Florida Marlins City of Miami Impact Analysis- 01-28-09
-
Upload
floridanomics -
Category
Documents
-
view
516 -
download
2
Transcript of Florida Marlins City of Miami Impact Analysis- 01-28-09
THE ECONOMIC IMPACTS
OF THE FLORIDA MARLINS ON THE CITY OF MIAMI:
DEVELOPMENT AND RECURRING PHASES
Prepared by:
The Washington Economics Group, Inc.
October 3, 2008 (Revised on January 28, 2009)
2655 LeJeune Road, Suite 608 Coral Gables, Florida 33134
Tel: 305.461.3811 – Fax: 305.461.3822 [email protected] www.weg.com
i
TABLE OF CONTENTS
I. BACKGROUND ....................................................................................................................1 II. THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF THE
FLORIDA MARLINS BALLPARK ON THE CITY OF MIAMI ................................................3
III. THE RECURRING ECONOMIC IMPACTS OF THE FLORIDA MARLINS TEAM
OPERATIONS ON THE CITY OF MIAMI ..............................................................................9
IV. POTENTIAL ECONOMIC IMPACTS ASSOCIATED WITH BASEBALL’S “JEWEL” EVENTS ..............................................................................................................................15
V. CONCLUSION ....................................................................................................................17 APPENDIX I: METHODOLOGY ..................................................................................................18
APPENDIX II: DETAILED IMPACT TABLES................................................................................21
APPENDIX III: THE WASHINGTON ECONOMICS GROUP, INC. PROJECT TEAM AND
QUALIFICATIONS ................................................................................................33
ii
List of Tables
Table 1. Summary of the Economic Impacts Arising from Development of the
Florida Marlins Ballpark...............................................................................................4
Table 2. Person Years of Employment Arising from Development of the Florida Marlins Ballpark ...........................................................................................................5
Table 3. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark.........................................................................................................................6
Table 4. Miami GDP Arising from Development of the Florida Marlins Ballpark....................6
Table 5. Economic Output Impacts Arising from Development of the Florida Marlins Ballpark ...........................................................................................................7
Table 6. Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark.........................................................................................................................8
Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Florida Marlins Team Operations in the New Ballpark ..........................................................10
Table 8. Recurring Employment Impacts Arising from Florida Marlins Team Operations...................................................................................................................11
Table 9. Recurring Labor Income Impacts Arising from Florida Marlins Team Operations...................................................................................................................11
Table 10. Recurring Miami GDP Arising from Florida Marlins Team Operations....................12
Table 11. Recurring Economic Output Impacts Arising from Florida Marlins Team Operations...................................................................................................................13
Table 12. Recurring Fiscal Contributions of Florida Marlins Team Operations ........................13
Table 13. Sales Tax Generated at the Completed Florida Marlins Ballpark...............................14
The Washington Economics Group, Inc. Page 1
I. BACKGROUND
The Washington Economics Group, Inc. (WEG) has been retained to prepare an economic
impact analysis of the development of the proposed Florida Marlins Ballpark and ongoing
operations of the Florida Marlins Baseball Team in the City of Miami.
As currently proposed, the Florida Marlins Ballpark will be located at the site of the former
Orange Bowl adjacent to the central business district of downtown Miami. The proposed
state-of-the-art ballpark will consist of 927,000 square feet of constructed area for 37,000
spectators, enclosed with a three-panel operable roof system. This roof system will be able to
cover the playing field and seating terraces if conditions require. In the open ballpark
configuration, the operable roof panels will park over a grand plaza, creating an
entertainment entry district. When the roof and outfield wall are retracted, the ballpark’s
interior space transforms, and the seating terraces become open to the sky.
Spectator seating areas are supported by three distinct levels, the main concourse level, the
club/suite level and the upper concourse level. All seating levels are oriented for prime
views of the playing field, as well as offering views of the Miami skyline beyond the outfield
wall.
The architecture of the ballpark has been described as a kinetic sculptural expression with its
large curvilinear movable roof panels and exterior form. The retracting roof will be fully
operable, offering flexibility to protect the spectators and the field from sun and rain if
needed. When the ballpark is fully enclosed, it will be air conditioned to provide a
comfortable environment for spectators and players. The curving faceted forms enclosing the
spectator seating area and concourses will terrace down from the roof and will be layered to
create balconies with views out to the surrounding skyline, while appearing to reduce the
scale of the building gracefully. The exterior skin of the ballpark will consist of a faceted
metal panel system, glass curtain wall and pre-cast concrete panels. These elements will be
organized in a manner to create a powerful symbol within the Miami skyline.
Plans for the ballpark also call for the construction of up to 96 residential units, up to 61,678
square feet of ancillary and accessory retail space, four parking structures and six surface
parking lots with approximately 6,000 spaces on the site as well as improvements to public
infrastructure on and adjacent to the site.
For this analysis, WEG utilized the Minnesota IMPLAN Group, Inc.’s (MIG) software and
basic data needed to formulate the economic multiplier model developed for quantifying the
The Washington Economics Group, Inc. Page 2
proposed ballpark development and ongoing activities of the Florida Marlins on the City of
Miami. MIG has been providing economic multiplier models for regional economic impact
analysis since 19851. Models developed using IMPLAN software have been widely used by
the private sector, academic economists and by federal, state and local government agencies
to measure the economic impacts of various policy alternatives.
The development of the proposed ballpark in the City of Miami will generate significant
quantifiable economic impacts. These impacts, estimated by utilizing a professionally
accepted and widely used methodology, will support employment, the generation of labor
income, economic output and public revenues in the City of Miami. Estimates calculated on
page 14 will result in close to $1 million ($780,000) a year in sales taxes alone that are paid
to the City from operations inside the ballpark. Therefore, the economic outcomes expected
from development of the proposed ballpark will provide significant economic benefits to the
City of Miami and its residents.
It should be noted that the model utilized in this study measures only economic impacts
generated within the boundaries of the City of Miami. Additional benefits are generated
within other cities in Miami-Dade County and other parts of South Florida that are not
included in this analysis, but which are indeed substantial.
Methodology Used in this Analysis
Economic models that explicitly account for inter-industry linkages (supply relationships),
the generation of labor and capital income and the spending of household income have been
used since the 1960’s to estimate the contribution that a particular business or industry makes
to the general economy. These “input-output” models recognize that, as an industry
experiences an increase in the demand for its products or services, it in turn needs more goods
and services from its suppliers and must increase its purchases from other industries in the
economy. The effect on regional production resulting from successive rounds of inter-
industry linkages is referred to as the indirect effect. The resulting increases in regional
production also lead to expansions in employment and labor income, and the increases in
labor income lead to more consumer spending, further expanding sales and production
throughout the regional economy. The latter economic impacts are referred to as the induced
effects. The successive waves of production, spending and more production result in
economic multiplier effects, where the final or total increase in regional production, income
and employment, respectively, is larger than the initial (or “direct”) increase in production,
income and employment. The total quantitative economic contribution of these activities,
therefore, is comprised of a direct effect, an indirect effect and an induced effect.
1Information on the IMPLAN Group models and the company history can be found at www.implan.com.
The Washington Economics Group, Inc. Page 3
II. THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF THE FLORIDA
MARLINS BALLPARK ON THE CITY OF MIAMI
The expenditures associated with the development of the proposed Florida Marlins Ballpark
will generate economic impacts that extend beyond those directly related to the development
process. These “spillover” or multiplier impacts are the result of each business activity’s
supply relationships with other firms operating within the region, the proportion of Gross
Domestic Product (GDP)2 that accrues to households in the form of labor and capital income,
and the propensity of households to spend income on goods produced within the local area.
