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THE ECONOMIC IMPACTS OF THE FLORIDA MARLINS ON THE CITY OF MIAMI: DEVELOPMENT AND RECURRING PHASES Prepared by: The Washington Economics Group, Inc. October 3, 2008 (Revised on January 28, 2009) 2655 LeJeune Road, Suite 608 Coral Gables, Florida 33134 Tel: 305.461.3811 – Fax: 305.461.3822 [email protected] www.weg.com
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Florida Marlins City of Miami Impact Analysis- 01-28-09

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Page 1: Florida Marlins City of Miami Impact Analysis- 01-28-09

THE ECONOMIC IMPACTS

OF THE FLORIDA MARLINS ON THE CITY OF MIAMI:

DEVELOPMENT AND RECURRING PHASES

Prepared by:

The Washington Economics Group, Inc.

October 3, 2008 (Revised on January 28, 2009)

2655 LeJeune Road, Suite 608 Coral Gables, Florida 33134

Tel: 305.461.3811 – Fax: 305.461.3822 [email protected] www.weg.com

Page 2: Florida Marlins City of Miami Impact Analysis- 01-28-09

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TABLE OF CONTENTS

I. BACKGROUND ....................................................................................................................1 II. THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF THE

FLORIDA MARLINS BALLPARK ON THE CITY OF MIAMI ................................................3

III. THE RECURRING ECONOMIC IMPACTS OF THE FLORIDA MARLINS TEAM

OPERATIONS ON THE CITY OF MIAMI ..............................................................................9

IV. POTENTIAL ECONOMIC IMPACTS ASSOCIATED WITH BASEBALL’S “JEWEL” EVENTS ..............................................................................................................................15

V. CONCLUSION ....................................................................................................................17 APPENDIX I: METHODOLOGY ..................................................................................................18

APPENDIX II: DETAILED IMPACT TABLES................................................................................21

APPENDIX III: THE WASHINGTON ECONOMICS GROUP, INC. PROJECT TEAM AND

QUALIFICATIONS ................................................................................................33

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List of Tables

Table 1. Summary of the Economic Impacts Arising from Development of the

Florida Marlins Ballpark...............................................................................................4

Table 2. Person Years of Employment Arising from Development of the Florida Marlins Ballpark ...........................................................................................................5

Table 3. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark.........................................................................................................................6

Table 4. Miami GDP Arising from Development of the Florida Marlins Ballpark....................6

Table 5. Economic Output Impacts Arising from Development of the Florida Marlins Ballpark ...........................................................................................................7

Table 6. Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark.........................................................................................................................8

Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Florida Marlins Team Operations in the New Ballpark ..........................................................10

Table 8. Recurring Employment Impacts Arising from Florida Marlins Team Operations...................................................................................................................11

Table 9. Recurring Labor Income Impacts Arising from Florida Marlins Team Operations...................................................................................................................11

Table 10. Recurring Miami GDP Arising from Florida Marlins Team Operations....................12

Table 11. Recurring Economic Output Impacts Arising from Florida Marlins Team Operations...................................................................................................................13

Table 12. Recurring Fiscal Contributions of Florida Marlins Team Operations ........................13

Table 13. Sales Tax Generated at the Completed Florida Marlins Ballpark...............................14

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I. BACKGROUND

The Washington Economics Group, Inc. (WEG) has been retained to prepare an economic

impact analysis of the development of the proposed Florida Marlins Ballpark and ongoing

operations of the Florida Marlins Baseball Team in the City of Miami.

As currently proposed, the Florida Marlins Ballpark will be located at the site of the former

Orange Bowl adjacent to the central business district of downtown Miami. The proposed

state-of-the-art ballpark will consist of 927,000 square feet of constructed area for 37,000

spectators, enclosed with a three-panel operable roof system. This roof system will be able to

cover the playing field and seating terraces if conditions require. In the open ballpark

configuration, the operable roof panels will park over a grand plaza, creating an

entertainment entry district. When the roof and outfield wall are retracted, the ballpark’s

interior space transforms, and the seating terraces become open to the sky.

Spectator seating areas are supported by three distinct levels, the main concourse level, the

club/suite level and the upper concourse level. All seating levels are oriented for prime

views of the playing field, as well as offering views of the Miami skyline beyond the outfield

wall.

The architecture of the ballpark has been described as a kinetic sculptural expression with its

large curvilinear movable roof panels and exterior form. The retracting roof will be fully

operable, offering flexibility to protect the spectators and the field from sun and rain if

needed. When the ballpark is fully enclosed, it will be air conditioned to provide a

comfortable environment for spectators and players. The curving faceted forms enclosing the

spectator seating area and concourses will terrace down from the roof and will be layered to

create balconies with views out to the surrounding skyline, while appearing to reduce the

scale of the building gracefully. The exterior skin of the ballpark will consist of a faceted

metal panel system, glass curtain wall and pre-cast concrete panels. These elements will be

organized in a manner to create a powerful symbol within the Miami skyline.

Plans for the ballpark also call for the construction of up to 96 residential units, up to 61,678

square feet of ancillary and accessory retail space, four parking structures and six surface

parking lots with approximately 6,000 spaces on the site as well as improvements to public

infrastructure on and adjacent to the site.

For this analysis, WEG utilized the Minnesota IMPLAN Group, Inc.’s (MIG) software and

basic data needed to formulate the economic multiplier model developed for quantifying the

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The Washington Economics Group, Inc. Page 2

proposed ballpark development and ongoing activities of the Florida Marlins on the City of

Miami. MIG has been providing economic multiplier models for regional economic impact

analysis since 19851. Models developed using IMPLAN software have been widely used by

the private sector, academic economists and by federal, state and local government agencies

to measure the economic impacts of various policy alternatives.

The development of the proposed ballpark in the City of Miami will generate significant

quantifiable economic impacts. These impacts, estimated by utilizing a professionally

accepted and widely used methodology, will support employment, the generation of labor

income, economic output and public revenues in the City of Miami. Estimates calculated on

page 14 will result in close to $1 million ($780,000) a year in sales taxes alone that are paid

to the City from operations inside the ballpark. Therefore, the economic outcomes expected

from development of the proposed ballpark will provide significant economic benefits to the

City of Miami and its residents.

It should be noted that the model utilized in this study measures only economic impacts

generated within the boundaries of the City of Miami. Additional benefits are generated

within other cities in Miami-Dade County and other parts of South Florida that are not

included in this analysis, but which are indeed substantial.

Methodology Used in this Analysis

Economic models that explicitly account for inter-industry linkages (supply relationships),

the generation of labor and capital income and the spending of household income have been

used since the 1960’s to estimate the contribution that a particular business or industry makes

to the general economy. These “input-output” models recognize that, as an industry

experiences an increase in the demand for its products or services, it in turn needs more goods

and services from its suppliers and must increase its purchases from other industries in the

economy. The effect on regional production resulting from successive rounds of inter-

industry linkages is referred to as the indirect effect. The resulting increases in regional

production also lead to expansions in employment and labor income, and the increases in

labor income lead to more consumer spending, further expanding sales and production

throughout the regional economy. The latter economic impacts are referred to as the induced

effects. The successive waves of production, spending and more production result in

economic multiplier effects, where the final or total increase in regional production, income

and employment, respectively, is larger than the initial (or “direct”) increase in production,

income and employment. The total quantitative economic contribution of these activities,

therefore, is comprised of a direct effect, an indirect effect and an induced effect.

1Information on the IMPLAN Group models and the company history can be found at www.implan.com.

