East Tampa Business Exchange

East Tampa Business Exchange Brenda Grove Glorida Parham Stephen Yerrakadu Cherrise Wilks Florida Institute of Government Community Real Estate Development: Class 2013

2 East Tampa Business Exchange Plan A three-pronged approach to community development Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 Topic 7 DEVELOPMENT CONCEPT Project Concept, The End in mind, Who We Are, Location MARKET ANALYSIS Demographics, Community Need, Market Demand, Competition DEVELOPMENT SCHEME & SITE PLAN Density, Zoning, Environmental Constraints, Neighborhood Dynamics, Site Plan, Design Elements, Sustainability MANAGEMENT Who, Operating Streams, Operating Costs, Subcontractors FINANCIAL FEASIBILITY Development Budget, Sources and Uses, Operating Pro Forma, NOI, Gaps SWOT & COLLABORATIONS Strengths, Weaknesses, Opportunities, Threats, Community Partners COMMUNITY IMPACT Job creation, Community Redevelopment, Tax Revenues, Community Image

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4 East Tampa Map

5 DEVELOPMENT CONCEPT OSBORNE AVE 34 TH STREET

6 Project Concept: Corridor of Innovation at Osborne and 34 th Street in East Tampa. Phase I-East Tampa Bay Factory/Business Incubator. Goal: Provide professional office space, training, and professional services to help entrepreneurs and existing small businesses reach their scale and have a competitive advantage. Core specialties: Construction and Professional Services DEVELOPMENT CONCEPT End in mind: Tampa Bay has shown an increase in construction activities. The East Tampa Business Exchange is a 5,150 sq ft LEED certified building that will provide specific services to address this high growth industry. Who We Are: Consultant to East Tampa Business and Civic Association. Location: 1614 N. 34 th Street, Tampa, FL

MARKET ANALYSIS

8 2012 FACTS CRA Acres: 4,817 Population: 32,789 Population % vs. City of Tampa: 8.9% Median Age: 33.2 Fastest growing cohort: 65+ Median Household Income: East Tampa: $30,281 City of Tampa: $44,438 Hillsborough County: $53,288 Households: 11,572 Avg home price: < $120,000 Total # of Businesses: 1,057 Estimated Business Revenues: $228 M COMMUNITY DEMOGRAPHICS Taxable Assessments: $495.2 M Random Facts: 2 full grocers, 5 Banks/Credit Unions, 13 Pawnshops/Payday Lenders, 14% lack credit history Source: Social Compact, Claritas, Lambert Advisory, Hillsborough County East Tampa Market Analysis 2012 Race in East Tampa CRA (2012) African-Am Hispanic White Other 3% 8% 67% 22%

9 COMMUNITY NEED How do we know the community wants our project? East Tampa CRA 2008 East Tampa Needs Assessment 2013 Need for Services 862 were surveyed, 568 responses. 66% response rate 2008 Need for Services: Top 5 Affordable Housing Adult Dental Care Senior Housing Job Training Senior Programs Job Training Affordable Housing Planning & Advocacy Training Dental Services Business Training Technology Center We developed a 2013 survey with similar questions. 150 were surveyed, 76 responses. 50% response rate

10 MARKET DEMAND AND COMPETITION TAMPA BAY BUSINESS INCUBATOR QUICK FACTS PROFESSIONAL SERVICES/OFFICE SPACE QUICK FACTS Most are incubators for Technology, Business Development, Healthcare No Construction Incubators Average Executive Suite rent per month: $400 Tampa Bay Wave Firstwave Venture Center Tampa Bay Innovation Center Tampa Bay Technology Incubator (USF) Tampa Bay Research & Innovation Center (USF) Sproutcamp USF Connect Co-working Space Availability: CoworkTampa Oxford Exchange Tampa Bay Wave Westshore Centre Club

11 MARKET DEMAND CONTINUED.. CURRENT TAMPA INDUSTRIES Construction Other Services (Household Repair, Maintenance, Personal Care, Laundry) Leisure & Hospitality Health Highest Paying: Information ($61K), Finance ($55K), Public Admin ($47K) SCOPE OF INCUBATOR 2008-2011 $584,860,313 in contract provide by City of Tampa Women & Minority firms/contractors received 5.33% or $ 31 million. Goal is to help these firms reach scale through business development for professional services and the construction industry

DEVELOPMENT SCHEME

Required (ft.) 13 Yards Rear District Minimum (sq. ft.) Area Lot Size Width (ft.) Dwelling Unit (sq. ft.) Front 14 Side 15 Interior Maximum Lot/Corner Corner 8 FAR Lot 8 Maximum Height (ft.) 1 CI 10,000 100 n/a 10 0 0 10 1.0-1.5 7 45 6 6. Places of assembly in the CG & CI districts may exceed the maximum permitted height provided that for every one (1) foot of height above forty-five (45) feet, all required yards shall be increased by one (1) foot. 7. The higher applies when fifty (50) percent of required off-street parking is provided within principal structure. Zoning: (CI) Commercial Intensive Parking Requirements X--Permitted principal use OFFICE: 3.3 Spaces per 1,000 sf S1--Special use--zoning administrator review Site can accommodate 17 spaces, therefore S2--Special use--city council review 17(spaces )/3.3(per) x 1000sf = 5,150 sf allowable FLOOR AREA RATIO Office, business and professional X 1.0-1.5 (1.5 IF 50% PARKING WITHIN STRUCTURE) Public service facility X LOT= 10,366 SF Public cultural facility X ALLOWABLE FAR@1.0= 10,366 SF School, businesses X ALLOWABLE FAR@1.5= 15,550 SF Research activity X School, trades X School, vocational X

