We The Washington Economics Group, Inc. ‘THE COMPREHENSIVE ECONOMIC DEVELOPMENT IMPACTS OF SKYRISE MIAMI Prepared for: BERKOWITZ DEVELOPMENT G ROU P August 19, 2013 2655 Leteune Road, Sue 608, Coral Gables, FL 33134 T. 305-461-3811 ~ F: 305-461-3822 | E:infodwog.com |W: wawwaveg.com‘The Comprehensive Economic Development Impacts of SkyRise Miami Mm. Vv. Table of Contents Executive Summary... Skyrise Miami as a Landmark Visitor Attraction of Economie Development Importance: A Conceptual Framework. Skyrise Miami Generates Significant Econ ‘Ongoing Operations for the City of Miami, Miami-Dade County and Florida.. Tho ExmatodEcoaemte pacts Auaselned with he Devehioméat Phnee of Siac Miami on the City of Miami A. Enmploment impacts: The Derlopment Phas of StyRse Miami Sepprt over 5,330 JOBS. Genet of Labor nce Sty Rive Na ies ne Cy of Mi Standard of Living z ©. Spine Mice’ Css Domi Proidict pact (Valve died) a por for Miami’s Productivity at $350 Million ‘Toa Bono Inpoc of ive Maan Stic S655 Mion Moting Landmark Project. E. Fiscal Contributions are Also Important to Publie-Sector Finances at Federal, State dnd Local Level’. ss ‘The Estimated Economic Impaets Generated by the Development Phase of SkyRise Miami on Miami-Dade County A, Employment Impacts: Construction of SkyRise Miami Supports over 6,700 Jobs for Miami-Dade County. F B. Generation of Labor Income: SkyRise Miami Contributes to the Standard of Living ‘for Miami-Dade County Residents Seatac © ‘SkpteMian’s Gross Domest Product (Vale dis Important for Mimi Dade County Productivity at $463 Million ‘Tora zona Impt of Sse Mian Sinton $843 Mion, Mong ta Landmark Project. . : E._ SkyRise Miami's Fiscal Contributions are Also Important to Public-Sector Finances 4a Federal, State and Local Levels during the Course of its Development ie Repel Eien of th groans Pee ai ives iS Florida 2 bewies pt: Th Delon ls of Sint Mist Spor. 7,000 Jobs in Florida. ‘ Impacts During its Development and Page 1B 1s on 16 7 19 20 2 2B 10 3 20 27‘The Comprehensive Economic Development impacts of SkyRise Miami vu. Ix, B. Generation of Labor Income: SkyRise Miami is Expected to Contribute to Florida Residents Standard of Living..1.1.w . CC. SiyRise Miami's Gross Domestic Product ts Important for the State Produetivity cat $473 Million... f a een 1. Relator It of Sipe Hot led Shan #842 ion forthe State of Florida. nd E. SkyRise Miami's Fiscal Contributions are Also Important to Public-Sector Finances at Federal, State and Local Levels. 33 ‘The Annually Recurring Economic Impacts for the City of Miami Resulting from the Activities Associated with an Operational SkyRise Miami... i A. Employment Impacts: The Recurring Expenditures of Sky Rise Miami Create Over 13,000 Permanent Jobs ut B. Generation of Recurring Labor Income: SkyRise Miami is Estimated to Create Permanent Jobs that Contribute to an Improvement in the Standard of Living....0e» 35 C._ShyRise Miami’s Recurring Gross Domestic Product Impacts Value Added: A Significant Increase in Economic Activity throughout the City of Miami 37 D. The Recwring, Total Economic Impact of SkyRise Miami isa Positive $1 Billion Anmually 38 E._ShRise Miami’s Annu Fiscal Contributions are Also Important... aio 39 ‘The Annually Recurring Economic Impacts on Miami-Dade County Resulting From the Fully Operational SkyRise Miami cant é A afl 1, i it Th Racing Epa ta Spe Hm Create 15,678 Permanent Jobs. peo . B. Recurring Labor Income Associated with the Ongoing Operations of SkyRise Miami Creates Jobs that Contribute to the County's Standard of Living....-- 2 C._ SkyRise Miami’s Recurring Gross Domestic Product ( Value-Added Impacts) Provides Significant Increases in Economic Activity throughout the County “4 DT Reser, ial ia Ie of sy lla! ea Psbe 4?$ i Each Year a lua GS E__SkyRise Miami’s Anmual Fiscal Contributions are Also Important 46 ‘Amana! Recrsing Eoonamle Tangara onthe Sint of Florida Reseling from Sky Re Miami’s Ongoing Operations. 48 A. Employment Impacts: The Ongoing Operations Support 17,259 Permanent Jobs... 48 B. Recurring Labor Income of SkyRise Miami's Operations Creates Permanent Jobs ‘that Contribute to the Florida's Standard of Living... CC. SkyRise Miami's Recurring Gross Domestic Product Impacts (ale Ades A Significant Increase in Economic Activity throughout the State : 3 ”‘The Comprehensive Economic Development Impacts of SkyRise Miami D. The Recurring, Total Economic Impact of SkyRise Miami! is a Positive $1.4 Billion Each Year si8d E._ SkyRise Miami's Annual Fiscal Contributions are Also Important....o.ssnessnne 38 Appendix I: Methodology. . 