The direct impact of the development of the proposed Florida Marlins Ballpark is comprised
of all of the local expenditures for labor and materials that will be used in the construction of
the ballpark, parking garage and associated public infrastructure. A portion of the total costs
of construction is likely to be paid to business establishments and workers located outside of
the City of Miami. These “imports” of goods and services do not add to the level of
economic activity in the City, though they benefit the South Florida region and other
communities where these expenditures take place. This is likely to be the case for a
significant portion of the cost for architectural and engineering services for the ballpark.
The estimated construction costs of the ballpark, parking garage and associated
improvements to public infrastructure in the vicinity of the ballpark are $634 million
(ballpark $515 million, parking garage $94 million and public infrastructure $25 million).
While a detailed breakdown of construction costs is not available, the impact estimates are
based on the total “hard costs” of construction of $569.9 million and $64.1 million of “soft
costs” (design, engineering, etc.). Further adjustments to these estimated expenditures were
made to exclude payments to businesses located outside the City. It is projected that
approximately 22 percent of the hard cost expenditures will go to businesses located outside
the City, and 60 percent of the soft cost expenditures will go to suppliers located outside the
City. With these adjustments, total project expenditures within the City of Miami are
expected to be $470.1 million3.
2The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities. 3Cruz, Dr. Robert D. “Economic Impact of Construction Spending on Three Special Redevelopment Projects: The Marlins Ballpark, Museum Park, and the Port Access Tunnel,” May 23, 2008. Dr. Cruz’s estimates focused on Miami-Dade County. These estimates were utilized in this analysis, as almost all of the local expenditures will occur in the City of Miami.
The Washington Economics Group, Inc. Page 4
The construction spending estimates discussed above constitute direct economic impacts
entered into the IMPLAN Model for the City of Miami. Based in the direct impacts the
IMPLAN model estimates the direct impacts for employment, labor income, public-sector
fiscal revenues, and City of Miami Gross Domestic Product. The IMPLAN model also
estimates indirect and induced economic impacts of the proposed Florida Marlins Ballpark
development for all variables. These comprehensive direct, indirect and induced economic
impacts are summarized in Table 1 below.
An estimated 7,781 person years of employment (one person employed for one year) for
local residents will result from the development of the Florida Marlins Ballpark. The
development phase of the ballpark is directly responsible for 4,774 person years of
employment in the Construction and related support sectors. Current estimates call for the
development phase to be completed within three years of commencement. Based on this
schedule, the estimates of person years of employment can be divided by three to obtain an
approximation of the number of people working on the job at any one point in time. These
calculations suggest that approximately 1,600 people will be directly employed on the
project, and that another 1,000 jobs throughout the City of Miami will be supported by the
ballpark’s development. These estimates for direct employment on the ballpark are consistent
with estimates prepared by the projects managers.
The ballpark’s indirect and induced job creation process reaches deeply into all sectors of the
local economy. This dramatically demonstrates the close supply inter-relationships that the
Construction sector has with all of the other sectors of the local economy. Specifically, 1,334
person years of employment are supported via these indirect economic effects (mostly
suppliers). Lastly, 1,673 person years of employment in all sectors of the local economy are
Table 1. Summary of the Economic Impacts Arising from Development of the Florida Marlins Ballpark
Impact on: Direct Indirect & Induced
Total Impact
Employment (Person Years) 4,774 3,007 7,781
Labor Income ($ Mill.) 216 125 341
City of Miami Gross Domestic Product (GDP $ Mill.) 242 203 445
Federal, State & Local Tax Revenues ($ Mill.) ------- ------- 103
Total Economic Impact ($ Mill.) 470 345 815
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 5
generated by induced spending effects. Therefore, the total number of person years of
employment, directly, indirectly and induced, supported by the development of the
Florida Marlins Ballpark is estimated at 7,781 – making a significant contribution to
local employment opportunities in Miami.
The number of person years of employment estimated by the IMPLAN model to be created
in each economic sector by the development of the Florida Marlins Ballpark is summarized
in Table 2. Of the 7,781 person years of employment supported by the Development phase,
59 percent are in the Construction sector, 27 percent are in the Knowledge-Based Services
sectors, and the remaining 14 percent are distributed among other economic sectors.
The development of the Florida Marlins Ballpark will also be an important generator of
Labor Income for the City’s workers. (Labor Income is the total value of compensation to all
workers.) In addition to the $216 million of Labor Income directly generated by construction
of the ballpark and associated infrastructure, $59 million of Labor Income is created by
indirect economic activities, and $66 million of Labor Income is created by induced
economic activities.
In summary, development of the Florida Marlins Ballpark is estimated to generate
almost $341 million in Labor Income, with the largest proportion of income generated
from the Construction and Knowledge-Based Services economic sectors as shown in
Table 3 next page.
Table 2. Person Years of Employment Arising from Development of the Florida Marlins Ballpark
Industry Jobs Supported
Construction 4,558
Knowledge-Based Services* 2,075
Retail Trade 560
Wholesale Trade & Transportation Services 238
Visitor Industry 217
Manufacturing 84
Government & Other 49
Total All Industries 7,781
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-1. *Find Knowledge-Based Services definition on page 22.
The Washington Economics Group, Inc. Page 6
Table 3. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ($ in thousands)
Industry Total Impact
Construction 203,990
Knowledge-Based Services* 94,202
Retail Trade 17,385
Wholesale Trade & Transportation Services 11,732
Visitor Industry 5,425
Manufacturing 4,119
Government & Other 3,920
Total All Industries $340,772
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-2. *Find Knowledge-Based Services definition on page 22.
Gross Domestic Product (GDP) arising from the project is another measure of
economic development benefits from the development of the Florida Marlins Ballpark.
The GDP of an area represents the net economic value created through the local production
of goods and services. This net economic value is used to compensate workers, pay taxes,
and provide a return to investors in the business activities. GDP is also the principal source of
household income and a key measure of the contributions that the development of the
ballpark and associated infrastructure will make to the City of Miami economy. The
development of this project will create over $242 million of local GDP directly, while $83
million of local GDP will be the result of indirect activities, and $120 million of local GDP
will be the result of induced economic activities. In total, the development of the Florida
Marlins Ballpark will generate almost $445 million in GDP for the City.
Table 4. Miami GDP Arising from Development of the Florida Marlins Ballpark ($ in thousands)
Industry Total Impact
Construction 229,922
Knowledge-Based Services* 122,998
Government & Other 29,332
Retail Trade 27,963
Wholesale Trade & Transportation 20,142
Visitor Industry 8,155
Manufacturing 6,434
Total All Industries $444,946
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-3. *Find Knowledge-Based Services definition on page 22.
The Washington Economics Group, Inc. Page 7
Table 4 summarizes the local GDP estimated to be created by the development of the
ballpark in each economic sector. The greatest increases in Miami GDP are estimated to
occur in the Construction and Knowledge-Based Services sectors where it is projected
that 80 percent of the Miami GDP is to be created.
A final and comprehensive measure of the total economic impact of the development of the
Florida Marlins Ballpark on Miami is Gross Economic Output, representing the sum of gross
revenues (receipts) of private firms plus the value of government services (valued at cost).
The total economic impact of the development of the Florida Marlins Ballpark on the
City is estimated at almost $815 million – generating a significant economic impact. Of
this total, an estimated $470 million is generated by direct activities, while an additional
$345 million is generated by indirect and induced activities. Table 5 shows the industry
distribution of the total economic impact.
