Fourth quarter - 2014

Trader Joe’s distribution center a major victory for economic development team — Page 6

Orange Avenue reconstruction underway in Daytona Beach — Page 4

Volusia County front and center atFarnborough International Airshow — Page 8

The aviation/aerospace world convenes in the UKat the 2014 Farnborough International Airshow… and Volusia County was there!

Welcome to Economic Development Quarterly, a publication brought to you by the Volusia County Economic Development Division. This publication is being produced for people who have an interest in the area’s business, economic development and real estate market.

Our goal is to use this publication as an economic development tool, to keep you in-formed and to provide information and statis-tics that have meaning to your business. This publication is owned by the Volusia County Government and is produced and sold by the Volusia/Flagler Business Report through contract. Content is solely the responsibility of the Volusia County Economic Development Division.

We’re interested in your comments and story ideas. Please contact David Byron, community information director, 386-822-5062, or by e-mail at dbyron@volusia.org. If you’d like to become an advertiser, please contact Debbie Keesee at the Volusia/Flagler Business Report at 386-681-2500.

The Economic Development Quarterly is produced and mailed quarterly to a minimum of 10,000 area businesses by the Volusia County Economic Development Division. It is offered free to readers, including real estate professionals, leaders of business, industry, education, government and selected organ-izations. If you are interested in receiving this publication, please contact the Volusia/Flagler Business Report at 386-681-2457.

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Volusia/Flagler Business Report386-681-2500

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Volusia County Council/Department of Economic Development

800-554-3801386-822-5062

floridabusiness.org

WWith Stetson University’s student-

managed investment program widely recognized as being one of the best in the country, the next Warren Buffet could be hangin’ out in the student union.

Having been started in 1980, today Stetson’s Roland George Investments Program (RGIP) manages a portfolio of $3.4 million in stocks and bonds. It is among the largest such programs in the nation and has won numerous awards among stiff competition.

“This is a unique, hands-on program that prepares students to learn about the financial markets, develop their own investment goals and objectives, and develop criteria for managing their own portfolio,” said K.C. Ma, Ph.D., a chartered financial analyst. Dr. Ma is the Roland George Chair of Applied Investments and director of the Sarah George Investments Institute at Stetson.

While many seasoned investors have lost significant sums in volatile markets, the Stetson program’s students have produced noteworthy returns. What’s their secret? It’s a combination of investment discipline and Stetson’s basic philosophy of investment education. Students function as an investment management

firm where a complete investment policy is established and revised as needed.

The program not only is gratifying for students, but also it produces graduates who have a real advantage in the real world of investing. Students are investors as well as financial analysts.

This year, the Roland George Investment Program added to its collection of honors when it won the Fixed Income categories in the University of Dayton RISE competition and the University of Quinnipiac GAME competition. RISE is an acronym for Redefining Investment Strategy Education. GAME stands for Global Asset Management Education. Stetson also won both competitions last year.

“Because of our achievements, many people recognized us at the conference,” said Manual Preg, a senior from Austria in reference to Stetson’s performance and presence at the RISE competition. “Several students and professors asked us specific questions about how we chose our investments and why we thought we are so successful. It was an inspiring moment.”

In addition to being taught the principles of investing and mechanics of the markets,

students are taught the value of hard work and fallacies of luck. They dig deep in their analysis of investment opportunities to find things that are not apparent without intensive study. Students also are keenly aware of the fiduciary responsibilities of managing substantial amounts of money that is not their own.

“I think the program’s success is a function of how it is conducted and the fact that students have the power to make decisions and influence the portfolios,” said Stacy Hudson, a 2010 Stetson University graduate. She became a manager of investor relations for Alon USA Energy in Texas. “We were reminded regularly that we were fiduciaries and we took that responsibility seriously. I felt I was better prepared than most of my peers when I entered the real world.”

