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059-2001 LTC CITY OF MIAMI BEACH CITY HALL 1700 CONVEN'fION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 hllp:\Ici.miami-bea9h.fl.us ~. L.T.C. No...st- ~02( LETTER TO COMMISSION March 21,2001 TO: Mayor Neisen O. Kasdin and Members of the City Commission FROM: Jorge M. Gonzalez ~~ City Manager .<. SUBJECT: Economic impact of the arts in Miami-Dade County The Miami-Dade County Department of Cultural Affairs recently conducted an economic impact study for the arts and cultural industry in Miami-Dade County. The annual impact to the community from the arts and cultural industry is valued at over $538 million. We can take enormous pride in Miami Beach's significant contribution to this industry. JMG:~#-' 6 ::J ~ ,A STUDY I!Y THE MIAMI-DADE COUNTY DEPARTMENT OF CULTURAL AFFAIRS Savvy investors look at money not solely for its purchasing power, but also for the results of its investment. The conclusions of a recent study of Miami-Dade County's arts and cultural industry confirm that this sector of our economy delivers highly profitable returns for our community. Measuring the impact of the arts and tulture in financial terms documents an important dimension of this enterprise: the arts and culture, broadly valued for their indelible mark every day on our community's quality of life, contribute $538.3 million in economic impact every year. The rapid rise of Miami-Dade County's arts and cultural industry is a national success story. Today, there are more entertainment and educational opportunities for families and children than ever. OUf vibrant cultural life is a direct contributor to OUf resurgence as a center for international tourism and commerce. The arts are effective catalysts for revitalizing OUf neighborhoods. Culture helps us understand and celebrate our remarkable diversity and history as a community. , , , , , , , , , , , , , , This study substantiates the value of our non-profit cultural sector in conservative financial terms. It reveals strong indicators that our portfolio of cultural organizations and events represents a growth industry that generates quantifiable and significant returns on investments. LJ.I U Z <C :E 0::: f! 0::: LJ.I Q. THE PERFORMANCE OF OUR INVESTMENTS: A 63.5% INCREASE IN IMPACT Our cultural assets continue expanding steadily in their diversity, quality and value. This study is based on reported revenues and expenditures of 128 MiamiM Dade based, non-profit cultural organizations. These organizations range from small neighborhood arts groups to festivals and major cultural institutions. In aggregate, they spent $200 million in fiscal year 1998 to produce community cultural events of excellence. When combined with a conservative assessment of the value of voluntary services that were leveraged and capital expenditure outlays, the impact of this investment in our local economy is a resounding $538.3 million. This represents a 63.5% increase in the economic impact of cultural spending over the $329 million reported in fiscal year 1995. SOURCES OF lMPAG ,.,..m,_,..m"O....m...,m.._. Operating Expenditures $481 million Capital Projects _ $33.6 million Volunteer Services . $23.7 million TOTAL IMPACT $ 538.3 million Cultural expenditures have a sizable impact, through "direct" spending by non-profit arts and cultural organizations and by the activity that is spurred in Miami-Dade's overall economy. The "ripple effect" occurs when money circulates throughout our local economy as the cultural industry supplies itself with the materials, goods and services necessary to create and deliver its "products." DISTRIBUTION OF CULTURAL EXPENDITURES Administrative c:::J Artistic IiiIIIiIiJ Marketing _ Space Rental _ Technical _ Other c::J SOURCES OF FUNDING FOR CULTURAL AGIVITIES: - - - c::J - - c::J 30 30% Government Grants (Local) Government Grants (State) Government Grants (Federal) Private Grants Admissions Interest Other 20 11% 22% 10 o ~ :> ~ A GROWTH INDUSTRY: THE ECONOMIC ACTIVITY OF NON-PROFIT CULTURAL BUSINESSES In fiscal year 1998, the operating budgets of the 128 participating non-profit cultural organizations totaled $162,4 million, compared to $128.3 million spent by cultural groups surveyed in 1995. Our non-profit businesses provide customers - our families, children and visitors - entertaining and educational activities that encompass the visual and performing arts, history, historic preservation and folk arts, the sciences, literary and media arts, festivals, special events and