Subject:
Title
Approval of Extension Agreement for Development of Property in County-Owned Commerce Park in Titusville.
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Fiscal Impact:
The initial fee is $10,000 for a one-year extension, which is refundable if the development project proceeds. For a second year, an additional $10,000 fee is required Thus representing a total of $20,000 paid - none of which is refundable if the deal does not proceed. The Extension Fee would be deposited into a NBEDZ account for use on park-related expenditures only, as per Ordinance No. 2013-08
Dept/Office
North Brevard Economic Development
Requested Action:
Recommendation
The North Brevard Economic Development Zone (NBEDZ) formally requests that the Board of County Commissioners (BOCC) approve an Extension Agreement permitting additional time for the development of approximately four (4) acres of land in the county-owned Spaceport Commerce Park in Titusville by Trout-Hunt Properties, LLC, for the construction of a new manufacturing facility for the company known as Paragon Plastics, and authorize the BOCC chair to execute all documents in connection thereof.
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Summary Explanation and Background:
Trout-Hunt Properties, LLC, purchased industrial property in the Spaceport Commerce Park in 2015 for the development of a new 60,000 sq. ft. facility for Paragon Plastics, a company that manufactures plastic thermo-formed parts for the marine, automotive, industrial, and aerospace sectors. That company currently employs more than fifty people at the site in Titusville.
In 2018, the BOCC approved the sale of an additional four (4) acres to the company’s property holding company, Trout-Hunt Properties, LLC, at the sales price of $30,000 per acre, for a building expansion project intended to add another 20,000 sq. ft. of manufacturing and distribution space to Paragon Plastics’ Titusville operations. However, due to the impacts of COVID-19 and delays encountered in the design and permitting process, the company has not started site development. In the deed transferring ownership of the lot from the county to Paragon’s property holding company was a provision requiring the commencement of construction within twenty-four (24) months of title transfer. Since the company has not been able to meet that timetable, the deed provision enables the county to re-purchase the property for the same price (consideration) that the company paid for the land.
The NBEDZ, acting as the county’s authorized agent for developing and/or inducing the development of lots within that county-owned business park, formally received and reviewed the property holding company’s request for an extension of two (2) additional years to develop the lot, subject to the provisions contained within an Extension Agreement, including payment of an Extension Fee. The NBEDZ approved the Extension Agreement at its May 14, 2021, board of directors’ meeting. Per Ordinance No. 2013-08, the NBEDZ requests that the Board of County Commissioners also approve the Extension Agreement as presented, and permit the property holding company sufficient time to develop the lot for the use intended.
Clerk to the Board Instructions:
Provide signed copy of adopted resolution and extension agreement to CAO and NBEDZ.