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II. THE ECONOMIC IMPACTS DURING THE DEVELOPMENT PHASE OF THE FLORIDA

MARLINS BALLPARK ON THE CITY OF MIAMI

The expenditures associated with the development of the proposed Florida Marlins Ballpark

will generate economic impacts that extend beyond those directly related to the development

process. These “spillover” or multiplier impacts are the result of each business activity’s

supply relationships with other firms operating within the region, the proportion of Gross

Domestic Product (GDP)2 that accrues to households in the form of labor and capital income,

and the propensity of households to spend income on goods produced within the local area.

The direct impact of the development of the proposed Florida Marlins Ballpark is comprised

of all of the local expenditures for labor and materials that will be used in the construction of

the ballpark, parking garage and associated public infrastructure. A portion of the total costs

of construction is likely to be paid to business establishments and workers located outside of

the City of Miami. These “imports” of goods and services do not add to the level of

economic activity in the City, though they benefit the South Florida region and other

communities where these expenditures take place. This is likely to be the case for a

significant portion of the cost for architectural and engineering services for the ballpark.

The estimated construction costs of the ballpark, parking garage and associated

improvements to public infrastructure in the vicinity of the ballpark are $634 million

(ballpark $515 million, parking garage $94 million and public infrastructure $25 million).

While a detailed breakdown of construction costs is not available, the impact estimates are

based on the total “hard costs” of construction of $569.9 million and $64.1 million of “soft

costs” (design, engineering, etc.). Further adjustments to these estimated expenditures were

made to exclude payments to businesses located outside the City. It is projected that

approximately 22 percent of the hard cost expenditures will go to businesses located outside

the City, and 60 percent of the soft cost expenditures will go to suppliers located outside the

City. With these adjustments, total project expenditures within the City of Miami are

expected to be $470.1 million3.

2The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities. 3Cruz, Dr. Robert D. “Economic Impact of Construction Spending on Three Special Redevelopment Projects: The Marlins Ballpark, Museum Park, and the Port Access Tunnel,” May 23, 2008. Dr. Cruz’s estimates focused on Miami-Dade County. These estimates were utilized in this analysis, as almost all of the local expenditures will occur in the City of Miami.

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The construction spending estimates discussed above constitute direct economic impacts

entered into the IMPLAN Model for the City of Miami. Based in the direct impacts the

IMPLAN model estimates the direct impacts for employment, labor income, public-sector

fiscal revenues, and City of Miami Gross Domestic Product. The IMPLAN model also

estimates indirect and induced economic impacts of the proposed Florida Marlins Ballpark

development for all variables. These comprehensive direct, indirect and induced economic

impacts are summarized in Table 1 below.

An estimated 7,781 person years of employment (one person employed for one year) for

local residents will result from the development of the Florida Marlins Ballpark. The

development phase of the ballpark is directly responsible for 4,774 person years of

employment in the Construction and related support sectors. Current estimates call for the

development phase to be completed within three years of commencement. Based on this

schedule, the estimates of person years of employment can be divided by three to obtain an

approximation of the number of people working on the job at any one point in time. These

calculations suggest that approximately 1,600 people will be directly employed on the

project, and that another 1,000 jobs throughout the City of Miami will be supported by the

ballpark’s development. These estimates for direct employment on the ballpark are consistent

with estimates prepared by the projects managers.

The ballpark’s indirect and induced job creation process reaches deeply into all sectors of the

local economy. This dramatically demonstrates the close supply inter-relationships that the

Construction sector has with all of the other sectors of the local economy. Specifically, 1,334

person years of employment are supported via these indirect economic effects (mostly

suppliers). Lastly, 1,673 person years of employment in all sectors of the local economy are

Table 1. Summary of the Economic Impacts Arising from Development of the Florida Marlins Ballpark

Impact on: Direct Indirect & Induced

Total Impact

Employment (Person Years) 4,774 3,007 7,781

Labor Income ($ Mill.) 216 125 341

City of Miami Gross Domestic Product (GDP $ Mill.) 242 203 445

Federal, State & Local Tax Revenues ($ Mill.) ------- ------- 103

Total Economic Impact ($ Mill.) 470 345 815

Source: The Washington Economics Group, Inc.

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generated by induced spending effects. Therefore, the total number of person years of

employment, directly, indirectly and induced, supported by the development of the

Florida Marlins Ballpark is estimated at 7,781 – making a significant contribution to

local employment opportunities in Miami.

The number of person years of employment estimated by the IMPLAN model to be created

in each economic sector by the development of the Florida Marlins Ballpark is summarized

in Table 2. Of the 7,781 person years of employment supported by the Development phase,

59 percent are in the Construction sector, 27 percent are in the Knowledge-Based Services

sectors, and the remaining 14 percent are distributed among other economic sectors.

The development of the Florida Marlins Ballpark will also be an important generator of

Labor Income for the City’s workers. (Labor Income is the total value of compensation to all

workers.) In addition to the $216 million of Labor Income directly generated by construction

of the ballpark and associated infrastructure, $59 million of Labor Income is created by

indirect economic activities, and $66 million of Labor Income is created by induced

economic activities.

In summary, development of the Florida Marlins Ballpark is estimated to generate

almost $341 million in Labor Income, with the largest proportion of income generated

from the Construction and Knowledge-Based Services economic sectors as shown in

Table 3 next page.

Table 2. Person Years of Employment Arising from Development of the Florida Marlins Ballpark

Industry Jobs Supported

Construction 4,558

Knowledge-Based Services* 2,075

Retail Trade 560

Wholesale Trade & Transportation Services 238

Visitor Industry 217

Manufacturing 84

Government & Other 49

Total All Industries 7,781

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-1. *Find Knowledge-Based Services definition on page 22.

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Table 3. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ($ in thousands)

Industry Total Impact

Construction 203,990

Knowledge-Based Services* 94,202

Retail Trade 17,385

Wholesale Trade & Transportation Services 11,732

Visitor Industry 5,425

Manufacturing 4,119

Government & Other 3,920

Total All Industries $340,772

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-2. *Find Knowledge-Based Services definition on page 22.

Gross Domestic Product (GDP) arising from the project is another measure of

economic development benefits from the development of the Florida Marlins Ballpark.

The GDP of an area represents the net economic value created through the local production

of goods and services. This net economic value is used to compensate workers, pay taxes,

and provide a return to investors in the business activities. GDP is also the principal source of

household income and a key measure of the contributions that the development of the

ballpark and associated infrastructure will make to the City of Miami economy. The

development of this project will create over $242 million of local GDP directly, while $83

million of local GDP will be the result of indirect activities, and $120 million of local GDP

will be the result of induced economic activities. In total, the development of the Florida

Marlins Ballpark will generate almost $445 million in GDP for the City.

Table 4. Miami GDP Arising from Development of the Florida Marlins Ballpark ($ in thousands)

Industry Total Impact

Construction 229,922

Knowledge-Based Services* 122,998

Government & Other 29,332

Retail Trade 27,963

Wholesale Trade & Transportation 20,142

Visitor Industry 8,155

Manufacturing 6,434

Total All Industries $444,946

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-3. *Find Knowledge-Based Services definition on page 22.

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Table 4 summarizes the local GDP estimated to be created by the development of the

ballpark in each economic sector. The greatest increases in Miami GDP are estimated to

occur in the Construction and Knowledge-Based Services sectors where it is projected

that 80 percent of the Miami GDP is to be created.

A final and comprehensive measure of the total economic impact of the development of the

Florida Marlins Ballpark on Miami is Gross Economic Output, representing the sum of gross

revenues (receipts) of private firms plus the value of government services (valued at cost).

The total economic impact of the development of the Florida Marlins Ballpark on the

City is estimated at almost $815 million – generating a significant economic impact. Of

this total, an estimated $470 million is generated by direct activities, while an additional

$345 million is generated by indirect and induced activities. Table 5 shows the industry

distribution of the total economic impact.

