Saturday, October 5, 2013

North Brevard Zone Seeks to Provide $6.5 Million Grant to Developer

TITUSVILLE, Florida - On October 8, the Brevard County Commission will consider a request from the city of Titusville and the North Brevard Economic Development Zone to grant $6.5 million to a Tampa-based developer that hopes to raze and re-build Miracle City Mall.

According to the proposed interlocal agreement, the grant will “pay the cost for certain infrastructure improvements which may include, but are not limited to, improvements to roads, water, sewer and drainage systems.”
The City of Titusville will obtain “a loan or line of credit” to provide the cash assistance to EXXCEL Project Management, LLC.  The primary source to settle the loan will come from NBEDZ tax increment revenues.   The city will also use non-ad valorem tax revenues as collateral for the loan/credit line.

The NBEDZ was created in July 2011 as a Special Dependent District to facilitate job growth and economic development in North Brevard.
The developer has “entered into a real estate option to purchase the mall property; that group’s plan calls for razing the structure and constructing on the premises a “lifestyle” shopping center, containing approximately four to five tenants occupying 20,000 to 40,000 square feet,” according to a county commission agenda report.  “It would also use specialty retail stores to infill a number of smaller spaces in the shopping center.”

The report adds that the NBEDZ and the developer estimate that the project will create “an estimated 856 jobs, which could produce an economic multiplier effect creating another 428 jobs in the community.” 
As well, the estimate predicts an “ad valorem tax impact of $1.4 million annually for the city and county, an estimated sales tax impact of $1.8 million for the county and state, and approximately $51 million in private sector funds to be invested in the community.”

The NBEDZ outlined its purpose in a May 2012 plan to the county commission.  Focus areas in the plan include: High Wage Business Attraction and Retention, Redevelopment of Commercial/Industrial Sites, Development of Pad Ready/Spec Building Sites, and Small Business Attraction, Creation, Retention, and Expansion.
In that report, the NBEDZ stated that a strategy for redevelopment “may consist of public roads and stormwater infrastructure improvements that will provide a determined number of qualified full time permanent jobs.”

Related Story: http://government.brevardtimes.com/2013/10/oped-nbedz-blows-65-million-on-miracle.html

18 comments:

  1. This has failure written all over it. If I were opening a business it would not be in a town where other businesses are closing on what seems to be a daily basis. Nationally branded stores do their research when opening new locations and are not going to open a store in an area with high unemployment and low income just because there is a new mall. Without guaranteed tenants, the city and county would be foolish to grant the developers any of the tax payer's money for this project. The city & county should offer tax incentives to the developer but no grant. If the developer really believes in this project, tax incentives should be enough.

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  2. more money down the drain. The Miracle City mall has never been a busy mall. Not enough people shopped there, and even years ago when it was almost completely leased out, it was still a barren place.

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  3. Maybe we can get Rose Harr to give them the money since we already paid her $6.5 million and the contract was cancelled. She got paid for services that were never rendered. After all she said she wanted to help out the local economy - here is your big opportunity carpet bagger.

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  4. As predicted, the Blueware debacle informed crooks far & wide that our commission & EDC are a bunch of rubes that believe anything you tell them. Since when are minimum wage retail jobs something we pay millions to attract? Infantini: you are just beginning to grow on me - you best not vote yes on this.

    Titusville had little commercial growth during the biggest building boom in history. This is a total non-starter. They will never get enough national retailers to lease if they were to build - dream on.

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  5. Blueware, EDC, Xun Energy,NBREZ,etc.... All the same players.

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  6. The elected Marxist commissioners will drool all over this initiative.

    Thank goodness we have term limits to remove the likes of Nelson and the others. If they were to stay in office indefinitely, eventually, all our rights would be forfeited.

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    1. Marxist commissioners ?? the likes of Nelson and the others. ???

