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248-2000 LTC CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miaml-beach.f1.us L.T.C. No.2 {0S-tJi) LETTER TO COMMISSION November 9, 2000 TO: Mayor Neisen O. Kasdin and Members of the City Commission FROM: Jorge M. Gonzalez \ ~ City Manager 0 . 0 SUBJECT: GOALS CONFERENCE STATE OF THE CITY ADDRESS Attached please find the text of my presentation of the State of the City Address at the Miami Beach Chamber of Commerce Goals Conference, held last Saturday, November 4, 2000. Along with the remarks, a five minute video clip was presented. Should you wish to receive a copy ofthis video, please let me know. Please feel free to contact me if you have any questions or would like to discuss this matter. JMG:ptw Attachment c: Assistant City Managers Executive Assistants to the City Manager Department DirectorslDivision Heads f:1 cmgr/$all/jorgegonlmemos/address City of Miami Beach State of the City Address November 4, 2000 City Manager Jorge M. Gonzalez "Envision the Possibilities" Good Morning! Thank you for those kind comments and this generous reception. I'd like to thank the Chamber of Commerce for inviting me to the Annual Goals Conference. It is truly a pleasure to be here today as your City Manager to present to you, the State of the City. As most of you know, I have been on the job for slightly more than two months - although at times it seems like it's been more like two years. There are so many things going on in the City that, on occasion, I feel like I am trying to hop on a merry-go-round that's in continuous motion. While the ride is pleasant, it has its ups and downs - and getting on is always the trickiest part. I have been advised that the formula for a great speech is to have a great beginning and a great ending; and that these two should occur as close to each other as possible. So while I have been allocated a generous amount of time, I hope to be able to stick to this formula so we can get on with the important work of the Goals Conference. While I have had the opportunity to meet many of you during my two months here, and many more of you have heard or read about me by now, I thought it might be helpful to more fully introduce myself, my values and my goals for the City of Miami Beach. . I have a strong commitment to providing high qualitv customer service in an efficient and orofessional manner. . I am committed to ensuring diversity within our organization. Equally important to me is to have an inclusive organization, seeking and encouraging participation and input from everyone involved in developing recommendations or decision-making. . I value and am committed to encouraging emoowerment and teamwork at all levels of the organization. Concurrently, I also expect resoonsibility and accountability. I want to develop an environment where all employees of the City take pride and ownership over all aspects of City operations. . I value and am committed to encouraging responsible risk-takina. creativity and Dro-activity. Leaders should take risks to continuously improve, think creatively in addressing issues and be proactive in anticipating challenges and opportunities. It is my goal to develop and lead an organization that is focused on the goals of the community, whose human and financial resources are closely aligned with its mission; an organization that is proactive in anticipating challenges and can develop creative ways to address them; an organization that is nimble enough to quickly capitalize on opportunities as they may present themselves; an organization that is engaged in continuous improvement and learning; and an organization that WE all have confidence in and are proud to be a part of. How do we get there? Events such as this one today allow us to "envision the possibilities," to set goals for the future, and to imagine what can be accomplished if we focus our resources on achieving excellence. But sometimes, we don't realize or appreciate the magnitude of our achievements because often they are incremental in nature. I'd like to ask you all to take a step back and reflect on the last few years. I know that a couple of years ago, many of you were taken on an imaginary tour of our "City of the Future" -- on the Electrowave, no less. I'd like to try something slightly different - and it won't even cost you a quarter for the ride. When I applied for the position of City Manager, I thought I was the perfect candidate. I had grown up in the area. I thought I knew the city and the community. I had the experience and I had the energy and creativity. I felt my time away from the area had given me the ability to offer a truly fresh perspective while still maintaining a connection to the community. During my six years away, a lot has changed. When I arrived in Miami Beach, I quickly realized that it was not the city I remembered. I discovered a community that cares - a city investing in itself. A lot of this change can be attributed to the results of prior goal-setting sessions, active community involvement, public processes, and