The state of play

How Florida is tackling unemployment by encouraging growth and education

Rick Scott Governor – State of Florida

 

Florida has seen the second biggest drop in unemployment in the U.S. What have you and your administration done to achieve these figures?

Unemployment is at 4.9 percent, and we’ve added some 1.26 million private-sector jobs, which is double the national rate. Four years before I was elected, Florida lost 832,000 jobs. To tackle this, we cut 4,600 regulations, cut taxes 55 times and recruited 900 companies either to come to Florida or expand into the state. We’ve gone on trade missions around the world, and we’ve made sure that our universities are focused on where the greatest job needs are. We’ve asked “how can we help businesses here to be more successful than they are anywhere else?” That is our attitude, and we are better than anyone else in the country. We have to keep cutting taxes and reducing regulations. U.S. News & World Report has said Florida is first for higher education, but we have to keep getting better. We have to make education more affordable and make sure the colleges and universities are very focused on where the jobs are. We now have 25 percent of universities’ budgets tied to three things: What does it cost to get a degree? What field can you get a job in? How much money do you make? We’ve got to make sure we are focused on getting people ready for careers and dealing with the system.

 

Technology, life sciences and healthcare are all growing sectors in the State of Florida. What is being done to encourage the growth of these sectors?

We’ve got to make these sectors more successful here than in any other place in the world. We have to build relationships, which is why one of the things we do as part of Enterprise Florida is consultations with businesses to help them do better. We make sure they have the right workforce, and we do that through a variety of programs through our state colleges and universities. We’ve got to keep reducing their taxes so they can reinvest in their businesses because when they reinvest in their businesses, we get more jobs.

 

What impact has a greater emphasis on developing education had on Florida? How will education develop in the future?

Tuition fee increases have been halted. They were increasing at 15 percent plus inflation every year when I came into office. We haven’t seen an increase in four years at our universities or state colleges. We reimburse the schools according to what’s important to students, lower tuition fees and getting a good-paying job when they finish. We have the highest graduation rates of the 10 most populous states. We’ve increased our funding for universities by almost 50 percent since I got elected. The most important thing is that every child has opportunity. It doesn’t matter where you live or how you grew up, I want every child to have the dream of this country

Invest: Miami speaks with Franklin Sirmans, Director, Perez Art Museum Miami

 

When people think about Miami, often, they think about private art collections that have historically driven the arts scene. We are trying to reshape that conversation to include the importance of an institution. Our goal is to be one of Miami’s great public institutions, dedicated to international contemporary arts, reflective of our surroundings, representing the work of the Caribbean and Latin America and a place for community conversation and dialogue. Miami is rapidly evolving right now and is home to more and more arts institutions. There is a real sense of collectivity and a relationship to art and cultural institutions. But, we are also a city that is growing in every single way. Our artists are choosing to live here. We have great programs at the preschool levels up to high school like New World and DASH. Undergraduate programs at Florida International University and the University of Miami are also doing well. There is a foundation strengthening and the conversation is evolving. One of the most important trends has been the evolution of Miami as a year-round destination for arts and culture. There was a time when one talked about an “arts season” but over the years an explosion in the Miami arts scene has led to Miami- Dade being a must-visit location to see important work by a variety of artists throughout the year. One example of this is PAMM’s first major exhibition focused on Jean-Michael Basquiat’s notebooks that ran from August until mid-October. The beautifully organized retrospective of this very important artist and accompanying interactive gallery was well received by visitors and journalists alike during a time that was once considered “out of season.” Miami has indeed become a global arts capital. The biggest challenge is getting people to understand a level of civic interaction that is still part of a young, growing city with people who are coming from all over the world. The biggest challenge is getting everybody to buy in on the idea of representing who we are through our institutions, as opposed to as individuals. That is what we are working on.

Invest: Miami speaks with Lisa Lutoff-Perlo, President & CEO, Celebrity Cruises

 

How have changes in the Miami tourism sector impacted the cruise market?

