2017-29857 Reso RESOLUTION NO. 2017-29857
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS APRIL 21,
2017 MEETING TO INCLUDE AN ENHANCEMENT IN THE CITY'S FY 2018
BUDGET OF $75,000 FOR A REQUEST FOR PROPOSALS (RFP) FOR THE
CREATION OF ECONOMIC DEVELOPMENT GOALS AND OBJECTIVES
AND A CITYWIDE ECONOMIC DEVELOPMENT STRATEGY PLAN, WITH
THE INCLUSION OF THE RESULTS OF THE CITY'S HOUSING AND
TRANSPORTATION STUDIES.
WHEREAS, the City of Miami Beach is a global destination and an evolving urban
center that represents a city with great potential for new economic innovation and development;
and
WHEREAS, the local economy needs to be protected to the greatest extent possible
from downturns in the local and global markets. While the local economy is not entirely tourism-
based, it is clearly heavily weighed towards the tourism industry. Last year alone, the City
experienced multiple challenges including Zika, a hurricane, and a convention center project
under construction that has affected the local economy and the tourism industry; and
WHEREAS, diversification of the business base would make the local economy less
vulnerable to downtowns or economic shocks within any one segment, and would assist in
maintaining ongoing business activity, employment opportunities for residents, and revenues to
the City; and
WHEREAS, at the December 14, 2016 City Commission meeting, an item regarding the
creation of an economic development strategy was referred to the Finance and Citywide
Projects Committee (FCWPC) in order to begin exploring the possibily of implementing a
citywide economic development strategy; and
WHEREAS, at the December 16, 2016 FCWPC meeting, the Committee was in full
support of moving this item forward and collaborating with 100 Resilient Citites (100RC) for
inclusion of resiliency-related efforts in the City's overall economic development strategy; and
WHEREAS, after serval discussions and analysis of the current local economy, it was
concluded that diversification of the business base was the resiliency tactic that would benefit
the overall economic development strategy and the creation of clear economic development
goals and objectives would also further the City's local economic resiliency; and
WHEREAS, a proposed RFP outline was drafted to include the following tasks:
• Meeting with City staff and stakeholders
• Economic base analysis and identification of targeted sectors
• Recommended incentives for business attraction to diversify the local economy and
an implementation plan
• A business retention and expansion strategy
• Economic resiliency strategy
• Overall economic development goals and objectives; and
f
WHEREAS, when a draft Scope of Work was presented at the FCWPC meeting on April
24, 2017, the Committee recommended an additional task in the RFP of reviewing the City's
housing affordability and transporation studies; and
WHEREAS, the final recommendation of the FCWPC was to proceed with the creation
of economic development goals and objectives; craft an economic development strategy; and
submit an enhancement to the City's FY 2017/18 Budget in the amount of $75,000 to fund a
future RFP that would address the recommendations listed above.
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 recommendations of the Finance and Citywide Projects
Committee at its December 16, 2016 and April 24, 2017 meetings and hereby approve an
enhancement to the City's FY 2017/18 Budget in the amount of $75,000 to fund an RFP for the
creation of economic development goals and objectives and a Citywide economic development
strategy plan, with the inclusion of the results of the City's housing and transportation studies.
PASSED and ADOPTED this 17th day of May, 2017.
ATTEST: r' ;,/,/
Philip vin-7i ayor
Ra7.Yr/ts://1
Granado, ty ClerkB
.. "f *f` APPROVED AS TO
FORM & LANGUAGE
FOR UTION
5((2 MCORP ORATED;�s 7
<01 City Attorney Date
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Resolutions - C7 I
MAM1 BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: May 17, 2017
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PROJECT COMMITTEE AT ITS APRIL 21,
2017 MEETING TO CREATE ECONOMIC DEVELOPMENT GOALS AND
OBJECTIVES AND A CITYWIDE ECONOMIC DEVELOPMENT STRATEGY
PLAN, WITH THE INCLUSION OF COORDINATION WITH OTHER
STUDIES TO ADDRESS HOUSING AND TRANSPORTATION ISSUES
SUBJECT TO CONSIDERATION OF FUNDING DURING THE FISCAL
YEAR (FY)2017/18 BUDGET DEVELOPMENT PROCESS
ANALYSIS
BACKGROUND:
As a global destination and evolving urban center, Miami Beach represents a city with great
potential for new economic innovation. The City also has a need to ensure that its local
economy is protected to the greatest extent possible from downturns in the local and global
markets. While our local economy is not entirely tourism-based, it is clearly weighed heavily
towards the tourism industry, which, in the last year alone, has been affected by multiple
challenges including Zika, a hurricane, and a convention center under construction. In order to
address potential economic challenges, the City might consider opportunities and methods by
which it could help to diversify the local economy further and tools it may be able to employ to
attract and retain new business developments. Additionally, these efforts should also expand
the employment opportunities available to residents of the City, adding another layer to the
potential economic benefit.
