Fort Walton Beach Council agenda — 08-10-2007 special agenda - Landmark — reading text

Florida, and identified as Okaloosa County ParcellD # #24- 25- 24- 0300- 000A-0070, 24- 2S- 24- 0300- 000A-006B. 24-2S- 24- 0300-000A- 001A and 24- 25- 24- 0300- 000A- 001 B. Ordered this 14 day of August, 2007, in Fort Walton Beach, Florida. 2007 Date of Issuance Mike Anderson, Mayor City of Fort Walton Beach, Florida This Order was prepared by: Approved as to form and legal sufficiency: Missy' McKim, CDS Director T-oni L.-Craig. Florida Bar No. 115444 City of Fort Walton Beach City Attorney, City of Fort Walton Beach PO Box 4009 244 Racetrack Rd NE Fort Walton Beach, FL 32549 Fort Walton Beach FL 32547 Development Order - CRA Site Plan Approval Page 30f4 CRA Case # 06- 16- SP ATTEST: CITY CLERK Page 40f4 CRA Case # 06- 16- SP Development Order - CRA Site Plan Approval  Exhibit " A" Location Map 206 Perry Ave. SE City of Fort Walton Beach Community Development Services o 800 Feet Scale N W.. S Prepared by the City of Fort Walton Beach Engineering Division  Exhibit " B" Zoning 206 Perry Ave. SE City of Fort Walton Beach Community Development Services 100 200 300 400 Feet Scale N w*. S Prepared by the City of Fort Walton Beach Engineering Division Legend I CityUm~s R- 1 SINGLE FAMILY D R- 1A SINGLE FAMILY B R- 1E ESTATE SINGLE FAMILY R- 2 MULTIPLE FAMILY R- 2A MULTIPLE FAMILY R- NC RES. - NEIGHBORHOOD COMM. YC YACHT CLUB MUCC- 1 MIXED- USE COMMUNI1Y COMM. MUCC- 2 MIXED- USE COMMUNI1Y COMM. D MUW-12 MIXED- USE WATERFRONT 12 DU MUW-18 MIXED- USE WATERFRONT 18 DU MUW-24 MIXED- USE WATERFRONT 24 DU MUMS MIXED- USE MAIN STREET C- 1 LIMITED COMMERCIAL C- 2 GENERAL COMMERCIAL HC HIGHWAY COMMERCIAL P- 1 PROFESSIONAL OFFICE DISTRICT m P- 2 PROFESSIONAL OFFICE DISTRICT M- 1 Vl/HOLESALE & LIGHT INDUSTRIAL M- 2 INDUSTRIAL PARK CF COMMUNI1Y FACILITIES D DR- 3 NEIGHBORHOOD RESIDENTIAL DC- 3 COMMUNI1Y COMMERCIAL EF EDUCATIONAL FACILITIES OS OPEN SPACE AND RECREATION IC2I NOT ZONED  Exhibit " C" Future Land Use 206 Perry Ave. SE City of Fort Walton Beach Community Development Services o 100 200 300 400 Feet Scale N w.. S Prepared by the City of Fort Walton Beach Engineering Division Legend City Limits FLU- CODE D COUNTY CONSERVATION EDUCATIONAL GENERAL COMMERCIAL HIGHWAY COMMERCIAL INDUSTRIAL PARK D LOW DENSITY RES. LIGHT INDUSTRIAL MEDIUM DENSITY RES. MIXED USE COMMUNITY COMM. MIXED USE MAIN STREET D MIXED USE WATERFRONT 12 DU MIXED USE WATERFRONT 18 DU MIXED USE WATERFRONT 24 DU PRIVATE & SEMI- PRIVATE CLUB PUBLIC LAND REGIONAL COMMERCIAL l1li RECREATIONAL  Exhibit " 0" Existing Land Use 206 Perry Ave. SE City of Fort Walton Beach Community Development Services o 100 200 300 400 Feet Scale w.. S Prepared by the City of Fort Walton Beach Engineering Division Legend I City Limits ELU- CODE COMMERCIAL mm COUNTY - ENCLAVE IIIiI EDUCATIONAL INDUSTRIAL D LOW DENSITY RES. LOW MEDIUM DENSITY RE MEDIUM DENSITY RES. OFFICE PUBLIC LAND & BLDGS. R PARKING IB1 RECREATIONAL RELIGIOUS TRANSIENT LODGING UTILITIES D VACANT  ATTACHMENT G July 5, 2007 Mr. Eric Nathan Weener & Nathan, LLP 5887 Glenridge Drive, NE Suite 275 Atlanta, Georgia 30328 RE: Updated Tax Increment Analysis Report, Landmark Development Dear Eric, You have asked us to provide estimates of the likely gross fiscal impact of your firm' s proposed Landmark real estate development project. The following analysis presents calculations of the additional revenue flows to the City of Fort Walton Beach' s Community Redevelopment Agency Trust Fund (the Tax Increment), as well as non- CRA ad valorem revenues, that are likely to result from this development. This letter presents a summary of the analysis and an Appendix contains a more detailed description of the methods underlying the calculations. We first provided a report to you on February 16, 2007, and the current report contains an update of the February calculations. We have included a new millage rate for the City of Fort Walton Beach ( now at 4.1634mills), a new number of condominiums ( now at 38), and a new cost per square foot of construction (now at $ 190 per square foot). We have left millage