Table 5. Economic Output Impacts Arising from Development of the Florida Marlins Ballpark ($ in thousands)

Industry Total Impact

Construction 446,077

Knowledge-Based Services* 219,924

Retail Trade 42,245

Government & Other 36,707

Wholesale Trade & Transportation Services 32,273

Manufacturing 23,243

Visitor Industry 14,496

Total All Industries $814,965

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-4. *Find Knowledge-Based Services definition on page 22.

In addition to the various economic impacts presented, the development of the Florida

Marlins Ballpark will result in significant fiscal revenues for federal, state, and local

governments as shown in Table 6 next page. Over the course of development, almost $103

million of fiscal revenues are generated. Of this total, $78.5 million, or 76 percent, flow to

the federal government, and the remaining $24.4 million, or 24 percent, of tax revenues are

allocated to state and local governments.

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Table 6. Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark ($ in thousands)

Taxes Paid By Federal Taxes

State/Local Taxes

Total Taxes

Labor $ 30,299 $ 595 $ 30,894

Capital 3,891 ----- 3,891

Households 33,649 2,076 35,725

Corporations 7,950 2,908 10,858

Indirect Business Taxes 2,716 18,795 21,511

Total: $78,505 $24,374 $102,879

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table A-5.

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III. THE RECURRING ECONOMIC IMPACTS OF THE FLORIDA MARLINS TEAM

OPERATIONS ON THE CITY OF MIAMI

In this section, the annual economic impacts of the ongoing operations of the Florida Marlins

Baseball Team on the City of Miami are analyzed. These activities include:

• Local expenditures made by the Florida Marlins in order to operate the stadium and

the baseball team. Included are all expenditures that the Marlins project will incur to

undertake operations in the new ballpark, administrative expenses, and player salaries

prorated for the portion of the year that these individuals can be expected to reside in

Miami. The Florida Marlins estimate that these expenditures will average $130.1

million per annum.

• Lodging, dining and local transportation expenditures made by visiting teams,

baseball umpires and non-local members of the press. The Florida Marlins estimate

that these expenditures will average $2.3 million per annum.

• Expenditures made by out-of-town baseball fans as they attend Marlins home games

in the proposed ballpark (excluding the purchase of tickets to the games). These

expenditures include purchases of food and drink, parking and purchases of novelties

and souvenirs. In instances where out-of-town fans remain in Miami overnight, these

expenditures include lodging expenditures. The Florida Marlins provided estimates of

out-of-town fan attendance at their home games. Estimated fan expenditures are

based on experience at Nationals Park in Washington, D.C. The projected fan

expenditures are consistent with other local surveys of out-of-town visitor

expenditures, including those produced by the Greater Miami Convention and

Visitors Bureau. In total, these expenditures are projected to average $45.2 million

per annum once the new ballpark is fully operational.

Therefore, the ongoing activities in the completed ballpark will generate significant

quantifiable and recurring economic impacts each year. These impacts, estimated by

utilizing professionally accepted and widely used methodology, will support other

employment and the generation of labor income, economic output and public revenues in the

City of Miami on an ongoing basis.

The expenditures associated with activities in the completed ballpark generate economic

impacts that extend beyond those directly related to its operations. These “spillover” or

multiplier impacts are the result of each business activity’s supply relationships with other

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firms operating within the community, the proportion of local GDP4 that accrues to

households in the form of labor and capital income and the propensity of households to spend

income on goods produced within the local area.

The direct impact of the activities that will occur in the completed ballpark is comprised of

all expenditures made by the team, visiting teams, and expenditures made by out of town

fans attending Marlins home games. Utilizing the direct economic impacts discussed above,

indirect and induced economic impacts of the activities occurring in the completed ballpark

were calculated using an extended input-output model of the City of Miami economy. These

comprehensive direct, indirect and induced economic impacts are summarized in Table 7.

An estimated 2,708 permanent jobs for local residents result directly or indirectly from the

baseball and related activities occurring at the completed ballpark. Expenditures related to

baseball operations and out-of-town fan expenditures are directly responsible for 1,667 jobs

in the Knowledge-Based Services, Government & Other and related support sectors.

However, the indirect and induced job creation process reaches deeply into all sectors of the

local economy. This dramatically demonstrates the close supply inter-relationships that these

sectors have with all of the other sectors of the local economy. An additional 377 jobs are

supported via indirect economic effects (mostly suppliers). Lastly, 664 jobs are generated by

induced spending effects. Therefore, the total number of jobs, directly, indirectly and

induced, supported by activities in the completed ballpark are estimated at 2,708 –

making a significant contribution to local employment opportunities.

4 The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities.

Table 7. Summary of Annual (Recurring) Economic Impacts Arising from Florida Marlins Team Operations in the New Ballpark

Impact on: Direct Indirect & Induced

Total Impact

Employment (Jobs) 1,667 1,041 2,708

Labor Income ($ Mill.) 96 44 140

Miami Gross Domestic Product (GDP – $ Mill.) 127 76 203

Federal, State & Local Tax Revenues ($ Mill.) ------- ------- 57

Total Economic Impact ($ Mill.) 178 121 299

Source: The Washington Economics Group, Inc.

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The jobs created in each economic sector by baseball and other activities that are projected to

occur in the completed ballpark are summarized in Table 8. Of the 2,708 jobs supported by

these activities, 67 percent are in the Knowledge-Based Services sector. An additional 23

percent of the jobs created are in the Visitor Industry, with the remaining 10 percent of jobs

distributed among other economic sectors.

Table 8. Recurring Employment Impacts Arising from Florida Marlins Team Operations

Industry Jobs Supported

Knowledge-Based Services* 1,815

Visitor Industry 629

Retail Trade 145

Wholesale Trade & Transportation Services 71

Government & Other 22

Manufacturing 18

Construction 8

Total All Industries 2,708

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-1. *Find Knowledge-Based Services definition on page 22.

The ongoing activities that will occur in the completed ballpark will be an important

generator of Labor Income for workers in the City of Miami. In addition to the $96 million

annually of recurring Labor Income directly generated by activities that will occur in the

ballpark, more than $18 million of Labor Income will be created by indirect economic

activities each year and $26 million of Labor Income will be created by induced economic

activities each year. In summary, activities in the completed Florida Marlins Ballpark

will generate over $140 million in Labor Income each year, with the largest proportion

of income generated from the Knowledge-Based Services economic sector as shown in

Table 9.

Table 9. Recurring Labor Income Impacts Arising from Florida Marlins Team Operations ($ in thousands)

Industry Total Impact

Knowledge-Based Services* 110,432

Visitor Industry 18,933

Retail Trade 4,415

Wholesale Trade & Transportation Services 3,602

Government & Other 1,733

Manufacturing 889

Construction 375

Total All Industries $140,380

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-2.

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*Find Knowledge-Based Services definition on page 22.

Gross Domestic Product (GDP)5 arising from recurring activities (ongoing) in the

completed ballpark is another measure of the economic benefits of this development.

The GDP of an area represents the net economic value created through the local production

of goods and services. This net economic value is used to compensate workers, pay taxes,

and provide a return to investors in the business activities. GDP is also the principal source of

household income and a key measure of the contributions that the Marlins ongoing

operations in the completed ballpark will make to the City of Miami economy. Each year

activities at the completed ballpark will create over $127 million of local GDP directly, while

close to $28 million of local GDP will be created by indirect activities, and more than $47

million of local GDP will be created by induced economic activities. In total, baseball and

other activities at the completed ballpark will generate just under $203 million in local GDP

each year. Table 10 summarizes the recurring local GDP impacts of baseball and other

activities associated with the completed ballpark on each economic sector. The greatest

increases in local GDP will arise in the Knowledge-Based Services and the Visitor

Industry where 87 percent of the local GDP will be created.