Dr. Ma underscored the impact of preparation and experience. “Ninety percent of the learning comes from the daily, real time actions in the trading world, and that’s a very necessary and a very important experience that cannot be conveyed through traditional classroom lectures. This is real risk, real rewards, real consequences, real world.” n

Stetson students master markets in real world investment arena

Roland George student traders have national reputation for making money

2

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AA three-way partnership between Volusia

County, the City of Daytona Beach, and the state has paved the way for a complete overhaul of Orange Avenue in Daytona Beach, a road project officials say is one of the most critically needed in Volusia County.

The 1.5-mile east-west arterial in the city’s Midtown area is undergoing a complete reconstruction just ahead of the project to replace the drawbridge at the road’s east end.

The road work stretches along Orange Avenue from Beach Street to Nova Road. The project includes a new base and surface, and subsurface water, sewer and drainage systems. Traffic signals and street lighting will be upgraded and sidewalks are being widened to six feet. Utilities will be buried. Besides the obvious traffic improvements, the project also will address the street’s flooding vulnerability.

The goal for the Orange Avenue project is to maintain a safe and convenient road for motorists and pedestrians and to increase the economic development potential of the Midtown area through improved infrastructure, said Ron McLemore, Daytona Beach public works director. He added that businesses in the construction zone remain open while the improvements are being made.

The new road surface will provide a smoother ride for motorists, and improved drainage will help control flooding that has been a problem along the aging road. Beautification includes decorative lighting poles and traffic signal masts.

Thomas Huger, the city’s facilities construction and maintenance manager, is the citizen liaison on the project. Huger pointed out the plan also calls for Americans with

Disabilities Act (ADA)-compliant sidewalks and crosswalks, audible signal controls for visually impaired, and touch signal controls for the hearing impaired.

Funding for the project is provided by the City of Daytona Beach, Volusia County, Florida Department of Transportation and the Florida Department of Environmental Protection (FDEP). The city received about $6 million in grants from the county and FDOT. The remaining funding is from the city and a low-interest loan from FDEP. All told, the project’s cost is estimated at $17.6 million. Formerly a county road, Orange Avenue becomes a city road as part of the agreement.

Work on the Orange Avenue reconstruction began in August and is expected to be completed in 2016.

Next year, the 50-year-old Veterans

Memorial Bridge that connects Orange Avenue

to the beachside over the Halifax River will

come down. This will suspend access to the

bridge until 2017. The International Speedway

Boulevard bridge to the north will provide an

alternative for drivers and pedestrians.

Replacement of the county-maintained

drawbridge was deemed essential after frequent

breakdowns of the span’s equipment and

difficulty in getting replacement parts. The

bridge occasionally gets stuck in the upright

position causing a headache for drivers. The

estimated cost for the new bridge is $42 million

with the funds coming from federal gas taxes.

The new highrise bridge will be will be named

the Tom Stead Veterans Memorial Bridge.

Stead was a longtime Daytona Beach hotelier

and statewide tourism leader. n

Orange Avenue reconstruction underway in Daytona Beach; bridge replacement to follow

East/west running Orange Avenue in Daytona Beach undergoing much-needed total remake.

4

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MMerriam-Webster.com defines teamwork as the “work

done by several associates with each doing a part but all subordinating personal prominence to the efficiency of the whole”. The teamwork that is occurring within area businesses and in our economic development eco-system is creating positive momentum for the local economy. One of the top considerations for almost every business – whether that occurs in an expansion, retention or recruitment context – is the development of, and access to, a qualified workforce.

In this regard a key contributor to the local economy is CareerSource Flagler Volusia as the Region 11 Workforce Board, formerly known as the Center for Business Excellence, and one of 24 in Florida. This organization works in coordination with CareerSource Florida in Tallahassee to provide recruitment services, human resource information, and training opportunities to business and job seekers. These services are funded through public and private sources as a way of helping the business community reduce recruitment costs, and provide

the information and resources that help companies attain and maintain qualified employees.