progressive leadership from the Mayor and Commissioners in years past. Allow me to share with you -- from my perspective -- what I discovered when I arrived. CUE VIDEO (5:00) 2 Miraculously, all that you just saw is the result of only six years of change. Change that included great strides in the way this community lives, plays, works and conducts business. Change that is a testament to this City's great potential for progress. What makes Miami Beach so unique? It's the rich fabric of our City, woven from a community that cares and invests in itself, that distinguishes Miami Beach from any other place in the world. A City that participates in open processes and works to improve what we have already. Take a look at some of the contributing factors: the ongoing commercial/retail development; the burgeoning entertainment industry; the vibrant cultural arts community; the booming tourism market; the active residential community that is investing in its neighborhoods and promoting a better quality of life; and a government that cares. I have certainly inherited quite a great community. Commercial/Retail Development Quality commercial and retail developments are nSlng throughout the City. Citywide office space totals 1.5 million square feet and is expected to rise to over two million square feet by 2003. This is easily evidenced by the increase in building permit activity and building permit values. For example, in 1990 an average of 2,500 permits was pulled for a total value of $96 million dollars. So far this year, more than 3,200 permits have been pulled at a total value in excess of $343 million dollars. This represents more than a threefold increase. Our market is maturing with new upscale, institutional investors eager to target our diversified market. Renowned companies such as Starwood, Lennar, and the Charles E. Smith Companies are all currently developing projects in our City. We now boast a retail sector that is the envy of any sophisticated city in the world. Many of our new retail business facades were shown in the video. Retail sales in Miami Beach totaled more than $1.35 billion dollars in 1998. This is about the same amount as is generated in Charleston, S.C., and approximately 50 percent of the total retail sales posted in Orlando. The 7th Street Garage and Goldman property renovations served as a retail catalyst in developing a four-block stretch of Collins Avenue into an upscale retail district now boasting more than 30 nationally recognized fashion retailers. These generate sales averaging $753 dollars per square foot, with some reaching up to $1,500 dollars per square foot. 3 Over the past five years, the City has been the beneficiary of new retail business openings such as Nine West, Nike, Guess, GAP, Polo Sport, Kenneth Cole, Pottery Barn, two Banana Republic stores, Regal Cinemas, William-Sonoma, Sephora, and many more. And there is more to come. Future store openings include Bebe, Prada, Hugo Boss, and Victoria's Secret, just to name a few. Renowned restaurant establishments such as Joe's, China Grill, and Smith & Wollensky have been joined by long-standing, trend-setting establishments such as Bamboo, Tantra, B.E.D., Nemos, Joia and newer restaurants in the North Beach area such as Baraboo, Vacas Gordas, Prima Pasta and Tango Beef. Soon to open will be Robert De Niro's NOBU Restaurant and the Whiskey Bar. In only two years, the South Beach office market has gone from being unrecognized in Miami-Dade County to being the most sought after office address in all of South Florida. Class "B" buildings near Lincoln Road are now generating the same rental rates as Class "A" buildings on Downtown Miami's Brickell Avenue. The branding of Miami Beach as "Silicon Beach, the Entertainment Capital of the Americas" is helping to fuel the exponential demand for growth and promises to bring more success in the future. But we recognize that progress sometimes needs a helping hand. The City has approved projects that will bring more than 275,000 square feet of new class "A" office space into the market. In addition, another 289,000 square feet of conversion/rehabilitation projects are underway or approved. Combined, this represents a net increase of almost 400,000 square feet of office space to accommodate the burgeoning entertainment industry, which leads me to our next thread. Entertainment Industry As of March of this year, more than 135 entertainment companies call Miami Beach home, occupying more than 60 percent of all available office space. With the arrival of companies like the Cisneros TeleviSion Group, Sony International, MlV Latin America, Yupi.com, EI Sitio.com, Starmedia Network, and Maverick Miami. Miami Beach has become the undisputed capital of the Latin American entertainment industry. The newest arrivals to the City include Panamerican Sports Network, a major Latin American cable television provider creating more than 250 new jobs, and Techspace, a leading teChnology incubator company that has leased 40,000 square feet on Lincoln Road. These companies have helped solidify and diversify