THE COMPREHENSIVE ECONOMIC DEVELOPMENT IMPACTS OF TOP SPORTS INDUSTRIES AND ACTIVITIES ON THE MIAMI-DADE COUNTY ECONOMY: PHASE I THE ECONOMIC IMPACT OF SUN LIFE STADIUM Prepared for the: The Greater Miami Chamber of Commerce and the South Florida Progress Foundation, Inc. January 4, 2013 2655 LeJeune Road, Suite 608, Coral Gables, Florida 33134 Tel: 305.461.3811- Fax: 305.461.3822 info@weg.com - www.weg.com The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami Dade County Economy TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................................ 1 II. THE ECONOMIC DEVELOPMENT IMPACTS OF SUN LIFE STADIUM AND THE MIAMI DOLPHINS AS THE MAIN USER OF THE STADIUM ON THE MIAMI-DADE COUNTY ECONOMY ................................................................................................................................. 4 A. Externality Benefits of Sun Life Stadium: The Presence of the Stadium and the Teams and Organizations that Utilize the Stadium Provide Benefits to MiamiDade County that go Beyond the Quantification of Economic Impacts ....................... 5 III. THE ECONOMIC IMPACTS OF SUN LIFE STADIUM'S MULTIFACETED EVENTS AND THE MIAMI DOLPHINS ON MIAMI-DADE COUNTY ................................................................ 7 IV. THE ECONOMIC IMPACTS OF SUN LIFE STADIUM ON MIAMI-DADE COUNTY .................. 10 A. Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium on Miami-Dade County ......................................................................... 10 B. Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to Events and Activities at Sun Life Stadium .......................................... 10 C. Annual Fiscal Contributions Attributable to the Activities at Sun Life Stadium ........ 11 V. THE ECONOMIC IMPACTS OF THE MAIN USER OF SUN LIFE STADIUM, THE MIAMI DOLPHINS, ON MIAMI-DADE COUNTY ................................................................................. 12 A. The Annual Economic Impacts Arising from the Operations of the Main User of Sun Life Stadium ......................................................................................................... 12 B. The Annual Economic Impacts Arising from the Visitor Spending Attributable to the Main User of Sun Life Stadium ............................................................................. 12 C. Fiscal Contributions Attributable to the Operations of the Main User of Sun Life Stadium ....................................................................................................................... 14 VI. TOP INDUSTRIES POSITIVELY IMPACTED BY THE OPERATIONS OF BOTH SUN LIFE STADIUM AND THE MIAMI DOLPHINS TEAM ....................................................................... 15 APPENDIX I: METHODOLOGY ........................................................................................................ 17 APPENDIX II: REVIEW OF SUN LIFE STADIUM BY STAFFORD SPORTS. ........................................ 20 APPENDIX III: DEFINITIONS OF ECONOMIC TERMS........................................................................ 34 APPENDIX IV: THE WASHINGTON ECONOMICS GROUP, INC. PROJECT TEAM AND QUALIFICATIONS. ..................................................................................................... 36 i The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami Dade County Economy LIST OF TABLES Table ES-1. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium and the Miami Dolphins ................................................. 2 Table 1. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium and the Miami Dolphins ................................................. 8 Table 2. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium ....................................................................................... 10 Table 3. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to Non-Miami Dolphins Activities at Sun Life Stadium ........ 11 Table 4. Miami-Dade Annual Fiscal Contributions Attributable to the Activities Taking Place at Sun Life Stadium.................................................................................................................................... 11 Table 5. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of the Miami Dolphins Team ......................................................................... 12 Table 6. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to the Miami Dolphins Team ................................................. 13 Table 7. Miami-Dade County Annual Fiscal Contributions Attributable to the Activities of the Miami Dolphins Team .................................................................................................................... 14 Table 8. Miami-Dade County Permanent Jobs Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries .................................................................................................... 15 Table 9. Miami-Dade County Labor Income Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries .................................................................................................... 16 Table 10. Miami-Dade County Value Added Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries .................................................................................................... 16 Table 11. Miami-Dade County Economic Impacts Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries .................................................................................................... 16 ii The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy I. EXECUTIVE SUMMARY ? Sun Life Stadium and the Miami Dolphins as the main user of the Stadium, are top assets of the Entertainment and Visitor cluster of industries in Miami-Dade County. The Team and the Stadium, with the varied activities and events it hosts year-round, generate significant and quantifiable economic impacts for the economy in the form of the generation of employment (jobs), Labor Income, fiscal revenues and overall economic impact. ? The Washington Economics Group, Inc. (WEG) has been retained by the South Florida Progress Foundation to conduct a comprehensive two-phased independent and professional Study quantifying the economic impacts of the Sports Cluster of Industries in Miami-Dade County. The analysis contained herein begins with Phase I: The economic impacts associated with Sun Life Stadium, which also include the Miami Dolphins, the Miami Hurricanes football games and the Orange Bowl activities. Phase I demonstrates the important contributions of the Stadium and the main users of the Stadium to the County, their contributions to public revenues and to the standard of living in Miami-Dade County. ? The Sports Cluster of Industries, which includes professional, non-professional, collegiate and amateur, is a key component of the Entertainment and Visitor cluster of industries. This cluster provides about 110,000 jobs in Miami-Dade County, or an estimated 11 percent of total direct employment. ? Using the IMPLAN Methodology, the Miami Dolphins Team and the Stadium's operational expenditures and out-of-town visitor expenditures for Dolphins games as well as non-Dolphins games, events and activities were used to estimate the direct, indirect and induced impacts of the Team and the Stadium combined. ? Table ES-1 on the next page presents an overall summary of the Total Economic Impacts generated by the visitors to and operations of Sun Life Stadium plus the multifaceted activities and operations of the Miami Dolphins Team operations and visitor expenditures combined. The economic impact of both entities is detailed further in Section III of this Study. The Washington Economics Group, Inc. Page| 1 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Table ES-1. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium and the Miami Dolphins EmploymentFederal, State Total Labor Total Value Impact Permanent & Local Fiscal Economic Income Added Jobs Revenues* Impacts Direct Effect 8,530 $332,733,944 $407,499,443 -- $653,380,397 Indirect Effect 2,184 $108,055,972 $159,552,132 -- $253,590,050 Induced Effect Total Effect 3,789 14,503 $166,630,504 $607,420,420 $290,387,304 $857,438,878 -$200,881,112 $457,940,031 $1,364,910,479 Sources: WEG and The Haas Center for Business Research and Economic Development, UWF. * Fiscal Revenues are the sum of the Fiscal Revenues contained in Table 4 on page 11 and in Table 7 on page 14. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. ? Over 14,000 full-time and part-time jobs for Miami-Dade County residents are supported by Sun Life Stadium and the Miami Dolphins combined, making a valuable contribution to employment opportunities and to the standard of living for County residents. ? These combined impacts also generate more than $607 million in Labor Income annually, providing significant economic benefits to households and residents throughout the County. ? Additionally, Sun Life Stadium, the Miami Dolphins and other main users of the Stadium are estimated to generate a Total Economic Impact of more than $1 billion each year. ? Sun Life Stadium, the sports teams that use the Stadium and other events that take place at the Stadium attract large numbers of visitors to South Florida from around the world and thus, showcase the community. Further, the activities and events that take place year-round at the Stadium support the economic development strategy of Miami-Dade County and the State of Florida by strengthening the targeted Entertainment and Visitor Industries and the entertainment sectors that enhance and solidify Miami-Dade County's comparative advantage within these important industries. ? The presence of the Stadium, the Team and all of the organizations that use the Stadium in Miami are key elements that enhance Miami-Dade County's global brand as a top entertainment and leisure destination for both domestic and international visitors. As such, the overall economic development value of Sun Life Stadium goes beyond the quantification of its important economic impacts. The The Washington Economics Group, Inc. Page| 2 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy overall economic development value of the Stadium is the sum of both the externality benefits to the County and the quantification of economic impacts as detailed in Section IV and Section V of this Study. The combined economic development impacts of the Team and the Stadium are illustrated in the Matrix below. Economic Development Impacts of Sun Life Stadium and the Miami Dolphins to Miami-Dade County Sun Life Stadium and Miami Dolphins Operations and Activities Quantifiable Direct, Indirect and Induced Economic Impacts Employment Impacts Labor Income Impacts Positive Externality Effects Strengthening of Entertainment &Visitor Cluster Fiscal Revenue Impacts Civic Support and Strong Corporate Citizen Improved Quality of Life for Residents Total Economic Development Impacts = Quantifiable