In an effort to strengthen economic resiliency in the wake of the COVID-19 pandemic and to diversify the Miami Beach economy, during the December 18, 2020 Finance and Economic Resiliency Committee (FERC) meeting, the Administration identified several methods to attract and retain businesses, including businesses in the technology and financial services industries. The methods identified and outlined below are all in some phase of implementation and have already yielded successful results.

• Tradeshows/industry marketing events;

• Recruitment visits;

• Contact and coordination with national site selectors and advance teams;

• Development and circulation of marketing collateral;

• Promotion of relocation assistance programs and incentives;

• Development of job creation incentive;

• Expedited licensing and permitting ; and

• Relocation concierge services.

On February 19, 2021, the FERC discussed the  Administration’s recommended three-pronged approach to business attraction focused on targeting technology and financial services firms with a strategy incorporating the following elements:

1) Policy Direction and Relationship-building;

2) Inducements and Services; and

3) Public Relations and Marketing.

The FERC and City Commission also considered six (6) tactics in furtherance of business attraction, retention, and expansion of businesses within the identified targeted industries. Three (3) tactics required legislative approval and three (3) tactics were intended to be implemented administratively.

Policy Direction

At the recommendation of the FERC, on March 17, 2021, the City Commission took action to prioritize the attraction and retention of businesses within the targeted industries (technology and financial services) including adopting Resolution No. 2021-31618, directing the Administration to encourage and promote attraction of these industries.

Inducements and Services

Additionally, the Mayor and City Commission adopted Resolution No. 2021-31619 and authorized the Administration to develop and implement an expedited plan review and permitting incentive for targeted industries. The Economic Development Department subsequently launched the Expedited Plan Review and Permitting Incentive Program and markets this no-cost administrative incentive to businesses, property owners, developers, and brokers. The incentive is offered to eligible businesses to encourage targeted relocations or expansions and associated development. Developments or renovations supporting the targeted industries are eligible for a 10-business day plan review and permitting process for building permits. The Administration is currently supporting a number of companies in locations including, but not limited to, the Starwood Building, the City Center and South Beach commercial corridors.

Further, the Mayor and City Commission also approved a Job Creation Incentive Program (JCIP) on March 17, 2021 via Resolution No. 2021-31620. The JCIP is a performance-based financial incentive package that ensures that the city has a greater competitive advantage and the ability to leverage existing incentives available 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 in the targeted industries.

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. The per employee incentive is greater for businesses locating into North Beach, those hiring Miami Beach residents and employees with education or training received at local institutions. Recommendations for award of this incentive must be reviewed by the FERC and approved by the City Commission. To date, two (2) financial services and two (2) technology firms have been approved for the JCIP by the City Commission and while create approximately 215 new or relocated jobs in the next four years with salaries estimated between $69,000 and $150,000. Additional businesses in the pipeline will be recommended to the FERC at a later date.

Public Relations and Marketing

To supplement resources within the Marketing and Communications Department, in Fall 2021, the Administration issued a request for proposal (RFP) to engage a firm to assist with the development and implementation of an integrated business attraction marketing and public relations strategy. The Administration selected Sparkloft Media, to produce a comprehensive marketing and media campaign to support and promote the city’s efforts to attract local, regional and national businesses and entrepreneurs. The agency has been tasked to amplify and create attractive, engaging and targeted creative content to distinct audiences and highlight the benefits of doing business in Miami Beach.

Events, Tradeshows and Conferences – The Administration is leveraging partnerships and resources to cultivate relationships with and grow the technology and financial services industries by attending and coordinating events that provide occasions for the Miami Beach team to showcase current programs and incentives; engage with business owners, entrepreneurs, investors and thought leaders; research and participate in identifying trends; and marketing Miami Beach. The Administration participated in two (2) conferences in the first two months of 2022 including iConnections Global Alternative (Global Alts) Investments Conference – where more than 20 potential leads were attained;  FPL’s Powering Florida: Illumination and numerous local technology panel discussion and networking events. The team will also have a presence at Bitcoin 2022, eMerge Americas 2022 and Miami Tech Week, to solicit, educate, and inform the technology and financial services sectors about the advantageous opportunities available in Miami Beach.

Miami Beach United Resolution: Bringing Technology Jobs to Miami Beach

Founded in 2012, Miami Beach United (MBU) is a community-based, not-for-profit organization comprised of Miami Beach residents. On November 23, 2021, the Administration received a MBU resolution regarding bringing technology jobs to Miami Beach. See Exhibit A (Resolution). The Resolution “urges the Miami Beach Commission to expand on relations with local technology leaders to build momentum in attracting high paying jobs, diversifying the economy, and improving the quality of life for our residents,” with accompanying recommendations on the efforts and strategies that should be promoted and encouraged to advance these goals.