Workforce and talent development were the topic of a recent Tri-Regional Business Summit. CareerSource Flagler Volusia, led by Robin King, president and CEO, historically has organized a local business summit each summer. However, this year Robin and her board of directors made the decision to team up with CareerSource counterparts in Central Florida and Brevard as co-hosts of a larger event to explore the regional collaboration that is needed for Volusia County and the Central Florida area to remain competitive in today’s global economy.

This year’s Business Summit provided presentations to business owners and community leaders so they better

understand the challenges and opportunities that are part of growing a business and the economy in this region of the state. The agenda included a business panel discussion focused on transportation resources during which it was suggested that this is the only region on planet Earth to be ‘quinti-modal’ by virtue of having air, sea, rail, truck and space-related transportation capabilities. The results of a recent Talent Gap Survey, sponsored by the Florida High Tech Corridor Council, also were released and discussed. That report is available at: careersourcefv.com/fv-content/uploads/Talent-Gap-report-FINAL_9_24_14.pdf.

Recent data from the Department of Economic Opportunity shows that employment in Volusia County has increased more than 23,000 since January 2010. This is impressive, but equally as impressive is that CareerSource Flagler Volusia is assisting local employers who are seeking to fill another 7,000 positions. This establishes the organization as the ‘go to’ teammate for talent in Volusia’s economic development eco-system for businesses and for job seekers. n

Rob Ehrhardt,Director, Volusia County Economic Development Division

EcOnOmic DEvElOpmEnt 101

careerSource Flagler volusia a key partner in workforce development

5

WWhen the news went public, eyes and ears

went wide open – not just in Volusia County but across the country.

The announcement that California-based Trader Joe’s will build a massive distribution center along Interstate 95 on the west side of Daytona Beach has been touted among county leaders as the project that could be the catalyst for a flurry of like activity. The name Trader Joe’s carries much weight in national business circles. That the company chose Volusia County over competition for the prestigious company’s distribution center is a sign to many people in local business and political circles that Volusia County’s time has come. The Trader Joe’s project is seen as an economic development team victory.

The sale by Consolidated-Tomoka Land Co. of 76 acres for $7.8 million involved a cadre of local entities in crafting the deal.

Volusia County Manager Jim Dinneen was instrumental in putting the deal together for the county’s contribution. “This project will have a major impact on Volusia County,” he said. “Both in terms of jobs and capital investment, this will be viewed as a major contributor to economic development success for years to come.”

While Consolidated-Tomoka Land Co. developed its relationship with Trader Joe’s officials and took the lead on the initiative, the unified communitywide support included Volusia County Government; the City of Daytona Beach; the CEO Business Alliance; CareerSource Flagler Volusia; FPL; Team Volusia Economic Development Corporation; and Enterprise Florida, Florida’s principal economic development organization. Volusia County was selected over a larger Florida city and sites in Georgia.

“We are pleased to complete this transaction with the buyer, particularly given the expected positive impact the projected 630,000-square-foot distribution center will have on the economy of Volusia County and Daytona Beach,” said Mark E. Patten, Consolidated-Tomoka’s senior vice president and chief financial officer.

Among the high-impact resources to the project was private-sector financial support from the CEO Business Alliance. “Our partners examined the opportunity and are very excited about the significant impact this project will have on our community,” said Kent Sharples, the organization’s president. “The Alliance committed $400,000 of private sector money.”

The CEO Business Alliance is a select group of CEOs and chairs of the top private companies in Volusia County that include NASCAR, International Speedway Corporation,

Brown & Brown, Florida Hospital Memorial Medical Center, Jon Hall Automotive Group, DME Holdings and Consolidated-Tomoka Land Co. Its mission is to offer expertise and private sector resources to assist compatible businesses in relocating to the community.

The Trader Joe’s distribution center will be just east of Interstate 95 within the Gateway Business Center in Daytona Beach. It is projected to generate capital investment of approximately $88 million and provide an estimated 450 jobs with a potential annual payroll exceeding $12 million.

Team Volusia Economic Development Corporation provided assistance during the site selection search from the project’s early stages, reporting to its members using the code name Project Alpha, to maintain confidentiality. Not until the name Trader Joe’s appeared on public documents was the name Project Alpha retired.

