The mission of the Economic Development Department (the “Department”) is to establish, maintain, and grow the City’s business community by promoting the City’s image, supporting businesses, and creating a diverse economy for our dynamic and resilient global community.

i.   Job Creation Incentive Program

The Mayor and City Commission approved a Job Creation Incentive Program (JCIP) on March 17, 2021 via Resolution No. 2021-31620. The JCIP is a performance-based financial incentive that will ensure the city has a greater competitive advantage and the ability to leverage existing incentives from the State and County. The purpose of the JCIP is to strategically attract companies and expand existing businesses within the City of Miami Beach while increasing the number of quality, high-wage jobs.

The JCIP participant must create or relocate a minimum of ten (10) new, fulltime equivalent jobs with average annual wages meeting or exceeding 125% of the Miami-Dade County or State of Florida average wage, whichever is higher, at the time of the application. The maximum incentive for new-to-market companies is $60,000 per year for up to four (4) years. The maximum incentive for expanding companies is $60,000 per year for up to three (3) years. As outlined in the program guidelines, recommendations for award of this incentive must be reviewed by the Committee and approved by the City Commission.

JCIP Award Recommendations

Currently, two qualified companies, Wix and CourMed, are being recommended for the JCIP, given that they each have met the program criteria at the time of application.

Wix is a software company providing cloud-based web development services. Headquartered in Tel Aviv, Israel, with national headquarters in San Francisco, Wix also has an existing regional office in Miami Beach at 1691 Michigan Avenue.  The Department has been discussing incentives with the company since early-August.

Wix is expanding its regional office footprint by 45% going from 33,458 sq ft to 48,527 sq ft and is planning to invest $3.8 million on capital improvements including construction, furniture, fixtures and equipment. The company also plans to significantly increase their existing 302 employee workforce to hire or relocate 150 new employees to the City of Miami Beach over the next three years, 50 of which will be hired within the next twelve months. Wages are estimated to average $69,856.47. The Beacon Council has also been working with Wix regarding talent sourcing.

The Administration is recommending this expanding company for the JCIP in order to support the growth of existing technology firms. Wix is also eligible to participate in the Expedited Plan Review and Permitting Incentive Program, which the City Commission approved as an administrative procedure by adopting Resolution No. 2021-31690.

Founded in 2018 by Derrick L. Miles in the Dallas-Fort Worth area, CourMed is a medical software company headquartered in McKinney, Texas. CourMed is a rapidly growing startup healthcare delivery service with a concierge-style business model that leverages technology to make medication delivery and healthcare services as easy as using an application (app) and GPS to receive care from anywhere - whether at a hotel on vacation, at home or at work.

The company is garnering national attention, particularly as an African-American owned technology business and was selected as the first company to access Microsoft's $50M capital fund to support small businesses through the Black and African American Partner Growth Initiative.  Miles is also a participant in the inaugural class of the Knight Foundation Fellowship for Healthcare Technology Innovation presented by Baptist Health South Florida, which was launched in an effort to expand South Florida tech talent and accelerate innovation.  

CourMed is currently evaluating potential sites to expand to Miami Beach and has plans to relocate or create ten (10) high wage jobs with wages estimated to average $80,000. The Department has been discussing incentives with CourMed since early-July and the Administration is recommending the company for the JCIP to expand the Miami Beach technology ecosystem.

ii.  Communications and Marketing Strategy

Business Attraction Public Relations and Marketing Campaign

The Department has been working with the Marketing and Communications Department to engage a firm to assist with development of a comprehensive marketing and public relations campaign to amplify initial efforts to position the City of Miami Beach as a leading business destination.  The Administration is in the process of engaging a qualified firm to  assist with the development and implementation of an integrated marketing and public relations strategy.

Through the FY2022 budget process, the City Commission has approved the Administration’s request for $75,000 for business attraction marketing. The Department has also submitted a carryover request of $42,000, pending City Commission approval. If approved, the available funding for this purpose would total $117,000, which is conservative. The feedback received from industry experts indicate that the proposed budget would support a 6-month business attraction marketing and public relations campaign with national outreach.

Based on the anticipated budget, the 6-month campaign is intended to achieve the following:

Campaign Goal: Identify and execute a branding and multilingual, multimedia business attraction marketing campaign focused on:

•    Business attraction of key industries

•    Attraction of company headquarters or regional offices

•    Increasing awareness of:

o   The City’s new streamlined 10-businesss day permitting approval process for businesses relocating or expanding in these key industries within the city; and,

o   Business attraction incentives and programs

o   Languages to include:  English, Spanish, French

Target Audience:

•    Primary Target: Founders, owners and c-suite decision makers in technology and financial services companies in Silicon Valley, Los Angeles, San Francisco, New York, Chicago and Connecticut.

•    Secondary Target: Professional services firms, hospitality, tourism, film, and entertainment companies.

