The Laker/Lutz News

Pasco County Office of Economic Growth

Dade City approves budget, with some qualms

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Dade City Commissioners adopted the city’s tentative budget for next fiscal year, but not without some disagreement.

A first reading ordinance of the $19,296,935 budget passed by a 4-1 vote, with Commissioner Nicole Deese Newlon casting the lone dissenting vote during a Sept. 10 meeting.

The 2019-2020 budget is based on an approved 7.14 millage rate.

Newlon took umbrage with multiple funding issues, including the city using $150,000 in reserves to float its operating budget.

The Dade City Commission approved a first reading of its tentative budget for the 2019-2020 fiscal year. The $19,296,935 budget is based on a 7.14 millage rate. (Kevin Weiss)

“Effectively, to me, it’s like taking money out of my savings account to float my monthly expenses at my house,” she said, “so that to me means we are overextended.”

Newlon added it’s even more concerning with the city having “very large expenses” upcoming through its five-year Capital Improvements Program plan and proposed projects like a downtown splash park/bike hub, Morningside Drive extension and so on.

“We’re spending too much. That’s my opinion,” she said.

Newlon also took issue with certain aspects of funding for the city’s community and economic development department.

She disagreed with a $106,000 total salary benefits package for an economic development/CRA (Community Redevelopment Agency) director position and creating a second city planner position.

Newlon argued the economic development/CRA director position “is effectively $7,000 to $9,000 more than the last person that was doing that job was making.”

Dade City Senior Planner Melanie Romagnoli is expected to take over the expanded CRA role, which has been vacant since Mike Sherman left the city in July. Romagnoli previously spent nearly a decade as a program administrator for the Pasco County Office of Economic Growth.

Said Newlon: “I don’t think that person should make more for doing what I think is less work because they now have another person working under them, and the other position that was under them is being transitioned into a much bigger position.”

Newlon also questioned $60,000 for advertising, special projects promotional activities, and $75,000 to rehabilitate the old police department building on Pasco Avenue.

Other commissioners, however, stressed the need for boosting the city’s economic development efforts for next fiscal year by any necessary means — and capitalizing on surrounding residential and commercial growth.

Commissioner Scott Black put it like this: “The economy as it is now, while it is booming, we need to have our staff in place so that we can allow some development to happen. If they’re being hamstrung because there’s not enough hours in the day and not enough hands available, then we’re not going to be well served.”

Black also said of the budget: “It’s not an enviable position to be in, but we have to be positioning ourselves to do these things.”

Commissioner Jim Shive agreed: “In order to move this city forward, we’ve got to grow and get some things on the table.”

Mayor Camille Hernandez added she’s “expecting big things” from an enlarged economic development/CRA team.

Said Hernandez: “We see the houses starting to build, we see businesses start to come and we’re not going to be able to continue that unless we have the expertise and the knowledge of that kind of input into our city.”

One reason for the city’s tight budget constraints this year: commissioners in July voted to set the tentative millage rate at 7.14 rather than a rolled rollback rate of 7.3297 recommended by city staffers.

Commissioners opted not to go with the higher property tax rate, asserting residents have already seen increases in water and sewer rates, and a stormwater fee assessment.

At 7.14 mills, ad valorem tax revenues in the city’s general fund decrease by $40,850 for the 2019-2020 fiscal year, according to Dade City Manager Leslie Porter. The rollback rate would have resulted in a $50,000 swing and thus increased ad valorem revenues in the general fund by about $10,000.

The mayor noted it’s been one of the more challenging budget years she can remember.

“It has been extremely tough,” Hernandez said. “I think in all the years I’ve been here this is probably one of the hardest that I have ever seen and trying to respect our community and keep the millage the same.”

Published September 18, 2019

Dade City considering retail consultant

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The City of Dade City is considering the feasibility of hiring a retail consulting firm — as part of an effort to lure more commercial business and economic development within city limits.

City commissioners discussed the issue at length during a May 7 workshop, where they heard proposals from three professional firms for the creation of a retail market analysis and development plan.

