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HomeMy WebLinkAboutERA Draft Project Report for Little Haiti Industrial Priority Development Area AnalysisERA Economics Research Associates DRAFT DRAFT Draft Project Report Little Haiti Industrial Priority Development Area (PDA) Analysis Prepared for Miami 21 City of Miami Duany Plater-Zyberck DRAFT DRAFT Submitted by Economics Research Associates June 2, 2006 ERA Project No. 16068 1101 Connecticut Avenue, NW Suite 750 Washington, DC 20036 202.496.9870 FAX 202,496.9677 www.econres corn Los Angeles San Francisco San Diego Chic-0go Washington DC London New York ERA DRAFT Table of Contents General & Limiting Conditions 2 Introduction 3 What is a Priority Development Area (PDA)? 4 Governing Principles for Economic Development 5 How Does the Little Haiti Industrial PDA Relate to the Miami 21 Planning Process? 6 Map of Little Haiti Industrial PDA 9 Industry Sectors and Land Uses 10 Industry Sectors Considered for Miami PDAs 10 Land Uses/Development Policies 12 Approach to Development within the Little Haiti Priority Development Area 14 Targeted Industries Not Considered for Little Haiti Industrial PDA 14 Development Challenges Facing the Little Haiti Industrial PDA 16 Jobs and the Economics of Employment 18 Analytical Framework 20 Targeted Industries for Little Haiti PDA 24 Near -Term Industrial Sectors for Little Haiti 24 Mid -Term Industrial Sectors 25 Overview of Fiscal & Economic Impact Analysis 28 Summary of Economic and Fiscal Drivers 28 Methodology and Approach 28 Base Assumptions 29 Real Property Tax Revenues 30 Sales and Use Taxes 30 Tax and Fee Revenues Excluded from the Analysis 31 General Fund Public Service Costs 32 Ili. Economic & Fiscal Implications of Proposed Transect Plan 34 Introduction 34 Basis for Property Tax Valuation 34 Summary of Table Footnotes 34 Little Haiti Priority Development Area (PDA) .. 37 Little Haiti Priority Development Area 38 Summary of Table Footnotes 38 Summary of Tables and Analytical Findings 38 Current and Proposed Employment Characteristics 43 Current and Anticipated Fiscal Characteristics 45 Summary of Economic & Fiscal Findings 47 Implementation Recommendations 48 Incentives 50 Workforce Training Incentives 50 Additional Tools 51 APPENDICES: Supporting Tables 52 Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 1 ERA DR FT General & Limiting Conditions Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible. These data are believed to be reliable. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the market and the industry, and consultations with the client and its representatives. No responsibility is assumed for inaccuracies in reporting by the client, its agent and representatives or any other data source used in preparing or presenting this study. No warranty or representation is made by Economics Research Associates that any of the projected values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name of "Economics Research Associates" in any manner without first obtaining the prior written consent of Economics Research Associates. No abstracting, excerpting or summarizing of this study may be made without first obtaining the prior written consent of Economics Research Associates. This report is not to be used in conjunction with any public or private offering of securities or other similar purpose where it may be relied upon to any degree by any person, other than the client, without first obtaining the prior written consent of Economics Research Associates. This study may not be used for purposes other than that for which it is prepared or for which prior written consent has first been obtained from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 2 ERA D AFT Introduction Economics Research Associates (ERA) was retained by the City of Miami and Duany Plater-Zyberck & Company to complete an analysis of designated targeted industries and land uses and to form the basis for a Citywide economic development strategy tasks under the Miami 21 Plan. Part of that analysis focuses on specifically designated geographic areas called Priority Development Areas, or PDA's. The Miami 21 Plan is intended to provide a framework for both planning/urban design and economic development strategies that will create both a clear planning direction and an element of predictability for how Miami should grow and evolve over time; both elements should also integrate sound economic development principles and implementation steps grounded in local market conditions and opportunities. The urban design and planning framework of the Miami 21 Plan has been structured as a series of Transects, land areas that vary according to the amount and type of development proposed as appropriate for both current zoning and future redevelopment opportunities, as well as providing for predictable development transitions between adjoining areas of the City. The economic development plan is structured to direct certain land uses and densities to particular locations and areas as a basis for near -term and longer -term economic development strategies. The Miami 21 Plan has been organized to address these issues within four large quadrants — East, West, North and South. The first quadrant selected by the City for analysis by DPZ and ERA (and other consultants) is located in the eastern part of Miami, and including the portion of the city from the Broward County line down the waterfront through the Central Business District and Brickell Boulevard, and west to approximately Seventh Avenue. A map of the quadrant boundaries is located on the Miami 21 website (www Miami21. org). This report focuses on the Little Haiti Industrial Priority Development Area (PDA), and includes several components: The role and definition of a Priority Development Area is based on an broader economic development perspective, not simply on a real estate development perspective The relationship of the PDA area analysis to the overall Miami 21 Plan as it intersects with city's larger Economic Development objectives Site and employment development opportunities used to define the economic development approach and implications for land uses - Economic patterns in industry sectors recommended for the PDA and the economics of employment resulting from targeted industries - Consistency between recommended economic uses and the relative potential densities linking the economic development strategy to the Miami 21 plan and the proposed transect characteristics in Little Haiti Ind ustrial Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 3 ERA D a FT - Fiscal and Economic implications resulting from the recommended uses and densities - Implementation Recommendations — Recommendations on what will be required to implement the project and what tools and incentives can accelerate the process Following these sections, an Appendix includes supporting tables and charts documenting the backup information supporting the analytical methodology and process and data assumptions used in developing the analysis. What is a Priority Development Area (PDA)? After completing an overview of industry sectors and land uses as a basis for near and long-term economic development opportunities, ERA was asked to identify specific areas for further study which we called Priority Development Areas, or PDA's. The Miami 21 PDA is defined as A Specified Location and Use Character -- A geographically designated area, identified within specific boundaries and including one or more dominant existing land or primary economic drivers that characterize the land use and density today or could catalyze a different use in the future. In the Little Haiti and Wynwood PDA's, the current industrial zoning and density clusters businesses that would not have other relocation options within the city. - Manageable Barriers to Development -- Barriers to development should be manageable, that is, incompatible adjacent uses and/or development opportunities can be mitigated through a system of transitional uses and densities under the Miami 21 development code. An example relevant to the Little Haiti industrial area is the site known as Little Haiti Park. The barrier to redevelopment of this site is incongruent nature of the surrounding industrial uses and the City's commitment to the park as a neighborhood amenity. This barrier is easily managed by changing the zoning around the park to T4 Restricted (Residential), a more compatible use with the park. Proximity to Planned/Pending/Pipeline Projects — PDA's should have some proximity to planned or pending projects in the development `pipeline' that can affect compatible changes in density or use. This could either be an upgraded version of the primary economic drivers or a land use and density that will increase the level of development in a way that will not conflict with the primary land use. This approach to proximity is consistent with the planning principles of Miami 21. Economics Research Associates Little Matti industrial Priority DeveEopment Area (PDA) Analysis Pro}ect 16068 4 ERA D AFT Presence of Natural or Physical Characteristics That Create Continuity, Amenities or Infrastructure That Affect Development Potential — For example, in both Little Haiti Industrial and Wynwood, the presence of the FEC rail line and proximity to major road networks suggests continued clustering of uses that benefit commercially from adjacency to rail access and truck connections on highways. Neighborhood or Cultural Cohesion — To the extent that industrial concentrations can be considered a "neighborhood", both PDA's are industrial districts_ While change could come over time, the synergistic benefit of sustaining these types of industrial uses will translate into jobs (a core benefit of economic development policy). Two areas were selected as PDA's in the East Quadrant: Wynwood and Little Haiti Industrial. The overall principles used in identifying these (and potential future) PDA's are based on the premise that the city's economic development approach should be based on opportunities to sustain and attract jobs — creation of jobs, retention of existing jobs, improvement in the pay scale of existing and potential jobs or attraction of new jobs drawn by industry sectors that make sense for the characteristics of the PDA. In ERA's view, this economic development principle does not mean that real estate project development potential is not considered, but rather that the longer view of benefits attributable to a diverse, focused job development program should be considered of equal importance to projects driven by values associated only with real-estate. Governing Principles for Economic Development ERA's mandate from the City of Miami for the Miami 21 Planning effort has been to take a comprehensive, longer view of how to diversify and stabilize the economic character of the City. The objective has not been to maximize the real estate development potential of the PDA areas. This is an important distinction, as real estate has been a primary economic driver (some might say the primary economic driver) in Miami since its founding. Historically, residential and commercial real estate development and speculation has been a major force in creating and evolving the South Florida region, coupled with establishment and growth of the area as a national and international tourism/hospitality destination. Both of these industries have grown rapidly in the past ten years, and the accelerated growth in the Miami housing market has made the City one of the fastest growing residential areas in the United States with almost 80,000 recent and proposed new dwelling units in the development pipeline. ERA recognizes that this should remain a major factor in the south Florida region's growth and tax base. However, in our opinion, real estate services and the hospitality industry (cruise ships, hotels and lodging, dining and entertainment) do not represent the full spectrum of economic development opportunities in the region, but have had a disproportionate effect on how the city has grown, and have dominated growth areas, absent a more comprehensive, long-term economic development strategy within City government. The overarching principle of ERA'S economic development analysis is to protect and broaden the range of jobs available in areas of the city that have functioned as Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 5 ERA a industries (ranging from manufacturing and distribution uses clustered in a few areas like Little Haiti and Wynwood through the class A office concentration that defines downtown Miami as the commercial office heart of the region). in our experience, real estate cycles change over time, and the more dependent local economies are on one or two segments But the City's objective is also to take a more comprehensive view of economic development, which is by its nature, oriented toward jobs, rather than exclusively on real estate. Based on the rationale described in the Jobs and Economics of Employment section of this report, ERA's jobs -oriented focus has been a governing principle for the Priority Development areas. How Does the Little Haiti industrial PDA Relate to the Miami 21 Planning Process? There are two related efforts in the Miami 21 Planning effort. Duany Plater-Zyberck & Company have analyzed existing land uses and densities throughout the East Quadrant, while ERA has conducted a parallel economic development analysis that has focused on existing and potential strategies to retain and attract jobs to traditional employment centers. The two efforts have been integrated through a series of work sessions between ERA, the City of Miami and DPZ, but ERA's primary objective is to analyze how a comprehensive economic development strategy can shape the planning process to the benefit of a more stabile and diversified employment sector for the city. The Miami 21 Planning process offers a New Urbanism approach to prioritizing future growth along primary streets and development nodes, and reinforcement of existing activity areas. Through a series of Transects ranging from undeveloped rural land (of which the only example within the City lirnits is on Virginia Key) through high rise/high density office/mixed-use (such as downtown Miami), the planning process has identified a series of classifications that relate to current zoning and land use, as well as detailing a form code/density and land use designation that relates development patterns to be compatible with adjoining/neighboring areas. The Miami 21 Plan also includes a provision for `Successional Zoning', under which areas designated for one density level and use mix (defined in the selected Transect category) may be changed to accommodate changes in use and density over time. The two categories not yet fully formed under the form -based code are the two Transect categories that relate to land currently zoned as Industrial; these Transects are called Districts (D-1, representing `light' or Specialized Industrial uses, as well as a limited amount of housing and other supporting uses that complement industrial concentrations; and D-2 Heavy Industry, or uses that may be considered more noxious and Tess complementary to other kinds of uses). For purposes of the economic and fiscal analysis, ERA recommends that the maximum building height for the D-1 and D-2 categories be limited to 45 