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HomeMy WebLinkAboutSubmittal-Hattie Willis• Miami DrillDown • 411/ Social Compact Catalyzing Business Investment in Inner City Neighborhoods Survey Results Perceived Need For Services 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0 % 20.0% 10.0% 0.0% Banks Liberty City 70.6% Little Haiti 73.8% Overtown 84.4% Wynwood-E 76.6% • Grocery Stores 88.3% 82.4% 92.6% 70.1% • Drug Stores 79.3% 75.5% 90.3% 82.1% • Hardware 81.8% 83.4% 91.1% 82.6% • Laundromats 90.8% 84.2% 90.7% 80.6% • Professional Services 92.3% 85.4% 95.6% 92.2% Auto repair 86.1% 81.8% 88.6% 77.0% Perceived Need For Services 100.0% - 80.0% - 60.0% - 40.0% - 20.0% - 0.0°!0 Liberty City Little Haiti Places of Entertainment 83.2% 88.5% Overtown 94.1 °!0 Wynwood-E 93.0% • Eating Places 84.2% 83.7% 93.8% 84.3% • Beauty or Barbershops 86.9% 77.2% 90.5% 87.3% • Dry Cleaners 89.8% 77.8% 94.5% 81.6% Computer/Tech support 87.8% 86.1% 93.8% 97.1°!0 Purchases Outside the Community 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Liberty City • Hardware/Housewares 66.5% Little Haiti 55.2% Overtown 61.3% Wynwood-E 57.5°!0 • Clothing & Shoes 83.6% 74.4% 75.0°!0 60.0% • Cosmetic Services 55.9% 55.0% 50.7% 43.5% Professional Services 67.3% 59.8% 63.0% 51.4% Purchases Outside the Community 100.0% - 80.0% - 60.0% - 40.0% - 20.0% - h111 5 a c -o �' 4-, E cn J 0.0% Liberty City Little Haiti Overtown Wynwood-E Gasoline 58.7% 59.8% 52.1% 66.9% ■ Dry Cleaning 57.0% 55.6% 52.6% 44.7% • Groceries 76.0% 61.0% 70.6% 66.0l0 • Medication 61.6% 58.9% 60.5% 61.0% • Restaurant Meals 77.7% 65.1% 64.6% 67.0% -c c 0 141 c c 0 V c 0 u 61 s- item BH.1 on 09-10-09 Copyright © The Social Compact, Inc. 2007 07- 00915 Sbiml lta /- Nattie W I l's 17 • • • PERCEIVED NEED FOR Liberty City Little Haiti 76.0% 61.6% 61.0% 58.9% 77.7% 65.1% 66.5% 55.2% 83.6% 74.4% 67.3% 59.8% Overtown 70.6% 60.5% 64.6% 61.3% 75.0% 63.0% Wynwood-E 66.0% 61.0% 67.0% 57.5% 60.0% 51.4% SUBMITTED INTO THE PUBLIC RECORD FOR ITEM f)ifi ON 9-ioo9. • • • Miami Neighborhood Market DrillDown Catalyzing Business Investment in Inner City Neighborhoods August 2007 Social Compact ■ ■ ■ Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown Social CaRip act Catalyzing Business Investment in Inner City Neighborhoods Dear Colleague: On behalf of Social Compact's Board of Directors, I am pleased to continue Social Compact's mission to catalyze business in- vestment in America's underserved communities with the release of the Miami DrillDown. DrillDown profiles, drawing on business disciplines and community strengths, have a strong track record of stimulating sustain- able, private investment, benefiting communities and businesses alike. The Miami DrillDown is no exception. Focusing on core market drivers that resonate across industry lines, the DrillDown found substantial cause for optimism and investment in the City of Miami. Additionally, the partnerships established over the course of the DrillDown give these findings solid grounding and point toward the positive outcomes that can be achieved through innovative approaches to building com- munity strength. I look forward to seeing these DrillDown findings leveraged for additional private investment and continued successes in the City's vibrant neighborhoods. Since p ly, Joe Reppert Chairman, Social Compact Vice Chairman, First American Real Estate Services Information, Inc About Social Compact Social Compact is a national not -for -profit corporation led by a board of business leaders whose mission is to help strengthen neighborhoods by stimulating private market investment in underserved communities. Social Compact accomplishes this through its Neighborhood Market DrillDown analytic tool, developed to accurately measure community economic indicators, and pro- vides this information as a resource to community organizations, government decision makers and the private sector. Social Compact is at the forefront of identifying the market potential of underserved neighborhoods and believes that a public pri- vate partnership that involves community members and leverages private investment is the most sustainable form of community economic development. Copyright CO.) The Social Compact, Inc. 2007 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk 2 Board of Directors Joseph Reppert, Chairman, Vice Chairman, First American Real Estate Information Services, Inc. David H. Katkov, Vice Chairman, Executive Vice President, The PMI Group, Inc President and Chief Operating Officer, PMI Mortgage Insurance Co. Mary Lee Widener, Immediate Post Chairperson; President and CEO, Neighborhood Housing Services of America Clayton Adams, Vice President, Community Development, State Farm Fire & Casualty Company Joe Belew, President, Consumer Bankers Association Rebecca A. Craft, Director, Energy Efficiency Programs, Consolidated Edison Company of New York, Inc. Lisa Glover, Senior Vice President; Director, Community Development and Fair Lending, US Bank Ron Guggenheimer, Director, Fixed Income, Citi Markets & Banking W. Roger Haughton, Immediate Past Chairman, The PMI Group, Inc. JoAnn Kane, Vice President and Chief Operating Officer, Faithworks, Inc. Michael R. McGuire, President and CEO, Affinity Bank Robert A. McNeely, Executive Vice President, Union Bank of California; Chairman and CEO, Union Bank of California Foundation Bruce D. Murphy, Executive Vice President, KeyBank National Association; President, Community Development Banking, KeyCorp Ed Owens III, Senior Vice President and Director of Community Affairs, Fifth Third Bank Jeff Rosen, Executive Vice President, Business Banking Group Manager, Huntington Bank Dean Schultz, President and CEO, Federal Home Loan Bank of San Francisco Brian 5tolarz, Associate, K&L I Gates John B. Talmage, President and CEO, Social Compact Miami DrillDown Social C