the City's resident workforce, making Miami Beach a place where people truly can work and play and call home. 4 Cultural Arts Community With six of the 18 major art organizations in South Florida already calling Miami Beach home, our city has taken center stage in the exciting and creative world of the arts. Miami Beach is committed to enhancing and promoting cultural differences, as well as bringing a larger following to our arts community, Miami Beach has a variety of exceptional facilities and offerings to suit all types of interests. We have substantially completed the expansion and renovation of the Bass Museum of Art, making it a first-rate exhibition space. Slated to re-open in January 2001, the Museum is also one of the key anchors in the planned Collins Park Cultural Campus. Across from the Bass, the Miami City Ballet already occupies their new three-story 63,000 square foot, state-of-the-art home. Overall, the City has committed more than $30 million dollars to the Collins Park Cultural Campus. Continuing its tradition of excellence, the Jackie Gleason Theater will celebrate its fiftieth anniversary next year. It continues to expand its programming, bringing diverse entertainment options to all segments of our community. Shortly we, along with the New World Symphony, will begin a site analysis to develop a new "Soundspace" facility -- an acoustically perfect and technologically advanced performance and broadcast facility near Lincoln Road. Recognizing the need to assist artists and their craft, we continue to nurture emerging art groups. Our Cultural Arts Council has grown into a valuable technical and funding resource, offering immeasurable assistance to our diverse cultural arts community. Over the last three years, the Council has awarded 65 non-profit art organizations more than $2 million dollars in grant money. We have successfully inaugurated our "Second Thursdays" art celebration program, generating a great deal of excitement and acclaim as well as revitalizing our community's interest in local art events. Our "Art in Public Places" program also continues to thrive, adding new and refurbished works to its already impressive collection. With the variety of cultural activities and the recent signing of ART Basel, Miami Beach has solidified its position as a premier cultural destination, helping identify an emerging cultural tourism market that did not exist before. Tourism Last year, over four million visitors stayed in Miami Beach and contributed more than $3 billion dollars to the region's economy. South Beach alone garnered over seven million visitors, making it the number one destination in South Florida; as 5 well as one of the most popular and recognized travel hotspots in the world. In the State of Florida, it is second only to tourism giant Walt Disney World. The $130 million dollar Loews Miami Beach Hotel opened in late 1998, creating more than 800 direct jobs. The project in turn spurred the renovation of numerous surrounding historic hotels. Following on the heels of the Loews success story, the City has identified more than $1.2 billion dollars in hotel investment between 1998 and 2002, accounting for almost 3,700 new rooms and nearly 5,000 renovated rooms. Miami Beach strives not only to be known for individual world-class hotel properties, but for its collection of quality, upscale hotels as well. Among those are the new 230-room South Beach Marriott, and this hotel, the Deauville, which recently underwent a $25 million dollar renovation as the Radisson. Also, along the Collins Avenue Hotel Corridor, more than 1,200 new four and five-star hotel rooms will become available in the next several months. These include: the Ritz- Carlton with 380 rooms and a $100 million dollar investment; the "W" with 200 rooms and a $57 million dollar investment; the Shore Club with 325 rooms and a $125 million dollar investment, and the Aman/Sassoon with 90 rooms and a $125 million dollar investment. To accommodate our visitors and residents alike, the Electrowave, the first alternatively fueled transportation system in the State of Florida, has transported over 2.5 million passengers on its South Beach route. The electric transportation system will soon expand its route to the upper Collins area attracting more hotel guests to its route. Residential Investment and Quality of Life Improvements The video you saw earlier showed the "faces" of our city. Children playing in our playgrounds, families enjoying the various activities only our City has to offer, dedicated City employees providing valuable neighborhood and streetscape improvements, and businesses investing in our economic future. It highlighted just how far we've come as a community. Currently: . Our estimated population is at about 97,000 residents with a median age at just over 43 years of age. . Our unemployment rate has dropped from 9.3% in 1994 to 6.5% in 2000. During the last several years, more than $1 billion dollars were invested in new construction and renovations of residential property. In the first quarter of this year, 87 percent of all condo sales in Miami-Dade County occurred in Miami Beach. The average time to sell a house on the Beach has decreased from 185 days in 1995 to 118 days in 1999. During the same time period, the average home price has nearly doubled from $335,000 to an average of $600,000. 