88 Appendix Il; Economie Glossary. 58 Appendix III: The Washington Economics Group, Ine. Project Team and Qualifications. 60‘The Comprehensive Economic Development Impacts of SkyRise Miami Tables Table ES-1 ‘Table ES-2, ‘Table ES-3. Table 1 Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11 Table 12. Table 13, Table 14, Table 15. Table 16. ‘Table 17. Table 18, Table 19 Table 20. Table 21. List of Tables and Figures Page# ‘Summary of the Economic Impacts of SkyRise Miami to the City of Miami. 2 Summary of the Economic Impacts of SkyRise Miami to Miami-Dade County 3 Summary of the Economic Impacts of SkyRise Miami on the State of Florida, 4 Top 10 Tallest Structures in the World - 2013 ..eueuensnnne 7 ‘Summary of the Economic Impacts of SkyRise Miami during the Development Phase to the City of Miami 1B Employment Impacts of SkyRise Miami’s Development Phase ...0.0.nmininisonnnense Mb Labor Income Impacts of SkyRise Miami’s Construction, 1s Gross Domestic Product (Value Added) Generated by the Construction of SkyRise Miami i moni TT ‘Total Economic Impacts Arising from the Construction af SkyRise Miami Fiscal Contributions of SkyRise Miami wl Sumani of Esnomic impacts of Skye Miami on the Development Phase o Jobs Created by the Construction of SkyRise Miami on Miami-Dade County oc... 21 Labor Income Inputs Created bythe Constrsion of SkyRise Miami on Miami- Dade County. ? . Gross Domes Product (Vale Ades) Generated by the Constution of ShyRise Miami in Miami-Dade County rnin ina ‘Total Economic Impacts Arising ftom the Construction of SkyRise Miami in Miami- Dade County as Fiscal Conribuions Genet by the Construction of SkyRise Mim in Miami Dade County. it 26 Summary ofthe Enon Impact of SkyRse Miami in Miami-Dade County doing the Development Phase 7 27 Jobs Created in Florida by the Construction of SkyRise Miami 28 Labor Income Impacts Created in Florida by the Construction of SkyRise Miamiscn.n...-29 Gross Domestic Product (Value Added) Generated in Florida by the Construction of SkyRise Miami. : aad n of SkyRise Miami in Florida. ......32 ‘Total Economic Impacts Arising from the Constru Fiscal Contributions Generated by the Construction of SkyRise Miami in Florida 3 ‘Summary of the Recurring Economic Impacts of SkyRise Miami on the City of Miami .....34 Permanent Jobs Supported by the Ongoing Operations of SkyRise Miami 35‘The Comprehensive Economic Development Impacts of SkyRise Miami Table 22 ‘Table 23. Table 24. ‘Table 25. Table 26. Table 27. Table 28, Table 29, Table 30. Table 31 Table 32. Table 33. Table 34, Table 35, Table 36. Table 37. Figures Figure 1 Figure 2, Figure 3, Figure 4. Figure 5 Figure 6, Figure 7. Labor Income Created by the Ongoing Operations of SkyRise Miami 36 GDP (Value Added) Created by the Ongoing Operations of SkyRise Miami, 37 ‘Total Economic Impacts Created by the Ongoing Operations of SkyRise Miami ...n.oe39 Fiscal Contributions of SkyRise Miami ....nsnnisonnnnn 40 Summary of the Economic Impacts Of SkyRise Mia's Ongoing Operations on Miami-Dade County 3 Pemanent Jabs Supported by the Ongoing Operatins of ky Rite Mim in Mi 41 Dade County. 2 {aor noe Cres y the Ongoing Option of Sys Manon Mian Dade County on a GDP (Vahe Added) Crested the Ongoing etins of SkyRise Miami in Miami-Dade County... evs Tel Econom Impacts Crested bythe Ong Operations of Sy Rise Manion Miami-Dade County... : 46 Fical Cottons Genre by the Ongoing pens ots Miami in Miami-Dade County nen 47 Summary ofthe Economie Inpacs of SyRtse Miami's Onging Operations onthe State of Floirda = Re Berman ab Sopot by the Ongoing Operon of Shs Miami on he State of Florida 49 Labor Income Created by the Ongoing Oreo of Sot Miami on the State of Florida ra 50 GDP (Value Added) Created by the One Operations of StyRise Miami on the State Of Florida soon - eat SU Toa nome Impacts Created by the Ongoing Opening ors ¢ Miami on the State of Florida, Fiscal Contributions Created by the Ongoing. Casini She Mion wat State of Florida. 34 Page # ‘Jobs Created by the Construction of SkyRise Miami 4 Labor Income Created by the Construction of SkyRise Miami 16 GDP (Value Added) Created by the Construction of SkyRise Mia «a... "7 Total Economic Impact Created by the Construction of SkyRise Mian... 18 Jobs Created by the Construction of SkyRise Miami on Miami-Dade County... 21 Labor Income Created by the Construction of SkyRise Miami in Miami-Dade County a stn . 