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| Community Budget Issue Requests - Tracking Id #1045 |
| Empowerment Zone |
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| Requester: |
Miami-Dade County |
Organization: |
Miami-Dade Empowerment Trust, Inc. |
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| Project Title: |
Empowerment Zone |
Date Submitted |
1/12/2004 3:50:30 PM |
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| Sponsors: |
Garcia, Wilson |
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| Statewide Interest: |
| Two Florida communities have received designation as a Federal Empowerment Zone (EZ), for which Miami-Dade is one of the communities having received its designation in 1999. Both of these Urban Communities are very forward thinking and engage in a very meaningful and productive planning process for community and economic development.
The Empowerment Zone program is a great economic development tool, which maximizes private investments by leveraging a host of public incentives, such as the State of Florida's Enterprise Zone Program and the Urban Job Tax Credit Program. With the EZ being utilized with the Enterprise Zone and Urban Job Tax Credit Program, these programs can provide significant incentives (both cash and tax incentives) to available businesses that are seeking to locate within Empowerment Zone areas and create jobs. Further, the revitalization of these distressed areas, through meaningful economic development and workforce development can benefit not only the designated community directly, but Florida as a whole. Understanding the degree of poverty still faced in Florida, funding for this initiative is warranted.
In January 2001 Jacksonville was designated by the U. S. Department of Housing and Urban Development as a Round III Federal Empowerment Zone (EZ), the second in the State of Florida.
The designation is made through a competitive selection process that focuses on the applicant's strategic approach to addressing the problems identified in its distressed urban area.
Through a collaborative effort with the public and private sector, area residents, local businesses and community organizations, the Empowerment Zone initiative offers and additional incentive to attract private investment and revitalization. The components of the strategy include, but are limited to, workforce development and job creation, promoting small business development and expansion, providing access to capital and providing tax incentives. Other disciplines of the strategy include housing, transportation, education, public safety, social issues and health and human services. State of Florida programs available to encourage investment within the EZ are the Enterprise Zone and the Urban Job Tax Credit.
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| Recipient: |
Miami Dade County |
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Contact: |
Bryan K. Finnie |
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111 NW 1 Street |
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Contact Phone: |
(305) 375-3838 |
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Miami 33137 |
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Contact email: |
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| Counties: |
Dade |
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| Gov't Entity: |
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Private Organization (Profit/Not for Profit): |
Yes |
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| Project Description: |
| The programs of the Miami-Dade Empowerment Trust support small businesses, community development corporations and community projects that are backed and maintained by residents of the EZ and that address the needs of the entire community. The role of the Trust as an economic development engine, fuels the organization's commitment to job creation and development of a skilled multi-cultural, multi-lingual, global workforce. The Miami-Dade County Empowerment Zone Program operates on a transactional funding basis. Essentially, concepts are considered but investments are linked to realistic and attainable tangible objectives. Taken from its "Tool Box" of Incentives, here is a sampling of what the Trust has to offer:
a. $130 M in Tax Exempt Bond Financing for commercial and industrial development projects that are $1 M or more in scope;
b. Access to a $3 M EZ revolving Loan Fund that will provide affordable loans ranging from $25,000 to $250,000 for small businesses;
c. Access to Micro Loans of up to $5,000 for small businesses;
d. Access to EZ investments, on a case by case basis, (for not for profit and for profit organizations);
e. Access to Technical Assistance and mentoring for small businesses;
f. Tax deductions for qualified environmental clean-up costs;
g. Access to federal tax credits from $2,400 to $3,000 for hiring qualified EZ residents and summer youth;
h. Access to customized training and job placement services for EZ residents and prospective employers;
i. Access to financing for Affordable Housing projects;
j. Opportunity to pursue federal grants on a joint grant writing basis, for certain programs within the EZ;
k. Opportunity to structure creative financing products for industrial development activities (limited to EX Developable Sites).
Jacksonville
The Empowerment Zone Implementation Strategy was developed with input from all stakeholders including the Advisory Committee, community and civic leaders, representatives of the business community, economic development professionals and citizens within the targeted area. The Jacksonville Economic Development Commission has been designated as the lead agency to implement the strategy and will:
? Proactively seek economic development and aggressively market target area.