Diversification of the business base would make the local economy less vulnerable to
downtowns or economic shocks within any one segment, and would assist in
maintaining ongoing business activity, employment opportunities for residents, and revenues to
the City. The City's economic development efforts in recent years have focused more on
revitalization or enhancement of areas such as Alton Road, North Beach, and Ocean Drive. It is
recommended that these efforts should expand to include more traditional economic
development activities such as business attraction and retention geared towards desired and
advantageous business and development types.
Page 300 of 878
I n addition, the City currently has no clear economic development goals or objectives other than
the following limited Key Intended Outcomes (KIOs):
• Improve Alliance with Key Business Sectors, Namely Hospitality, Arts, & International
Business with a Focus on Enhanced Culture, Entertainment, & Tourism.
• Revitalize Key Neighborhoods, Starting with North Beach and Ocean Drive
Since the last modifications to the City's KIOs, adopted in July 2015, the local economy has
continued to change and evolve. Additional economic development goals and objectives
should be formulated that may lead to a more defined economic development direction and new
KI Os.
The most direct way to address this need would be through the creation of a city-wide economic
development strategy plan. Such an effort would utilize a review of: existing businesses and
commercial space in the City, and marketplace data along with input from the public, to explore
what might be the best and most suitable industries for the City to target. Additional activities
under this effort could include a strategy of potential methods to attract and retain these desired
businesses. These methods could include incentives, zoning modifications or bonuses, and
the identification or attraction of projects that might be eligible for grant funding from agencies
such as the U.S. Economic Development Administration.
Such a strategy plan would be best implemented through the use of an outside consulting firm
that could easily provide market and industry data and assist in connecting the City to
established industry leaders. Key industry experts could help to define the most advantageous
business types to attract given the City's economy, workforce, commercial and office property
inventory, and the regulatory environment in the City, County, and State.
For these reasons, an item referring the creation of an economic development strategy to the
Finance and Citywide Projects Committee was made by the City Commission on December
14, 2016.
Shortly after this meeting, the City's Chief Resiliency Officer (CRO) recommended that this
effort be reviewed for inclusion of resiliency-related efforts. Additionally, the CRO further
suggested that this effort might be enhanced by consultants from 100 Resilient Cities (100RC),
a non-profit organization pioneered by the Rockefeller Foundation which assists cities around
the world in becoming more resilient to physical, social, and economic challenges to which the
City, as part of a triumvirate with local partners Miami-Dade County and the City of Miami, had
recently become a member. At the December 16, 2016 Finance and Citywide Projects
Committee (FCWPC) meeting, there was brief discussion and full support of moving this item
forward and reaching out to 100RC before the item returned to the Committee. Additional
discussion at the December FCWPC meeting covered topics such as incorporating other
components into a comprehensive strategy such as transportation and housing.
A discussion was subsequently held with 100RC who agreed to provide assistance in
determining what might be included in an effort to create an economic development strategy
that would further the City's resiliency goals. To this end, 100RC offered 10 hours of
assistance from Paul Peninger, a consultant with AECOM who has expertise in urban planning
and economics. Mr. Peninger provided to the City's Economic Development Division Director
a number of documents regarding economic development strategies, economic development
Page 301 of 878
incentives, and directed attention to documents from several other locales across the nation.
After working with Mr. Peninger, a draft RFP with a proposed Scope of Work was prepared for
discussion at the April 21, 2017 FCW PC. The Committee agreed with the proposed Scope of
Work and expanded it to include a task to insure the impact of housing and transportation issues
on economic development are addressed. Specifically, the Committee requested that the
selected consultant draw upon on-going housing and transportation efforts, including reviewing
adopted studies and master plans, to formulate conclusions and recommendations for
mitigation. The Committee also recommended the Commission consider a $75,000 budget
enhancement for FY 2017-18 to fund the effort.
