Resolution 2021-31619 RESOLUTION NO. 2021-31619
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS
FEBRUARY 19, 2021 MEETING, AND AUTHORIZING THE
ADMINISTRATION TO DEVELOP AND IMPLEMENT BUSINESS
ATTRACTION INDUCEMENTS AND SERVICES, INCLUDING
EXPEDITED PLAN REVIEW AND PERMITTING INCENTIVES FOR
TARGETED INDUSTRIES.
WHEREAS, on February 19, 2021, the Finance and Economic Resiliency
Committee (FERC) unanimously recommended that the City Commission prioritize the
attraction of technology and financial services firms to the city in order to diversity the
economy and promote resiliency; and
WHEREAS, in recent years, the City of Miami Beach has become more
economically diverse with the establishment of headquarters and offices among the
technology and financial services industries with the potential for a hub to develop; and
WHEREAS, in recent months and in correlation with the COVID-19 pandemic,
Miami-Dade County has seen an uptick in relocations of technology and financial services
firms from the Northeast and Silicon Valley; and
WHEREAS, median and average wages among the technology and financial
services industries are substantially higher than median and average wages in Miami-
Dade County; and
WHEREAS, the Mayor and City Commission have identified the need for making
Miami Beach more business and user-friendly as a key objective in the City's 2019
Strategic Plan; and
WHEREAS, the Mayor and City Commission recognize the benefits of a local
approach to growing these industries in the City of Miami Beach; and
WHEREAS, the Mayor and City Commission seek to further diversity the Miami
Beach economy by attracting, retaining and expanding businesses in these targeted
industries through the development of inducements and services to promote growth; and
WHEREAS, expediting plan review and building permits for projects or
developments related to the attraction, retention or expansion of businesses in the
technology and financial services industries promote economic diversification and
resiliency; and
WHEREAS, the Mayor and City Commission accept the recommendation of the
Finance and Economic Resiliency Committee to direct the Administration to develop and
implement business attraction inducements and services including expedited plan review
and permitting incentives for targeted industries.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission hereby accept the recommendation of the Finance and Economic Resiliency
Committee at its February 19, 2021 meeting, and authorize the Administration to develop
and implement business attraction inducements and services, including expedited plan
review and permitting incentives for targeted industries.
PASSED and ADOPTED THIS 17 day of Hardt. 2021 .
ATTEST:
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RAFAE E. G NADO, CITY CLERK DAN GELBER, MAYOR
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: March 17, 2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS
FEBRUARY 19, 2021 MEETING, AND AUTHORIZING THE
ADMINISTRATION TO DEVELOP AND IMPLEMENT BUSINESS
ATTRACTION INDUCEMENTS AND SERVICES, INCLUDING EXPEDITED
PLAN REVIEW AND PERMITTING INCENTIVES FOR TARGETED
INDUSTRIES.
RECOMMENDATION
See attached Consolidated Commission Memorandum.
SUPPORTING SURVEY DATA
See attached Consolidated Commission Memorandum.
Applicable Area
Citywide
Is this a "Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
No No
Strategic Connection
Prosperity- Revitalize targeted areas and increase investment.
Legislative Tracking
Economic Development
ATTACHMENTS:
Description
D Resolution
Page 264 of 2284
o Consolidated Commission Memorandum
Page 285 of 2284
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachFl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J. Aguila, Interim City Manager
DATE: March 17, 2021
SUBJECT: BUSINESS ATTRACTION, RETENTION AND EXPANSION
STRATEGIES AND INITIATIVES FOCUSED ON TARGETED
INDUSTRIES INCLUDING TECHNOLOGY AND FINANCIAL SERVICES
This is a Consolidated Commission Memorandum related to targeted business
attraction, retention and expansion of firms within the technology and financial
services industries, including Resolutions urging Miami-Dade County and directing
the Administration to prioritize attraction of targeted industries (Agenda Item C7
E); authorizing the development and implementation of inducements and services
such as expedited plan review and permitting for targeted industries (Agenda Item
C7 F); as well as creating a Job Creation Incentive Program (Agenda Item C7 G).