rates unchanged for other taxing entities based on statements from those offices that they do not have updated millage rates to report at this time, notwithstanding the June 2007 Florida special legislative session. Positive fiscal impacts primarily flow from property improvements that will generate additional ad valorem property tax revenues above and beyond those generated by the parcels' current use. The cumulative dollar value of the tax increment flowing from the additional ad valorem property taxes from just the direct increase in value from your specific project to the CRA Trust Fund beginning in 2007 and concluding in 2027 is calculated to be $ 5.4 million. Additionally, the project will generate $ 6.1 million over that time period in ad valorem tax revenue that flows to non- CRA taxing authorities, primarily the Oka100sa County School District. Year by year figures on incremental tax revenue are provided in the table below. The column labeled " Total Additional" represents the amount of additional ad valorem tax revenue expected to governmental entities as the proposed development is brought to completion.  Additional Annual Ad Valorem Revenue due to Proposed Project Year TIP Non-TIP Total Additional 2007 $ 5, 055 $ 7,435 $ 12,491 2008 $ 5, 529 $ 7, 961 $ 13 ,490 2009 $ 151,488 $ 169, 728 $ 321, 216 2010 $ 162, 702 $ 182, 157 $ 344, 859 2011 $ 174,784 $ 195, 547 $ 370, 331 2012 $ 187, 802 $ 209, 976 $ 397,778 2013 $ 201, 831 $ 225, 524 $ 427,355 2014 $ 216, 950 $ 242, 281 $ 459, 231 2015 $ 233, 246 $ 260,342 $ 493, 588 2016 $ 250, 812 $ 279, 810 $ 530, 622 2017 $ 269, 748 $ 300,797 $ 570, 545 2018 $ 290, 163 $ 323,423 $ 613, 586 2019 $ 312, 174 $ 347, 818 $ 659, 992 2020 $ 335, 908 $ 374, 122 $ 710,030 2021 $ 361, 501 $ 402,488 $ 763, 989 2022 $ 389, 102 $ 433, 077 $ 822, 179 2023 $ 418, 868 $ 466,068 $ 884, 936 2024 $ 450, 973 $ 501, 650 $ 952, 623 2025 $ 485, 602 $ 540, 030 $ 1, 025, 632. 2026 $ 522, 956 $ 581,429 $ 1, 104, 386 TOTAL $ 5, 427, 196 $ 6, 051, 662 $ 11,478, 858 The following points should be made about this analysis: The CRA component of this revenue stream can be the basis of a multi- million dollar Tax Increment Bond to pay for front end improvements in the CRA area that could work to attract even greater investment. The above figures assume that buildout is complete on January 1, 2009. Millage rates are assumed to remain unchanged at their current levels. TIF taxing authority is assumed to expire on December 31, 2026. Commercial property valuations are assumed to grow at 8% per year. The incremental tax revenues presented here flow only from the increase in values associated with the Landmark project itself (the " direct" impacts); they do not include the tax revenues that will flow from additional development spurred by the Landmark project (the " indirect" and " induced" impacts). Ad valorem property tax revenues available to the CRA Trust Fund under the TIP process are assumed to include 3. 65 mills to the Okaloosa County General Revenue fund and 4. 1634 mills to the City of Fort Walton Beach.  Ad valorem property tax revenues unavailable to the CRA Trust Fund under the TIP process are assumed to include those levied on behalf of the Okaloosa County School Board and the Northwest Florida Water Management District. It is assumed that 9 of the condo units will be homesteaded and thus subject to the Save Our Homes" constitutional cap on ad valorem tax increases, while 29 of the condo units will not be homesteaded. Assessed value is assumed to be 85% of construction cost. The CRA is assumed to receive 95% ofTIF revenue generated. Please see the attached Appendix for supportive details and for additional information. Please do not hesitate to contact us with any questions you might have concerning this report. Sincerely, Rick Harper, Ph. D. Larry Sassano  Appendix Tax Increment Analysis Report February 2007 The project will be located on a parcel bordered on the south side by Highway 98 and on the east side by Perry A venue. At buildout, this mixed use development project will consist of a total of 3 8 condominium units, and 52, 685 gross