SCOPE OF WORK
An early conclusion by Mr. Peninger, the 100RC consultant, was that diversification of the
business base was the only true resiliency tactic that is necessary in our economic development
strategy, but there may be an opportunity to work into the strategy a program that educates
business owners on resiliency issues in the City and to potentially outline a program of
incentives to assist businesses in becoming more resilient, specifically citing a presentation
made by the U.S. Economic Development Administration titled "Resilience and Economic
Development: Moving from Idea to Action" (Attachment 2) as a guideline for the addition of
these components. Mr. Peninger and staff also considered the need for clear economic
development goals and objectives and other economic development related items.
After several conversations, Mr. Peninger provided a discussion draft for a Request for
Proposals was crafted to include tasks such as:
• Meeting with City staff and stakeholders
• Economic base analysis and identification of targeted sectors
• Recommended incentives for business attraction to diversify the local economy and an
implementation plan
• A business retention and expansion strategy
• Economic resiliency strategy
• Overall economic development goals and objectives
All of the tasks are designed to move the City's economic development program forward
keeping in mind an effort to diversify the City's economic base, make the City economy and
business community resilient, and to prepare goals and objectives.
The result of the conversations with Mr. Peninger and the Economic Development Staff is the
draft RFP (Attachment 1). Mr. Peninger added that, as a result of his involvement as a 100 RC
consultant to the City, his firm would not respond to an RFP if the City proceeds. This
disclosure also allowed him to offer a recommendation that this project should have a budget of
$75,000.
When a the draft Scope of Work was presented to the FCWPC on April 24, 2017, the
Committee supported the proposed Scope of Work and requested it be expanded to include a
task to review impacts of housing affordability and transportation issues on economic
development (the additional task is reflected in Attachment 1).
CONCLUSION
Page 302 of 878
Before the Commission is the Finance and Citywide Projects Committee recommendation for
creation of economic development goals and objectives and crafting an economic development
strategy; subject to consideration of an enhancement during the FY 2017-18 budget in the
amount of $75,000 to fund the effort.
KEY INTENDED OUTCOMES SUPPORTED
Improve Alliance With Key Business Sectors, Namely Hospitality, Arts, & International Business With
A Focus On Enhanced Culture, Entertainment, & Tourism
FINANCIAL INFORMATION
It is estimated that the study and action plan will cost $75,000 which will need to be considered
during the FY 2017/18 budget development process.
Legislative Tracking
Tourism, Culture and Economic Development
ATTACHMENTS:
Description
a Attachment 1 - Draft ED Strategy Scope of Work
D Attachment 2 - EDA Presentation
Page 303 of 878
ATTACHMENT 1
DRAFT - Request for Proposals is to Design an Economic omic Dei°e amen
Incentive Strategy for Business Attraction and Diversification for the City
of Miami Beach, Florida.
The City of Miami Beach is seeking the assistance of a professional economic development consulting
firm to design an innovative economic development incentive strategy for the City in order to diversify
the local economy and, in doing so, build long-term economic resilience. The selected consultant will
work closely with local economic development staff and key stakeholders to design an incentive strategy
that leverages the City's core economic strengths, while identifying new areas for business attraction
and diversification.
Situated on a barrier island and susceptible to both sea-level rise and flooding risks, Miami Beach is
currently a partner in the Rockefeller Foundation funded Resiliency Strategy for Greater Miami and the
Beaches(http://www.100resilientcities.org/cities/entry/greater-miami-and-the-beaches-resilience-
challenge#/- /). The development of the this regional strategy will be taking place simultaneously to
this preparation of the economic development incentive strategy and the two processes will likely be
mutually informative and beneficial, allowing for the sharing of resources and knowledge to allow for
the design and implementation of an incentive strategy that is consistent with the Resiliency Strategy for
Greater Miami and the Beaches.
For the purposes of this RFP, the terms Resilience, Economic Development Incentives and Economic
Diversification are understood as follows:
Resilience is the ability to prepare for and adapt to changing conditions and withstand and recover
rapidly from disruptions. Resilience includes the ability to withstand and recover from deliberate attacks,
accidents, or naturally occurring threats or incidents. (US Economic Development Administration, 2015).