The City of Dade City is considering hiring a retail consulting firm to drive more business to the municipality. City commissioners discussed the issue at length during a May 14 meeting. (Kevin Weiss)

Based on a request for proposal, the purpose of the project, in essence, is to better understand the retail landscape in the Dade City market, then have a firm develop a retail recruiting plan and broker potential prospects for the market.

The three firms interviewed were: Place Dynamics LLC, The Retail Coach, and Retail Management Associates.

The project, if followed through, would specifically address ways to improve and spur development along the U.S. 301 corridor, State Road 52, and the downtown area.

Cost estimates from the firms ranged from roughly about $60,000 to $90,000 for full implementation of the required scope of work; the city has not yet selected a firm.

The topic was broached again during a May 14 regular meeting, with some disagreement on how the city should proceed.

Commissioner Jim Shive suggested scheduling another workshop to have a more in-depth discussion on the matter, before deciding whether or not to select a retail consultant.

The commissioner said he heard from several constituents expressing concern on the amount of money that would be spent on a firm.

“I’m not opposed to moving forward,” he said, “but I think we need to have more discussion, that we just don’t need to jump in it headfirst, but that we’re looking at all angles.”

“It’s a lot of money, and I kind of want to know where it’s coming from,” he said.

Shive also pointed out another economic study has already been completed on the city by Melanie Romagnoli, of the Pasco County Office of Economic Growth, thereby perhaps reducing “a lot of the legwork” proposed by interviewed firms.

Shive, moreover, said the municipality might not have the necessary resident population to attract commercial businesses that a retail consulting firm would be tasked to target and recruit.

Proposing an alternate option to a retail consultant, Shive suggested the city look into bringing on staff, an economic development director or a CRA (Community Redevelopment Area) director, as well as generally investing more into the city’s downtown area.

Commissioner Scott Black, however, countered the city does indeed have the geographical portfolio to justify bringing aboard a retail consultant, which he said is imperative to better market the area and recruit businesses of all types.

Black acknowledged the city may not have the demographics that would attract big-box stores and major food chains, but certain other types of retail businesses instead.

“There’s a lot of retail that we have the numbers (of residents) for, we just don’t have anyone out there recruiting and bringing it,” Black said. “This retail recruitment element is what we need, and that’s what the beauty of what these types of firms do is — they welcome and determine what would succeed here and they bring it in.”

Black then stressed the need for such a firm, as a means to help the municipality grow, expand its tax base and bring better jobs to the area.

“It’s going to more than pay for itself after a few years,” Black said. “There are many opportunities that we have here for Dade City, but we don’t have this type of organization where (city staff) can go out and target businesses.”

“Now is the time to do it, not to put this off any longer,” he added.

Meanwhile, during the meeting’s public comment period, Dade City-based realtor and investor Larry Guilford said retail consultants oftentimes don’t provide much value to a city its size, or even up to cities with as many as 40,000 residents.

“It all comes to rooftops; we don’t have the rooftops,” Guilford said. “I’d love to put a Chick-Fil-A here, but if I don’t have certain rooftops out here, it’s a no-go; you have that in many cases.”

Guilford said a retail consultant may be worthwhile for Dade City to consider a few years from now, but not at this time.

“I don’t think you’ll get the bang for the buck,” Guilford noted.

Mayor Camille Hernandez said the city plans to continue the conversation at either another workshop or city commission meeting, to follow up with the retail firms and review reports from the Pasco County Office of Economic Growth.

“I think we’re doing our due diligence to make sure that we have all of the pieces together,” Hernandez said.

Published May 22, 2019

Incentives add jobs, boost economy

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When Pasco County spends money from its Jobs and Economic Opportunity Trust Fund, it’s getting a healthy return on investment, according to David Engel, manager of the Pasco County Office of Economic Growth.

Engel recently gave the Pasco County Commission an update on the county’s primary incentive programs.

Between 2015 and 2025, the county expects to collect $60 million for its Jobs and Economic Opportunity Trust Fund, through its Penny for Pasco tax revenues. Those projections are based on a 3.5 percent annual increase, Engel said.

