LEDC Presentation to Lakeland City Commission January 21, 2020 Sill It?! Agenda • LEDC Member – Economic Impact • Two Stories • 2020 Priorities • Community Priorities • New Sources of Revenue • LEDC Board & High Skill Engagement • How might we plan for 2020 and beyond… LEDC Member Economic Impact Company 2012 135 Members 2018 135 Members Increase/Decrease Number of Jobs in the Community 42,000 43,000 1,000 New Jobs Appraised Value of Real Property $1 Billion $1.92 Billion 92% $15 Million $30 Million 100% $865 Million $1.38 Billion 60% Annual Tangible Taxes Paid $14 Million $19 Million 36% Annual Lakeland Electric Payments $64 Million $44 Million -31% Annual City of Lakeland Water Fees Paid $2 Million $2.9 Million 45% Annual City of Lakeland Wastewater Fees Paid $1 Million $1.5 Million 50% $1.48 Billion $1.77 Billion 20% Annual Ad Valorem Taxes Paid Assessed Value of Tangible Personal Property Annual Payroll • 91 LEDC members were constant from 2012 to 2018 • 47 out of 60 of Lakeland’s largest permitted projects since 2014 have been built by LEDC members Top 10 City Projects - 2014 • Amazon Build Out $25,500,000 • Interstate Commerce Spec $12,000,000 • Amazon Conveyor System $11,500,000 • FSC Becker Business $10,000,000 • Arbor Hills Retirement $10,000,000 • DS Services $ 9,500,000 • Parkway Partners Spec $ 8,300,000 • Lakeland Regional $ 8,200,000 • Hobby Lobby $ 6,200,000 • Dick’s Sporting Goods $ 5,600,000 LEDC Members Yellow – Private Sector Top 10 City Projects - 2015 • LRH Pavillion for Woman & Ch. $87,000,000 • LRH Pavillion for Woman & Ch. $19,000,000 • Joker Marchant Stadium $40,500,000 • Southern Wine Expansion $38,000,000 • Amazon Build Out • Rooms To Go Expansion $25,000,000 • LRH Parking Garage $25,000,000 • SEU College of Arts & Media • Poly Multi-Family Student Housing $18,000,000 • LRH Medical Office (Harden Blvd) $25,500,000 $19,000,000 $14,000,000 LEDC Members Yellow – Private Sector Top 10 City Projects - 2016 • Pepsico Warehouse $39,000,000 • Bridgewater 275,000 $24,000,000 • LRH Pavillion for Woman & Ch. $22,000,000 • Pepperidge Farm Expansion$11,000,000 • Residential Lake Parker $9,600,000 • MRO Hangar at Lakeland Linder$8,600,000 • Pepperidge (Interstate Commerce) $8,500,000 • Ruthven Spec Drane Field • Staybridge Hotel $8,400,000 $8,300,000 • Audi Dealership$5,200,000 LEDC Members Yellow – Private Sector Top 10 City Projects - 2017 • Hilton Hotel at Lakeside$9,100,000 • GEICO Expansion $8,000,000 • Publix New Tampa Hwy Remodel $6,300,000 • LE Co-Generation on Glendale $6,000,000 • LA Fitness $5,200,000 • Lakeland Country Club $5,000,000 • Old Dominion Freight on Combee • Lakeland Center Remodel $4,000,000 $4,000,000 • Lakeland Christian Fieldhouse $3,700,000 • Lakeland Toyota Collision Ctr. $3,500,000 LEDC Members Yellow – Private Sector Top 10 City Projects - 2018 • IKEA $44,100,000 • Blue Steel Spec Warehouse $42,000,000 • Blue Steel Spec Warehouse $30,100,000 • Pepsico #2 $28,000,000 • Auto Owners $11,000,000 • West Lake Apartments $10,300,000 • City of Lakeland Lime Street $7,000,000 • Ruthven Spec Anchuca $6,800,000 • Catapult $6,500,000 • Treatt Expansion $6,400,000 LEDC Members Yellow – Private Sector Top 10 City Projects - 2019 • Transwestern Spec $66,000,000 • Conn’s Furniture $46,000,000 • Amazon Cargo (Shell Only) $42,000,000 • Publix Corporate Office Expansion $31,000,000 • Rooms To Go Expansion$17,000,000 • Heritage Parking Garage $17,000,000 • Lake Gibson Village (Nursing) $14,000,000 • Springhill Suites $13,000,000 • Mirrorton Apartments $11,000,000 • Interstate Commerce Spec $8,400,000 LEDC Members Yellow – Private Sector Story #1 - Catapult • • • • • • • • • • • • • • • • • Sep, 2015 – Announce Catapult purchases Cash Feed & Vacuum Building Oct, 2015 – Krap Art Nov, 2015 – Property Closing Spring 2016 – Preliminary Design May, 2016 – Historic Preservation – Staff yes, Board no Jun, 2016 – Historic Preservation – Staff no, Board yes Jul, 2016 – City Commission approves land donation Fall 2016 – Spring 2017 – Design Summer 2017 – Window restoration, footers, etc. Sep, 2017 – Hurricane Irma Oct, 2017 – Building Condemned Dec, 2017 – Demo begins Spring, Summer 2018 – New Building Design Aug, 2018 – Construction Bid Oct, 2018 – Site work Jan, 2019 – Construction Starts – pour slabs Mar, 2020 – Ribbon Cutting Story #2 – Heritage Parking Garage • Dec, 2014 – Parking