neighborhood programs that celebrate our diverse traditions and heritages. The dollars spent presenting these exhibitions, performances and special events generated a $436.9 million impact on Miami-Dade's economy, a significant portion of the total impact of $538.3 million. ~ V' THE CULTURAL WORKFORCE: W SHAREHOLDERS COMMITTED TO SUCCESS ~ Everyone who attends a cultural event is a shareholder ~ in the success of our community's growing arts and 1.1') cultural industry. However, it takes a talented and dedicated workforce to produce the thousands of arts and cultural experiences offered throughout the year. This study documents 8,458 regular employees - 2,207 full time and 6,251 part time - at work in our arts and cultural organizations in 1998. In addition, each of 16,925 volunteers donated an average of 64.3 hours per year, totaling 1.1 million contributed hours. Valued at a modest $8.00 per hour, the work of volunteers translates into $8.8 million in donated services, an impact of $23.7 million. The impact of the cultural workforce reverberates through many industries in our economy, resulting in the creation of additional jobs across sectors. Our cultural industry's 8,458 regular employees generate approximately 24,094 other jobs in Miami, Dade County's overall economy. This additional employment supplies the cultural workforce with the materials, goods and services that are transformed by arts and cultural employees into events and activities. ::J: ~ ~ CULTURAL CONSUMERS: AUDIENCES REPRESENT A GROWING SHARE OF THE MARKET Attendance at festivals and cultural events in FY 1998 topped 8.5 million, evidence of the consistently high demand by consumers for cultural products. This strong share of the market is a powerful indicator of steadily growing community support. Attendance at performances _ _ _ _ _ _ _ _ _ _ _ _ _ _. 2,331,016 Attendance at exhibitions _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 777,782 Attendance at festivals. _. _ ___ ...__ .n_ _.. 4,747,193 .as" ~ * c , JitNaI}',:mediaad!;.~dI:.. , \;;..~ ....I ~ - 0.. ~ CAPITAL EXPANSION: BROKERING BETTER FACILITIES NOW AND INTO THE FUTURE More than $12.5 million in cultural capital expenditures were invested during fiscal year 1998, generating a $33.6 million impact in Miami-Dade's economy. These expenditures represent cash outlays for the construction of new cultural facilities and/or improvements to existing facilities. As cultural activities grow in quality and popularity, better facilities are being developed to accommodate more sophisticated artistic presentations and audience expectations. New and improved facilities are being located throughout our community in neighborhoods, closer to the home bases of cultural organizations and their audiences. SOURCES OF FUNDING FOR CAPITAL EXPENDITURES '.0% 5.2% Federal Government _ State Government c=J local Government _ Internal Fundraising Campaign _ Private (Grants) ~ CAPITAL EXPENDITURES 26.5% New Facility Construction _ Capital Improvements _ Equipment c=J Other _ z o - 1.1') Z ~ ~ NEIGHBORHOOD EXPANSION: $65.5 MILLION In fiscal year 1998, Miami-Dade County approved funding to help renovate a network of neighborhood theaters. With the commitment of non-County matching funds, this investment now totals more than $50 million and includes a new cultural center in South Miami-Dade and renovated facilities in underserved neighborhoods from Hialeah to Overtown to Little Havana. Additionally, in 1999, the new $7.5 million school and studios for Miami City Ballet opened on Miami 8each; and in early 2000, the $8 million expanded and renovated Bass Museum of Art opened as a part of this same "cultural campus" development on Miami Beach. Capital expenditures for all of these projects are not included in this study; however, the impact of these "bricks and mortar" investments and the arts programming they enable are certain to strengthen the financial position of our cultural industry still further. 