Table 5. Economic Output Impacts Arising from Development of the Florida Marlins Ballpark ($ in thousands)
Industry Total Impact
Construction 446,077
Knowledge-Based Services* 219,924
Retail Trade 42,245
Government & Other 36,707
Wholesale Trade & Transportation Services 32,273
Manufacturing 23,243
Visitor Industry 14,496
Total All Industries $814,965
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-4. *Find Knowledge-Based Services definition on page 22.
In addition to the various economic impacts presented, the development of the Florida
Marlins Ballpark will result in significant fiscal revenues for federal, state, and local
governments as shown in Table 6 next page. Over the course of development, almost $103
million of fiscal revenues are generated. Of this total, $78.5 million, or 76 percent, flow to
the federal government, and the remaining $24.4 million, or 24 percent, of tax revenues are
allocated to state and local governments.
The Washington Economics Group, Inc. Page 8
Table 6. Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark ($ in thousands)
Taxes Paid By Federal Taxes
State/Local Taxes
Total Taxes
Labor $ 30,299 $ 595 $ 30,894
Capital 3,891 ----- 3,891
Households 33,649 2,076 35,725
Corporations 7,950 2,908 10,858
Indirect Business Taxes 2,716 18,795 21,511
Total: $78,505 $24,374 $102,879
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-5.
The Washington Economics Group, Inc. Page 9
III. THE RECURRING ECONOMIC IMPACTS OF THE FLORIDA MARLINS TEAM
OPERATIONS ON THE CITY OF MIAMI
In this section, the annual economic impacts of the ongoing operations of the Florida Marlins
Baseball Team on the City of Miami are analyzed. These activities include:
• Local expenditures made by the Florida Marlins in order to operate the stadium and
the baseball team. Included are all expenditures that the Marlins project will incur to
undertake operations in the new ballpark, administrative expenses, and player salaries
prorated for the portion of the year that these individuals can be expected to reside in
Miami. The Florida Marlins estimate that these expenditures will average $130.1
million per annum.
• Lodging, dining and local transportation expenditures made by visiting teams,
baseball umpires and non-local members of the press. The Florida Marlins estimate
that these expenditures will average $2.3 million per annum.
• Expenditures made by out-of-town baseball fans as they attend Marlins home games
in the proposed ballpark (excluding the purchase of tickets to the games). These
expenditures include purchases of food and drink, parking and purchases of novelties
and souvenirs. In instances where out-of-town fans remain in Miami overnight, these
expenditures include lodging expenditures. The Florida Marlins provided estimates of
out-of-town fan attendance at their home games. Estimated fan expenditures are
based on experience at Nationals Park in Washington, D.C. The projected fan
expenditures are consistent with other local surveys of out-of-town visitor
expenditures, including those produced by the Greater Miami Convention and
Visitors Bureau. In total, these expenditures are projected to average $45.2 million
per annum once the new ballpark is fully operational.
Therefore, the ongoing activities in the completed ballpark will generate significant
quantifiable and recurring economic impacts each year. These impacts, estimated by
utilizing professionally accepted and widely used methodology, will support other
employment and the generation of labor income, economic output and public revenues in the
City of Miami on an ongoing basis.
The expenditures associated with activities in the completed ballpark generate economic
impacts that extend beyond those directly related to its operations. These “spillover” or
multiplier impacts are the result of each business activity’s supply relationships with other
The Washington Economics Group, Inc. Page 10
firms operating within the community, the proportion of local GDP4 that accrues to
households in the form of labor and capital income and the propensity of households to spend
income on goods produced within the local area.
The direct impact of the activities that will occur in the completed ballpark is comprised of
all expenditures made by the team, visiting teams, and expenditures made by out of town
fans attending Marlins home games. Utilizing the direct economic impacts discussed above,
indirect and induced economic impacts of the activities occurring in the completed ballpark
were calculated using an extended input-output model of the City of Miami economy. These
comprehensive direct, indirect and induced economic impacts are summarized in Table 7.
An estimated 2,708 permanent jobs for local residents result directly or indirectly from the
baseball and related activities occurring at the completed ballpark. Expenditures related to
baseball operations and out-of-town fan expenditures are directly responsible for 1,667 jobs
in the Knowledge-Based Services, Government & Other and related support sectors.
However, the indirect and induced job creation process reaches deeply into all sectors of the
local economy. This dramatically demonstrates the close supply inter-relationships that these
sectors have with all of the other sectors of the local economy. An additional 377 jobs are
supported via indirect economic effects (mostly suppliers). Lastly, 664 jobs are generated by
induced spending effects. Therefore, the total number of jobs, directly, indirectly and
induced, supported by activities in the completed ballpark are estimated at 2,708 –
making a significant contribution to local employment opportunities.
4 The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities.
Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Florida Marlins Team Operations in the New Ballpark
Impact on: Direct Indirect & Induced
Total Impact
Employment (Jobs) 1,667 1,041 2,708
Labor Income ($ Mill.) 96 44 140
Miami Gross Domestic Product (GDP – $ Mill.) 127 76 203
Federal, State & Local Tax Revenues ($ Mill.) ------- ------- 57
Total Economic Impact ($ Mill.) 178 121 299
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 11
The jobs created in each economic sector by baseball and other activities that are projected to
occur in the completed ballpark are summarized in Table 8. Of the 2,708 jobs supported by
these activities, 67 percent are in the Knowledge-Based Services sector. An additional 23
percent of the jobs created are in the Visitor Industry, with the remaining 10 percent of jobs
distributed among other economic sectors.
Table 8. Recurring Employment Impacts Arising from Florida Marlins Team Operations
Industry Jobs Supported
Knowledge-Based Services* 1,815
Visitor Industry 629
Retail Trade 145
Wholesale Trade & Transportation Services 71
Government & Other 22
Manufacturing 18
Construction 8
Total All Industries 2,708
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-1. *Find Knowledge-Based Services definition on page 22.
The ongoing activities that will occur in the completed ballpark will be an important
generator of Labor Income for workers in the City of Miami. In addition to the $96 million
annually of recurring Labor Income directly generated by activities that will occur in the
ballpark, more than $18 million of Labor Income will be created by indirect economic
activities each year and $26 million of Labor Income will be created by induced economic
activities each year. In summary, activities in the completed Florida Marlins Ballpark
will generate over $140 million in Labor Income each year, with the largest proportion
of income generated from the Knowledge-Based Services economic sector as shown in
Table 9.
Table 9. Recurring Labor Income Impacts Arising from Florida Marlins Team Operations ($ in thousands)
Industry Total Impact
Knowledge-Based Services* 110,432
Visitor Industry 18,933
Retail Trade 4,415
Wholesale Trade & Transportation Services 3,602
Government & Other 1,733
Manufacturing 889
Construction 375
Total All Industries $140,380
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-2.
The Washington Economics Group, Inc. Page 12
*Find Knowledge-Based Services definition on page 22.
Gross Domestic Product (GDP)5 arising from recurring activities (ongoing) in the
completed ballpark is another measure of the economic benefits of this development.
The GDP of an area represents the net economic value created through the local production
of goods and services. This net economic value is used to compensate workers, pay taxes,
and provide a return to investors in the business activities. GDP is also the principal source of
household income and a key measure of the contributions that the Marlins ongoing
operations in the completed ballpark will make to the City of Miami economy. Each year
activities at the completed ballpark will create over $127 million of local GDP directly, while
close to $28 million of local GDP will be created by indirect activities, and more than $47
million of local GDP will be created by induced economic activities. In total, baseball and
other activities at the completed ballpark will generate just under $203 million in local GDP
each year. Table 10 summarizes the recurring local GDP impacts of baseball and other
activities associated with the completed ballpark on each economic sector. The greatest
increases in local GDP will arise in the Knowledge-Based Services and the Visitor
Industry where 87 percent of the local GDP will be created.