Table 10. Recurring Miami GDP Arising from Florida Marlins Team Operations ($ in thousands)

Industry Total Impact

Knowledge-Based Services* 145,542

Visitor Industry 30,805

Government & Other 12,014

Retail Trade 7,025

Wholesale Trade & Transportation Services 5,626

Manufacturing 1,419

Construction 395

Total All Industries $202,825

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-3. *Find Knowledge-Based Services definition on page 22.

A final and comprehensive measure of the total recurring economic impact of the ongoing

operations at the Florida Marlins Ballpark is Gross Economic Output, representing the sum

of total gross revenues (receipts) of private firms plus the total value of government services

(valued at cost). The total recurring economic impact of the activities at the completed

5The GDP of an area represents the net economic value created through the local production of goods and services. This economic value is used to compensate workers, pay taxes, and provide a return to investors in these business activities.

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ballpark is estimated at just over $299 million annually. Of this total, $178 million will be

generated by direct activities related to activities at the ballpark, while an additional $121

million will be generated by indirect and induced activities. As presented in the previous

analysis of these economic impacts, the greatest increases in total economic impact (Gross

Economic Output) will arise in the Knowledge-Based Services, Visitor Industry and

Government & Other sectors, where 91 percent of the recurring economic output will be

created as shown in Table 11 below.

Table 11. Recurring Economic Output Impacts Arising from Florida Marlins Team Operations ($ in thousands)

Industry Total Impact

Knowledge-Based Services* 206,983

Visitor Industry 50,758

Government & Other 15,124

Retail Trade 10,547

Wholesale Trade & Transportation Services 8,923

Manufacturing 5,764

Construction 941

Total All Industries $299,039

Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-4 *Find Knowledge-Based Services definition on page 22.

In addition to the various economic impacts presented, baseball and other activities at the

completed ballpark will result in significant fiscal revenues each year for federal, state, and

local governments as shown in Table 12. Each year almost $57 million of fiscal revenues will

be generated by ongoing activities. Of this total, $35.3 million, or 62 percent, will flow to the

federal government, with the remaining $21.7 million, or 38 percent, of tax revenues being

allocated to state and local governments.

Table 12. Recurring Fiscal Contributions of Florida Marlins Team Operations ($ in thousands)

Taxes Paid By Federal Taxes

State/Local Taxes

Total Taxes

Labor $ 14,360 $ 282 $ 14,642

Capital 814 ----- 814

Households 13,379 825 14,204

Corporations 3,943 1,442 5,385

Indirect Business Taxes 2,771 19,175 21,946

Total: $35,267 $21,724 $56,991

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Source: The Washington Economics Group, Inc. See detail in Appendix II, Table B-5.

Baseball and other activities at the completed ballpark will be important generators of Sales

Tax Revenues for the City of Miami and for the State of Florida. The Florida Marlins have

prepared estimates of fan attendance and taxable revenues that will occur at the completed

ballpark. On average, during the first five years of operations, the Florida Marlins forecast

that ticket sales, concession revenues and other activities occurring at the ballpark will

generate $10.9 million dollars of sales tax revenues each year, as shown in Table 13 below. It

should be noted that these estimates do not include fiscal revenues associated with other

taxes and fees, nor do they include taxes or fees collected on activities occurring outside of

the completed ballpark.

Table 13. Sales Tax Generated at the Completed Florida Marlins Ballpark

Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 5 Yr. Avg.

Attendance (Tickets Sold) 2,835,000 2,700,000 2,600,000 2,400,000 2,300,000 2,567,000

Total Sales Tax Ballpark Events $11,344,872 $11,150,232 $10,901,900 $10,474,521 $10,696,884 $10,913,682

Source: The Florida Marlins.

Under Florida law, one half of one percent (0.50) of all local taxable

expenditures, or one twelfth (1/12) of the State’s sales tax collections are

transferred to local governments. Consultant estimates that recurring

expenditures attributable to activities at the completed ballpark will average

$156 million each year, and that the City’s portion of the associated sales taxes

will be $780,000 each year.

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The Washington Economics Group, Inc. Page 15

IV. POTENTIAL ECONOMIC IMPACTS ASSOCIATED WITH BASEBALL’S “JEWEL” EVENTS

Major League Baseball has three high profile also known as “Jewel” events that have the

potential to take place in the completed ballpark. These events are the Major League All-Star

Game, the World Series (and the remaining portions of the Major League Baseball post-

season) and the World Baseball Classic. All of these events draw large numbers of visitors to

the host communities, as well as extensive media coverage of the host community in both the

sports and mainstream media. Involvement in these events by either Miami as a host City,

and/or the Florida Marlins as participants will generate significant economic impacts in

addition to those already discussed.

The Major League All-Star Game highlights a multi-day series of baseball-related events

occurring in the host City. The All-Star Game pits the top players of the American and

National Leagues against each other, and determines which league will have the home field

advantage in that year’s World Series. Major League Baseball has an established pattern of

awarding the All-Star Game to newly established teams and teams with new ballparks a few

years after the teams are established or after the new ballpark is opened. While it cannot be

guaranteed that the Florida Marlins will have the opportunity to host an All-Star Game in the

future, past patterns and other indications from Major League Baseball strongly suggest that

it is likely to happen at some point during the first five years of the ballpark’s existence.

Economic impact analyses of prior years All-Star Games played at locations throughout the

nation suggest that a wide range of potential economic impacts can occur if this event were

held in Miami. The smallest economic impact was $37.6 million for the 1997 All-Star Game

played in Cleveland, while the largest impact was $148.4 million for the 2008 All-Star Game

played in New York6. The impacts of recent All-Star games held in markets similar to Miami

include Houston, which hosted the 2004 All-Star game with an economic impact of $65

million, and Pittsburgh which hosted the 2006 All-Star Game with an economic impact of

$52.3 million.

The World Series takes place each October in the cities of the champions of the American

and National Leagues. Each team has the potential to host between two and four games of

this series, following the successful completion of their division and league play-offs. Like

the World Series, the league play-offs are a “best of seven” series, guaranteeing each team a

minimum of two home games, and a potential for four games during each of these series

(The division play-offs are a best of five series). The World Series is followed throughout

6 Major League Baseball data.

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the world, with extensive press coverage for the duration of the series. Additionally, it draws

large numbers of visitors to the host cities each year. Since the establishment of the Florida

Marlins baseball team, the team has played in two World Series championships. Potential

economic impacts for the City of Miami from the Marlins participation in a World Series are

likely to be similar to the range of economic impacts associated with hosting the All-Star

Game.

The World Baseball Classic (WBC) takes place once every four years with the next Classic

scheduled to be played in 2009. Given the Marlins proximity to over half of Major League

Baseball’s spring training facilities and Miami's proximity to many of the Caribbean nation

teams (Dominican Republic, Venezuela, Puerto Rico) participating in the Classic, Miami will

likely be a regular candidate to host the finals or one of the major rounds of the WBC every

four years. Major League Baseball has indicated to the Marlins that the team is a strong

candidate to host the 2013 World Baseball Classic if the new stadium is operational7. The

Marlins will also have the opportunity to host practice and training sessions for one or more

teams during each Classic, and the Marlins will also be a candidate to host one of the

Classic’s first round brackets in any year that they are not selected to host the finals or semi-

finals of the Classic. Hosting activities associated with the World Baseball Classic will bring

significant numbers of out-of-town visitors to Miami to attend these events, as well as

creating significant national and international media coverage of the Classic and Miami as

the host City for the event.