0::: W I- Z W U ~ 0::: <( THE DOWNTOWN PERFORMING ARTS CENTER: $300 MIlliON Construction is underway on our new downtown Performing Arts Center, designed by renowned architect Cesar Pelli and constituting the most significant public-private funding partnership in our community's history. The investment of approximately $300 million to design and construct this landmark facility, itself, constitutes a major impact on our local economy. (These dollars also are not included in the figures for this study, given their expenditure after the base fiscal year activity of 1998.) Recent successes of similar cultural projects around the country - from Fort lauderdale, Florida to Newark, New Jersey - bode well for our new center's enormous positive effect on Our cultural industry, on the redevelopment of downtown Mami, and on the image of our community as a cosmopolitan international center. This multi-hall complex is desig~ed to serve as the focal point for Our community's performing arts activities and to work in tandem with the network of new and improved neighborhood theaters. LU 0:::. :;:): I- :;:) u. THE FUTURE Following closely behind these major performing arts projects is establishing the next generation of new cultural facilities. Work is proceeding actively on expanded facilities at Fairchild Tropical Garden and the Coconut Grove Playhouse, and on new buildings for the Miami Children's Museum, the Art Museum at Florida International University, the New World School of the Arts, the proposed Science Center of the Americas and the Miami Art Museum. Together, these capital investments constitute one of the most ambitious cultural building programs in America. ~ :> A SIGNIFICANT - BUT ONLY PARTIAL- VIEW OF OUR GROWING CULTURAL INDUSTRY this study does not include data representing the for- profit cultural sector, such as commercial art galleries, Broadway.styled theater, popular music concerts, movie theaters, music and book stores, and the region's growing film, television, print and music production industries. Also not included is residual spending by individual artists or by audience members directly attributable to attending a cultural event such as parking. dining out, and childcare, Had these related commercial activities and residual expenditures been included in this study, the resulting impact figure of the arts and culture on our local economy would be even more dramatic. This economic impact report includes both the direct economic activity of the cultural sector, and its indirect and induced effect on the overall local economy. An empirical examination of the data confirms that some sectors of our economy are more affected by the production of cultural activities than others. These include: hotels and lodging; business services; apparel and textile products; health services; retail trade; food and beverages; transportation; financial institutions; and printing and publishing. In addition to the measurable statistics reported in this study, our arts and cultural industry also yields other, more intangible benefits that accrue to the well.being of our community. A growing and healthy cultural sector strengthens Miami-Dade County's national and international reputation as an attractive destination for business. This is a critical factor in attracting more sophisticated economic activities, whose labor force demands a high level of community amenities. It promotes tourism, contributing to Miami-Dade's image as an exciting destination with choices ranging from great beaches and restaurants to vast arts and entertainment options. It offers high quality alternatives for family leisure-time activities and adds value in the area of youth development and education. It celebrates the many heritages, customs, and cultural traditions that are part of our community and promotes our ability to embrace our diversity. It improves and imprints the quality of life in Miami-Dade County. Ii, m " Miami~Dade's non-profit arts and cultural businesses are continuing to grow in productivity and value. Our cultural industry provides us - individuals, businesses and governments - with an investment opportunity that has a proven track record for expanding our economy and enhancing our lives. ; t h Iiv ~ ~-~-,~~ o i ANALYSIS TOOLS o ~ The impact of the arts on our economy reported in this study was assessed through a multiplier analysis. Multipliers were derived from a model specifically designed and built for Miami-Dade County. Three types of multipliers were obtained from the model to evaluate the total impact of this activity on our economy: final demand output multipliers, final demand earnings multipliers, and direct- effect employment multipliers. These multipliers give an estimate of the induced activity resulting from arts expenditures, round-by.round until the power of the original expenditure vanishes. For example, a theatre buys (and pays for) lumber to build a set; the lumber yard buys it from another source; it also pays its employees who, in turn, purchase food at a local grocery, and pay for gas, and other products, and so