Direct, Indirect and Induced Economic Impacts + Positive Externalities ? Appendix II of this Study contains a review and analysis conducted solely by Stafford Sports in conjunction with Positive Impact Management Group. The analysis contained in Appendix II examines the "readiness" of the Sun Life Stadium facility to host future world-class events such as the Super Bowl, collegiate football championships, CONCACAF (Confederation of North, Central American and Caribbean Association Football) matches, FIFA matches, the Pan Am Games and other major sporting events. The Washington Economics Group, Inc. Page| 3 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy II. THE ECONOMIC DEVELOPMENT IMPACTS OF SUN LIFE STADIUM AND THE MIAMI DOLPHINS AS THE MAIN USER OF THE STADIUM ON THE MIAMI-DADE COUNTY ECONOMY The Washington Economics Group (WEG) has been retained to estimate, quantify and present the direct, indirect and induced economic impacts of the main user of the Stadium, Miami Dolphins Team, and the operations, activities and events that take place at Sun Life Stadium, which also includes the impacts associated with the Miami Hurricanes football games and the activities of the Orange Bowl. These direct, indirect and induced impacts of the Team and the Stadium are presented in this Study in terms of jobs by industry type, increases to Labor Income, gross regional product, total economic impact and federal, state and local taxes for Miami-Dade County. This Study also includes an estimation of the direct spending by out-of-town visitors associated with Sun Life Stadium, the Dolphins and the other teams and activities that host events at the Stadium. In addition to the quantifiable impacts of the Dolphins and Sun Life Stadium, the overall economic development value of the Team and the presence of and the activities that take place at the Stadium in Miami-Dade go beyond the quantification of important economic impacts. The economic development value of the Stadium and the Miami Dolphins to Miami-Dade County is the sum of both externality benefits to the County and the quantification of economic impacts as presented in Sections IV and V of this Study. Sun Life Stadium hosts a wide range of events throughout the year, providing significant benefits to the economies and residents of Miami-Dade County. Additionally to hosting the home games of the Miami Dolphins, the University of Miami Hurricanes plays its home football games at the Stadium as well. The Stadium also hosts NFL post-season games and NCAA football championship games, including the Orange Bowl and the BCS National Championship Games. Sun Life Stadium is also a frequent host of the NFL championship game, the Super Bowl. The Stadium has hosted five Super Bowls since its founding as well as the Pro Bowl. The Stadium also hosts other high-profile marquee music and cultural events such as the U2 and Black Eyed Peas concerts, the world-famous Cirque du Soleil and the popular WrestleMania event - the flagship event of the WWE (World Wrestling Entertainment). The region's favorable climate and the wide range of tourist and visitor amenities have made Sun Life The Washington Economics Group, Inc. Page| 4 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Stadium a perennial favorite for hosting these important sporting and entertainment events year-round. The ongoing expenditures associated with the events and activities that occur at the Stadium, plus the Dolphins' daily business operations and activities generate economic impacts that extend beyond those directly related to these Stadium and Team-related activities. These "spillover" or multiplier impacts are the result of each business activity's supply relationships with other firms operating within the South Florida community, the proportion of business value added 1 that accrues to households in the form of labor and capital income, and the propensity of households to spend income on goods produced within Miami-Dade County. A. Externality Benefits of Sun Life Stadium: The Presence of the Stadium and the Teams and Organizations that Utilize the Stadium Provide Benefits to Miami-Dade County that go Beyond the Quantification of Economic Impacts The quantitative analysis section that follows estimates the economic impacts to Miami-Dade County as a result of Sun Life Stadium and the Miami Dolphins' operations and activities. The benefits of having a venue such as Sun Life Stadium in Miami-Dade County yields unquantifiable, but important economic development benefits (what economists term externality benefits that accrue to the whole society) throughout not only the County, but the entire South Florida Region as well. These significant intangible benefits to the County assist in the promotion and reputation of having a vibrant and inviting sports and visitor industry, which supports and attracts both local and global visitors. Sun Life Stadium's presence is a positive force in the attraction of visitors and organizations to the area. The matrix that follows illustrates the externality benefits of having Sun Life Stadium and the teams and organizations that utilize the Stadium in Miami-Dade County (this is in addition to the quantifiable economic impacts that will be examined in Sections IV and V). 1 "Value added" refers to the difference between business revenues and the cost of non-labor and non-capital inputs used to produce goods and/or services. The Washington Economics Group, Inc. Page| 5 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Economic Development Impacts of Sun Life Stadium and the Miami Dolphins to Miami-Dade County Sun Life Stadium and the Miami Dolphins Operations and Activities Quantifiable Direct, Indirect and Induced Economic Impacts Employment Impacts Labor Income Impacts Positive Externality Effects Strengthening of Entertainment & Visitor Cluster Fiscal Revenue Impacts Civic Support and Strong Corporate Citizen Improved Quality of Life for Residents Total Economic Development Impacts = Quantifiable Direct, Indirect and Induced Economic Impacts + Positive Externalities The Washington Economics Group, Inc. Page| 6 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy III. THE ECONOMIC IMPACTS OF SUN LIFE STADIUM'S MULTIFACETED EVENTS AND THE MIAMI DOLPHINS ON MIAMI-DADE COUNTY Sun Life Stadium and the Miami Dolphins generate significant economic impacts in MiamiDade County. These impacts translate into the creation and support of jobs, the generation of increases in Labor Income, contributions to Gross Domestic Product (GDP) or value added and additional fiscal revenues (taxes and fees) paid to state and local governments. As previously described, the Stadium and the Team generate important economic impacts through their operational expenditures and out-of-town visitor expenditures for Dolphins games as well as non-Dolphins games and events. These direct, indirect and induced impacts of the Team and the Stadium are presented in terms of jobs by industry type, increases to Labor Income, gross regional product, total economic impact, and federal, state and local taxes for Miami-Dade County. Utilizing the direct economic impacts discussed above, indirect and induced economic impacts of the operations of the Miami Dolphins plus the Stadium-related operations and activities were calculated using the widely accepted IMPLAN input-output Model of the Miami-Dade County economy. These economic impacts are presented in the form of employment, Labor Income, contributions to GDP, as well as fiscal revenues and Total Economic Impact generated. IMPLAN Methodology 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 increases in 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. The Washington Economics Group, Inc. Page| 7 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy The Minnesota IMPLAN Group, Inc. (MIG) provides the software and basic data needed to formulate the economic multiplier model developed for this Study. MIG has been providing economic multiplier models for regional economic impact analysis since 1985 2. Models developed using IMPLAN software have been widely used by the private-sector and academic economists and by federal, state and local government agencies. The IMPLAN Model for each state is based on the latest US input-output tables as well as income and employment data for Miami-Dade County from the US Department of Commerce. Table 1 below provides an overall summary of the Total Economic Impacts generated by the Miami Dolphins Team operations and visitor expenditures plus Sun Life Stadium operations and visitor expenditures combined. The economic impacts of both entities are detailed further in this Study. Table 1. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium and the Miami Dolphins EmploymentFederal, State Total Labor Total Value Impact Permanent & Local Fiscal Economic Income Added Jobs Revenues* Impacts Direct Effect Indirect Effect Induced Effect Total Effect 8,530 2,184 3,789 14,503 $332,733,944 $108,055,972 $166,630,504 $607,420,420 $407,499,443 $159,552,132 $290,387,304 $857,438,878 ---$200,881,112 $653,380,397 $253,590,050 $457,940,031 $1,364,910,479 Sources: WEG and The Haas Center for Business Research and Economic Development, UWF. * Fiscal Revenues are the sum of the Fiscal Revenues contained in Table 4 on page 11 and in Table 7 on page 14. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. As shown in Table 1 above, Sun Life Stadium and the Stadium's main users such as the Miami Dolphins, the Miami Hurricanes and the Orange Bowl account for a total of 14,503 permanent-equivalent 3 jobs in Miami-Dade. Over half of the total jobs impact (8,530 jobs) is directly related to the operations of Sun Life Stadium and the Dolphins. Of the remaining 5,975 jobs, 2,184 jobs are due to indirect effects and 3,789 are due to induced effects. Thus, Miami-Dade County benefits handsomely from the number of jobs created due to the presence of the Dolphins, the Miami Hurricanes, the Orange Bowl and other activities held at Sun Life Stadium. All together, spending attributable to the Dolphins and other teams and organizations that use the Stadium as well as Sun Life Stadium itself, generates more than $607 million in Labor Income and $857 million in Gross Domestic Product, or total value 2Information 3 on the IMPLAN Group models and the company history can be found at www.mig-inc.com. The term permanent-equivalent jobs is used here to represent the impacts. Models were estimated using payroll data. Therefore, we expect that on any given event day the employment impacts would be substantially higher than they are here. However, on non-event days, the totals should be much lower. Therefore, the jobs impacts essentially assume that the wages paid are spread evenly across the year (as in the case in most industries) yielding an annual equivalent jobs impact. The Washington Economics Group, Inc. Page| 8 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy added. In Table 1 on the previous page, the multiplier effects for each of the categories discussed are listed in addition to the impact of total revenues (taxes and fees) paid to state, local and federal governments. These revenues amount to a total fiscal impact of close to $201 million. The Total Economic Impact of Sun Life Stadium and the main users of the Stadium on the County economy sums to over $1 billion - making a significant and recurring contribution to residents of Miami-Dade. The following section focuses on the economic impacts of Sun Life Stadium and the operations and events that take place at the Stadium. The Washington Economics Group, Inc. Page| 9 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy IV. A. THE ECONOMIC IMPACTS OF SUN LIFE STADIUM ON MIAMI-DADE COUNTY Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium on Miami-Dade County The economic impacts of Sun Life Stadium on Miami-Dade County are presented in Table 2 that follows. In the first column, the direct effect of the Stadium on employment is 1,161 permanent-equivalent jobs. Indirect effects result in an additional 385 jobs and similarly, induced effects produce 394 jobs. Table 2. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of Sun Life Stadium EmploymentFederal, State Labor Total Value Total Economic Impact Permanent & Local Fiscal Income Added Impacts Jobs Revenues Direct Effect 1,161 $28,359,701 $35,949,376 -- $72,460,141 Indirect Effect 385 $17,263,714 $25,227,427 -- $40,997,090 Induced Effect Total Effect 394 1,940 $17,296,895 $62,920,310 $30,150,782 $91,327,586 -$20,698,624 $47,539,039 $160,996,269 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. Summing all multiplier effects for employment comes to a total effect of 1,940 permanent jobs. This generates close to $63 million in Labor Income and a total of more than $91 million in total value added. Revenues to federal, state and local governments as a result of the operations and activities that take place at Sun Life Stadium equal close to $21 million. The Total Economic Impact of the Stadium on the Miami-Dade economy is therefore a solid $161 million. B. Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to Events and Activities at Sun Life Stadium Local residents were removed from the analysis and visitor data was weighted according to conservative estimates about their spending habits and lengths of stay. The results detailed in Table 3 on the next page indicate that 1,861 permanent jobs are directly attributable to visitor spending at non-Dolphins events at Sun Life Stadium. Visitor spending in turn affects 370 indirect jobs and 583 induced jobs. In total, 2,815 permanent-equivalent jobs are a result of visitor spending related to Sun Life Stadium events and activities. The Labor Income generated from these jobs amounted to more than $93 million. Federal, state and local fiscal The Washington Economics Group, Inc. Page| 10 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy revenues also produce an additional $37.5 million of impact to the Miami-Dade economy. Thus, the Total Economic Impact associated with non-Dolphins events and activities at Sun Life Stadium is over $255 million (Table 3). Table 3. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to Non-Miami Dolphins Activities at Sun Life Stadium EmploymentFederal, State Labor Total Value Total Economic Impact Permanent & Local Fiscal Income Added Impacts Jobs Revenues Direct Effect 1,861 $49,744,289 $82,553,824 -- $135,891,613 Indirect Effect 370 $18,285,252 $30,700,420 -- $48,778,710 Induced Effect Total Effect 583 2,815 $25,669,484 $93,699,025 $44,727,154 $157,981,397 -$37,457,969 $70,542,874 $255,213,196 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. C. Annual Fiscal Contributions Attributable to the Activities at Sun Life Stadium Table 4 below highlights the taxes paid to federal, state and local governments due to activities at Sun Life Stadium. Taxes are separated into 5 categories. Employee Compensation generates the largest proportion of federal tax revenues ($16 million). Additionally, Indirect Business Taxes yield over $21 million in state and local tax revenues and are also the largest proportion at this level. The federal, state and local tax revenues sum to over $58 million. This amount plus the $143 million in fiscal revenues generated by the Miami Dolphins Team operations (Table 7, page 14) equates to more than $200 million in total fiscal revenues generated by the Miami Dolphins and Sun Life Stadium combined for Miami-Dade County (See Table 1, page 8). Table 4. Miami-Dade Annual Fiscal Contributions Attributable to the Activities Taking Place at Sun Life Stadium State/Local Taxes Paid By Federal Taxes Total Taxes Taxes Employee Compensation Proprietor Income Indirect Business Tax $16,214,614 $127,327 $16,341,941 $834,928 $0 $834,928 $3,929,894 $21,087,910 $25,017,804 Households $10,251,462 $645,572 $10,897,034 Corporations Total $4,775,716 $36,006,614 $289,170 $22,149,979 $5,064,886 $58,156,593 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. The Washington Economics Group, Inc. Page| 11 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy V. THE ECONOMIC IMPACTS OF THE MAIN USER OF SUN LIFE STADIUM, THE MIAMI DOLPHINS, ON MIAMI-DADE COUNTY A. The Annual Economic Impacts Arising from the Operations of the Main User of Sun Life Stadium The main user of Sun Life Stadium, the Miami Dolphins Team, employs myriad personnel and manages an impressive daily, year-round operation. Additionally, the operational expenses of the Dolphins include everything from the salaries and wages of players, coaches and executives, to parking, broadcasting, and training facility expenses. Table 5 below highlights the economic impacts associated with the operations of the Miami Dolphins Team. Table 5. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from the Operations of the Miami Dolphins Team EmploymentFederal, State Labor Total Value Total Economic Impact Permanent & Local Fiscal Income Added Impacts Jobs Revenues Direct Effect 4,161 $218,660,744 $229,303,043 -- $346,767,839 Indirect Effect 1,161 $59,285,265 $81,425,357 -- $128,543,234 Induced Effect Total Effect 2,390 7,713 $105,102,978 $383,048,988 $183,167,960 $493,896,361 -$115,639,328 $288,849,823 $764,160,896 Sources: WEG and The Haas Center for Business Research and Economic Development, UWF. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. As a result of the Team's daily operations, the Miami Dolphins directly contribute 4,161 permanent-equivalent jobs to the Miami-Dade economy. Associated firms employ 1,161 people as a result of their business with the Dolphins, which is an indirect effect. Induced effects of Dolphins operations lead to 2,390 jobs. In total, the Dolphins support 7,713 permanent jobs for Miami-Dade residents. Table 5 also details the multiplier effects of Labor Income, total value added, and federal, state and local fiscal revenues. By aggregating the impacts of these categories, the Total Economic Impact attributed to the operations of the Miami Dolphins Team is over $764 million for Miami-Dade County. B. The Annual Economic Impacts Arising from the Visitor Spending Attributable to the Main User of Sun Life Stadium The visitor spending attributable to the Miami Dolphins Team comprises an important element of the overall economic impact of the Miami Dolphins. For purposes of this analysis, visitors are defined as day travelers from Palm Beach County, travelers from any other region in Florida (besides Miami-Dade and Broward Counties) and visitors traveling from The Washington Economics Group, Inc. Page| 12 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy out of the State of Florida. Spending was parsed into 5 categories: lodging, meals, transportation, entertainment and shopping. Inputs were weighted depending upon length of stay (in days) as a result of originating location (Palm Beach, other areas of Florida, and out of State) and spending per day among these 5 categories. For example, Palm Beach County residents were assumed to stay a total of 1 day in the area and spend money on meals alone. Visitors from other regions in Florida were assumed to spend 1 day in the area as well, but were also expected to spend money on lodging, meals, transportation, entertainment and shopping. Out of State visitor spending included these same expenditures with the added stay of 1 night for a total of 2 nights. Visitor expenditure data was provided by the Greater Miami Convention and Visitors Bureau. The data was also based upon 2011 percentages of the visitor types previously defined and was assumed to represent a typical year. Under these assumptions, visitor spending inputs were calculated and then run through the IMPLAN model. Table 6 below highlights the economic impacts due to the visitor spending attributable to Miami Dolphins operations and events. Table 6. Summary of the Miami-Dade County Total Annually Recurring Economic Impacts Arising from Visitor Spending Attributable to the Miami Dolphins Team EmploymentFederal, State Labor Total Value Total Economic Impact Permanent & Local Fiscal Income Added Impacts Jobs Revenues Direct Effect 1,346 $35,969,209 $59,693,200 -- $98,260,805 Indirect Effect 268 $13,221,740 $22,198,927 -- $35,271,016 Induced Effect Total Effect 422 2,035 $18,561,147 $67,752,096 $32,341,408 $114,233,535 -$27,085,191 $51,008,296 $184,540,117 Sources: WEG and The Haas Center for Business Research and Economic Development, UWF. Note: Definitions of Economic Terms (Direct, Indirect and Induced Effects) can be found in Appendix III. It is important to note that local residents were removed from the analysis under the assumption that local residents would inject money into the regional economy regardless of whether or not they attend Dolphins football games. In Table 6 above, multiplier effects are listed for employment, Labor Income and total value added. As shown, the direct effects of visitor spending resulted in 1,346 permanent-equivalent jobs, 268 indirect jobs and 422 induced jobs. The total effect on Labor Income was almost $68 million and the total valueadded impact was over $114 million. Additionally, federal, state and local fiscal revenues added another $27 million of impact. The overall economic impact of visitor spending attributable to the Miami Dolphins is estimated to be almost $185 million for Miami-Dade County. The Washington Economics Group, Inc. Page| 13 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy C. Fiscal Contributions Attributable to the Operations of the Main User of Sun Life Stadium Federal, state and local fiscal revenues are itemized by category and divided according to federal, state and local taxes as shown in Table 7 below. For example, Employee Compensation accounts for the largest proportion of taxes to the federal government, while Indirect Business Taxes account for the largest proportion of taxes to state and local government entities. The total amount of taxes