Submitted By: Roberto Ellis
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Presentation By: Roberto Ellis
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve a West Ocala CRA New Construction Incentive grant (CRA24-45748) to Guinn III Properties, LLC for the construction of a tire retreading facility (Advanced Tire Service) at 2199 NW 10th Street in an amount not to exceed $235,165
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: One of the statutory functions of a Community Redevelopment Agency (CRA) is to undertake activities facilitating redevelopment and improvement of properties. Incentive programs encouraging private investment into properties have proven successful in carrying out this redevelopment function. The New Construction Incentive Program (Program) is intended to support projects within the CRA subareas with the potential for catalytic impact. This program encourages new construction and major redevelopment, applying to the various facets of development.
The Applicant, Guinn III Properties, LLC, intends to expand its business (Advanced Tire Services) by constructing a new manufacturing facility for retreading commercial tires. The property is at 2199 NW 10th Street (Parcel ID: 22258-000-00) in the West Ocala CRA subarea. The Grant Review Committee (GRC) conducted a site visit on July 8, 2024, and the GRC recommended proceeding with the grant application.
The program guidelines require that the proposed project receive a minimum score of 80 points to be eligible for a grant. The scoring criteria evaluates the project's fiscal impact, feasibility and experience, catalytic benefit, and community goals. The West Ocala CRA Advisory Committee reviewed the project on July 18, 2024, and it received an average score of 91 points. A breakdown of the scoring is provided in the attached document.
FINDINGS AND CONCLUSIONS: Key details of the project are summarized below:
• Advanced Tire Services was founded in Ocala and has five locations in central Florida. The new expansion is approximately 25,000 square feet.
• The estimated project cost is $2,939,557, which covers site work, building construction, furnishing, finishing, and equipment. The proposed plans include constructing additional draining and providing enhanced landscaping to beautify the property.
• The development team includes Advanced Tire Services (Owner Jeff Guinn), Goodyear Truck Tire Retreading, Drake Construction Services, Kimley-Horn Engineering, Martinez Architecture, and Miller Professional Engineering.
• Expected gross annual revenue is $1,800,000.
• The expansion will create approximately eight new full-time jobs for the community; these jobs will pay an annual average salary of $53,280. This salary represents 94 percent of the Ocala Metropolitan Statistical Area's average yearly wage.
• On September 19, 2023, Ocala City Council adopted Ordinance 2023-62 to amend the future land use designation from Neighborhood and Low Intensity to Low Intensity to correct the inconsistency between the future land use and zoning designation.
• The property is zoned B-4, General Business. On August 21, 2023, the Ocala Board of Adjustment approved a Special Exception (SE23-45254) to allow a repair garage in the B-4, General Business zoning district.
• This property, located along a major corridor, can be described as underdeveloped. The total size of structures on site is approximately 5,300 square feet. There is room for additional development as the parcel has a total area of 210,830 square feet (4.84 acres).
• The project is scheduled to be completed by May 2025.
The West Ocala CRA new construction incentive can grant up to $300,000 or 10 percent of the eligible project costs. The Advisory Committee voted unanimously to recommend approval of the project in an amount not to exceed $235,165. As indicated in the attached memorandum, an approximate payback period of 13 years is anticipated. Currently, the property generates approximately $4,607 in CRA tax revenue annually. After the project is complete, the estimated annual CRA tax revenue will be $18,678.
The West Ocala Vision and Community Plan recommends providing development incentives to strengthen local businesses and increase hiring and job training. The applicant intends to expand even further by adding another 10,000 square feet in the future. Given the expected benefits of the project to the CRA, staff recommends approval.
FISCAL IMPACT: If approved, the CRA grant ($235,165) will be disbursed over three fiscal years, starting at project completion. The first payment is expected during Fiscal Year 2024-25. The applicant has requested that a portion of the grant be applied to building permits and impact fees. The remaining payments will be budgeted in subsequent fiscal years. Payments will be made from the West Ocala CRA grant account (623-016-560-559-55-82010).
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: N/A
ALTERNATIVE:
• Approve with changes
• Table
• Deny