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 Community Redevelopment Agency new construction incentive grant to Railyard One, LLC for the construction of a new 10,855 square foot warehouse and office building at 1700 NW Eighth Avenue in an amount not to exceed $203,881
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: The New Construction Incentive Program (Program) aims to stimulate catalytic development within the Community Redevelopment Agency (CRA) subareas by supporting new construction and major redevelopments. It fulfills the CRA's mission to improve and redevelop properties.
Railyard One, LLC plans to demolish a dilapidated structure at 1700 NW Eighth Avenue and construct a new 10,855 square-foot warehouse and office building, including outdoor storage, parking, landscaping, and stormwater ponds. A site visit by the Grant Review Committee (GRC) on July 8, 2024, highlighted the property’s blight and the potential positive impact of the proposed redevelopment. The GRC recommended moving forward with the grant application.
Projects must score at least 80 points to qualify for a grant based on fiscal impact, feasibility, catalytic benefits, and alignment with community goals. The project received an average score of 86.7 points from the West Ocala CRA Advisory Committee during a review on July 18, 2024. Although the application was initially tabled due to the CRA's prior recommendations for three projects within the fiscal year, it was unanimously recommended for approval during the September 19, 2024, meeting. This application marks the first proposed Fiscal Year 2024-25 grant.
FINDINGS AND CONCLUSIONS:
Key project details include:
• Construction Equipment: The site will store an average of $20 million of construction equipment, including dozers, loaders, generators, and lifts.
• Enhanced Landscaping: The plans include additional drainage and improved landscaping to enhance the property's aesthetics.
• Phased Development: This project represents the second phase of a three-part development on a 16.95-acre property.
• Rezoning: On June 18, 2024, the Ocala City Council adopted Ordinance 2024-41 to rezone a 7.0-acre portion of the property from M-3 (Heavy Industrial) to M-2 (Medium Industrial) to support the planned equipment rental and leasing business.
Economic Impact:
• Approximately 40 temporary jobs will be created during construction, with wages ranging from $60,000 to $90,000.
• Following construction, the project will generate approximately 32 full-time jobs with annual wages between $80,000 and $115,000.
• The Development Team has extensive experience, leading projects totaling over three million square feet, $200 million, and 240 acres.
The West Ocala CRA can grant up to $300,000 or 10 percent of eligible project costs. The Advisory Committee recommended approval of $203,881, representing an 8 percent match. An approximate payback period of 13 years is anticipated. The property generates approximately $5,275 in annual CRA tax revenue, projected to increase by $16,168 after project completion, along with an estimated $49,000 in electric yearly revenue. The project is expected to be completed by October 2025.
The West Ocala Vision and Community Plan supports providing development incentives to bolster businesses and enhance job training and hiring. Given the projected benefits to the CRA, staff recommends the project’s approval.
FISCAL IMPACT: If approved, the CRA grant ($203,881) will be disbursed over three fiscal years, upon project completion. The first payment is expected during Fiscal Year 2025-26. 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