At Celebrity Cruises, we have seen a growth in a number of areas, including millennial travelers looking for new experiences, requests for off-the-beaten-path destinations, and longer overnights in popular cities. We have also had a surge on our signature sailings, where we take guests to in-demand destination-specific events like Mardi-Gras in New Orleans, celebrating the Pingxi Sky Lantern Festival in Taiwan, Chinese New Year in Hong Kong, Fourth of July in Boston and now we have year-round cruising to the Caribbean. So far, we have not seen a decline with the number of guests we are seeing from Latin America. Our four source markets there have seen steady interest and bookings, and we continue to have new offerings to entice them. Latin America as a destination, continues to be popular for guests. Cuba has become one of the fastest-growing cruise destinations under former President Obama’s “people to people” license encouraging cultural and humanitarian exchanges. There are still some tourism limitations, and we are hopeful that relations will stay strong opening Cuba to all who want the experiences.

What are the main expectations and opportunities with the building of the largest cruise port in the country at PortMiami?

Richard Fain, Chairman and CEO of Royal Caribbean Cruises, has long dreamed of building the PortMiami Terminal. It will have a significant economic impact on Miami-Dade area. The expectations are that the design and flow of the terminal will ease the embarkation and debarkation process for guests, making it easy to experience cruising, access transportation options and navigate their vacation experience without the stress that sometimes comes along with it. The financial implications on Miami-Dade include 4,000 jobs and an annual infusion of $500 million annually.

Record breakers

How Miami is experiencing great tourism numbers despite setbacks

William D. Talbert III. President & CEO – Greater Miami Convention & Visitors Bureau

 

What were the main achievements of Greater Miami Convention & Visitors Bureau (GMCVB) in 2016?

Tourism was up 2 percent in 2016, making it a record year. That is a significant achievement, accomplished as a result of partnerships the bureau has with government, the private sector, Visit Florida and BrandUSA. This is despite a number of serious challenges, including the Zika virus. The governor declared a statewide alert for Zika in February 2016. Miami-Dade County, and specifically the mosquito control division, along with the state health department and various cities, aggressively went after the mosquitos carrying the virus. By December, we had eradicated locally transmitted Zika. It is the first place in the world to do that. The development of a vaccine is now being fast-tracked, so we are really pleased. Hurricane Matthew hit in October 2016, closing the airport over a holiday weekend. Also, tourism from Brazil, which has been our top international market, saw a sharp drop in the first nine months of 2016. For the calendar year 2016 to have record tourism with overnight visitors up 2 percent in the face of Zika, a hurricane, fluctuation in international currency exchange rates and our largest international market down almost one-third, is impressive. Other markets, such as Colombia and Argentina were up double digits. Also of note is that the Miami Beach Convention Center, the region’s largest convention center, is undergoing renovation and expansion. This reduced the amount of business coming to Miami, yet we still had a successful year. That shows the brand is very strong.

Are you concerned about the strengthening of the U.S. dollar and the impact on visitors coming to Miami?

Even with currency issues in countries such as Brazil, visitors from our other top-10 destinations were up. Columbia and Argentina were up double digits. Germany was up a point and a half, the UK was up 5 percent, the Bahamas up 8.5 percent, Costa Rica 1 percent and France 3 percent. So we’ve had these currency issues over time, but only two out of 10 were down.

What are your expectations for the high-end tourism?

Miami is a luxury destination, ranked in the top domestic markets based on hotel inventory. In 2016, we were in the top-five tourist destinations in terms of revenue, which reflects the luxury segment. Much of this is due to the strategy of year-round tourism – with each of the four quarters of the year having about the same number of visitors. Spending increases a little during certain periods, such as during the summer months of July and August, when it is winter is the Southern Hemisphere.

 

Invest: Miami speaks with Jason Barker, President, ChenMed

 

What business advantages do you enjoy from your home base in Miami Gardens?