“The business community and local government officials have worked in harmony to help Consolidated-Tomoka Land Co. complete the sale of property, signaling the coming of a major distribution center,” said Keith Norden, Team Volusia’s president and CEO. “This bodes well for Volusia County on so many levels.”

A key factor for the distribution center will be the workforce it assembles. CareerSource Flagler Volusia will play a supporting role. “We are thrilled at the news of this project and we stand ready to assist in recruiting, staffing and on-the-job training,” said Robin King, president and chief executive officer of CareerSource Flagler Volusia.

Considerable analysis and work was done

in the months preceding the announcement of the land sale, including planning for power needs. “While working directly with Team Volusia, Consolidated-Tomoka, and other key economic development organizations in Volusia County, FPL provided a detailed rate analysis including our special economic development rate for new or expanding businesses,” said Larry Volenec, an area manager. FPL also worked closely with Consolidated-Tomoka on the preliminary site design.

“This is a textbook example of community resources working together toward a common goal,” said Rob Ehrhardt, Volusia County’s economic development director. “All entities have been unified in demonstrating that Volusia County is the perfect location for a major distribution center and other transportation oriented projects.”

The Volusia County Council has approved an incentive package of $1.69 million, which includes road impact fees and other incentives tied to job creation thresholds. Volusia County soon will begin road improvements funded by the county, Daytona Beach and Florida’s Economic Development Transportation Fund. This includes extending Mason Avenue south through the Gateway Business Center to Dunn Avenue and the creation of access roads to the site from Mason and Dunn avenues.

Emory Counts, Daytona Beach economic/community development director, stressed the importance of this project, which was supported with $1.59 million in property tax abatements from the city, and $400,000 for utilities improvements for the Mason Avenue extension.

“We are excited about this project and hope it is a harbinger of things to come,” he said. “It can be a catalyst for diverse projects including feeder companies, spinoffs and commercial cluster development.”

Rick Karl, director of the county’s Economic Resources Department, underscored the importance of having infrastructure in place to accommodate projects such as this. “When opportunity knocks, we have to answer with the resources and structure to take advantage of opportunities such as this. Communities that are lacking in this area are quickly eliminated from consideration.”

Ehrhardt pointed to significant transportation improvement projects on the horizon as being an eye opener for prospective companies that some day may be Trader Joe’s neighbors. “With state and federal funding of three quarters of a billion dollars in improvements to our Interstate highways, S.R. 415 and the Veteran’s Memorial Bridge (Orange Avenue in Daytona Beach), we are preparing for the future, something that resonates with site selectors and the companies they represent. Add to this our prime location at the crossroads of Interstate 4 and Interstate 95, and as a community we make a compelling case for distribution centers and related transportation-oriented enterprises.”

The distribution center could begin operations as early as late 2015. n

trader Joe’s distribution center a major victory for economic development team

WhAt iS tRADER JOE’S?It’s a growing chain of 400+ grocery stores.

And it’s a phenomenon that started in the 1950s as a small chain of convenience stores. Back then, the company was known as Pronto Markets. In 1967, its founder, the original Trader Joe, changed the name to Trader Joe’s and changed its business culture.

The stores became bigger, decked the walls with cedar planks and the crew donned cool Hawaiian shirts. It began packaging innovative, hard-to-find foods under the “Trader Joe’s” name. That cut costs and saved shoppers money — no sales, no gimmicks, no clubs to join, and no special cards to swipe.

The bottom line is an extraordinarily loyal following among shoppers and incredible rankings in consumer satisfaction and shopping experience surveys.

While the organization’s new Volusia County distribution center will serve its retail locations throughout Florida and beyond, there are no Trader Joe’s stores in Volusia County at this time. The nearest store locations in Winter Park, Jacksonville and Gainesville.