RECOMMENDATION
Adopt Resolutions (Agenda Items C7 E, C7 F and C7 G) to encourage and
promote attraction, retention and expansion of technology and financial services
firms to and within the City of Miami Beach.
BACKGROUND
The Mayor and City Commission have identified the need for making Miami Beach
more business and user-friendly as a key objective in the City's 2019 Strategic
Plan. On September 17, 2020, the Land Use and Sustainability Committee
discussed the migration of corporate office tenants from locations outside of
Florida to the greater Miami area, particularly in correlation with the COVID-19
pandemic.
As the pandemic has uncovered the economic vulnerabilities of the City, at the
December 18, 2020 and January 22, 2021 Finance and Economic Resiliency
Committee (FERC) meetings, there were discussions pertaining to methods to
diversify the economy and reduce the city's dependency on the tourism and
hospitality industries. The discussions surrounded identifying targeted industries
and establishing an approach to attracting these industries to Miami Beach while
Page 288 of 2284
Consolidated Commission Memorandum
Business Attraction of Targeted Industries
March 17, 2021
Page 2 of 5
continuing to support and strengthen core industries.
The focus on technology and financial services firms emerged based on recent
industry trends. With current interest in Miami-Dade County from out-of-state
technology and financial services firms and investors, Miami Beach is poised to
attract firms that create jobs at above average wages in industries proven to be
resilient in the face of the COVID-19 pandemic. Additionally, in recent years and
more so in recent months, business owners are changing their perspective on what
a desirable business environment looks like.
Class A Office space is often a prerequisite for securing relocations within these
industries. As demand for Class A Office space has increased, Miami Beach has
taken steps to create a pipeline for this product including recent changes to zoning
regulations and a Request for Letters of Interest to redevelop certain city-owned
parking lots.
In recognition of the growing migration of technology firms to Miami-Dade, and
more particularly to Miami, on January 21, 2021, the Miami-Dade Board of County
Commissioners adopted a Resolution (Exhibit A) directing the County Mayor to
develop recommendations for economic development measures to attract
technology companies to relocate their headquarters to Miami-Dade County, to
foster technology start-ups to launch and remain in the County, and to retain and
promote the development of technology companies currently existing in the
County.
Recently, the Administration has taken steps to bolster the relationship between
the city and the Beacon Council, Miami-Dade County's official economic
development organization. The Beacon Council has provided a summary of
business attraction and relocation considerations (Exhibit B) which in general are
likely to influence relocation decisions to the area.
ANALYSIS
With growing interest among financial services and technology firms and investors
from the Northeast and Silicon Valley and in a competitive market that includes
nearby development authorities and community redevelopment agencies, the City
must be aggressive with business recruitment efforts. On February 19, 2021 , the
Finance and Economic Resiliency Committee discussed a three-pronged
approach to business attraction focused on targeting technology and financial
services firms. The Administration identified a strategy to incorporate the following
elements:
1) Policy Direction and Relationship-building;
2) Inducements and Services; and
3) Public Relations and Marketing.
Page 289 of 2284
Consolidated Commission Memorandum
Business Attraction of Targeted Industries
March 17, 2021
Page 3 of 5
The Finance and Economic Resiliency Committee also recommended the
following six (6) tactics in furtherance of business attraction, retention, and
expansion of businesses within the identified targeted industries. The
Administration seeks City Commission action on three (3) of the six (6) tactics.
1) Affirmative Resolution (Agenda Item C7 E): A Resolution of the
Mayor and City Commission declaring an intent to attract technology
and financial services firms/businesses to Miami Beach. Additionally,
the Resolution provides direction to the Administration and urges
Miami-Dade County to pursue steps to make this type of business
attraction a priority. This declaration sends the message to existing
and potential businesses that the city is committed to cultivating and
supporting these targeted industries.
2) Business Attraction Inducements and Services — Expedited Plan
Review and Permitting (Agenda Item C7 F): No-cost incentive
offered to certain eligible businesses and developers to encourage
targeted relocations or expansions and associated development.