Each of these events has the potential to significantly increase the economic impact of the

Florida Marlins by drawing large numbers of visitors to Miami and thus generating favorable

media coverage of the community. Further, the baseball “Jewel” events occur outside of

South Florida’s winter tourism season helping to increase patronage of South Florida’s

entertainment and visitor industries during periods of reduced activity. The impacts

associated with these “Jewel” events are not included in this analysis and are additional to the

recurring impacts associated with the Florida Marlins ongoing activities during the regular

baseball season.

7 Information from the Florida Marlins.

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V. CONCLUSION

The development phase and recurring operations of the proposed Florida Marlins Ballpark

will be a significant generator of jobs in the building trades and the construction industries of

Miami-Dade and the City of Miami. The ballpark will require large amounts of goods and

materials, becoming an important customer for local companies that supply these products to

the building industry. When completed, the ballpark will be home to the Florida Marlins

Baseball Team and host over 80 baseball games each year, generating important economic

impacts on jobs supported, labor income, economic output and fiscal revenues. Due to

Miami’s location and reputation as a premier vacation and recreation destination, the ballpark

has the potential to host high profile baseball events as well as many other activities that can

take advantage of the ballpark’s capabilities and Miami’s varied and multiple amenities.

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APPENDIX I:

METHODOLOGY

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IMPLAN MODEL

The multiplier impacts calculated by the IMPLAN model are based on input-output

methodology, which explicitly considers the inter-industry linkages that exist within an

economy. Each industry needs labor and inputs from other industries in order to produce

economic output. Whenever an industry experiences an increase in the demand for its

output, many other industries within that economy indirectly experience an increase in

demand as well because of these inter-industry linkages. This increase in demand that results

from the need for material inputs is called the indirect effects. In addition, an increase in

production within a region also leads to an increase in household income through the hiring

of workers, which in turn generates further demands for goods and services within the region.

Firms also need to expand their base of physical capital to meet higher levels of demand, and

this too stimulates regional economic growth. The latter effects are referred to as induced

effects. The inter-industry linkages and the induced effects on consumer and capital spending

lead to successive rounds of production, and this process results in an increase in output that

exceeds the initial change in demand, or a multiplier effect. Similarly, the increase in

household income will exceed the initial payroll increase encountered in the industry that

experienced the original increase in demand. The total change in employment in the regional

economy is a multiple of the direct change in employment.

The following represents the system of equations that comprise the regional economy in

an extended input-output model like IMPLAN:

The variables x1 to xk represent total production of output in each industry. The coefficients

iiiihihkikhiiii

hihihhhkhkhhhhh

kikihkhkkkkkkk

iihhkk

IIhhkk

iihhkk

fxaxaxaxaxaxax

fxaxaxaxaxaxax

fxaxaxaxaxaxax

fxaxaxaxaxaxax

fxaxaxaxaxaxax

fxaxaxaxaxaxax

+++++++=

+++++++=

+++++++=

+++++++=

+++++++=

+++++++=

L

L

L

M

L

L

L

32211

32211

332211

33333332321313

22223232221212

11113132121111

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The Washington Economics Group, Inc. Page 20

aij represent the purchases from industry “i” that are needed to produce a dollar of output in

industry “j”. These are known as the direct requirement coefficients. The variable xh refers

to household income and the coefficients aih refer to the average amount of household

income spent on purchases from industry “i”, or the average propensities to consume. The

coefficients ahi are similar to the inter-industry purchases (aij’s), but they represent the

household income that is generated from each dollar of output produced in industry “i”.

Similarly the variable xI represents regional spending on capital goods, and the coefficients aIj

represents the spending on capital goods for each dollar of output produced in industry “j”.

The coefficients ajI represent the amount purchased from industry “j” for each dollar spent on

capital goods within the region. The variables fj represent the exogenous final demand faced

by each industry, respectively.

This system of equation reduces, using matrix notation, to the following solution for

industry output and household income:

X is the vector of industry outputs plus household income and F is a vector of exogenous

final demands. The “output multipliers” (i.e., the change in industry output and household

income that results from a change in final demand for the output of a particular industry) are

given in the columns of the (I-A)-1 matrix. The IMPLAN software calculates these

multipliers for counties, states and other sub-state regions. These multipliers can be used to

provide a sense of the economic importance of an industry or an economic activity in a given

region. The multipliers impacts for gross state product, labor and capital income and the

government revenue impacts are derived from the basic output multipliers given by (I-A)-1.

The IMPLAN model uses historical relationships between public-sector revenues and

regional economic output in order to estimate the public-sector revenue impact resulting from

the establishment of a new, or expansion of an existing economic activity.

FAIX1)( −

−=

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APPENDIX II:

DETAILED IMPACT TABLES DETAILED IMPACT TABLES

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DETAILED IMPACT TABLES

Within the main portion of this analysis, the economic impacts are presented at a summary level. Direct, indirect, and induced impacts are aggregated into the Total Impact, and Industries are summarized by function. The following tables present detailed impacts at the two-digit NAICS industry classification level. The following industry sector summarizations are used in this analysis.

1. Government and Other is the sum of: Agriculture & Forestry, Mining, Utilities, Company Management, and Government & Other

2. Knowledge-Based Services is the sum of: Information, Finance & Insurance, Real Estate, Professional Services, Administrative, Educational Services, Health & Social Services, Arts, Entertainment & Recreation, and Other Services

3. Wholesale Trade & Transportation Services is the sum of: Wholesale Trade, and Transportation & Warehousing

4. The Accommodation and Food Services sector was renamed to the Visitor Industry

List of Tables:

Table A-1. Person Years of Employment Arising from Development of the Florida Marlins Ballpark............................................................................................................................. 23

Table A-2. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ....... 24

Table A-3. Miami GDP Arising from Development of the Florida Marlins Ballpark........................ 25

Table A-4. Economic Output Arising from Development of the Florida Marlins Ballpark ............... 26

Table A-5. Detailed Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark............................................................................................................................. 27

Table B-1. Recurring Employment Impacts Arising from the Florida Marlins Team Operations ..... 28

Table B-2. Recurring Labor Income Impacts Arising from the Florida Marlins Team Operations......................................................................................................................... 29

Table B-3. Recurring Miami GDP Arising from the Florida Marlins Team Operations.................... 30

Table B-4. Recurring Economic Output Impacts Arising from the Florida Marlins Team Operations......................................................................................................................... 31

Table B-5. Detailed Recurring Fiscal Contributions of the Florida Marlins Team Operations.......... 32

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Index

BALLPARK DEVELOPMENT

Table A-1. Person Years of Employment Arising from Development of the Florida Marlins Ballpark

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 0.2 1.1 1.3

Mining 0.0 0.1 0.0 0.1

Utilities 0.0 2.4 5.9 8.3

Construction 4,544.4 6.8 7.2 4,558.4

Manufacturing 0.0 53.9 29.8 83.7

Wholesale Trade 0.0 56.5 62.7 119.2

Transportation & Warehousing 0.0 66.9 51.4 118.3

Retail Trade 0.0 244.5 315.4 559.9

Information 0.0 16.5 20.1 36.6

Finance & Insurance 0.0 54.1 92.7 146.8

Real Estate 0.0 64.4 83.4 147.8

Professional Services 229.6 456.1 68.6 754.3

Company Management 0.0 12.6 11.8 24.4

Administrative 0.0 219.3 85.5 304.8

Educational Services 0.0 2.6 62.8 65.4

Health & Social Services 0.0 0.0 378.1 378.1

Arts, Entertainment & Recreation 0.0 7.2 38.4 45.6

Accommodation & Food Services 0.0 35.5 181.6 217.1

Other Services 0.0 30.9 165.1 196.0

Government & Other 0.0 4.0 11.0 15.0

Total: 4,774.0 1,334.5 1,672.6 7,781.1

Source: The Washington Economics Group, Inc.

