Qu Economarterlyic Development - Volusia County · 2017. 4. 9. · Majik, Alchemy, and the company’s own Factory Canopy Piloting Te am. ... The company’s products portfolio includes

An official publication of the Volusia County Economic Development Division — Fourth quarter 2011 �

Cover story – Bob’s Space Racersmasters the business of fun – Page 6

QuarterlyE c o n o m i c D e v e l o p m e n t

An official publication of the Volusia County Economic Development Division

Fourth quarter - 2011

Performance Designs hits its markin skydiving – Page 3

Trails provide recreation, economicopportunity– Page 8


Pictured, left to right, back row: PatriciaNorthey, vice chair, District 5, and Andy Kelly,District 1. Front row: Joshua J. Wagner,District 2; Joie Alexander, District 3; Frank T.Bruno, Volusia County chair; Joyce M.Cusack, at large, and Carl G. Persis, District 4.

Welcome to Economic DevelopmentQuarterly, a publication brought to you by theVolusia County Economic DevelopmentDivision. This publication is produced forpeople who have an interest in the area’sbusiness, economic development and realestate market.

Our goal is to use this publication as aneconomic development tool, to keep youinformed and to provide information and sta-tistics that have meaning to your business.This publication is owned by Volusia CountyGovernment and is produced and sold by theVolusia/Flagler Business Report through con-tract. Content is solely the responsibility ofthe Volusia County Economic DevelopmentDivision.

We’re interested in your comments andstory ideas. Please contact David Byron,community information director, at 386-822-5062, or e-mail [email protected]. Ifyou’d like to become an advertiser, pleasecontact Lois Duncan at the Volusia/FlaglerBusiness Report at 386-681-2500.

Economic Development Quarterly is producedand mailed quarterly to a minimum of 10,000area businesses by the Volusia CountyEconomic Development Division. It is offeredfree to readers, including real estate profes-sionals, leaders of business, industry, educa-tion, government and selected organizations.If you are interested in receiving this publica-tion, please contact the Volusia/FlaglerBusiness Report at 386-681-2500.

AdvertisingVolusia/Flagler Business Report

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PublisherVolusia County Council/

Economic Development Division800-554-3801386-822-5062

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Volusia County Council


PPerformance Designs Inc. is a

world-class parachute manufacturerfounded by a young skydiving enthusiastmore than 20 years ago.

Bill Coe has never wavered fromhis commitment to improving andadvancing his sport. Today, skydiversaround the world respect the researchand development as well as the designand manufacturing of this DeLand com-pany.

“The executives of PerformanceDesigns appreciate the company’s hum-ble beginnings and remain committed tomeeting the needs of their customers,”said Jayne Fifer, president and CEO ofthe Volusia Manufacturers Association,of which Performance Designs wasnamed the 2010 Manufacturer of theYear. “It is a company that has com-manded the respect of the industry andis revered among skydivers all aroundthe world.”

The company’s plant is across thestreet from the DeLand MunicipalAirport. Its products are shipped global-ly and the company has helped makeDeLand synonymous with skydiving.Today skydiving students, enthusiastsand competitors from around the worldmake their way to DeLand and the airover the city’s airport.

Performance Designs’ distinctivetandem canopies have been an industryfavorite from the company’s early days,permitting hundreds of thousands ofpeople to make their first jump with aparachute built for two. Higher perform-ance models continue to be flown byteams and individuals such as ArizonaAirspeed, the Golden Knights, DeLandMajik, Alchemy, and the company’s ownFactory Canopy Piloting Team.

“We are committed to the develop-ment of products that set the standardfor performance,” said John LeBlanc, thecompany’s vice president. “Of course,the true testament is the legions of sky-divers that have been flying PerformanceDesigns’ main and reserve canopies foryears, and their unmatched enthusiasmfor the quality of our products and ourcommitment to customer service.”

Coe enlisted the aid of LeBlanc in1984, when the company was barely twoyears old. The two met while studyingaeronautics at Embry-Riddle AeronauticalUniversity.

Improving the performance of ramair canopies, or wing-type gliding para-chutes, has been a primary goal ofPerformance Designs throughout its his-tory. The company has introduced lead-ing edge concepts and materials to the

parachute industry and helped revolu-tionize parachute design. By continuallyelevating standards of performance,quality, and customer support the com-pany has produced some of the mostsuccessful ram air canopies everdesigned. The company remains com-mitted to research and development soit can satisfy customer needs with inno-vative products that stand the test oftime.