Geo Target:  Local, National

Agency Goals:

The branding and business attraction marketing and public relations campaign will be comprised of two phases:

•    PHASE 1:  Creative direction research and development

o   Conduct local and national research to determine the best approach for the creative

o   Perform competitive analysis of comparable cities

o   Conduct interviews with key City staff and stakeholders

o   Develop and execute targeted, ongoing public relations strategy

•    PHASE 2: Creation of an overarching brand and marketing plan to attract new businesses to Miami Beach and boost the City’s economic development.  Campaign will touch on:

o   Brand relevance - The extent to which businesses agree that Miami Beach provides unique value not offered by other locations)

o   Accessibility (Can we provide what our businesses want?)

o   Emotional Connection - Strength in forming loyal and emotional connections as they cannot get Miami Beach anywhere else

o   Brand Value - What will our businesses pay for our brand? (Directly linked to office leases and business tax licensing)

Deliverables: Agency deliverables to include: 

•     Verbal identity 

o   Development of verbal identity for overall Economic Development brand and business attraction

o   Tagline

o   Tone of voice principles

o   Key messages to defined target groups

•      Visual identity 

o   Development of final visual identity system and style guides for business attraction collateral including master logo

o   Color palette definition (Pantone, RGB, HEX, CMYK)

o   Typography definition

o   Image and/or illustration style

o   Photography

o   Sizzle reel(s) with testimonials highlighting Financial Services, Technology, and general Business Attraction; length can range from 60 seconds to 2 minutes

o   Design and execution of social media branding and content

o   Design and execution of digital materials including banner, email marketing, brochure and digital ads of varying sizes 

o   Design of printed collateral including out-of-home advertising, brochures, trade show signage/event, etc.  

o   Creation of ads of varying sizes and platforms such as out-of-home, digital, social, and more as per the media buy strategy for targeted publications

•     Media Buy Strategy

o   Develop and execute a multi-tiered, highly targeted, media buy strategy that will maximize the city’s brand awareness in the space and customer engagement.

o   Deliver monthly activity/engagement reports

•     Public Relations

o   Develop press releases

o   Conduct ongoing local and national media outreach

o   Create relevant story angles and engaging content to solicit media placement.

o   Deliver monthly activity/engagement reports.

Measured Results: The success of the campaign will be measured against the following KPI’s:

•     Financial Metrics:

o   Quantifying the number and types of businesses attracted to relocate or expand in the city in response to the marketing campaign and associated economic impact (number of high-wage, high quality jobs, tenant improvements, licensing and other revenue)

o   Realizing an increase in the number of applications received and incentives issued for the Job Creation Incentive Program

o   Realizing an increase in the number of businesses qualifying for and participating in Expedited Plan Review and Permitting Incentive

•     Marketing Metrics: Monitor and report on campaign performance to track efficacy and maximize ROI. Reporting may include but is not limited to:

o   Impressions

o   Frequency

o   Click-throughs

o   Post-impression visitors

o   Website traffic in unique visitors

o   User Engagement

•     Public Relations Metrics: Realizing a 1-3% increase in Media and Marketing efforts including:

o   Increasing positive media coverage with focus on business attraction in traditional, industry, trade and lifestyle publications including digitally 

o   Increasing positive social engagement

o   Increasing user engagement as a result of media mentions

Projected Budget:

•    $75,000 – Marketing and Public Relations Services

•    $42,000 – Digital Media Buys

Estimated Campaign Timeline:

•    Start Date: November 2021

•    Duration: 6 months

Based on industry feedback, the estimated campaign budget is conservative and will provide for a campaign with limited reach and return on investment. If more comprehensive, in-depth services are desired for a longer time period and in additional media markets and publications, the campaign budget would need to be increased by $85,000 - $100,000. While it is more efficient to establish the baseline budget prior to campaign commencement, the budgetary considerations may also be evaluated toward the middle of the campaign as deliverables are being assessed and measured. If there is a need to supplement the budget, this decision can be made before the end of the initial campaign period.

iii.      Events, Tradeshows, and Conferences

The Department continues to cultivate relationships in the technology and financial services ecosystems. On October 28, 2021, the Department will be co-hosting an event with Tech Beach and the Miami Beach Chamber of Commerce Technology Council as a marketing opportunity.

At the Committee’s request, the Department developed a list of local, national and international tradeshow and conference opportunities pertaining to the financial services and technology industries from October 2021 through May 2022. Given the physical setup and public engagement required for these events, the Administration would recommend that at least two staff members attend any approved event. The Department currently has a FY21 budget allocation of $5,000 for travel-related expenses. This funding would be sufficient to allow attendance of one staff member at two or three local and/or national tradeshows and conferences. The fees listed in the tables below do not include staff travel, accommodations and incidentals.

The Administration recommends attendance and possibly exhibition at the technology events in Miami Beach and Miami including Bitcoin, eMerge Americas and Miami Tech Week.  As the Miami/Miami-Dade County region is already receiving significant national attention from out of state businesses, the likelihood is that many of the businesses in the targeted industries will be attending these local tradeshows and conferences as an occasion to research and gauge relocation opportunities and experience the area.  This provides an ideal juncture to promote Miami Beach as a potential long-term destination.