Table 10. Recurring Miami GDP Arising from Florida Marlins Team Operations ($ in thousands)
Industry Total Impact
Knowledge-Based Services* 145,542
Visitor Industry 30,805
Government & Other 12,014
Retail Trade 7,025
Wholesale Trade & Transportation Services 5,626
Manufacturing 1,419
Construction 395
Total All Industries $202,825
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-3. *Find Knowledge-Based Services definition on page 22.
A final and comprehensive measure of the total recurring economic impact of the ongoing
operations at the Florida Marlins Ballpark is Gross Economic Output, representing the sum
of total gross revenues (receipts) of private firms plus the total value of government services
(valued at cost). The total recurring economic impact of the activities at the completed
5The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities.
The Washington Economics Group, Inc. Page 13
ballpark is estimated at just over $299 million annually. Of this total, $178 million will be
generated by direct activities related to activities at the ballpark, while an additional $121
million will be generated by indirect and induced activities. As presented in the previous
analysis of these economic impacts, the greatest increases in total economic impact (Gross
Economic Output) will arise in the Knowledge-Based Services, Visitor Industry and
Government & Other sectors, where 91 percent of the recurring economic output will be
created as shown in Table 11 below.
Table 11. Recurring Economic Output Impacts Arising from Florida Marlins Team Operations ($ in thousands)
Industry Total Impact
Knowledge-Based Services* 206,983
Visitor Industry 50,758
Government & Other 15,124
Retail Trade 10,547
Wholesale Trade & Transportation Services 8,923
Manufacturing 5,764
Construction 941
Total All Industries $299,039
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-4 *Find Knowledge-Based Services definition on page 22.
In addition to the various economic impacts presented, baseball and other activities at the
completed ballpark will result in significant fiscal revenues each year for federal, state, and
local governments as shown in Table 12. Each year almost $57 million of fiscal revenues will
be generated by ongoing activities. Of this total, $35.3 million, or 62 percent, will flow to the
federal government, with the remaining $21.7 million, or 38 percent, of tax revenues being
allocated to state and local governments.
Table 12. Recurring Fiscal Contributions of Florida Marlins Team Operations ($ in thousands)
Taxes Paid By Federal Taxes
State/Local Taxes
Total Taxes
Labor $ 14,360 $ 282 $ 14,642
Capital 814 ----- 814
Households 13,379 825 14,204
Corporations 3,943 1,442 5,385
Indirect Business Taxes 2,771 19,175 21,946
Total: $35,267 $21,724 $56,991
The Washington Economics Group, Inc. Page 14
Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-5.
Baseball and other activities at the completed ballpark will be important generators of Sales
Tax Revenues for the City of Miami and for the State of Florida. The Florida Marlins have
prepared estimates of fan attendance and taxable revenues that will occur at the completed
ballpark. On average, during the first five years of operations, the Florida Marlins forecast
that ticket sales, concession revenues and other activities occurring at the ballpark will
generate $10.9 million dollars of sales tax revenues each year, as shown in Table 13 below. It
should be noted that these estimates do not include fiscal revenues associated with other
taxes and fees, nor do they include taxes or fees collected on activities occurring outside of
the completed ballpark.
Table 13. Sales Tax Generated at the Completed Florida Marlins Ballpark
Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 5 Yr. Avg.
Attendance (Tickets Sold) 2,835,000 2,700,000 2,600,000 2,400,000 2,300,000 2,567,000
Total Sales Tax Ballpark Events $11,344,872 $11,150,232 $10,901,900 $10,474,521 $10,696,884 $10,913,682
Source: The Florida Marlins.
Under Florida law, one half of one percent (0.50) of all local taxable
expenditures, or one twelfth (1/12) of the State’s sales tax collections are
transferred to local governments. Consultant estimates that recurring
expenditures attributable to activities at the completed ballpark will average
$156 million each year, and that the City’s portion of the associated sales taxes
will be $780,000 each year.
The Washington Economics Group, Inc. Page 15
IV. POTENTIAL ECONOMIC IMPACTS ASSOCIATED WITH BASEBALL’S “JEWEL” EVENTS
Major League Baseball has three high profile also known as “Jewel” events that have the
potential to take place in the completed ballpark. These events are the Major League All-Star
Game, the World Series (and the remaining portions of the Major League Baseball post-
season) and the World Baseball Classic. All of these events draw large numbers of visitors to
the host communities, as well as extensive media coverage of the host community in both the
sports and mainstream media. Involvement in these events by either Miami as a host City,
and/or the Florida Marlins as participants will generate significant economic impacts in
addition to those already discussed.
The Major League All-Star Game highlights a multi-day series of baseball-related events
occurring in the host City. The All-Star Game pits the top players of the American and
National Leagues against each other, and determines which league will have the home field
advantage in that year’s World Series. Major League Baseball has an established pattern of
awarding the All-Star Game to newly established teams and teams with new ballparks a few
years after the teams are established or after the new ballpark is opened. While it cannot be
guaranteed that the Florida Marlins will have the opportunity to host an All-Star Game in the
future, past patterns and other indications from Major League Baseball strongly suggest that
it is likely to happen at some point during the first five years of the ballpark’s existence.
Economic impact analyses of prior years All-Star Games played at locations throughout the
nation suggest that a wide range of potential economic impacts can occur if this event were
held in Miami. The smallest economic impact was $37.6 million for the 1997 All-Star Game
played in Cleveland, while the largest impact was $148.4 million for the 2008 All-Star Game
played in New York6. The impacts of recent All-Star games held in markets similar to Miami
include Houston, which hosted the 2004 All-Star game with an economic impact of $65
million, and Pittsburgh which hosted the 2006 All-Star Game with an economic impact of
$52.3 million.
The World Series takes place each October in the cities of the champions of the American
and National Leagues. Each team has the potential to host between two and four games of
this series, following the successful completion of their division and league play-offs. Like
the World Series, the league play-offs are a “best of seven” series, guaranteeing each team a
minimum of two home games, and a potential for four games during each of these series
(The division play-offs are a best of five series). The World Series is followed throughout
6 Major League Baseball data.
The Washington Economics Group, Inc. Page 16
the world, with extensive press coverage for the duration of the series. Additionally, it draws
large numbers of visitors to the host cities each year. Since the establishment of the Florida
Marlins baseball team, the team has played in two World Series championships. Potential
economic impacts for the City of Miami from the Marlins participation in a World Series are
likely to be similar to the range of economic impacts associated with hosting the All-Star
Game.
The World Baseball Classic (WBC) takes place once every four years with the next Classic
scheduled to be played in 2009. Given the Marlins proximity to over half of Major League
Baseball’s spring training facilities and Miami's proximity to many of the Caribbean nation
teams (Dominican Republic, Venezuela, Puerto Rico) participating in the Classic, Miami will
likely be a regular candidate to host the finals or one of the major rounds of the WBC every
four years. Major League Baseball has indicated to the Marlins that the team is a strong
candidate to host the 2013 World Baseball Classic if the new stadium is operational7. The
Marlins will also have the opportunity to host practice and training sessions for one or more
teams during each Classic, and the Marlins will also be a candidate to host one of the
Classic’s first round brackets in any year that they are not selected to host the finals or semi-
finals of the Classic. Hosting activities associated with the World Baseball Classic will bring
significant numbers of out-of-town visitors to Miami to attend these events, as well as
creating significant national and international media coverage of the Classic and Miami as
the host City for the event.