pact Catalyzing Business Investment in Inner City Neighborhoods Foreword In fulfilling Social Compact's commitment to underserved markets, I am proud to present the findings of the Miami DrillDown. The analysis of five low to moderate income neighborhoods in Miami revealed the most significant unrecognized potential of any DrillDown studies to date. These unprecedented, but not unexpected, results triggered Mayor Diaz's decision to chal- lenge census estimates in 2007. The findings demonstrate the vitality of Miami inner-city communities and are all the more critical because developers, retailers, and financial services use demographic data to support their investment decisions. Mayor Diaz, his team, and local CDCs are committed to ensuring the investment that takes place will respond to the needs of the existing community and not used to displace people. The goal is that the data be used to better leverage public and private investment in underserved neighborhoods across the city. Social Compact looks forward to working with the City and the other stakeholder organizations who contributed to the suc- cess of the Miami DrillDown to facilitate a paradigm shift with regard to how information can better serve communities. Miami is a demonstration in information -led development. It is the hope that the findings provided herein serve as another source of information for the City of Miami, and other business and community leaders, in their decisions to implement sustain- able economic development projects in inner-city neighborhoods. Sincerely, C3Ne,,z, c J.)'n almage esident and CEO octal compact Copyright O The Social Compact, Inc. 2007 3 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk Miami DrillDown • Social C pact Catalyzing Business Investment in Inner City Neighborhoods Background In recent years, inner-city neighborhoods have come to represent billions of dollars in untapped buying power and retail leakage. The ethnic and cultural diversity of urban residents represent myriad opportunities for local entrepreneurs, niche markets and new markets for financial services, corporate retailers and other commercial investors. Despite this opportunity barriers to private investment in underserved neighborhoods persist. As a result, urban residents lack access to basic goods and services at competitive prices, and retailers and developers are unable to capitalize on the fundamental assets of inner- city, urban communities. Underserved urban neighborhoods are often negatively stereotyped and defined by deficiencies rather than strengths. The reason for this is manifold. First, deficiency -based depictions are necessitated by funding and policy regulations that require a neighborhood to demonstrate need for federal subsidies and social service programs. While these depictions attest to social need, they do little to highlight neighborhood strengths and economic opportunity. Second, excessive media coverage of undesirable characteristics such as crime, poverty, and blight perpetuate negative perceptions of these inner-city neighborhoods. Finally, lack of dependable business -oriented data on underserved communities expands the information gap on market trends, disabling potential investors from making informed decisions. Combined, these factors contribute to a cycle of missed opportunities in underserved urban markets. THE DRILLDOWN: BRIDGING THE INFORMATION GAP Beginning with the premise that a significant reason for inner-city disinvestment is lack of good market information, Social Compact developed the Neighborhood Market DrillDown to address key barriers to private investment in and around inner- city neighborhoods. Social Compact offers its neighborhood market analyses to local governments, community organizations and businesses looking to attract investment or to invest in inner cities. These analyses provide alternative assessments of population, income and housing that do not rely on outdated and potentially inaccurate decennial census data. The DrillDown was established to provide up-to-date profiles of market strength, stability and opportunity for small, dense, and rapidly changing urban geographies. The DrillDown builds on current, finely sieved market information drawn from a wide spectrum of commercial, proprietary and local government sources (e.g. tax assessor, building permit, commercial credit companies and realtors). Rather than relying on any one information set, the DrillDown findings surface from a combined body of data. These findings, tested against supplemental data and the intuitive knowledge of local market leaders, serve as the foundation for an objective, systematic analysis of business attributes. Based on this data, Social Compact has developed the following indicators of market size, strength and stability. Copyrighl © The Social Compc cr Inc. 2007 4 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods DrillDown Overview With support from the John S. and James L. Knight Foundation, Social Compact applied its DrillDown analysis to five neighbor- hoods in the City of Miami. The Miami DrillDown focused on identi- fying those areas that are significantly underserved with regard to retail (with an emphasis on grocery stores) and financial services. The City's commitment to poverty reduction and the Knight Founda- tion's mission to build strong communities so cities can "reach their highest potential" guarantee an exceptional partnership for Social Compact and the economic development field. Social Compact would like to thank the John S. and James L. Knight Foundation, Washington Mutual and Citibank for their financial support and participation in the DrillDown analysis. We would also like to recognize the collaboration and support of Mayor Diaz, Commissioner Michelle Spence Jones, the City of Miami, Miami Dade Community College, Florida International University, Tom Zuniga, and local stake holders. In addition we extend a special thanks to the entire Social Compact Board of Directors for their continued leadership and support. Included in this report are DrillDown findings for the following study area neighborhoods. 