Our headquarters location is perfect. We are where several highways come together. Because of this, we have easy access to our clinics both north and south. Plus, the busy highway system gives us great visibility. Thousands of potential customers drive past ChenMed every day. We also benefit from a diverse and excellent talent pool with competencies in healthcare. Our centers are multilingual and multicultural, effectively serving, Cuban, Haitian, and African-American patients in convenient neighborhood locations. Our centers are not located in high-rent areas. So, we can focus more resources on serving patients; and can continually test and refine innovative approaches to care. Ours is a culture of love, accountability and passion. Our physicians annually see fewer than 400 patients on average, intentionally. As a result, our physicians frequently see patients up to 12 times per year. Because our patient panels are one-fifth as large as the national average, our doctors nurture outstanding relationships with each of their patients. Better physician/patient relationships, combined with onsite specialists, laboratory tests, medication delivery, and courtesy transportation really make Chen Senior Medical Centers special places – especially for seniors living with major and complex health challenges.

How do technology innovations improve your patient care?

Our nimble IT company, ChenTech, is constantly improving our electronic health records system and other end-to-end technologies designed specifically for medical practices that deliver value-based care. We leverage technology to empower ChenMed doctors, so they can continuingly help patients achieve better health outcomes. ChenTech offers custom services like Silicon Valley – all to help doctors stay focused on patients and best practices.

Invest: Miami speaks with Monsignor Franklyn M Casale, President, St. Thomas University

 

Miami Gardens faces challenges, but we are working with the community. We have many initiatives in both the public and charter schools here, and use state and federal grants to increase educational success. We also have important programs at St. Thomas University (STU) that are geared toward helping mature students who want to begin or complete a college education. We have developed many of our new programs based on what The Beacon Council, the County’s business development agency, has identified as target industries through their One Community One Goal Initiative. To best serve the employment market, we have added market-ready programs in cybersecurity and big data, along with expanded nursing and health sciences offerings. There has been a significant expansion of our business advisory board, and we have a president’s advisory board made up of mostly business people and people who are related to the different fields in each one of our schools. Additionally, we are proud that over 1,200 of our students in our undergraduate, graduate and law programs are Miami-Dade natives. The government has to remain involved in supporting higher education, especially if it is going to be more accessible. We cannot do it ourselves, especially as private independent institutions. Money is not wasted in higher education at STU. We are constantly looking at our finances in order to offer the best for our students. We need to ensure that people appreciate what we are doing and make funds available. The business community also needs to be slightly more forthcoming, not only with resources, but also with opportunities. We have wonderful higher education institutions in this community, and local businesses need to embrace this. They need to consider our institutions while recruiting. The trustees and friends of STU are very generous. We actually have scholarship funds that are entirely created through donations and private foundations. That is how we are able to help provide support for many students. The state and federal governments provide some funding, but it is not enough.

Invest: Miami speaks with Roslyn Clark Artis, President, Florida Memorial University

 

From an education standpoint, what are the main challenges to prepare the workforce for an ever-changing job market?

We need to focus on the technology and innovation sector, which is the significant driver of today’s global economy. We must be particularly mindful of South Florida’s needs. High demand areas like aviation and cyber security require a talent pipeline.

How can universities better connect academia with industry to best facilitate praxis?

Florida Memorial University received a significant grant from the Lilly Endowment and the United Negro College Fund. When we were writing for the grant, there was a planning phase where we met with local industry leaders on campus to talk about what they want to see in graduates, what the current market demands were and the skill sets that industries are looking for. Our faculty members then submitted ideas to better connect academia with the needs of industry. The results have been incredible and give us confidence that we are equipping our students for the jobs the market is demanding.

What are the main efforts being done to ensure the affordability of higher education in South Florida?

I am proud to say that we are the least expensive private institution in the State of Florida. We are trying to keep our costs fat because we understand the difficulties that our population has when it comes to being able to afford higher education. This is why for the past four years our costs have not increased.