Each of these events has the potential to significantly increase the economic impact of the
Florida Marlins by drawing large numbers of visitors to Miami and thus generating favorable
media coverage of the community. Further, the baseball “Jewel” events occur outside of
South Florida’s winter tourism season helping to increase patronage of South Florida’s
entertainment and visitor industries during periods of reduced activity. The impacts
associated with these “Jewel” events are not included in this analysis and are additional to the
recurring impacts associated with the Florida Marlins ongoing activities during the regular
baseball season.
7 Information from the Florida Marlins.
The Washington Economics Group, Inc. Page 17
V. CONCLUSION
The development phase and recurring operations of the proposed Florida Marlins Ballpark
will be a significant generator of jobs in the building trades and the construction industries of
Miami-Dade and the City of Miami. The ballpark will require large amounts of goods and
materials, becoming an important customer for local companies that supply these products to
the building industry. When completed, the ballpark will be home to the Florida Marlins
Baseball Team and host over 80 baseball games each year, generating important economic
impacts on jobs supported, labor income, economic output and fiscal revenues. Due to
Miami’s location and reputation as a premier vacation and recreation destination, the ballpark
has the potential to host high profile baseball events as well as many other activities that can
take advantage of the ballpark’s capabilities and Miami’s varied and multiple amenities.
The Washington Economics Group, Inc. Page 18
APPENDIX I:
METHODOLOGY
The Washington Economics Group, Inc. Page 19
IMPLAN MODEL
The multiplier impacts calculated by the IMPLAN model are based on input-output
methodology, which explicitly considers the inter-industry linkages that exist within an
economy. Each industry needs labor and inputs from other industries in order to produce
economic output. Whenever an industry experiences an increase in the demand for its
output, many other industries within that economy indirectly experience an increase in
demand as well because of these inter-industry linkages. This increase in demand that results
from the need for material inputs is called the indirect effects. In addition, an increase in
production within a region also leads to an increase in household income through the hiring
of workers, which in turn generates further demands for goods and services within the region.
Firms also need to expand their base of physical capital to meet higher levels of demand, and
this too stimulates regional economic growth. The latter effects are referred to as induced
effects. The inter-industry linkages and the induced effects on consumer and capital spending
lead to successive rounds of production, and this process results in an increase in output that
exceeds the initial change in demand, or a multiplier effect. Similarly, the increase in
household income will exceed the initial payroll increase encountered in the industry that
experienced the original increase in demand. The total change in employment in the regional
economy is a multiple of the direct change in employment.
The following represents the system of equations that comprise the regional economy in
an extended input-output model like IMPLAN:
The variables x1 to xk represent total production of output in each industry. The coefficients
iiiihihkikhiiii
hihihhhkhkhhhhh
kikihkhkkkkkkk
iihhkk
IIhhkk
iihhkk
fxaxaxaxaxaxax
fxaxaxaxaxaxax
fxaxaxaxaxaxax
fxaxaxaxaxaxax
fxaxaxaxaxaxax
fxaxaxaxaxaxax
+++++++=
+++++++=
+++++++=
+++++++=
+++++++=
+++++++=
L
L
L
M
L
L
L
32211
32211
332211
33333332321313
22223232221212
11113132121111
The Washington Economics Group, Inc. Page 20
aij represent the purchases from industry “i” that are needed to produce a dollar of output in
industry “j”. These are known as the direct requirement coefficients. The variable xh refers
to household income and the coefficients aih refer to the average amount of household
income spent on purchases from industry “i”, or the average propensities to consume. The
coefficients ahi are similar to the inter-industry purchases (aij’s), but they represent the
household income that is generated from each dollar of output produced in industry “i”.
Similarly the variable xI represents regional spending on capital goods, and the coefficients aIj
represents the spending on capital goods for each dollar of output produced in industry “j”.
The coefficients ajI represent the amount purchased from industry “j” for each dollar spent on
capital goods within the region. The variables fj represent the exogenous final demand faced
by each industry, respectively.
This system of equation reduces, using matrix notation, to the following solution for
industry output and household income:
X is the vector of industry outputs plus household income and F is a vector of exogenous
final demands. The “output multipliers” (i.e., the change in industry output and household
income that results from a change in final demand for the output of a particular industry) are
given in the columns of the (I-A)-1 matrix. The IMPLAN software calculates these
multipliers for counties, states and other sub-state regions. These multipliers can be used to
provide a sense of the economic importance of an industry or an economic activity in a given
region. The multipliers impacts for gross state product, labor and capital income and the
government revenue impacts are derived from the basic output multipliers given by (I-A)-1.
The IMPLAN model uses historical relationships between public-sector revenues and
regional economic output in order to estimate the public-sector revenue impact resulting from
the establishment of a new, or expansion of an existing economic activity.
FAIX1)( −
−=
The Washington Economics Group, Inc. Page 21
APPENDIX II:
DETAILED IMPACT TABLES DETAILED IMPACT TABLES
The Washington Economics Group, Inc. Page 22
DETAILED IMPACT TABLES
Within the main portion of this analysis, the economic impacts are presented at a summary level. Direct, indirect, and induced impacts are aggregated into the Total Impact, and Industries are summarized by function. The following tables present detailed impacts at the two-digit NAICS industry classification level. The following industry sector summarizations are used in this analysis.