1. Allapatah 2. Little Haiti 3. Liberty City 4. Overtown 5. Wynwood—Edgewater Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk City of Miami 2007 DrillDown Study Area Neighborhoods Study Area Little Haiti Liberty City Allapattah Wynwood - Edgewater Overtown City of Miami Miami -Dade Co. Copyright © The Social Compact. Inc. 2007 5 • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods Key Observations — Study Area Neighborhoods... Miami Neighborhoods are home to larger markets than previously understood... Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Study area neighborhoods are higher density markets than previously thought. DrillDown estimates revealed higher population densities in each of the five study area neighborhoods. For example, the DrillDown estimates 29 persons per acre in Overtown and 22 pesons per acre in Little Haiti, compared to the 16 per acre reported by Census 2000, for both of these neighborhoods. • DrillDown population estimates far exceeded Census 2000 counts in all of the study area neighborhoods. Neighborhoods where the DrillDown population estimate ex- ceeded a 50% increase from Census 2000 estimates were Overtown (93%), Wynwood/Edgewater (84%) and Liberty City (54%). DrillDown estimates exceeded Census 2000 by 39% in Little Haiti and by 19% in Allapattah. Higher incomes signal greater buying power in study area neighborhoods... • Each of the study area neighborhoods boast aggregate neighborhood incomes far above Census 2000 estimates. Most notably, the aggregate neighborhood income in Wynwood/Edgewater was 1 19% above Census 2000 figures, and in Overtown, the DrillDown's aggregate income was 92% higher than the census. • Income density/income per acre is highest in Allapattah, Liberty City and Little Haiti, each at over $200,000 per acre. • Two study area neighborhoods saw an increase of 50% or more from Census 2000 average household income figures; Wynwood/Edgewater saw a 61 % increase and Little Haiti's average income is estimated at 50% higher than reported by Census 2000. • DrillDown estimates for median household income also exceeded Census 2000 estimates by 25% or more in all study area neighborhoods; most notably Wynwood/ Edgewater, at a 59% increase from Census 2000 numbers and Little Haiti, with a 46% increase. • The DrillDown estimates the informal economy to be worth more than $184 million in study area neighborhoods alone, comprising over 1 1 % of the total study area econ- omy. The informal economy estimate is largest in Wynwood/Edgewater, comprising 1 2% of the total neighborhood economy.. Upward trends in homeownership indicate greater market stability... • Owner occupancy by building was highest in Little Haiti and Liberty City, with 47% and 44%, respectively. By measuring homeownership at the building level, the DrillDown reveals a greater presence of homeowners in study are neighborhoods. In addition, the DrillDown's estimates for owner occupancy by unit exceeded Census 2000 counts in all five study area neighborhoods. • The value of single family homes increased substantially from Census 2000 values in all study area neighborhoods. The DrillDown estimates the median home sale value at over 300% above the Census 2000 reported value in Wynwood/Edgewater, from $57,000 to $245,000. The DrillDown's estimate is nearly 200% greater than the Census value for Little Haiti. In addition, median home sale values increased by 184% in Overtown, 180% in Allapattah, and 146% in Liberty City. * Census trend projections are modeled market projections derived from census findings that are annually revised based upon historic measures of macro -market performance. Copyright © The Social Compoo. inc. 2007 6 Miami DrillDown • • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods Study area neighborhoods demonstrate safer streets, showing significant drops in crime... • All study area neighborhoods experienced notable drops in reported incidents of violent crime between 2002 and 2005; three neighborhoods saw a decline of 30% or more —Little Haiti, Allapattah, and Wynwood/Edgewater. Additionally, violent crime dropped by 25% in Liberty City and by 15% in Overtown. • Property crime is also down in all study area neighborhoods. In Allapattah and Little Haiti, property crime dropped by 39°Ao and 38%, respectively. Other study area neighborhoods saw significant declines: Overtown's property crime dropped 34%, Liberty City's dropped 31 % and Wynwood/Edgewater dropped by 29%. The DrillDown demonstrates market opportunity in study area neighborhoods... • The DrillDown estimates that a significant proportion of residents are underbanked in study area neighborhoods. For example, nearly half of Overtown residents do not presently have a traditional banking relationship. In each of the study area neighborhoods, the number of individuals lacking vedit histories is over 30%. These findings are supported by survey results from four of the five study area neighborhoods in which over 70% of surveyed individuals in each neighborhood demonstrated a perceived need for banking services in their communities (see page 17). • The DrillDown documented the greatest number of nontraditional financial institutions (pawnshops, payday lenders and check cashers) in Wynwood/Edgewater, where there were 31 nontraditional financial institutions per 10,000 households. Wynwood/Edgewater is also where 87% of surveyed individuals reported making bill payments in cash. Residents in Liberty City and Overtown were also likely to make bill payments in cash, according to survey responses. • Little