feet, whether occupied by one floor of space with high ceilings (such as a manufacturing facility requiring a high ceiling) or up to four floors of warehousing. ERA also recommends that the preferred lot coverage ratio for the industrial area conceptual development examples included in the D-1 and D-2 areas should range from 65% to 85% of gross surface land area, in order to accommodate truck traffic and vehicle parking areas, storage of products (as required for the allowed businesses) or other Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 6 ERA RAFT uses. For purposes of the analysis, ERA has included this option in the conceptual development programs shown in the Fiscal analysis. DPZ has suggested that a limited amount of housing be allowed for inclusion in the D-1 category, whether based on one unit per industrial parcel (which could be considered to penalize larger parcels since the same allowance would be available to smaller sites) or as a maximum percentage of gross floor area (but limited enough to allow space for a very small number of on -site units). As a practical matter, ERA also recommends that, if a limited amount of housing is allowed within D-1 areas, the development rights to those allowed units may be available to be sold and aggregated in locations deemed appropriate within the designated D-1 zone, or potentially combined into adjoining commercial or transit corridors in order to allow industrial property owners who might not want to include a housing unit on site to benefit from the availability of the use. As the intent of the D-1 category is to preserve and sustain industrial uses, ERA believes that the number and location of housing within industrial categories should be carefully placed and controlled so as not to shift the economic balance away from industrial spaces (and the jobs they support). In ERA's opinion, greater concentrations of housing should he part of a site re -designation to a different Transect category allowing a different mix and density of uses. In other words, any housing allowed in the D-1 areas should not tip the balance (and expectations of higher density zoning) away from industrial uses and the jobs they represent. These suggestions (or a variation of them) are expected to be incorporated into the Miami 21 Transect descriptions and form -based code for D-1 and D-2 areas as they are modified over the coming weeks. ERA anticipates that the physical planning aspects of the form - based code remain to be analyzed by DPZ, and will be adopted as part of the further definition of the D-1 and D-2 categories after review by the City of Miami Department of Economic Development and the Planning Department, among others. The economic development objective is to encourage job retention and development, with real estate economics balancing the jobs program, but not precluding it. The original Transect plan proposed for the Little Haiti Industrial PDA included T5R, D-1 and D-2 designations, with the D-2 Heavy Industrial area located in the eastern portion of the PDA along the FEC alignment. This is a logical area to retain as D-2, as the recently consolidated McArthur Dairy complex is in this part of the PDA, as well as a cement plant, both uses that fall under the Heavy Industry category. The activity of the rail lines have not prevented Tight/Specialized Industrial uses from locating along the eastern edge of the FEC; many of the uses in the small industrial buildings there are media -related (small production offices, recording studios, etc.), and these uses buffer the adjoining neighborhood to the east from the train corridor. ERA recommends that this small strip of uses remain as D-1 Specialized Industrial. The east -west rail spur also includes a small D- 2 area north of the McArthur Dairy, extending north to the top of the PDA boundary (please see map which follows). The area in which ERA and DPZ have discussed a change in the Little Haiti Industrial designation is in the southern portion of the PDA in the area surrounding the new Little Economics Research Associates Little Haiti industrial Priority Development Area (PDA) Analysis Project 16068 7 ERA Haiti Park and the former Magic City site where a trailer park has been closed and demolished. From a planning standpoint, ERA believes that the City's investment in the new Little Haiti Park is incompatible with adjacent industrial uses, and should be changed to capture some of the amenity value of the park for residential use. Citizens groups have asked for residential development that would provide "eyes on the park" for safety and to create an amenity for residents. ER.A concurs, and recommends that the north, east and southern perimeters of the park be re -designated as T-4 R, supporting 2-3 levels of housing and parking as a buffer from the D-2 area to the north and surrounding the new park. Because this will intersect the current contiguous location of the D-2 Heavy Industrial zone in this part of the PDA, ERA also recommends that the former Magic City site be considered for higher density housing (T-5 R). This scenario was included as one of the conceptual development program scenarios in the economic and fiscal analysis, and generates a high fiscal return owing to its increase in density over the former trailer park. As these areas are reconsidered, ERA suggests that the area immediately south of the Magic City might also be re -assigned from D-2 to a T-4 R designation. As almost all of the surrounding area is designated as residential ((T-4, T-5 and T-6), this suggests that the dominant use within this part of the PDA could be re -allocated to reinforce the residential development pattern. Assuming concurrence by DPZ and the City, the Transect map will be modified to reflect the recommended changes in land use and density. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Protect 16068 8 Little Haiti PDA DRAFT ERA FT Industry Sectors and Land Uses As part of the Miami 21 process, the City of Miami requested that Economics Research Associates (ERA) prepare brief papers analyzing opportunities for specific industries, land uses, and development policies supporting specific objectives. These reports included case study data documenting proven strategies on how Miami can attract, recruit and sustain the strongest prospective industries and/or most needed land -uses within the Miami 21 Plan, ERA has also worked with Duany Plater-Zyberk (DPZ), the planning and architectural consultant developing the revisions to the zoning code, to integrate market and development opportunities into the recommended the form -based code that will direct future planning and growth in a series of designated Priority Development Area's (PDAs). Based upon ERA's general industry data and research, specific economic conditions in the City of Miami and the Miami -Dade MSA and recommendations from City of Miami officials and DPZ, ERA selected the following industry sectors and land uses or public policy directions for further research and consideration. Industry Sectors Considered for Miami PDAs The industry sectors researched and considered for their economic potential for priority development areas in the City of Miami were: I. Motion Picture and Media Production — Included in this category were industries in the Motion Picture and Sound Recording Industries sub -sector group (NAICS 512) such as establishments involved in the production and distribution of motion pictures and sound recordings. In addition to motion pictures, this industry sector also includes production of product for television broadcasting. Miami -Dade County represents the largest concentration of motion picture and television production employment and activity in the State of Florida. While the industry is found throughout the metro area, operators have expressed interest in locations between Miami Beach and Miami International Airport, positioning the City of Miami to continue to build its position as a favorable location for the industry in the metro region. ERA has identified short and mid-term opportunities for Miami to continue to develop as a production center recognized at both the national and international level. 2. Biomedical Technology — The Bio-Medical Industry typically includes Pharmaceutical and Medicine Manufacturing (NAICS 3254), Medical Equipment and Supplies manufacturing (NAICS 3391), Medical Laboratories (NAICS 621511), and Biomedical Research (NAICS 541710). The industry can also include the genetic engineering of food and fibers, food processing, chemical engineering and bio- computers. Within the past decade the biotechnology industry has proven to be lucrative, and as a result many cities are aggressively and proactively recruiting biotech companies and other life science industries with various other incentives. In the broadest sense, a biotech industrial center needs to have stable and strong research and commercialization practices. Key determinants for developing a biomedical technology center are, proximity to an established biotech industry and excellent academic research institutions, a location in which they can research, produce, market Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 10 ERA DAFT and distribute their products, technologically adequate facilities, highly educated and skilled labor, and venture capital. The presence, absence and nature of these factors greatly influence the location and success of biotechnology companies. While Miami has a few biotechnology companies, university and medical research facilities, it is still limited in its biomedical industrial opportunities. 3. Tourism and Hospitality — The Miami area, with its beaches, restaurants, clubs, shopping and commerce, is an ideal city for hospitality and tourism. Tourism and hospitality -related industries include a wide range of Accommodation and Food Services industries (NAICS 72), Arts, Entertainment, and Recreation (NAICS 71) industries, and selected Transportation (NAICS 48-49) sub -sectors. The city of Miami contains more than 150 hotels and 20,000 hotel rooms. In 2004, 2,986,600 tourists visited Miami and created an overall economic impact of $2.3 billion. Miami's development strategy for the tourism and hospitality will include strengthening and expanding its current market position, including leisure and business travel. 4_ Light (Specialized) Industry, Manufacturing, and Warehousing/Distribution Systems — A wide range of industries and sectors are represented in this group to be considered for PDAs. The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing. (NA1CS 31-33). Some distinction has been made for light, or specialized, industries that may be located in the D-1 Transect zoning areas within specified industrially oriented areas. Light industrial manufacturing is usually less capital intensive than heavy industry, and is more consumer -oriented than business -oriented (i.e., most of light industry products are produced for end users rather than as a component of goods produced by other industries). Light industry has less environmental impact than heavy industry and is typically more tolerated in residential areas. Site selection decisions relating to light industrial manufacturing/warehouse and distribution operations are driven by a series of economic and physical variables that are related to the cost of doing business. These variables include availability of competitive facilities and land, skilled labor, and business incentives provided by state and local jurisdictions. Access to transportation systems and distribution channels and markets are also important. 5. International Trade and Finance - International trade is the exchange of goods and services across international boundaries or territories. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on increasing the volume of international trade and the globalization of the world economy. Major requirements for attracting international trading partners including: free -trade zone status that enable businesses to store, ship, import, export, and process, increasing rate of total trade volume, international banking capacity, in- state origin exports: Volume of manufacturing and services exports and associated job growth, transportation infrastructure including seaports, airports, multimodal connectors, and roadways, international air passenger volume, foreign language, speaking workforce, and the value of international investments. Miami is second only Economics Research Associates Little Haiti Industrial Priority Development Area (FDA) Analysis Project 16068 11 ERA DAFT to New York in the number of international banks and finance companies in the U.S. With the port facilities, international investment and international profile, Miami is positioned to increase its international trade. Using Miami's international trade position to support the growth of other sectors may be a valid strategy in several PDAs. 6. Venture Capital - Venture capital is money provided by professionals who invest alongside management and innovators of start-up companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for newly formed companies attempting to become established, expand lines of business or open new markets. While Miami has a limited number of venture capital funds, its strong international banking sector offers an opportunity for the development of more venture capital. Venture capital is not geographically restricted as an industry, however the development of venture capital funds in Miami can support specific industrial development objectives in various PDAs across the City. 7. Marine Industries — Marine industries include a wide range of sectors, including (but not limited to) marinas (NAICS 713930), support activities for water -based transportation (NAICS 488390), ship building and repairing (NAICS 336611), marine cargo handling (NAICS 488320), and marine supplies, pleasure, merchant wholesalers (NAICS 423910). While not all PDAs might have water access and are not suitable for some maritime industries, there are some subsectors that do not require immediate access to water that can be accommodated in industrial districts (DI and D2). Land UseslDevelopment Policies In addition to industrial sectors, ERA was directed to research the economic development implications of four specific land uses or public policy directions. Some were more tied to geography and specific locations than other. 1. Affordable Housing — Miami has recently experienced high grow of commercial and high -value residential properties. As values grow for property and development, low - and -moderate income households find it increasingly difficult to secure affordable housing. "Affordable" housing typically includes housing affordable to households with income at or near 80% of median household incomes. However, the real estate market may place households with incomes greater than 100% of median into affordable housing -eligible criteria. In Miami -Dade, the median -priced home cost $237,000, which requires an annual income of $73,866. The median household income in the City of Miami is $31,723. As interest rates increase, housing affordability becomes an issue for middle -income households as well as low -to -moderate income households. The availability of affordable housing will have an impact on economic development, as companies seek an appropriately priced labor supply that is able to travel to work over a reasonable distance. Addressing the issue of affordable housing will be necessary to make Miami a competitive business location. PDAs that contain businesses that will employ lower skilled employees will also need to accommodate low -to -moderate housing within or proximate to the priority development area. