Building Better Communitites

New Era of Economic Development Downtown

In coming weeks, decisions will be made pertaining to a package of projects that have the capacity to change the face of Miami-Dade County and, perhaps, more importantly, spur a new era of economic development in our urban core.  It is unfortunate that there are a multitude of misconceptions surrounding the construction of a seaport tunnel, a museum complex along Biscayne Bay and a baseball stadium where the Orange Bowl once stood.

 It is tremendously important that we all understand the real facts.  Much has been said about the Global Agreement which was a packaging of these projects for County-City of Miami consideration and approval.  Simply put, it proposes that available funds-monies that cannot be used for other government operations or to lower property taxes-be leveraged to support projects that have been on the drawing board for years.

Myth #1. The public was left out of the process.  Not true.  In 2004 voters overwhelmingly approved many of these projects as part of a General Obligation Bond Program (GOB).  In the case of the baseball stadium, voters approved spending $50 million for repairs to the Orange Bowl.  When costs far exceeded available revenue, and the Hurricanes announced the move to Dolphins Stadium, the City demolished, rather than renovate the facility.  The County Commission held a public hearing and, along with the GOB Citizens' Advisory Committee, approved re-directing bond funds for a new ballpark at the Orange Bowl site.   The tunnel-which has been under discussion for decades--was also part of the GOB referendum, as were new museum buildings.  These projects were approved at an election with the largest voter turnout in Miami-Dade's history and, subsequently, were reviewed repeatedly in public meetings.

Myth #2. Government is footing the bill for special interests at the expense of the community.  The County and City have joined with major league baseball to fund a new ballpark.  However, it is incorrect to portray this effort as a give-away.   While local government will contribute to the cost-and own the building--this facility is an investment in our community.  One of the most important roles of government is to invest in facilities that encourage economic growth and contribute to the quality of life for residents-parks, museums, theaters and sport facilities all fall into this category.  For some, going to the theater is what defines urban life; for others, it's a sporting event.  Certainly, baseball has played this role in cities across the country.  We are investing in a stadium to provide those who enjoy baseball the same opportunity as those who buy tickets to cultural events.   Public-private support for a stadium is consistent with how other localities have built similar facilities.

Myth #3. Capital funds could be used to lower taxes or provide additional services to the needy.  Most of the funding for the capital projects referenced in the Global Agreement is restricted by state law.     These funds, which include primarily tourist taxes, cannot be transferred for other purposes.  Also, the projects are receiving funding from multiple sources.  The cost of the tunnel is estimated at $1 billion with the state paying more than half of the cost.  If we do not use the state funding to improve access to our port, these state dollars will likely fund an alternate project elsewhere.

Myth # 4. Community Redevelopment Agencies (CRA) serving Omni, Overtown/Park West neighborhoods would be short-changed.  One of the biggest beneficiaries of many of the downtown projects is the long neglected Overtown area.  The County and City are joining forces to improve its urban core -a critical factor in encouraging the re-vitalization of adjacent neighborhoods. Expanding the CRA boundaries and extending their lifespan would provide additional dedicated funding for targeted projects in Overtown and other neighborhoods including affordable housing and related infrastructure improvements. None of the CRA funds directly or indirectly are going to support a stadium. 

Myth #5. The timing is wrong with the ongoing economic slowdown and budget constraints.  Nothing could be further from the truth.  Now is precisely the right time. Job losses in our building industries are a serious concern. The downturn in housing has cost South Florida thousands of jobs.  While this market will recover, we need to preserve jobs. Not only will we create employment in the building industry, but improvements, such as the Seaport, support thousands of other jobs.  The future growth of international trade depends on moving goods in and out efficiently-- the tunnel is critical to our ability to do so.  Additionally, a highly competitive marketplace for construction contracts presents cost-savings opportunities as bids come in at lower labor costs.

The Global Agreement is not a single financial package, but rather a series of multi-government, private/public sector initiatives that represent critical investments in our community.   While not everyone may agree on each and every project, this comprehensive plan invests in infrastructure vital to future growth and  prosperity.  And, it comes at a time when our economy needs a jump start.

Written by: Miami-Dade County Manager George Burgess