paid resulting from Dolphins Team activities is approximately $143 million. This amount plus the $58 million in fiscal revenues generated by the Stadium activities and operations (Table 4, page 11) equates to more than $200 million in total fiscal revenues generated by the Miami Dolphins and Sun Life Stadium combined (See Table 1, page 8). Table 7. Miami-Dade County Annual Fiscal Contributions Attributable to the Activities of the Miami Dolphins Team State/Local Taxes Paid By Federal Taxes Total Taxes Taxes Employee Compensation $46,744,196 $367,066 $47,111,262 Proprietor Income 2,374,862 $0 $2,374,862 Indirect Business Tax 8,507,218 $45,649,935 $54,157,153 Households 29,501,558 $1,857,820 $31,359,378 Corporations TOTAL 7,280,999 $94,408,833 $440,865 $48,315,686 $7,721,864 $142,724,519 Sources: WEG and The Haas Center for Business Research and Economic Development, UWF. The Washington Economics Group, Inc. Page| 14 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy VI. TOP INDUSTRIES POSITIVELY IMPACTED BY THE OPERATIONS OF BOTH SUN LIFE STADIUM AND THE MIAMI DOLPHINS TEAM This final section and tables - Table 8 through Table 11 that follow - list the top ten industries in Miami-Dade that are positively impacted by the operations of both Sun Life Stadium and the Miami Dolphins. The tables are ordered beginning with jobs supported, followed by Labor Income, value added and overall Total Economic Impact. In Table 8 below, it comes as no surprise that "spectator sports companies" is at the top of the list for number of jobs supported. It is also not surprising that subsequent tables list spectator sports companies as the top industry positively affected by the Miami Dolphins Team and Stadium operations. Table 8. Miami-Dade County Permanent Jobs Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries Industry Jobs Supported Spectator sports companies Promoters of performing arts and sports and agents for public figures Food services and drinking places Hotels and motels, including casino hotels Transit and ground passenger transportation Other amusement and recreation industries Retail Stores - Clothing and clothing accessories Real estate establishments Offices of physicians, dentists, and other health practitioners Private hospitals 2,963 2,856 1,467 777 681 531 371 328 232 209 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. The magnitude of industries in one impact category, such as employment, tends to coincide with other categories for the same industries. Accordingly, the top 4 industries listed in all 4 tables are the same: Spectator sports companies, Promoters of performing arts and sports and agents for public figures, Food services and drinking places and Hotels and motels, including casino hotels. The general industry sectors most affected include sports-related services, food and beverage, lodging, transportation and entertainment. The Retail and Wholesale Trade sectors are also important, but are not represented in all tables. Interestingly--though not unreasonable--healthcare industries (private hospitals) are included in these top 10 lists. Perhaps more interesting is the range of values presented in each of the tables. The top 2 industries have a much greater impact than the remaining 8 industries. Therefore, the spectator sports companies, promoters and agents are the source of the greatest impacts on the regional economy, far greater than those further down the list. The Washington Economics Group, Inc. Page| 15 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Table 9. Miami-Dade County Labor Income Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries Industry Labor Income Spectator sports companies Promoters of performing arts and sports and agents for public figures Food services and drinking places Hotels and motels, including casino hotels Transit and ground passenger transportation Private hospitals Offices of physicians, dentists, and other health practitioners Other amusement and recreation industries Non-depository credit intermediation and related activities Retail Stores - Clothing and clothing accessories $201,874,753 $68,116,190 $37,208,574 $27,982,772 $16,177,485 $14,632,682 $13,967,518 $10,262,185 $10,065,967 $9,748,749 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. Table 10. Miami-Dade County Value Added Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries Industry Value Added Spectator sports companies Promoters of performing arts and sports and agents for public figures Food services and drinking places Hotels and motels, including casino hotels Real estate establishments Imputed rental activity for owner-occupied dwellings Transit and ground passenger transportation Other amusement and recreation industries Wholesale trade businesses Private hospitals $206,550,384 $80,575,698 $54,408,195 $52,407,671 $45,237,838 $43,243,039 $23,200,985 $21,783,125 $17,155,383 $15,821,835 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. Table 11. Miami-Dade County Economic Impacts Attributable to the Miami Dolphins and Sun Life Stadium in the Top 10 Industries Industry Impact Spectator sports companies Promoters of performing arts and sports and agents for public figures Food services and drinking places Hotels and motels, including casino hotels Real estate establishments Imputed rental activity for owner-occupied dwellings Other amusement and recreation industries Transit and ground passenger transportation Private hospitals Monetary authorities and depository credit intermediation activities $285,318,116 $169,869,692 $94,233,258 $89,683,551 $51,817,916 $49,083,468 $36,097,747 $30,170,180 $28,558,528 $26,836,672 Source: WEG and The Haas Center for Business Research and Economic Development, UWF. The Washington Economics Group, Inc. Page| 16 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy APPENDIX I: METHODOLOGY The Washington Economics Group, Inc. Page| 17 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy IMPLAN Model 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. 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 total quantitative economic contribution of these activities, therefore, is comprised of a direct effect, and indirect effect and an induced effect. The following represents the system of equations that comprise the regional economy in an extended input-output model like IMPLAN: x1 = a11 x1 + a12 x2 + a13 x3 + ? + a1k xk + a1h xh + a1i xi + f1 x2 = a21 x1 + a22 x2 + a23 x3 + ? + a2 k xk + a2 h xh + a2 I xI + f 2 x3 = a31 x1 + a32 x2 + a33 x3 + ? + a3k xk + a3h xh + a3i xi + f 3 ? xk = ak1 x1 + ak 2 x2 + ak 3 x3 + ? + akk xk + akh xh + aki xi + f k xh = ah1 x1 + ah 2 x2 + ah 3 xh + ? + ahk xk + ahh xh + ahi xi + f h xi = ai1 x1 + ai 2 x2 + ai 3 xh + ? + aik xk + aih xh + aii xi + f i The Washington Economics Group, Inc. Page| 18 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy The variables x1 to xk represent total production of output in each industry. The coefficients 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 = ( I - A) -1 F 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 domestic 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 the expansion of an existing economic activity. The Washington Economics Group, Inc. Page| 19 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy APPENDIX II: REVIEW OF SUN LIFE STADIUM BY STAFFORD SPORTS The Washington Economics Group, Inc. Page| 20 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Stafford Sports, in conjunction with Positive Impact Management Group, conducted a preliminary assessment of the facility readiness of Sun Life Stadium to host the world's most prestigious events such as the Super Bowl, Collegiate Football Championships, CONCACAF (Confederation of North, Central American and Caribbean Association Football) matches, FIFA (International Federation of Association Football) matches, the Pan Am Games and other major sporting events. The Stafford Sports Team used a comprehensive approach for this assignment that included: o An on-site review and ?meetings to better understand the current amenities, infrastructure and operation of Sun Life Stadium o A review of major events which could be hosted by South Florida in the Stadium o The national competitive environment among cities and stadiums that are competing for major events For this assignment, our team conducted a cursory review of the Stadium, from patron amenities to venue infrastructure. The analysis considers the overall experience for both patrons and tenants, including donors, alumni and students of the University of Miami football program, as well as season ticket holders, individual fans and other stakeholders that attend Miami Dolphins games. Ultimately, a successful stadium should create an environment that serves all stakeholders, including its anchor tenants, the residents of the region and the organizers and fans of coveted world-class events. In conjunction with this analysis, the Stafford Sports Team conducted a walk-through of Sun Life Stadium in order to focus on available patron services, fan amenities and supporting infrastructure. As part of this assignment, our Team conducted interviews with designers and operators of selected new or proposed NFL stadiums and performed additional research regarding these venues in order to assess the competitive landscape for stadium events. Prior to this assignment, Team members had also visited these benchmarked stadiums. A. Review of Sun Life Stadium Sun Life Stadium, now 25 years old, opened in 1987 at a cost of $115 million, which was entirely privately funded. The Stadium was designed and built to accommodate multiple tenants. Like other venues of its time that hosted multiple sports, the design of the Stadium was compromised in order to accommodate two professional sports tenants (NFL and MLB), as well as international soccer. The Stadium was the first in the United States to be designed to meet the requirements of all three sports. Seating configurations were designed to accommodate the playing dimensions of both sports and international soccer matches. As a result of the baseball configuration and the requirements of the international soccer pitch, seats in the lower bowl were located farther from the playing field than The Washington Economics Group, Inc. Page| 21 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy what is the industry standard of today. Seating was designed to accommodate more general admission seats, with 34,000 (or 44%) of the Stadium's approximately 75,000 seats located in the upper bowl, even farther away from the field. The design and construction of the Stadium at the time of construction did not account for changing tastes and lifestyles. This is exemplified by the food and beverage operation, as the entire Stadium is serviced by only one full-service kitchen. This lack of multiple kitchens and concession stands with limited cooking capabilities restricts food and beverage offerings and choices, with a large