The company’s products portfolioincludes more than 250 parachutes ofvarious sizes and model combinations.The company primarily serves sportmarkets, although it does supply highlyspecialized products for elite teams inthe Army, Navy, Air Force, and Marines.Each parachute is designed to fly differ-ently, which accounts for the variety ofmodels.

Design limitations in the 1980simposed by then-current fabric technol-ogy became more significant. Fabricpermeability was proving to be a hin-drance to the development of moredynamic wings. Performance Designsresponded by devising a process to pro-duce a completely zero porosity fabric(no air passes through). This processwas provided to a fabric converter, mod-ified, and was able to be manufacturedin production quantities.

Freed from the limitations previ-ously imposed by air leaking throughthe fabric, the company’s vision of thefuture for ram air canopies became crys-tal clear. In 1989, after four years indevelopment, the company introduced aparachute with the new zero porosityfabric. The product design and the fab-ric was a perfect match made for the sky,and remained the benchmark for canopyperformance for over a decade.

In pursuit of efficiency and consis-tency, Coe designed and constructed acomputer-controlled laser cutting sys-tem to replace the traditional method ofcutting canopy parts by hand. The lasertables have made it possible to cut andmark every piece of material through alaser cut code, and have taken the con-sistency and precision of canopy manu-facturing to a whole new level.Performance Designs is the only manu-facturer in the industry with such capa-bilities, Coe said.

The company continues to lead thefield in many areas of skydiving technol-ogy. Performance Designs has weatheredthe economic storm and has experi-enced an increase in sport markets. Inmany ways, the sky’s the limit. ■

Performance Designs hits its mark in skydiving

This free-spirited skydiver struts his stuff from the air. His colorful parachute was made in DeLandwith cutting-edge technology


CEconomic development 101:

The economicdevelopment process

Communities that desire a better stan-dard of living through job creation and com-munity development progress can be success-ful in attracting new business, growing start-ups, and helping their existing businessesexpand despite a lack of funds from federaland state government. It all starts with eco-nomic development strategic planning.

Strategic planningFirst, there are several strategies to the

creation of a successful economic develop-ment plan. For example, many businessopportunities require additional infrastruc-ture. Government leaders responsible forlong-term planning must understand thatexpanding the tax base is necessary forgrowth, but they still need to make a convinc-ing case to their residents, taxpayers and theexisting business community.

When a community goesthrough an analysis of its strengths,weaknesses, opportunities, andthreats (SWOT), it faces the chal-lenge of matching its strengths andopportunities with existing or newstrategies. To move forward, theessential action steps of organizing,planning and execution are necessaryto implement the strategic plan.

Long- and short-termstrategies

Every strategy must be organ-ized and task-assigned. Once organ-ized, a prospective project’s feasibility must beevaluated along with the financial, technicaland human resources needed for implementa-tion. For example, a downtown developmentstrategy frequently requires physical improve-ments and the promotional and businessrecruitment activities on the front end.

Substantial projects, such as industrialparks, office complexes, hotels and conventioncenters take several years to construct andbecome operational, and may take many moreyears to have a major impact on the localeconomy. Sometimes too much emphasis isplaced on short-term gains, such as tax incen-tives and other credits to businesses, ratherthan focusing on the far-reaching benefits ofsuch activities.

Making it happenAfter organization and planning, strategy

execution begins. For a business recruitmentstrategy, this can include attendance at indus-try trade shows, contacts with site selectors,and development of marketing brochures,websites and other programs.

Like everything else, economic develop-ment requires money. Funding needs to be

addressed for staffing, business development,and long-term investments in infrastructure.

CommunityOne of the key elements in economic

development success is community capacity.As a rule, there are seven primary elements ofcommunity capacity for business develop-ment: a business development strategy; staffand team development; industrial land andinfrastructure; targeted industries; marketing;prospect and lead management; and if all goeswell, ability to close the deal.

PropertyIndustrial land and infrastructure are

critical to economic development success.Ideally, a community has control of availableland that is competitively priced and is prop-

erly zoned with the necessary infra-structure. On a scale of zero to 10, thisis a “10” on the list of economic devel-opment prerequisites.

