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Home My WebLink About2010 04 26 Regular 602 Results Of Economic Report Jetta Point Park COMMISSION AGENDA Consent ITEM 602 Informational Public Hearing Regular X April 26, 2010 MGR. /DEPT. Regular Meeting uthorization REQUEST: Land Design Innovations, Inc. (City consultant) is presenting the results of a limited economic analysis report on the Jetta Point Park property located in the southwest quadrant of the S.R. 434 and S.R. 417 (Greeneway) interchange. SYNOPSIS: Pursuant to Commission direction, Land Design Innovations, Inc (LDI) prepared a limited economic analysis report on the 43 acre site where the Jetta Point project is currently proposed. This report looked at the current property taxes that would be generated by this property if it were vacant and not government owned. The report also analyzed two design scenarios for the property and projected the total property tax revenue generation based upon each of the two scenarios. CONSIDERATIONS: The subject property encompasses approximately 43 acres with 33 of those acres located within the City of Winter Springs. Seminole County has been working on the development of a regional park on this property and is nearing the end of the approval process with the City of Winter Springs and the City of Oviedo. The construction cost for the park is estimated at $9.9 million with an annual maintenance cost of $650,000 to $700,000. The subject report examined only the current vacant land taxable value along with the theoretical maximum buildout scenario and a more typical commercial buildout alternative along the lines of Heathrow. Site constraints, site access, development costs, or ownership issues were not addressed as part of this report. FISCAL IMPACT: There is no fiscal impact inherent in the preparation of the report but the obvious fiscal impact is tied to the differences in the potential taxable value of the property as detailed in the report. COMMUNICATION EFFORTS: No communication efforts beyond the advertising of the agenda are necessary in conjunction with this agenda item. RECOMMENDATIONS: Staff recommends that the City Commission receive the Jetta Point Economic Impact Analysis as prepared by LDI and take any action they deem appropriate. REGULAR MEETING - APRIL 26, 2010 REGULAR AGENDA ITEM "602" PAGE 2 OF 2 ATTACHMENTS: "A" — Jetta Point Economic Impact Analysis ATTACHMENT A CITY OF WINTER SPRINGS JETTA POINT ECONOMIC ANALYSIS Table of Contents I. PROJECT SUMMARY 1 II. CURRENT TAXES FOR THE PROPERTY 1 III. PROPOSED USE OF THE SITE 2 IV. PROPOSED COST TO MAINTAIN SITE 2 V. COMMERCIAL ALTERNATIVE BUILDOUT SCENARIOS 2 A. Scenario 1 — Proposes Complete Buildout of the Site 2 B. Scenario 2 — Proposes Buildout Similar to a Comparable in Heathrow 2 .CanI?9esi9n 9nnovalions, 9nc. Page i G:\Projects \01 \01026.34 Winter Springs ED\Data \Jetta Point Park \JettaPtAnalysis_v2.doc CITY OF WINTER SPRINGS JETTA POINT ECONOMIC ANALYSIS Jetta Point Economic Impact Analysis I. Project Summary Seminole County purchased several commercial designated parcels at the intersection of SR 434 and SR 417 for a total of 43 acres. Of the 43 acres, approximately 33 acres are located within the jurisdiction of the City of Winter Springs. Jetta Point Parcels within the City of Winter Springs Total Assessed Parcel Acres Value 213104300002C0000 0.10 $23,720 213104300002Y0000 0.17 $101,342 213104300002Q0000 0.21 $11,108 21310430000200000 0.35 $100 213104300002X0000 0.37 $107,811 213104300002W0000 0.47 $99,188 213104300002P0000 0.49 $144,466 213104300002K0000 0.97 $72,000 213104300002T0000 1.02 $72,000 21310430003100000 1.03 $269,528 213104300002G0000 1.16 $80,640 21310430003500000 1.17 $80,640 21310430003200000 1.19 $90,000 213104300002V0000 1.21 $90,000 213104300002E0000 1.46 $105,120 213104300002D0000 5.11 $481,310 213104300002F0000 6.46 $568,226 213105300002A0000 10.78 $134,784 TOTAL 33.73 $2,531,983 Source: Seminole County Property Appraiser, 2009. Note: No property tax is collected because of public ownership. II. Current Taxes for the Property Since the County is the current owner of the parcels, no