portion of the food at the Stadium cooked and prepped at offsite locations. The Stadium's design also did not anticipate the requirements of future events and there are limitations in the design and number of loading docks. There was a significant upgrade of $225 million that was privately funded in 2005. Subsequent to the renovation of the stadium, current ownership has estimated that it has spent approximately $10 million annually (or approximately $40 million) in additional improvements and upgrades to premium spaces and other fan amenities. As seen in Table I, Sun Life Stadium remains in need of major infrastructure upgrades. Given weather conditions in South Florida, the fan experience can be impacted by heat and rain. Unlike the majority of enclosed NFL stadiums in warm-weather markets like Atlanta, Houston, New Orleans, Dallas and Phoenix, Sun Life Stadium has neither a roof or canopy system to protect its guests from the elements. By adding a canopy, Sun Life Stadium would be more competitive with these NFL stadiums and would provide a point of differentiation from Florida-based stadiums in Tampa Bay, Jacksonville and Orlando that also host collegiate games. Tampa Bay has a newer stadium with the type and quantity of amenities that major events are currently looking for. Raymond James Stadium in Tampa Bay is a viable competitor in the southeast and if improvements are not made to Sun Life Stadium, it will be difficult to compete with the Tampa Bay market for national events. One of the strategies that today's professional and collegiate stadiums employ to create the best possible fan experience is to offer a high quality, comfortable oversized seat. In contrast, much of the seating in Sun Life Stadium is original to the 1987 construction period with narrow seat widths and lack of lumbar support. Part of the strategy to create a more positive experience would be to explore moving seats closer to the playing field. This could be done by developing a new lower seating bowl that would optimize the sightlines for football, soccer and concert events. In the upper deck, any changes to the upper seating bowl should be redesigned to provide flexible capacity. This can be done through the addition of flexible seating in the upper deck that features a modular convertible seating system that can meet the capacity requirements of major events such as the Super Bowl, the World Cup, major collegiate championships and other world class events. Lighting at the Stadium is also nearing the end of its useful life. While the Stadium has installed additional lighting to meet the basic requirements for an NFL HD broadcast, this lighting is still considered sub-standard. Both lighting and the existing sound systems would need to be upgraded and integrated into any renovation project. Security systems also need to be enhanced to meet the standards and requirements of modem stadiums. Most of the mechanical, electrical and plumbing are original to the construction of the Stadium and a significant investment will need to be made to upgrade these systems in order to preserve the Stadium for an appreciable period of time. The Washington Economics Group, Inc. Page| 22 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Table I. Sun Life Stadium 75,235 60,886 31* Capacity NFL Attendance Avg. Attendance Rank (32 NFL teams) $340,000,000 ($115mm in 1987;$225mm in 2005) grass Construction Cost Turf none 1987 supplemental lighting required to meet NFL broadcast requirements Roof System Seating Systems Sports Lighting requires upgrade Sound/PA System Requires upgrade; some systems original to 1987 ongoing upgrades by team some areas may need upgrade MEP Systems IT/Telecom Security Systems *Wall Street Journal- 2011 NFL Season As seen in Table II, there are other infrastructure areas that do not meet the standards of professional sports and collegiate stadiums. Although the Stadium possesses adequate operational areas such as game day operations spaces and locations for trades personnel, locations used for tenants and external events such as green rooms, production offices and storage should be upgraded. Storage may need to be supplemented to accommodate the needs of two tenant teams, multiple soccer matches and external events such as concerts. The Stadium also has inadequate loading dock facilities, given the requirements of today's stadium events and the increased size and complexity of television broadcast trucks. Table II. FACILITY OPERATIONS Command Center/Security Control Rooms Game Day Operations Rooms Entertainment/Green Rooms Ticketing Control Marshalling/Staging Areas Storage (in -season and off-season) Loading Docks/Trash/Recycling Facilities for Broadcast TV Trucks Sun Life Stadium yes yes needs upgrades over time yes yes needs to be supplemented inadequate- upgrades needed upgrades needed Table III summarizes the spaces dedicated for media operations. Current media facilities include a working press box with separate areas for television and radio broadcast teams and the print media. There is also a press lounge, workroom space and a press conference room. All of these spaces have The Washington Economics Group, Inc. Page| 23 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy been previously renovated by ownership. The media press box that is located in the comer of the stadium behind the former baseball home plate is not typical of other stadiums and requires modernization and/or relocation to a more central location. Conference and communications rooms also require upgrades. The area used by home and visiting coaches for post-game press conferences is located at the event level of the Stadium and is smaller than a number of NFL stadiums. Newer NFL stadiums have programmed an open viewing area within a VIP lounge where ticket holders can view the actual press conference while it is in progress. As plans are developed to add new video and streaming technology (e.g., recently-launched Wi-Fi), a new control room may need to be added. Video board upgrades should also be considered, as the two video screens at Sun Life Stadium use dated technology. Table III. MEDIA FACILITIES Sun life Stadium needs to be relocated to center location Press Box (tv, radio, print) Press Work Room renovated by team Press Conference Room renovated by team Press Lounge renovated by team needs to be upgraded Broadcast Control Room As seen in Table IV, the team spaces for the Dolphins franchise have all been renovated by ownership and are in line with other NFL Stadiums. One of the locker rooms is currently provided to the University of Miami for their team use on game days. Improvements should look to address branding opportunities for the University. This could be done by addressing the locker room, the adjacent hallway, and throughout key pedestrian spaces in the Stadium. This will help the University with recruiting and donor retention, since the football program is forced to compete against other ACC programs with their own on-campus stadiums. Table IV. TEAM SPACES Sun life Stadium locker Rooms renovated by team Team Training Space renovated by team GM/Team Boxes renovated by team Team/Executive Offices renovated by team Table V addresses current fan amenities at Sun Life Stadium. Most notably, the infrastructure to support the food and beverage operation is not comparable with newer NFL stadiums. These stadiums feature a broad array of food and beverage offerings through specialty and general concession stands, restaurants and bars. Upscale catering and in-seat service is provided to suites, club seats and premium lounges. These stadiums support the requirements of this large-scale food and beverage operation with multiple full-service kitchens and commissaries. In contrast, Sun Life Stadium has one full service kitchen. Food that is currently prepared in the kitchen and off-site The Washington Economics Group, Inc. Page| 24 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy locations must be transported and held in warming pantries before serving. Some concession stands appear dated in comparison with the capabilities of modem food and beverage operations in stadiums that have open air cooking capabilities. As part of improvements, any upgrade of the kitchen and concessions operation will require an investment in MEP systems. Table V. FAN AMENITIES Retail Store Merchandising Stands Restaurants/lounges- General Public Concession Stands Service Kitchens Museum/Hall of Fame Sun Life Stadium Retail stores at ground level and club level two stands added by team multiple limited frying/cooking facilities one full service kitchen for entire stadium updated by team Scoreboards old technology 50' x 140' and 50' x 100' (end zones) TV Monitors some analog tv's Suites # Premium/Club Seats 174 10,209 Based on our review, the following improvements should be incorporated into any plan that is developed for improving Sun Life Stadium: o o o o o o o o o o o o o A canopy or enclosed roof structure to protect fans and sponsors from heat and inclement weather Enhancement/replacement of lighting and sound systems Installation of new technology including video boards and broadcast control room Creation of flexible, infill seating in areas of the upper seating bowl that would reduce capacity for regular events and increase capacity for major events such as the Super Bowl Replacement of seating systems in the lower bowl that would bring patrons closer to the field Upgrades to MEP systems Upgraded and/or new suites, lounges and premium spaces Enhanced concessions and catering operations to service patrons with new service kitchens and warming pantries Upgraded press box and media work spaces to accommodate national and international press Improved areas to accommodate temporary broadcast locations Upgraded parking and power requirements for television production trucks Branding of dedicated spaces for the University of Miami Identification of flexible spaces that can be constructed to accommodate mega events such as the Super Bowl Halftime Show The Washington Economics Group, Inc. Page| 25 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy The intent of any improvements should be to provide patrons and other stakeholders with more enhanced amenities and create an environment in line with a number of NFL Stadiums, improving Sun Life Stadium's current status as one of the oldest and least impressive stadiums in the league. These upgrades would also significantly improve the status of the Stadium in attracting major international soccer events - quite possibly enhancing its reputation and become the top soccer venue in the Americas. B. Event Opportunities for an Improved Sun Life Stadium The Super Bowl The NFL typically rotates the Super Bowl among geographic regions of the country. In 2013, the Super Bowl will take place in New Orleans (Mercedes-Benz Superdome), in 2014 in New York (MetLife Stadium), in 2015 in Phoenix (University of Phoenix Stadium). As seen in Table VI, the