MANAGEMENT

17 Who East Tampa Business and Civic Association will manage and operate the business incubator. Subcontractors or partner organizations will be hired to facilitate training at the center. 3 DIRECT JOBS WILL BE CREATED!!!!!!!!! EXECUTIVE DIRECTOR: Day to day operations, marketing, TA PROJECT DIRECTOR: Coordinating construction training and securing partnerships. EXECUTIVE ASSISTANT: Technical support to prepare documents for members

18 Operating Streams BUSINESS SERVICES & TECHNICAL ASSISTANCE TRAINING AND DEVELOPMENT CO-WORK & OFFICE SPACE Daily business services will be available for nonmembers (Notary, fax, copy) Technical Assistance: $75/hour A few courses will be offered for free by affiliates. 1day training-$35-$45 Certificate Programs: $350 ++ Day and monthly passes will be offered. 12 month leases available for 15 offices

TIER ONE/FULL SERVICE BUSINESS CENTER TIER TWO/DAILY RATES OR PASSES RATE $20.00 $25 day/$15+ each additional hour or $135/mo for 10 daily passes TIER THREE $225/mo TIER FOUR $350/mo LEASE AGREEMENT None Daily Pre-pay 12 months 12 months SERVICES OFFERED Faxing (local, long distance) Full Service copy (250) Notary Services Free Wi-Fi Co-work space Meeting Space Office Suite Dedicated Storage Kitchen/Coffee/Wat er Use of Space After hours Mailbox 24/7 Access Training Room Free Training Events Discounted Training Event 19

20 Entrepreneurship Courses Training Course Offerings Type of Training Target Audience Business Plan Writing Legal Business Structure & Design Financing your Business Crowd funding 101 Marketing Social Media for Businesses Networking/Partnerships Individuals, Sole Proprietors Business Development Courses Labor Laws 101 QuickBooks Bonding and Insurance Accounts Payable/Receivable Individuals, Existing Small Businesses Additional Electives Computer Training for Seniors Microsoft Office Electives (Word, Visio, Excel, Access) Why your CPA should be your best friend So you want to be a Supervisor Office Technology Contract Administration Grant Writing and Administration What is an RFI, RFQ, and RFP? Responding to an RFI, RFQ, RFP Neighborhood Advocacy Citizen Engagement Techniques Individuals, Small Businesses, Developers, Consultants Construction Courses Green jobs training: -Solar installation -LEED design & construction courses online -Certified Energy Auditors Weatherization -Window Installation -Insulation Techniques -HVAC installation and Maintenance AutoCad Individuals, Small Business Owners

FINANCIAL FEASIBILITY

22 Proforma 5,150 sq ft Bldg Total Project Cost: $1,012,516 Revenue: $507,600 Expenses:$415,888 NOI: $91,712 Funding Sources Amount Equity & Other Sources $574,525 City of Tampa Deferred Loan Program City of Tampa/East Tampa CRATIF Funds $95,400 $100,000 City of Tampa CDBG $35,000 Brownfield Assessment/Sales Tax $20,000 Deferred Developer Fee $77,079 First Mortgage $437,991 5% for 20 years Debt Coverage Ratio 2.44%

SWOT & COLLABORATIONS

24 SWOT Weaknesses Build local economy Establish new partnerships Strengths The incubator will be located within the community that is in need of those services and will benefit from the job growth. No historical history of running businesses. ETBCA has a history of a community outreach and a housing developer. This function is within our mission. Need to develop a strong marketing plan to get companies to become members of the accelerator program and establish the company brand. Updated market study Expand the ETBCA network and professional affiliations Opportunities SWOT Analysis Establishing a relationship with private sector partners for grants or to secure additional funding for the pro forma. Pave the lot next to Jackson Heights Grocery for overflow parking If all three parcels are developed at the same time then ETBCA can take advantage of new market tax credits ETBCA can serve as a liaison or feeder organization to help trainees apply for jobs with larger construction firms. Accomplished through screening/job fairs Threats: Delay of the construction schedule Government cutbacks with grant sources/ alternative funding Incubators may want to expand their construction training program or business development in the future; which would diminish our potential to attract individuals and recruit them for our training programs. Lack of parking around the facility Opposition from local stakeholders

Collaborations City of Tampa: Land and grants Tampa Bay Builders Association U.S. Department Small Business Association (SBA)-Small Business Development Center (SBDC): Business Development, Marketing, Accounting, Certifications Hillsborough County Small Business Information Center: Business Development, Marketing, Accounting, Certifications National Association of Minority Contractors University of South Florida Hillsborough County Community College: Weatherization Tampa Community Development Corporation: Building construction training

Collaborations Erwin Technical Center: Business Careers. Health Careers, Design Careers, and Industrial Careers) Air Conditioning, Building Construction. Carpentry, Drafting, Electricity, Home improvement, Plumbing Brewster Technical Center (Adult- Career Programs; Employability, Accounting, Computer Support, Camelot Community Care (Tenant, and Referrals) Neighborhood Lending Partners Florida Housing Coalition U.S. Department of Environmental Protection East Tampa Community Revitalization Partnership

COMMUNITY IMPACT

Community Impact East Tampa Exchange Business Incubator will be the 3 rd LEED certified building in zip code 33605. Three direct jobs created Indirect jobs: 40 by year two, 80 by year three.5-2 acres of Brownfield land remediated 12-24 new start-ups created by year two 8 offices leased 30 companies with membership to the accelerator training program Tax Revenue: Unknown at this time

29 QUESTIONS?