The Resolution specifically recommends the City take action as follows:

1.    Refine the City’s current strategy intended to attract technology companies and attain the sector & job growth the community needs, by identifying the specific technology company-profiles to target (i.e. technology verticals, organizational structure & size) and build upon technology silos that are already present;

2.    Collaborate with the Society of Information Management (SIM) South Florida Chapter, which seeks to partner with the City; and

3.    Put in place policy to lead the way in encouraging & enhancing cooperation between our local municipalities’ outreach efforts.

The Administration appreciates the various ongoing efforts of multiple community and stakeholder groups, however the most impactful and successful approach and strategy is collaboration. As such, upon receiving the Resolution, the Economic Development Department contacted the MBU’s Board of Directors to provide information on the City’s current strategy to attract targeted industries and to seek a clearer understanding of the elements of the Resolution. Having met with MBU’s technology leadership team on multiple occasions, the Administration has ascertained MBU’s rationale for elements of the Resolution and identified some opportunities and challenges.

As the City’s Economic Development strategy for the targeted industries is still relatively new and going through the implementation process, it is essential that the City concentrate efforts in consideration of industry trends, the economic climate,  available resources, and long-term goals. The Resolution calls for refinement of the City’s new strategy to focus on specific types of technology companies, whereas the City is currently seeking and welcoming technology companies of any profile, vertical, size or industry subcategory. The City’s technology hub is not as established, recognized, or coordinated yet as in some other areas within the region. It may be premature to focus efforts, in a limited fashion, on specific silos like Tourism Tech, Resiliency Tech, Hospitality Tech, Arts and Culture Tech and Health and Wellness Tech, as mentioned in the Resolution. However, the City has a unique opportunity to attract businesses that could reinforce the City’s brand and define a technology hub, and it may be advantageous to utilize marketing and public relations efforts to focus, ever slightly, toward the industry subcategories that align with the City’s ideals.

As new companies and entrepreneurs take advantage of the City’s incentive programs and relocating or expanding to Miami Beach, this is the ideal moment to cultivate a Business Leadership Advisory Council or Taskforce, as previously discussed by the FERC and the City Commission.  Regarding the Resolution’s proposed collaboration with SIM, the Administration recognizes the potential to facilitate the development of a Business Leadership Advisory Council or similar body of local thought leaders. Any services or leadership offered by SIM augment and leverage existing relationships and resources. Notwithstanding the potential of this collaboration, it should be noted that many technology entrepreneurs and thought leaders may not be affiliated with traditional Information Technology (IT) organizations such as SIM.  

The Administration is not in support of the portion of the Resolution that speaks to collectively crafting outreach and business establishment programs, synchronizing incentive programs and coordination between municipalities. Given the City’s collaboration and affiliation with the Beacon Council, the County’s official economic development organization, this element seems counterintuitive. The Resolution appears to urge the City to utilize resources for initiatives the Beacon Council currently spearheads on behalf of Miami-Dade County and the various municipalities. Leveraging the Beacon Council’s ability to enhance multijurisdictional relationships positions Miami Beach to benefit from efforts that impact the region and beyond. Taking the leadership role proposed in the Resolution could require considerable funding and staffing without guaranteed direct benefits to Miami Beach.

SUPPORTING SURVEY DATA

Taking steps to diversify the economy by improving the business climate is essential to the resiliency of the city. According to the 2019 Miami Beach Community Satisfaction Survey, when asked how [the community] would currently rate the City of Miami Beach as a place to do business, 30% of businesses reported that the City has improved. By implementing a multifaceted approach to business attraction, retention and expansion, the City of Miami Beach will strengthen existing business community as well.

FISCAL IMPACT STATEMENT

No fiscal impact is anticipated with Administration recommendation.

Working in collaboration with the community, and industries and business groups is critical to the City’s economic success. MBU’s Resolution recognizes the City’s efforts and strategy to bring technology jobs to Miami Beach and offers recommendations on how to refine and augment the strategy. With the recent exchange of ideas between MBU and the Economic Development Department, there are viable plans, for upcoming events and initiatives,  the City and MBU can work on together to achieve the goals already outlined by the City Commission in terms of targeted business attraction. The Administration is open to exploring avenues to incorporate ideas in portions of the Resolution such as greater marketing emphasis on industry subcategories and collaboration with SIM. Nevertheless, the Administration is cautious about assuming a role that may appear to overlap with the Beacon Council mission and that could detract from resources dedicated to amplifying Miami Beach’s distinct message.