Miami area has hosted the Super Bowl on a rotation of approximately every 4.5 years, with Sun Life Stadium hosting 5 Super Bowls since 1989: City/Region Table VI. Super Bowl Host Cities/Regions Through 2015 # Hosted Years Hosted Miami Area* 10 1968,1969,1971,1976,1979,1989,1995,1999,2007,2010 New Orleans 10 1970,1972,1975,1978,1981,1986,1990,1997,2002,2013 Greater Los Angeles Area 7 1967,1973,1977,1980,1983,1987,1993 Tampa Bay Area 4 1984,1991,2001,2009 San Diego 3 1988,1998,2003 Phoenix Area 3 1996,2008,2015 Houston 2 1974,2004 Metro Detroit 2 1982,2006 Atlanta 2 1994,2000 Minneapolis-Saint Paul 1 1992 Jacksonville 1 2005 San Francisco Bay Area Dallas-Fort Worth Metroplex 1 1985 1 2011 New York Metro Area 1 2014 Indianapolis 1 2012 *initial 5 Super Bowls held at Orange Bowl, last 5 Super Bowls at Sun Life Stadium The Washington Economics Group, Inc. Page| 26 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy In 2016 (the next year to be awarded), the NFL has identified Sun Life Stadium as one of the two venues that could host the 50th anniversary Super Bowl game. South Florida will be competing for this award against the newest, state-of-the-art NFL venue, 49ers Stadium, which will open for the 2014-15 season. If South Florida is not awarded the Super Bowl in 2016, the NFL has also identified Sun Life Stadium as one of the potential hosts for the following year. In 2017, South Florida would compete against Houston (Reliant Stadium) to host the Super Bowl. Reliant Stadium hosted the 2004 Super Bowl, was constructed in 2002 and recently announced approved plans to install the NFL's largest instadium video boards. In addition to 2016 and 2017, it is likely that competition for future Super Bowls will remain stiff, with a number of capable communities vying for the Big Game as part of a challenging competitive landscape (e.g., Atlanta, Dallas, New Orleans, Houston, San Francisco, Indianapolis, Tampa Bay, New York/New Jersey, and Minneapolis (I). The addition of new cities would likely further decrease, or even eliminates, Miami's chances of hosting the Super Bowl. It would likely put Miami in a rotation of hosting this prestigious event every 8-10 years from the current average of 4.5 years. (I) Although the weather in Minneapolis is not conducive to the City being added to the Super Bowl "rotation," the construction of a new NFL stadium is usually rewarded with a Super Bowl by the NFL (e.g., New York, Indianapolis, Detroit, etc.) Collegiate Championship Events As part of the new BCS format, Sun Life Stadium is scheduled to serve as the host venue for the Orange Bowl for the next 14 years. In addition, there are other major collegiate events that Sun Life Stadium could host in the future, including the coveted BCS playoff and championship games. The BCS Commissioners and the Presidential Oversight Committee will enter into a bid process for the first BCS National Championship Game of the new formal, which will take place in January 2015. The selection of the site for the annual championship game will be similar to the Super Bowl, with a site chosen from a number of cities that will bid on hosting the game. Although Sun Life Stadium will continue to host the Orange Bowl, it will also be able to bid on the National Championship Game. However, a number of cities that have expressed interest in the hosting the championship game (e.g., Dallas) have new or updated professional football or collegiate stadiums, making the process extremely competitive. The ACC Football Championship is another major event that could be hosted by the Stadium. The Conference's Championship Game has rotated among sites including NFL stadiums in Charlotte, Jacksonville and Tampa. If an enclosed roof were added to the Stadium as part of an improvements program, it would allow Miami to bid for the NCAA Men's Basketball Championship Game, which has rotated among The Washington Economics Group, Inc. Page| 27 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy a handful of NFL stadiums. Along with a domed stadium in Atlanta, Sun Life Stadium would be one of only two stadiums in the eastern United States that would be capable of hosting a Final Four. The NCAA gives strong consideration to seating capacity and an improved Sun Life Stadium with an enclosed roof would likely meet the seating requirements for this event. However, the lack of a climate control system (Heat and Air Conditioning) could preclude the Stadium from consideration. International Soccer Events & Pan Am Games Based on the vision of Joe Robbie, Sun Life Stadium, when built 25 years ago, was designed to be one of the leading soccer venues in the United States. The vision of using the Stadium to host soccer (or futbol) was compromised by the need to accommodate other professional sports (football and baseball). Despite a lower seating bowl that placed fans far away from the soccer pitch due to the need to accommodate a baseball configuration, Miami was selected as an integral part of the United States bid for the 1994 FIFA World Cup and was considered to be a logical location for the final match. Ultimately, however, the inability to find a solution that could accommodate the MLB schedule precluded the Stadium from hosting any World Cup matches. Although the United States lost the bid to host the 2022 World Cup, Sun Life Stadium was again considered as a venue to host one or more matches. One challenge faced by Sun Life Stadium in hosting international soccer matches is the lack of protection of patrons from the rain and sun. Improvements should recognize the popularity of soccer to the residents of Miami and the greater South Florida region as well as to national and international visitors. Miami's wet season coincides with the time period when international clubs would tour the United States. Any improvements should look to addresses the overall experience for soccer fans while continuing to position the stadium as one of the premier venues in the United States as well as the Western Hemisphere. If a canopy were added that protected fans from either rain or heat (or both), Sun Life Stadium would be able to host matches during the key months of January, June, July and August when international clubs travel to the United States. Any re-design of seating in the lower seating bowl should contemplate moving sightlines closer to the soccer pitch. These changes, along with other recommended improvements such as addition of new technology and upgraded fan amenities, would make the Stadium one of the most attractive venues for international matches in the country and put Miami in play for international tournaments such as the Pan American Games, Cope America, and the CONCACAF Gold Cup. The Stadium is planning to bring international soccer matches to Miami through the World Football Challenge, which is anticipated to generate attendance of 50,000 or more-per match. With implementation of the recommended improvements, international soccer events could even surpass annual attendance numbers generated by current tenants, thus making Miami and Sun Life Stadium one the premier soccer locations in the Americas. The ability to host top-flight international soccer matches would generate a significant increase in out of market visitors, spending and revenue. Soccer therefore should be the sport and audience that is targeted to replace the design impact that baseball had at the Stadium. Baseball-associated features need to be removed in order for the Stadium to attract international soccer at the highest level. The Washington Economics Group, Inc. Page| 28 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy Other National and International Events An improved Sun Life Stadium would be able to host a variety of high profile national and international events that would attract spending from out of market visitors. These events could range from collegiate football and basketball, to international soccer matches such as the CONCACAF Gold Cup and a semifinal or final site as part of future United States bid for the World Cup. An improved Sun Life Stadium would also serve as a major venue if Miami chose to bid for the Pan Am Games. With these recommended improvements, the Stadium could host additional sporting events like cricket, motorsports competitions, special entertainment events like Wrestlemania as well as festivals and other events that require a large venue footprint. C. Trends in New NFL Stadiums Sun Life Stadium will be competing against the newest NFL stadiums for high-profile events such as the Super Bowl and the BCS Championship. Like Sun Life Stadium, the newest NFL stadiums will look to host the finals or semi-finals of the CONCACAF Gold Cup and the World Cup if the United States is awarded the rights in a future bid. NFL stadiums also compete for the handful of highprofile concert artists that typically play stadiums and these artists are able to selectively choose which venues to play. The newest NFL stadiums were designed to be state-of-the-art, to accommodate multiple tenants and to attract high-profile events like the Super Bowl, the BCS Championship Game and the NCAA Final Four. These stadiums were developed with a focus on maximizing revenue streams while offering fan amenities not found in older NFL stadiums. As seen in Table VIII below, the cost of the newest NFL stadiums is significantly higher than the initial construction and cost of renovation for Sun Life Stadium. Comparative Costs New NFL Stadiums (Table VIII) (*) Stadium Cost MetLife $1,600,000,000 $1,200,000,000 New 49ers Stadium $1,200,000,000 Farmer's Field (est.) $1,200,000,000 New Atlanta Stadium (est.) $1,150,000,000 Cowboys Stadium Lucas Oil Stadium $ 720,000,000 $ 340,000,000 Sun Life Stadium** * Costs for stadiums are not adjusted for inflation **Spending to date since opening in 1987 The Washington Economics Group, Inc. Page| 29 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy As part of this report, the Stafford Sports team has developed a comparative overview (Attachment A) of fan amenities and infrastructure elements in these new NFL venues in comparison with Sun Life Stadium. The Stafford Sports Team interviewed designers or management of these new stadiums to understand trends that should be considered in the improvement of Sun Life Stadium. During these interviews, Stafford found that these venues were designed to have maximum flexibility to attract events, incorporated the latest cutting edge technology, offered a breadth of fan amenities and were designed to accommodate future industry trends. Input from those interviewed indicated that: o The newest stadiums are being designed to accommodate the needs of an NFL franchise, the bid requirements of major events like the Super Bowl and the NCAA Final Four. The design also anticipates the bid specs for major events like the BCS Championship Game and the World Cup. o Sun Life Stadium serves as the home to the University of Miami, a major collegiate football