Economic Development Agreement - PTC Boyette, LLC. - Infrastructure Funding and Economic Incentive - $55,800,000.00

51:32Great. I was a little nervous about the October one uh deadline, but you know anything that's not finished finalized, we can continue to work on your work. So we'll m we'll make it happen and we welcome all those employees into the family. And now we are to R79.

51:52Good morning. David Engel, Economic Growth Director of Pasco County. It's my pleasure today to present an infrastructure funding and economic incentive proposal and agreement for your consideration in one of the largest employment center areas of Pasco County. I'd like to kind of structure the presentation in three segments. I'll give you provide an overview of the project. We have Mr. Michael Wolf, Master Developer Principal, here to discuss the project and the credentials of the

52:22organization which will be bringing this project forth, and then a any type of deliberation and questions you may have afterwards for the team.

52:31The property in question is located in the southeastern quadrant of State Road 52 I-75. It consists of nine hundred and sixty-five acres. The developer purchased the property and closed in December of 2021 for $52 million and is currently proposing a mixed-use MPUD consistent with the Employment Center future land use for the property. The project will have 4 million square feet of industrial,

53:02725,000 square feet of office. 400,000 square feet of retail uses, 300 hotel rooms, and 3,500 dwelling units. The benefits of the project related to economic growth are profound because we're focusing on installing all the public master roadway and utility infrastructure in the connected city employment area. That will be on the developer's property and off site to

53:32serve the entire area. Secondly, we want to accelerate employment center vertical development along the I-75 corridor. Because of the pressures in the marketplace and our lack of inventory, we do not have suitable space for companies to come in into that area right now and we do have tremendous demand for that. And the developer has uh we've requested and the developers agreed to increase the industrial entitlement from 1.8 million square feet of industrial to

54:024 million square feet. That's that's over a double there. The property is the crosshatch land, that's the nine hundred and sixty-five acres. Uh to the right of McKindry, which will be renamed Boyette, which is on the easterly side of Boyette, The developers proposing to construct key connected uh city infrastructure in that area.

54:28The public master road system is a $70.1 million dollar project. That's uh sanitary sewer potable water, reclamation lines, and roadways. And the developer has requested some assistance because we want to accelerate creating a development ready environment in the employment center. And we're proposing to provide $46.2 million in ad valorem equivalency grants. That's a form of a rebate. The developer pays taxes in year one and

54:58gets rebated a portion of the taxes in year two, which is $33. 3% for most of the development and 20% for the multifamily. The project completion of all the $70 million worth of infrastructures in three phases with a terminating target date of December 31st, 2028. The employment and center incentive is very simple. The developer is proposing to put uh construct at least one million square

55:28feet of industrial office building or industrial buildings as its first phase, and they're seeking help with the master utility system, which will be $9.6 million. This is the most economic incentive that we provided to date. The Rooker project, for example, which we provided Pads and Poor's funding, was $9. and eighty cents a square foot and this is nine dollars and sixty cents a square foot.

55:54The benefits of the project are profound. First of all, on the ad valorem rebates. Um during the The county will capture at least, this is an at least over the period of time that we're giving providing the rebates, $300 million in net money coming into the general fund. The project will generate $386.6 million and the developer in its totality is asking for $55.8 million. The annual Gross County

56:24product is $604 million a year, contributing and injecting money into our economy. And there are 6,000 full-time jobs that will be created once this project is completed. The the developer's uh market consultant and some of the staging and Timeline information provided by the developer. The build-out is approximately twelve to fifteen years to have this project fully completed. Now, the first ten years of construction

56:55consists of construction and then phasing of development. And just based on that 10 years and rounding out the return on investment for this incentive request and the infrastructure funding is 35 times. Once the project is complete, it'll be over a uh one dollar of contribution by the county will give us over a hundred dollars in return to the local economy. So this is the most productive agreement that I brought forth to date to the board. There