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Ana}ysis Pro}ect 16068 12 ERA DR FT 2. Public Transportation/Streetcar Corridors - Access to public transit can be considered a valued amenity. Properties located near transit stations enjoy increased regional accessibility, more mobility options and reduced transportation costs; and thus, if appreciated the amenity would be reflected in the value of the property and the intensity of development near the transit access point. Public transportation also provides greater flexibility for workers and customers to reach businesses across the city. PDAs with access to public transportation systems and stations should be more attractive as potential locations for employment, residence and commerce. Current plans to expand the public transportation infrastructure in Miami help inform economic development initiatives within specific PDAs. PDAs with increase access to transit should be considered for development of affordable (workforce) housing, employment centers, trade and tourism development. 3. Commercial (Retail) Clusters and Corridors - Retail is a use that is most successful when stores are congregated in a specified geographic area. Depending upon proximity to markets and transportation, retail will vary greatly from one priority development area to another and may seek markets that are located beyond the metro area (super - regional or regional shopping), or may develop to serve community, neighborhood or convenience shopping needs. Retail development will concentrate in PDAs that have a commercial character, although some scale of retail businesses will be found in a range of mixed -use transects, including D1 Specialized Industrial. Market demand potential, targeted market groups and proximity to markets and access will influence the scale of the retail development identified for PDAs. 4. Arts/Cultural Districts and Entertainment Districts — Arts and cultural districts may contain public visual and performing arts facilities such as theatres, concert halls, and museums, as well as private arts -related businesses, including retail art galleries, art studios, arts and cultural program administration offices, music or dance studios, performance rehearsal space. PDAs containing or near existing arts clusters or districts may target arts -related businesses, industries or facilities to recruit, retain or enhance such businesses. Such districts may also link development of arts and culture related businesses with affordable live -work artist residential development. Entertainment districts are typically clusters of businesses that include Food Services and Drinking Places (NAICS 722) such as restaurants, cafes, bars, taverns, or nightclubs. Other businesses may include All Other Amusement and Recreation Industries (NA1CS 7139) such as arcades, bowling centers, dance halls and discotheques. Such districts may support hospitality and tourism development, as well as attract local and regional markets. Entertainment districts typically form in an "organic" fashion, though the growth of entertainment districts can be encouraged or curtailed depending upon the ease and availability of business licensing and other operating requirements. Proximity to residential districts and retail areas should be considered when weighing the relative advantages or disadvantages to encouraging the formation of an entertainment district. Economics Research Associates Little Haiti Industrial Priority Development Area {FDA) Analysis Project 16068 13 ERA Approach to Development within the Little Haiti Priority Development Area Following an extensive examination of a wide range of industries for potential to create and retain jobs and reviewing the current and proposed zoning in the Little Haiti PDA, ERA has developed a program of near, mid-, and longer -term economic development opportunities. The transects and economic development strategy for the Little Haiti PDA feature a physical or cluster approach that concentrates compatible industrial uses and provides predictable development over a period of time. The approach to the Little Haiti PDA supports: • Specialized industries that provide the opportunity for improved skills and mobility, as well as entrepreneurial prospects; • Retention and enhancement of job opportunities across a wide range of skill levels; • Locations for affordable, workforce housing to keep the employment base close to the job opportunities; • Increased space designated for specialized, light industries (DI) and an aggregation of heavier industrial uses (D2) close to rail and other transportation corridors. The Little Haiti PDA takes advantage of the district's current industrial uses and identifies opportunities for additional heavier industries along the FEC corridor, one of Little Haiti's Iocational advantages. Workforce affordable housing is introduced in a previously zoned industrial area to shift perceived issues of safety and to provide residential space for the PDA's employment base. The development of housing adjacent to Little Haiti Park serves to stabilize the area and provides quality housing. Specialized industry (D1) and heavy industry (D1) remain, expanding and retaining jobs in the PDA and providing predictable development patterns for industrial uses. Targeted Industries Not Considered for Little Haiti Industrial PDA ERA reviewed the targeted industries and land uses to determine which might be most appropriate and present opportunities for the Little Haiti PDA. Most of the targeted industries that were rejected for inclusion were due to specific requirements of the industry (typically geographic) or that the industry already has a presence elsewhere in the city and would likely grow and develop in its existing location. The targeted industries not included in the Little Haiti Industrial PDA are: • Motion picture and media production — Although there are some sound studios on the eastern side of the FEC line in the PDA, the physical requirements of motion picture and television sound stages and production eliminate this as a labor presence in Little Haiti. The existing recording studios will likely remain in the PDA, but ERA does not anticipate an expansion of this industry group in the PDA. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 14 ERA • Biomedical technology —Miami's biomedical opportunities will likely locate near the Civic Center, in close proximity to medical facilities and educational institutions. An initiative has already begun to target biomedical in that area of the City and Miami's limited biomedical development will need to be concentrated to flourish. • Tourism and Hospitality — Miami's tourism and hospitality industry is closely associated with the cruise ship industry, athletic events, performing arts, business meetings and travel, and historic sights. While there is some prospect that the Haitian cultural sites in the overall Little Haiti neighborhood may attract some urban tourism, it is unlikely that the tourism and hospitality industry will develop as a major economic driver for the PDA. • International Trade and Finance — International banking in Miami is already centered in the Brickell area. Such businesses benefit from and seek to be near similar enterprises. International business associated with the Port of Miami facilities or the airport will locate nearer to those sites. One way in which the Little Haiti Industrial PDA may become involved with international trade may be the assembly of imported components into a finished product in the specialized and heavy industry areas of the PDA, or by the development of warehousing facilities with duty-free status. • Venture Capital — While venture capital does not require specific geographic site conditions, it typically seeks to locate in financial centers and professional office locations. In Miami, Brickell and the Downtown office core are better positioned to attract the location of venture capital firms. Little Haiti's industries may, however, be able to attract the investment from such firms. • Marine Industries — Logically, marine industries wilt most likely seek locations along the Miami River, and other waterfront areas. There may be some repair and equipment businesses with marine application that could locate in the Little Haiti PDA, if the product or service was not water -dependent. • Public transit/streetcar corridor — While there is a chance to develop transit - oriented development (TOD) if a commuter rail eventually locates on the FEC corridor, planning, feasibility studies and timetables for the commuter rail are still too uncertain to include this use in near -term development strategies. As the future of the commuter rail development becomes clearer, it may be possible to identify development approaches that include TOD in the Little Haiti PDA. • Commercial Retail Clusters and Corridors — Some retail uses will be developed in the PDA in the DI and 15 zones proposed for Little Haiti. However, ERA does not anticipate that retail will be a major economic driver in the PDA. • Arts/Cultural Districts or Entertainment Districts — Some Haitian cultural uses will continue to exist in the PDA, however the major arts and cultural uses remain in the Performing Arts District and in other locations across the city. Entertainment Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 15 ERA RAFT uses may emerge from time to time, but the industrial character of Little Haiti will limit the development of an entertainment cluster as a significant economic driver in the PDA. Development Challenges Facing the Little Haiti Industrial PDA Development Pressures There continues to be pressure to rezone industrial property for other uses in Little Haiti's Industrial PDA. Maintaining sufficient specialized and heavy industry to provide job opportunities will require retaining industrial land. Safety Perceptions There remains some perception that Little Haiti is a difficult location to conduct business, especially with regards to safety and security. New development in Magic City and around Little Haiti Park will help reduce this perception problem. As the quality of specialized and heavy industries develop in the PDA, the quality of the cluster will also increase. Concentration of Low -Income, Low -Skill Workforce The Little Haiti PDA must recognize the challenge posed by Miami's population demographics and economics. The Brookings Institution reports that among the 100 largest cities in the US, Miami ranks first in its poverty rate, third in the rent burden being carried by households that rent their residences, and one -hundredth in median household income. In addition, the US Census reports that more than 47% of the adult population aged 25 and above have less than a high school education. Many of these persons are recent immigrants with limited English language skills. While near and mid-term industrial development opportunities can offer some enhancement in wages and skills, long term development will depend on strategies to mitigate the education gap. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 16 ERA Miami and Miami -Dade County Economic indicators Miami 21 R FT Rank Among 100 Largest U.S. Cities / Counties Miami City Poverty Rate Rent Burden Share of Adult Population With at Least a B.A. Degree Share of Households Earnings Between 518,000 and $81,0000 Median Household Income 1 3 94 96 100 Miami -Dade County Poverty Rate 12 Rent Burden 1 Share of Adult Population With at Least a B.A. Degree 85 Share of Households Earnings Between $18,000 and $81,0000 62 Median Household Income 91 Source: Brookings Institution, 2004 (based on U.S. Census Bureau). Lack of Affordable Housing The gap between median household income and median homes prices in Miami continues to increase. The Mayor of Miami has formed a task force to examine how more affordable housing may be developed in the city. The challenge of providing decent, affordable housing is national in scope, however the situation has become acute in Miami with the rapidly rising housing prices. Providing affordable housing is sometimes only viewed as a social issue, but it is also an economic one. A lack of affordable housing can result in loss of jobs and business expansion opportunities and an increase in public expenditures to support low -and -moderate households and their needs, thus reducing the available funding for infrastructure and economic development. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 17 ERA Jobs and the Economics of Employment A major strength of the City of Miami is the overall size of its active labor force, with 2005 BLS data showing 157,400 annual resident -workers. The city represents the third largest labor force concentration in the State of Florida, trailing only Jacksonville (398,000) and Tampa Bay (160,900.) However, despite this strength, the Miami job market is underperforming relative to statewide benchmarks. Between 1995 and 2005, Florida employment increased at an average annual rate of approximately 2.7 percent. Meanwhile, the Miami Metropolitan Division experienced average annual job growth of only 1.2 percent over the same 10-year time period. As shown in Figure 1, Miami also appears to be more susceptible to downturns in the national economy, evidenced by significant job loss during the most recent recession that began in late 2001. This fact is largely attributable to a lack of diversity in the Miami -area employment base, which tends to rely heavily on leisure and entertainment industries that are supported by discretionary consumer spending. Figure 1: Annual Job Growth by Month. 1995 to 2005 Annual Job Growth 6.0% 5.0% 4.0% 3.0°/° 2.0°/ 1.0% 0.0% Florida - Miami -Miami Beach -Kendal! CT▪ , off, or,, on CO CO ▪ rn ai S 8 a -1.0% Source, Florida Agency for Workforce Innovation; Economics Research Associates, 2006 Economics Research Associates Little Haiti Industrial Priority Development Area {FDA) Analysis Project 16068 18 ERA RA Figure 2: Miami -Miami Beach -Kendall Metro Division Share of Florida Employment, 1995 to 2005 r Miami -Miami Beach -Kendall Share of FL Jobs Share of Tota€ Jobs Share of Goods Producing Jobs Share of Service Jobs 18.0% 17.0% 160% 15.0% - 14.0% 13.0% 12 0% 11.0% - 10.0% 9.0% 8 0% Vl V7 la co - r 00 00 01 01 O O N N m m C 7 Lel Vl CS) 01 01 01 01 01 01 01 61 Ql o 0 0 0 0 o C7 o O p 0 O C C C C j G j G rt 5 Source Florida Agency for Workforce Innovation; Economics Research Associates, 2006 These job growth trends have resulted in a smaller share of total Florida employment concentrated in the Miami area. In 1995, the Miami -Miami Beach -Kendall Metropolitan Division (roughly Miami -Dade County) contained over 15 percent of total state employment; by 2005 the area's share declined slightly to less than 14 percent. Miami's goods producing industries, such as manufacturing, warehousing, and wholesale trade, experienced a significant loss in statewide job share, down from 14 percent in 1995 to less than 10 percent a decade later. These types of industries are of critical importance to Miami because of the diverse range of employment opportunities they afford the local labor force. Jobs in goods producing industries typically offer livable wages, require minimal formal education, and provide opportunity for career advancement. Therefore, the analysis presented below focuses on the fundamental objective of ERA's economic development strategy — the creation of a range of jobs that facilitate upward mobility and improve the quality of life for all Miami residents. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 19 ERA Analytical Framework Based on the local employment trends described above, ERA developed an analytical framework that identifies opportunities for Miami to diversify and expand its economic base through targeted industry retention and attraction. More specifically, the framework enables the evaluation of targeted industry sectors specific to the PDA as well as the Transacts developed by DPZ for Miami 21. This analysis provides a view of the competitive strength of Miami, and by extension the PDA, with respect to a variety of industry sectors as they relate to job opportunities and livable wages. ERA utilized North American Industrial Classification System (NAICS) based sector definitions to identify 59 potential industry sectors with land use and economic characteristics that are consistent with the PDA and the Transect overlays. A list of the 59 industry sectors and the applicable Transact overlays considered for the purposes of this analysis can be found in the attached Appendix. It should be expected that the number and type of potential industry sectors will vary based on the character of the Transacts proposed for the PDA. For example, if a "D2-i-leavy Industrial" overlay is proposed for the PDA, the model only considers those industry sectors typically classified as "heavy industrial," such as the manufacture of chemicals, major automobile repair, and other nuisance -creating sectors that are incompatible with a residential land use. However, if the PDA only contained the "T5-R Urban Center Residential" overlay, the model excludes industries associated with D2, and focuses only on those applicable to T5-R. Ranking Criteria The next step in ERA's model utilizes three ranking criteria in order to select targeted industries out of the 59 that will have the greatest economic development impact on the PDA. The ranking criteria include the following: 1) industry skills requirements; 2) the relative concentration of local industry employment; and 3) industry wages. While ERA's analytical model primarily reflects a job -based approach, in reality, firm location decisions can be quite complex and tend to involve a variety of important considerations. For example, a city with weak labor force demographics may attract an industry sector by offering relocation incentives, cheap land, low rental rates, access to a major transportation network, or a favorable local tax structure. Similarly, a city with strong labor force demographics can lose an industry due to higher business costs or insufficient transportation infrastructure. However, by utilizing a jobs -based approach, ERA's model ensures that the targeted industry sectors meet or exceed the following thresholds: ■ Does the local labor force meet the minimum occupational education and skill requirements for this particular industry? Economics Research Associates Little Haiti industrial Priority Development Area (PDA) Analysis Project 16068 20 ERA AFT • If the local labor force does not meet the minimum occupational education and skill requirements, are there near -term training solutions to better equip residents for the workplace? ■ Does the industry sector have a presence in the Miami area of regional or national significance — i.e. can a new firm leverage existing economies of scale? • Are industry sector wages competitive with other good quality jobs in the Miami area — i.e. industry sector jobs will enhance quality of life and economic status for workers? Does the industry sector compliment or support another industry sector targeted for the PDA? Criterion 1 — Industry Skills Requirement The first criterion assures that there is a match between the educational attainment of the Miami resident labor force with the skills and education required to perform a particular job within an industry sector. In order to develop a skills and education benchmark for each industry sector, ERA relied on 2005 Florida Agency for Workforce Innovation data that assigned an occupational education requirement code to over 800 types of jobs. ERA also utilized data from the US Department of Labor, Bureau of Labor Statistics that details the types of job functions comprising the 59 industry sectors. By combining the data from these two sources, ERA calculated an occupational education requirement score, where a score of "1.0" indicates that no jobs in an industry sector require a high school diploma, and a score of "5.0" means that every job in an industry sector requires an advanced degree. Most industry sectors fall somewhere in between the two extremes. Next, ERA analyzed population data from the US Census, 2004 American Community Survey to calculate a similar score for the labor force of City of Miami and Miami -Dade County, respectively. The City of Miami working population represents the immediately available Tabor force, whereas the Miami -Dade County working population represents an available labor force, but only when necessary. For the purposes of this analysis, ERA considered the labor force to be the population between the ages of 18 and 64. As shown below in Table 1, the educational attainment score for the city and county are 2.39 and 2.67, respectively. This suggests that the average labor force participant in both jurisdictions has a skill set that can be attained through some combination of high school, vocational training, or community college. Finally, ERA compared the industry sector occupational education requirement score to the labor force educational attainment score. An industry sector score that is below the labor Economics Research Associates Little Haiti Industrial Prionty Development Area (PDA) Analysis Project 16068 21 ERA DR FT force score implies that adequate staffing can be achieved without significant private investment in on-the-job training or public investment in workforce development programs. ERA considers industry sectors that can be staffed atthe city level to offer greater near term opportunity for job creation. An industry sector that can only be staffed at the county level suggests that either non -Miami residents will occupy some of the jobs created by a new firm, or that the city and/or the firm will have to invest in local workforce development programs. Table 1: Level of Educational Attainment, Miami Area Labor Force, 2004 Edu Code Level of Educational Attainment % of Population Between Ages 18 & 64 City of Miami Miami -Dade County Florida United States 1 No High School Diploma 2 High School Graduate 3 Some College, Vocational Certificate, Associates Degree 4 Bachelors Degree 5 Advanced Degree Labor Force Education Attainment Score 28,8To 30 5% 2 1 . 7 % 11.4% 7 6% 17.8% 30.9% 27.5% 14.6% 9-2% 1511 '39i1 fit% „2.'b7 r 14.2% 14 3% 30,2% 29 3% 31 4% 30.3% 16.1% 17 2% 8.1% 8,90/ 2.74 2.77 Source: US Census, 2004 American Community Survey; Economics Research Associates Criterion 2 — Local Concentration of Industry Sector Employment The second criterion identifies industry sectors that have an established regional or national presence. Cities with prominent industry sectors are able to provide new firms with immediate access to a skilled labor force, capital markets, and infrastructure. The economy of scale that is generated by this type of activity in turn enhances the marketability of the city's business community. The industry sector concentration score is derived from the utilization of location quotient analysis, a commonly used technique to identify "specializations" in a local area by comparing proportional employment concentrations in the local economy to those of a larger benchmark economy. In this case, the local economy is Miami -Dade County (data at the detailed industry sector is unavailable at the city level) and the "benchmark" economies are those of the State of Florida and the United States. From a trade volume perspective, the BLS Location Quotient data provides a comparison of Miami -Dade County employment by industry to that of the state or nation in the form of a ratio. A factor of 0.7.5 to 1.25 indicates that the proportion of employment for an Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 22 ERA RA �ir . .T individual industry located on Miami -Dade County is balanced with the national rate of employment for that industry. Ratios greater than 1.25 indicate that the location is a net exporter of goods and services associated with that industry; ratios less than 0.75 indicate that the location is a net importer of goods associated with that industry. An industry sector than reports a high ratio at the national level is generally considered to be very competitive, and Miami could potentially become a magnet for firm relocation. Meanwhile, an industry sector that has a high ratio at only the state level suggests that Miami could potentially face competition from cities in other states targeting a similar type of business. Media Production is a Miami -specific example of this type of industry sector. Criterion 3 — industry Wages The final criterion addresses the issue of livable wages. Current job growth patterns suggest that the city is moving toward a local economy that subsists on low -paying service and hospitality jobs. Long-term sustainability can only be achieved by targeting industry sectors that foster higher -value jobs_ Out of all the industry sectors that met the skills and employment concentration criteria, ERA then selected target sectors that offer annual wages near, or above, the average annual wage for all jobs in Miami -Dade County (data is unavailable at the city level), reported by the US Bureau of Labor Statistics in 2005 at approximately $36,100. ERA made exceptions for some industry sectors that passed the first two screening criteria, but failed the wages criterion, if the sector is a necessary compliment to another sector that had been identified as PDA target opportunity. Economics Research Associates tittle Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 23 ERA DR FT Targeted Industries for Little Haiti PDA ERA analyzed a range of industries that offer improved wage and skill employment opportunities that also meet the particular geographic and physical characteristics of Little Haiti. The industries were also categorized based on the immediacy of the opportunity and the relative requirements for entry into the PDA based on investment, workforce readiness and Miami's relative position to take advantage of the opportunity. Industries were sorted by "near -term opportunities" (representing immediate to five years for development) and "mid-term opportunities" (representing those industries that will require some investment in infrastructure, workforce skills development or current presence in the Miami market). A table illustrating all of the near -and -mid-term industrial sector opportunities for Little Haiti is included. Near -Term Industrial Sectors for Little Haiti D 1 — Specialized Industrial Transect Some representative near -term specialized industrial sector (D-1) opportunities for Little Haiti include: • Medical Equipment and Supplies Manufacturing (NAICS 339100) - This industry comprises establishments primarily engaged in manufacturing medical equipment and supplies. Examples of products made by these establishments are laboratory apparatus and furniture, surgical and medical instruments, surgical appliances and supplies, dental equipment and supplies, orthodontic goods, dentures, and orthodontic appliances. • Furniture and Home Furnishing Merchant Wholesalers (NAICS 423200) - This industry comprises establishments primarily engaged in the merchant wholesale distribution of furniture ■ Lumber and Other Construction Materials Merchant Wholesalers (NAICS 423300) - This industry comprises establishments primarily engaged in the merchant wholesale distribution of lumber; plywood; reconstituted wood fiber products; wood fencing; doors and windows and their frames (all materials); wood roofing and siding; and/or other wood or metal millwork. Custom cabinetry is included in this industry sector. • Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers (NAICS 423700) - This industry comprises establishments primarily engaged in the merchant wholesale distribution of plumbing equipment, hydronic heating equipment, household -type gas appliances, and/or supplies. A typical business may be engaged in heating and air-conditioning equipment installation and repair. Other sectors included in the near -term for Little Haiti are: Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 24 ERA Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers • Grocery and Related Product Wholesalers • Warehousing and Storage • Personal and Household Goods Repair and Maintenance D-2 Heavy Industrial Near -Term Sectors Heavy industrial sectors recommended for Little Haiti's D-2 areas include: ■ Chemical and Allied Products Merchant Wholesalers (NAICS 424600) - This industry group comprises establishments primarily engaged in the merchant wholesale distribution of chemicals; plastics materials and basic forms and shapes; and allied products. Some discretion should be used to determine which chemical products might be acceptable in the area. ■ Warehousing and Storage (NAICS 493000) — This group represents a full range of businesses engaged in operating warehousing and storage facilities for general merchandise, refrigerated goods, and other warehouse products. These establishments provide facilities to store goods. They do not sell the goods they handle. Bonded warehousing and storage services and warehouses located in free trade zones are included in the industries of this subsector and could provide Little Haiti with an opportunity to engage in international trade and commerce. T5-R Urban Center Restricted Near Term Industry Sectors For the Little Haiti TS-R transects, ERA recommends the following sectors: • Furniture and Home Furnishing Merchant Wholesalers (NAICS 423200) • Personal and Household Goods Repair and Maintenance (NAICS 811400) — This sector represents a wide array of repair and maintenance businesses including: home and garden equipment repair and maintenance; repairing and servicing household appliances; reupholstering, refinishing, repairing and restoring furniture and other personal goods repair. Mid -Term Industrial Sectors D 1 Specialized Industry Sectors Mid-term industrial sector opportunities for Little Haiti's Dl areas include the following: • Professional and Commercial Equipment and Supplies Merchant Wholesalers (NAICS 423400) - Merchant wholesale distribution of photographic equipment and supplies; office, computer, and computer peripheral equipment; and medical, dental, hospital, ophthalmic, and other commercial and professional equipment and supplies. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 25 ERA RAF Electrical and Electronic Goods Merchant Wholesalers (NAICS 423600) - Merchant wholesale distribution of electrical construction materials; wiring supplies; electric light fixtures; light bulbs; and/or electrical power equipment for the generation, transmission, distribution, or control of electric energy. • Drugs and Druggists' Sundries Merchant Wholesalers (NAICS 424200) - The merchant wholesale distribution of biological and medical products; botanical drugs and herbs; and pharmaceutical products. Other mid-term sectors in DI Little Haiti include: • Paper and Paper Product Merchant Wholesalers • Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers • Sound Recording Industries D2 Heavy Industry Sectors Mid-term D2 sectors include: • Beverage and Tobacco Product Manufacturing (NAICS 312000) - businesses that manufacture nonalcoholic beverages; alcoholic beverages through the fermentation process; and distilled alcoholic beverages. Ice manufacturing, while not a beverage, is included with nonalcoholic beverage manufacturing because it uses the same production process as water purification. • Nonmetallic Mineral Product Manufacturing (NAICS 327000) — Such businesses as pottery and ceramics manufacturing, manufacturing vitreous china plumbing fixtures, manufacturing porcelain electrical insulators, molded porcelain parts for electrical devices, and clay roofing tiles • Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers (NA1CS 424800). T5-R Urban Center Restricted Mid -Term Industry Sectors For the Little Haiti T5-R transacts, ERA recommends the following sectors: ■ Printing and Related Support Activities (NAICS 323000) — Businesses that print products, such as newspapers, books, labels, business cards, stationery, business forms, and other materials, and perform support activities, such as data imaging, plate making services, and bookbinding. ■ Other Miscellaneous Manufacturing (NAICS 339900). Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 26 ERA NEAR D1 - SPECIALIZED INDUSTRIAL TERM TARGETED NAICS ID INDUSTRY SECTORS - LITTLE HAITI NAICS ID TR-5 - URBAN CENTER RESTRICTED D2 - HEAVY INDUSTRIAL NAICS ID Industry Sector Description Industry Sector Description Industry Sector Description 339190 Medical Equipment and Supplies Manufacturing 424600 Chemical and Allied Products Merchant Wholesalers 423200 Furniture and Home Furnishing Merchant Wholesalers 423200 Furniture and Home Furnishing Merchant Wholesalers 4s3900 Warehousing and Storage et14o0 Personal and Household Goods Repair and Maintenance 423300 Lumber and Other Construction Materials Merchant Wholesalers 423700 Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers 424400 Grocery and Related Product Wholesalers -. 403000 Warehousing and Storage stunPersonal and Household Goods Repair and Maintenance MID TERM TARGETED INDUSTRY SECTORS - LITTLE HAITI NAICS ID Dt - SPECIALIZED INDUSTRIAL NAICS ID D2 • HEAVY INDUSTRIAL TR-5 - URBAN CENTER RESTRICTED Industry Sector Description Industry Sector Description NAICS ID Industry Sector Description 330000 Other Miscellaneous Manufacturing 212000 Beverage and Tobacco Product Manufacturing 323000 Printing and Related Support Activities 422400 Professional and Commercial Equipment and Supplies Merchant Wholesalers 327000 Nonmetallic Mineral Product Manufacturing 339900 Other Miscellaneous Manufacturing 423900 Electrical and Electronic Goods Merchant Wholesalers 424e00 Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers 424100 Paper and Paper Product Merchant Wholesalers ` 424200 Drugs and Druggists' Sundries Merchant Wholesalers 424500 Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers 512200 Sound Recording Industries 515100 Radio and Television Broadcasting • Economics Research Associates Miami 21 Priority Development Area Analysis Project No. 16068 Page 27 ERA Overview of Fiscal & Economic Impact Analysis The purpose of this segment of the Priority Development Area (PDA) analyses is to provide the City of Miami and local property owners, businesses, and residents with an analytical framework for evaluating the relative economic and fiscal implications relating to the proposed Transect Pan. This analysis provides a point of departure for discussion and further research and analysis regarding these proposed zoning changes. The basis for this analysis originates from a comparison of current zoning (and sample building types) against the anticipated building types that are associated with the Transect Zoning at full build -out. As such, the analyses presented in the economic and fiscal component of the PDA studies should be considered conceptual and illustrative in nature. Summary of Economic and Fiscal Drivers ERA's economic and fiscal analysis is based on a series of integrated plan assumptions consistent with the Transect Planning Areas with in PDAs. ERA notes that from a real estate development standpoint, increased density will result in higher property taxes to the city, consistent with the Transect Plan's primary objective to achieve densification of commercial corridors and nodes (e.g., NW Fifth Avenue in Wynwood). Concurrently, retaining and expanding industrial jobs in areas designated as D1 and D2 Transects result in economic benefits from job retention and improvements in base salary levels. Based on a review of the City of Miami Comprehensive Annual Financial Report (FY 2005), the primary drivers of the City of Miami General Fund budget revenues are property taxes (33 percent), charges for services (29 percent), and public services taxes and operating grants (19 percent). The balance of the City's General Fund budget revenue structure is comprised of nominal contributions from franchise taxes, capital grants and contributions, state revenue sharing, sales and use taxes, investment earnings, and other miscellaneous sources (19 percent). ERA concludes that that the primary fiscal implications of the proposed Transect Pan are associated with a potential net gain or loss in real property tax revenues and the nature of employment within the PDA boundaries. Methodology and Approach In order to develop the assumptions that form the basis for comparing the long-term fiscal and economic performance of prototypical building types associated with individual zoning categories, ERA conducted site visits to the two PDA's identified by ERA's earlier economic analysis to assess current conditions of building uses, conditions, and relative productivity within the Miami area. ERA collected research on current values associated with construction costs, assessed property values, retail sales productivities, and other factors to develop estimates of property market value and employment generation capacity. Economics Research Associates Miami 21 Priority Development Area Analysis Project No 16068 Page 28 ERA D AFT ERA also reviewed the current structure of the City of Miami General Fund Budget (FY2005) to test the relationship between the potential property, sales and other tax revenues that could be generated by the anticipated land uses associated with the proposed Transect Zoning. Based on this research, ERA includes only ad valorem real property taxes and property. Note that these assumptions are estimates based on the relative performance of a sampling of current and potential space users located in properties in each of the representative zoning categories located within the PDAs; these figures are subject to change as the Transect Zoning guidelines are refined and as market conditions continue to evolve. The fiscal and economic benefits are based on the prototypical development programs at build out. The analysis considers fiscal and economic performance in two distinct scenarios — current state (today's zoning) and future state (as envisioned upon implementation of the proposed Transect Plan). The figures analyzed in this modeling exercise represent the potential annual recurring fiscal and economic activity associated with prototypical space users located within the PDAs. Although fiscal and economic benefits will occur on two levels — direct and secondary — ERA includes only the direct impacts associated with on -site job creation and tax revenues that are reasonably expected to occur within the PDA boundaries. Secondary, or indirect; benefits are expected to occur outside of the PDA boundaries due to associated spending by construction workers, permanent residents, employees, and visitors associated with the PDA-based land uses. Although ERA considers secondary property investment, retail spending, and employment occurring outside of the PDA boundaries as catalytic drivers of District -wide economic redevelopment activity, these benefits would be difficult to quantify in the absence of a specific development proposal. As such, secondary fiscal and economic benefits are excluded from the analysis. Base Assumptions ERA's estimates are based on current and future PDA-based economic activity associated with property reinvestment and new construction, and employment). The future -state scenarios are based on the assumption that the economic activity would not occur "but for" the public and private investment that would result from land use and space user changes anticipated by implementation of the proposed Transect Plan. The total anticipated fiscal and economic benefits are based on a range of residential and commercial activities at build out (stabilized year of operations for each illustrative use). ERA contacted the City of Miami Finance Department to obtain current rates for the applicable sales, property and other tax revenue streams that would accrue to City and County governments, as applicable. ERA also validated the assumptions that form the basis for determining the fiscal and economic impacts of the proposed development. ERA also relied upon assumptions reported by available industry sources such as Costar, Marshall and Swift Cost Estimators, the US Bureau of Economic Analysis for property values, employment generation factors, and other inputs that formulated ERA's estimate of Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 15068 29 ERA potential occupied space by building type and the associated market value and employment generation capacity represented by the various zoning categories. ERA's detailed assumptions are presented in the Appendix of this report. Real Property Tax Revenues The City of Miami levies a real property tax on all commercial ("non -homestead") and residential ("homestead") properties located within the city boundaries. The City of Miami sets millage rate on an annual basis. The City of Miami Commission reviews and approves the millage rate on an annual basis, with adjustments generally depending on the growth of the tax base and other economic factors. Although the City of Miami imposes the millage rate, the city is under an intergovernmental agreement whereby Miami -Dade County assesses city properties and collects the associated real property tax revenues. In return, Miami -Dade County retains an administrative fee equal to approximately 1.5 percent of total collected tax revenues. The process for establishing annual assessment value is differentiated by non -homestead (commercial) and homestead (primary residential) uses. According to Florida State Statute, real property tax assessments on homestead properties are restricted a three percent annual appreciation rate. Non -homestead (commercial) properties are based on market appreciation calculated through a random sampling of property sales transactions Citywide on an annual basis. Assessments on new property within the first year of occupancy are based on the value of land and building construction costs. Upon the second year of occupancy, new construction property tax assessments revert to the market value approach. Assessed values for both homestead and non -homestead properties are set at 75 percent of market value. Property value assumptions will reflect current appraised values reported by the City of Miami. Employment impacts will reflect the most up-to-date labor market statistics reported by the Florida Agency for Workforce Innovation, unless other resources are identified by the City of Miami. As the basis for calculating real property tax revenues, ERA obtained transaction value trends data by land use type for properties located within the PDA boundaries (vacant land, single family and multifamily residential, light and heavy industrial/flex uses, and retail) from Costar. ERA further tested these assumptions by collecting replacement construction costs data from Marshall and Swift (adjusted to reflect local Miami conditions). If additional data regarding assessed value trends the City of Miami becomes available, ERA will further test the assumptions regarding assessed property values within each of the PDAs. Sales and Use Taxes The combined state and local sales and use tax rate is 7.0 percent of gross retail sales (6.0 percent state tax and 1.0 percent local tax). After local businesses remit the total sales tax collections directly to the Florida Department of Revenue, the City of Miami receives a share of the sales tax returned by the state to Miami Dade County through an annual intergovernmental transfer mechanism. According to the Miami Department of Finance, Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 30 ERA Y Miami -Dade County transfers the proportionate share of sales tax revenues based on ratio of the City of Miami's population to the population within the entire county. The funds may be used for general governmental purposes (80 percent) or for transit projects (20 percent). In effect, the local share of sales tax revenues retained by the City of Miami is nominal when compared to the total General Fund budget revenue structure. As an example, based on 2004 Florida Department of Revenue intergovernmental revenue sharing data, for every S100 in gross retail sales, the City of Miami received only $0.0I 5 (one and one-half cents) in intergovernmental sales tax revenues from Miami -Dade County. Based on this nominal contribution by sales tax revenues to city -level budgeting, ERA does not consider potential changes in sales tax revenue flows to be a primary driver of the fiscal component of this analysis. However, there could be other economic implications associated with improving retail sales within the PDAs, such as providing enhanced support for urban housing through mixed -use retail concepts. Tax and Fee Revenues Excluded from the Analysis In addition to the annual ongoing tax and fee revenues associated with potential development activity resulting from the Transect Plan, the City of Miami will benefit from one-time capital spending on construction activity. These benefits typically include hard and soft construction costs. Hard construction costs are split between materials (60 percent of hard costs) costs and construction wages (40 of hard costs). Soft costs comprise the remaining balance of total construction, typically representing 35 percent of total construction investment. In addition to the job and wage benefits, the sale of construction materials will generate additional sales and use taxes. However, given the inherent difficulty in sourcing the location of these sales, this tax revenue potential is somewhat speculative. In addition to the direct benefits described above, the project will have secondary effects on the local economy as well. This will result from