East Tampa Business Exchange - University Of South Florida

East Tampa Business ExchangeBrenda GroveGlorida ParhamStephen YerrakaduCherrise WilksFlorida Institute of GovernmentCommunity Real Estate Development: Class 2013

East Tampa Business Exchange PlanA three-pronged approach to community developmentTopic 1DEVELOPMENT CONCEPT –Project Concept, The End inTopic 2MARKET ANALYSIS – Demographics, Community Need,Topic 32mind, Who We Are, LocationMarket Demand, CompetitionDEVELOPMENT SCHEME & SITE PLAN– Density, Zoning,Environmental Constraints, Neighborhood Dynamics, Site Plan,Design Elements, SustainabilityTopic 4MANAGEMENT – Who, Operating Streams, OperatingTopic 5FINANCIAL FEASIBILITY – Development Budget, SourcesTopic 6SWOT & COLLABORATIONS – Strengths, Weaknesses,Topic 7COMMUNITY IMPACT – Job creation, CommunityCosts, Subcontractorsand Uses, Operating Pro Forma, NOI, GapsOpportunities, Threats, Community PartnersRedevelopment, Tax Revenues, Community Image

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East Tampa Map4

DEVELOPMENT CONCEPTOSBORNE AVE34TH STREET5

DEVELOPMENT CONCEPT Project Concept:Corridor of Innovation at Osborne and34th Street in East Tampa. Phase I-East Tampa BayFactory/Business Incubator.Goal:Provide professional office space, training, andprofessional services to help entrepreneurs and existing smallbusinesses reach their scale and have a competitive advantage. Core specialties: Construction and Professional ServicesEnd in mind: Tampa Bay has shown an increase inconstruction activities. The East Tampa Business Exchange is a5,150 sq ft LEED certified building that will provide specificservices to address this high growth industry. 6Who We Are: Consultant to East Tampa Businessand Civic Association.Location: 1614 N. 34th Street, Tampa, FL

MARKET ANALYSIS

COMMUNITY DEMOGRAPHICS2012 FACTS CRA Acres: 4,817Population: 32,789Population % vs. City of Tampa: 8.9%Median Age: 33.2Fastest growing cohort: 65 Median Household Income: Race in East Tampa CRA (2012)African-AmHispanic67%East Tampa: 30,281City of Tampa: 44,438Hillsborough County: 53,288Households: 11,572Avg home price: 120,000Total # of Businesses: 1,057Estimated Business Revenues: 228MTaxable Assessments: 495.2 MRandom Facts: 2 full grocers, 5Banks/Credit Unions, 13Pawnshops/Payday Lenders, 14%lack credit history22%3%8%Source: Social Compact, Claritas, Lambert Advisory, Hillsborough County East Tampa Market Analysis 20128WhiteOther

COMMUNITY NEEDHow do we know the community wants our project?2013 Need for ServicesEast Tampa CRA2008 East Tampa NeedsAssessment862 were surveyed, 568responses. 66% response rate2008 Need for Services: Top 5 Affordable Housing Adult Dental Care Senior Housing Job Training Senior ProgramsWe developed a 2013 surveywith similar questions.150 were surveyed, 76responses. 50% response rate9Job TrainingAffordableHousingPlanning hnologyCenter

MARKET DEMAND ANDCOMPETITIONTAMPA BAY BUSINESS INCUBATORQUICK FACTSPROFESSIONAL SERVICES/OFFICE SPACEQUICK FACTSMost are incubators for Technology,Business Development, HealthcareNo Construction IncubatorsAverage Executive Suite rent permonth: 400Co-working Space Availability:Tampa Bay WaveFirstwave Venture CenterTampa Bay Innovation CenterTampa Bay Technology Incubator (USF)Tampa Bay Research & InnovationCenter (USF)SproutcampUSF Connect10CoworkTampaOxford ExchangeTampa Bay WaveWestshore Centre Club