on. As a result, the original dollar used by the theatre triggers a chain of related expenditures within the same economy multiple times. The total effect of this chain of expenditures is what we call the ~ultiplier effect, which can be measured in terms of total output, earnings and employment generated. :$ Ii[ . . . C '11 . . . C . . ~ o 9 I- :;:) o A BROADER OUTLOOK: A $1.4 BILLION IMPACT OF THE ARTS STATEWIDE r 8 od Results of an updated Statewide Economic Impact Study by the Florida Cultural Alliance underscore the conclusion that the arts and culture are vital components to a vibrant and healthy economy. Conducted independently of the Miami-Dade research, the statewide study documented expenditures of $738.1 million for data representing the expenditures of not-for-profit organizations, universities and colleges for FY 1997. This resulted in a $1.4 billion impact, and 22,237 full time equivalent jobs. ry en .s ny, I I I ,'\I.:)';; N:OI'-l:P~I1FiT' sil.!-t9Rft~ ORGANIZATIONS , 'o~:: RESPONOI~G TD;TllE SURVEY ~R:rHIS STUOY O,':.Acad~ia de las luminarias de la; Bellas Artes ".....:~:::~;A.ctors/Playho~~-Productions _ ~~,;;::~f~k,~!'~aTibbe~n American Performing Artists '~',lC .Ak~<>J>OliS A,ctil)ll ~ompany ", "" Alhance For Media Arts ' , ,;', Allian2~,f(jr MJsical Arts - z < ~ 0::: o ....I c2 ;:) !:i ;:) u Area Performance Gallery/Area Stage ArtCenteroSouth Florida Art MU~-~rn atHorida International University Arts and Business Council of Miami , Arts Ballet Theatre of Florida Artz-N-The Hood Asian American Federation of Florida Bakehouse Art Complex Ballet Etudes o{.;5()uth Florida Baptist Hospital - Artists' Showcase Bass Museum of Art BayfrontPark Management Trust Black Archives, History and Research Foundation of South Florida Bridge Theater Center for Folk and Community Art Center for Haitian Studies Central Agency for Jewish Education Childrenls Cancer Fund, Jackson Memorial Foundation Chiumba Dance Ensemble Chopin Foundation of the United States Circulo Urica de la Opera City Theatre Coalition of Florida Farmworker Organizations Coconut Grove Association Coconut Grove Playhouse Community Concerts Association Concert Association of Florida Coral Gables Congregational Church Cove/Rincon Corporation Cultural Deve19pment Group Dade Cultural Alliance Dade Heritage Trust' Dave and Mary Alper Jewish Community Center Dr. Rafael A. Penalver Clinic Edge Theatre Fairchild Tropical Garden Fantasy-Theater Factory Feria internacional de Sevill~Al1dalucia Film Society of Miami -Florida International Universny Florida Dance Association Florida Grand Opera Florida. InternationahUnive~ity. Festival ~98 Florida Philharmonic Orchestra Freddick,Bratcher and t::orTI~any Contemporary Dance Theater German'J\merican SociCil,'qub Gold Coast Theatre Company Greater Miami Festival & Events Association Greater Miami Host Committee Greater Miami Youth Symphony Gusman Center for the Performing Arts Haitian Corporation for Musical Development Hannah Kahn Poetry Foundation Hispanic Heritage Council H.isp~~,i~-b>meri.~n lyric Theatre Histol'icalMuseum of Southern Florida Holocaust Documentation and Education Center Homestead Center for the Arts Jamaica Awareness Jubilate ,',', ,-' -,':- ;'~), Ju~ior O~~nge,BO~I.'-- 9m Kaiell__Petersen,and~,Oa-n <'-- ;-.":.~~,,-~_,,,"'_- ,:--,~.~,,,,\_,,ci~'r~'~ " LeslleNeal Da~~:);:;:~c:<'f!,v Lo~e~rt.~u~~~m Mal-Jima1.Prod Manuel Art; .. ~ -- ,,/ :,,~,,:,,__'y_-y' ,""','..-". Maxin,um'Oi;1"_-,-< .. Miami Art Museum,:,:,r Miami Bach Societ:f' ," , MiamilBahamas GoOmb Miami Bo?k Fair 'f1t~rnatio.naL:' Miami Cl)amber'SYlnphci ~ Miami Choral Society , Miami City Ballet" ,__,:tv1ia~i-o.vjcM\j~i~'~_",-" ...~- ....~,. -:'-Miami~6~-d~'t~mu~itY=~1Mta'irs O~~~~0 ';".~iami~Da,de<;OllfJ:~:Art;:. . . ":', :. :f;'y.;~;:,,:;;--,,-- M~ami-Dade Cou~iYD. . .",.A~airs }$;c;~r Mtaml~Dade County'falr ]O~~t!;,., ....,,)\\'.yf ~>;'f,: ~iami-Dade CountyPark.!;:&:'_~f:!?"eation Department, , Arts and Culture Division~";;,, c Miami-Dade Public Library S~t~m - Miami Design. Preservatioo_~f,;p.~~ "/-:~""-;;O;i,',,,,,""'" -""'_:;f'.Aiami Hi,spanic-BaUet-:';: . .. '"c' :I\,\ia.mi Light Project ,:: /'1:i}:r-M'i~n1i:Museum of;Sc:h~," , . Miami Symphony Orch_a ;, :::,_::::::;,~i~rn_~\^{~t.~rc:olor--?oc_i~!i, ..H'<.>._>- __tiP .";~:~h:~~~nD~~~~~1~~~~~~!r,Ctl' '. .;.;MomentlunDariceCon1~~~"h~;-~~-;:j\i~:' '. MosaidSanford L Ziff JeW'.sJi 'Museum Qf,flori Murray Dranoff FOundati~:~~-; \!;~_~~~" Mz; Goose'__,:~;~\:;?f' ...t{,.:- National Foundation forAdvancemerit:int ,,_:~..'~~11lt~a~re C'i,', '-,.