1. Government and Other is the sum of: Agriculture & Forestry, Mining, Utilities, Company Management, and Government & Other
2. Knowledge-Based Services is the sum of: Information, Finance & Insurance, Real Estate, Professional Services, Administrative, Educational Services, Health & Social Services, Arts, Entertainment & Recreation, and Other Services
3. Wholesale Trade & Transportation Services is the sum of: Wholesale Trade, and Transportation & Warehousing
4. The Accommodation and Food Services sector was renamed to the Visitor Industry
List of Tables:
Table A-1. Person Years of Employment Arising from Development of the Florida Marlins Ballpark............................................................................................................................. 23
Table A-2. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ....... 24
Table A-3. Miami GDP Arising from Development of the Florida Marlins Ballpark........................ 25
Table A-4. Economic Output Arising from Development of the Florida Marlins Ballpark ............... 26
Table A-5. Detailed Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark............................................................................................................................. 27
Table B-1. Recurring Employment Impacts Arising from the Florida Marlins Team Operations ..... 28
Table B-2. Recurring Labor Income Impacts Arising from the Florida Marlins Team Operations......................................................................................................................... 29
Table B-3. Recurring Miami GDP Arising from the Florida Marlins Team Operations.................... 30
Table B-4. Recurring Economic Output Impacts Arising from the Florida Marlins Team Operations......................................................................................................................... 31
Table B-5. Detailed Recurring Fiscal Contributions of the Florida Marlins Team Operations.......... 32
The Washington Economics Group, Inc. Page 23
Index
BALLPARK DEVELOPMENT
Table A-1. Person Years of Employment Arising from Development of the Florida Marlins Ballpark
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 0.2 1.1 1.3
Mining 0.0 0.1 0.0 0.1
Utilities 0.0 2.4 5.9 8.3
Construction 4,544.4 6.8 7.2 4,558.4
Manufacturing 0.0 53.9 29.8 83.7
Wholesale Trade 0.0 56.5 62.7 119.2
Transportation & Warehousing 0.0 66.9 51.4 118.3
Retail Trade 0.0 244.5 315.4 559.9
Information 0.0 16.5 20.1 36.6
Finance & Insurance 0.0 54.1 92.7 146.8
Real Estate 0.0 64.4 83.4 147.8
Professional Services 229.6 456.1 68.6 754.3
Company Management 0.0 12.6 11.8 24.4
Administrative 0.0 219.3 85.5 304.8
Educational Services 0.0 2.6 62.8 65.4
Health & Social Services 0.0 0.0 378.1 378.1
Arts, Entertainment & Recreation 0.0 7.2 38.4 45.6
Accommodation & Food Services 0.0 35.5 181.6 217.1
Other Services 0.0 30.9 165.1 196.0
Government & Other 0.0 4.0 11.0 15.0
Total: 4,774.0 1,334.5 1,672.6 7,781.1
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 24
Table A-2. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 7.4 33.9 41.3
Mining 0.0 7.9 4.2 12.1
Utilities 0.0 248.3 601.9 850.2
Construction 203,353.6 308.6 328.1 203,990.3
Manufacturing 0.0 2,611.4 1,507.7 4,119.1
Wholesale Trade 0.0 2,692.1 4,092.4 6,784.5
Transportation & Warehousing 0.0 2,805.9 2,141.2 4,947.1
Retail Trade 0.0 7,608.1 9,777.0 17,385.1
Information 0.0 1,429.2 1,700.1 3,129.3
Finance & Insurance 0.0 3,709.8 6,219.9 9,929.7
Real Estate 0.0 1,781.9 2,079.7 3,861.6
Professional Services 12,815.3 26,275.6 4,333.2 43,424.1
Company Management 0.0 1,100.1 1,033.6 2,133.7
Administrative 0.0 5,815.5 2,258.9 8,074.4
Educational Services 0.0 107.7 2,352.0 2,459.7
Health & Social Services 0.0 1.5 17,316.8 17,318.3
Arts, Entertainment & Recreation 0.0 234.5 1,135.9 1,370.4
Accommodation & Food Services 0.0 1,054.9 4,369.9 5,424.8
Other Services 0.0 954.1 3,680.1 4,634.2
Government & Other 0.0 225.9 656.3 882.2
Total: 216,168.9 58,980.4 65,622.8 340,772.1
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 25
Table A-3. Miami GDP Arising from Development of the Florida Marlins Ballpark ($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 17.0 86.0 103.0
Mining 0.0 18.6 10.2 28.8
Utilities 0.0 901.6 2,178.4 3,080.0
Construction 229,255.3 327.5 339.3 229,922.1
Manufacturing 0.0 3,975.3 2,458.2 6,433.5
Wholesale Trade 0.0 6,573.7 7,286.4 13,860.1
Transportation & Warehousing 0.0 3,566.9 2,715.4 6,282.3
Retail Trade 0.0 12,264.2 15,698.9 27,963.1
Information 0.0 2,831.7 3,638.3 6,470.0
Finance & Insurance 0.0 6,156.9 10,343.1 16,500.0
Real Estate 0.0 6,431.8 8,021.2 14,453.0
Professional Services 12,880.4 27,727.1 5,027.9 45,635.4
Company Management 0.0 1,415.4 1,329.8 2,745.2
Administrative 0.0 7,008.0 2,821.0 9,829.0
Educational Services 0.0 115.1 2,543.0 2,658.1
Health & Social Services 0.0 2.1 19,956.8 19,958.9
Arts, Entertainment & Recreation 0.0 303.4 1,571.0 1,874.4
Accommodation & Food Services 0.0 1,709.1 6,446.2 8,155.3
Other Services 0.0 1,155.2 4,464.0 5,619.2
Government & Other 0.0 383.9 22,990.6 23,374.5
Total: 242,135.7 82,884.5 119,925.7 444,945.9
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 26
Table A-4. Economic Output Arising from Development of the Florida Marlins Ballpark ($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 21.5 119.9 141.4
Mining 0.0 42.1 23.4 65.5
Utilities 0.0 1,136.1 2,765.0 3,901.1
Construction 444,504.0 781.5 791.4 446,076.9
Manufacturing 0.0 12,921.0 10,322.0 23,243.0
Wholesale Trade 0.0 9,747.3 10,804.1 20,551.4
Transportation & Warehousing 0.0 6,596.3 5,125.0 11,721.3
Retail Trade 0.0 18,501.6 23,743.2 42,244.8
Information 0.0 5,732.4 7,513.8 13,246.2
Finance & Insurance 0.0 10,643.8 19,090.2 29,734.0
Real Estate 0.0 10,442.8 12,109.0 22,551.8
Professional Services 25,548.1 54,048.2 8,950.7 88,547.0
Company Management 0.0 2,420.1 2,273.7 4,693.8
Administrative 0.0 10,722.3 4,654.5 15,376.8
Educational Services 0.0 184.5 3,967.6 4,152.1
Health & Social Services 0.0 4.3 32,536.3 32,540.6
Arts, Entertainment & Recreation 0.0 464.0 2,501.4 2,965.4
Accommodation & Food Services 0.0 2,827.4 11,668.5 14,495.9
Other Services 0.0 2,350.9 8,459.6 10,810.5
Government & Other 101.1 838.4 26,965.6 27,905.1
Total: 470,153.2 150,426.5 194,384.9 814,964.6
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 27
Table A-5. Detailed Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark ($ in Thousands)
Taxes Paid By Tax
Labor Capital Households Corporations Indirect Business
Taxes Total
Federal Taxes
Transfer Payments $261.4 $261.4
Corporate Profits Taxes $7,949.7 $7,949.7
Customs Duties $552.4 $552.4
Excise Taxes $1,489.1 $1,489.1
Non-Tax Payments $675.1 $675.1
Income Taxes $33,648.8 $33,648.8
Social Ins. Taxes - Employees $14,908.3 $3,891.0 $18,799.3