Haiti, Overtown, and Wynwood/Edgewater had the least number of full service grocers per 10,000 households, in addition, residents in these three neighborhoods travel farther than study area residents to reach a full service grocer. Currently, no full service grocers can be found in Overtown. DrillDown findings are supported by survey results where residents in Overtown and Liberty City cited grocery stores as among those services most needed. Each of the five Miami DrillDown neighborhood markets are dynamic, diverse communities that have experienced significant populaion growth beyond what is documented by Census 2000. Furthermore, the DrillDown estimates roughly 48,000 individuals, more than 7,000 households, are missed by census trend projections. These findings dem- onstrate the extent of the undercount in these neighborhoods. Confronting common misperceptions, all study area neighborhoods exhibit significant drops in reported inci- dents of crime. Meanwhile, increasing home sale values and hot spots of new residential construction indicate the five neighborhoods as stable communities where home- ownership is on the rise. The DrillDown analysis is reinforced by responses from a recent survey, signaling these neighborhoods are prime markets for investment. Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • The number of individuals surveyed varies by neighborhood; the survey conducted has a 95% confidence interval and 4.5 standard of error. * Census trend projections are modeled market projections derived from census findings that are annually revised based upon historic measures of macro -market performance. Copyright © The Social Compact, Inc. 2007 7 Miami DrillDown • 111111 Social Compact Catalyzing Business Investment in Inner City Neighborhoods MARKET SIZE figures indicate a neighborhood's population of residential consumers, effectively describing neighborhood mass and density. Market size is commonly underestimated in inner-city neighborhoods because measurements at the neighborhood level are often outdated or inaccurate. Research has shown that the decennial census is susceptible to under- counting particular areas due to incorrect information; unreturned and incomplete surveys; and missed households and individuals. Population undercounts are more likely to occur in low-income, predominantly minority, urban neighborhoods, where a larger proportion of residents may have language barriers, live in overcrowded housing, and have greater mis- trust of government. Accurate measurements of market size underpin assessments of investment and business potential in neighborhoods. To enhance accuracy, Social Compact's Drill - Down uses data sources compiled on an annual basis to build its profiles. HOUSING UNITS, POPULATION, HOUSEHOLDS: The DrillDown assembles a list of residential addresses from municipal and proprietary tax assessment records, municipal building permit records, utility hookups, and credit bureau records. Households, or occupied units, are determined by multiplying the total number of residential addresses by the vacancy rate, determined through analysis of utility usage records, at the block group level. Total popu- lation is calculated by multiplying the number of households by the average household size and adding this number to the population in group quarters. Average household size and population in group quarters is provided at the block group level by the most recent census trend projections. Persons per Acre 0-10 j11-20 -21-30 -31-40 41-61 City of Miami mg Miami -Dade Co. I Copyright © The Social Compact, Inc. 2007 Total Population % Above Census 2000 1 Overtown 93% 2 Wynwood/ Edgewater 84% 3 Liberty City 54% 4 Little Haiti 39% 5 Allapattah 19% Total Number of Households % Above Census 2000 1 Overtown 51% 2 Wynwood/ Edgewater 36% 3 Liberty City 33% 4 Allapattah 16% 5 Little Haiti 3% Population Density (Persons per Acre) 1 Overtown 2 Little Haiti 3 Allapattah 4 Liberty City 5 Wynwood/ Edgewater 28.9 21.8 20.5 20.5 16 8 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods MARKET STRENGTH/BUYING POWER figures address the population's consumer potential, gauging purchasing power by estimating aggregate income and income density and ad- justing these figures to account for the estimated monetary value of unregulated economic activity (or the informal economy) within a neighborhood. Income estimates provided by the census, and census derived projections, are now outdated and prone to well -understood inaccuracies resulting from self reported income. In contrast, the DrillDown analysis incor- porates the most recent income estimates from the three major credit bureaus. When aggregated to the neighborhood level, higher average household incomes result in concentrated buying power greater than previously understood. Moreover, higher population density in inner-city neighborhoods translates into concentrated buying power that supersedes their suburban counterparts, even in cases where average household incomes are comparatively lower. Traditional market analysis models used by retailers and financial institutions over- look the significant buying power generated by the local informal economy and therefore misinform private sector investment decisions. Information gaps and poor market data can drastically influence the economic prospects of neighborhoods, particularly in low income areas where traditional demographic data does not accurately capture market potential. Accurate measurements of a community's total economic activity may attract new investment and assist policy makers in identifying those barriers that prevent small and medium en- terprises from entering the formal market. Increased information on small businesses operating in under -regulated environments might encourage the engagement of mainstream small business lenders. INCOME; Unadjusted