C7C - Enhance Economic Dev Marketing Budget

Resolutions - C7 C

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission accept the recommendation of the Finance and Economic Resiliency Committee (FERC) for an enhanced marketing budget dedicated to economic development.

The Administration recommends that while the Commission evaluates the enhanced marketing budget specifically dedicated to the promotion of economic development, it also carefully considers several critical factors that will significantly impact the General Fund budget, beginning in FY 2026:

1. The City’s increasing unfunded capital improvement program 2. Long-term General Fund financial projections indicating a potential shortfall in upcoming fiscal years 3. The passage of Amendment 5 in November 2024, which increases the homestead exemption and further constrains the growth of taxable property values.

BACKGROUND/HISTORY

During the October 30, 2024 City Commission meeting, at the request of Commissioner Magazine, the Mayor and City Commission referred an item to the Finance and Economic Resiliency Committee (FERC) to discuss the creation of a standalone marketing budget specifically dedicated to economic development, with the aim to promote Miami Beach as a business destination of choice for targeted industries.

On January 24, 2025, the FERC discussed the subject and unanimously recommended in favor that the City Commission consider an enhanced Economic Development marketing budget during the FY 2026 budget process.

ANALYSIS

Miami Beach is a known for its global tourism, hospitality, recreational amenities and cultural attractions. To ensure sustainable economic growth and resiliency, it is essential to strategically diversify the Miami Beach economic base and appeal to targeted industries and new to market companies and organizations. Industries, such as technology, finance, and professional services have the potential to thrive even further in the Miami Beach business community and are attracted to the location, workforce, and infrastructure. To effectively position the city for future growth, a focused, assertive, and creative marketing strategy and campaign is critical.

Miami Beach’s reputation as a global destination can be leveraged to attract new to market businesses. To do so, Commissioner Magazine would like to explore creating a dedicated marketing budget focused specifically on economic development, that is not commingled with the city’s tourism and cultural promotions and campaigns. A campaign that targets specific industries emphasizes the unique strength of the Miami Beach business community, including quality of life, geographic proximity to the Latin American market, business incentives and programs.

The existing standalone Miami Beach Economic Development marketing budget promotes Miami Beach as a destination of choice for new and existing businesses and works to embed how Miami Beach is interested in recruiting and investing in businesses and talent interested in growing in a forward-thinking business community.

An Economic Development marketing budget typically includes initiatives such as enhancing website content and interactive engagement development, targeted advertising, C-suite engagements, and community outreach to attract new companies and residents. Key aspects of an enhanced Miami Beach Economic Development marketing budget would include:

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Targeted industry attraction: Marketing campaigns aimed at attracting new businesses to Miami Beach, highlighting factors like available commercial space, incentives, skilled workforce, and infrastructure.

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Talent attraction: Promoting the community's quality of life to attract potential employees, including education, family-friendly amenities, housing options, recreational activities, and cultural/sports amenities.

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Business/talent quality of life promotion: Marketing the city's tourist attractions and amenities to appeal to businesses and employees.

Budget components:

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Website development and maintenance: Updating an informative website showcasing the city's economic development opportunities.

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Marketing materials: Designing and enhancing the Miami Beach event booth and collateral, as well as updating and enhancing brochures, flyers, and presentations to distribute at conferences and events.

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Advertising: Placing ads in relevant trade and lifestyle publications, online platforms, and local and national media.

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Public relations: Building deeper and informed relationships with media outlets, influencers, and industry associations to generate positive coverage.

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Decisionmaker engagements: Organizing and attending conferences, business summits, networking events, and small C-suite engagements to connect potential investors with local businesses and city officials.

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Social media marketing: Utilizing social media platforms to engage with potential businesses and residents and employing social media influencers.

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Research and data analysis: Gathering market intelligence to identify target industries and decision-makers and inform marketing strategy.

When establishing an enhanced Economic Development marketing budget, the Economic Development Department and the Communications and Marketing Department would set stretch goals to attract major corporations and emerging entrepreneurs, and messaging that would create deeper and wider buzz about the benefits of relocating and/or expanding a business in Miami Beach, which requires more targeted outreach via innovative, creative, and unique methods that

standout and are memorable. Miami Beach is within a highly competitive region, which also requires an investment in marketing campaigns that are unforgettable.

With additional funding, the Administration can refresh and expand strategies and campaigns with measurable metrics, clear goals and key performance indicators (KPIs) to track the effectiveness of marketing campaigns, such as website traffic, leads generated, and business investment attracted. In addition, the Administration will collaborate and leverage the Greater Miami Convention and Visitors Bureau (GMCVB) and the Miami Beach Visitor and Convention Authority (MBVCA) resources, research, channels, and insights as well as other stakeholders, including local businesses, chambers of commerce, and organizations where leveraging resources and amplifying marketing messages is efficient. Though they are predominately focused on tourism, their reach can be utilized, more meaningfully, with additional funds and a refreshed campaign.

FISCAL IMPACT STATEMENT

Nationally, the average municipal economic development marketing budget is typically considered to be between 1-3% of a city's overall budget; however, this varies significantly depending on the city's size, economic goals, and the level of marketing activity required to attract new businesses and residents. Depending on the comprehensiveness of the desired campaign, depth of the goals and expected outcomes, an annual marketing budget could range from $180,000 to $250,000 or more.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends the enhancement of the marketing budget specifically dedicated to economic development, with the aim of promoting and augmenting the existing marketing budget to expand the reach of key messaging that Miami Beach is a prime destination for targeted industries and talent.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Economic Development

Sponsor(s)

Commissioner Joseph Magazine

Co-sponsor(s)

Condensed Title

Accept Rec/Allocate Funds, Enhance Marketing Budget to Promote Economic Development. (JM) ED

Previous Action (For City Clerk Use Only)