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Table A-2. Labor Income Impacts Arising from Development of the Florida Marlins Ballpark ($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 7.4 33.9 41.3

Mining 0.0 7.9 4.2 12.1

Utilities 0.0 248.3 601.9 850.2

Construction 203,353.6 308.6 328.1 203,990.3

Manufacturing 0.0 2,611.4 1,507.7 4,119.1

Wholesale Trade 0.0 2,692.1 4,092.4 6,784.5

Transportation & Warehousing 0.0 2,805.9 2,141.2 4,947.1

Retail Trade 0.0 7,608.1 9,777.0 17,385.1

Information 0.0 1,429.2 1,700.1 3,129.3

Finance & Insurance 0.0 3,709.8 6,219.9 9,929.7

Real Estate 0.0 1,781.9 2,079.7 3,861.6

Professional Services 12,815.3 26,275.6 4,333.2 43,424.1

Company Management 0.0 1,100.1 1,033.6 2,133.7

Administrative 0.0 5,815.5 2,258.9 8,074.4

Educational Services 0.0 107.7 2,352.0 2,459.7

Health & Social Services 0.0 1.5 17,316.8 17,318.3

Arts, Entertainment & Recreation 0.0 234.5 1,135.9 1,370.4

Accommodation & Food Services 0.0 1,054.9 4,369.9 5,424.8

Other Services 0.0 954.1 3,680.1 4,634.2

Government & Other 0.0 225.9 656.3 882.2

Total: 216,168.9 58,980.4 65,622.8 340,772.1

Source: The Washington Economics Group, Inc.

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Table A-3. Miami GDP Arising from Development of the Florida Marlins Ballpark ($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 17.0 86.0 103.0

Mining 0.0 18.6 10.2 28.8

Utilities 0.0 901.6 2,178.4 3,080.0

Construction 229,255.3 327.5 339.3 229,922.1

Manufacturing 0.0 3,975.3 2,458.2 6,433.5

Wholesale Trade 0.0 6,573.7 7,286.4 13,860.1

Transportation & Warehousing 0.0 3,566.9 2,715.4 6,282.3

Retail Trade 0.0 12,264.2 15,698.9 27,963.1

Information 0.0 2,831.7 3,638.3 6,470.0

Finance & Insurance 0.0 6,156.9 10,343.1 16,500.0

Real Estate 0.0 6,431.8 8,021.2 14,453.0

Professional Services 12,880.4 27,727.1 5,027.9 45,635.4

Company Management 0.0 1,415.4 1,329.8 2,745.2

Administrative 0.0 7,008.0 2,821.0 9,829.0

Educational Services 0.0 115.1 2,543.0 2,658.1

Health & Social Services 0.0 2.1 19,956.8 19,958.9

Arts, Entertainment & Recreation 0.0 303.4 1,571.0 1,874.4

Accommodation & Food Services 0.0 1,709.1 6,446.2 8,155.3

Other Services 0.0 1,155.2 4,464.0 5,619.2

Government & Other 0.0 383.9 22,990.6 23,374.5

Total: 242,135.7 82,884.5 119,925.7 444,945.9

Source: The Washington Economics Group, Inc.

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Table A-4. Economic Output Arising from Development of the Florida Marlins Ballpark ($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 21.5 119.9 141.4

Mining 0.0 42.1 23.4 65.5

Utilities 0.0 1,136.1 2,765.0 3,901.1

Construction 444,504.0 781.5 791.4 446,076.9

Manufacturing 0.0 12,921.0 10,322.0 23,243.0

Wholesale Trade 0.0 9,747.3 10,804.1 20,551.4

Transportation & Warehousing 0.0 6,596.3 5,125.0 11,721.3

Retail Trade 0.0 18,501.6 23,743.2 42,244.8

Information 0.0 5,732.4 7,513.8 13,246.2

Finance & Insurance 0.0 10,643.8 19,090.2 29,734.0

Real Estate 0.0 10,442.8 12,109.0 22,551.8

Professional Services 25,548.1 54,048.2 8,950.7 88,547.0

Company Management 0.0 2,420.1 2,273.7 4,693.8

Administrative 0.0 10,722.3 4,654.5 15,376.8

Educational Services 0.0 184.5 3,967.6 4,152.1

Health & Social Services 0.0 4.3 32,536.3 32,540.6

Arts, Entertainment & Recreation 0.0 464.0 2,501.4 2,965.4

Accommodation & Food Services 0.0 2,827.4 11,668.5 14,495.9

Other Services 0.0 2,350.9 8,459.6 10,810.5

Government & Other 101.1 838.4 26,965.6 27,905.1

Total: 470,153.2 150,426.5 194,384.9 814,964.6

Source: The Washington Economics Group, Inc.

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Table A-5. Detailed Fiscal Contributions Attributable to Development of the Florida Marlins Ballpark ($ in Thousands)

Taxes Paid By Tax

Labor Capital Households Corporations Indirect Business

Taxes Total

Federal Taxes

Transfer Payments $261.4 $261.4

Corporate Profits Taxes $7,949.7 $7,949.7

Customs Duties $552.4 $552.4

Excise Taxes $1,489.1 $1,489.1

Non-Tax Payments $675.1 $675.1

Income Taxes $33,648.8 $33,648.8

Social Ins. Taxes - Employees $14,908.3 $3,891.0 $18,799.3

Social Ins. Taxes - Employers $15,129.1 $15,129.1

Total Federal Taxes $30,298.8 $3,891.0 $33,648.8 $7,949.7 $2,716.6 $78,504.9

State & Local Taxes

Corporate Profits Tax $1,052.8 $1,052.8

Dividends $1,855.0 $1,855.0

Business Motor Vehicle Licenses $150.0 $150.0

Other Business Taxes $2,083.2 $2,083.2

Business Property Taxes $6,565.1 $6,565.1

Business Non Tax Payments $835.7 $835.7

Business Sales Taxes $9,139.4 $9,139.4

Severance Taxes $21.6 $21.6

Personal Motor Vehicle Licenses $432.0 $432.0

Personal Fines & Fees $1,434.3 $1,434.3

Personal Use Taxes & Fees $26.5 $26.5

Personal Property Taxes $183.2 $183.2

Social Ins. Taxes - Employees $119.0 $119.0

Social Ins. Taxes - Employers $476.4 $476.4

Total State & Local Taxes $595.4 $2,076.0 $2,907.8 $18,795.0 $24,374.2

Total Taxes $30,894.2 $3,891.0 $35,724.8 $10,857.5 $21,511.6 $102,879.1

Source: The Washington Economics Group, Inc.

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ONGOING TEAM OPERATIONS

Table B-1. Recurring Employment Impacts Arising from the Florida Marlins Team Operations

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 0.1 0.5 0.6

Mining 0.0 0.0 0.0 0.0

Utilities 0.0 1.5 2.3 3.8

Construction 0.0 5.4 2.9 8.3

Manufacturing 0.0 6.5 11.8 18.3

Wholesale Trade 0.0 6.9 24.9 31.8

Transportation & Warehousing 2.4 16.4 20.4 39.2

Retail Trade 11.9 7.4 125.3 144.6

Information 0.0 8.1 8.0 16.1

Finance & Insurance 0.0 13.9 36.8 50.7

Real Estate 0.0 24.2 33.1 57.3

Professional Services 0.0 35.0 27.2 62.2

Company Management 0.0 5.6 4.7 10.3

Administrative 0.0 50.3 33.9 84.2

Educational Services 0.0 0.5 25.0 25.5

Health & Social Services 0.0 1.3 150.2 151.5

Arts, Entertainment & Recreation 1,077.5 168.6 15.2 1,261.3

Accommodation & Food Services 546.1 10.9 72.1 629.1

Other Services 29.0 11.7 65.6 106.3

Government & Other 0.0 2.5 4.6 7.1

Total: 1,666.9 376.8 664.5 2,708.2

Source: The Washington Economics Group, Inc.