This is why Volusia’s County andcity governments have placed somuch emphasis on the creation of“shovel-ready” industrial parks. Thecounty’s DeLand Crossings IndustrialPark, Parktowne in Edgewater,Ormond Beach Industrial Park, andthe new industrial park at the DeLandairport are prime examples. Very fewdevelopers here have been willing to

invest in the economic development potentialof their own properties.

In spite of successful, cohesive marketingand business recruitment efforts, the wholeprocess grinds to a halt if there is no place fora new company to call “home”. Developedand available infrastructure is a key element inthe planning strategy because most compa-nies won’t wait the two to three years it takesto make an industrial site ready for building orplant construction.

Civic attitudeNo matter how strategic a community is

in selecting its direction, and how sophisticat-ed it is in terms of optimizing communitycapacity, the intangible of “civic attitude” willgo a long way to achieving economic develop-ment goals. If a community’s attitude is apa-thetic, and there is a lack of unity, and a reluc-tance to progress, these intangible signs areclear to an economic development prospect.The same can be said of a community that isupbeat, cohesive, friendly, helpful, organized,and focused. ■

By Phil Ehlinger,DirectorVolusia CountyEconomicDevelopment

The University of Central Florida has opened a business incubator at Daytona BeachInternational Airport (DBIA) in partnership with Volusia County Government. UCF isthe national leader in business incubator programs and the facility at DBIA is its ninth.The business incubator program already has four tenant companies. They are Innovation,Research Engineering & Development, a company using renewable and energy-efficienttechnologies; Fusion Fitness Design, a manufacturer of high-end, high-quality strengthtraining equipment; Black Creek Financial, a financial services, audit risk and manage-ment consultant; and a company dealing with quality healthcare centers. The incubator isreviewing 14 other applications. It can accommodate up to 20 companies depending onspace needs. Pictured on opening day are, (from left): Carl Persis, Volusia County Councilmember; Jim Dinneen, Volusia County Manager; Joie Alexander, Volusia County Councilmember, Frank Bruno, Volusia County Chair; Pat Northey, Volusia County Council Vice-chair; Andy Kelly, Volusia County Council member; and Josh Wagner, Volusia CountyCouncil member.

UCF business incubatorat DBIA up and running


UUnited Way kicked off its annual campaign with a Rocky

boxing theme – it is United Way against this economy, we may

be down but we are not OUT!

United Way’s motivated board of directors, led by Elan

Kaney, Cobb Cole, are determined to regain our championship

status and are encouraging all businesses to participate in this

year’s campaign.

Beginning in 1941, United Way (then known as the

Daytona Beach Community Fund) began fundraising in our

community to fill the needs of our citizens. The money that is

raised here stays in Volusia and Flagler counties to provide

direct assistance to our neighbors and friends. Last year one

in three of our residents was served by a United Way-funded

program through our 36 partner agencies and 58 funded pro-

grams.

United Way giving remains one of the most efficient and

effective ways to invest in our community. Our mission is to

increase the organized capacity of our community to care for

its people. We do this by advancing the common good and

focusing on the building blocks to a better life — education,

the cornerstone of individual and community success; income,

by promoting financial stability and independence; and,

health, through promotion of good health and wellness.

United Way also prides itself as being a community

leader by defining and solving community social service

issues and building bridges that connect other community

leaders, agencies and governments to help provide our citi-

zens opportunities for a better life. The partner agencies we

fund provide systems of care for our community ranging from

subsidized childcare from the Early Learning Coalition permit-

ting parents or caregivers to obtain or keep their jobs, to the

wonderful Meals On Wheels provided by dedicated Council

On Aging volunteers who deliver nutritious meals to home-

bound seniors. For a list of all the services we fund, go to our

website: unitedway-vcf.org.

As businesses, United Way and its partner agencies

account for approximately $130 million of budgets that pay

salaries to case managers, therapists and social workers. Our

businesses purchase products from local vendors that con-

tribute directly to our economy that have a multiplier effect of

more than $300 million. According to the study Economic

Contribution of Florida Nonprofit Organizations: A Resource

for the Public Good, not-for-profits are the sixth largest

employer in Florida generating $61 billion in total economic

activity. Statewide, we create 88 million hours of volunteer

time which is equal to the work of 42,000 fulltime employees.