6 Still, we must work to ensure that there are affordable housing options for our elderly and less fortunate residents. On education, our schools are excelling. feAT scores increased at all of our schools, resulting in high ratings for our entire feeder pattern. These scores take on even greater meaning when considering that ratings have improved while enrollment has also increased. School enrollment has seen an upswing from almost 8,000 students in 1990 to more than 9,200 students in 2000, representing a 15 percent increase overall. This is representative of the increase in families with younger children calling Miami Beach home. As you know, a $92 million dollar general obligation bond for improvements to our neighborhoods, parks and beaches and fire safety equipment and facilities is underway. The City will leverage these funds, and generate in excess of $300 million dollars in improvements for all our neighborhoods. Targeted improvements include water, sewer, sidewalks, streetscapes, stormwater systems, and many more throughout the City. The neighborhood projects are a result of plans made through active residential participation. On a positive fiscal note, the City's credit ratings continue to rise and recent bond sales have been very competitive, resulting in very low interest rates. Through prudent fiscal constrain, our financial condition is sound. Our crime statistics continue to reflect a downward trend, with "Part 1" crimes dropping respectively six percent and 10 percent over the past two years, due in large part to our community policing initiatives. With the help of the Chamber, the City has prioritized and we are implementing the Business Resolution Task Force's recommendations, enhancing staffing levels and streamlining the Planning/Building permitting processes and investing in technology. The Land Use Board approval process was streamlined by separating the Historic Preservation Board and Design Review Boards and offering more administrative level review of projects. We are also investing in new technology to facilitate the permitting processes and the flow of information. A reconfiguration of the second floor of City Hall to accommodate the expansion of permitting hours and facilitate the plans review process is charted for the near future. And, for the first time in recent years, the City has reduced its millage rate while increasing the level of service and concentrating on customer service. 7 . We strive to emphasize a government that cares. Thousands of our hard- working employees actively participate in serving our community, joining with service organizations to help the less fortunate or those in need. They also continue to demonstrate their generosity and caring by doubling our total United Way contributions over the past two years and participating in numerous worthy charitable events. Making the City "business and customer friendly" is one of my top priorities. Creating an environment that seeks to assist our residents and visitors in a cordial and professional manner is of the utmost importance. A customer service specialist is currently implementing new programs and training, aimed at teaching all of our employees how to better assist residents and visitors alike with any multitude of problems. We have kicked off our citywide "I Put My Customers First Every Day" customer service campaign, emphasizing courtesy and professionalism in every department. Also, to better assist residents with any questions or concerns they may have, an information desk is now available on the first floor to provide proper guidance and direction. 1 would like to ask the staff members here today to rise and be acknowledged on behalf of all the employees of the City of Miami Beach. 1 have asked each of them to join me in developing and leading our organization and helping the City achieve its greatest potential. The timing of this event is very opportune. Staff and 1 will be conducting our own retreat and organizational prioritizing session next week. We will be developing our internal goals and objectives for the coming year. 1 expect that we will be discussing many of the same notions that will come up later today. To conclude, 1 would like to say that the state of the city is strong, alive, vibrant, growing and evolving. It is said, "the time to fix a leaky roof is when the sun is shining." Well, the sun is certainly shining on Miami Beach and the time to invest in our future is today! As you proceed with your work today, 1 ask you to "envision the possibilities." Let your imaginations run free as you set your goals for the upcoming year and finally, ask yourself, five years from now if you were producing a video like the one you just saw, what would X2Y like to see in it? Thank you and good luck. 8 'f.t:;"~'i;