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Table B-2. Recurring Labor Income Impacts Arising from the Florida Marlins Team Operations ($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 2.2 13.5 15.7

Mining 0.0 0.6 1.7 2.3

Utilities 0.0 152.0 239.0 391.0

Construction 0.0 244.3 130.3 374.6

Manufacturing 0.0 290.5 598.9 889.4

Wholesale Trade 0.0 452.6 1,625.5 2,078.1

Transportation & Warehousing 53.5 620.1 850.7 1,524.3

Retail Trade 301.6 229.5 3,883.7 4,414.8

Information 0.0 691.8 675.4 1,367.2

Finance & Insurance 0.0 979.4 2,470.9 3,450.3

Real Estate 0.0 656.3 825.9 1,482.2

Professional Services 0.0 2,029.8 1,721.3 3,751.1

Company Management 0.0 489.0 410.6 899.6

Administrative 0.0 1,456.2 897.4 2,353.6

Educational Services 0.0 18.3 935.1 953.4

Health & Social Services 0.0 60.2 6,880.0 6,940.2

Arts, Entertainment & Recreation 77,867.0 9,478.4 451.4 87,796.8

Accommodation & Food Services 16,892.0 305.3 1,736.1 18,933.4

Other Services 579.0 296.1 1,462.5 2,337.6

Government & Other 0.0 163.9 260.7 424.6

Total: 95,693.1 18,616.5 26,070.6 140,380.2

Source: The Washington Economics Group, Inc.

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Table B-3. Recurring Miami GDP Arising from the Florida Marlins Team Operations

($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 4.8 34.2 39.0

Mining 0.0 1.4 4.0 5.4

Utilities 0.0 552.0 865.1 1,417.1

Construction 0.0 260.5 134.8 395.3

Manufacturing 0.0 442.8 976.4 1,419.2

Wholesale Trade 0.0 805.8 2,894.1 3,699.9

Transportation & Warehousing 73.7 773.0 1,078.9 1,925.6

Retail Trade 418.5 370.0 6,236.0 7,024.5

Information 0.0 1,298.9 1,445.4 2,744.3

Finance & Insurance 0.0 1,667.6 4,108.7 5,776.3

Real Estate 0.0 2,958.9 3,185.2 6,144.1

Professional Services 0.0 2,339.9 1,997.3 4,337.2

Company Management 0.0 629.1 528.2 1,157.3

Administrative 0.0 1,905.1 1,120.7 3,025.8

Educational Services 0.0 20.4 1,011.0 1,031.4

Health & Social Services 0.0 83.2 7,928.8 8,012.0

Arts, Entertainment & Recreation 98,331.8 12,559.4 624.3 111,515.5

Accommodation & Food Services 27,760.7 483.3 2,561.0 30,805.0

Other Services 834.8 346.5 1,774.0 2,955.3

Government & Other 0.0 258.0 9,137.0 9,395.0

Total: 127,419.5 27,760.6 47,645.1 202,825.2

Source: The Washington Economics Group, Inc.

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Table B-4. Recurring Economic Output Impacts Arising from the Florida Marlins Team Operations ($ in Thousands)

Impacts Industry

Direct Indirect Induced Total

Agriculture & Forestry 0.0 7.1 47.6 54.7

Mining 0.0 3.2 9.3 12.5

Utilities 0.0 692.7 1,098.0 1,790.7

Construction 0.0 626.3 314.4 940.7

Manufacturing 0.0 1,664.2 4,099.7 5,763.9

Wholesale Trade 0.0 1,194.9 4,291.3 5,486.2

Transportation & Warehousing 125.0 1,275.5 2,036.2 3,436.7

Retail Trade 557.5 558.1 9,431.4 10,547.0

Information 0.0 2,704.2 2,985.0 5,689.2

Finance & Insurance 0.0 2,684.0 7,584.0 10,268.0

Real Estate 0.0 4,741.2 4,808.7 9,549.9

Professional Services 0.0 4,466.5 3,555.7 8,022.2

Company Management 0.0 1,075.8 903.2 1,979.0

Administrative 0.0 3,301.9 1,849.2 5,151.1

Educational Services 0.0 32.6 1,577.4 1,610.0

Health & Social Services 0.0 173.2 12,926.8 13,100.0

Arts, Entertainment & Recreation 130,133.0 16,903.8 994.0 148,030.8

Accommodation & Food Services 45,305.1 817.1 4,635.8 50,758.0

Other Services 1,548.9 651.0 3,361.9 5,561.8

Government & Other 0.0 570.4 10,716.4 11,286.8

Total: 177,669.5 44,143.7 77,226.0 299,039.2

Source: The Washington Economics Group, Inc.

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Table B-5. Detailed Recurring Fiscal Contributions of the Florida Marlins Team Operations ($ in Thousands) Taxes Paid By

Tax Labor Capital Households Corporations

Indirect Business Taxes Total

Federal Taxes

Transfer Payments $123.8 $123.8

Corporate Profits Taxes $3,942.6 $3,942.6

Customs Duties $563.6 $563.6

Excise Taxes $1,519.1 $1,519.1

Non-Tax Payments $688.7 $688.7

Income Taxes $13,378.8 $13,378.8

Social Ins. Taxes - Employees $7,065.8 $813.8 $7,879.6

Social Ins. Taxes - Employers $7,170.4 $7,170.4

Total Federal Taxes $14,360.0 $813.8 $13,378.8 $3,942.6 $2,771.4 $35,266.6

State & Local Taxes

Corporate Profits Tax $522.1 $522.1

Dividends $920.0 $920.0

Business Motor Vehicle Licenses $153.0 $153.0

Other Business Taxes $2,125.3 $2,125.3

Business Property Taxes $6,697.6 $6,697.6

Business Non Tax Payments $852.6 $852.6

Business Sales Taxes $9,323.9 $9,323.9

Severance Taxes $22.0 $22.0

Personal Motor Vehicle Licenses $171.8 $171.8

Personal Fines & Fees $570.3 $570.3

Personal Use Taxes & Fees $10.5 $10.5

Personal Property Taxes $72.8 $72.8

Social Ins. Taxes - Employees $56.4 $56.4

Social Ins. Taxes - Employers $225.8 $225.8

Total State & Local Taxes $282.2 $0.0 $825.4 $1,442.1 $19,174.4 $21,724.1

Total Taxes $14,642.2 $813.8 $14,204.2 $5,384.7 $21,945.8 $56,990.7

Source: The Washington Economics Group, Inc.

Page 36: Florida Marlins City of Miami Impact Analysis- 01-28-09

The Washington Economics Group, Inc. Page 33

THE WASHINGTON ECONOMICS GROUP, INC. PROJECT TEAM AND QUALIFICATIONS

Page 37: Florida Marlins City of Miami Impact Analysis- 01-28-09

J. ANTONIO “TONY” VILLAMIL

Dean, School of Business of St. Thomas University of Florida and Principal Advisor of

The Washington Economics Group, Inc.