So far, the county has spent $22 million of those funds — on a variety of programs aimed at boosting job opportunities and increasing the county’s economy.

Programs include job skills programs and incentives for targeted industries that are investing in Pasco County and expanding the number of jobs in Pasco.

Industries that have received incentives include Touchpoint, Welbilt, Mettler Toledo and others, Engel said.

Job skills programs include AmSkills, the Pasco-Hernando Work Force Board and various programs through Pasco EDC, Engel said.

“For every (incentive) dollar that the board awards, we’ve gotten $10 back in gains to the county,” Engel said.

With the jobs creation incentive, which has been around since 2011, the Pasco County Commission, awards incentives to industries that create high-paying jobs. High-paying jobs are defined as jobs paying at least 115 percent of the median pay in Pasco County,

“This is one of our most highly successful programs. We’ve created almost 1,300 jobs since 2011. For every job we create, it costs the county around $3,800. We’ve look at other JCI programs across the state,” Engel said.

By comparison, the incentives cost $5,000 to $9,000 a job in other counties they looked at, Engel said.

Pasco’s return on investment in this program “is extremely high,” Engel said, noting for every dollar the county has spent, it has received $30 in benefit.

He also noted that the future is looking bright, too.

“Our pipeline is robust and growing,” Engel said.

The master-planned unit developments approved by the board, particularly along the State Road 54 corridor, are beginning to focus on their employment centers, the economic growth manager said.

“So, we have a number of big projects coming in, consisting of hundreds of thousands of square feet of Class A office buildings. Right now, we have three to four Class A office buildings we are processing for incentive awards now. We’ll make recommendations to the board of County Commissioners in the next several months,” he said.

Projected revenue: $59.65 million in the Jobs and Economic Opportunities Trust Fund, over the life of the Penny for Pasco (2015 to 2025), assuming a 3.5 percent annual increase.
Expenditures to date: $21.8 million, includes operating expenses
Encumbrances to date: $34.7 million: Board-approved awards, excludes operating expenses

Published April 24, 2019

Search reopens for city manager

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The search for a new city manager in Dade City will continue — after city commissioners were unable to come to an agreement with its top candidate for the position.

Contract talks broke down the past several weeks between the commission and Christopher Edwards, a real estate associate in Tallahassee and former deputy director of the Tallahassee-Leon County Office of Economy Vitality.

The Dade City Commission has reopened its search for a new city manager, after contract talks broke down between its top interviewed candidate. Applications for the position will be accepted through March 15. (Kevin Weiss)

Edwards declined the city’s base salary final offer of $85,000 on Feb. 8. In his final counter-offer, Edwards had sought a base salary of $94,500.

Both parties remained at odds over other stipulations, including severance pay, terms of resignation and accrued vacation leave, protocols for accrued leave, and pay increases related to the completion of a master’s degree.

With that, the commission voted on Feb. 12 to advertise for the position again.

The application requests Florida local government experience among its requirements, and notes that a master’s degree is preferred.

Applications will be accepted through March 15 at 5 p.m.

Commissioners began the search process for a new city manager in late November, to replace outgoing Dade City Manager Billy Poe, who served in that role for nearly 11 years.

Poe accepted a position with the City of Zephyrhills to become its deputy city manager, at an annual salary of $105,000. He will transition to the city’s top leadership position once Zephyrhills City Manager Steve Spina retires sometime this summer.

Poe’s contract with Dade City expired on Feb. 7. He exited the city making $99,500 per year.

Dade City finance director Leslie Porter has since been appointed to serve as Dade City manager, until a new hire is made.

The decision to reopen the job search for city manager was preceded by some debate.

Commissioner Jim Shive made a motion to enter negotiations with the commission’s second-ranked candidate, Melanie Romagnoli, a program administrator for the Pasco County Office of Economic Growth.

The motion died for lack of a second.

Shive cited Romagnoli’s experience in local government, planning, construction and economic development, as reasons she is qualified to take over the Dade City manager position.