For our local businesses, you can access social services

by dialing United Way’s 2-1-1 to inquire from our information

and referral specialists where you can refer an employee for

help. Or, you can contact our volunteer center to see where

you may be part of the 88 million hours of service to others.

Join us in making this year’s campaign a success by calling our

Resource Development Office at 386-366-9050.

Dona DeMarsh, director of Volusia County Government’s

Community Assistance Division, is chairwoman-elect of

United Way of Volusia and Flagler Counties. She and John

Guthrie of Daytona International Speedway are co-chairs of

this year’s United Way campaign. ■

Guest Columnist:Ray Salazar

United Way, business community teamto tackle health and human service needs

RAY SALAZAR,President/Secretary

Volusia/Flagler United Way

SunRail is on the way. The long-awaitedcommuter rail service that will whisk ridersfrom DeBary to Orlando is scheduled to startin late 2013.

SunRail is a $1.2-billion commuter railproject that is being funded by federal, stateand local governments including VolusiaCounty. It is expected to transport mostlyworkers, but residents and visitors as well,across Central Florida without having to driveon Interstate 4. Additionally, it is projected tocreate thousands of jobs and stimulate eco-nomic development along its route. The sta-tion in DeBary alone is expected to stimulategrowth around the surrounding area. Overall,SunRail is projected to create more than 5,000direct and indirect jobs.

“It has been a long and winding roadleading to the creation of SunRail,” saidVolusia County Chair Frank Bruno. “It’s acomplex project traversing several jurisdic-tions and overcoming challenges of geogra-phy, right-of-way, economics, politics andmore. But it has been designed meticulouslywith passenger safety, comfort and efficiencyin mind. SunRail has evolved and is an excel-lent concept that will help address CentralFlorida’s transportation challenges.”

Bruno is a member of the Central FloridaRail Commission, which oversees the project.

Initially, trains heading from DeBary willdepart every 30 minutes during peak morningcommuter times and arrive back in DeBaryevery 30 minutes during the peak afternooncommuting times. Service will be Mondaythrough Friday. There will be no weekendservice. Trains will travel at a peak speed of79 miles per hour, with an average speed of 45

mph. That means the trip from DeBary toSanford will be about five minutes; 32 minutesto Winter Park; and 45 minutes to ChurchStreet Station in Orlando. Votran will offerbus service from various points to the DeBarySunRail station.

When complete, the SunRail will runalong a 61-mile stretch of existing rail freight

tracks in the four-county area. SunRail’s 31-mile first phase will serve 12 stations, linkingDeBary to Orlando. A DeLand station is partof SunRail’s second phase.

The project’s governing board is theCentral Florida Commuter Rail Commission.It is chaired by Orlando Mayor Buddy Dyerand includes Orange County Mayor TeresaJacobs, Seminole County CommissionerCarlton Henley, and Osceola CountyCommissioner Brandon Arrington. Brunorepresents Volusia County.

With traffic congestion getting worse,SunRail will be a welcome alternative forcommuters. It is one element of a complexsolution to Central Florida traffic woes. That’swhy the Florida Department of Transportation,the federal government, Orange, Seminole,Volusia and Osceola counties, and the City ofOrlando are investing in SunRail. VolusiaCounty Government’s share of the cost is $88million over 30 years.

According to the American PublicTransit Association, traveling by public trans-portation uses less energy and produces lesspollution than travel in private vehicles.

For more information and updates onSunRail go to: sunrail.com. ■

SunRail taking shape in Central Florida

All systems are a go for the Sunrail Commuter System. Trains should be heading to and fromDeBary by late 2013


C O V E R S T O R Y

Bob’s Space Racers mastersthe business of fun

Bob’s Space Racers produces arcade games for worldwide audiences

WWhac-A-Mole. Dolphin Dash. Stinky Feet. Dog

Pounder. If you’ve been to a theme park, a carnival or a fair,you may have been challenged by these and many othergames created by one of the amusement industry’s pioneers— Bob’s Space Racers — located right here in VolusiaCounty.