household income estimates are derived in a series of calculations. First, a count is made of the number of individuals per income bracket, as determined by the three credit bureau income estimates. Then, the average income at the block group level is calculated by applying the Bureau of Labor and Statistics Consumer Expenditure Survey's estimated average income for individuals within a particular income range (projected from 2004 to 2006) to the income distribution determined. The third calculation adjusts the income estimate to account for informal economic activity. By weighting the follow- ing eight proxies, the DrillDown estimates the monetary value of unregulated economic activity: house- hold with income below $30,000; difference between household income and household expenditures; the percentage of households with no credit record; the percentage of utility payments made in cash; the number of nontraditional financial service providers per household and per acre; the difference between estimated housing costs and real home values; and the percent foreign born population. Copyright rJ The Social Compact, Inc. 2007 9 Median Household Income % Above Census 2000 1 Wynwood/ Edgewater 59% 2 Little Haiti 46% 3 Liberty City 39% 4 Allapattah 36% 5 Overtown 27% Average Household Income % Above Census 2000 1 Wynwood/ Edgewater 2 Little Haiti 3 Allapattah 4 Liberty City 5 Overtown 61% 50% 41% 34% 27% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods Informal Economy 1 Allapattah 2 Wynwood/ Edgewater 3 Little Haiti 4 Liberty City 5 Overtown 14.6% 1 2.2% 11.9% 9.5% 9.0% Aggregate Neighborhood Income Above Census 2000 1 Wynwood/ Edgewater 2 Overtown 3 Liberty City 4 Allapattah 5 Little Haiti 119% 92% 78% 64% 54% Income Density (Income per Acre) 1 Allapattah 2 Liberty City 3 Little Haiti 4 Overtown 5 Wynwood/ Edgewater $238,410 $213,877 $206,744 $195,586 $135,878 Copyright © Tbc Social Compact, Inc. 2007 Income per Acre I I Up to $130,000 MO $130,001 - $230,000 111. $230,001 - $330,000 ▪ $330,001 - $475,000 11. $475,001 - $697,437 City of Miami ▪ Miami -Dade Co. 0.5 1 2 Miles 1 16 hLi 04, f 1C- 1311 10 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods MARKET STABILITY/RISK indicators further gauge the viability of business investment in a neighborhood; assessing the presence of community stakeholders and demonstrating trends in real estate property values and crime. Through an estimation of owner occupied units and buildings, the DrillDown assesses homeownership, a factor widely thought to increase individual investment in a community. Since a greater proportion of urban housing stock is multi -unit or multi -family, when compared to suburban hous- ing, Social Compact assesses owner occupancy by building and in so doing reveals a greater number of neighborhood stakeholders. For example, a resident who owns a three -unit building may live in one unit while renting out the other two; owner occupancy measured by unit is 33%; whereas occupancy by building is 100%. HOMEOWNERSHIP/OWNER OCCUPANCY: An estimate of the percentage of residential units or build- ings where the unit or building owner is a resident. Matching the mailing and physical addresses pro- vided by municipal tax assessor records indicates owner occupancy. Copyright © The Social Comport, Inc. 2007 1 1 DrillDown % Owner Occupancy by Building 1 Little Haiti 2 Liberty City 3 Allapattah 4 Overtown 5 Wynwood/ Edgewater 47.1% 43.6% 39.1% 27.6% 25.6% DrillDown % Owner Occupancy by Unit 1 Liberty City 2 Little Haiti 3 Allapattah 4 Wynwood/ Edgewater 5 Overtown 34.5% 31.5% 25.5% 18.7% 18.0% Census 2000 % Owner Occupancy by Unit 1 Liberty City 2 Little Haiti 3 Allapattah 4 Wynwood/ Edgewater 5 Overtown 40.9% 28.1 23.8% 1 8.4% 10.7% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk Miami DrillDown • • , Social Compact Catalyzing Business Investment in Inner City Neighborhoods MEDIAN HOME SALE VALUE: Median home sale value is calculated using property transaction data from property sales and proprietary and munici- pal real estate data over an 18 month period. BUILDING RECORDS: New construction and rehabilitation (additions, altera- tions, repairs) is assessed using municipal building permit records for the stated period of time. The DrillDown analyzes building permit activity over time, to potentially capture upward trends in residential construction and renovation, which would indicate property investment and a vibrant housing market. New Residential Construction • 1Dot =1 New Unit City of Miami Miami -Dade Co Median Home Sale Value % Above Census 2000 1 Wynwood/ Edgewater 2 Little Haiti 3 Overtown 4 Allapattah 5 Liberty City 317% 192% 184% 180% 146% Total Number of New Units 2000 - 2006 1 Liberty City 2 Allapattah 3 Little Haiti 4 Wynwood/ Edgewater 5 Overtown 439 341 42 2 0 Total Number of Rehab Permits per 10,000 Households, 2000 - 2006 1 Liberty City 2 Wynwood/ Edgewater 3 Little Haiti 4 Allapattah 5 Overtown 57.4 6.8 6.5 2.0 1.4 Copyright © The Social Compact, Inc. 2007 1 2 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • i Miami DrillDown i Social Compact Catalyzing Business Investment in Inner City Neighborhoods A survey of major retailers identified crime and perceptions of crime as the number one factor influenc- ing retailers' decisions to locate in underserved markets; 93% of respondents viewed crime as a signifi- cant or very significant factor in their location decisions (1). Popular media plays a crucial role in shap- ing perceptions of inner city neighborhoods, disproportionately reporting incidents of crime and exacer- bating existing stereotypes. In contrast, Social Compact analyzes reported incidents of crime over a multi -year period and as related to population density, repeatedly uncovering decreasing crime rates that compare favorably with crime rates across a metro area. CRIME: Social