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HomeMy WebLinkAbout1996 04 09 Commerce & Industry Development Board Meeting Minutes c c c MINUTES COMMERCEIINDUSTRY DEVELOPMENT BOARD APRIL 9, 1996 REGULAR MEETING 1. Call to Order Chairperson Lup called the meeting to order at 8:20 a.m. in the conference room, city hall. 2. Roll Call City Staff. present John Bush, Mayor, present Ron McLemore, City Manager, present Mel Glickman, present Jim Lup, Chairperson, present Sally McGinnis, present Jackie Gieseler, present Walt Dittmer, present Tom Grimms, Comm. Dev. Coordinator 3. Approval of March 13. 1996 Minutes (this item followed item #4) Chairperson Lup asked for the boards approval on the minutes. 'Motion by McGinnis. Second by Mayor Bush. All ayes. Motion carried. 4. Special Guest. Roger Owen--Discussion of developing in Winter Springs Chairperson Lup welcomed Owen to the meeting, and explained that he invited him to speak about ideas he may have to attract new businesses and/or maintain existing businesses. Owen thanked the board for the invitation. He added, it was nice to see the Mayor and the City Manager at the meeting because when he was on the Commerce/Industry Development Board years back they didn't attend. Owen is a realtor who purchased six and a half acres along S.R. 419 (at Edgemon Ave.) back in 1984 with two other partners. The land is divided up into half acre lots. He said they have decided to stay within the range of 6,000-10,000 square foot buildings. One of his tenants builds and sells remote controlled airplanes; the finished product sells for $15,000-$20,000. Off the subject, Owen wanted to know why Moss Road's speed limit is 25 MPH and Edgemon Avenue (one block over) is 20 MPH. He (Owen) passed around a frame with pictures of the buildings on the property. The assessed value of the property is $1,718,000 which is 2.2% of the city's assessed value of$750 million. c MINUTES COMMERCEIINDUSTRY DEVELOPMENT BOARD APRIL 9, 1996 (REGULAR) MEETING PAGE 2 He explained the difficulties in getting loans from different size banks. He also compared cost from 1984 to 1995. Site Plan Review from Winter Springs Bank Appraisal Building Permit Septic Tank (yearly test of septic-$225.00) Closing Cost to Bank Impact Fees In 1984 no charge $ 250.00 $ 450.00 $1,000.00 In 1995 $1,000.00 $1,900.00 $1,706.00 $6,000.00 $3,000.00 no charge $5, 746.00 $16, 523.00 City " no charge (Impact fees represent 8.5% of the total cost of the building) $4,014.00 County Engineering Inspection Water Connection Deposit Intermediate Service Charge no charge no charge no charge no charge $ 300.00 $ 482.00 $ 210.00 $ 296.82 c To build the 6000 square foot building (1/3 office, 2/3 warehouse) in 1984, it cost $173,000.00. To build that same building in 1995, it cost $239,550.00. The price does not include the cost of the land. About a $67,000 increase in cost in that time period. The Industrial Park has city water, but not sewer. Glickman asked if the property could get sewer. Owen said, yes, ifhe pays $60,000. A couple of years ago, he came to city hall to hook up to sewer because of Broadway Gymnastics having an oversized septic. Broadway Gymnastics wanted to build a 3000 square foot addition on the building; he (Owen) wanted the city to contribute something towards the sewers. Warehouse impact fees are a lot less, but the city looked at the building (Broadway Gymnastics) as retail. The City's retail impact fees cost $32, 529.00 for the 11, 600 square foot building. The County's impact fees were $27,326.00. Glickman asked, if the city was trying to attract businesses, in what areas could the city help the businesses. Owen said, water and sewer. In 1984, it cost him $90,000 to put in stormwater, a deceleration lane, city water, and the access road. c Chairperson Lup asked how the City of Winter Springs could compete with other locations. Owen said that he is building on Belle Avenue (Casselberry side). Casselberry's impact fees are $1,465.00. Casselberry doesn't have a transportation impact fee. Glickman asked what the impact fees would cost for the same building in Winter Springs. Owen answered, approximately $26,000. Mayor Bush said he thought impact fees were required by state law. Manager McLemore said impact fees are choices made on how to fund infrastructure that is committed to bill on the comp plan. Every community is different based on what it has to finance. Manager McLemore said that a study could be done of all of the surrounding communities on the impact fee structure. Owen added, the county's impact fees for the new building is going to be $11,900. The water tap fee in Winter Springs is c c c MINUTES COMMERCEIINDUSTRY DEVELOPMENT BOARD APRIL 9, 1996 (REGULAR) MEETING PAGE 3 $482.00, and the water tap fee in Casselberry is $2,000.00. This shows that different cities get monies from different departments. Owen stated that he has been working with the city for 11 years; he really doesn't have any complaints except for the 20 MPH speed limit on Edgemon. Glickman asked what other incentives in addition to water/sewer and impact fees the city could work on to get new businesses. Owen said he doesn't expect a 100,000 square foot business to locate into Winter Springs. His theory is that people will build their business in direct relationship to where they live for convenience purposes. He said that there is only a couple of places to put an industrial park (Ex: Sanford-Oviedo Road) Manager McLemore said impact fee problems are not dealt with easily. Owen asked if the city was permitted to own land, then lease or sell to owner occupants. Manager McLemore said the city's dilemma on owning property would be the same as a private business. Glickman asked if the city could go into partnership with a business. Dittmer said that it should be a partnership without the business knowing it. Mayor Bush said that