Bob’s Space Racers occupies 13 acres on 15th Street inHolly Hill. Founded by Bob and Joyce Cassata in 1970, theirfirst game was designed and built in their garage. The com-pany has grown consistently and now employs 80 people ina 200,000-square-foot complex that includes design studios,manufacturing facilities and office space.

“We are fortunate to work in a fun business that pro-duces products that people enjoy,” said company presidentJack Cook, who has been with the firm since 1977. “It’s a fam-ily business that is very specialized and technology-driven.We have a talented, hands-on workforce that produces cre-ative, engaging products known for reliable performanceand exceptional craftsmanship.”

The founders are retired, but the company they builtcontinues to be a force in the highly competitive amusementbusiness.

The company’s products can be found in small one-game family enterprises to some of the largest multi-gameoperations in the world. For example, Bob’s Space Racers’products are in Chuck E. Cheese entertainment centers,Universal Studios, Walt Disney World and Six Flags themeparks. The company even has placed a product package in anew mall in….Mongolia!

“Bob’s Space Racers is a perfect example of how a com-pany can grow from humble beginnings into an industryleader,” said Holly Hill Mayor Roy Johnson. “The folks atBob’s Space Racers export local craftsmanship and expertiseall over the world and we are particularly proud they havechosen to grow their enterprise in Holly Hill.”

While the company manufacturers many games, itsWhac-a-Mole game may be the best known. It features afield of mole characters that pop out of their respectivemole holes offering mallet-wielding players a moment towhack them on the head and score points. The game hasbecome a part of our culture and Whac-A-Mole often isused as a description for life’s challenges. People can relateto the game. There are various home versions and con-sumer products on the market under the Whac-A-Mole

brand. The company makes a line of custom Whac-A-Molegames for executive offices, home game rooms and specialexhibits, adding to its iconic status.

As for the company name “space racers”, it is not thename of a game, but a game feature. Throughout its history,Bob’s Space Racers has produced water games that haveplayers shoot water pistols at targets. Each time a target ishit and points are scored, a rocket ship inches up toward amoon target, ostensibly a race to space — hence, the name,Bob’s Space Racers.

So what does it take to be on the Bob’s Space Racersteam? The company’s people come from backgrounds inarcade, midway and theme park operations. They are engi-neers, graphic artists, designers, and cabinetmakers.

Longevity is a hallmark of the company’s workforce.Many of its employees have been working together creatingaward-winning games longer than many manufacturers havebeen in business. The BSR team is committed to leadingedge technology, meticulous craftsmanship, boundless cre-ativity and the highest quality standards in the industry — aformula that has kept Bob’s Space Racers at the top of itsgame. ■



FFor many years, people supporting the creation of more

trails throughout Volusia County have shared vision, ideas andplans that led to the establishment of the first comprehensiveand ambitious Trails Plan, approved by the Volusia CountyCouncil in 1999. Today, many of the trails in that plan havebeen created and more are on the way.

“Volusia County is a very special part of a very specialstate,” said Volusia County Council Vice-chair Pat Northey,long a proponent of the trails initiative. “Our county offersspectacular natural beauty, some of which is readily accessibleto people and some of which can only be experienced throughtrail access. Trails actually can protect the surrounding areas,while at the same time attracting more people. This is becausetrail access confines people’s movement through sensitiveareas.”

And Volusia’s trails program is resonating in Washington.Just days before the release of a 50-state report outlining thecountry’s most promising wast to reconnect Americans to thenatural world, U.S. Secretary of the Interior Ken Salazar hashighlighted two projects in Florida that will be included in thefinal report.

The 32-mile Shingle Creek Trail in Seminole and Osceolacounties and the 50-mile East Central Regional Rail-Trail fromLake Monroe on the St. John’s River in Volusia County toTitusville on the Indian River Lagoon are among 100 projectsnationwide that will be highlighted in the report — two inevery state — as part of President Obama’s America’s GreatOutdoors initiative to establish a 21st century conservationand recreation agenda and reconnect Americans to the naturalworld

Two countywide summits on the Trails Plan have beenconducted to help keep the program up to date by adding anddeleting segments. The summits have been well attended,with spirited participation. The result is a new plan thatincludes a network of interconnected trails that is accessible tonearly all residents and visitors to Volusia County. The newTrails Plan includes multi-use trails, enhanced bicycle andpedestrian trails, hiking trails, equestrian trails and paddlingtrails (trail maps can be viewed at: volusia.org/trails).