Economic Development Incentives are inducements—often in the form of financing, but sometimes in
the form of services—to persuade companies to build new structures, purchase equipment, design new
products, enter new markets, and above all, create new jobs in places where they would not have
otherwise. (International Economic Development Council, 2015)
Economic Diversification is the primary method for increasing resilience and ensuring that if some
industries are compromised, there may be others that can continue to drive economic activity. (US
Economic Development Administration, 2015).
DRAFT 5/17/2017 1
Page 304 of 878
Proposers should outline their approach and detailed methodology for completing the following core
elements of the scope of work for this project.
1. Meet with local economic development staff and stakeholders and establish process for
gathering ongoing feedback on Strategy process.
a. Create a comprehensive economic development outreach plan.
b. Consider establishing a working group to provide ongoing advice and support to staff
and consultants in the completion of this project.
2. Review state of housing affordability as well as transportation systems in the City for impacts on
economic development.
a. Review existing plans, studies, and efforts regarding housing affordability
b. Review existing plans, studies, and efforts regarding transportation in the City
c. Assess impacts on economic development efforts of these issues
d. Formulate needs and recommendations related to these issues to foster business
attraction and retention
3. Economic base analysis and identification of target economic development sectors.
a. Build on studies already completed at the State and regional levels.
b. Situate Miami Beach in the context of the overall metropolitan economy.
c. Identify existing core economic sectors as well as potential opportunities for growing
new export-oriented economic sectors to diversify the local economy.
d. Optional: SWOT analysis.
4. Best practice case studies of comparable jurisdictions with successful economic development
incentive programs geared towards increasing diversification.
a. 3-5 case studies building on the work of the EDA, IEDC and others.
5. Establish goals and objective for incentive program based on an understanding of strategic
economic opportunities.
6. Design Draft Incentives for Business Attraction to Diversify the local economy. Analyze the costs
and benefits of each of the potential incentives and provide a ranking of the actions that would
likely yield the most positive results. Types of incentives may include:
a. Financial incentives (e.g.,tax abatements,grants or loans)
b. Regulatory incentives (e.g.,flexible design standards for new construction that is built
with new or innovative climate change adaptation building technologies)
c. Other(e.g.,technical assistance and training)
7. Prepare Final Incentives Strategy and Implementation Plan.
a. Define final list of incentives.
DRAFT 5/17/2017 2
Page 305 of 878
b. Establish roles, responsibilities and funding sources and timelines for implementation.
c. Define clear and measurable performance standards for each incentive.
d. Create a monitoring and compliance system for City staff to use in overseeing the
program
8. Prepare a Business Retention and Expansion Strategy
a. Define ways for the City to identify businesses looking to expand within the City or at
risk of relocating outside of the City.
b. Formulate a list of actions the Economic Development Division can undertake to assist
businesses that are seeking to expand in the City or are at risk of relocating outside of
the City
9. Prepare an Economic Resiliency Strategy.
a. Identify potential threats to businesses within the City for which the City and businesses
should prepare
b. Identify stakeholders and other organizations for which coordination in any"shock to
the system" event (i.e. hurricane, sea level rise, terrorist act, major travel interruption)
is critical.
c. Recommend training or coordination programs for those stakeholders/organizations
identified in item b.
d. Identify potential training opportunities for the City to host to insure businesses prepare
for threats(i.e. creating business continuity plans, how to work with your insurance
company post event, information that is critical for post-event financing
10. Utilize Previous Tasks to Identify Clear Overall Goals and Objectives for the City's Economic
Development Program
Optional: Miami Beach Resiliency"Makers Lab" Feasibility Study. Perhaps more than any municipality
in the United States, Miami Beach is uniquely situated to provide an ideal urban laboratory for
businesses and entrepreneurs experimenting with the design and creation of new building technologies
and infrastructure systems(water, energy,transportation, etc.)for areas that are at high-risk of seas
level rise or flooding due to inundation. This optional task would explore the feasibility and costs and
benefits of structuring specific incentives for businesses in this business segment.
DRAFT 5/17/2017 3
Page 306 of 878
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