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The opportunity for Miami

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SUEBMITTED INTO THEPUBUC RECORD FOR IERNSTYOUNG

Quality In Everything We Do

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Formula E ChampionshipRacing for an electric future

The opportunity for Miami

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SUBMITTED INTO THEPUBLIC RECORD FOR

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Formula E can contribute to a global value creation an Miami can bea part of it

rr Social 1

i rGreen Growth

1

Environmental11

194 Savings on healthcareadditional 77 costs from pollution 40 billion saved 25 years

EVs sold millionbillion reduction Japans current

oil barrels consumption

550 billion for consumers Significant quality offuel energy life improvement in

savings NPV cities avoided 2 yearsof Italys annual 900 million

extra sales in the 181 emissions tonnes of CO

car industry billion

17 saved on CO42000 created in the car 1750

costs NPVpermanent industry billion billion

jobs0 Global value creation

o QI 5 r if LOCAL i Average 10 million of visitor spending per event

CO 0 i t 240 jobs per event All the data showed in this document is obtained as

325

a result of Ernst Young calculations which are

3 0 c 25o community pride increase based on

3 Public available datae 3 03

NJC m 1 I Green image experts research studies

en

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S F Brand visibility For a low scenario analysis

Page 2 FIA Formula E Championship The opportunity for Miami JERNST YOUNGQuality In Everything We Do

I1 Introduction Local short term and long term externalitiesOpportunities for Miami

r 11 Longterm Waste Water Environmental 1

economic impact vapi Decrease in Water savings

waste Water quality Energy

City generation improvement

Traditional eventattracIncrease in Renewable

1 recycling and energy1 impact Increase in visitors reuse

tiveness Emissionsdevelopmentmeasurement Ecotourism and airEnergy

quality efficiency

Emissions improvement

Business savingsDecrease in

Air qualityenergy 80M

AiR D consumptionlo million improvement in 5yrspent per event Creation ofby visitors business clusters Educational26 million of Pride Edu

GDPInvestment programs 1 1

tax collectiono

cation Research1 Social value 1

More than 25 1 1JAbout 240 FTE Taxesattraction esearc

Highly skilled 1

jobs generated labor forcerise in the

Income effect community pride Sustainable

Increase inTechnology Political support Social lifestyle

economicdevelopment Positive feedback Increase in Infrawelfare

10 activity quality of life structure

Employment City More than 6 PurchasingMillion image million power

m n cc to Urban

o a the city image Positive renewal3o a and reputation Social feedback

a Pol awareness Change inoo 0 o

a impacts Policy creation lifestyles 3 3 3 Mvr Political supportv

8

o r om N a P0 N mD

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Page 3 FIA Formula E Championship The opportunity for Miami JERNST YOUNGQuality In Everything We Do

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F 0 0 21 Local economic externalit Short term and long termn s N g o externalitiesG O N C4 S

3 Co O ell

w Shortterm externalities Longterm externalities5

0

inF1

4wCity City 41

L

Employ i attrarattrac

1E is x tiven 14000 Business Qo m meat tiveness RD Qc c

N non GDP u z26 million 240 FTE1Obs residents l Investment

Taxes ww x Revenues t

a x

10 meson w

GDPFE generates economic activities far beyond the events The income effect generates a superior household

Taxesorganization The expenditure on one event would spending resulting from the higher level of production Thisgenerate about 26 million of tax collection in the case increase the economic activity in the long term that creates GDP Taxes

of Miami 1employment and improves tax revenues

EmployThe total increase in economic activity improves In the long term FE will indirectly encourage the creation of

ment employment The expenditure on one event would r business clusters that will promote the development of agenerate about 240 FTE jobs in the case of Miami 1

a local highskilled labor force and the development of specific Business

technologies locally available taking as examples the R D

We estimate that a total of 10 million would be spent in clusters UK Motorsport Valley in Northamptonshire andone Formula E event in Miami Dade County by visitors Oxfordshire and the Italian Motor Valley in Modena area

Revenuesmedia officials teams and other related organizations orcorporate buyers for the benefit of local businesses 2