taxes are currently collected for the 43 acres under public ownership. The current assessed value for the properties as vacant commercial uses is identified as $2,531,983 on the Seminole County Property Appraiser's site, and when you apply the City and County mileage rates would generate $45,817 per year in taxes (several assumptions were made, as defined in the table on the following page). LanaTJesijn 9nnovations, 9nc, Page 1 G:\Projects \01 \01026.34 Winter Springs ED\Data \Jetta Point Park \JettaPtAnalysis_v2.doc CITY OF WINTER SPRINGS JETTA POINT ECONOMIC ANALYSIS Estimated Taxes Total I stintatcd 'Taxable 2009 (;its 2009 Countv Estimated Counh Estimated Values NitIlage N1illage City Tax Tax 'Total "I'. . $2,531,983 0.0025814 0.0155138 1 $6,536 1 $39,281 1 $45,817 1 *Note: This scenario assumes the vacant commercial property is under private ownership and would owe property taxes and that there are no exemptions. III. Proposed Use of the Site The County has proposed a large regional park for the property, called Jetta Point Park. The proposed park is planned to contain a pavilion and restroom area, a boardwalk, 4 lighted multipurpose athletic fields, 4 lighted softball fields, a destination playground and tot lot. Jetta Point Park is estimated to cost $9.9 Million to construct the park as planned. The primary funding source will be the County's Tourist Development Tax. IV. Proposed Cost to Maintain Site The Seminole County Department of Fiscal services has estimated that the average annual cost to the County for maintenance of Jetta Point Park will be in the range of $650,000 to $700,000 annually. V. Commercial Alternative Buildout Scenarios Since the project is located within the SeminoleWay corridor alternative scenarios were reviewed with the types of targeted high tech industries proposed within the corridor. A. Scenario 1— Proposes Complete Buildout of the Site If only the City property (33.73 acres) is analyzed for the economic impact of the development of the site as commercial, at the maximum floor area ratio of 0.5 FAR a total of 734,639.40 square feet could be built on the site. Based upon a 3 -story office complex in Heathrow the buildings were being assessed in 2009 at $87 per square foot, so this number was used as the assumption. The quick analysis below determines that this absolute maximum buildout scenario could generate as much as $1,162,563 in taxes annually based on 2009 Seminole County comparable values. Total Estimated Taxable 2009 Cite 2009 County Estimated Count■ Estimated Values N1illaye Millage City Tax Tax Total Tax $64,247,054 0.0025814 0.0155138 $165,847 $996,716 $1,162,563 B. Scenario 2 — Proposes Buildout Similar to a Comparable in Heathrow Since it is often unrealistic for any property to develop at exactly the maximum floor area ratio allowed, a more realistic scenario was also developed. A currently developed multi- story office property was located in Heathrow right next to the Interstate also that was 44 acres and had 247,764 square feet. Since the subject parcel is 43 acres, this was determined Ana'f'esiyn 9nnovations, 9nc, Page 2 G:\Projects \01 \01026.34 Winter Springs ED\Data \Jetta Point Park \JettaPtAnalysis_v2.doc CITY OF WINTER SPRINGS JETTA POINT ECONOMIC ANALYSIS to be good comparable. This property is assessed at equivalent to $87 square foot or a total of $21,667,919 for the 247,764 square feet. Again, the quick analysis below demonstrates that the estimated tax revenues from the property are anticipated to be $392,085 annually. The estimate is slightly off since about 10 acres of the property are located in unincorporated jurisdiction only. However, it is realistic to assume that the tax revenue could be in a range from $350,000 to $1,162,000 based upon these two scenarios. '1'01.11 I stintatccl Taxable 2009 CitN 2009 CountV Estimated Cou Estimated Values ]\1illatc Iblillage City Tax Tax Total Tax $21,667,919 0.0025814 I 0.0155138 1 $55,934 I $336,152 $392,085 Source: Seminole County Property Appraiser, 2009. Lan f1Jesign 9nnova6ons, 9nc. Page 3 G:\Projects \01 \01026.34 Winter Springs ED\Data \Jetta Point Park \JettaPtAnalysis_v2.doc