23 DP (Value-Added Impacts Generated bythe Construstion of Sky ibe Miami in Miami-Dade County e inal 24‘The Comprehensive Economic Development Impacts of SkyRise Miami Figure 8, Figure 9, Figure 10 Figure 11 Figure 12. Figure 13. Figure 14. Figure 1. Figure 16 Figure 17. Figure 18. Figure 19, Figure 20. Figure 21 Figure 22, Figure 23, Figure 24 Teal Economic Impact Arising from the Constsion of StyRise Mian in Miami- Dade County. Jobs Created by the Construction of SkyRise Miami in the State of Florida... 28 Labor Income Created by the Construction of SkyRise Miami in the State of Flori DP (Value-Added) Impact ofthe Conston of lyse Minn! nthe Sate of Florida i ‘Total Economic Impact Generated by the Construction of SkyRise Miami in the State of Florida 32 Permanent Jobs Created by the Operations of SkyRise Miami... st 98 Labor Income Generated by the Operations of SkyRise Miami seat 96 GDP (Value-Added) Impacts Arising fom the Operations of SkyRise Miami. 38 ‘Total Economic Impacts Generated by the Operations of SkyRise Miami Jobs Created by the Ongoing Operations of SkyRise Miami in Miami-Dade County ...ume42 Labor Income Created bythe Ongoing Operaions of Skye Miami in Miami-Dade County. 43 DP (Value-Added) Impact Crested bythe Ongoing Operations of Sty Rise Miami in Miami-Dade County s ronson AS Total Fomonis past Genero by the Ongoing Operon of StyRoe Mam! Miami-Dade County. 3 46 Jobs Created by the Ongoing Operations of SkyRise Miami in the State of Florida........49 Labor Insome Crete bythe Ongoing Operations of SkyRise Mim in the State of FloFida nn eae 50 SDP alu Ado) Crete bythe Ongsing Operation of Sy Rise Mian inthe State of Florida... : 2 Teal Econom pact Generated by the Ongsing Operon of SkyRise Miami in the State of Florida. saca3‘The Comprehensive Economic Development Impacts of SkyRise Miami I. Executive Summary The Washington Economies Group (WEG) was retained to estimate the economic impacts and the economic development contributions of SkyRise Miami. The development of this landmark visitor attraction is estimated to have positive and significant economic impacts on the City of Miami, Miami-Dade County and the State of Florida. These impacts are presented in the Study in the following two phases: Phase I: This phase quantifies the large economic impacts during the multi-year design, construction and development phase of SkyRise Miami (the Development Phase). "Phase II: Once the visitor attraction is developed and fully operational, SkyRise Miami will start to generate, on an annually recurring basis, posi impacts that go beyond the Phase I period. §SkyRise Miami will be a game-changing asset of the Entertainment and Visitor Industry in Miami-Dade County as it will generate significant and quantifiable economic impacts for the local economy in the form of the generation and support of Employment (jobs), Labor Income, Fiscal Revenues and overall Economie Activity. M — SkyRise Miami’s presence will enhance the State and Miami: global brand as a top entertainment and leisure destination for both domestic and international visitors, creating thousands of jobs in a variety of industries. _SkyRise Miami strengthens the Economic Development Strategy of Miami-Dade and Florida in the targeted Entertainment and Visitor cluster of industries. This cluster of industries has been selected by the Beacon Councils One Community One Goal plan for additional expansion. The Estimated Economic Impacts of SkyRise Miami on the City of Miami The Development (construction) of SkyRise Miami is estimated to have the following economic impacts on the City of Miami: mi, © A total of 5,335 jobs within the City of “The Washington Bonomics Group Ine Paget‘The Comprehensive Economic Development Impacts of SkyRise Miami © The jobs created by the development of SkyRise Miami are estimated to generate significant Labor Income impacts of $268 million throughout the City, © A net contribution to the City of Miami economy of $350 million in Gross Domestic Product (GDP) is estimated, © The Development Phase of SkyRise Miami represents a significant $655 million in Total Economic Impact for the City of Miami. © Approximately $60 million of fiscal revenues are expected to be generated during the development of SkyRise Miami. ‘Table ES-1. Summary of the Economic Impacts of SkyRise Miami to the City of Miami Employment (Jobs) 5,335 13332 Labor Income (S Million) $268 $433 Gross Domestic Product (Value-Added § Million) $350 $656 Federal, State & Local Tax Revenues ($Million) 360 sid ‘Total Economic Impacts ($ Million) $055 $1,039 ‘Source: The Washington Economics Group, Ine. (WEG). ™@ _Asalso shown in Table ES-1 above, the Ongoing Operations (annually recurring) of SkyRise Miami are estimated to have the following economic impacts on the City of Miami: ‘© The number of permanent jobs arising from the Ongoing Operations is 13,332 within the City of Miami, © The Ongoing Operations of SkyRise Miami are estimated to generate over $430 million in Labor Income for the City of Miami. © The impacts to GDP generated by the Ongoing Operations of SkyRise Miami are estimated to create a net contribution to the City of Miami’s economy of over $650 million per year. ‘© The Ongoing Operations of SkyRise Miami are estimated to result in economic activities that represent a significant $1 billion in annual economic impacts to the City (state, federal and local). © About $145 million of fiscal revenues are |i SkyRise Miami’s activities, ely to be generated annually by ‘The Washington Economics Group, Inc. Page | 2‘The Comprehensive Economic Development Impacts of SkyRse Miami The Estimated Economic Impacts of SkyRise Miami to Miami-Dade County! The Development Phase (or Capital Projects Phase) of SkyRise Miami is estimated to have the following economic impacts to Miami-Dade County: > An estimated 6,782 jobs will likely be created during the Development Phase of SkyRise Miami ‘The jobs created by the Development Phase of SkyRise Miami are estimated to generate an increase of $332 million in Labor Income for Miami-Dade County. A net contribution to the Miami-Dade economy of $463 million in GDP. © These economic activities are estimated to represent $843 million in Total Economic Impact for Miami-Dade County during the course of construction and development, The Development Phase of SkyRise Miami could result in close to $90 million of fiscal revenues for federal, state and local governments. Empioyment (Jobs) Labor income ($ Million) ‘Gross Domestic Product (Value-Added $ Milion) Federal State & Local Tax Revenues (SMilion) Total Economic Impacts ($ Million) Source: The Washington Economics Group, Ine. (WEG) @ As also shown in Table ES-2 above, the sustained long-term economic benefits attributed to the Ongoing Operations (annually recurring) of SkyRise Miami on Miami-Dade County are estimated at: © 15,678 annual employment positions supported, © $536 million in additional Labor Income each year for Miami-Dade County households and workers, © More than $840 mil ion in additional GDP each year, "The City of Miami economic impacts are part of the Miami-Dade County economie impacts, ‘The Washington Economics Group, Inc. Page | 3‘The Comprehensive Economic Development Impacts of SkyRise Miami © Over $1.3 billion in Total Economic Impact each year attributed to SkyRise Miami, and © $195 million of fiscal revenues are expected to be generated by SkyRise Miami’s multi-faceted acti ‘The Economic Impacts of SkyRise Miami on the State of Florida? ‘The Development of SkyRise impacts on the State of Florida: i is estimated to have the following economic © A total of 7,187 jobs for the State of Florida, © The jobs created by the development of SkyRise Miami are estimated to generate Labor Income impacts of $327million throughout the State, nin GDP is © A net contribution to the Florida economy of $473 mill projected, ‘© The Development Phase of SkyRise Miami represents a significant $883 million in Total Economic Impact for the State of Florida, © More than $90 million of fiscal revenues are expected to be generated during the development of SkyRise Miami. ‘Table ES-3. Summary of the Economic Impacts of SkyRise Miami on the State of Florida Employment (obs) Labor Income ($ Million) Gross Domestic Produet (Value-Added, $ Million) S473 9837 Federal, State & Local Tax Revenues ($Million) $93, $199 ‘Total Economic Impacts ($ Million) 8883 81,368 ‘Source: The Washington Economics Group, Ine. (WEG), As also shown in Table ES-3 above, the Ongoing Operations (annually recurring) of SkyRise Miami are estimated to have the following economic impacts to the State of Florida: 2 The State of Florida economic impact ~ the major beneficiaries of SkyRise Mi ude the City of Miami and Miami-Dade County economic impacts ‘The Washington Economics Group, Ine. Page | 4‘The Comprehensive Economic Development Impacts of SkyRise Miami ‘© The number of permanent jobs arising from the Ongoing Operations is 17,259 for the State of Florida, © The Ongoing Operations of SkyRise Miami are estimated to generate over $500 million