The first trail to be developed by Volusia County

Government was the Spring to Spring Trail in western VolusiaCounty. This multi-use trail is being constructed as a paved,12-foot-wide, separate path within public rights-of-way. Nearly15 miles have been completed and opened with enthusiasticpublic support. Trailheads have been built at DeBary HallHistoric Site, Gemini Springs Park, Lake Monroe Park, LakeBeresford Park, Blue Spring State Park and along GrandAvenue in Glenwood. When complete, the Spring-to-SpringTrail will stretch 26 miles from Gemini Springs Park toDeLeon Springs State Park.

Other trails include:The Bike the Beach Trail takes bicyclists along the magnif-

icent shoreline of Volusia County beaches from Brevard toFlagler counties, with breathtaking views of the AtlanticOcean along the way.

The East Central Regional Rail Trail corridor, whichstretches more than 50 miles, is being developed and managedby Volusia and Brevard counties. When complete, the EastCentral Regional Rail Trail will traverse more than 50 milesfrom Enterprise to Edgewater and on to Titusville in BrevardCounty. This abandoned rail corridor was purchased by thestate and leased to Volusia and Brevard counties to be devel-oped as a multi-use trail for walkers, joggers, inline skaters,bicyclists and people with disabilities. This purchase is thelongest rail-to-trail conversion in Florida and will generate sig-nificant recreational and economic benefits to Central Florida.

Scenic Spruce Creek Park in Port Orange is within the2,477-acre Doris Leeper Spruce Creek Preserve. Its 536-footboardwalk begins miles of nature trails leading to the 15-footobservation tower and continues to Rose Bay. The tower over-looks the marsh area near Spruce Creek.

Hickory Bluff Preserve in Osteen is 150 acres and over-looks the St. Johns River. There are two trails covering abouttwo miles. It contains many natural communities includingscrubby flatwoods, oak hammock, cypress domes, floodplainswamp, and wet prairie. Wildlife along the trail may includeosprey, eagle, great blue heron, barred owl, gopher tortoise,alligator, river otter, bobcat, deer and turkey.

Also in Osteen is Wiregrass Prairie Preserve. It consists ofapproximately 1,400 acres and is situated almost entirely in the

St. Johns River Valley. The preserve and its trails are a mosaicof upland and wetland natural areas, cypress domes, strandswamp and wet prairie. Hikers may identify distinct naturalcommunities by the presence of certain plants. Wet flatwoodsare characterized by an overstory of slash and longleaf pinescattered across the landscape. Cypress domes may be recog-nized from a distance by the dome-like appearance of theirtree line, and can be observed on multiple trails within thepreserve.

Lake George Forest and Wildlife Management Area nearPierson consists of 7,800 acres acquired in 1990. This conser-vation area is part of a 35,380-acre wildlife management areathat provides more than 20 miles of contiguous habitat formany species of Florida’s wildlife along Lake George and theSt. Johns River. Marked trails lead to several of Florida’s naturalcommunities including pine flatwoods, cypress swamps, andmarsh. The trail passes Lake George, the second largest lake inFlorida and the largest lake along the St. Johns River.

Longleaf Pine Preserve east of DeLand consists of approx-imately 12,000 acres and has two marked trails. The red trail isa six-mile loop. The blue trail is nearly 11 miles and traversesthrough wet flatwoods with an overstory of pine and anunderstory of saw palmetto, gallberry and seasonal wildflow-ers. It winds through a cypress strand swamp. These trails aremarked for biking, hiking and horseback riding. Wildlife alongthe trail may include sandhill crane, great blue heron, riverotter, bobcat, coyote, fox, deer, black bear and alligator.

