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 (CRA24-45676) to FL TBD, LLC for the construction of a quick service restaurant (Culvers Ocala) at 3637 West Silver Spring Boulevard in an amount not to exceed $172,688
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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 significant redevelopment, applying to the various facets of development.
On June 18, 2024, FL TBC, LLC (Applicant), represented by Joshua Clarke, applied to the West Ocala CRA New Construction Incentive Program. The grant request was made to support the construction of a quick-service restaurant at 3637 West Silver Spring Boulevard (Parcel ID: 2260-228-000). The Grant Review Committee (GRC) conducted a site visit on July 8, 2024, and recommended proceeding with the grant application.
To be eligible for a grant, program guidelines require that a proposed project receive a minimum score of 80 points. The scoring criteria evaluates the project's fiscal impact, feasibility and experience, catalytic benefit, and community goals. The Advisory Committee reviewed the project at its regular meeting on July 18, 2024. The project received an average score of ninety 90 points; a scoring breakdown is provided in the attached document.
FINDINGS AND CONCLUSIONS: Key details of the project are summarized below:
• The entire parcel has a total area of 1.65 acres (71,874 square feet). The proposed building will be approximately 4,443 square feet in size.
• The business will operate under the Culver franchise. Franchisee Joshua Clark (FL TBC, LLC) has owned and operated 23 Culver locations throughout the country.
• The estimated capital investment for construction of the project is $2,878,138.
• The building will have a sand coat stucco finish and cultured stone veneer/trim.
• Enhanced landscaping will be provided along State Road 40 to improve the streetscape along a major corridor and further enhance one of the primary gateways into the City from I75.
• The development team includes Campbell Construction and Kimley-Horn and Associates, Inc.
• Redevelopment of a vacant, blighted property is expected to cause a significant increase in ad valorem tax revenue.
• Approximately 80 full-time jobs will be created with annual salaries ranging from $29,000 to $54,000.
• The project is scheduled to be completed by June 2025.
The West Ocala CRA new construction incentive can grant up to 10 percent of the eligible project costs. The Advisory Committee voted unanimously to recommend approval of the project in an amount not to exceed $172,688. The Committee noted that new jobs will benefit the community greatly.
Staff estimates an approximate payback period of 10 years based on the projected ad valorem annual revenue increase of $15,601. When estimating electric revenue and ad valorem revenue, the payback period is approximately two years. Restaurants typically become significant electric utility service customers. Staff recommends approval.
FISCAL IMPACT: The CRA grant ($172,688) will be disbursed equally over three fiscal years, starting at project completion. The first payment ($57,562.66) is expected during Fiscal Year 2024-25. 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