Team effort touted as key to landing the supermarket giant’s distribution center©iStock.com/Jiloty

6

OWe hear it over and over: economic development is a team sport. Of course it’s true. But last month we saw a graphic illustration of the power of teamwork when Daytona Beach-based Consolidated-Tomoka Land Co. announced a significant land sale that signaled the coming of a major new distribution center to Volusia County. The distribution center will serve the Trader Joe’s family of grocery stores.

While this opportunity emanated from Consolidated-Tomoka, the company enlisted the support of several community organizations to ensure that Volusia County stood head and shoulders above other communities competing for the project. Among them are Volusia County Government, the City of Daytona Beach, CEO Business Alliance, CareerSource Flagler Volusia, FPL, Team Volusia Economic Development Corporation and Enterprise Florida.

One might think with that many entities involved, each with its own perspective and corporate culture, the deal would get bogged down. But it to the credit of all these

participants and others, the effort to win the deal was well crafted, unified, and focused on the needs of the client and the community.

Rob Ehrhardt, Volusia County’s director

of Economic Development said it best: “This is a textbook example of community resources working together toward a common goal.” He’s right. And what he is saying is that teamwork carried the day as Volusia County triumphed over stiff competition.

Congratulations to Consolidated-Tomoka Land Co. on a major coup, and to all the participants who had a role in crafting the Volusia County response to this opportunity. It’s a dramatic demonstration of what can be accomplished when the team is unified, focused and dedicated to accomplishing a goal.

This project begins with a $7.8-million, 76-acre land sale. It will produce a 630,000-square-foot distribution center serving one of America’s most recognized brands with an estimated 450 jobs. It’s the kind of project any community would love to land. Thanks to Consolidated-Tomoka Land Co. and a great team of professionals from many organizations, it landed here. n

trader Joe’s victory proves economic development is a

team sport

Keith norden,President/CEO, Volusia County Economic Development Corporation

7

One of the truisms in economic development circles is that work, live and play go together. In other words, quality of life is a big factor for company locations. People like to work where they like to live.

One of Volusia County’s economic development “assets” is the quality of life that attracts residents and visitors. And Volusia residents have time and again demonstrated the importance they place on quality of life through their support of school capital taxes, unified beach management, public land preservation, environmental protection measures, and outdoor recreation.

Volusia’s vast and growing system of highly popular, multi-purpose outdoor recreation trails is an example of the premium residents place on quality of life. While these scenic trails provide healthy outdoor recreation opportunities, these public assets also have a quantitative benefit. When analyzing the impact of trails relative to economics, health, transportation, their impact is significant.

According to the National Sporting Goods Association, the number of Americans who ride bicycles is greater than all those who ski, play golf, and play tennis combined. This is consistent with the popularity of outdoor activities enjoyed among Florida’s 87 million visitors, 73 percent of whom enjoy nature-based activities while vacationing, according to the Florida Greenways and Trails Association. Visit Florida, the statewide tourism marketing agency, ranks bicycling and trail hiking among the most favored activities for visitors.

According to Tim Baylie, Volusia County parks, recreation and culture director, statistics show that trail facilities generate more jobs per design, engineering, and construction dollar than any other type of transportation infrastructure. “Support for trails is nearly universal,” said Baylie. “Hikers and cyclers agree they enhance quality of life and planners and government officials recognize the contribution to economic vitality and related cost savings.”

For example, the federal government, which pays 28 percent of all health care costs in the United States, supports the expansion of trails programs since they contribute to better health and lower health care costs.

Tourism officials also tout the benefit of trails. Bicycle tourists spend $47 billion on meals, transportation and lodging nationally, and at the local level, trail-based tourism is equally important. Visiting

cyclers and hikers not only generate room nights and patronize restaurants, but also they support many other small businesses and often wander off the beaten path to experience destinations more thoroughly.

Often overlooked is the relationship between trails and property values. The National Association of Home Builders cites trails as the most desired community amenity sought by prospective homebuyers nationwide. Proximity to trails creates higher valued properties.

The Volusia County Council has made a long-standing commitment to the creation of trails. The county’s growing network of trails is designed to meet the recreational needs and desires of all people regardless of age, economic status or physical ability. Among the trail types in Volusia County are multi-use trails, bicycle trails, walking trails, primitive hiking trails, and paddling trails.