Lyonia Preserve in Deltona is a 360-acre joint project ofVolusia County Government and the Volusia County SchoolBoard. Since 1994, restoration efforts have removed overgrownsand pines and opened the understory, creating the character-istic bare sand areas with low growing vegetation preferred byscrub species. Many families of the threatened Florida scrubjay live on the preserve. Three trails cross through Floridascrub — one of the most endangered ecosystems in theUnited States. Scrub habitat exists on porous, infertile sandwhich extended out of the sea as island dunes approximatelytwo million years ago when Florida’s peninsula was covered byocean. ■

Trails reveal heart of Volusia County;provide recreation, economic opportunity

The trails traverse through some of the county’s most scenic publicly-owned lands


Scene &noted…

ONLINE VERSION AT FLORIDABUSINESS.ORG

News and notes from recent editions ofOn the Economic Scene, the Mondaymorning newsletter of Volusia County

Economic Development

On the Economic Scene is Volusia County Economic Development’s popular newsletter that is faxed every Monday and then posted on-line. The one-page communication features time-ly briefs on economic development-related subjects. The newsletter reaches more than 2,000 people every week. If you would like to receive it, contact Volusia County Economic Developmentat 386-248-8048. Here are a few briefs that appeared in recent editions. If you have news you would like to share, please send it to Dave Byron, Volusia County Community ServicesDepartment director, 123 W. Indiana Ave., DeLand, FL 32720-4612, or by e-mail at: [email protected].

PROGRESS ENERGY’S SUNSENSE A WAY TO SAVEMONEY — Progress Energy has a way to save on electricalexpense. To make the application process easier, ProgressEnergy’s SunSense Solar Water Heating Program applica-tions are now available online. For information, [email protected] or call 888-282-9757.The website is tinyurl.com/4yr2wds.

BUSINESS REFERENCE LIBRARY ONLINE — VolusiaCounty Public Libraries provides a wealth of free informa-tion for business owners through volusialibrary.org. Alibrary card, available at any Volusia Count library, isrequired to access the information, which includes demo-graphic data, details on more than 12 million U.S busi-nesses, general reference and “how to” information.

DBIA BUSINESS CENTER OPENS — The new BusinessCenter at Daytona Beach International Airport is now openon the concourse of the main terminal. Sponsored byVolusia County Economic Development, the center pro-vides a private place for up to 12 individuals to work whilewaiting for a flight. The center is wi-fi capable and offersindividual computer stations. A printer is available at nocharge, and a public use computer will be added soon. Inaddition, private conference facilities are available. Formore information call Volusia County EconomicDevelopment at 386-248-8048.

FPL OFFERING LOWER RATES TO SPUR GROWTH — Thestate’s Public Service Commission (PSC) has approvedmodifications to Florida Power & Light Company’s electric

service rate options, enabling the utility to provide anincentive for businesses to start up, expand or relocate inVolusia County. The new economic development rates offerdiscounted electric service for new or expanding business-es that add a minimum level of new electric load and newjobs. Businesses interested in applying for the ratesshould email [email protected] for more informa-tion.

FREE TUTORING AVAILABLE FROM KHAN ACADEMY —The Khan Academy can help you learn whatever you want,whenever you want, at your own pace by offering an onlinelibrary of more than 2,400 videos and practice sessionson such topics as arithmetic, physics, finance and history.For more information go to: khanacademy.org.

An official publication of the Volusia County Economic Development Division — Fourth quarter 2011 ��

TThird quarter new building permit activity across Volusia

County continued at a slow pace with the number the resi-dential and commercial permits and values close to recordlows, but that may turn around by catching September’snational wave of increased apartment and condominium con-struction.

“Just look at the economy; it’s discouraging,” said SandyBishop, executive officer for the Volusia Building IndustryAssociation, in reference to the local third quarter permitnumbers.

According to data collected by Volusia County EconomicDevelopment from the county and city building permit offices,the county and Volusia’s municipalities in the third quarterissued 117 residential permits valued at $30 million. During thesame July-September period, there were 22 commercial per-mits issued valued at $13 million.

“The numbers are not unexpected,” said Phil Ehlinger,Volusia County economic development director. “Things areabout where I thought they would be. The building markethere has struggled since the first quarter of 2009.”

RESIDENTIALThe 117 residential building permit total in the third quar-

ter is down 17.6 percent from the 142 permits issued in the sec-ond quarter of 2011. It’s also down 34.3 percent from the 214residential permits issued during last year’s third quarter,which partially was inflated by homebuyers who took advan-tage of signing building contracts for the federal first timehomebuyer tax credit before the program expired in July 2010.

Residential building numbers slowly increased throughthe quarter from 35 in July, to 39 in August, and then 43 inSeptember.