Compact examines crime data at the block group level, as part of its neighborhood risk and stability analysis. Crime statistics, obtained from local police records, are gathered longitudinally to assess trends in documented criminal activity over time. In order to maintain consistency across compari- sons of time and geography, Social Compact uses population and household counts from Census 2000 and not current DrillDown estimates; and employs the Federal Bureau of Investigation's (FBI) Uniform Criminal Reporting (UCR) coding to define property and violent crime (see below). Unless otherwise stated, trends are reported for the start of the earliest year through the end of the latest year for which data was obtained (i.e. "2002 — 2005" is equivalent to January 1 2002 — December 31 2005). VIOLENT CRIME includes reported incidents of murder, forcible rape, robbery, and aggravated assault (in accordance with FBI UCR coding). PROPERTY CRIME includes reported incidents of arson, burglary, larceny/theft, and motor vehicle theft (in accordance with FBI UCR coding). COMMUNITY CRIME includes reported incidents of blighted properties, disorderly conduct, littering, loi- tering, prostitution, trespassing and vandalism. Social Compact designed this indicator to assess visible incidents of crime that, although not typically included in many official crime statistics, may be of particu- lar interest to the business community. (1) Stewart, C. and Morris, A. (2002). Development in Underserved Retail Markets. International Council of Shopping Centers and Business for Social Responsibility. Copyr;ght The Sncial Compact, Inc. 2007 13 Drop in Violent Crime 2002 - 2005 1 Little Haiti 2 Allapattah 3 Wynwood/ Edgewater 4 Liberty City 5 Overtown -32% 31% -30% -25% -15% Drop in Property Crime 2002 - 2005 1 Allapattah 2 Little Haiti 3 Overtown 4 Liberty City 5 Wynwood/ Edgewater -39% -38% -34% -31% -29% Drop in Total Crime 2002 - 2005 1 Allapattah -38% 2 Little Haiti -37% 3 Liberty City -30% 4 Overtown -30% 5 Wynwood/ Edgewater -29% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • Social Compact Catalyzing Business Investment in Inner City Neighborhoods MARKET POTENTIAL is characterized by market anomalies such as high incomes coupled with inadequate financial services and unmet retail demand. While these anomalies may be known intuitively by business leaders in a community, Social Compact DrillDown data provides a more accurate foundation for devising business attraction strategies. Access to tradi- tional financial services and fresh food are essential components of comprehensive community development, yet many mainstream financial institutions and supermarkets tend not to invest in the inner city as they are largely unaware of the economic potential. As a result, many inner city neighborhoods have fewer traditional financial institutions and grocery stores per capita when compared to suburban neighborhoods. TRADITIONAL FINANCIAL INSTITUTIONS include banks and credit unions; based on listings provided by the Federal Deposit Insurance Corpo ation (FDIC), 2007. Persons per Acre I 1 0-10 1E11-20 21-30 -31-40 -41-61 CityciMiari 1111 Miani-DaclaCa • 8ari(er Creit Uricn Total Number of Traditional Financial Instiutions per 10,000 Households 1 Liberty City 2 Overtown 3 Little Haiti 4 Allapattah 5 Wynwood/ Edgewater 2.1 2.4 4.9 5.8 12.5 Average Distance to Traditional Financial Institution (in miles) 1 Liberty City 2 Allapattah 3 Overtown 4 Wynwood/ Edgewater 5 Little Haiti 0.54 0.47 0.42 0.39 0.38 Note: The DrillDown provides information on the presence of traditional and nontraditional financial institutions in order to determine the degree of ac- cess neighborhood residents have to these services. The DrillDown measurement of the number of institutions per 10,000 households is used simply to provide a frame of reference for understanding this indicator. Copyright © The Social Compact, Inc. 2007 1 ,1 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk Miami DrillDown • • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods Limited access to traditional banking and financial services has long been a barrier to wealth creation in marginalized communities. This lack of access often translates to higher costs for basic financial transactions (2). Communities faced with a high presence of check cashing institutions, pay-day loan centers and other predatory financial services providers fall victim to higher transactional fees; a recent study found that "borrowers pay $4.2 billion every year in excessive payday lending fees (3)." HOUSEHOLDS WITH NO CREDIT RECORDS: A proxy for underbanked households, a percentage of households without any associated record in any of the three credit bureaus. NONTRADITIONAL FINANCIAL INSTITUTIONS include check cashers, pawnshops and payday lenders. Total Number of Nontraditional Financial Institutions per 10,000 Households 1 Wynwood/ Edgewater 31.3 2 Allapattah 14.2 3 Liberty City 5 4 Little Haiti 4.9 5 Overtown 0 To of Households without Credit Histories 1 Overtown 2 Wynwood/ Edgewater 3 Liberty City 4 Allapattah 5 Little Haiti 45.0% 41 .0% 39.0% 38.0% 37.0% Persons per Acre 0 I I 0-10 - 11-20 -21-30 - 31-40 - 41 - 61 City of Mau Mianti-Dade Co. • Nontrad Firwnical Irst. (2) Barr, M. (2004). Banking the Poor: Policies to Bring Low -Income Americans Into the Financial Mainstream. Washington, DC: The Brookings Institution. (3) King, U., Parrish, L. & Tanik, O. (November 2006). Financial Quicksand: Payday lending sinks borrowers in debt with $4.2 billion in predatory fees every year. Center for Responsible Lending: Durham, NC. Copyright © The Social Compact, Inc. 2007 15 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown • • Social Compact Catalyzing Business Investment in Inner City Neighborhoods An absence of affordable, quality food does not necessarily