The Administration is requesting feedback from the Committee as to which local, national or international tradeshows or conferences are most desirable, if any. If the conferences are not local, then the Administration would request an additional allocation for attendance/exhibitor fees and travel costs to attend.

iv.      Parking Incentives for Business Expansion, Attraction and Retention

After months of discussion by the FERC on methods to diversify the city’s economic base, on March 17, 2021, the Mayor and City Commission adopted resolutions identifying technology and financial services as targeted industries for business attraction, retention and expansion efforts including inducements and incentives for locating or expanding a local headquarters or regional office for other industries.  The Mayor and City Commission authorized baseline criteria and performance standards for the Department to market and offer services and financial incentives for the targeted industries.  It is important to note, that companies in the established targeted industries are not currently offered a parking incentive, however, they often seek parking accommodations when considering relocation to or expansion in Miami Beach.

Parking is an essential quality of life and quality of work element.  In order to leverage the city’s parking assets, the Economic Development and Parking Departments have been working together to develop the optimal balance between business attraction and retention efforts and the reality of parking demand and availability.

There are several factors that influence parking demand and availability including: parking assets (surface lots/garages), proximity to commercial properties, use types and activation of commercial properties, time of day/week, and access to non-vehicular mobility options.  Each area of Miami Beach also has different parking needs, which may fluctuate seasonally or over short or long term periods depending on population growth, residential and commercial development, user and work habits, tourism trends and addition or removal of parking assets.

There currently exists a waiting list for parking spaces located in major commercial districts throughout the city including near Lincoln Road. The Parking Department, with assistance from the Finance Department, has begun the waitlist outreach process to refine the list of individuals and properties seeking parking accommodations. Although this list is actively being narrowed, it is clear that parking availability will remain a challenge. To creatively address this, the Parking Department is evaluating how peak times impact availability. Generally, more parking spaces become available at 4:00 p.m., providing an opportunity to issue corporate parking cards for surface lots and garages to businesses with late afternoon and evening operations, such as hospitality and entertainment venues.

The City Commission authorized issuance of Request for Proposals (RFP) 2021-173-KB for Mixed-Use Development Incorporating Class A Office Space on City-owned Parking Lots P25, P26, P27 and Parking Garage G5. This potential public-private-partnership would increase both office space and parking inventory near Lincoln Road.

Class A Office

The availability of Class A Office is also a factor as it relates to parking demand. While the expectation is that newly constructed Class A Office developments will provide parking with limited dependency on the city, there is a concern about the economic feasibility of repositioning Class B and Class C office product to Class A without adequate parking already in place. Parking incentives for repositioned (renovated) Class A Office should be prioritized as these properties will likely have greater need for parking accommodations and are also better positioned to attract companies within the targeted industries such as financial services and technology.

Targeted Industry Parking Incentive: Restaurant and Hospitality Firms and Venues

Although the City Commission has directed the Administration to prioritize the recruitment and retention of technology and financial services, there is also a desire to elevate and firmly support the hospitality industry, the backbone of the City’s economy. A parking subsidy in-lieu of providing city-owned parking accommodations for this industry may be feasible. Eligibility criteria would be recommended to establish a review and evaluation process considering the following:

-    Repositioned Class A office

-    Number of Jobs

-    Wages

-    Economically challenged areas (North Beach)

-    Types of employees (Miami Beach residents)

-    Employer policies and procedures to promote mobility alternatives

Depending on the eligibility criteria, eligible companies would be provided a parking financial incentive for the dollar value associated with up to the value of 20 parking spaces. The company could then purchase the parking access cards (if available) from the city or utilize the funds to access parking from private operators at their sole discretion. Since the Parking Department is an enterprise fund with financial obligations, the goal is to either provide the parking (if available) and offset costs with an allocation from the General Fund, or if parking is not available, provide funding for an alternative to city-owned parking.

As funding will be needed to sustain this incentive over time, a phased approach could be used to allow more new-to-market and existing companies to participate. For example, the parking incentive subsidy could be reduced over a 4-year period as follows:

-    Year 1: 100% subsidy at current parking rates = $26,400 (20 cards x $110 fee x 12 months = $26,400)

-    Year 2: 75% subsidy at current parking rates = $19,800

-    Year 3: 50% subsidy at current parking rates = $13,200

-    Year 4: 25% subsidy at current parking rates = $  6,600

The Department remains steadfast in its commitment to business expansion, attraction and retention to ensure a diverse economy and looks forward to implementing a comprehensive communications plan and outreach strategy to further support these efforts. Additionally, the Department seeks to recruit and retain companies using incentives as a tool to achieve economic development goals.

The Administration has evaluated the current situation and determined that it is not conducive to provide city-owned parking spaces as part of an incentive program at this time. If this approach is desired, the Administration would like to reevaluate conditions in 6-12 months.

The Administration recommends JCIP applicants Wix and CourMed for approval and transfer to the City Commission for final review and award.