Social Ins. Taxes - Employers $15,129.1 $15,129.1
Total Federal Taxes $30,298.8 $3,891.0 $33,648.8 $7,949.7 $2,716.6 $78,504.9
State & Local Taxes
Corporate Profits Tax $1,052.8 $1,052.8
Dividends $1,855.0 $1,855.0
Business Motor Vehicle Licenses $150.0 $150.0
Other Business Taxes $2,083.2 $2,083.2
Business Property Taxes $6,565.1 $6,565.1
Business Non Tax Payments $835.7 $835.7
Business Sales Taxes $9,139.4 $9,139.4
Severance Taxes $21.6 $21.6
Personal Motor Vehicle Licenses $432.0 $432.0
Personal Fines & Fees $1,434.3 $1,434.3
Personal Use Taxes & Fees $26.5 $26.5
Personal Property Taxes $183.2 $183.2
Social Ins. Taxes - Employees $119.0 $119.0
Social Ins. Taxes - Employers $476.4 $476.4
Total State & Local Taxes $595.4 $2,076.0 $2,907.8 $18,795.0 $24,374.2
Total Taxes $30,894.2 $3,891.0 $35,724.8 $10,857.5 $21,511.6 $102,879.1
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 28
ONGOING TEAM OPERATIONS
Table B-1. Recurring Employment Impacts Arising from the Florida Marlins Team Operations
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 0.1 0.5 0.6
Mining 0.0 0.0 0.0 0.0
Utilities 0.0 1.5 2.3 3.8
Construction 0.0 5.4 2.9 8.3
Manufacturing 0.0 6.5 11.8 18.3
Wholesale Trade 0.0 6.9 24.9 31.8
Transportation & Warehousing 2.4 16.4 20.4 39.2
Retail Trade 11.9 7.4 125.3 144.6
Information 0.0 8.1 8.0 16.1
Finance & Insurance 0.0 13.9 36.8 50.7
Real Estate 0.0 24.2 33.1 57.3
Professional Services 0.0 35.0 27.2 62.2
Company Management 0.0 5.6 4.7 10.3
Administrative 0.0 50.3 33.9 84.2
Educational Services 0.0 0.5 25.0 25.5
Health & Social Services 0.0 1.3 150.2 151.5
Arts, Entertainment & Recreation 1,077.5 168.6 15.2 1,261.3
Accommodation & Food Services 546.1 10.9 72.1 629.1
Other Services 29.0 11.7 65.6 106.3
Government & Other 0.0 2.5 4.6 7.1
Total: 1,666.9 376.8 664.5 2,708.2
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 29
Table B-2. Recurring Labor Income Impacts Arising from the Florida Marlins Team Operations ($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 2.2 13.5 15.7
Mining 0.0 0.6 1.7 2.3
Utilities 0.0 152.0 239.0 391.0
Construction 0.0 244.3 130.3 374.6
Manufacturing 0.0 290.5 598.9 889.4
Wholesale Trade 0.0 452.6 1,625.5 2,078.1
Transportation & Warehousing 53.5 620.1 850.7 1,524.3
Retail Trade 301.6 229.5 3,883.7 4,414.8
Information 0.0 691.8 675.4 1,367.2
Finance & Insurance 0.0 979.4 2,470.9 3,450.3
Real Estate 0.0 656.3 825.9 1,482.2
Professional Services 0.0 2,029.8 1,721.3 3,751.1
Company Management 0.0 489.0 410.6 899.6
Administrative 0.0 1,456.2 897.4 2,353.6
Educational Services 0.0 18.3 935.1 953.4
Health & Social Services 0.0 60.2 6,880.0 6,940.2
Arts, Entertainment & Recreation 77,867.0 9,478.4 451.4 87,796.8
Accommodation & Food Services 16,892.0 305.3 1,736.1 18,933.4
Other Services 579.0 296.1 1,462.5 2,337.6
Government & Other 0.0 163.9 260.7 424.6
Total: 95,693.1 18,616.5 26,070.6 140,380.2
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 30
Table B-3. Recurring Miami GDP Arising from the Florida Marlins Team Operations
($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 4.8 34.2 39.0
Mining 0.0 1.4 4.0 5.4
Utilities 0.0 552.0 865.1 1,417.1
Construction 0.0 260.5 134.8 395.3
Manufacturing 0.0 442.8 976.4 1,419.2
Wholesale Trade 0.0 805.8 2,894.1 3,699.9
Transportation & Warehousing 73.7 773.0 1,078.9 1,925.6
Retail Trade 418.5 370.0 6,236.0 7,024.5
Information 0.0 1,298.9 1,445.4 2,744.3
Finance & Insurance 0.0 1,667.6 4,108.7 5,776.3
Real Estate 0.0 2,958.9 3,185.2 6,144.1
Professional Services 0.0 2,339.9 1,997.3 4,337.2
Company Management 0.0 629.1 528.2 1,157.3
Administrative 0.0 1,905.1 1,120.7 3,025.8
Educational Services 0.0 20.4 1,011.0 1,031.4
Health & Social Services 0.0 83.2 7,928.8 8,012.0
Arts, Entertainment & Recreation 98,331.8 12,559.4 624.3 111,515.5
Accommodation & Food Services 27,760.7 483.3 2,561.0 30,805.0
Other Services 834.8 346.5 1,774.0 2,955.3
Government & Other 0.0 258.0 9,137.0 9,395.0
Total: 127,419.5 27,760.6 47,645.1 202,825.2
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 31
Table B-4. Recurring Economic Output Impacts Arising from the Florida Marlins Team Operations ($ in Thousands)
Impacts Industry
Direct Indirect Induced Total
Agriculture & Forestry 0.0 7.1 47.6 54.7
Mining 0.0 3.2 9.3 12.5
Utilities 0.0 692.7 1,098.0 1,790.7
Construction 0.0 626.3 314.4 940.7
Manufacturing 0.0 1,664.2 4,099.7 5,763.9
Wholesale Trade 0.0 1,194.9 4,291.3 5,486.2
Transportation & Warehousing 125.0 1,275.5 2,036.2 3,436.7
Retail Trade 557.5 558.1 9,431.4 10,547.0
Information 0.0 2,704.2 2,985.0 5,689.2
Finance & Insurance 0.0 2,684.0 7,584.0 10,268.0
Real Estate 0.0 4,741.2 4,808.7 9,549.9
Professional Services 0.0 4,466.5 3,555.7 8,022.2
Company Management 0.0 1,075.8 903.2 1,979.0
Administrative 0.0 3,301.9 1,849.2 5,151.1
Educational Services 0.0 32.6 1,577.4 1,610.0
Health & Social Services 0.0 173.2 12,926.8 13,100.0
Arts, Entertainment & Recreation 130,133.0 16,903.8 994.0 148,030.8
Accommodation & Food Services 45,305.1 817.1 4,635.8 50,758.0
Other Services 1,548.9 651.0 3,361.9 5,561.8
Government & Other 0.0 570.4 10,716.4 11,286.8
Total: 177,669.5 44,143.7 77,226.0 299,039.2
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 32
Table B-5. Detailed Recurring Fiscal Contributions of the Florida Marlins Team Operations ($ in Thousands) Taxes Paid By
Tax Labor Capital Households Corporations
Indirect Business Taxes Total
Federal Taxes
Transfer Payments $123.8 $123.8
Corporate Profits Taxes $3,942.6 $3,942.6
Customs Duties $563.6 $563.6
Excise Taxes $1,519.1 $1,519.1
Non-Tax Payments $688.7 $688.7
Income Taxes $13,378.8 $13,378.8
Social Ins. Taxes - Employees $7,065.8 $813.8 $7,879.6
Social Ins. Taxes - Employers $7,170.4 $7,170.4
Total Federal Taxes $14,360.0 $813.8 $13,378.8 $3,942.6 $2,771.4 $35,266.6
State & Local Taxes
Corporate Profits Tax $522.1 $522.1
Dividends $920.0 $920.0
Business Motor Vehicle Licenses $153.0 $153.0
Other Business Taxes $2,125.3 $2,125.3
Business Property Taxes $6,697.6 $6,697.6
Business Non Tax Payments $852.6 $852.6
Business Sales Taxes $9,323.9 $9,323.9
Severance Taxes $22.0 $22.0
Personal Motor Vehicle Licenses $171.8 $171.8
Personal Fines & Fees $570.3 $570.3
Personal Use Taxes & Fees $10.5 $10.5
Personal Property Taxes $72.8 $72.8
Social Ins. Taxes - Employees $56.4 $56.4
Social Ins. Taxes - Employers $225.8 $225.8
Total State & Local Taxes $282.2 $0.0 $825.4 $1,442.1 $19,174.4 $21,724.1
Total Taxes $14,642.2 $813.8 $14,204.2 $5,384.7 $21,945.8 $56,990.7
Source: The Washington Economics Group, Inc.
The Washington Economics Group, Inc. Page 33
THE WASHINGTON ECONOMICS GROUP, INC. PROJECT TEAM AND QUALIFICATIONS
J. ANTONIO “TONY” VILLAMIL
Dean, School of Business of St. Thomas University of Florida and Principal Advisor of
The Washington Economics Group, Inc.