{,i; .....::'NewWdfld Festival , ~, ::--'-.,"...----:,>:,", ",""",",', :,', -.. '''''''''''?'':, .~. ";,6::NewWoildSymphony ''''~ _ . . ,:. .'QPa,loc1ca Arabian Kni~~ati~: 'Orange Bowl Committee -. '., . Past Tymes Productions .' c,';Perfprmingf.rts;CenterTrust " ':'RhYtf,m foundatior? ~.~;"'Roia;Ydfub of Key Biscayne " , --~--:~\(f$al~f,cl!tj~~~S D~;'Parade'C'O~tt~ . Shores Performing Arts Theater~' ", ~, :',;:Soeiedad :CUltural Santa Cecilia :;:>Solnh Floiida Composers' Alliance , ..; 'South Floiid. Youth5ympiiony C;' ,'i,Story Th,~~r Productio":S'~' ' 'TaleritoMsticoJuvenit' '>T~ir9~;'ie~?~i Temple iiifu, Am Concert Series Theater teague of South Florida Thomas Armour Youth Ballet .TIgertaiLProductions_'z";': ':::UniVersity of Miamf;. J University of Miami Sc Bill Cosford Cinema ~ University of Miatni Schoo '0 usit May in MI WDNNFM 8B.9 Community, Public R'l,dio - Ba Memo!i_~1 Broadcasting Foundation William J. 'Faulkner Friends of Folklore Wolfsonia~ Foundati~n -l:,~~.~ti9.(..I. U Yellow Tuhp Pr()d~ctlon~,,1tf;ti . " YMCA of Greater Miami :AIl """0,"-;~ The mission of the M;ami,Dade Counly Cultural Affairs Council and the Departmenl 0:. Cultural Affairs is to help devplop, coordinale and promote cultural divprsily and pxcellencp so as to creatp more affordable and accpssible arts opportunities throughout Miami-Dade Counly. Thp Council and Departmpnt have threp primary objectives: 1) to incrmse public and privatp supporl for cultural activities; 2) to neal(' greater awareness of and participation in the arts and cultural events; and 3) to build be>lIer cultural facilities to serve> arlisls, cultural organizalipns and their audiences. The Council and the Department work to ensure that our cultural assels are ulilized strategically to improve the lives of our cilizens and to develop Miami,Dade County as a major hemispheric center for business, trade and tourism. The Miami,Dade County Departmenl of Cultural Affairs receives funding through the Miami,Dade County Mayor and Board of County Commissioners, the National Endowmenl for the Arts, and the State of Florida Ihrough the florida Department of State, Division of Cultural Affairs and the Florida Arts Council. Olher support and services are provided by Info Tel Systems, Inc. for the Arts and Enlertainment Hotline on Activily Line, Miami-Dade County Communications Department, Greater Miami Convention and Visitors Bureau, the South Florida Cultural Consortium, the Tourist Development Council, and the Miami Beach Cultural Arts Council. This study was conducted with the support of Professor Maria Willumsen, Florida International University, Departmenl of Economics. This study is a component of a larger national research project, "National and Local Profiles of Cultural Support," being conducted by Americans for the Arts and the Arts Policy and Administration Program at The Ohio State University. Funded by the Pew Charitable Trusts, the Profiles project is studying funding and olher forms of support to the non-profit cultural induslry. Florida Cultural Alliance Americans for the Arts PO. Box 2131 West Palm Beach. F133402-21JI Phone: (561) 848-6231 Fax: (561) 848-7291 rVeh Site: WWW.jlca.l1Ct E-Mail:flCIIlall@Jao/.com 1000 VernlOllt Avenue NH~ 12th Fwor Washington, DC20005 Phone: (202) 371-2830 Fax: (202) 371-0424 rVeb Site: www.artsusa.org E-mail: inft@artsusa.org Miami,Oade County Department of CulllHJI Alf;lir') th;~'~ ~iAM't 111 NW 1st St.wt, Suite 625 Miami, Florida 33128 Phone: (305) 375-4634 Fax: (305) 375-3068 Web Site: www.tropim/wrcmiami.com E-Ma;l: mltllre(ji>co.m;am;-dade ft.us Arts and Ente,-ta;nmenl llot!;nc: (.105) 557-5600 TDD: (800) 955-8770 MIAMI-DADE COUNTY Mayo.' Alex Penelas BOARD OF COUNTY COMMISSIONERS ~ Gwen Margolis, Chairperson Betty T. Ferguson, District 1 Don'in D. Rolle, District 2 Dr. Barbara M.Carey-Shuler, District 3 Gwen Mm-golis, District 4 BrunoA. Ban-eiro, District 5 Pedro Rcooredo, District (0 Jimmy L Morales, District 7 Katy Sorenson, District 8 Dennis C. Moss, District 9 ja'uier D. Souto, District 10 JoeA. Martinez, District 11 D1-. Miriam Alonso, District 12 Natacha Seijas, District 13 Harvey Ruvin, Clerk of Courts M. R. Stierheim, County Manager Robert A. Ginsburg, County Attorney r" '-./ CULTURAL AFFAIRS COUNCIL Rick Sisser, Chairman Alejandro J Aguirre Thomas Battles Luis Diaz Victor M. Diaz,jr. RobertJJensen Jorge Perez Jand Sigars-Malina Car/os A. Migoya Tamara Philippeaux Donald D. Slesnick II Rosa SugrafLes DwayneA. Wynn 1I1artin Zilber , '-/ Michael Spring Director