      Dude stop by his office he is such a laid back guy he's like "Mr. Rogers" hardly a radical Marxist LOL that is funny.

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  7. The idea is not to build a successful mall. The idea is money is laying on the ground and there is a need to spread it amongst the chosen. For the developer, who does not even own the property yet, you take millions in free clean-up, throw some vig to the right firms, then decide for whatever reason you're dropping the project and sell the land. You buy it deeply discounted for the clean-up, with the clean-up completed you probably take home $2 million in profit for the County's $6.5 million 'investment'. This has nothing to do about development and everything to do with spreading the money. Look at the Sarno Landfill, the realtor made $6 million in one day on flipping the property, the county had to buy it (it was an emergency), and the land has sat unused now for 13 years.

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    1. Right on, Scott. The name of the game is spread around the taxpayers money to the chosen few. Commissioner Fisher is now Vice Chairman of the Brevard County Board of County Commissioners.

      Former Chairman, William Cunningham, had both Lynda Weatherman, President of the Economic Development Commission of Florida's Space Coast (EDC) and Mary Bolin-Lewis, current Chairman of the Board of County Commissioners, on his board of directors of CMO FL, Inc. until he amended that on September 12, 2013.

      The chosen few make out like kings and queens. The rest of us?

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  8. More Taxpayer money about to go down the drain.for this Worthless Mall.Why not try to move Businesses into all the empty Locations throughout the City. Titusville is Dead and just refuses to admit it. What we need is some Council Members that want to breath new life into the City, and not repeating past failures.

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  9. No wait - trust me this time it is different - wink

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  10. Why is our County government in the business of investing in a private development where a few select Commissioners help another select few privateers create an opportunity to simply flip a property, make millions, and leave the taxpayer paying the bill? It reeks of cronyism as they hide behind a veil of confidentiality agreements so one can't really determine what is being foisted on the public. These rip offs of the public must be stopped.

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  11. Another "line the pockets of the politicians" scheme. They want a new mall? Great just what Brevard needs........I can see it now Neiman-Marcus, Tiffany, Nordstroms, Dolce & Gabbana.......oh wait - it is in Titusville.......a Mega Dollar Store, two or three Thift Shops, a front for a cash laundering enterprise, a free Obama phone outlet, and an oxycodone pill mill.

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    1. That is a little funny, ironic but funny. I do take exception with: "Another "line the pockets of the politicians" scheme"

      Do you suggest one or more of the commissioners is on the take and getting a kick-back of some sort? If so which one(s) and what would be the mechanism to get that "lining of pockets" to the commissioners pockets? A briefcase with hundreds in it? A free house in the Bahamas?

      BTW: The next time you see a "pain management" clinic starting up feel free to give Sheriff Ivey a call, he has a task force for pill mills.

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  12. Nothing but the dead and dying back in my little town.

    Titusville just needs to own this fact. This would be money flushed straight down the drain.

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  13. If this is such a prolific project, why are there not more bidders? Who was it that contacted this "Broker" Did the Commissioner have a dog in the race nearby?
    Why pay 6.3 million when the County Appraisal's office lists it as 1,6 million -Who and why would anyone pay 3x the stated value? Are there people here who voted on this that have enormous cross conflicts ?And lastly why build a private project with
    municipal funds? one of the items on the interlocal states "it has little chance of success"

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  14. The city of Titusville was furloughing its employees earlier this year and now they are considering going into debt for this project??? The city is hurting, and too many of its residents see this project as doomed. Sound like some kind of slick deal where only the developer and a chosen few will benefit. I say no way!

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  15. The developer has said that he won't begin construction until he has at least 2hub stores under contract. To date, he has NONE. After 2 years of soliciting such contracts, this should speak volumes about how anxious upscale chains are to be an anchor store in the proposed new mall.

    And why has the developer said he won't open his books to scrutiny if he's as financially solvent as he claims?

    Deal stinks like 3-day old fish... Am just saying...

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