in Labor Income for the State, © The impacts to GDP generated by the Ongoing Operations of SkyRise Miami ated to create a net contribution to the State’s economy of close to © The Ongoing Operations of SkyRise Miami are estimated to result in s that represent close to $1.4 billion in annual economic impacts to the State, and ‘© About $200 million of fiscal revenues are likely to be generated each year (annually) by SkyRise Miami’s activities. It is important to note that once the landmark SkyRise Miami visitor attraction is fully operational, it will become an important element of the local visitor industry, drawing additional visitors to the area, and could extend the stays of visitors already in the community. As a consequence, many other industries in the community will also benefit from the presence of SkyRise Miami In addition to its quantifiable economic impacts presented here, SkyRise Miami supports the economic development strategy of both the State and the County by supporting the targeted Entertainment and Visitor cluster of industries. These important, non-quantifiable impacts are presented and discussed in detail in Section LL that follows, ‘The Washington Economics Group, Ine. Page‘The Comprehensive Economic Development Impacts of SkyRise Miami Il. SkyRise Miami as a Landmark Visitor Attraction of Economic Development Importance: A Conceptual Framework Once developed, SkyRise Miami will be a key asset of the growing Entertainment and Visitor cluster of the industries for the City of Miami, Miami-Dade County and the State of Fl ‘The signature structure will be a world-class destination combining its unique physical presence with amenities such as a 360-degree observation deck, museum exhibits and attractions, ballroom and meeting space and top of the tower's amusement rides. Standing at 1,000 feet, SkyRise Miami will be located in the Bayside Marketplace — a popular entertainment, shopping and visitor attraction. The activi class attraction are estimated to generate significant Employment opportunities (jobs), Labor Income, Fiscal Revenues and overall Total Economic Impact benefitting the City of Miami, Miami-Dade County and the State of Florida on an ongoing basis. SkyRise Miami will be an important complement to the region’s g Entertainment and Visitor cluster. This cluster employs over 100,000 residents in Miami-Dade County according to the Beacon Council. Further, SkyRise Miami supports the economic development strategy of Miami-Dade County and the priorities outlined in The Beacon Council's One Community One Goal initiative by strengthening the targeted Entertainment and Visitor cluster of industries and enhancing Miami-Dade County's comparative advantage within these important sectors. ies of this game-changing, world- ‘ShyRise Miami will not only redefine the skyline of Miami as the tallest structure in ‘the region, but will redefine the entertainment and visitor amenities that serve residents of Miami-Dade County as well as national ard international visitors who frequent the community. ‘The Washington Economics Group, Inc. Page 16‘The Comprehensive Economic Development Impacts of SkyRise Miami The visitor industry of Florida, and Miami specifically, is of national importance plus it projects the US image and our way of life around the world. In 2012, Florida received over 91 million visitors. According to Visit Florida, 88 percent of the State’s domestic visitors in 2011 said their primary reason for coming to Florida was for leisure. The landmark SkyRise Miami would be a visitor attraction, s¢ ifying US, Florida, and Miami’s strength in this top economic sector. It is interesting to note that in addition to its role in the targeted Entertainment and Visitor industries, SkyRise Miami would also provide Florida a signature structure among those in other parts of the US and in the emerging nations of Asia and the Middle East becoming dominant in signaling to the world its growing global status. The landmark buildings presented in Table I that follows are primarily office and hotel structures. At an expected height of 1,000 feet, SkyRise Miami would become the tallest structure in Miami-Dade and Florida. ‘The tallest structures of the world are presented in the following table. Table 1. Top 10 Tallest Structures in the World- 2013 AS ae United Amb Einies Bus Khalifa Daal 2 Saul aba a eee i ied sn 3 Uni Ses One Wel inde Caner NewYork chy 1.776 edw uBUIdojaneq 2]W0UOD3 jureyy anys Jo stpeduyj uauudojaneq s}wouord aajsuoyaudutoy ayy