presentation at LEDC Meeting at CPS • May, 2016 – Kimley Horn Parking Study #1 • Oct, 2016 – LEDC High Skill Retreat Meeting – City, LRH, MIDFLORIDA, Aspyre • Jan, 2017 – Kimley Horn Parking Study #2 Sep, 2017 – LEDC Blog on need for Downtown Parking Garages • Oct, 2018 – Greenville City Visit – 12 Parking Garages • Dec, 2018 – City Commission approves garage • Winter & Spring, 2019 – Design • Jun, 2019 – Construction begins • Feb, 2020 – Ribbon Cutting 2020 Priorities and - Community Priorities - New Sources of Revenue Community Priorities • Commercial Air Service • Police Station Parking Garage • Highline • Trail System • Corridor Improvements • Design Center Commercial Air Service • American is adding flights at their new terminal in Charlotte in 2021. City of Lakeland and the County (Tourist Development Council) have committed up to $2 million to lure American to Lakeland. • The City’s Airport consultant recommends at least $1 million from local business to support this effort. • How might LEDC help the City get private investors to participate? Police Station Parking Garage • City of Lakeland is considering building a parking garage on the surface lot they own behind the Lakeland Police Department. • The garage is projected to have up to 1,300 parking spaces and would provide parking for development of up to 4 city blocks. • How might LEDC help make this a reality? – – – Public/Private Partnership Use Catalyst Site funds Find a large private user Highline • VISION – Creates a new ”big city” amenity for Lakeland similar to oceanfront property – The Vision alone is inspiring and easy to get behind, a simple concept that immediately makes sense when seen • PEDESTRIAN OVERPASS CONNECTION – Creates pedestrian overpass across RR – Connects 10-acre site to Lake Mirror • POTENTIAL DEVELOPMENT – Gives us a long-term plan for developing key sites on & around Lake Mirror – Plans for, and connects, potential users to parking solutions km!? 1' . ,Seoul a I Delaware NYC Highline ??axTrail System Connecting Lakeland Neighborhoods • City of Lakeland Parks & Recreation system is excellent and a major priority for the City and its residents. • Lakeland’s park system would better serve the community if it was connected to the entire city. • Does the City have plans to connect Bonnet Springs Park to the rest of our community? If not, should they? • How might LEDC help connect our parks system and all Lakeland neighborhoods? Corridor Improvements • Should the City consider piloting extra-wide pedestrian corridors in Downtown & Dixieland? – Kentucky Avenue between Lemon Street & Main Street – Dixieland along Florida Avenue • How might the LEDC help create a plan to improve and connect downtown and our Medical Corridor? Dixieland Diet - Work begins in begins in Kentucky Avenue • Should the City consider eliminating parking on Kentucky Avenue between Main & Lime Streets using that space for expanded sidewalk and café seating? LAL Poll Would you like to see streets permanently closed off for outdoor events or sidewalks expanded with landscaped promenades in Lakeland? Yes, let me walk to all the dining entertainment. No, I prefer to drive to every destination. I'd like to hear more about how this can work. 320 VOTES Design Center • The City of Lakeland has experienced significant support for the recent work done by local architects regarding three Catalyst Sites and Highline plans. • How might we build off this early support from the City Commission, Staff and our citizens? • How might we expand the Catalyst Site plan beyond Downtown? • How might Lakeland create a Design Center where all citizens are invited to weigh in on the future of our community? New Sources of Revenue • What is the status of Lakeland’s major existing revenue sources? • Would we still be competitive if we increased taxes and fees? • How might we be creative and/or innovative with regards to developing new sources of revenue for the City of Lakeland? What is the status of Lakeland’s current Revenue Sources? • Lakeland Electric • Ad Valorem • Hospital Lease Payments to City of Lakeland Year LE Dividend to City Ad Valorem Hospital Payment Totals 2012 $23,192,000 $19,888,000 $12,486,000 $55,566,000 2013 $23,481,000 $20,596,000 $12,100,000 $56,177,000 2014 $24,877,000 $21,904,000 $12,100,000 $58,881,000 2015 $28,954,000 $28,345,000 $12,100,000 $69,399,000 2016 $29,584,000 $30,495,000 *$24,155,000 $84,234,000 2017 $29,223,000 $33,225,000 $13,619,000 $76,067,000 2018 $29,702,000 $35,885,000 $13,994,000 $79,581,000 $14,379,000 43.21% 2019 • LE, LRH & Ad Valorem combined - 43% increase over 7-year period or 6.2% annual increase • LRH - Future increases were scheduled to be 2.75% a year. City Commission froze the 2.75% annual increase for 5 years • Property Values are increasing by 6.30% in FY’20 City of Lakeland Taxable Values Year Taxable Value % Inc/De c Millage Rate Net New Const New Construction % Inc/Dec Total Revenue 2012 $4,263,741,000 -4.9% 4.6644 $90,215,000 73% $19,888,00 0 2013 $4,415,567,000 3.6% 4.6644 $49,153,000 -46% $20,596,00 0 2014 $4,695,993,000 6.4% 4.6644 $61,902,000 26% $21,904,00 0 2015 $5,093,969,000 8.5% 5.4644 $88,916,000 44% $28,345,00 0 2016 $5,480,288,000 7.6% 5.4644 $107,602,00 0 21% $30,495,00 0 2017 $5,970,934,000 9.0% 5.4644 $147,196,00 0 37% $33,225,00 0 2018 $6,449,074,000 8.0% 5.4644 $129,252,00 0 -12% $35,885,00 0 43% 80% • $1.1 Billion – Industrial ($28 Million exempt) 51% 19% $674,236,0 •TOTAL $1.6 $36,369,566, Billion – Commercial ($75 Million exempt) S 000 00 • $2.2 Billion – Taxable Single Family Residential ($1.6 Billion exempt) LE Residential Rates vs. Competitors $/1,000 kwh $140 $120 $100 $80 $60 $40 $20 $0 L d an l e ak r Sa a ot s a Br on t en d a O do n rla ity C t an l P m Ta pa Ja e ill v on s ck ee s as h lla Ta O ca la a G e ill v es in LE Commercial Rate vs. Competitors Commercial GSLD Rates $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 r Sa a ot s a Br on t en d a ity C t an l P m Ta pa d an l ke La O do n rla ee s as h lla Ta Ja e ill v on s ck O ca la e ill v s ne i a G Lakeland Millage Rate vs. Polk Municipalities 12 10 8 6 4 2 0 tH s e cr ill H e ts h ig s y rt le of rk ke ity ity de ee nd en ed on rr le o a a r o t a v C a d a C l e a r f p d l i P L a e b W Al lk tp d un rn m H ke e es en M ul s l Ba o n u a e D a e v n r o g P k M k a b L rt a H ai Fr te hl D Ea e La La H Fo Au in g k i W H La ow rt Municipal Millage Rate Comparison 2019 7 6 5 4 3 3.515 0 4.100 0 5.464 4.747 4 4 6.650 6.207 6.293 6.617 0 7 5.715 5.897 6 0 6 7 2 1 0 r Sa a ot s a ee s as h lla Ta a G e ill v es in d an l ke La ity C t an l P Br on t en d a m Ta pa Ja e ill v on s ck O ca la O do n rla New Sources of Revenue Hospitality Tax • In 2001, the City of Greenville began collecting a 2 percent hospitality tax on prepared meals and beverages, including alcoholic beverages, beer and wine, sold within the city limits. This tax generates over $10 million a year for the City of Greenville. Cleveland Heights • Cleveland Heights recent losses: – $1,207,000 - 2020 Projected – $1,200,000 – 2019 Projected – $ 750,000 – 2018 – $ 587,000 – 2017 – $1,149,000 – 2016 – $1,003,000 – 2015 – $5,896,000 – TOTAL • How might we creatively make long-term recommendations to solve the issue of annual losses experienced at Cleveland Heights? – Contract with a Private Operator – Close the Golf Course and develop the property • Park • Commercial Development • Residential Development (800 apartments & 200 homes = $1,000,000 tax revenue). • Erasing the loss of $1.2 million and adding $1 million in revenue would be an annual increase of $2.2 million to the City of Lakeland. Lake Mirror Redevelopment • Summit Consulting will break ground on a $50 million facility on Lake Mirror in March: – The former Fire Station site is vacant and has produced less than $25,000 a year in parking fees – At current rates, Summit’s new facility is estimated to generate $220,000 city taxes and $270,00 in CRA income or a total of $490,000 annually. • The City of Lakeland currently owns over 60% of the land surrounding Lake Mirror. Are there additional opportunities we should consider for redevelopment around Lake Mirror? Could we convert other City-owned facilities into income producing properties? • We are currently in the process of planning for a new multi-modal facility at the Lakeland Center that may provide us with the opportunity to redevelop the Citrus Connection transportation hub and Lake Mirror train station. What would be the highest and best uses of those properties? Lake Mirror Redevelopment • What about the Fire Station? We have moved it once (Summit), should we consider moving it again? That is a very desirable piece of land and facility, is a Fire