program that provides economic impact and major media exposure. The University's football program and its fans should be taken into consideration when considering the needs of the Stadium. o Climate control of the entire stadium is necessary to being considered for some major events. The ability to have climate control for the entire venue is the starting point for consideration for events such as the NCAA Final Four. o Stadiums are being designed with an infrastructure that can accommodate future needs. Mechanical, electrical and plumbing systems are designed to handle capacities beyond current levels. Most stadiums have added even more power to accommodate both future technology and the needs of major events and concerts. o Technology is transforming the NFL in-stadium experience. The newest in-stadium video boards are designed to replicate an in-home experience and include 12mm technology video boards. Greater video resolution is likely in the future. In-stadium video screens will provide fans at all events with additional content. Throughout the concourses, more interactive stations and displays are being programmed so that fans spend more time before and after events at these venues. The newest NFL stadiums have become an all-encompassing entertainment destination. o The food and beverage experience for all fans throughout the stadium is designed to replicate what can be found in upscale restaurants. The newest trend in fan amenities is to provide concessions stands that are accessible on all four sides, have up to 25-30 points of sale per stand and are ventilated to maximize on-site fresh cooking. Specialty stands that feature a particular cuisine (Latin American, Barbeque, Wood Fired Pizza, Asian, etc.) are intermingled with general concession stands to offer fans as many choices as possible. Bars are uniquely themed and have enough points of sale to eliminate long lines. The Washington Economics Group, Inc. Page| 30 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy o The food and beverage options for VIP and VVIP customers have become more elaborate. Premium seat holders have multiple fine-dining choices that are served at multiple stations by on-site chefs that provide a unique, one of a kind experience. Selected sections of stadiums are programmed to provide an 'all you can eat' high- end food experience as part of premium seating pricing. o Party decks in the upper end zones have been constructed to provide fans in the upper bowl with a more festive atmosphere that includes restaurants and bars. o To support the requirements of multiple restaurants, bars, concession stands and portable stands, stadiums are being designed with several full-service kitchens and large warming pantries located throughout multiple levels of the stadium. o New stadiums include multiple options for vertical transportation to ensure operational efficiency. These include dedicated elevators and escalators to multiple concourses to move fans, deliver product and create efficiencies for various stadium departments such as food and beverage, merchandise, housekeeping and operations. o Stadiums are increasingly designed to accommodate the business needs of sponsors that provide fans with additional interactive experiences. In addition to a naming rights partner that is integrated throughout the stadium, the newest venues provide sponsors with exclusive quadrants to give founding partners and high-level sponsors unique presence and visibility. This allows the sponsor to display its newest products or technology while interacting with fans and clients. o Suites and premium spaces are designed in new NFL Stadiums to cater specifically to major events like the Super Bowl, the Men's NCAA Final Four and the forthcoming BCS Championship Game. These events have specific requirements for the number and type of premium areas. o The newest stadiums have designed flexibility in their suites to address future changes in the marketplace. Suites are designed with larger bays to accommodate suites of different sizes. Suites and club seats are flexible in design and can be changed to a different type of premium product in the future. o The newest stadiums continue to ramp up the VIP and VVIP experience for their fans by offering upscale suites, club seats and lounges, high end catering, personalized in-seat wait service, access to unique amenities. o The highest end premium customers have access to one of a kind VVIP experiences. There are bunker suites or boxes at field level, a view of the athlete's entry to and from the locker room and a view of post-game press conferences from an exclusive lounge. The Washington Economics Group, Inc. Page| 31 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy D. Conclusions The newest NFL stadiums cost more than $1 billion dollars and are designed to provide the customer amenities and infrastructure for the highest presentation of NFL games. These stadiums have also been designed to accommodate the bid specifications of major events such as the Super Bowl, the BCS Championship Game, the NCAA Final Four and the CONCACAF Gold Cup, and will continue to compete with Sun Life Stadium for these high profile events, which are designed to generate maximum economic impact to the community. Given the competitive nature of the bidding process, venues generate no revenue from these events and, in fact, lose money. However, the economic impact from out of town visitors spending in hotels, restaurants and retail establishments makes these major events highly desirable for their communities. The opportunity for South Florida to continue to compete for major events will be predicated on the implementation of improvements to Sun Life Stadium. The improvements recommended by the Stafford Sports Team could range from $325 mm to $425 mm and will require further refinement as an improvements plan is developed. The cost of these improvements would be at a minimum, one third (1/3rd) of the cost of a new stadium to accommodate both an NFL tenant and a BCS tenant. The cost of improvements would not include the addition of a roof structure and an HVAC system to condition the venue. An additional budget would be required if this critical feature were to be included in the next phase. For Sun Life Stadium, the cost to date of initial construction, additional renovation and recent annual investment costs is approximately $425mm - $525mm, which remains significantly below what the public sector and private sector have invested in new stadiums. Due to the various factors outlined in this document - many of which relate to the age and multipurpose design of the facility - Sun Life Stadium would need to undergo a modernization in order to achieve the amenities and infrastructure levels of an average NFL stadium and allow the region to compete for major events. The impact of major national and international events to a community and region is significant. Indianapolis, which successfully hosted the 2012 Super Bowl, realized a total economic impact of$340,000,000. The recommended improvements would address some of the Stadium's deficiencies. As outlined above, these include the need for a canopy or roof, upgrades in video scoreboards, lighting and sound systems, creation of a more intimate seating bowl with new seats, flexible, modular seating that can increase seating capacity as needed, upgrades in fan amenities, improvements and additions in premium seating and enhancements to the infrastructure. Without these major improvements, it is doubtful these events will continue to come to South Florida on a regular basis since the venue would not be competitive with other NFL stadiums. Sun Life Stadium not only suffers from aging infrastructure and old design trends, but also from the requirements of hosting MLB Baseball. The legacy of baseball's venue requirements still negatively affects the ability of Sun Life Stadium to meet the modem standards and requirements for the NFL, The Super Bowl, collegiate football and international soccer. The recommended improvements would remove baseball's design and operations from Sun Life Stadium in favor of modernized design for soccer and football. Once this has been The Washington Economics Group, Inc. Page| 32 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy completed, Sun Life Stadium can become a significant player in attracting major championship events to Miami. Should the renovations not take place, South Florida could be faced with construction of a new stadium project of more than $1 billion dollars in the next 10 years in order to retain and attract world class events. Based on our research and our review of the competitive landscape for events, Stafford Sports believes that the renovation of Sun Life Stadium is reasonable and warranted. If the South Florida market desires to continue to compete for major national and international events that generate significant economic impact, then improvements to Sun Life Stadium should be undertaken. The Washington Economics Group, Inc. Page| 33 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy APPENDIX III: DEFINITIONS OF ECONOMIC TERMS The Washington Economics Group, Inc. Page| 34 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy DEFINITIONS OF ECONOMIC TERMS Term Definition Employment Total of full-time or part-time jobs. Labor Income All forms of employment income, including Employee Compensation (wages and benefits) and Proprietor Income. Gross Domestic Product (GDP) The increased value of a product as a result of the economic inputs (labor and capital) expended at a given stage. In the IMPLAN Model, GDP is the sum of: Employee Compensation, Proprietor Income, Other Property Type Income (Interest) and Indirect Business Taxes. Economic Impact Total value of all transactions attributed to an activity. Direct Effects The set of expenditures applied to the predictive model (i.e., I/O multipliers) for impact analysis. It is a series (or single) of production changes or expenditures made by producers/consumers as a result of an activity or policy. These initial changes are determined by an analyst to be a result of this activity or policy. Applying these initial changes to the multipliers in an IMPLAN model will then display how the region will respond, economically to these initial changes. Indirect Effects The impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money leaks from the local economy, either through imports or by payments to value added. The impacts are calculated by applying Direct Effects to the Type I Multipliers. Induced Effects The response by an economy to an initial change (direct effect) that occurs through re-spending of income received by a component of value added. IMPLAN's default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not a leakage to the regional economy. This money is re-circulated through the household spending patterns causing further local economic activity. The Washington Economics Group, Inc. Page| 