new resident households within the PDAs spending dollars in other area businesses for grocery items, apparel and other household goods, and restaurant and entertainment. Additional tax and fee revenues that could be considered applicable to the representative industrial and commercial building uses illustrated by the current zoning and the proposed Transect Plan include: • Personal Property Taxes ■ Intergovernmental revenues ■ Charges for services • Internal service funds • Other miscellaneous/non-revenue funds Economics Research Associates Little Haiti lndustriai Priority Development Area (PDA) Analysis Project 16068 31 ERA Due to the lack of a specific redevelopment proposal, the tax and fee revenues are derived from expenditures on construction investment and indirect spending are difficult to quantify. Although these revenues are applicable to the consideration of the full range of fiscal and economic activity that would accrue to the City of Miami's General Fund as a result of the proposed Transect Plan, these items are excluded from the quantitative analysis. As such, ERA's estimates are considered to be conservative. General Fund Public Service Costs ERA evaluated the potential need for incremental one-time capital improvements within each of the PDAs as a result of the proposed Transect Zoning. ERA's review focused on the capital improvements associated with the following functional city departments: • Fire -Rescue Department • Miami Parking Authority • Parks & Recreation Department • Solid Waste Department • Public Works Department Based on the proposed land use scenarios, ERA evaluated the need for additional capital costs to support the real estate development that could occur under the proposed transect zoning. According to the City of Miami Finance .Department, the majority of anticipated one-time capital improvement costs are offset by developer impact fees and earmarked revenues generated by the Local Option "Half -Cent Transit Sur -Tax" (or the "Peoples' Transportation Tax"). Another common form of public service cost revenues is in the form of special taxing district fees (e.g. business improvement districts or special assessment districts). ERA evaluated whether development occurring within the Wynwood and Little Haiti priority development areas could be subject to special taxing district fees (e.g. business improvement districts or special assessment districts) and determined that these areas do not currently have a sufficient revenue base to warrant a special taxing district. Although ERA evaluated the potential public service costs associated with potential changes in building uses within the P.DA areas, ERA concluded that a determination of potential costs would require a refined development program to serve as a basis for cost estimates. However, from a general standpoint, ERA considers the current development impact fee requirements to the most applicable resource for off -setting the marginal costs that would result from the majority of the anticipated intensification of land uses envisioned by designated areas within the Transect Plan. However, the City of Miami has recently completed an infrastructure capacity analysis associated with the 2005-2006 Multi -Year Capital Plan (Finance/Financial Policies/ Anti - Deficiency Act/ Financial integrity Principles) that has identified specific areas and capital programs in need of funding to meet required level of service standards across multiple Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 32 ERA functional areas of transportation, public safety, parks and recreation, public realm facilities and amenities, and community development. ERA concludes that consideration of the potential public service capital costs associated with the proposed Transect Plan within the PDA's would require further in-depth study outside the scope of this assignment to fully evaluate any potential funding gaps or deficiencies in public service delivery. Table 2: City of Miami Development Impact Fee Schedule Residential (Per DU) Single Family Detached Low Rise High Rise t)eneral Parks and Police Fire -Rescue Services Recreation $ 164 $ $ 144 $ $ 95 $ 704 $ 619 $ 409 $ 413 $ 363 $ 239 $ 6,818 5,998 3,959 Non -Residential (Per 1,000 SF Commercial Space)/1 Light Industrial $ 0.107 $ 0.210 $ 0.087 N/A Manufacturing $ 0.059 $ 0.162 $ 0.068 N/A Warehousing $ 0.076 $ 0.116 $ 0.048 N/A Mini -Warehouse $ 0.038 $ 0.003 $ 0.001 N/A General Office $ 0.206 $ 0,336 $ 0.140 N/A Commercial/Shop Ctr $ 0.609 $ 0.227 $ 0.095 N/A 1/ Development impact and other related fees according to City of Miami Ordinance File No. 05- 01042, Chapter 13, Section 13-1 through 13-13. Development impact fee rates for non-residential General Office and Commercial/Shopping Centers are based on the midpoint of the fee rate schedule for all building types and sizes. Source? City of Miami; Economics Research Associates, 2006. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 33 ERA R:4FT III. Economic & Fiscal Implications of Proposed Transect Plan Introduction Based on the methodology and approach detailed in the introduction to ERA's fiscal and economic analysis, ERA compared and contrasted the fiscal implications of a range of land uses under the current zoning versus the proposed Miami Transect Plan. ERA based the comparative analytical structure on the following three primary elements: • Physical Implications: Building type, use, height, And character • Economic Implications: Comparison of jobs creation capacity ■ Fiscal Implications: Comparison of property tax generation capacity ERA's findings imply that the proposed Transect Plan does not necessarily represent a wholesale change in land use, job creation, or property tax revenue generation, with the exception of those areas with potential for significant land assemblage (15 acres or more), or a substantial increase in density or intensification of land use. In short, the Transect Plan provides the opportunity for transitioning density to appropriate locations, corridors, or nodes, while retaining the supply of light/heavy industrial uses to provide the City with much needed capacity to serve users of those building types, thereby supporting the regional import/export and light manufacturing economy as a whole. ERA provides the detailed findings resulting from the Wynwood and Little Haiti Priority Development Area analyses in the following summary of results. Basis for Property Tax Valuation Summary of Table Footnotes The following summary of calculation supports Table 3 on the following page, Current and Proposed Property Tax Valuation Characteristics. This table represents the anticipated market value per square foot for a sampling of representative space users associated with the zoning categories identified in each of the PDAs. Estimated property tax revenues are based on the following series of assumptions and calculations: 1. Total building value is based on a sampling of the replacement costs for light/heavy industrial and multifamily buildings reported by Marshall and Swift Cost Estimators (adjusted to reflect current local City of Miami conditions). 2. Land factor value is based on the proportion of land value per dirt square foot as a share of total transaction value for light/heavy industrial buildings as reported by Costar for the City of Miami (as of 4th quarter 2005). Residential examples are based on recent ERA interviews with national urban multifamily real estate developers. 3. Property market value represents the sum of estimated construction costs per square foot plus estimated land costs per square foot. Economics Research Associates Little Haiti industrial Priority Development Area (PDA) Analysis Project 16068 34 ERA DRAF 4. Assessed value is 75 percent of appraised property market value. 5. Property taxes per 10,000 square foot building are based on the estimated assessed value divided by $1,000 and multiplied by the most recently reported City of Miami Real Property Tax Millage rate of 7.9995 (note figures are rounded to reflect illustration purposes). ERA provides examples for 10,000 square foot buildings for each zoning category located within the PDAs to provide a point of comparison for the relative real property tax contribution by building type and space user. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 35 Table 3: CURREIRMIPATED PROPERTY TAX VALUATION CHARACTERISTICS Total Land Factor Property Market Assessed Building (10% of Value (Land + Value/SF Cost Replacement Land Value / Improvements) (@75% of CURRENT ZONING Example Property Type Example Property Class Value/SF Cost) Surface SF /5F/3 Market Value) Property Taxes Per 10,000 SF Building C1: Restricted Light Manf/ Commercial Warehousing Low Cost Class C $25.54 10% $255 $28 $21 C2: Liberal Heavy Industrial/ Commercial Manufacturing Low Cost Class C $26.14 10% $261 $29 $22 Light Manf/ I: Industrial Warehousing Low Cost Class C $25.54 10% $255 $28 $21 R2/3: Low/Medium Apartments/ Density Residential Duplexes Low Cost Class C $67.55 20% $1351 $81 $61 $1,690 $1,725 $1,690 $4,860 Anticipated Property Tax Valuation Characteristics Total Land Factor Property Market Assessed Building (10% of Value (Land + Value/SF PROPOSED TRANSECT Cost Replacement land Value/ Improvements) /5F (@75% of ZONING Example Property Type Example Property Class Value/SF Cost) Surface SF /3 Market Value) Property Taxes Per 10,000 SF Building DI: Specialized Light Manf/ Average Cost Class Industrial Warehousing 8 $5214 10% $5.21 $57 $43 D2: Heavy Heavy Manf/ Industrial Warehousing Low Class B $78.52 10% $7.85 $86 $65 T5 R: Urban Center Mixed -Use Residential (RetaiVResidential) Good Class C $85.06 20% $17.01 $102 $77 $3,441 $5,182 $6,124 Source: Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006. Economics Research Associates Miami 21 Priority Development Area Analysis Project No, 16068 Page 36 WC -P ERA Little Haiti Priority Development Area (PDA) The following table provides a snapshot of a range of potential space user changes associated with the transition from current zoning to the Transect Plan in the Little Haiti PDA. ERA provides these examples for discussion purposes only and comparisons are subject to change. Table 4: CURRENT AND PROPOSED ZONING CHARACTERISTICS ILLUSTRATIVE IMPLICATIONS OF ZONING TRANSFORMATION CURRENT ZONING PROPOSED TRANSECT ZONING 77nd Way Corridor area transitions retains and attracts service -related and light industrial businesses/warehousing uses Area south of East/West FEC Spur retains heavy industrial use and consolidates density and employment Former mobile home park transitions to high density mixed-use/mixed income urban neighborhood Little Haiti Park neighborhood transitions from light industrial to Townhouse residential Site Conditions To Be Verified C-2: Liberal Commercial I: Industrial I: Industrial I: industrial R3: Multifamily Med Density Residential D1: Specialized Industrial D2: Heavy Industrial T5 R: Urban Center Residential T5 R: Urban Center Residential T5 R: Urban Center Residential Source: Duany Plater-Zyberck; City of Miami; Economics Research Associates; 2006. Economics Research Associates Miami 21 Priority Development Area Analysis Project No 16068 Page 37 ERA Little Haiti Priority Development Area Summary of Table Footnotes The following summary of table footnotes apply to Tabll proposed physical, economic, and fiscal characteristics ce 3 through Table l 0, current and following pages: if the Little Haiti PDA, on the 1. User example reflects prototypical development as reflected by current and proposed zoning coneprogram for a range of potential users 2. Square footage estimates ("Illustrative Square F(epts. of the PDAs. Square footages reflect prototypicttet") do not reflect the total built area that could include either a single parcel or a serital conceptual development programs within the Priority Development Areas. These s.s of adjacent combined parcels intended to provide a conceptual comparison of pace estimates and user examples are density, and property values as a result of the Trpotential changes in zoning, land use, consideration by the Miami 21 project. These es nsect Zoning changes under only and are subject to change. ;timates are for discussion purposes 3. "Typical Building Height" reflects average heigl 4. Square footage estimates do not reflect the total it across all developable space. footages reflect prototypical conceptual developbullt area of the PDAs. Square either a single parcel or a series of adjacent comlment programs that could include Development Areas. Dined parcels within the Priority 5. Property value is based on cost approach to calct hard/soft construction costs) as estimated by Malalating market value (land and 6. The economic analysis is based on ERA's estinnrsha]1 & Swift Cost Estimators. category of employment is defined as jobs held F1tion of "at -place" employment. This boundaries of the PDA. At -place employment day employees working only within the which represents jobs held by residents within thiffers from "labor force" employment anywhere. e PDA boundaries working Summary of Tables and Analytical Find • Table 5: Current Physical Characteristics — UngS examples, prototypical lot coverage, implied flocrhe area's current zoning, space user and assumed vacancy rate. Current estimates are,r area ratio, typical building height, interviews with City officials, brokers, land °writ. based on ERA site visits and representatives. and other community • Table 6: Anticipated Physical Characteristic characteristics (as detailed in current conditions)s — The area's anticipated physical and land use guidelines. . based on the Transect Plan's zoning Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysts Project 16068 38 ERA DRAFT Table 7: Current At -Place Employment Characteristics — A representative sampling of the employment yields associated with a range of building types associated with the current zoning categories located in the PDA. Employment yields are based on assumed building occupancy and industry standards for employment per square foot of commercial space. ■ Table 8: Anticipated At -Place Employment Characteristics /Net Gain (Loss) of Jobs — Estimate of the employmentyield associated with the likely building users that would be attracted to D1: Specialized Industrial and D2: Heavy Industrial uses. A small amount of employment is also anticipated with the medium density multifamily properties in the form of building managers and the like. The majority of the space users within the PDA are anticipated to transition from marginal, low employment yielding subsistence jobs to small-scale, specialized manufacturing and service -based businesses / wholesale and warehousing uses with a nominal increase in employment. Notably, ERA anticipates that the Transect Plan provides the opportunity to transition the subsistence employment associated with current uses to upgrade skilled/low- capital intensive employment with an improved wage base due to the concentration of light -industrial activity in designated areas within the city. • Table 9: Current Fiscal Characteristics — Estimate of the current property tax generation capacity of a range of C2: Liberal Commercial special use sites and I: Industrial manufacturing and warehousing space users. The majority of these properties were classified as "Low Cost Class C" as defined by Marshall and Swift Cost Estimators. • Table 10: Anticipated Fiscal Characteristics/Net Gain (Loss) of Property Tax Revenues —Estimate of the anticipated DI : Specialized Industrial and D2: Heavy Industrial, and TR4 and 5 Low to Medium Density Multifamily Residential uses proposed by the Transect Plan. ERA concludes that only those prototypical industrial development opportunities with a significant increase in density or intensification of uses would result in substantial increased in real property tax revenues. Conversely, the transition from industrial to mixed -use residential indicates a significant increase in property tax collections (on a dirt square foot basis) due to the relatively higher value of residential building improvements as compared to industrial construction as well as the likelihood of increased density. However, the introduction of mixed -use properties in a traditionally industrial area should be approached with caution due to the need to maintain appropriate barriers between incompatible land uses. This market condition is especially true with respect to residential development in the City of Miami due the current availability of housing in established urban neighborhoods that would have a better chance of competing within the Miami housing market. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 39 Econorni Miami 21 E R A Table 5: CURRENT PHYSICAL CHARACTERISTICS: LITTLE HAITI PDA Prototype Assumed Typical Development Lot Building CURRENT Parcel Size Coverage Height Illustrative ZONING User Example (Acres) Ratio (Floors)- Square Feet/2 Occupied Implied Space wlln Occupied FAR Building Space (SF) C-2: Liberal Automotive repair, Commercial construction company office/equipment storage, and warehousing 0.29 80% 1 I: Industrial Dairy Processing/ Distribution 4.50 51% 1 I: Industrial Former Mobile Home Park 11.00 24% 1 I: Industrial Warehousing/ Food Distribution, Auto - Related Repair Services,fr- Interior Design Suppliers 1.00 80% 1 R3: Site Conditions To Be Multifamily Verified Med Density Residential 10,000 100,000 115,000 35,000 0.80 95% 9,500 0.51 95% 95,000 0.24 100% 115,000 0.80 80% 28,000. a5EttifQ0i• 4el lelettrsZyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of PPQahtiimite4g1g9ts!AWPIN llisfl: Swift CePTIctih tot§ onomics Research Ass:�fl� 49 2006. ERA Table 6: ANTICIPATED PHYSICAL CHARACTERISTICS: LITTLE HAITI PDA PROPOSED TRANSECT ZONING User Example Prototype Assumed Typical Development Lot Building Parcel Size Coverage Height (Acres) Ratio (Floors)/4 Illustrative Square Implied Feet/2 FAR Occupied Space w/In Occupied Building Space (SF) C2 to D1: Specialized Industrial to D2: Heavy Industrial I to T5 R: Urban Center Residential I to T4 L: Urban General Residential R3 to TS R: Urban Center Residential Specialty craft -related businesses, custom cabinet work, home remodeling services, decorative ironwork Dairy Processing/Distribution Apartment/Condo Building Ground Floor Neighborhood Serving GAFO/F&B Medium Density, Attainable Townhouse Residential with Surface Parking Apartment/Condo Building 0.29 4.50 80% 71% 10,000 0.80 140,000 0.71 962,100 29,800 11.00 69% 3 991,900 2.07 1.00 75% 2 1.00 69% 3 95% 9,500 95% 133,000 90% 865,890 90% 26,820 892,710 65,600 1.50 100% 65,600 90,200 2.07 90% 81,180 Source: Duany Plater-Zyberck, City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006. Economics Research Associates Miami 21 Priority Development Area Analysis Project No. 16068 Page 41 kFT Project 16068 ERA DRAFT Current and Proposed Employment Characteristics Table 7: CURRENT AT -PLACE EMPLOYMENT CHARACTERISTICS: LITTLE HAITI PDA Estimated Employment Occupied Yield Estimated CURRENT ZONING User Example Space (SF) (Jobs/SF) Employment C-2: Liberal Automotiverepair,constructi Commercial oncompanyoffice/equipmen 9,500 800 12 tstorage,andwarehousing I: industrial Dairy Processing/ 95,000 800 119 Distribution I: Industrial Former Mobile Home Park 115,000 N/A N/A Warehousing/ Food I: Industrial Distribution, Auto -Related 28,000 800 Repair Services, Interior 35 Design Suppliers R3: Multifamily Med Site Conditions To Be Density Residential Verified Source: Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006. Economics Research Associates Miami 21 Priority Development Area Analysis Project No. 16068 Page 43 ERA Table 8: ANTICIPATED AT -PLACE ECONOMIC CHARACTERISTICS: LITTLE HAITI PDA PROPOSED TRANSECT ZONING C2 to D1: Specialized Industrial I to D2: Heavy Industrial I to T5 R: Urban Center Residential f to T4 L: Urban General Residential User Example Occupied Space (SF) Est. Employment Yield (Jobs/SF) Estimated Employment TRANSECT ZONING ECONOMIC IMPACT (Net Gain/Loss Jobs) R3 to T5 R: Urban Center Residential Specialty craft -related businesses,. custom cabinet work, home remodeling services, decorative ironwork Dairy Processing/ Distribution Apartment/ Condo Building Ground Floor Neighborhood Serving GAFO/F&B Medium Density, Attainable Townhouse Residential with Surface Parking Apartment/Condo Building 9,500 800 133,000 800 865,890 20,000 26,820 400 892,710 65,600 N/A 81,180 20,000 12 166 17 67 0 48 17 67 84 N/A 2 84 N/A 2 Source: Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar, US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006, Economics Man 21 Pr only Devetopnrenl Aced Analysis Research Associates PrujeLl Nu_ 1 G068 aye 44 ERA DRAFT Current and Anticipated Fiscal Characteristics Table 9: CURRENT FISCAL CHARACTERISTICS: LITTLE HAITI PDA Total Annual Illustrative Assessed Property Square Feet Value (75% Tax CURRENT ZONING User Example (Total FAR) Market Value) Revenues Automotive repair, C-2: Liberal construction company 10,000 $215,620 $1,720 Commercial office/equipment storage, and warehousing I: Industrial Dairy 100,000 Processing/Distribution $2,107,300 $16,8fi0 I: Industrial Former Mobile Home Park 115,000 $2,423,390 $19,390 Warehousing / Food Distribution, Auto -Related I: Industrial Repair Services, Interior 35,000 $737,550 $5,900 Design Suppliers R3: Multifamily Med Site Conditions To Be Density Residential Verified Source: Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006. Economics Research Associates Miami 21 Priority Development Area Analysis Pro}ect No 16068 Page 45 ERA Table 10: ANTICIPATED FISCAL CHARACTERISTICS: LITTLE HAITI PDA PROPOSED TRANSECT ZONING C2 to D1: Specialized Industrial I to D2: Heavy Industrial 1 to T5 R: Urban Center Residential I to T4 L: Urban General Residential R3 to T5 R: Urban Center Residential User Example Specialty craft -related businesses, custom cabinet work, home remodeling services, decorative ironwork Dairy Processing/Distribution Apartment/Condo Building Ground Floor Neighborhood Serving GAFO/F&B Medium Density, Attainable Townhouse Residential with Surface Parking Apartment/Condo Building Illustrative Square Feet (Total FAR) 10,000 140,000 Assessed Value (75% Market Total Annual Property Value) Tax Revenues $430,190 $9,069,500 962,100 $62,326,720 29,800 $1,930,500 991,900 $64,257,220 65,600 $4,249,700 90,200 $5,843,330 $3,440 $72,550 $498, 580 $15,440 $514,020 $34,000 $46,740 TRANSECT ZONING FISCAL IMPACT (Net Gain/Loss Property Tax Revenues) $1,720 $55,690 $479,190 $15,440 $494,630 $28,100 TBD Source: Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department; Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006 Economics Research Associates Miami 21 Priority Development Area Analysis Project No. 16068 Page 46 ERA DRAFT Summary of Economic & Fiscal Findings ERA's findings imply that the proposed Transect Plan does not necessarily represent a wholesale change in land use, job creation, or property tax revenue generation, with the exception of those areas with potential for significant land assemblage (15 acres or more), or a substantial increase in density or intensification of land use. Notably, the commercial components of the proposed Transect Plan offers the potential to both improve and diversify the tax base within the PDA areas, an assertion that recognizes the City of Miami's historic reliance on residential real property taxes as the primary source of General Fund income. In conclusion, the Transect Plan provides the opportunity for transitioning density to appropriate locations, corridors, or nodes, while retaining the supply of light/heavy industrial uses to provide the City with much needed capacity to serve users of those building types, thereby supporting the regional import/export and light manufacturing economy as a whole. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 47 ERA ,DRAFT Implementation Recommendations The implementation recommendations for the Wynwood PDA fall into two categories. The first is the operational and tactical requirements — staffing, funding, new marketing approaches, partnerships, and short-term and longer -term actions. The second is the funding programs, incentives and tools and sources of support available to accelerate and leverage private investment. If the jobs -based economic development strategy outlined in this report are to be implemented, it is ERA's opinion that the City of Miami will need to make a considerably greater commitment of staff, funding and investment of political capital into a comprehensive economic development program than has been the case in recent years. This will mean increased budget, increased capacity and numbers of staff dedicated to economic development, and the commitment of a range of financial and policy tools and incentives. The first part of this section describes the operational and tactical components. The second section summarizes financial and policy tools and incentives that are currently, or could be made available in the PDA's to generate private investment, potentially ahead of the presumed market. In ERA's experience in other cities, redevelopment areas need some, if not all of the following: 1 A Plan for Growth and Allowed Uses -- This will result from Miami 21, in cooperation with owners and activists in Wynwood, and should be incorporate a consensus -building program to align interests and commitments to the Miami 21 recommendations. The issue will be whether property owner expectations for re- zoning will compromise the industrial focus of the plan in the near term. 2. Staff to Coordinate Marketing Outreach and Funding Incentives — The current staff levels in the Economic Development Department are, in ERA's view, insufficient to demonstrate to prospective industrial tenants and developers that the City has made a serious commitment to assisting in the redevelopment management of the PDA. While the City's Television and Film Production office will have a major role to play in Wynwood in conducting outreach to (and coordination with) the media industry and the Florida Film Office to encourage this near -term catalyst use, there are many other components of redevelopment that will require time, experience and focused attention. These include coordination between City departments, assistance with the review and approvals process, development/cultivation of prospects from the targeted employment industries described earlier in this report. ERA estimates that the staffing level of qualified FTE's (full time equivalents) for the Economic Development Department should be a minimum of five persons, considering the volume of work needed to implement and administer/broker/coordinate the tools and incentives in multiple parts of the city. 3. Policy Commitments to Support the Economic Development Strategy — Miami's real estate development community is well -funded and well connected to develop its projects. The job development and enhancement program is somewhat less tangible/harder to measure, but unless there is a policy commitment to protect the objectives of the jobs oriented programs, it is likely that the prioritization of real Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 48 ERA DRAFT estate as a primary development resource will displace economic development, since the returns are more easily quantified and documented. The City's policies should underpin the necessary actions to support economic development, and provide a balance between real estate benefits and long-term job stability and opportunities to improve pay scales through development of better skills. 4. Mechanisms for Site Control and Transfers — Other than condemnations/takings (which ERA considers to be a site control mechanism of last resort), other tools that can assemble (likely through purchase) and write -down property occupancy and/or transfer costs as a vehicle to attract specialized industries. Discounted sales or land lease agreements for publicly owned properties can provide a powerful incentive for industrial recruitment in Wynwood. Given the opportunity for media production as a new industry segment in the area, ERA strongly recommends that the City negotiate an end to the International Trade Center legal dispute in order to make the parcel available to a qualified developer to get the complex converted to a production center as soon as possible. 5. Forming/Encouraging Partnerships with Public and Private Institutions for Skills Training and Education— As targeted industries are identified, Economic Development staff should have the knowledge and ability to develop contacts with both institutional and corporate partners to establish and/or encourage skills training programs. While the industrial sectors targeted for the two East Quadrant PDA's have been identified to best meet near -term and mid-term opportunities, it is clear to ERA that other industries (not targeted for Wynwood or Little Haiti Industrial) will require more fundamental education and skills development support to create a qualified workforce. As an example, Miami's competitive position to attract the Biomedical and Biotechnology industry sector included in ERA's research is hampered by the low level of average achieved education, limited public and private incentives, and availability of venture capital for project cost underwriting. ERA believes that it could take 7-10 years of concerted effort and partnerships with institutions like the hospitals at the Civic Center and the University of Miami to establish a new competitive platform. This does not mean that Biomedical/biotech cannot be attracted to Miami, but rather that it may take years of partnership efforts to increase the odds. There are also precedents for industry -sponsored training programs that respond to all skill levels. A Miami - based yacht builder has reportedly offered to create a privately sponsored training program, both to bolster its own employee opportunities and to address needs in Miami's maritime -related industries. 6. Multi year Budget Commitment to Economic Development — Paralleling the need for more staff is the need for multi -year budget commitments for Economic Development. in ERA's experience, building a comprehensive development strategy can take several years of directed effort, and will involve developing and cultivating relationships within the targeted industries for the program to work. This will mean a multi -year commitment by the city to expand the breadth and number of available staff and programs. While there are a number of local and state programs which can be attracted for financial incentives, there must be a commitment by the City to provide the ongoing staff to follow through. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 49 ERA DRAFT Incentives As the Little Haiti Industrial PDA is primarily focused on industrial sector development, many of the incentive programs that would be developed for the area are traditional economic development tools used to attract, sustain and expand industrial base jobs. Although Little Haiti Industrial PDA is not an Enterprise Zone and is not eligible for all of the advantages of that program, it may be eligible for the following incentives: Qualified Target Industry Tax Refund (QTI): The Qualified Target Industry Tax Refund incentive is available for companies that create high wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. Pre -approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new Florida full-time equivalent job created. For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. The local community where the company locates contributes 20 percent of the total tax refund. There is a cap of $5 million per single qualified applicant in all years, and no more than 25 percent of the total refund approved may be taken in any single fiscal year. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. Many of the manufacturing and processing sectors ERA identified for near and mid-term sector opportunities in the Little Haiti Industrial PDA are listed as eligible for the QTI. Workforce Training Incentives Workforce Florida, Inc. is Florida's private -public partnership for competitive workforce incentives. • Quick Response Training Incentives (QRT): Quick Response Training is a customer -driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion. The Florida Workforce Investment partners with local training providers (typically a community college, area technical center or university) to assist with application and program development or delivery. if the company has a training program, a state training provider will manage the training program and serve as the fiscal agent for the grant funds. Reimbursable training expenses include: instructors'/trainers' salaries, curriculum development, textbooks/manuals, and materials/supplies. This program is customized, flexible and responsive to individual company needs. • Incumbent Worker Training Program (IWT): Incumbent Worker Training is a program that provides training to currently employed workers to keep Florida's workforce competitive and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require training for existing employees. Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068 so ERA DRAFT Additional Tools In order to improve the Little Haiti Industrial PDA's chances for success, additional financial incentives may need to be offered. Special below -market financing may be possible, using industrial revenue bonds, New Markets Tax Credits, and the Federal Home Loan Bank EDGE program to write down interest rates. As funds for incentives are limited, assistance should be offered to those businesses that meet specific hiring criteria or projects that are of a scale that will maximize the leveraged use of public funds. Economics Research Associates Little Haiti industrial Priority development Area (RDA) Analysis Project 16068 51 ERA APPENDICES: Supporting Tables DRAFT Economics Research Associates Little Haiti lndustriai Priority Development Area (PDA) Analysis Project 16068 D1 - SPECIALIZED INDUSTRIAL NAICS ID Industry Sector Description 339100 Medical Equipment and Supplies Manufacturing Types of Businesses 1/ Top-5 Occupations 2/ Manufacture of dental equipment; laboratory apparatus; opthalmic goods; surgical & medical instruments 339900 Other Miscellaneous Manufacturing Manufacture of jewelry; sporting goods; dolls, toys, & games; office supplies (except paper); signs; candles; brooms, brushes, & mops; musical instruments; etc. 1. Production 2. Office &Admin Support 3. Management 4. Transportation & Material Moving 5. Architecture & Engineering 1. Production 2. Office & Admin Support 3. Transportation & Material Moving 4. Management 5. Sales Avg Annual Wage 3/ $35,500 $33,500 423200 Furniture and Home Furnishing Merchant Wholesalers Distribution of carpets; china & glassware; household furniture; household kitchen utensils; linens & towels; office furniture; public building furniture 423300 Lumber and Other Construction Materials Merchant Wholesalers Distribution of concrete & asphalt mixture; brick or stone; doors & windows; fencing; glass; lumber; mobile homes; plywood; roofing, siding, & insulation; wood & metal millwork 423400 Professional and Commercial Equipment and Supplies Merchant Wholesalers 423600 Electrical and Electronic Goods Merchant Wholesalers Distribution of balances & scales; commercial cooking equipment; computers & software; electrical signs; mailing machines; medical, dental, hospital equipment; opthalmic goods; photocopy machines; cameras; shelving Distribution of electrical apparatus & equipment; appliances; Tight fixtures; household audio -video equipment; household refridgerators & freezers; telecom equipment; wiring supplies 423700 Hardware, and Plumbing and Heating Distribution of automotive air-conditioning; Equipment and Supplies Merchant Wholesalers central air-conditioning; bolts, nuts, rivets, & screws; handtools; hardware; knives; plumbing & heating equipment 1. Office & Admin Support 2. Sales 3. Transportation & Material Moving 4. Production 5. Management 1. Transportation & Material Moving 2. Sales 3. Office & Admin Support 4. Production 5. Management $38,000 $36, 900 1. Office & Admin Support 2. Sales 3. Computers & Mathematical 4. Installation, Maintenance, & Repair 5. Management 1. Sales 2. Office & Admin Support 3. Transportation & Material Moving 4. Management 5. Installation, Maintenance, & Repair 1. Sales 2. Office & Admin Support 3. Transportation & Material Moving 4. Installation, Maintenance, & Repair 5. Management $47,200 $45,100 $39,300 D1 - SPECIALIZED INDUSTRIAL NAICS ID Industry Sector Description Types of Businesses 1/ 424100 Paper and Paper Product Merchant Wholesalers Distribution of greeting cards; industrial service paper; pens & pencils; printing & writing paper; stationery 424200 Drugs and Druggists' Sundries Merchant Wholesalers Top-5 Occupations 21 Distribution of biological & medical products; botanical herbs & drugs; pharmaceuticals; vitamins 424300 Apparel, Piece Goods, and Notions Merchant Distribution of clothing; footwear; leather; Wholesalers piece goods & notions T. Office & Admin Support 2. Sales 3. Transportation & Material Moving 4. Installation, Maintenance, & Repair 5. Management 1. Sales 2. Office & Admin Support 3. Transportation & Material Moving 4. Management 5. Healthcare Practitioners & Techs Avg Annual Wage 3/ $3 7, 000 $ 46, 600 424400 Grocery and Related Product Wholesalers Distribution of canned food; confectioneries; dairy; fish & seafood; fresh produce; frozen foods; meat; pet food; poultry; soft drinks 424800 Beer, Wine, and Distilled Alcoholic Beverage Distribution of ale; beer; distilled alcohol; malt Merchant Wholesalers 493000 Warehousing and Storage beverages; neutral spirits; wine 1. Office & Admin Support 2. Sales 3. Transportation & Material Moving $36,900 4. Installation, Maintenance, & Repair 5. Management 1. Transportation & Material Moving 2. Office & Admin Support 3. Sales 4. Production 5. Management $33, 400 512110 Movie Production & Distribution Businesses engaged in operating warehousing and storage facilities for general merchandise, refridgerated goods, farm products, and other non -petroleum warehouse products Businesses engaged in production and/or distribution of motion pictures, videos, television programs, or commercials. Also includes post -production and related services. 1. Transportation & Material Moving 2. Sales 3. Office & Admin Support 4. Management 5. Arts, Entertainment, Sports, & Rec $40,400 1. Transportation & Material Moving 2. Office & Admin Support 3. Sales 4. Production 5. Installation, Maintenance, & Repair 1. Arts, Entertainment, Sports, & Rec 2. Office & Admin Support 3. Management 4. Sates 5. Transportation & Material Moving $27,700 $45,400 D1 - SPECIALIZED INDUSTRIAL NAICS ID Industry Sector Description 512200 Sound Recording Industries Types of Businesses 11 Businesses engaged in producing & distributing musical recordings, publishing musk, providing sound recording, etc. 515100 Radio and Television Broadcasting Businesses engaged in operating broadcasting studios or facilities for over -the -air or satellite delivery of radio and tv programs 811400 Personal and Household Goods Repair and Maintenance Notes: Businesses engaged in restoring personal & household goods Top-5 Occupations 2/ 1. Arts, Entertainment, Sports, & Rec 2. Office & Admin Support 3. Management 4. Sales 5. Business & Financial Operations Avg Annual Wage 3/ $46,100 1. Arts, Entertainment, Sports, & Rec 2. Sales 3. Office & Admin Support 4. Management 5. Computers & Mathematical $52,700 1. Installation, Maintenance, & Repair 2. Production 3. Office & Admin Support 4. Sales 5. Transportation & Material Moving $30,700 1/ Industry sector descriptions from "Guide to Industry & Foreign Trade Classifications for International Surveys, 2002," U5 Department of Commerce, Bureau of Economic Analysis 2/ Top-5 occupations based on national -level employment characteristics from US Department of labor,. Bureau of Labor Statistics 3/Average annual wage based on weighted average occupational wage data from Florida Agency for Workforce Innovation for Miami -Dade County. Occupational wages are weighted by share of occupational employment within an industry sector. Source: U5 Department of Commerce, Bureau of Economic Analysis; U5 Department of Labor, Bureau of Labor Statistics, Florida -Agency for Workforce Innovation; Economics Research Associates, 20006 D2 - HEAVY INDUSTRIAL NAICS ID Types of Businesses 1/ 312000 Beverage and Tobacco Product Manufacturing Manufacture and bottling of beer, ale, & malt liquor; distilled & blended liquors; ice; purified & bottled water; soft drinks; wines & brandies Industry Sector Description 327000 Nonmetallic Mineral Product Manufacturing Manufacture of clay products; glass products; cement & concrete products; lime & gypsum products; other nonmetallic mineral products 424600 Chemical and Allied Products Merchant Wholesalers Top-5 Occupations 2/ 1. Production 2. Transportation & Material Moving 3. Sales 4. Office & Admin Support 5. Installation, Maintenance, & Repair 1. Production 2. Transportation & Material Moving 3. Office & Admin Support 4. installation, Maintenance, & Repair 5. Construction & Extraction Avg Annual Wage 3/ $32,700 $32,700 Distribution of acids; dyestuffs; explosives; industrial chemicals; plastic materials; plastic films & sheets 424800 Beer, Wine, and Distilled Alcoholic Beverage Distribution of ale; beer; distilled alcohol; malt Merchant Wholesalers beverages; neutral spirits; wine 493000 Warehousing and Storage Notes: 1. Sales 2. Office & Admin Support 3. Transportation & Material Moving 4. Production 5. Management $41,600 Businesses engaged in operating warehousing and storage facilities for general merchandise, refridgerated goods, farm products, and other non -petroleum warehouse products 1. Transportation & Material Moving 2. Sales 3. Office & Admin Support 4. Management 5. Arts, Entertainment, Sports, & Rec $40,400 1. Transportation & Material Moving 2. Office & Admin Support 3. Sales 4. Production 5. Installation, Maintenance, & Repair $27,700 1/ Industry sector descriptions from "Guide to Industry & Foreign Trade Classifications for International Surveys, 2002," US Department of Commerce, Bureau of Economic Analysis 2/ Top-5 occupations based on national -level employment characteristics from U5 Department of Labor, Bureau of Labor Statistics 3/ Average annual wage based on weighted average occupational wage data from Florida Agency for Workforce Innovation for Miami -Dade County. Occupational wages are weighted by share of occupational employment within an industry sector. Source: US Department of Commerce, Bureau of Economic Analysis; US Department of Labor, Bureau of Labor Statistics; Florida Agency for Workforce Innovation; Economics Research Associates, 20006 T5-R - URBAN CENTER RESIDENTIAL NAICS ID Industry Sector Description 323000 Printing and Related Support Activities Types of Businesses 1/ Top-5 Occupations 2/ Avg Annual Wage 3/ Printing of books; business forms; digital images; greeting cards; newspapers; periodicals; etc. 339900 Other Miscellaneous Manufacturing Manufacture of jewelry; sporting goods; dolls, toys, & games; office supplies (except paper); signs; candies; brooms, brushes, & mops; musical instruments; etc. 1. Production 2. Office & Admin Support 3. Transportation & Material Moving $33,500 4. Sales 5. Management 1. Production 2. Office & Admin Support 3. Transportation & Material Moving S33,500 4. Management 5. Sales 423200 Furniture and Home Furnishing Merchant Wholesalers Distribution of carpets; china & glassware; household furniture; household kitchen utensils; linens & towels; office furniture; public building furniture 811400 Personal and Household Goods Repair and Businesses engaged in restoring personal & Maintenance household goods Notes: 1. Office & Admin Support 2. Sales 3. Transportation & Material Moving 4. Production 5. Management $38,000 1. Installation, Maintenance, & Repair 2. Production 3. Office & Admin Support 4. Sales 5. Transportation & Material Moving $30,700 1/ Industry sector descriptions from "Guide to -Industry & Foreign Trad-e Classifications for International Surveys, 2002,"US Department of Commerce, Bureau of Economic Analysis 2/ Top-5 occupations based on national -level employment characteristics from US Department of Labor, Bureau of Labor Statistics 3/ Average annual wage based on weighted average occupational wage data from Florida Agency for Workforce Innovation for Miami -Dade County. Occupational wages are weighted by share of occupational employment within an industry sector, Source: US Department of Commerce, Bureau of Economic Analysis, U5 Department of Labor, Bureau of Labor Statistics; Florida Agency for Workforce Innovation; Economics Research Associates, 20006 ERA AFT SUMMARY OF FISAL & ECONOMIC ASSUMPTIONS Real Property Tax City of Miami Millage Rate Assessed Value Equalization Rate Rate Value Basis Per 7.9995 1,000 75% Market Value State and Local Sales Tax Rate Value Basis Per Honda State and Local Taxes 7.0% Gross Sales City of Miami Sales Tax Revenue Sharing Rate Value Basis Per General Fund Uses 0.5% Transportation Uses 0.5% 1.0% Gross Sales High -Yield Square Feet/ Employment Generation Factors Low -Yield Square Feet/Job Job FTE ASSUMPTION/2 Industrial 800 500 1 Retail 450 400 1 Office/Office Flex 400 250 1 Multifamily Residential (Management) 20,000 20,000 0 4 Square Feet Per Acre 43,560 1/ Miflage rate reflected proposed reduction of one-half and from 8 4995 to 7.995 per City of Miami 2/ FTE assumption based on Full -Time Equivalent employment factor equal to 2,080 work hours per year per employee, or a 40 hour work week. Source. Duany Plater-Zyberck; City of Miami Department of Economic Development; City of Miami Finance Department, Costar; US Bureau of Economic Analysis; Marshall & Swift Cost Estimators; Economics Research Associates, 2006 Economics Research Associates Little Haiti Industrial Priority Development Area (PDA) Analysis Project 16068