COUNCIL AGENDA ITEM
SUBJECT:
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Request to approve the Phase 1 Infrastructure Cost Reimbursement Agreement for the construction of stormwater ponds and Parktowne Boulevard in accordance with the Parktowne Industrial Center Development Agreement.
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DEPARTMENT:
Development Services
SUMMARY:
Development of the Industrial Park is subject to and governed by that certain Development Agreement (Parktowne Industrial Center) with the City, the same being dated February 3, 2003 and recorded as Instrument No. 2003-109432 in Official Records Book 5070, page 2930 of the Public Records of Volusia County, and subsequently re-recorded as Instrument No. 2005-098691 in Official Records Book 5534, page 1733 and which was subsequently amended and restated on July 18, 2016 and recorded in Official Records Book 7288, page 1725 of the Public Records of Volusia County.
The Parktowne Industrial Agreement was established to facilitate the development of an industrial park. The City of Edgewater once owned land within the Parktowne Industrial Park. The Development agreement helped facilitate the evolution of city property into private ownership. The City of Edgewater within the Parktowne Agreement, agreed to build the stormwater system and the roads within the industrial park. City staff have provided this pertinent excerpt below:
In addition, the City agreed to section fourteen, which states the following:
The binding effect provision is just as it sounds. This is a legal obligation that the City of Edgewater must fulfill.
Fortunately, the development agreement has successfully developed most of the land within the Parktowne Industrial Center. This includes most of the City’s obligation to build the stormwater system and road network. One large tract however, has never been developed. A large 83 acre tract in Parktowne was purchased and a site plan has been approved. The development calls for 1 million square feet of Class A industrial warehouse over several phases. The first site plan was issued a development order on April 2nd, 2024. The approved site plan is for two industrial warehouses totaling 291,850 square feet. The developer is willing to build the stormwater system and Parktowne Boulevard on the City’s behalf. The developer has provided the following cost that the City must pay in accordance with the Parktowne Agreement.
The City of Edgewater’s Environmental Service Department provided the contractor of the Public Works Building the cost schedule worksheet. The contractor building the new Public Works Building reviewed the worksheet and approved of the authenticity of the costs.
At the March 3rd, 2025 City Council Meeting, the City Council approved item 8a,
Resolution 2025-R-03; March Amended Budget for Fiscal Year 2024-2025. Within the staff report, the Finance Director provided the following:
A development agreement for Parktown industrial park requires the City to pay the cost of certain road and pond improvements. There will be three (3) phases in the next few years. The first phase is estimated to be $1.4 million, of which $501,033 of the cost is eligible to be funded from transportation impact fees. The remaining $963,941 for stormwater ponds will be transferred from the ARPA economic impact fund to the stormwater capital projects fund. The remaining two (2) phases are estimated to cost an additional $3 million of which $750,000 would qualify for transportation impact fees and the remaining $2.3 million of funds will need identified either use of reserves or other funding source such as debt.
BUSINESS IMPACT STATEMENT:
The total cost for the City of Edgewater to fulfill its legal obligation under the Parktowne Industrial Development Agreement is 4.6 million dollars. City staff do not know how many jobs will be created by the proposed development as it will be entirely dependent on the end user. City staff are fairly confident the million square feet of Class A industrial warehouse will lead to new good paying jobs for the City of Edgewater. City staff have calculated the approximate Ad Valorem tax revenue for the City of Edgewater at full build out of the industrial warehouse complex. City Staff believe the assessed value to be 16 million dollars per 100,000 square feet. At 1 million square feet, this would be an assessed value of 160 million dollars. To determine how many mils this is, we take 160 million and divide by 1,000 which gives 160,000 mils. The City of Edgewater’s tax rate per 1,000 of assessed value or mils is $6.33. $6.33 multiplied by 160,000 is $1,012,800 in ad valorem tax revenue per year at full build out. At full build out, the City’s return on investment is 4.6 years.
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
BUDGET AMENDMENT REQUIRED: ☐ Yes ☒ No ☐ Not Applicable
RECOMMENDED ACTION:
Motion to approve the Phase 1 Infrastructure Cost Reimbursement Agreement.