57:26are specific features with this economic development agreement that make it quite unique. Number one, All Advalorum rebate funds go into an escrow account. The developer cannot access these funds until it reaches one million square feet of industrial developments and certificate of occupancies. And this is very profound because what does that one million square feet translate into cost? Well, first of all, they're going to be laying out $25 million in

57:56phase one infrastructure. That's consisting of all the utilities and all the road system to service phase one. Second of all, this is not a built-a-suit. The developers agreeing to over $125 million worth of speculative construction. So when you put it all together, the road acquiring the property utilities, it's well over $200 million before the developer can get one dollar out of the escrow account. So it's a very significant gesture the developer's making in a

58:26commitment to the project.

58:30Um secondly All money given to the developer out of the escrow fund will be performance-based. Uh they have to show us invoices and billings against eligible activities, which are the design and construction of the infrastructure. Money won't be used for buildings or any other thing that the developer may need funds for. This is just for the infrastructure. And most importantly, we're not allowing in the MPUD loom. It's in the agreement, a restriction. You can't take non-residential

59:00development and and and and and modify it to revise it to residential. And we're only allowing a very small component of the loom to to be able to adjust the industrial. Not more than five hundred thousand square feet of industrial use entitlements can be converted to office. And might I add, if it were to happen, the county would endure more tax revenue because offices are m have more value than an industrial building and there'll be more more jobs. Yeah. So

59:31that's the uh that's my overview on this presentation, and I'd like to introduce Michael Wolf to the board.

59:46Morning ladies and gentlemen. Thanks so much for uh allowing me a little bit of time to introduce ourselves. Um I I've gotten to say hello, I think, uh, to a few of you so far, um, but if I may we'll make a uh a brief, more formal introduction. So The property I know you're very well familiar with. I wanna you know thank everybody here at the

1:00:06purposes of the record identified.

1:00:07Oh I'm thank you for reminding me. Hi Michael Wolf, my address is [address removed]. Um So continuing, I uh look I think you've got a good uh representation of where the project is either from you know prior looks at the project as well as David's overview. But if I may let me de you know kind of dive in, tell you a little bit about who Columnar Holdings is. I think some of you are kind of unfamiliar with who we are and how we showed

1:00:37up in uh in the county. Do you have a Thanks. So uh so Columnar Holdings is is part of a bigger organization that you many of you are familiar with here uh cl close in town. Uh trailer construction group or trailer brothers construction uh is the group that uh built the Howard Franklin Bridge back in the nineties. We're also JV partners uh with the Walsh Group, uh currently constructing the new expansion of the Howard Franklin Bridge not far from here. Uh

1:01:07next slide please. And so underneath that, this is that that company by the way is a third generation company founded in 1954 by the current brothers' uh grandfather and then subsequently run by their father and uncle. Their uh father has passed but their uncle's still alive and the four brothers today run the company. Um you know, since running this since nineteen fifty four, you know, they're they've amassed some wealth. They've formed Trailer Capital, which is a divestor arm of

1:01:37the company, within which we've formed kind of a vertically integrated root uh group of real estate companies, Columnar Holdings, which is the biggest. We're a real estate development company like this. We buy raw land and title it uh and and do these infrastructure improvements and whatnot. We also have construction arms For you know doing vertical construction as well. You can see from the map up here, we've had a very strong presence in the Orlando market for the last nearly 15 years. Developed almost

1:02:085,000 lots there in major master plan communities, largely adjacent to Disney World in a big residential district, not too dissimilar from Connected City and Village of Pasadena. the hill so Very experienced in the space and construction development. We've also got horizontal development going on in the Austin and Dallas markets as well as in Denver. as well as down in southwest Florida where we're right now building about eight to nine hundred thousand square feet of industrial. So we've got experience in kind of all asset classes from residential,