Tony Villamil has over thirty years of successful experience as a business economist, University educator and high-level policymaker at both federal and state governments. He has served as a Presidential appointee U.S. Undersecretary of Commerce for Economic Affairs, and is the founder of a successful economic consulting practice, The Washington Economics Group, Inc. (WEG). Since August 2008, Tony is the Dean of the School of Business of St. Thomas University of Miami, while continuing to serve as Principal Advisor to the clients of WEG. Tony is a member of the President’s Advisory Committee on Trade Policy and Negotiations in Washington, D.C. He is the immediate past Chairman of the Governor’s Council of Economic Advisors of Florida, and during 1999-2000, he directed the Tourism, Trade and Economic Development activities of the State in the Office of Governor Jeb Bush. Presently, he is on the Board of Directors of the Spanish Broadcasting System (NASDAQ), Mercantil Commercebank, N.A. and Enterprise Florida – the State’s principal economic development organization.

Among other leadership positions, he served in 2008 as the economist of the Constitutionally mandated Tax and Budget Reform Commission of Florida (TBRC), and is currently Chairman of the Economic Roundtable of the Beacon Council – Miami-Dade County’s official economic development organization. He is also a Senior Research Fellow of Florida TaxWatch, an established fiscal and policy research organization of the State. After winning the gubernatorial election in November 2006, then Governor-elect Charlie Crist appointed him as his Economic Advisor during the transition period.

Tony earned bachelor and advanced degrees in Economics from Louisiana State University (LSU), where he also completed coursework for the Ph.D. degree. In 1991, Florida International University (FIU) awarded him a doctoral degree in Economics (hc), for “distinguished contributions to the Nation in the field of economics.” He speaks frequently to business, government and university audiences on economic topics, and was until the summer of 2008 a member of the Graduate Business Faculty of Florida International University (FIU).

Page 38: Florida Marlins City of Miami Impact Analysis- 01-28-09

Chuck Yaros is an Associate Consultant for Economics at The Washington Economics Group, Inc. (WEG). He serves as economic consultant in the areas of financial economics and economic impact studies. Prior to joining WEG he was a Vice President and Portfolio Strategist at Shay Financial Services in Miami where he specialized in developing, implementing and managing interest rate risk and capital optimization strategies for financial institutions. Mr. Yaros has over 20 years of experience as a business and financial economist, having worked in a number of positions of progressive responsibility in the South Florida business community. Additionally, he has spoken and taught courses on financial risk management.

Chuck received his undergraduate degree in Economics with Honors from Trinity College and his Master’s degree in Economics from Duke University, where he also completed course work for the Ph.D. degree. Chuck and his family are residents of Coral Gables, Florida. The Washington Economics Group, headquartered in Coral Gables, Florida, has been successfully meeting client objectives since 1993 through strategic consulting services for corporations and institutions based in the Americas. The Group has the expertise, high-level contacts, and business alliances to strengthen a firm’s competitive position in the rapidly expanding market places of Florida, and Latin America.

CHARLES K. YAROS Associate Consultant for Economics

Page 39: Florida Marlins City of Miami Impact Analysis- 01-28-09

The Washington Economics Group, Inc. (WEG) has been successfully meeting client objectives since 1993 through economic consulting services for corporations, institutions and governments of the Americas. We have the expertise, high-level contacts, and business alliances to strengthen your competitive positioning in the growing marketplaces of Florida and Latin America.

Our roster of satisfied clients, over the past fourteen years, includes multinational corporations, financial institutions, public entities, and non-profit associations expanding their operations in the Americas.

EXCLUSIVE CONSULTING APPROACH:

Each client is unique to us. We spend considerable time and effort in understanding the operations, goals, and objectives of clients as they seek our consulting and strategic advice. We are not a mass-production consulting entity nor do we accept every project that comes to us. We engage a limited number of clients each year that require customized consulting services in our premier areas of specialization. These premier and exclusive services are headed by former U.S. Under Secretary of Commerce, Dr. J. Antonio Villamil, with over twenty-five years of experience as a business executive and as a senior public official of the U.S. and most recently of Florida.

PREMIER CONSULTING SERVICES:

Comprehensive Corporate Expansion Services. Our seamless and customized service includes site selection analysis, development of incentive strategies and community and governmental relations. Economic Impact Studies highlight the importance of a client's activities in the generation of income, output and employment in the market area serviced by the entity. These studies are also utilized to analyze the impact of public policies on key factors that may affect a client's activities such as tax changes, zoning, environmental permits and others. Strategic Business Development Services. These services are customized to meet client objectives, with particular emphasis in the growing marketplaces of Florida, Mexico, Central and South America. Recent consulting assignments include customized marketing strategies, country risk assessments for investment decisions and corporate spokesperson activities and speeches on behalf of the client at public or private meetings.

For a full description of WEG capabilities and

services, please visit our website at:

www.weg.com

Page 40: Florida Marlins City of Miami Impact Analysis- 01-28-09

Representative Client List 1993-2008

Public Institutions, Non-Profit Organizations & Universities

- Baptist Health Systems - Jackson Health Systems - Miami-Dade Expressway Authority - Miami-Dade College - Miami Museum of Science - Zoological Society of Florida - Florida International University - University of Miami - Universidad Politécnica de Puerto Rico - Sistema Universitario Ana G. Méndez (SUAGM) - Keiser University - Full Sail Real World Education - Florida Agricultural & Mechanical University (FAMU) - Inter-American Development Bank (IDB) - United Nations Economic Development Program (UNDP) - Florida Ports Council - Florida Sports Foundation - Florida Citrus Mutual - Florida Nursing Homes Alliance - Florida Bankers Association - Florida Outdoor Advertising Association - City of Plantation - City of West Palm Beach - Economic Development Commission of Lee County - Economic Development Commission of Miami-Dade

(Beacon Council) - Economic Development Commission of Mid-Florida - Jacksonville Chamber of Commerce - SW Florida Regional Chamber of Commerce - Enterprise Florida, Inc. - The Beacon Council - Visit Florida - Louisiana Committee for Economic Development - University of South Florida/ENLACE - Space Florida - State of Florida

Florida-Based Corporations

- Sprint of Florida - Florida Marlins - Flo-Sun Sugar Corp. - Farm Stores - The BMI Companies - Spillis Candela & Partners - The Biltmore Hotel/Seaway - Trammel Crow Company - Advantage Capital - WCI Development Companies - Iberia Tiles - Florida Hospital - Mercy Hospital - The St. Joe Companies - Florida Power & Light (FPL) - International Speedway Corporation

Latin America-Based Institutions

- Federation of Inter-American Financial Institutions (FIBAFIN)

- The Brunetta Group of Argentina - Association of Peruvian Banks - Peruvian Management Institute (IPAE) - Mercantil Servicios Financieros, Venezuela - Allied-Domecq, Mexico - Fonalledas Enterprises

Financial Institutions

- International Bank of Miami - Pan American Life - ABN-AMRO Bank - Barclays Bank - Lazard Freres & Co. - Banque Nationale de Paris - HSBC/Marine Midland - Fiduciary Trust International - Sun Trust Corporation - First Union National Bank (Wachovia) - Union Planters Bank of Florida (Regions) - Bank Atlantic Corp. - Hemisphere National Bank - BankUnited, FSB - Mercantil Commercebank N.A. - PointeBank, N.A. - The Equitable/AXA Advisors

Multinational Corporations

- Lockheed Martin - FedEx Latin America - IBM - Motorola - SBC Communications - Ameritech International - Lucent Technologies - MediaOne/AT&T - Joseph E. Seagram & Sons, Inc. (Vivendi) - Microsoft Latin America - Carrier - Medtronic - Phelps Dodge - Esso Inter-America - Visa International - MasterCard International - Telefonica Data Systems - Bureau Veritas (BIVAC) - Merck Latin America - DMJM & Harris - DLA Piper - Wilbur Smith Associates - PBSJ