? Create synergy by focusing on corridors within the targeted area.
? Adaptive reuse of vacant commercial and retail space.
? Provide incentive tools designed to address needs of small businesses.
? Develop program to target and attract franchises.
? Conduct and sponsor community workshops on incentives and programs of the EZ.
? Market all programs through community outreach to area councils, neighborhood associations and financial institutions.
The programs to be implemented are the Business Infrastructure Grant, Facade Improvement Grant, Small Business Development Initiative, the Large Scale Development Initiative and the Small Business Corridor Loan Program.
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1. Business Infrastructure Grant: Grant/Loan program to assist businesses with infrastructure needs to include water and sewer, road improvements, sidewalks, lighting, handicap accessibility and landscaping. The City has appropriated $8,000,000 for this program with funding up to $250,000 per project.
2. Facade Grant Program Neighborhood: Grant program designed to improve the appearance businesses to encourage private investment and help stabilize communities. The City has appropriated $1,000,000 for this program with funding up to $10,000 per project.
3. Small Business Development Initiative: This program can be used by businesses typically with fewer than 100 employees and less than $3,000,000 in gross sales/revenues for acquisition and capital improvements. The City has appropriated $8,000,000 for this program with funding up to $250,000 per project.
4. Large Scale Economic Development: To provide funding assistance for major development and expansion projects. The City has appropriated $8,000,000 for this program with funding up to $3,000,000 per project
5. Small Business Corridor Loan Program: This loan fund will provide financing for leasehold improvements and equipment purchases. It is not currently capitalized.
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| Is this a water project as described in Chapter 2002-291, Laws of Florida? |
No |
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| Measurable Outcome Anticipated: |
| The Miami-Dade Empowerment Trust will create the following access to capital products:
1. Revolving Loan Fund: The Trust has committed $1 M of its resources and has leveraged $2 M in resources from the banks to create a loan pool of $3 M. Loans will rang from $25,000 to $250,000.
2. Neighborhood Micro-Loan Fund: The Trust has committed $600,000 of it resources and will make loans available to small businesses (mom & pop type businesses) up to $5,000. These loans are character-based loans and approved by the community board.
3. Neighborhood Small Business Equity Investment Fund: This fund will be capitalized with $8 M to provide equity capital (either as a term loan, line of credit or patient equity) to talented companies dedicated to revitalizing Miami-Dade County's EZ areas. The
4. Equity Capital Investment Fund for Urban Development Projects: This fund was capitalized with $5 M to provide equity capital to talented companies dedicated to revitalizing Miami-Dade County's urban areas by creating jobs through the establishment of business franchises throughout the EZ and Miami-Dade's Urban Core area.
Jacksonville
Goals of the NWJEDF
? Develop and expand commercial, retail and entertainment businesses and manufacturing firms. Minimum of 150 businesses assisted.
? Create employment opportunities. Minimum of 1,500 jobs created.
? Increase tax base by leveraging private to public investment at a ratio of at least 4:1.
? Provide services for area residents.
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| Amount requested from the State for this project this year: |
$10,000,000 |
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| Total cost of the project: |
$5,000,000 |
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| Request has been made to fund: |
Construction |
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| What type of match exists for this project? |
Local, Federal |
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Cash Amount |
$57,000,000 |
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| Was this project previously funded by the state? |
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Yes |
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Fiscal Year: |
1999-2000 |
Amount: |
$3,275,000 |
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| Is future-year funding likely to be requested? |
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Yes |
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Amount: |
$10,000,000 |
To Fund: |
Operations, Construction |
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| Was this project included in an Agency's Budget Request? |
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Unknown |
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| Was this project included in the Governor's Recommended Budget? |
No |
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| Is there a documented need for this project? |
Yes |
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Documentation: |
The Strategic Plans submitted by both Counties to USHUD seeking the Federal Empowerment Zone Designa |
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| Was this project request heard before a publicly noticed meeting of a body of elected officials (municipal, county, or state)? |
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Yes |
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Hearing Body: |
Miami-Dade Board of County Commissioners, Miami Dade Delegation Public Hearing and Duval Delegation |
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Hearing Meeting Date: |
01/27/2003 |
