Fort Walton Beach Council agenda — 09-04-12 workshop landmark — reading text

City Council of Fort Walton Beach S- 1p P — kw.„ 107 %, - -- . F— Wage., B — h, FL 32548 b. org Workshop b -- C— . Je... Agenda – 850) 833 -9504 5: 00 PM Council Chamber Tuesday, September 4, 2012 1. Call to Order 5: 00 PM Meeting called to order on September 4, 2012 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL. 2. Invocation 3. Pledge of Allegiance 4. Workshop Items 2. Information (ID # 1921) Discussion regarding Landmark Center Development Staff and the developer will provide an update on the Landmark Center Development. 5. Adjournment The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD #850 -833- 9925 or 1- 800 -995 -8771 ( TDD) or 1- 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service. The video can be All City of Fort Walton Beach council and board meetings are recorded. accessed at www.fwb.org. Printed 812912012 Page 1 City Council ofFort Walton Beach  HAAS CENTER INNOVATIVE RESEARCH INTELLIGENT SOLUTIONS 4 Ccntcr of the Lni— sin of West Florida July 7, 2012 Mr. Ken Wright Partner Fort Walton Development Partners 217 Miracle Strip Parkway, Southeast Fort Walton Beach, Florida 32548 Dear Mr. Wright: The Okaloosa County Economic Development Council, on your behalf, requested that the Haas Center provide an update to Dr. Rick Harper' s estimates of the economic and fiscal impacts of the Landmark Center analysis that he submitted to you on December 28, 2009. At that time, the project was assumed to include approximately 61, 890 feet'- of hotel space, 30, 611 feet'- of retail / hospitality space and 29, 156 feet'- of office /commercial space to be added the downtown Fort Walton Beach area. Since that time, the plans have been updated. We utilized the following adjusted assumptions when creating the updated impact estimates: Total construction costs will now total $24.5 million The hotel will cover 70, 000 square feet, have 90 rooms, a projected occupancy rate of 70 %, and projected average nightly room rate of $130. The Landmark Center will house an apartment complex containing 15 units at approximately 1, 200 feet'- per unit to be leased at $1, 500 per month with a projected occupancy of 90 %. The parking garage will house 305 spaces to be managed by the Center directly. The project will be fully complete on January 1, 2014. Total millage rates for Okaloosa County are assumed to be 0. 003290 for the life of the project, 0. 004538 for the City of Fort Walton Beach, 0. 007690 for the Okaloosa County School District and 0. 000045 for the Northwest Florida Water Management District (updated from 2009). All other assumptions regarding taxing structures are the same as those presented in the 2009 report. Property values are assumed to appreciate at 3% per year over the life of the project. One third of all recurring jobs will be net new employment for Okaloosa County. 1Von r crsrring Constnution Impacts - Utilizing the IMPLAN model, we calculated that the construction phase of the project would generate 286 net new non -recurring jobs over the life -span of the construction phase along with $36. 3 million in net new sales to the Okaloosa Count: econom). Reczrrrzng Impacts - Utilizing national per -square -foot estimates, we calculated that the retail space would generate 50 direct jobs at the site. We utilized the data presented above to calculate that the hotel would generate $ 2. 99 million per year in. The average annual sales per worker for the accommodations industry in Okaloosa County is $ 130, 000. We calculated that accommodations sales totaling $2.99 million in Okaloosa County would therefore likely generate 27 new jobs along with $149,457 in bed tax collections annually. We assumed that the parking garage and the apartment complex would employ approximately 8 full and part -time individuals directly. Summing across these figures, we therefore calculated that the project would generate 85 I 1 U \ Iuun I iu' u r iie Ir Ili ul ,,:: ri! R nl' trisT 2 l; nm ?. 511 11 1 17 haas. uwf.edu direct jobs in Fort Walton Beach. Inputting these figures into the IMPLAN model to calculate the total effects, we estimated that these 85 direct new jobs would generate an additional 29 jobs ( indirect and induced) for a total of 115 recurring jobs associated with the Landmark Project. These 115 recurring jobs will generate approximately $2. 7 million in local wages and income to proprietors of local firms and account for $9. 7 million in added local sales annually. Approximately 1/ 3 of this total is conservatively expected to be net new jobs / wages / sales to the Okaloosa County economy. Over the first 15 years, the Landmark Center operation is forecast to generate $ 1. 6 million in ad valorem property taxes for Okaloosa County, $2. 1 million for Fort Walton Beach and $ 3. 7 million in other ad valorem tax revenues almost all of which will flow to the Okaloosa County School district. annual forecast figures on incremental tax revenues appear in the table below. Additional Annual Ad Valorem Revenue due to Proposed Project Year TIF Non -TIF Total 2014 187, 628 206, 849 394, 477 2015 193, 282 213, 029 406, 311 2016 199, 107 219, 393 418, 500 2017 205, 106 225, 949 431, 055 2018 211, 286 232, 701 443, 987 2019 217, 650 239, 656 457, 307 2020 224, 206 246, 820 471, 026 2021 230, 958 254, 198 485, 157 2022 237, 913 261, 798 499, 711 2023 245, 077 269, 626 514, 703 2024 252,455 277, 688 530, 144 2025 260, 055 285, 993 546, 048 2026 267, 883 294, 547 562, 429 2027 275, 945 303, 357 579, 302 2028 284, 250 312, 431 596, 681 TOTAL 3, 491, 061 3, 845, 850 7, 336, 911 Naturally, our estimates are based on a series of assumptions that inform the calculations made here. We provided an updated list of the assumptions above. All other assumptions used in the calculations are the same as those presented by Dr. Harper. Estimates on the total construction costs were provided by the client and were not independently verified by the Haas Center. Changes in the overall tax rate structure will necessarily affect the outcomes presented here. On behalf of the Haas Center team, I ----> Christopher " Rod" Lewis  9/ 4/ 2012 Landmark Center Project Fort Walton Beach. Florida Presented Oy Kay Rasmussen Vice President Community & Economic Development Economic Development Councll of Okaloosa County. FL City of Fort Walton Beach Landmark Development Items Addressed Economic Development Council Landmark Development What is it? What is the need? What are the benefits? Economic Development Council of Okaloosa County The Economic Development Council of Okaloosa County, Florida, Inc., the EDC A non -profit private -public partnership Governed by a volunteer board of directors. Set of bylaws and a code of ethics. 4 full -time employees and 2 independent contractors on a part-time basis. The EDC is assisted in accomplishing its objectives through community partnerships. Focus: creating an environment for business retention, expansion and attraction; creating jobs, retaining jobs, increasing tax base, enhancing QOP 1  9/ 4/ 2012 Landmark Development 4% Mixed Use Development Currently undeveloped, non -revenue generating property Retail Space Class A Office Space Hotel: 90 rooms Apartments: 15 units Parking Garage: Approx. 343 spaces Identified Need Downtown Revitalization Diversification Competitive Advantage Tourism t t 2010 -11 31. 98 %; 2011 -12 I33% (to date) FWB & Oksloosa Island $ 16, 337, 227 05 Destination In State Extended Stay Facilities JSF Training Center, 500 students, - 9 month rotation 7SFG, Army TDY Training Emerald Coast Technology & Research Center