FE will attract investment mostly in the long term throughthe development of research and business clusters

CityFE event will attract tourists that visit the cities in order to

particularly focusing on cuttingedge mechanical Investmentyattend the event We estimate that the FE event organized

attractivein Miami can initially attract 25000 unique visitors being 4

management and electrical engineering as well as fluidHess mechanics

about 56 of them nonresidents

The long term contribution of FE would be modest at best It1 According to Americans for the Arts Arts and Economic Prosperity III The Economic Impact of is hardly conceivable that Formula E would become a keyNonprofit Arts and Culture Organizations and their audiences 2007 al

reason for visiting large cities with many tourist attractions 1

it attractiveCar or not Button will emit over 50 tones of CO2 this season Friday 2 March 2007 is similar to the FE can contribute towards the long term greening of the y

one of FE and adapting Australian Dollar exchange rate and Price Index to the United States OECD hosting cities image especially those spreading a generallyness

August3 Conservative

2012negative environmental perception and therefore attract3 Conserr vatat neg erceive approach based on the Australian Grand Prix figures Ernst Young Tourism

mp p

Victoria The economic impact of the 2011 Formula 1 Australian Grand Prix July 2011 ecotourism

Page 4 FIA Formula E Championship The opportunity for Miami ill ERNSTYOUNGQuality In Everything We Do

22 Local economic externalities Short increase in GDPemployment and tax collection

Direct local economic impact Indirect local economic impact

Economic activity Spending from visitorsIncreased intermediate Income effect through

from event eg lodging restaurantsspending from producers

increased household

organization transports spending

Increased tax revenue for local regional and national government

Brazils example 31 billion for the population in the period 20102014363 million jobs 3 of benefits from indirect economic impact

World Cup 2014 9 billion tax collections

25000 unique visitors Australian F1 GP 1092342 C

QMiami case 11000 county residents and 14000 nonresidents

Estimated economic

benefits from 10 million spent FE event visitors in Miami Dade CountyN n BP

spending fromrr 7s p g 240 FTE jobs

visitors lodgingrestaurant

s 550000 in local tax revenuetransport retail

2050000 in state and federal government tax revenue

Page 5 FIA Formula E Championship The opportunity for Miami J ERNST YOUNGQuality In Everything We Do

23 Local economic externalities Example of Tong term developmentof local clusters and attraction of global investment

Hosting cities will have the

Manufacturing opportunity to attract investmentsAil

Sectors which RD Tourism through the creation of local clusters

contribute to Local The success of the existing clusters

the growth Of Clusteris mainly based on two major

9 strategic assetsAnimation

obbieslocal clusters Communication Local high skilled laborEducation

Specific local technologies

Motorsport Valley I I Motor Valleyc The le

o N ac

example 25000 qualified engineers Over 35000 local employees3

Q 3 i9 of 2 regions 4500 SME 5000 SME

92b turnover 60 ex ported 11 major international investors3 whose RD p it7 O N and economy

30 of sales turnover spent in RD 199b in exports 2008G O N

is7

rDpp O

0ciTi W have 44

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7

benefited

from racing isr

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Page 6 FIA Formula E Championship The opportunity for Miami J ERNST YOUNGQuality In Everything We Do

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i 3 31 Local social externalities Short term and long term externalitiesf 1 3

C 1 ONJ

G 0 N 5 tO c o 3 13

w c Short term externalities Long externalities7 V

V w

G Educ InfraSocia Pride Pride

To welfa Socialstructu

Q

o c re welfarere u z

in a Social Social OJ Cex aware City City awareness Political i

ness image image impactsxw

Social FE w demonstrate the high performance of EVsThe longterm impact will be higher due to the positive Social

communicating the environmental issues linkedfeedback generated by the event and the change in the

awarenessawareness

lifestyle of residentsInhabitants will be directly impacted by the messageRaising the environmental awareness leads to a change Social

During the event there would be a minor disruption of the towards a sustainable lifestyle increasing the quality of lifeSocial welfarelocal welfare incidents overcrowding congestion noise a of locals less environmental impacts more EV etcWelfarepotential decrease on the environmental quality

