East Tampa Business Exchange Brenda Grove

Glorida Parham

Stephen Yerrakadu

Cherrise Wilks

Florida Institute of Government

Community Real Estate Development: Class 2013

East Tampa Business Exchange Plan A three-pronged approach to community development

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

FINANCIAL FEASIBILITY – Development Budget, Sources

and Uses, Operating Pro Forma, NOI, Gaps

COMMUNITY IMPACT – Job creation, Community Redevelopment, Tax Revenues, Community Image

Topic 1

Topic 6

Topic 2

Topic 3

Topic 4

Topic 5

2

MANAGEMENT – Who, Operating Streams, Operating

Costs, Subcontractors

Topic 7

SWOT & COLLABORATIONS – Strengths, Weaknesses,

Opportunities, Threats, Community Partners

3

4

East Tampa Map

5

DEVELOPMENT CONCEPT

OSBORNE AVE

34T

H ST

RE

ET

Project Concept: Corridor of Innovation at Osborne and

34th 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

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. 34th Street, Tampa, FL

DEVELOPMENT CONCEPT

6

MARKET ANALYSIS

67%

22%

8%

3%

Race in East Tampa CRA (2012)

African-Am Hispanic White Other

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

Taxable Assessments: $495.2 M

Random Facts: 2 full grocers, 5

Banks/Credit Unions, 13

Pawnshops/Payday Lenders, 14%

lack credit history

8

COMMUNITY DEMOGRAPHICS

Source: Social Compact, Claritas, Lambert Advisory, Hillsborough County East Tampa Market Analysis 2012

Job Training Affordable

Housing

Planning & Advocacy

Training

Dental Services

Business Training

Technology Center

East Tampa CRA

2008 East Tampa Needs Assessment

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

We developed a 2013 survey with similar questions.

150 were surveyed, 76 responses. 50% response rate

9

COMMUNITY NEED How do we know the community wants our project?

2013 Need for Services

TAMPA BAY BUSINESS INCUBATOR

QUICK FACTS

Most are incubators for Technology, Business Development, Healthcare

No Construction Incubators

Tampa Bay Wave

Firstwave Venture Center

Tampa Bay Innovation Center

Tampa Bay Technology Incubator (USF)

Tampa Bay Research & Innovation Center (USF)

Sproutcamp

USF Connect

PROFESSIONAL SERVICES/OFFICE SPACE

QUICK FACTS

Average Executive Suite rent per month: $400

Co-working Space Availability:

CoworkTampa

Oxford Exchange

Tampa Bay Wave

Westshore Centre Club

10

MARKET DEMAND AND

COMPETITION

CURRENT TAMPA INDUSTRIES

Construction

Other Services (Household

Repair, Maintenance, Personal

Care, Laundry)

Leisure & Hospitality

Health

Highest Paying: Information

($61K), Finance ($55K), Public

Admin ($47K)

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

SCOPE OF INCUBATOR

11

MARKET DEMAND CONTINUED…..

DEVELOPMENT SCHEME

Required Yards

(ft.) 13

Rear

District Minimum Area

(sq. ft.)

Lot Size

Width

(ft.)

Dwelling Unit

(sq. ft.) Front 14 Side 15

Interior

Lot/Corner

Lot 8

Corner 8 Maximum

FAR

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

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.

Who

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

BUSINESS SERVICES &

TECHNICAL ASSISTANCE

Daily business services

will be available for non-

members (Notary, fax,

copy)

Technical Assistance:

$75/hour

TRAINING AND

DEVELOPMENT

A few courses will be

offered for free by

affiliates.

1day training-$35-$45

Certificate Programs:

$350 ++

CO-WORK & OFFICE

SPACE

Day and monthly

passes will be offered.

12 month leases

available for 15 offices

Operating Streams

19

TIER ONE/FULL SERVICE BUSINESS CENTER

TIER TWO/DAILY RATES OR PASSES

TIER THREE TIER FOUR

RATE $20.00 $25 day/$15+ each additional hour or

$135/mo for 10 daily passes

$225/mo $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/Water

Use of Space After hours

Mailbox

24/7 Access

Training Room

Free Training Events

Discounted Training Event

20

Training Course Offerings Type of Training Target Audience

Entrepreneurship Courses 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

$95,400

City of Tampa/East Tampa CRATIF Funds

$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

SWOT

24

Strengths

Build local economy

Establish new partnerships

The incubator will be located within the community that is in need of those services and will benefit from the job growth.

Weaknesses

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

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

SWOT Analysis

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

Collaborations

COMMUNITY IMPACT

East Tampa Exchange Business Incubator will be the 3rd 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

Community Impact

29

QUESTIONS?