According to the Pasco County government website, Romagnoli is responsible for the implementation of Pasco’s Economic Development Plan and the administration of the Jobs and Economic Opportunities Trust Fund (Penny for Pasco).

Additionally, Romagnoli spent more than 20 years working in planning, community development, real estate, and economic development organizations in the public, private and nonprofit sectors, prior to her role with the county.

Shive said the commission would “be foolish” to not consider Romagnoli for a subsequent interview to then enter contract negotiations.

“I would challenge anybody to pick up her resume and say that she’s not qualified to do the work of city manager,” Shive said.

He added, “Let me tell you, this city has been stagnant with growth all around us. We need somebody that can take us to the next level. I believe she is that person. …I think she is well-rounded. I don’t think that we can afford to pass the opportunity up, without taking a look, in fairness.”

Dade City Mayor Camille Hernandez concurred proceeding with Romagnoli “would be in the city’s best interest,” provided a contract agreement could be reached.

Said Hernandez, “I think she’s got a wealth of information, wealth of contacts, and I do believe that she can now bring us to the next level, but if she’s not interested, then I would reopen it.”

Other commissioners, however, disagreed.

Commissioner Scott Black acknowledged Romagnoli “does a great job with what she does.” He also said he has “a lot of respect for her.”

However, he said: “I’m looking for somebody that has the breadth of knowledge and the breadth of experience to be able to come in and hit the ground running, and that’s my concern here…”

Black noted that whoever the city hires shouldn’t be on a learning curve in the position. Instead, he suggested they should already have experience with issues such as storm water and wastewater treatment, developing a comprehensive plan and so on.

Said Black, “I feel like, it looks like if we’re going to be paying close to the salary that we were paying our previous city manager, I would want someone that has a firm knowledge of all of the things that come with being a city manager.”

Black also expressed concern the original pool drew only 12 applicants and only two had prior city management experience.

He blamed the time frame for the opening job posting —  Dec. 3 through Dec. 21— for the perceived lack of qualified candidates in the first round.

Commissioner Nicole Deese Newlon echoed similar concerns.

She noted that neither Edwards nor Romagnoli were ranked among her top three choices for the position after the commission interviewed seven candidates back on Jan. 18.

“I would like more applicants,” Newlon said. “…I mean, I just want someone to wow me, to come in ready to work, have the ability and strengths that we need, and, I just don’t feel that way about the (current) candidates.”

Following the commission’s decision, the mayor described the search for a new city manager “a bit exhausting,” but added, “it is no need for panic mode.”

“I think we are in good hands between the commission and staff here, and I think we will move forward…and do the very best that we can,” Hernandez said.

Published February 20, 2019

State grant supports Pasco business park

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Pasco County has announced the receipt of a $3 million state grant to support the development of the Overpass Business Park.

The business park is intended to promote economic development in Pasco County.

The county received a grant for $3,088,580 from the Florida Job Growth Grant Fund, according to a news release from the county.

The grant will support the creation of the Overpass Business Park project.

At its completion, the project will be home to 2.2 million square feet of industrial and office development, and will support between 4,000 and 5,000 jobs, the news release says.

“Overpass Business Park represents another realization of Pasco County’s ongoing commitment to strategic, robust economic growth, and we sincerely thank the State for its partnership in moving this critical initiative forward,” Pasco County Economic Growth Manager David Engel said, in the release.

The 100-acre, shovel-ready economic development site overlooks Interstate 75 and is 1.5 miles north of State Road 54. It is just south of the proposed new connection at Overpass Road and I-75.

The project design is in its final stages.

By 2022-2023, the site improvements will be completed and Overpass Business Park will be ready for development, the release says.

The Florida Job Growth Grant Fund was established in 2017 by Gov. Rick Scott and the Florida Legislature. It provides $85 million for improving public infrastructure and enhancing workforce training in Florida, the release says.

For more information about the Pasco County Office of Economic Growth, visit bit.ly/PascoEconomicGrowth.

To stay abreast of the Overpass Business Park Project progress, visit bit.ly/OverpassBusinessPark.

Published January 30, 2019