- November 23, 2024
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Palm Coast continues to climb from the recession with improving construction and business growth figures. Barring any interference from a national economic downturn, steady growth is expected for 2016.
In the heyday of 2004, 2005 and 2006, there were 400 to 500 permits pulled each month for single family homes.
“It was insane,” said Beau Falgout, senior economic development planner for Palm Coast.
In 2014, there were 339 permits for single family homes for the entire year. As of September, permits were trending a little higher for 2015.
“We expect to do a little better than 339 in 2015,” he said.
Falgout said the indicators point to a better year in 2016. The housing inventory is down and some people are starting to call it a seller’s market, which raises prices. When prices go up, people start to build houses.
“All the numbers indicate more construction next year,” Falgout said. “All the data shows acceleration. Will we go to 4,000 (permits) a year? Hopefully not.”
There is still plenty of room for housing growth. Recently, construction has involved subdivisions of 200 to 300 units. But there are five larger subdivisions in the city, called Developments of Regional Impact, which could be developed.
On the business side, Falgout points to the retention of Designs for Health, which has 50 employees, as a success for the city. The company previously rented and has purchased a facility to expand.
“We’re very happy that Designs for Health decided to stay here,” he said, adding that the company had explored relocating out of the area.
Also adding to the economy has been Sea Ray, which started a larger parking lot to accommodate more employees, which are currently in the 500 to 600 range.
But Falgout said most jobs are provided by small businesses, and there has been an increase in the past year.
There were about 425 new business tax receipts for fiscal year 2014, about 100 more than fiscal year 2013. In fiscal year 2012, there were only 200. Fiscal year 2015 is showing a higher trend than in 2014.
“There has definitely been an increase,” he said. But he cautions that new businesses are sometimes started when the economy is down, because unemployed workers start their own business.
In general, the outlook calls for continued growth for Palm Coast, but not near the level of the housing boom.
Falgout expects to see construction along the State Road 100 commercial boulevard. Already planned are a grocery store and a home improvement store.
Sports marketing continues to be important for the area. At one time there were only four fields at the sports complex and now there are 10. The goal is to attract tournaments and visitors.
The unemployment rate was 15% in the third quarter of 2010 for Palm Coast and 6% in the third quarter of 2015. This shows a growing economy, but Falgout notes that unemployment surveys are taken by surveying people and not companies, meaning that those employed could be working in St. Johns or Volusia County.
There are unknowns in the economy that could affect the coming year, with the biggest unknown being some large manufacturer deciding to the move to the area. These are “primary employers” that every community seeks.
Economic development planning will get a fresh start in 2016 as the city updates its Strategic Economic Development Plan with input from the community. The current plan is available on the city website, ormondbeach.org, by clicking on “departments” and then “economic development.” It was a three plan that began in 2012 and is now due for update.
Joe Mannarino, city economic development director, said he currently has a request for proposals issued for a company to help develop the plan. He said there will be workshops where the community will be invited to provide their input, most likely in the first or second quarter. They will be on Saturdays, and will last five or six hours.
“We have open discussion and then break into groups,” he said. “Last time, we had a good turnout.”
The City Commission will approve the final plan.
Growth picked up last year over the previous year. Measured to November, there were 497 new business licenses (41 more than 2014) and 4,297 building permits (449 more than 2014).
The value of construction was $74.3 million ($8.8 million more than 2014.)
Steady growth is expected, barring unforeseen economic problems.
Mannarino plans to concentrate on getting the business park area of Ormond Crossings off the ground in the new year. This development, near the intersection of U.S. 1 and Interstate 95, is a large tract of land designated for a residential area and a business park.
“We’re going to work hard to get infrastructure in the east part, which is the commercial part,” he said. “It’s about 500 acres of land. It has the potential to be twice the size of the Airport Business Park.”
The build-out of the Ormond Crossings would be likely over a 25-year period, but Mannarino said his goal is to get it started in 2016.
He said there are currently 1,500 employed in the airport park, and there is still a potential for growth there as buildings could be enlarged. He said there are two companies that may build in 2016.
There is also about 12 acres adjacent to the park that could be opened up in the future.
Another expected growth area is the North U.S. 1 corridor, and Mannarino gives credit to the U.S. 1 Task Force, a group of citizens and business owners, for spurring the medium landscaping that will be built in the next several months, mostly with FDOT dollars.
“Almost all of the land on Granada is being built on,” he said. “The next corridor that’s going to see investment is North U.S. 1.”
He expects a variety of development, industrial as well as retail.
Most of the space on Granada Boulevard has been developed, but Mannarino said there is still room for “infill.” There is one large space, near the Moose Lodge, that would allow another development similar in size to the one that was constructed in 2015 east of Lowe’s Home Improvement.
The Planning Department for the city has made changes to make things easier for developers. They have streamlined and computerized the permitting process.
There is also a periodic site plan review committee meeting, where someone can sign up and get immediate answers from staff about their ideas for a development
Mannarino said he is still working with the owner of the defunct Food Lion on East Granada Boulevard to find a buyer.
“I’m not giving up on getting a quality super market in that location,” he said. “I’m crossing my fingers it will happen in 2016.”
In 2014, the city offered financial initiatives, tied to job creations, for several companies. SKYO Industries was lured from New York, and local companies were retained and helped to expand, including Ameritech Die and Mold, Valiant Equipment and Germfree Laboratories. Combined, the efforts created or retained 179 jobs.
Mannarino expects this type of business growth to continue throughout out the year, and beyond, especially with the Ormond Crossings opening up.
