Subject:
Title
Titusville Tax Increment Funds (TIF) for the Redevelopment of Former Searstown Mall Property in Titusville
End
Fiscal Impact:
Funds for this economic redevelopment grant would come from the NBEDZ special district, under the annual TIF allocation it receives from the City of Titusville.
Dept/Office:
County Manager’s Office
Requested Action:
Recommendation
It is requested that the Board of County Commissioners (BOCC) approve an economic assistance and interlocal agreement using tax increment funding from the City of Titusville (CITY), in an amount not to exceed $2,400,000, to induce the redevelopment of the former Searstown Mall property, and authorize the Board Chairman to execute all necessary documents upon approval of the County Attorney’s Office and Risk Management and authorize the County Manager to execute all necessary budget change requests.
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Summary Explanation and Background:
California-based real estate developer Jesse Wright purchased the Searstown Mall property on U.S. 1 in Titusville in 2017, with plans to remove the existing shopping center and replace it with a mixed-use development, one involving residential, office, and retail components, including a five-story hotel. The enclosed mall, which was constructed in the mid-1960s, is now in disrepair, with more than half of its retail space unoccupied.
The developer has proposed redeveloping the entire 22-acre site in two phases, with the first phase to include infrastructure improvement to the property, such as utility line replacement and the construction of storm water ponds. At the time the enclosed mall was built, there were no requirements for capturing storm water on site; pre-redevelopment, all storm water falling upon the parcel drains directly into the Indian River Lagoon. Additional plans under the first phase include the construction of two residential towers, one of which would be an assisted living facility (staffed with medical personnel), and several retail outparcels. A Cambria Hotel, part of the Choice brands hotel chain, would also be constructed at the site, featuring a full-service restaurant on the ground floor and a roof-top bar. Phase two of the project, tentatively slated for 2026-2027, would involve the construction of approximately 68,000 sq. ft. of office and retail space.
An economic impact analysis conducted by the East Central Florida Regional Planning Council found that this project had the potential to generate 365 jobs, $43.6 million in output/sales, and $27.6 million in personal income annually. It would also elevate a property currently valued at approximately $5.4 million to more than $50 million, greatly increasing the amount of ad valorem tax to be collected on the property. The NBEDZ board of directors approved a grant of $2.4 million using monies from the City’s TIF Trust Fund at its August 11, 2023 and January 10, 2025 board meetings, to induce the project forward. That grant provision was based upon the completion of specific elements of the redevelopment plan, such as infrastructure enhancements and the completion of the hotel building. The Titusville City Council subsequently approved this use of City TIF monies at its meeting on April 8, 2025. Per Ordnance No. 2011-18, any use of monies from the City’s TIF Trust Fund above $500,000 must receive concurrence from the BOCC.
For More Information: Contact Troy Post with the NBEDZ, at 321-960-1458, or troy.post@brevardfl.gov.
Clerk to the Board Instructions:
Provide signed copy of adopted Economic Incentive Agreement and Interlocal Agreement to CAO and NBEDZ.