Efforts by the city to provide concierge and expedited services are
attractive to businesses seeking to relocate or expand.
3) Business Attraction Incentives —Job Creation Incentive Program
(Agenda Item C7 G): Business relocations are often spearheaded by
site selectors who do the legwork necessary for a relocation decision
to be made, such as evaluate and vet the various opportunities
available to the prospective business. Site selectors often inquire
about financial incentives as part of their fact-finding and decision-
making process. The Job Creation Incentive Program (JCIP) (Exhibit
C) is a baseline financial incentive package that would ensure that the
city has a greater competitive advantage in the local market and the
ability to leverage existing incentives available from the State and
County. The purpose of the JCIP is to strategically attract companies
and expand existing businesses within the City of Miami Beach while
increasing the number of quality, high-wage jobs in the community.
The applicant must create or relocate a minimum of ten (10) new,
fulltime equivalent jobs which average annual wages meeting or
exceeding 125% of the Miami-Dade County or State of Florida average
wage, whichever is higher, at the time of the application.
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Consolidated Commission Memorandum
Business Attraction of Targeted Industries
March 17, 2021
Page 4 of 5
Fiscal Impact: The proposed incentive is performance-based. Job
creation must be demonstrated and/or sustained prior to disbursement
of award. The JCIP proposes a lengthy installment period in order to
avoid shocking the General Fund without the additional revenue
generation that the incentive is intended to induce. JCIP applications
and awards will vary in quantity and amount based on the number of
applications and the application details. Applications may be accepted
and awarded at the discretion of the City Commission. A submitted
application does not bind the City Commission to grant an award. The
maximum annual award for a single company in a single year is
$60,000 if all jobs are created or relocated during that year. The
maximum total award over a 3 to 4-year period is between $180,000
and $240,000 for a single company. Award funding may be budgeted
on an annual basis or through a budget amendment.
4) Messaging and Collateral: Communicating with the appropriate
audience is critical to being successful in efforts to recruit businesses
and investors. With a myriad of options both locally and nationally, it is
essential that the city highlight the strengths and opportunities that set
us apart from other locales. The Administration will develop and
disseminate collateral and content through public relations and
marketing efforts. (To be implemented administratively)
5) Business Leadership Advisory Council: Development of a Business
Leadership Advisory Council in coordination with existing business
groups. The Council is to be comprised of relevant, top-tier industry
leaders in order that the City Commission and Administration may
draw from the insights of the Council to develop policies well suited to
attract like businesses within the focus areas of technology and
financial services. (To be implemented administratively)
6) Access to Leadership: The Mayor and City Commission play a
significant role in the business attraction process. Many business
owners and leaders make relocation decisions, at least in part, based
on the professional relationships built with elected officials and their
perception of whether the elected body is supportive. The Mayor and
City Commission serve as ambassadors for the city in this regard. This
tactic may be achieved by developing a structured, yet flexible method
of offering potential business owners access to the elected body which
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Consolidated Commission Memorandum
Business Attraction of Targeted Industries
March 17, 2021
Page 5 of 5
includes a combination of the Mayor along with all or designated
members of the City Commission. (To be implemented
administratively in consultation with the Mayor and City Commission)
SURVEY DATA
Taking steps to diversify the economy by improving the business climate is
essential to the resiliency of the city. According to the 2019 Miami Beach
Community Satisfaction Survey, when asked how you would currently rate the City
of Miami Beach as a place to do business, 30% of businesses reported that the
City has improved. By implementing a multifaceted approach to business
attraction, retention and expansion, the City of Miami Beach will strengthen
existing businesses as well.
CONCLUSION
Traditionally, the city has benefited from its international status in order to attract
visitors and investment. Today, it is imperative that the city enact a tailored
approach and take proactive measures to seek out and attract new industry.
Attracting new business and investment to the city is a top strategic priority and
the tactics discussed above are necessary to promote and increase awareness of
Miami Beach's competitive strengths. The Administration supports the
recommendation of the Finance and Economic Resiliency Committee to enact the
measures outlined herein.
Page 292 of 2284