35 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy APPENDIX IV: THE WASHINGTON ECONOMICS GROUP INC. PROJECT TEAM AND QUALIFICATIONS The Washington Economics Group, Inc. Page| 36 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy J. ANTONIO VILLAMIL Principal Economic Advisor Tony Villamil is a nationally recognized economist, with over thirty-five years of successful career as a business economist, university educator and high-level policymaker for both federal and state governments. He has served as a Presidential appointee as US Undersecretary of Commerce for Economic Affairs, and he is the founder of a successful economic consulting practice, The Washington Economics Group, Inc. (WEG). Since August 2008, Tony is the Dean and Professor of Economics at the School of Business of St. Thomas University, while continuing to serve as Principal Economic Advisor to the clients of WEG. Dr. Villamil is a recent member of the President's Advisory Committee on Trade Policy and Negotiations in Washington, DC. He is the immediate past Chairman of the Governor's Council of Economic Advisors of Florida, and during 1999-2000, he directed the Tourism, International Trade and Economic Development Department of the State of Florida in the Office of Governor Jeb Bush. Presently, he is on the Board of Directors of the Spanish Broadcasting System (NASDAQ), Mercantil Commercebank, NA, Pan-American Life Insurance Group (PALIG) and Enterprise Florida - the State's principal economic development organization. He was most recently appointed by the US Secretary of Commerce to serve in the Florida District Export Council. Among professional and civic leadership positions, Tony is currently Chairman of the Economic Roundtable of the Beacon Council--Miami-Dade County's official economic development organization. Dr. Villamil also serves as Senior Research Fellow and Vice Chair of the Council of Economic Advisors of Florida TaxWatch, an established fiscal and policy research organization of the State. Tony is a member of the Superintendent's Business Advisory Council of Miami-Dade County Public School System, one of the largest school systems in the nation. Dr. Villamil earned bachelor and advanced degrees in Economics from Louisiana State University (LSU), where he also completed coursework for the PhD 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 frequently speaks 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 in Miami, Fl. The Washington Economics Group, Inc. Page| 37 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy CHRISTOPHER "ROD" LEWIS, PHD Director, The Haas Center for Business Research and Economic Development The University of West Florida (UWF) & Associate Consultant, WEG Rod Lewis is the Director of the Haas Center for Business Research and Economic Development at the University of West Florida. He received his PhD in political science with a doctoral minor in econometrics from Florida State University in 2006 and joined the Center shortly thereafter. He served as Director of Research for Kile Consulting, a Tallahassee based firm, as Leroy Collins fellow in the Department of Political Science and successively as a fellow in the Interdisciplinary Social Sciences during his graduate career at FSU. Before returning to lead the Haas Center he was President of Discover Analytics, Inc. He has participated in numerous local, regional and state-wide projects with the Center including industry cluster analyses, workforce competency studies, and economic impact analyses. He maintains an active research agenda in his home discipline of political science and routinely collaborates with colleagues on experimental and empirical research in political psychology, political behavior and representation. Under the direction of Dr. J. Antonio Villamil, WEG Founder and Principal Advisor, Dr. Rod Lewis and the Center serve as Associate Consultants to The Washington Economics Group on the estimation of economic impacts. The Washington Economics Group, Inc. Page| 38 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy MARY SNOW Managing Director of Client Services Mary Snow is the Managing Director of Client Services at The Washington Economics Group, Inc. (WEG). She serves as WEG's client liaison, working with clients to facilitate their business interests and achieve their goals. Prior to joining WEG, Mary was a governmental consultant for Robert M. Levy & Associates with offices in Miami and Tallahassee. She represented clients' interests at the local level and to the State Legislature. Mary received her undergraduate degree in Political Science with a minor in Education from Florida State University. Mary is a resident of Coral Gables, Florida. HAYDEE M. CARRION Executive and Senior Research Assistant Ms. Carrion has been Executive Assistant to Dr. Villamil since the firm's founding in 1993. Ms. Carrion is a specialist in multi-media presentations and in the preparation and design of reports and documents for clients. She also is the Senior and Project Research Assistant and has extensive experience in the preparation of electronic data, presentation of quantitative information, Internet research and desktop publishing. Haydee has been with WEG for 19 years. Ms. Carrion holds AA and AS degrees in Business Administration and Office System Technologies from Miami-Dade College. Haydee is a resident of Miami-Dade County. The Washington Economics Group, Inc. Page| 39 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami-Dade County Economy 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 nineteen 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 thirty-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 The Washington Economics Group, Inc. Page| 40 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami Dade County Economy The Washington Economics Group, Inc. Representative Client List 1993-2012 Multinational Corporations Ameritech International Bureau Veritas (BIVAC) Carrier Esso Inter-America FedEx Latin America Genting Group IBM Joseph E. Seagram & Sons, Inc. (Vivendi) KPMG Lockheed Martin Lucent Technologies MasterCard International MediaOne/AT&T Medtronic Merck Latin America Microsoft Latin America Motorola Phelps Dodge SBC Communications Telefonica Data Systems Visa International Construction & Real Estate Development Firms Areas USA, Inc. Barron Collier Companies Boca Developers CDS International Century Homebuilders Codina Realty Empire World Towers, LLC Ferro Investment Group, LLC Flagler Development Inland Port Systems, LLC LXR Luxury Resorts Miami Asset Management Company, Inc. (MAMCO) Miapolis, LLC Odebrecht Construction, Inc. Palazzo Las Olas Group, LLC The Allen Morris Company The Related Group, Inc. The Rouse Company The St. Joe Company Trammel Crow Company WCI Development Companies Engineering, Planning and Design Firms AECOM (DMJM Harris) Atkins (PBSJ) CDM Smith (Wilbur Smith Associates Golder Associates Kimley-Horn and Associates Parsons Brincherhoff The Washington Economics Group, Inc. Colleges and Universities Alabama State University Barry University Embry-Riddle Aeronautical University Florida Agricultural & Mechanical University (FAMU) Florida International University Full Sail University Keiser University Los Angeles Film School Miami-Dade College Rocky Mountain College of Art and Design Sistema Universitario Ana G. M?ndez (SUAGM) St. Thomas University Universidad Polit?cnica de Puerto Rico University of Florida University of Miami (UM) UM's Rosenstiel School of Marine and Atmospheric Science University of South Florida/ENLACE Law Firms Becker & Poliakoff Carlton Fields Colson Hicks Eidson DLA Piper Dunbar & Dunbar Gloria Roa Bodin, Esq Greenberg Traurig, LLP Holland & Knight, LLP Steel Hector & Davis Tew Cardenas, LLP Other Florida-Based Companies AmericanAirlines Arena BMI Companies Communikatz Dosal Tobacco Farm Stores Fishkind & Associates Florida Hospital Florida Marlins Florida Power & Light (FPL) Flo-Sun Sugar Corp. Greater Ft. Lauderdale Alliance Greater Miami Convention & Visitors Bureau Homestead Miami Speedway Iberia Tiles International Speedway Corporation Jungle Island Mercy Hospital Miami Dolphins Resorts World Miami (RWM) Ron Sachs Communications Sprint of Florida Page| 41 The Comprehensive Economic Development Impacts of Top Sports Industries and Activities on the Miami Dade County Economy Financial Institutions ABN-AMRO Bank Advantage Capital Allen & Company BNP Paribas Bank Atlantic Corp. BankUnited, FSB Banque Nationale de Paris Barclays Bank ESJ Capital Partners Espirito Santo Bank Fiduciary Trust International First Union National Bank (Wells Fargo) Hemisphere National Bank HSBC/Marine Midland International Bank of Miami (First United Bank) Lazard Freres & Co. Mercantil Commercebank N.A. Pan American Life Insurance Group (PALIG) PointeBank, N.A. Seitlin Insurance Sun Trust Corporation The Equitable/AXA Advisors Union Planters Bank of Florida (Regions) Non-Florida-Based Corporations Darlington Raceway Daytona International Speedway Georgia Retail Federation Homestead-Miami Speedway Illinois Retail Merchant Association Indiana Retail Council International Speedway Corporation (ISC) Kansas Speedway Martinsville Speedway Progress Energy Richmond International Raceway Talladega Superspeedway Washington Retail Association Watkins Glen International Latin America-Based Institutions Allied-Domecq, Mexico Association of Peruvian Banks Federation of Inter-American Financial Institutions (FIBAFIN) Fonalledas Enterprises Mercantil Servicios Financieros, Venezuela Peruvian Management Institute (IPAE) The Biltmore Hotel/Seaway The Heat Group Ultra Musical Festival Public Institutions and Non-Profit Organizations Baptist Health South Florida City of Plantation City of West Palm Beach Economic Development Commission of Collier County Economic Development Commission of Lee County Economic Development Commission of Mid-Florida Enterprise Florida, Inc. Farm Share, Inc. Flagler Development Florida Bankers Association Florida Citrus Mutual Florida International Bankers Association (FIBA) Florida League of Cities Florida Nursing Homes Alliance Florida Outdoor Advertising Association Florida Ports Council Florida Retail Association Florida Sports Foundation Inter-American Development Bank (IDB) Jackson Health Systems Jacksonville Chamber of Commerce Louisiana Committee for Economic Development Miami Marine Stadium Miami Museum of Science Miami-Dade County Public Schools Miami-Dade Expressway Authority Port of Miami SEUI Healthcare Florida Space Florida State of Florida SW Florida Regional Chamber of Commerce Sylvester Comprehensive Cancer Center Tampa-Hillsborough Expressway Authority The Beacon Council The Florida Bar The Florida Chamber Foundation United Nations Economic Development Program (UNDP) United Teachers of Dade Visit Florida Zoological Society of Florida The Brunetta Group of Argentina The Washington Economics Group, Inc. 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