Submitted By: Marie Mesadieu
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Presentation By: Roberto Ellis
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Consider a New Construction Incentive Grant in the West Ocala subarea to Ocala Plastic Surgery & Dermatology for the construction of a medical office building at the property located in the 3300 Block of SW 34th Circle (Parcel ID: 2372-008-011), in an amount not to exceed $211,918
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
NA
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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. The New Construction Incentive Program was created to promote commercial and residential multifamily projects that have the potential for a catalytic impact in blighted areas of the West Ocala CRA subarea.
Section 163.340(8), Florida Statutes states “blighted area” means an area in which there are a substantial number of deteriorated, or deteriorating structures, in which conditions, as indicated by government-maintained statistics or other studies, are leading to economic distress or endanger life or property.
To be eligible, a project must involve new construction or a major renovation of a vacant space, impacting more than 40% of the existing floor area. The proposed capital investment must exceed $1 million. In addition to the minimum eligibility requirements, the following impacts are to be evaluated:
• Community impact from the expected increase in jobs, customers, or residents.
• Removal of conditions of blight and the project’s transformative effect on the surrounding area.
• Location of the project and proximity to major corridors or high-visibility areas.
• Fiscal impact of the project on the CRA.
• Alignment with the design and architectural standards desired for the properties in the CRA.
The West Ocala Community Redevelopment Plan (CRA Plan), Goals 1 - 3, recommends directing resources toward properties with visible and debilitating blight conditions to restore value and prominence to gateways and corridors. The grant program was created as a strategy to achieve these goals. The gateways and corridors are important reflections of the community image. The appearance of infrastructure, structures, and vacant land along these roads shape the impression of Ocala formed by visitors, non-area residents, and potential investors.
Ocala Plastic Surgery & Dermatology/Carey Robinson (Applicant) is proposing to construct a new medical office building to expand their business. Please refer to the attached document (Application Packet) for a detailed summary of the application. The proposed development will be in the Paddock Park Commercial Center - Phase 3 (Center). Originally part of the 1985 Paddock Park Development of Regional Impact (DRI), the Center was designed for mixed-use development, including commercial sites, a hotel, offices, and infrastructure improvements. Today, the area is a vibrant commercial hub filled with activity and stable businesses.
STAFF FINDINGS AND CONCLUSIONS:
• The CRA’s commercial redevelopment efforts are focused on key corridors to increase the value and prominence of corridors and gateways. This strategy aligns with Goal 1, Goal 2, and Goal 3 of the CRA Plan. Please refer to the attached document (Priority Areas & West Ocala CRA Plan Reference) showing priority commercial areas in the West Ocala CRA subarea.
• While the project meets the minimum eligibility criteria to be considered for a grant, staff concluded that this project fails to demonstrate close alignment with the intent of the New Construction Incentive grant program and CRA Plan. The proposal falls short in creating catalytic impact within the surrounding area.
• CRA Priority Areas: The subject property is not located along a major corridor and is therefore not considered a priority for the incentive program. The called-out priority areas were selected due to significant presence of blight, when compared to other areas in the CRA. Existing conditions are shown in the attached document titled Maps & Existing Conditions.
• Conditions of the Site and Surrounding areas: Based on the site visit and further evaluation of the surrounding areas there are no factors that would rise to the level of blight as defined in Section 163.340(8), Florida Statutes. Please refer to the attached document (West Ocala CRA Plan Reference) for a list of determining factors that would constitute blight.
• Further Redevelopment Opportunities: There are limited opportunities for the CRA to encourage further redevelopment in this area as the development objectives of the Paddock Park DRI have largely been fulfilled. This is evidenced by abandonment of the DRI designation. While the grant would directly benefit the business, there would be limited community benefit.
• The applicant proposes improvements beyond those typically required for similar projects. These include increased façade treatments, enhanced landscaping, and underground drainage improvements. The estimated project costs total $4,562,410.
• The applicant has stated that the project will move forward with or without grant approval; however, less costly design alternatives will be considered if the grant is not approved.
• The Grant Review Committee (GRC) conducted a site visit on January 17, 2025, to review the project and discuss the grant application. The property is well maintained but is currently unimproved.
• The program guidelines require that the proposed project receive an average score of 80 points or more to be considered for a grant. The CRA may approve up to three (3) projects each fiscal year. The West Ocala CRA has approved one New Construction Incentive Grant in the Fiscal Year 2024-25.
SCORING:
The applicant and staff presented to the West Ocala Redevelopment Advisory Committee (Advisory Committee) on January 23, 2025; five Committee members were in attendance. The Advisory Committee members’ final scoring breakdown is provided in the table below.
RECOMMENDATION:
Staff Recommendation: Based on staff findings, the application does not align with Goals 1, 2, & 3 of the West Ocala Redevelopment Plan and the subject property is not located within the priority areas of the West Ocala CRA.
Staff Recommends DENIAL. The project proposal does not align with the intent of the New Construction Incentive grant program and does not adequately address the removal of blight as defined in Section 163.340(8), Florida Statutes.
During the review process staff recommended that instead of applying for the New Construction Incentive Grant, the applicant apply for the Commercial Improvement Grant. The Commercial Improvement Grant is a matching grant (75%CRA/25% applicant) of up to $50,000. Exterior improvements are eligible in this grant.
Advisory Committee Recommendation: The West Ocala Advisory Committee met on January 23, 2025, scoring and reviewing the application with a total score of 85.6 out of a possible 100 points.
The Advisory Committee Recommends APPROVAL of the grant with a match of 5.5 percent, up to a maximum of $211,918.
FISCAL IMPACT: If approved, the grant would be disbursed equally over three fiscal years, starting at project completion. The recommended investment carries an estimated payback period of 7.3 years based on the ad valorem revenue projections. The grant program allows for an incentive of up to 10 percent of the eligible project costs. If approved, payments will be made from the West Ocala CRA grant account (623-016-560-559-55-82010).
PROCUREMENT REVIEW: NA
LEGAL REVIEW: NA
ALTERNATIVE:
• Approve with changes.
• Table
• Deny