Rotary Club of Downtown Ormond Beach March 27, Joe Mannarino City of Ormond Beach Economic Development Director

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1 Rotary Club of Downtown Ormond Beach March 27, 2018 Joe Mannarino City of Ormond Beach Economic Development Director 1

2 Once upon time there were 6,000 acres of undeveloped land in Volusia and Flagler Counties 2

3 History of Ormond Crossings The land is located along north US 1 straddling both sides of 1-95 and spanning both Volusia and Flagler Counties. Platted as National Gardens in1921which included thousands of substandard lots and undeveloped right-of-ways. Property was owned by the Flagler Development Corp. which is part of the FEC Railroad. 3

4 History of Ormond Crossings 1998: City Commission envisions a 6,000 acre live-work model of Smart Growth. Encourages public/private investment and promotes long-term land banking of 1,000 acres devoted to a Commerce Park : FEC Railroad sells land to Tomoka Holdings Partnership is formed between City, landowner Tomoka Holdings and Volusia County. City annexes 3,000 acres of property in unincorporated Volusia County. The Flagler County 3,000 acres is not part of the master planned project. Annexation required land takings through the District Court. This project was the last case that the State Legislature that allowed use eminent domain for economic development purposes. Volusia County/City designate Community Redevelopment Area and adopt CRA Master Redevelopment Plan to fund a bridge over FEC railroad tracks. 4

5 Community Redevelopment Area (CRA) Plan City/County approved Community Redevelopment plan July 8, 2004 Primary Elements of the CRA plan: Elimination of faulty lot layout, diversity of ownership, and defective/inadequate street layout Provide for Tax Incremental Financing for Crossings Boulevard Phase One (main arterial road/overpass of I-95) CRA plan caps Tax Incremental Financing (tax revenues generated from growth of property values within the project) City cap is $8 million and leveraging $4 million of County TIF CRA is completed once Crossings Boulevard is constructed and No general fund obligation 5

6 History of Ormond Crossings : Resolve transportation/land use issues with State and County. Plans revised to conform to Florida Growth Management laws adopted in September of 2009 City approves Planned Master Unit Development (PMUD) including: Land use and zoning regulations Covenants for layout of buildings, parking, landscaping of the entire project, including a town centers, office parks, and industrial centers : City Approves 15 year Ormond Crossings Development Agreement specifies terms and conditions between Tomoka Holdings and City that specifies the mitigation requirements and services/facilities to be provided to the City. 6

7 Tomoka Holdings: New Ownership Current: In September 2016, the Ford Family of Deland purchase assets of Tomoka Holdings including Ormond Crossings and 3,000 acres in Flagler County. In September of 2017, Tomoka Holdings sells a 50 acre site in Ormond Crossings Commerce Park to Security First Holdings Security First Managers prepare site and building plans for a 135,000 sf. office building to create a campus for their company. The phase 1 office project is estimate at $30 million and will create 300 new jobs in Ormond Beach with a n average salary of $61,000. The permits were granted in March of 2018 and construction has begun, with a completion date in June

8 Overall Plan for Tomoka Holdings 6,000 acres 8

9 The Plan for Ormond Crossings 3,000 acres Land Use Proposed Total Sq. Ft. Units Retail Commercial 200,000 Office 900,000 Business/Flex-space 350,000 Industrial 800,000 Storage 240,000 Warehouse/Distribution 560,000 Public/Institutional 165,000 Residential in Ormond 2,950 US 1 Frontage (estimate) 1,655,000 Total 4,870,000 2,950 9

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12 Employment and Economic Benefits Employment Benefits build-out) New direct permanent jobs 11,000 Construction jobs 2,500 Economic Benefits 2004 build-out Taxable property valuation: $490,000 $1.7 billion Property Taxes: $11,000 Annual (City) Cumulative (City) Cumulative (County) Franchise Fees - Annual (City) Cumulative (City) Impact Fees/other Cumulative (City) $ 6 million $ 56 million $101 million $ 2.2 million $ 36.7 million $ 23 million Notes: (1) The property taxes in 2004 included all taxing districts. (2) A portion of the Ormond Crossings tax revenue is proposed to be used for construction of Segment 1 of Crossings Boulevard (maximum of $8 million city/$4 million county). (3) Property Values were assumed to increase an average of 2% annually. Cumulative is the buildout period of approximately 22 years. 12

13 Fiscal Impact Summary Gross Taxable Property Value Current - entire City Ormond build out Residential $2.8 billion 75% $745 million 45% Commercial/Industrial $770 million 25% $962 million 56% Projected Cumulative Revenue Ormond Build out (In millions) Franchise Fees & Property taxes Utility taxes Total % Residential $24.5 $ 9.9 $ % Comm./Industrial $31.5 $26.8 $ % Total $56.0 $36.7 $ % Note 1: Includes a deduction of $8 million in CRA funds generated from the development to be used to build Segment 1 of Crossings Boulevard Note 2: At no point over the build-out period does the cumulative fiscal impact of CRA reach a deficit 13

14 Town Center Example Colonial Town Park, Lake Mary 14

15 Office Park Example Heathrow Colonial Center, Lake Mary 15

16 Office Park Example Jacksonville Tradeport, Jacksonville 16

17 Industrial Park Example Westside Industrial Center, Jacksonville 17

18 Target Industries Commerce Park The City of Ormond Beach and Volusia County Economic Development Departments have identified the following targeted industries : Medical Product Manufacturers (Command Medical, Hudson Technologies) Aviation/Avionic Product Manufacturers Marine/Recreational Product Manufacturers Automotive Manufacturing Research Development/Manufacturing 18

19 Next Steps Procure wetland, wildlife, and water quality permits from state and federal agencies for the entire project. Plan and construct roadways and utilities for Phase A, which is partially underway. Market industrial/commercial sites available for construction. 19

20 Questions and Answers Joe Mannarino, Director of Economic Development More information of the City s Economic Development programs visit the City s website: 20