Tony Villamil has over thirty years of successful experience as a business economist, University educator and high-level policymaker at both federal and state governments. He has served as a Presidential appointee U.S. Undersecretary of Commerce for Economic Affairs, and is the founder of a successful economic consulting practice, The Washington Economics Group, Inc. (WEG). Since August 2008, Tony is the Dean of the School of Business of St. Thomas University of Miami, while continuing to serve as Principal Advisor to the clients of WEG. Tony is a member of the President’s Advisory Committee on Trade Policy and Negotiations in Washington, D.C. He is the immediate past Chairman of the Governor’s Council of Economic Advisors of Florida, and during 1999-2000, he directed the Tourism, Trade and Economic Development activities of the State in the Office of Governor Jeb Bush. Presently, he is on the Board of Directors of the Spanish Broadcasting System (NASDAQ), Mercantil Commercebank, N.A. and Enterprise Florida – the State’s principal economic development organization.
Among other leadership positions, he served in 2008 as the economist of the Constitutionally mandated Tax and Budget Reform Commission of Florida (TBRC), and is currently Chairman of the Economic Roundtable of the Beacon Council – Miami-Dade County’s official economic development organization. He is also a Senior Research Fellow of Florida TaxWatch, an established fiscal and policy research organization of the State. After winning the gubernatorial election in November 2006, then Governor-elect Charlie Crist appointed him as his Economic Advisor during the transition period.
Tony earned bachelor and advanced degrees in Economics from Louisiana State University (LSU), where he also completed coursework for the Ph.D. degree. In 1991, Florida International University (FIU) awarded him a doctoral degree in Economics (hc), for “distinguished contributions to the Nation in the field of economics.” He speaks frequently to business, government and university audiences on economic topics, and was until the summer of 2008 a member of the Graduate Business Faculty of Florida International University (FIU).
Chuck Yaros is an Associate Consultant for Economics at The Washington Economics Group, Inc. (WEG). He serves as economic consultant in the areas of financial economics and economic impact studies. Prior to joining WEG he was a Vice President and Portfolio Strategist at Shay Financial Services in Miami where he specialized in developing, implementing and managing interest rate risk and capital optimization strategies for financial institutions. Mr. Yaros has over 20 years of experience as a business and financial economist, having worked in a number of positions of progressive responsibility in the South Florida business community. Additionally, he has spoken and taught courses on financial risk management.
Chuck received his undergraduate degree in Economics with Honors from Trinity College and his Master’s degree in Economics from Duke University, where he also completed course work for the Ph.D. degree. Chuck and his family are residents of Coral Gables, Florida. The Washington Economics Group, headquartered in Coral Gables, Florida, has been successfully meeting client objectives since 1993 through strategic consulting services for corporations and institutions based in the Americas. The Group has the expertise, high-level contacts, and business alliances to strengthen a firm’s competitive position in the rapidly expanding market places of Florida, and Latin America.
CHARLES K. YAROS Associate Consultant for Economics
The Washington Economics Group, Inc. (WEG) has been successfully meeting client objectives since 1993 through economic consulting services for corporations, institutions and governments of the Americas. We have the expertise, high-level contacts, and business alliances to strengthen your competitive positioning in the growing marketplaces of Florida and Latin America.
Our roster of satisfied clients, over the past fourteen years, includes multinational corporations, financial institutions, public entities, and non-profit associations expanding their operations in the Americas.
EXCLUSIVE CONSULTING APPROACH:
Each client is unique to us. We spend considerable time and effort in understanding the operations, goals, and objectives of clients as they seek our consulting and strategic advice. We are not a mass-production consulting entity nor do we accept every project that comes to us. We engage a limited number of clients each year that require customized consulting services in our premier areas of specialization. These premier and exclusive services are headed by former U.S. Under Secretary of Commerce, Dr. J. Antonio Villamil, with over twenty-five years of experience as a business executive and as a senior public official of the U.S. and most recently of Florida.
PREMIER CONSULTING SERVICES:
Comprehensive Corporate Expansion Services. Our seamless and customized service includes site selection analysis, development of incentive strategies and community and governmental relations. Economic Impact Studies highlight the importance of a client's activities in the generation of income, output and employment in the market area serviced by the entity. These studies are also utilized to analyze the impact of public policies on key factors that may affect a client's activities such as tax changes, zoning, environmental permits and others. Strategic Business Development Services. These services are customized to meet client objectives, with particular emphasis in the growing marketplaces of Florida, Mexico, Central and South America. Recent consulting assignments include customized marketing strategies, country risk assessments for investment decisions and corporate spokesperson activities and speeches on behalf of the client at public or private meetings.
For a full description of WEG capabilities and
services, please visit our website at:
www.weg.com
Representative Client List 1993-2008
Public Institutions, Non-Profit Organizations & Universities
- Baptist Health Systems - Jackson Health Systems - Miami-Dade Expressway Authority - Miami-Dade College - Miami Museum of Science - Zoological Society of Florida - Florida International University - University of Miami - Universidad Politécnica de Puerto Rico - Sistema Universitario Ana G. Méndez (SUAGM) - Keiser University - Full Sail Real World Education - Florida Agricultural & Mechanical University (FAMU) - Inter-American Development Bank (IDB) - United Nations Economic Development Program (UNDP) - Florida Ports Council - Florida Sports Foundation - Florida Citrus Mutual - Florida Nursing Homes Alliance - Florida Bankers Association - Florida Outdoor Advertising Association - City of Plantation - City of West Palm Beach - Economic Development Commission of Lee County - Economic Development Commission of Miami-Dade
(Beacon Council) - Economic Development Commission of Mid-Florida - Jacksonville Chamber of Commerce - SW Florida Regional Chamber of Commerce - Enterprise Florida, Inc. - The Beacon Council - Visit Florida - Louisiana Committee for Economic Development - University of South Florida/ENLACE - Space Florida - State of Florida
Florida-Based Corporations
- Sprint of Florida - Florida Marlins - Flo-Sun Sugar Corp. - Farm Stores - The BMI Companies - Spillis Candela & Partners - The Biltmore Hotel/Seaway - Trammel Crow Company - Advantage Capital - WCI Development Companies - Iberia Tiles - Florida Hospital - Mercy Hospital - The St. Joe Companies - Florida Power & Light (FPL) - International Speedway Corporation
Latin America-Based Institutions
- Federation of Inter-American Financial Institutions (FIBAFIN)
- The Brunetta Group of Argentina - Association of Peruvian Banks - Peruvian Management Institute (IPAE) - Mercantil Servicios Financieros, Venezuela - Allied-Domecq, Mexico - Fonalledas Enterprises
Financial Institutions
- International Bank of Miami - Pan American Life - ABN-AMRO Bank - Barclays Bank - Lazard Freres & Co. - Banque Nationale de Paris - HSBC/Marine Midland - Fiduciary Trust International - Sun Trust Corporation - First Union National Bank (Wachovia) - Union Planters Bank of Florida (Regions) - Bank Atlantic Corp. - Hemisphere National Bank - BankUnited, FSB - Mercantil Commercebank N.A. - PointeBank, N.A. - The Equitable/AXA Advisors
Multinational Corporations
- Lockheed Martin - FedEx Latin America - IBM - Motorola - SBC Communications - Ameritech International - Lucent Technologies - MediaOne/AT&T - Joseph E. Seagram & Sons, Inc. (Vivendi) - Microsoft Latin America - Carrier - Medtronic - Phelps Dodge - Esso Inter-America - Visa International - MasterCard International - Telefonica Data Systems - Bureau Veritas (BIVAC) - Merck Latin America - DMJM & Harris - DLA Piper - Wilbur Smith Associates - PBSJ