059-2001 LTC
CITY OF MIAMI BEACH
CITY HALL 1700 CONVEN'fION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
hllp:\Ici.miami-bea9h.fl.us
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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.
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,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.
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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.
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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:
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30
30%
Government Grants (Local)
Government Grants (State)
Government Grants (Federal)
Private Grants
Admissions
Interest
Other
20
11%
22%
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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.
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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.
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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 ,
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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 _
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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.
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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.
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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.
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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.
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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.
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~ 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.
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A BROADER OUTLOOK:
A $1.4 BILLION IMPACT OF THE ARTS STATEWIDE
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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.
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,'\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
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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
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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; ..
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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'
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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
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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;~'~
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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
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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
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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
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Michael Spring
Director