1:02:38industrial, multifamily, single family, and so on. So really glad to have the opportunity to be a part of this project. If you would, next slide please, thanks. This is kind of showing you our ovation project on the west side of Disney. World right outside of Flamingo Crossings and in case you kind of know that horizon is West uh District, which is just outside the Westgate of Disney. Moving on. So next slide, please. Thanks. So we've late shown you here just a little bit of a bubble plan of a framework plan. Obviously right now there's

1:03:09uh you know this is still a work in progress, but what we're really hoping to accomplish is the four million plus or minus square foot business park on the west side of the property up against the interstate. Um we're working really hard and talking with several parties about hopefully a health and wellness uh form of this to consume a good portion, if not all, of the office space. Not all, but a good portion of the office uh use here in the market um as well as you know substantial retail component to help you know

1:03:39serve the uh the residents in the area. And then ob obviously another key part of this that was part of the original connected city plan is the town center. Uh uh so s p page south it's to the left side of the page there. But at Tyndall Road, which obviously is a road that Bifurcat uh bifurcates Epperson Ranch and Murata projects as well as uh Dilect directly reading uh leading to the future uh superpark that the county's been working on for a number of years. So we're we're really excited about that, you know, future

1:04:09retail component as well. We think that'll be a substantial benefit as folks can uh uh reach that through the multimodal systems as you know planned by the counties with the road structure if you will. So just kind of some examples of you know what we're envisioning on the business part. We're working with uh both local and national consultants uh that'll have that experience to not just lay out at large industrial buildings but work with us on the placemaking as well. uh carrying that through. through

1:04:39uh you know to the Health and Wellness Center. We've also working on a partnership that we're using in Central Florida and Orlando right now with the University of Florida and their IFISH group. Uh they've got a tremendous group that has worked with us and and will work with us on this project on kind of sustainable design, parks, wellness, tying in the green belt to those fitness components, uh, et cetera. So we're really excited to be partnering with University of Florida again on that and bring that you know, kind of quality to this development. Next slide,

1:05:10thanks. Again, that town center. We just, you know, we really see the need for that, you know, highly activated space that brings together the current and future residents of the nearby master plans and future master plans that are you know on the out front horizon again as well as being able to draw folks in from you know the future uh from the for the future superpark um and then again as well as having a place to uh you know, bring forward uh all the employees that are gonna be working in this area that need places for dining, entertainment,

1:05:40et cetera, that don't exist today. Next slide.

1:05:44So anyhow that uh I'm available for any questions if you have, but uh otherwise I'll turn it back over to the business folks.

1:05:52Well we didn't get a chance to meet I don't think.

1:05:54Uh Did

1:05:54I meet with you?

1:05:56Briefly.

1:06:00Okay. Madam Chair.

1:06:01Um uh go ahead, Mr.

1:06:05this kind of project and and thank David and all the staff that worked on it too, along with you and coming to this conclusion, it seems to me it's happening very fastly to come to this point. So I think it's a win-win for for the county and and for our developer. We appreciate you being here and building this kind of product for us.

1:06:25No, thank you, Commissioner Oakley S as as as you know well because we sat together with you, this came together very quickly at the end of last year. We closed the week before Christmas and um you know our MPD is working its way through the process expeditionally as as well and and your staff's just been phenomenal at helping work this through the process so we can hopefully get a shovel on the ground before the end of this year. Yes, that's it's

1:06:46a

1:06:46great project. Thank you so much.

1:06:48Commissioner O no, hang on, because we all we there's more of us that have questions or comments. Commissioner Mariano.

1:06:58David Engel is great. uh to see him staying so controlled for this whole thing. But as he says, it's like the best project he's seen come to come to the come to the county. So we're excited about it. Uh appreciate everybody working with the team, as you Joel and uh Pat there. So uh everybody working together to make this happen is a it's gonna be a phenomenal project and helping another development right beside it that's gonna elevate everything as well. So welcome and whatever we can do to help, we're we're here for you.

1:07:24Appreciate it. Thank you

1:07:25so much.