The county’s first developed trail is the Spring-to-Spring Trail in western Volusia County. This multi-use trail is a paved, 12-foot wide, separate path within public rights-of-way. To date, nearly 15 miles have been completed and opened to passionate public support. The trail can be accessed through trailheads at DeBary Hall, Dirksen Drive at Gemini Springs Park, the back of Lake Monroe Park and Lake Beresford Park.

The East Central Florida Regional Rail Trail is being constructed along the longest abandoned rail line ever

purchased in Florida. The state purchased the corridor from the Florida East Coast Railway in 2007 and turned it over to Volusia and Brevard counties for development and maintenance. When complete, the rail trail will cover 50 miles, stretching from Deltona to Edgewater with a 10-mile leg through Brevard County to Titusville.

Volusia County opened the first rail/trail segment in 2012. The 5.7-mile leg stretches from Providence Boulevard in Deltona to State Road 415 in Osteen. Construction on two overpasses -- in Edgewater and Osteen -- began early this year. Volusia County’s portion of the Rail Trail is expected to be complete in 2020.

While trails construction takes place on the ground, work continues by the county on the development of a comprehensive new trails “app”, according to Baylie. It will provide a wealth of information on smart phones including the location of natural and paved trails, horseback trails, and paddling (blueway) trails. The app will pinpoint restrooms, water stations and points of interest along the trails. It also will serve as a navigation tool for trail users.

For more information about Volusia County trails go online to: Volusia.org/trails. To view a complete inventory of all sports and recreation assets in Volusia County go online to: sportsvolusia.com. The statewide trails website is: visitflorida.com/trails. n

In addition to healthy activity, trails have a demonstrated economic value

volusia’s popular, growing trails have significant economic impact

FFew events in the world hold as much promise for

Volusia County’s economic development program than the biennial Farnborough International Airshow in the United Kingdom. This year the global event was held in July with Volusia County well represented.

Farnborough International Airshow (FIA) is what most aviation industry leaders consider the most important trade show on the planet. The numbers bear this out.

For example, 81 military delegations from 50 countries were in attendance. There were 56 government-invited delegations from 33 countries and 25 delegations from 23 countries that were invited by Farnborough International Ltd., the show’s organizer. Some 1,762 media organizations were credentialed including 40 international broadcast outlets.

But the biggest statistic was the $204 billion in orders announced at the show.

Team Volusia Economic Development Corporation was offered a special opportunity to partner with Enterprise Florida at FIA. Keith Norden, Team Volusia EDC president and CEO, and Denise Mott, director of business development, represented the organization. Their participation was paid by private sector funds.

“It’s an extraordinary event,” said Norden. “Any community that is a serious player in aviation and

volusia county front and center atFarnborough international Airshow

Denise Mott, left, and Keith Norden work the Farnborough Aviation Show.

8

volusia county front and center atFarnborough international Airshow

aerospace must attend FIA if it wants to develop the kind of relationships that can lead to corporate relocation or expansion. Collaborating with Embry-Riddle Aeronautical University and Enterprise Florida gave us a more commanding voice as we presented Volusia County to the world.”

Rick Karl, Volusia County’s director of Aviation and Economic Resources, agreed. “Together with Team Volusia, Daytona Beach International Airport and Volusia County have worked closely with Embry-Riddle Aeronautical University to leverage the county’s aviation assets and create what we hope will become a powerful industry cluster in the aviation and aerospace sector.”

FIA attracts more than 1,500 exhibitors and 100,000 attendees. The show takes place over a week and brings global aviation and aerospace companies to exhibit products and discuss aviation and aerospace industry topics.

Team Volusia worked with a consultant service to pre-schedule meetings with representatives from major aviation and aerospace companies, and consultant firms that assist these companies with their relocations and expansions. According to Enterprise Florida, Florida ranks second among states for aviation and aerospace with more than 2,000 companies that provide 82,000 jobs.