MARKET DEMAND CONTINUED .CURRENT TAMPA INDUSTRIES 11ConstructionOther Services (HouseholdRepair, Maintenance, PersonalCare, Laundry)Leisure & HospitalityHealthHighest Paying: Information( 61K), Finance ( 55K), PublicAdmin ( 47K)SCOPE OF INCUBATOR 2008-2011 584,860,313 incontract provide by City ofTampaWomen & Minorityfirms/contractors received5.33% or 31 million.Goal is to help these firmsreach scale throughbusiness development forprofessional services and theconstruction industry

DEVELOPMENT SCHEME

Required(ft.) 13YardsRearDistrictCIMinimum(sq. ft.)10,000AreaLot(ft.)SizeDwelling UnitWidthFront 14(sq. ft.)100n/a10InteriorLot/CornerSide 15Corner 8Lot 80010MaximumFAR1.0-1.57MaximumHeight (ft.) 14566. 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 IntensiveX--Permitted principal useS1--Special use--Zoning administrator reviewS2--Special use--City council reviewOffice, business and professionalPublic service facilityPublic cultural facilitySchool, businessesResearch activitySchool, tradesSchool, vocationalParking RequirementsOFFICE:3.3 Spaces per 1,000 sfSite can accommodate 17 spaces, therefore17(spaces )/3.3(per) x 1000sf 5,150 sf allowableXXXXXXXFLOOR AREA RATIO1.0-1.5 (1.5 IF 50% PARKING WITHIN STRUCTURE)LOT 10,366 SFALLOWABLE FAR@1.0 10,366 SFALLOWABLE FAR@1.5 15,550 SF

MANAGEMENT

WhoEast Tampa Business and Civic Association will manageand operate the business incubator. Subcontractors orpartner organizations will be hired to facilitate trainingat the center.3 DIRECT JOBS WILL BE CREATED!!!!!!!!!EXECUTIVE DIRECTOR: Day to day operations, marketing, TAPROJECT DIRECTOR: Coordinating construction training and securingpartnerships.EXECUTIVE ASSISTANT: Technical support to prepare documents formembers17

Operating StreamsBUSINESS SERVICES &TECHNICAL ASSISTANCETRAINING ANDDEVELOPMENTCO-WORK & OFFICESPACEDaily business serviceswill be available for nonmembers (Notary, fax,copy)A few courses will beoffered for free byaffiliates.1day training- 35- 45Certificate Programs: 350 Day and monthlypasses will be offered.Technical Assistance: 75/hour1812 month leasesavailable for 15 offices

RATETIER ONE/FULL SERVICEBUSINESS CENTER 20.00LEASE AGREEMENTNoneFaxing (local, longdistance)Full Service copy(250)Notary ServicesFree Wi-FiCo-work spaceMeeting SpaceOffice SuiteDedicated StorageKitchen/Coffee/WaterUse of Space AfterhoursMailbox24/7 AccessTraining RoomFree Training EventsDiscounted TrainingEvent19 TIER TWO/DAILYRATES OR PASSES 25 day/ 15 eachadditional hour or 135/mo for 10 dailypassesDaily Pre-paySERVICES OFFERED TIER THREETIER FOUR 225/mo 350/mo12 months12 months

Course OfferingsTrainingType of TrainingTarget AudienceEntrepreneurship CoursesBusiness Plan WritingLegal Business Structure & DesignFinancing your BusinessCrowd funding 101MarketingSocial Media for BusinessesNetworking/PartnershipsIndividuals, Sole ProprietorsBusiness Development CoursesLabor Laws 101QuickBooksBonding and InsuranceAccounts Payable/ReceivableIndividuals, Existing Small BusinessesAdditional ElectivesComputer Training for SeniorsMicrosoft Office Electives (Word, Visio, Excel, Access)Why your CPA should be your best friendSo you want to be a SupervisorOffice TechnologyContract AdministrationGrant Writing and AdministrationWhat is an RFI, RFQ, and RFP?Responding to an RFI, RFQ, RFPNeighborhood AdvocacyCitizen Engagement TechniquesIndividuals, Small Businesses, Developers, ConsultantsConstruction CoursesGreen jobs training:-Solar installation-LEED design & construction courses online-Certified Energy AuditorsWeatherization-Window Installation-Insulation Techniques-HVAC installation and MaintenanceAutoCadIndividuals, Small Business Owners20

