to efficient energy use. Energy modeling software can be used to compare proposed roofing materials, building orientation, glazing characteristics, insulation values and energy systems, in order to determine the most efficient and cost effective means for cooling the interior of the building while providing a product with high levels of comfort. Doing this can effectively lower energy and maintenance costs. Allowing natural light to enter through the north facing facades and shading the south facades can provide energy performance efficiencies which equate to operational savings for the owners while reducing the projects carbon footprint. While no mechanical plans have been reviewed at this time the design team is encouraged to use energy modeling software to predict the projects energy performance. Additionally consideration should be given to using all energy star rated appliances for the hotel/residential portions of this project. A 14% improvement over code energy performance would be a significant achievement for this project and has been discussed by the ownership. The Developer intends to supply the project with Energystar rated appliances and equipment where ever practical. Stormwater will be managed with injection wells, which percolates to areas near salt intrusion, and catch basin fed exfiltration trench designed to recharge the Biscayne Aquifer. Sewage will be gravity feed to existing Miami Dade Water and Sewer Facilities for treatment. Contractors will be required to 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 can be used to alleviate the increased demand on municipal water service infrastructure for a project of this size. The ability for clients and employees to recycle workplace and/or hotel trash has been provided for in this project. Providing a plan for participating in the municipal recycling program is a great service and indication of the Owners intention towards minimizing the environmental footprint of this project. Regarding all environmental impacts associated with this project, it is my professional opinion that the proposed development site is appropriate and has a favorable impact on economy, public services, environment within the immediate neighborhood. While developing the design for The Hampton Inn Suites and building on this site, consideration should be given towards using water efficiently, maximizing energy efficiency, using environmentally appropriate (regionalirecycled) materials, and monitoring indoor environmental quality. In this way the impact of development upon our natural environment can be minimized and the performance of our built environment can be maximized. The Ownership has considered pursuing LEED certification for this project and is encouraged to do so. Sincerely B °- ndi LEED AP The Spinnaker Group Environmental Consultants 786 897 7783.