1:07:25Another thing.

1:07:26So okay, and then one more thing. This is in District One.

1:07:34I grew up here in Dade City and went off to school in Tennessee and came back and went to work in a citrus business, but a lot of my classmates and friends that were here and grew up here couldn't go off school and come back over jobs and this presents us with a a lot of jobs and places to live and a very good environment for our residents in Pasco County. I appreciate it.

1:07:54Yeah, so I didn't know much about your company and I'm gonna do a little more research but th this looks absolutely fantastic. I'm really excited we're getting this quality of development at 75 and 52. Um And I I'm sure you're gonna be very successful there. Uh I do have a question and I my staff knows I'm gonna ask about trails. 'cause uh I'm looking at the uh the Maratha map but I do I do see some a multi use path. But for me it's super important Um

1:08:24that there's connectivity and I I saw in your renderings or your photographs that you do um emphasize um walkability and bikeability. And I'm so thankful they're not on the road, but you have some dedicated Um opportunities, what's the plan for here? And um so many of our communities are using golf carts to get around. I want to make sure that we've uh allowed for golf carts to be able to come from the residential and the communities

1:08:55over to to access all your retail. So

1:08:58Yeah, no, you're absolutely correct on that. And and that was um a substantial part of uh our negotiation and working together with staff was to make sure that we kept sort of all that goodness and richness that's been baked into the Connected City Master Plan and bringing it into here even though we're s you know staying with the EC zoning. So all of the right-of-way sections uh in the mixed use part of the project will continue to maintain. Those multimodal trails for the golf cart access for pedestrian for bicycles. We're actually

1:09:28working right now with the engineering group to, you know, with height who you're familiar with and here is here today to expand on the width of that trail system so that it really picks up on that park-like system. We're working as well with our environmental folks on how to. enhance that green belt section again together with University of Florida and what they like uh to see so that it's got that you know fitness component, education component. We just think it's so important to really truly get

1:09:58that activation to have folks be able to bike over, run, bike, golf cart, what have you. We've got the proximity, we've got those residents and As as you kind of touched on it, it's a win win for everybody. For our residents to be able to come do it, for the businesses to, you know, want to be here. If if we don't have those components, we won't be able to activate that space. So we think it's truly important to and critical to the success.

1:10:22There there is the probably the most major trail of the county coming north of of fifty two there. It's called the Orange Belt Trail.

1:10:32Okay.

1:10:32Um it's gonna be um behind one one Pasco Center to the north. Right. But that trail follows the abandoned railroad line corridor that goes down to Trinity and connects with the um um Penales Trail. Okay. And so we want to make sure that we're keeping that in mind. And Well I have an engineer sitting over there. Um for some reason I haven't been able to be successful to move our multi use paths away

1:11:03from Being swished up against the road? So they're really more glorified sidewalks than a ve a nice trail. So I just want to remind everybody Because a a land use attorney brought it up to me. Not the one sitting here. But another one that He said, Well you're you require two feet and I said, No no that's the minimum. The minimum.

1:11:23Right.

1:11:23And in my opinion that minimum should only be exercised when there's a wetland in the way. Right. So um so I look forward I really look forward to this project.

1:11:32Yeah.

1:11:33It's gonna be fantastic for the county.

1:11:35Yeah. Likewise. I appreciate it. Thank you so much.

1:11:37Okay, I'm gonna have the Commissioner One uh is it to be Yeah removed and approved? Second all in favor? Aye One seeing you again.

1:11:47Thank you very much. I just wanted to make one last remark. The board today Internalize the funding of seventy million dollars worth of employment center infrastructure without a dime coming out of the the taxpayer's pocket. And it will support six million square feet of development because the improvements go off site to the Abbey property to the east. Thank you. Madam Chair. Thank you, Dave.

1:12:11I can't wait.

1:12:13And David, would you still stay hang around for just a little bit? No, I mean that we get to committee reports. Thanks.