Station the highest and best use of that property? • What about the Lake Mirror Center? We currently subsidize this complex $900,000 a year. Can we find another location for small community meetings and our community theatre? Could a redevelopment of that property include those uses but become income producing? • What about Lakeland Electric? If Summit will produce almost $500,000 a year, what would Lakeland Electric’s facility produce in tax revenue if it was converted to private office or residential space? How can the LEDC help? - Actively engaged - Tackles the hard issues - Builds community LEDC Board Actively Engages • DOWNTOWN DEVELOPMENT – Jeff Chamberlain – Jobs • 1,000 New Jobs Downtown by 2020 – Bank of America – The Ledger – Citrus Mutual – Wesley Beck – Capital Investment • • • • Catapult on Lake Mirror The Joinery on Lake Mirror Corporate Office on Lake Mirror Heritage Spec Office Building Tackles the hard issues • PUBLIC EDUCATION – Brian Philpot – David Hallock • CITY COMMISSION – Brian Philpot – Jeff Chamberlain – Cory Petcoff – Todd Baylis – Wesley Beck – David Hallock – Callie Neslund – Will Harrell • PARKING GARAGE – Wesley Beck Builds Community • CATAPULT – Callie Neslund – Cory Petcoff – Wesley Beck – Todd Baylis – Brian Philpot • YLAKELAND – Andy McEntire – Jeff Chamberlain How can we expand our reach? • The LEDC Board has taken a very active and successful approach to solving community issues. • How can the LEDC expand its reach beyond the Board’s efforts? • Can members of our High Skill Team play an active role in tackling community issues beyond writing a check? If so, what would that look like? LEDC High Skill Members • • • • • • • • • • • • Brian Philpot – AgAmerica Wesley Beck – Aspyre Properties Cory Petcoff – Baron Realty Chris Bailey – Charter/Spectrum Jay Chastain – ChastainSkillman Bill Mutz – City of Lakeland Tony Delgado – City of Lakeland Anne Kerr – FSC Randy Avent – Florida Poly David Hallock – GrayRobinson Will Harrell – Harrell’s Melody Rider – Keiser • • • • • • • • • • • • Joel Ivy – LE Elaine Thompson – LRH Karen Turner – Lockheed Martin Steve Boyington – The Lunz Group Steve Moseley – MIDFLORIDA George Lindsey – Polk County Bill Beasley– Polk County Angela Falconetti – PSC Jeff Chamberlain – Publix Mark Cabrera – Saddle Creek Kent Ingle – SEU Jason Witty – Southern Wine Catalyst Plans/Community Design Center • A gathering place where community and catalyst plans are created, shared with everyone in the community, consensus is built, and execution happens. Here are some examples of potential projects: – Connected Trail System Examples: • Bonnet Springs Park to Downtown • Bartow Highway Rails to Trails through Holloway property to Downtown – Corridor Improvement Examples: • Lakeland Regional to Downtown • Kentucky Avenue – LEDC High Skill Team • Jay Chastain • Steve Boyington • Wesley Beck • David Hallock • Cory Petcoff • Melody Rider • Danielle Drummond • Randy Avent • Brad Lunz City Revenue • Create new sources of revenue or expense reductions for the City of Lakeland: – Hospitality Tax – Cleveland Heights redevelopment – Lake Mirror Center redevelopment – Fire Station redevelopment – LE Building redevelopment – LEDC High Skill Team • Steve Moseley • Mark Cabrera • Jason Witty • Sylvia Blackmon-Roberts • Jeff Chamberlain • Brian Philpot • Tony Delgado Next Steps? • Will the City Commission consider these priorities at your Strategic Planning Retreat this Spring? • Will the City Commission consider new revenue sources or expense reductions to fund these priorities at your Strategic Planning Retreat this Spring? • Is the City Commission interested in creating a community design center where everyone is welcome. A place where our citizens can give meaningful input on future design plans for our community. • How might the LEDC, it’s members, board and High Skill Investors help? Where can we partner? How can we serve? • As we have seen, many of these private/public projects take years to come to fruition. Today, we are reaping the benefits of seeds planted 4 or 5 years ago like Catapult, Heritage Parking Garage, Summit, The Joinery, Spring Hill Suites, etc. • What seeds does this Commission want to plant now that will bear fruit in 4 or 5 years? What are our priorities and how are we going to bring them to fruition? It’s time to set our priorities for 2020 and beyond…