he worries a little about the city taken on something like that; it would have to be iron-clad. His idea would be to ask the citizens if they wanted to have an economic development fund. Manager McLemore said that in this day and time government ought to stay out the private sector. He also spoke about tax increment financing. Owen said that if he had a choice of either free impact fees, or water/sewer and paved streets; he would take the paved streets and water/sewer. Discussion. Owen asked how much money was in the Transportation Impact Fee Fund. Manager McLemore said that Owen is asking all of the same questions he is asking, and in the next couple of weeks he (manager) will know where the monies are coming from and where they will be going. The City Manager held up a book listing all of the capital projects for the next five years. Most of the projects are utilities, roads, and stormwater. He (manager) has to go through each fund and do a five year projection on revenues, then apply the needs against the revenues. This city has never had a financed five year plan. The answers to revenue and expense questions will be tied up in a package real soon. Manager McLemore continued, the biggest dilemma is development ready sites. Chairperson Lup asked what he meant by development ready sites. He answered, 1) a tract of land needs to be owned by someone who can control it; it's virtually impossible to build an industrial park when the property is owned by ten or twenty people. 2) The land has to be zoned properly for the type of use. 3) It has the infrastructure at its front door. Presume that the business (or private) sector can raise the capital it needs to turn the undeveloped property into productive uses. Winter Springs doesn't have a lot of development ready sites, but there is potential. There are areas owned by people who don't want the land developed, or owners live elsewhere with no desire to sell the property. The starting point is getting the property in the hands of someone who wants to develop it. Chairperson Lup suggested having a policy stating that the city will provide the water/sewer and road services. Manager McLemore said that is the first step. Try to gear the infrastructure dollars to the areas that have development potential. The actions have to be consistent with the goals. He said that government can try to have these potential sites ready (from an infrastructure point of view) before development. There are caps on industrial bonds. Owen asked, "Caps in total dollars?" Manager McLemore said yes, because of new tax rules the dollars have been minimized. In the city manager profession, water r- ~ MINUTES COMMERCEIINDUSTRY DEVELOPMENT BOARD APRIL 9, 1996 (REGULAR) MEETING PAGE 4 and sewer was always used to control growth where they wanted growth to happen. That has become more difficult in recent years, but that is the game. The city can find the potential areas then make sure that the resources are directed at trying to get infrastructure to these places. Owen said that water retention is another important item. Example: S.R.419 needs a deceleration road. Can the city come in and say, (as part of the impact fees) go ahead on the deceleration road. Manager McLemore said that the city could on a collector road. If the Polymer's area was developed as an industrial park, there would be problems ten years down the road with the surrounding residents. McGinnis said that there needs to be a planned, educational campaign first so people can understand. Owen said that tangible tax is also more income to the city. Manager McLemore informed everyone that he feels strongly about the city trying to net at least another 100 acres, if possible, to smaller type projects like Owen has worked on. The city needs to build a Public Works Center, and maybe that can be an anchor for another industrial park. He (manager) said he wants to work with the Commerce/Industry Development Board; he is also going to be talking to another industrial developer (consulting basis) to see what the city can do. Property owners names are being assembled now to start the process of trying to plan where one or two small (60-80 acres) industrial parks could go. Owen suggested driving around the Big Tree Industrial Park on C.R. 427 in Longwood. He also mentioned that Northstar has some lovely buildings. (Route 46 towards Towne Center) c Mayor Bush said that the City Manager has asked for the board's consent to pursue finding property to house the types of businesses that Owen has put up. Chairperson Lup asked the members if they were in favor. No one voiced opposition. Chairperson Lup said that it was fine with the board. Mayor Bush suggested to Chairperson Lup that the Commission be kept informed regularly. Chairperson Lup said he would give them a report. The board members agreed to have a workshop meeting on April 22, 1996 (8: 15 a.m.) to finalize the details of the breakfast meeting and the community map. Chairperson Lup asked Manager McLemore to attend the workshop. Glickman stated that the Commission voted on the expenditure of $600.00 to include the map with the mailing of the Winter Springs Bulletin. Mayor Bush said that the city needs to get publicity out to the businesses about it. Glickman said that they print half of the amount of total residents of the city which is about 13 or 14 thousand copies, and it will take about four months to produce. 5. Unfinished Business A) Discussion of Community Map Company's contract c This item was tabled until the workshop. r- '-" c ,....., ~ MINUTES COMMERCEIINDUSTRY DEVELOPMENT BOARD APRIL 9, 1996 (REGULAR) MEETING PAGE 5 B) Update on 434 Visioning Project No comments. C) Discussion of Brealifast Meeting/Letter to Business Owners This item was tabled until the workshop. 6. New Business No Comments 7. Adjournment Chairperson Lup adjourned the meeting at 9:40 a.m.