“There is still an unknown shadow inventory of possible

foreclosures out there that is causing some hesitation,”Ehlinger said. “Buyers do not want to see what they buy fall invalue. Many builders have been smart and reduced the size ofthe homes and lowered the prices to compete.”

Daytona Beach set the residential building permit pacefor the third quarter with 22 permits issued worth about $5.8million. Port Orange issued 20 permits worth $4.9 million.DeLand and Volusia County each issued 19 permits, valued at$5.6 million and $5.1 million respectively.

Seven cities, including New Smyrna Beach, issued no res-idential building permits in the third quarter.

The 117 residential permits issued in the third quarter isthe second lowest total since the housing boom that crashedin late 2007. Only the 104 permits issued in the first quarter ofthis year was lower. The $30 million value ties for the secondlowest recent value with the first quarter of this year. It’s only

surpassed by the $29 million value of the 120 permits issued inthe fourth quarter of 2010.

At the current home construction pace, less than 500new homes will be built this year in Volusia County. Thatcompares to 734 last year, 694 in 2009, 1,157 in 2008 and 1,938in 2007.

Volusia County is not different than elsewhere. Acrossthe nation, building permits declined 5 percent in Septemberto an annual rate of 594,000. Single-family permits fell .2 per-cent, according to the U.S. Commerce Department.

Area home builders are having to compete with a largeinventory of foreclosed homes and short sales that are beingsold at discounted prices, Bishop said.

“A lot of builders have gotten into the remodel businessbecause many of the foreclosures have maintenance issues,”Bishop said.

Construction activity sluggish at best,not recovering as officials had hoped

A Paytas Home under construction at Promenade Park at Venetian Bay in New Smyrna Beach.

Construction crews build a new 17,000-square-foot Davita Orange City Dialysis center on South Volusia Avenue less than amile from Florida Hospital Fish Memorial.

Another reason for the slow place of local home building is the slow pace of home saleselsewhere in the country, especially the north, Bishop said.

“If people can’t sell their homes up north, they’re not retiring here and building newhomes like they used to,” Bishop said. “Retirees are a big percentage of our residents and theydon’t feel comfortable buying right now. They no longer are buying or building a second homein the area and then waiting a couple years to sell the one up north to move here full time. Thathas passed.”

What may provide a boost are recently approved moratoriums on residential constructionimpact fees by Volusia County and DeLand that will lower home costs, Bishop said. The build-ing industry association is working with other cities in the county to get them to drop impactfees until the economy recovers.

The U.S. Commerce Department recently reported a 15 percent hike in housing starts inSeptember around the country to a 658,000 annual pace, the highest since April 2010. Anincreased demand for rental properties drove the increase. Starts of multi-family buildings offive or more units increased 53 percent while single-family starts rose a modest 1.7 percent.

COMMERCIALThe commercial building permit picture in Volusia County is a mixed bag.The 22 commercial permits issued in the third quarter is up 44.6 percent from the 15

issued last quarter, and up more than 57 percent from the 14 issued in the third quarter of 2010.

The value of $13 million in the third quarter is up 30 percent from the $10 million value in thethird quarter last year, but is down more then 47 percent from the $23 million value of permitsin the previous quarter.

“There was no one or two projects that stand out this quarter,” Ehlinger said. “There weremany in the $1.2 and $1.3 million range. Unlike the first quarter that was out of whack where wehad one very large project.”

In the first quarter, permits for the Andros Isle apartment complex were issued in DaytonaBeach, accounting for a heavy majority of the quarter’s 30 permits valued at $57 million.

Deltona led the third quarter commercial permit board with four permits, but with a totalvalue of less than $1.2 million. Daytona Beach, DeLand and Port Orange each issued three com-mercial building permits in the third quarter with values of $2.6 million, 1.4 million and $1 mil-lion.

Orange City was tops in total value with two permits valued close to $2.7 million, includ-ing a 17,000-square-foot medical building.

Commercial permit activity started at a good pace with 11 in July, but then shrank throughthe quarter with eight in August and then three in September. Eight jurisdictions reported nocommercial building permit activity in the third quarter.

“We’re bumping along the bottom,” said Ehlinger. “I’m still optimistic about a recovery, butmore guarded now. The impact will be much further along than I thought. The recovery will belike a gravy boat, with a long shallow recovery.” ■



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