Volusia County offers a wide variety of opportunities for aviation and aerospace companies. Embry-Riddle Aeronautical University, a world leader in aviation and aerospace education, and Daytona Beach International Airport have available land and infrastructure in place for partnerships with aviation and aerospace companies looking to locate on or near a major airport or research and educational facility. Volusia County is also home to several municipal airports with available land in an industrial park setting.

Team Volusia partnered with Embry-Riddle and Florida Power & Light to market Volusia County. The opportunity to exhibit at FIA was made possible through Team Volusia EDC’s involvement as a sponsor of Enterprise Florida’s participation. n

9

R10

Residential and commercial construction permit activity in Volusia County rose slightly in the third quarter when compared to the second quarter, but was below the same period a year ago and slightly behind last year’s pace for the first nine months of the year.

“It’s all part of the rocky road to recovery,” said Sandy Burke Bishop, executive director of the Volusia Building Industry Association. “We are still learning the tune of the market.”

Volusia County and its 16 cities issued 295 single-family housing permits in the July-August-September quarter, according to data compiled by Volusia County’s economic development division. The number is up 5.3 percent from the second quarter when 280 building permits were issued, but it’s down 22.7 percent from the 382 permits over the same three-month period a year ago.

Commercial construction permit activity followed a similar path of exceeding the previous quarter but trailing the third quarter of 2013.

There were 28 commercial permits issued during the third quarter. That’s up 133 percent from the 12 permits issued in the second quarter, but down 6.6 percent from the 30 permits issued in the third quarter of 2013.

“It’s nice to see the third quarter commercial permits rebounded as they did in the first quarter and the average value

increased from the second quarter as well,” said Rob Ehrhardt, director of Volusia County’s economic development division.

RESiDEntiAlThrough the first nine months of the year, builders were issued

923 permits to construct single-family homes in Volusia County. That is down 4.4 percent from the 964 permits that were issued over the same period in 2013.

“We definitely are seeing a flattening out of the numbers and that’s reflecting the national trend for the better part of this year,” said Bob Fitzsimmons, president of the Volusia Building Industry Association and president of Gallery Homes of DeLand. “It’s not a surprise. I said at the beginning of the year we probably would be close to what we did last year.”

A recent survey by the National Association of Home Builders indicated that tight lending standards for home mortgages continue to hold back new home sales. In addition, builders are facing rising costs for labor and material and that is knocking out a certain percent of potential new home buyers. The survey also found that builders are faced with a shrinking inventory of ready-to-build home lots.

Locally, builders are passing on this year’s renewal of many city, county and school impact fees that were suspended during

the worst of the economic downturn. “I’ve had to raise my prices about $20,000 this year,” Fitzsimmons said.

Permit activity in July and August each exceeded 100 for the fifth and sixth time this year. There were only seven months in 2013 when the number of permits passed into triple digits. But, home permit activity slipped to 80 in September, the second lowest monthly level of the year, just ahead of the 73 in June.

The average value of the home building permits issued in the third quarter was $315,254, up from the $303,665 average a year ago. Building permits usually trail the sales contract date by six to eight weeks.

DeLand again led the list of jurisdictions issuing residential permits. The West Volusia city issued 64 single-family permits in the quarter with a total estimated construction value of more than $22.2 million. New Smyrna Beach was second with 58 permits that were valued $17.2 million. Daytona Beach was third with 45 permits valued at $11.4 million, and Port Orange closely followed with 44 permits that had an estimated construction value of $14.3 million.

“While the numbers might be down, we still are seeing areas with strong showings,” said Keith Norden, president and CEO of Team Volusia Economic Development Corp., a public-private business recruitment and retention agency. “I am encouraged.”

third quarter permit activity picks up, but falls behind last year’s pace

News-Journal/BOB KOSlOW

Jeremy Shaw, on the ground, and Travis Hudson of A&W Construction in Daytona Beach work on the drive-through area of the Space Coast Credit Union under construction along Dunlawton Avenue in Port Orange.