If the city keeps on hosting FE races and the local feedback CommunityCommunity pride would increase by more than a 25 of the first race is positive the pride will be higher Pride

perceived FE will encourage the populations implicationthrough volunteerism increasing the sense of belonging The impact on the city image will be higher in the long term

Community Locals will be proud of its city hosting such an event as the green image will settle with time FE would becomePride specially for being the first one having a sustainability part of a reputationenhancement strategy aiming to show City Image

component The influence would be higher if the city hosts initiatives towards Cleantech research infrastructure

the opening or the closing race and if the city hosts a race improvement and environmental protection

during the next championship or if it turns into a global The event transforms in a significant way the interest ofreference of the FE championship people and especially students on the EV and sustainability

Education

FE race will make the city more visual to the public and There is a possibility of an urban renewal happening in the

City imagegreen city attractive for tourism and technology research

demand thethcreationcltofa green

conscious

neighborhoods

will

orInfrastructure

therefore in the image of the city to and sports event a

If the organization of the event is perceived as wellecosmart buildings etc

managed by the host city its positive image will increaseErnst Young estimates that FE will contribute by more Locals will demand a political support and the creation of i Political

than 6 million in building the city image and reputation policies linked to EVs renewable energies and sustainability impacts

Page 7 FIA Formula E Championship The opportunity for Miami ill ERNST YOUNGQuality In Everything We Do

32 Local social externalities Raising awareness from a local to aglobal dimension

The objective is to increase the population awareness about environment and sustainability throughthe different forms of the social legacy

Improved image of the cities hosting the Formula EGains in education and training provided by the competitionsexperience and temporary jobsSocial inclusion of underprivileged youngsters and elderly people under volunteering programsActivities oriented towards environmental issues and sustainable developmentImprovements obtained with investments in health and safety

VolunteersTourists and local Global Audience MP

Miami2000 200000 300 2040

i NnIvN 3 m

c c fl

s 1000 volunteers for FE Spectators directly Tourists and locals People following the5 m interested in the attracted by the competition through3 1000 for side events Y p g

W E competition competition different media3 n

Page 8 FIA Formula E Championship The opportunity for Miami J ERNST YOUNGQuality In Everything We Do

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4 Local environmental externalities Measuring local externalitiesQ N

3 g o over the longterm EnvironmentalCU

n 0 ro

rt tirt0 CO 0 Short term externalities Long term externalities

T r r0 N11

4L W

s r tIn1 Vii ItIIr

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CU d i Emissions J J

Emissions and aira

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2 and air MI qualityJ0 cc

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Emissions Hosting the event itself will cause the emission of CO due As a consequence of the social and political awarenessand air to transportation the spectators etc Also the air quality towards sustainability generated by FE race there would bequality will decrease due to the emission of particulate matter emission savings due to an improve of the efficiency the

Emissions and

development of the local EV market and renewable energiesair quality

and higher energy efficiency

Hosting the event will increase the energy consumptionEnergy locally i

In the long term the local energy consumption will decreasedue to social awareness Also there would be an

Energyimprovement on the energy efficiency in the city and a

The event will generate a higher amount of waste coming promotion of green energy sourcesWaste from the event itself and the spectators attending to it

A potential change in the lifestyle of the communities linkedFE race will raise the local water consumption by a y to a raise of the social awareness would lead to an increase

Waste

Waterattendees and the water consumed for staging the event on the recycling habits and a decrease of the wasteAlso there will be a decrease of the local water quality due generatedto pollution and discharges

Hosting the event can cause a raise on the generation of in the longterm the competition could generate waternoise due to overcrowding traffic and so It is important savings and an improvement on the quality of local water

consequence of a social awareness linked toWaterNoise

as it can cause a disruption of the quality of life on locals resources as a consem q

during the event its consumption and conservation

Page 9 FIA Formula E Championship The opportunity for Miami JERNST YOUNGQuality In Everything We Do

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Submitted into the publicrecord in connection with

items D21 on 022813

Todd B Hannon

City Clerk