FINANCIAL FEASIBILITY

ProformaFunding Sources5,150 sq ft BldgTotal Project Cost: 1,012,516Revenue: 507,600Expenses: 415,888NOI: 91,712AmountEquity & Other Sources 574,525City of Tampa Deferred LoanProgram 95,400City of Tampa/East TampaCRATIF Funds 100,000City of Tampa CDBG 35,000Brownfield Assessment/SalesTax 20,000Deferred Developer Fee 77,079First Mortgage 437,9915% for 20 yearsDebt Coverage Ratio222.44%

SWOT & COLLABORATIONS

SWOTWeaknessesNo historical history of running businesses. ETBCA has a history ofa community outreach and a housing developer. This function iswithin our mission.StrengthsBuild local economyEstablish new partnershipsThe incubator will be located within the community that is inneed of those services and will benefit from the job growth.Need to develop a strong marketing plan to get companies tobecome members of the accelerator program and establish thecompany brand.Updated market studyExpand the ETBCA network and professional affiliationsOpportunitiesSWOTAnalysisEstablishing a relationship with private sector partners for grantsor to secure additional funding for the pro forma.Pave the lot next to Jackson Heights Grocery for overflowparkingIf all three parcels are developed at the same time then ETBCAcan take advantage of new market tax creditsETBCA can serve as a liaison or feeder organization to helptrainees apply for jobs with larger construction firms.Accomplished through screening/job fairs24Threats:Delay of the construction scheduleGovernment cutbacks with grant sources/ alternative fundingIncubators may want to expand their construction trainingprogram or business development in the future; which woulddiminish our potential to attract individuals and recruit them forour training programs.Lack of parking around the facilityOpposition from local stakeholders

Collaborations Cityof Tampa: Land and grants Tampa U.S.Bay Builders AssociationDepartment Small Business Association (SBA)-Small Business Development Center (SBDC):Business Development, Marketing, Accounting, Certifications HillsboroughCounty Small Business Information Center: Business Development, Marketing,Accounting, Certifications NationalAssociation of Minority Contractors Universityof South Florida Hillsborough TampaCounty Community College: WeatherizationCommunity Development Corporation: Building construction training

Collaborations ErwinTechnical Center: Business Careers. Health Careers, Design Careers, andIndustrial Careers) Air Conditioning, Building Construction. Carpentry,Drafting, Electricity, Home improvement, Plumbing BrewsterTechnical Center (Adult- Career Programs; Employability,Accounting, Computer Support, CamelotCommunity Care (Tenant, and Referrals) Neighborhood FloridaLending PartnersHousing Coalition U.S.Department of Environmental Protection EastTampa Community Revitalization Partnership

COMMUNITY IMPACT

Community Impact EastTampa Exchange Business Incubator will be the 3rd LEED certifiedbuilding in zip code 33605. Threedirect jobs created Indirect .5-2acres of Brownfield land remediated 12-24 8jobs: 40 by year two, 80 by year threenew start-ups created by year twooffices leased 30companies with membership to the accelerator training program TaxRevenue: Unknown at this time

QUESTIONS?29

Center (USF) Sproutcamp USF Connect PROFESSIONAL SERVICES/OFFICE SPACE QUICK FACTS Average Executive Suite rent per month: 400 . Erwin Technical Center: Business Careers. Health Careers, Design Careers, and Industrial Careers) Air Conditioning, Building Construction. Carpentry,