result from lack of market demand and can lead to demonstrable health complications such as obesity, diabetes and hypertension (4). Understanding the demand for groceries in communities is essential to development professionals and legislators as many urban areas have begun crafting incen- tives for grocers to locate in their communities. The DrillDown quantifies unmet market demand as the difference between grocery store revenue and estimated expenditures. This calculation, coupled with buying power and aggregate income estimates, demonstrates and promotes opportunities for both full service grocery stores and financial services develop- ment in underserved neighborhoods. L 10-10 011-20 -21-30 -31-40 -41-61 Cityd Mia rd Miami -Dade Co. 0 Full SmiceGoca Total Number of Full Service Grocers per 10,000 Households 1 Overtown 2 Little Haiti 3 Allapattah 4 Liberty City 5 Wynwood/ Edgewater 0.0 0.2 0.4 0.4 0.8 Average Distance to Full Service Grocer (in miles) 1 Wynwood/ Edgewater 2 Liberty City 3 Overtown 4 Allapattah 5 Little Haiti 0.74 0.68 0.67 0.66 0.65 GROCERY ANALYSIS: The DrillDown analysis of grocery providers is based on the following three categories: (1) national/regional chain grocers; (2) smaller grocers, including local, independent, fresh vegetable markets, ethnic markets; and (3) all grocers, including establishments identified as grocery stores and supermarkets according to NAICS; derived from business -level proprietary data. AVERAGE DISTANCE: Distances are calculated from the blockgroup centroid to the nearest establishment. (4) Gallagher, M. (2006). Examining the Impact of Food Deserts on Public Health in Chicago. Research and Consulting Group. Cop yrlght © The Social Compact, Inc. 2007 16 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • Miami DrillDown Survey Results Perceived Need for Banks • 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Very Needed Liberty City Little Haiti Overtown Wynwood 33.4% 32.3% 45.9% 42.8% • Somewhat Needed 37.2% 41.5% 38.6% 33.8% e Not Needed 25.0% 26.3% 15.4% 21.9% Perceived Need for Grocery Stores 80.0% 70.0% - 60.0% - 50.0% - 40.0% - 30.0% - 20.0% - 10.0% - 0.0 Very Needed Liberty City Little Haiti Overtown Wynwood 60.6% 46.8% 70.7% 31.3% • Somewhat Needed 27.7% 35.6% 22.3% 38.8% • Not Needed 11.7% 17.6% 7.0% 28.4% Copyright © The Social Compact, Inc. 2007 • Social Compact Catalyzing Business Investment in Inner City Neighborhoods Bill Payment Methods 100.0% - 60.0% - 60.0% • 40.0% • 20.0°:. 0.0% Cash i Liberty City 83.5% Little Haiti 76.6% Overtown 79.9% Wynwood 87.0% ■ Pay Day Loans 16.6% 42.9% 9.8% 10.8% • Credit Canis 27.0% 56.2% 20.9% 37.3% • Check cashing facilities 46.3% 63.2% 16.7% 29.9% Personal Checks 26.8% 50.0% 29.8% 43.9% 18 Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • • SOCIAL COMPACT 738 7`" STREET, SE • WASHINGTON, DC 20003 • P 202.547.2581 F 202.547.2560 • WWW.SOCIALCOMPACT.ORG A) DRILLDOWN FINDINGS AREA AND UNITS Neighborhood Mir Units (Censusj (Trend Projections 206) Units (Q(]Qowni .,Projections) Units (DD vs Acres Study Area 8197.76 45,075 47,187 51,968 10% Allapattah 2458.24 14,307 15,311 16,579 8% Liberty City 2416.64 12,386 12,541 15,659 25% Little Haiti 1962.88 11,635 12,179 11,079 -9% Overtown 545.28 3,963 4,344 4,911 13% Wynwood- Edgewater 814.72 2,784 2,812 3,740 33% # OF HOUSEHOLDS Neighborhood Household Size (Census) Household Size (Trend Projections 2006) Household Size (DrillDowri, Household Size (DD vs Projections) Study Area 39,037 40,118 47,168 18% Allapattah 13,336 14,120 15,440 9% Liberty City 10,643 10,588 14,115 33% Little Haiti 9,924 10,167 10,220 1% Overtown 2,791 2,934 4,202 43% Wynwood- Edgewater 2,343 2,309 3,191 38% Board of Directors • Joseph Reppert, Chairman, Vice Chairman, First American Real Estate Information Services, Inc. David H. Katkov, Vice Chairman, Executive Vice President The PMI Group, Inc. President and Chief Operating Officer, PMI Mortgage Insurance Co. Mary Lee Widener, Immediate Past Chairperson; President and CEO, Neighborhood Housing Services of America Clayton Adams, Vice President, Community Development, State Farm Fire & Casualty Company Joe Belew, President, Consumer Bankers Association Rebecca A. Craft, Director, Energy Efficiency Programs, Consolidated Edison Company of New York, Inc. Lisa Glover, Senior Vice President; Director, Community Development and Fair Lending, US Bank Ron Guggenheimer, Senior Vice President, Citi Analytics; Senior Director, Citigroup Global Consumer Group NA W. Roger Naughton, Chairman, The PMI Group, Inc. JoAnn Kane, Vice President and Chief Operating Officer, Faithworks, Inc. Preston Martin, Chairman, Martin Associates Former Vice Chair, Federal Reserve System Michael R. McGuire, President and CEO, Affinity Bank Robert A. McNeely, Executive Vice President, Union Bank of California; Chairrnan and CEO, Union Bank of California Foundation Bruce D. Murphy, Executive Vice President, KeyBank National Association; President, Community Development Banking, KeyCorp Jeff Rosen, Executive Vice President, Business Banking Group Manager, Huntington Bank Dean Schultz, President and CEO, Federal Home Loan Bank of San Francisco John B. Talmage, President and CEO, Social Compact Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • POPULATION Population Neighborhood (Census) Population (Trend Projections 2006) Population (DrillDown) Difference (DD vs Projections) 39% Stuay Area 120,378 123,285 171,470 Allapattah 42,204 44,788 50,288 12% Liberty City 32,191 31,845 49,547 56% Little Haiti 30,747 31,174 42,847 37% Overtown 8,178 8,575 15,780 84% Wynwood- Edgewater 7,058 6,903 13,008 88% POPULATION DENSITY Neighborhood Population/ Acre (DrillDown) Population/ Acre (Census) Population! Acre (Trend Projections) Study Area 20.9 14.7 15 Allapattah 20.5 17.2 18.2 Liberty City 20.5 13.3 13.2 Little Haiti I 21.8 15.7 15.9 Overtown 28.9 