How does Miami Gardens factor into the equation?

Miami Gardens is a uniquely strong location. The mayor and members of the city council have taken important steps to seek out new opportunities and investments as well as attract new businesses to the city. The stadium is creating job growth, technology firms are investing in the area and schools are opening. You quickly realize that Miami Gardens is full of opportunities.

Invest: Miami speaks with Cameron D. Benson, City Manager, City of Miami Gardens

 

At one time, the city owned more than 60 acres of land. The philosophy during that time was that by maintaining ownership of the land, the city would control the type of development on the sites. However, I look at it differently. My approach is that by controlling zoning and to some degree the land use, the city can encourage the best development for not only city-owned properties but also for those owned by the private sector. This allows us to attract the right companies and investors to help the city grow in the best way possible. We’ve made changes throughout the city to encourage more investment. One area in particular is the adoption of the Entertainment Overlay District (EOD) along the NW 27th Avenue Corridor. The purpose of the EOD is to encourage various uses, such as movie theaters, hotels, restaurants, retail, commercial and mixed-use opportunities. The $60-million General Obligation Bond (GOB) voted for by city residents has been a tremendous selling point to the private sector looking for opportunities. Once private investors know public investment is being pumped into a community their interest grows, and they are more inclined to invest in the vision regarding those communities. The GOB has sent a positive message to the business and residential communities that the city is willing to take the lead in making investments in its own neighborhoods. This approach has led to attracting more investment opportunities in our city, proving private dollars truly follow public dollars. We have two large tracts of land that are going through a transformation. Both will have a positive impact on our tax revenues for years to come. Finally, we constantly review and restructure the fees that investors pay to the city to ensure they are comparable with other cities. This encourages those who might want to make improvements to their facilities and, of course, for the larger scale developments.

In the zone

How strategic city planning is helping Miami Gardens grow its economy

Oliver G. Gilbert Mayor – City of Miami Gardens

 

What has been the city’s steps to improve development?

While the City of Miami Gardens was created in 2003, it had evolved in an unplanned way. There was neither a central commercial area nor a stream of commerce unique to this area. For this development, we needed control over the largest piece of property, taxpayer or economic generator, but we were the only city in Miami-Dade County that didn’t have any zoning or building control over Hard Rock Stadium. Miami-Dade had that control. We eventually started a series of discussions and we were able to come to an agreement and now share control and we’re the primary voice in what goes there. Having control is important because we are going to develop this area in a way that meaningfully affects how services are provided and what people can do in the city. The latter is the one that transforms the city into a community. We have seen community involvement in the referendum on the stadium. We are now working with Calder Race Course Casino to the north. We are decoupling the racing and gambling. Calder sits on 170 acres of land, and if we decouple the racing from the casino, they can have the casino without expanding gambling, and we can develop the area around it into a place where people can spend money. It will create jobs, improve the tax base, improve the general quality of life and decrease traffic. One way to improve traffic is by having restaurants, shopping and movie theaters closer to where people live. We are developing businesses by helping them to function more effectively. Hard Rock Stadium was a part of that and now we are moving on to Calder. My message is “I’ll be as fast as you are, and make it as easy as I can. What I need you to do is come here and make your money but provide services in a way that creates an added bonus for the people who live here and creates a reason for other people to visit.”

What is being done to attract business?

One of the things that is interesting is that a lot of major commercial corridors in this area were zoned for residential uses, so we changed that and added things like an entertainment overlay that allowed more uses. That means that when you bring your business here, you have more money. You can incentivize people to do things because people act in their own interest. You find a way to make your interests match theirs. The back part of Calder has now been rezoned to part commercial and part industrial. This is because we want to build an office park back there. We can keep the front edge for retail. Property developer Bridge has a huge site that used to be a landfill. We are working with them to transform that into a modern industrial park so that we can bring in more businesses.