News-Journal/BOB KOSlOW

A roofer moves plywood into place on a new home being built by Kolter Homes in the Victoria Hills section of the Victoria Park master-planned community in DeLand.

11

the worst of the economic downturn. “I’ve had to raise my prices about $20,000 this year,” Fitzsimmons said.

Permit activity in July and August each exceeded 100 for the fifth and sixth time this year. There were only seven months in 2013 when the number of permits passed into triple digits. But, home permit activity slipped to 80 in September, the second lowest monthly level of the year, just ahead of the 73 in June.

The average value of the home building permits issued in the third quarter was $315,254, up from the $303,665 average a year ago. Building permits usually trail the sales contract date by six to eight weeks.

DeLand again led the list of jurisdictions issuing residential permits. The West Volusia city issued 64 single-family permits in the quarter with a total estimated construction value of more than $22.2 million. New Smyrna Beach was second with 58 permits that were valued $17.2 million. Daytona Beach was third with 45 permits valued at $11.4 million, and Port Orange closely followed with 44 permits that had an estimated construction value of $14.3 million.

“While the numbers might be down, we still are seeing areas with strong showings,” said Keith Norden, president and CEO of Team Volusia Economic Development Corp., a public-private business recruitment and retention agency. “I am encouraged.”

third quarter permit activity picks up, but falls behind last year’s pace

cOmmERciAlThe 28 commercial construction permits issued in the third

quarter had a total estimated construction value of $38 million. That’s an average of $1.35 million per permit, greater than last quarter’s average permit value of $750,000 for 12 commercial permits.

Daytona Beach easily led in the number and value of commercial construction permits issued in the third quarter. The city issued 11 commercial construction permits with an estimated value of $19 million. The top project was the $10.25-million permit for the Eagle’s Landing student apartment complex off Clyde Morris Boulevard near Embry-Riddle Aeronautical University.

Daytona Beach also issued a $3.76-million permit for the

foundation of the Trader Joe’s distribution center near Dunn Avenue and Interstate 95 in the Gateway Business Center. It also issued a $3-million permit for the Embry-Riddle Aeronautical University athletic center.

New Smyrna Beach issued three commercial construction permits with an estimated value of almost $5.5 million in the third quarter. That included a $3.8-million permit for the construction of a new car and truck dealership for the relocation of the New Smyrna Beach Chevrolet business. The dealership is moving to State Road 44 near the Home Depot store.

Ormond Beach issued two commercial construction permits with an estimated value of $3.2 million including a $1.9-million permit to Valient Equipment at the Ormond Beach Airport Business Park. Deltona issued a single $3-million commercial

construction permit for a Tractor Supply store on State Road 415.Volusia County economic development officials are quick

to point out that the future for commercial development looks promising. Several large commercial projects are not complete, including Daytona Rising, a $400-million upgrade to Daytona International Speedway. Others have been announced but not started, including the $800-million One Daytona mixed-use development across the street from the Speedway, and two $100-million-plus, beachfront condo-hotel developments that have been announced.

“It’s an exciting time for us,” said Norden. “The Trader Joe’s foundation is going in and we will see more coming in and the ERAU research park will produce some good high-paying jobs.” n

0002097956

www.floridabusiness.org telephone: 386.248.8048Volusia County Division of Economic Development, 700 Catalina Drive, Suite 200, Daytona Beach, FL 32114

It’s our business to help your business grow.The Volusia County Division of Economic Development is a free resource available to businesses in Volusia County needing assistance with business planning in the areas of:

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The division specializes in assisting manufacturing and knowledge-based companies with high growth potential

who require capital investment (i.e. corporate headquarters, research and development facilities, etc.) and are in targeted industries such as aviation and aerospace, clean �� �� ���� ��������������� ����� ��� �������� �� �����defense, infotech and life sciences.

The division is a partner with Volusia County’s cities and chambers of commerce to promote the growth of new jobs in their communities.

Call our o�ce or visit our web site at floridabusiness.org for detailed information about available services.

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