15 15.7 Wynwood- Edgewater 16 8.7 8.5 AVERAGE HOUSEHOLD INCOME Neighborhood Informal Economy Average HH Income (DrillDown) Average HH Income (DrillDown) Ma& Average HH Income (Census) Average HH Income (Trend Projections 2006) Difference (DD/ Trend Projections Average Informal Economy Study Area 11.60% $32,703 $36,594 $26,088 $28,306 29% $3,892 Allapattah 14.60% $33,118 $37,957 $26,850 $29,055 31% $4,839 Liberty City 9.50% $33,440 $36,619 $27,308 $28,916 27% $3,178 Little Haiti 11.90% $35,478 $39,707 $26,547 $29,650 34% $4,229 Overtown 9.00% $23,293 $25,381 $19,933 $21,060 21% $2,088 Wynwood- Edgewater 12.20% $30,928 $34,689 $21,596 $24,218 43% $3,762 AGGREGATE INCOME Ne ghborhood Aggregate HH Income SDrillDown) . Aggregate HH Income w/ I.E. (DrillDown) Aggregate HH Income (Census) Aggregate HH Income (Trend Projections) Difference (DD vs. Trend Projections) Aggregate Informal Economy Aggregate HH Income/Acre (DrillDown) study Area 1,542,522,141 1,726,097,778 1,018,387,627 1,135,567,500 52.0% $183,575,637 $210,557 Allapattah 511,351,545 586,068,015 358,069,515 410,250,000 43.0% $74,716,471 $238,410 Liberty City 472,007,584 516,864,913 290,635,827 306,157,500 69.0% $44,857,329 $213,877 Little Haiti 362,589,430 405,813,761 263,450,612 301,450,000 35.0% $43,224,331 $206,744 Overtown 97,875,522 106,648,890 55,632,284 61,790,000 73.0% $8,773,368 $195,586 Wynwood- Edgewater 98,698,061 110,702,199 50,599,390 55,920,000 98.0% $12,004,138 $135,878 Submitted into the public record in connection with item 811.1 on 09-10-09 Priscilla A. Thompson City Clerk • • • MEDIAN HOUSEHOLD INCOME Neighborhood Median HH Income (DrillDown) Median HH Income (Census) Median HH Income (Trend Projections 2006) Difference (DD vs Projections) Study Area $26,590 $18,833 $21,138 26% Allapattah $27,304 $20,072 $22,696 20% Liberty City $27,335 $19,596 $21,320 28% Little Haiti $30,335 $20,772 $24,062 26% Overtown $14,405 $11,382 $12,444 16% Wynwood- Edgewater $24,141 $15,164 $17,250 40% EXPENDITURES Neighborhood All Expenditures Retail Expenditures Grocery Expenditures_ $131,554,718 Study Area $1,493,983,776 $709,471,536 Allapattah $493,350,827 $234,256,968 $43,429,181 Liberty City $452,876,352 $214,770,257 $39,651,233 Little Haiti $339,735,088 $160,721,930 $29,371,975 Overtown $110,120,364 $53,115,577 $10,370,886 Wynwood- Edgewater $97,901,145 $46,606,804 $8,731,443 OWNER OCCUPIED BUILDINGS AND UNITS Neighborhood Owner Occupied Buildings (DrillDown) Owner Occupied Units (DrillDown) Owner Occupied (Census) Owner Occupied Trend Projections (2006) Study Area 41.2% 28.4% 28.3% 28.5% Allapattah 39.1% 25.5% 23.8% 24.0% Liberty City 43.6% 34.5% 40.9% 41.5% Little Haiti 47.1% 31.5% 28.1% 28.5% Overtown 27.6% 18.0% 10.7% 11.1 % Wynwood- Edgewater 25.6% 18.7% 18.4% 18.2% MEDIAN HOME VALUES Neighborhood Median Home Value (DrillDown) $177,309 Median Home Value (CensusL Median Home Value (Trend Projections 2006) Difference (DD vs. Trend Projections) Study Area $62,333 $125,044 42% Allapattah $227,000 $81,123 $159,730 42% Liberty City $146,000 $59,459 $109,731 33% Little Haiti $180,000 $61,552 $124,003 45% Overtown $92,000 $32,433 $88,435 4% Wynwood- Edgewater $245,000 $58,689 $134,202 83% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • FINANCIAL INSTITUTIONS 1 Neighborhood Underbanked Banks Banks/ HH Banks /capita Credit Unions Credit Unions/ HH Credit Unions/ Capita 0.3 Study Area 39% 17 3.6 1 5 1.1 Allapattah 38% 6 3.9 1.2 3 1.9 0.6 Liberty City 39% 2 1.4 0.4 1 0.7 0.2 Little Haiti 37% 4 3.9 0.9 1 1 0.2 Overtown 47% 1 2.4 0.6 0 0 0 Wynwood- Edgewater 41 % 4 12.5 3.1 0 0 0 FINANCIAL INSTITUTIONS Neighborhood Traditional Financial Institutions Traditional Financial Institutions/ HH Traditional Financial Institution/ Capita Non Traditional Financial Institutions Non Traditional Financial Institutions/ HH Non Traditional Financial Institutions/ Capita Non Traditional to Traditional Study Area 22 4.7 1.3 44 9.3 2.6 2 Allapattah 9 5.8 1.8 22 14.2 4.4 2.4 Liberty City 3 2.1 0.6 7 5 1.4 2.3 Little Haiti 5 4.9 1.2 5 4.9 1.2 1 Overtown 1 2.4 0.6 0 0 0 0 Wynwood- Edgewater 4 12.5 3.1 10 31.3 7.7 2.5 CRIME PER CAPITA Neighborhood Property Crime /Capita Violent Crime/Capita Total Crime/Capita Study Area 42 9 51 Allapattah 41 7 47 Liberty City 33 8 40 Little Haiti 45 10 55 Overtown 38 14 52 Wynwood- Edgewater 88 14 102 CRIME CHANGE Neighborhood Property Crime Change Violent Crime Total Crime Change Change Study Area -36% -28% -35% Allapattah -39% -31% -38% Liberty City -31% -25% -30% Little Haiti -38% -32% -37% Overtown -34% -15% -30% Wynwood- Edgewater -29% -30% -29% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk • CRIME VS. CITY Neighborhood Property Crime vs. City i Violent Crime vs. City Total Crime vs. City Study Area 5% 2% 5% Allapattah 1% -1% 1% Liberty City 9% 5% 9% Little Haiti 2% -2% 2% Overtown 6% 15% 9% Wynwood- Edgewater 12% 0% 10% B) SURVEY FINDINGS AVERAGE HOUSEHOLD SIZE Average HH Neighborhooa Size Average Household Size (Trend Projections 2006) Study Area 3.47 2.88 Allapattah 2.89 2.78 Liberty City 3.51 3 Little Haiti 4.09 2.96 Overtown 3.61 2.71 Wynwood- Edgewater 3.95 2.82 Bill Payment Methods Neighborhood Cash Pay Day Loans Credit Cards Check cashing facilities Personal Checks Liberty City 83.5% 16.6% 27.0% 46.3% 26.8% Little Haiti 76.6% 42.9% 56.2% 63.2% 50.0% Overtown 79.9% 9.8% 20.9% 16.7% 29.8% Wynwood 87.0% 10.8% 37.3% 29.9% 43.9% Perceived Need for Additional Banks Neighborhood Very Needed Somewhat Needed Not Needed Liberty City 1 33.4% 37.2% 25.0% Little Haiti 32.3% 41.5% 26.3% Overtown 45.9% 38.6% 15.4% Wynwood 42.8% 33.8% 21.9% Perceived Need for Additional Grocery Stores Liberty City Little Haiti 60.6% 46.8% 27.7% 35.6% 11.7% 17.6% Overtown 70.7% 22.3% 7.0% Wynwood 31.3% 38.8% 28.4% Submitted into the public record in connection with item BH.1 on 09-10-09 Priscilla A. Thompson City Clerk