Thursday, March 12, 2009

Calandar of Events

March 13, 2009
The Little Theatre presents ... "Red, Hot & Cole" by Cole PorterRead More »
March 14, 2009
East Coast Cruiser Night Every 2nd Saturday of each month!Read More »
The Little Theatre presents ... "Red, Hot & Cole" by Cole PorterRead More »
March 15, 2009
The Little Theatre presents ... "Red, Hot & Cole" by Cole PorterRead More »
FREE Sunday Concert Series - Frank Vardaros Orchestra The Flagler Tavern and Marc Monteson Promotions present the Sunday Concert SeriesRead More »

Monday, March 02, 2009

Local Market Conditions - New Smyrna Beach/SE Volusia Area

New Smyrna Beach/SE Volusia/Jan 2009 Report - Don Woods, 2009 Director Emeritus, of the New Smyrna Beach Board of Realtors® reports that in the New Smyrna Beach/SE Volusia Area a total of 31 homes sold in Jan 2009 compared to 32 homes a year ago for a 3.1 percent decrease. The existing home median sales price was $124,000; a year ago it was $206,500 for a 40 percent decrease. It should be noted that the average home prices are down 52.2 percent from $322,912 last year to $154,310 for this period. DOM increased 19.1 percent from 162 to 193 days.

A total of 11 existing condos sold last month compared to 5 a year ago for a 120 percent increase. The existing condo median sales price was $200,000; a year ago it was $335,000 for a 13.9 percent decrease. It should be noted that the average condo prices are down 13.9 percent from $215,980 last year to $185,909 for this period. DOM decreased 36.2 percent from 348 days to 222. (Based on information from the New Smyrna Beach MLS for the periods shown and is though to be reliable but is not guaranteed accurate by the MLS).

Local Market Conditions - Daytona Area

ORLANDO, Fla., Feb. 25, 2009 – The Florida Association of Realtors® reports that among the state’s large to medium-size markets, the Daytona Beach metropolitan statistical areas (MSA) reported a total of 419 homes sold in January compared to 321 homes a year ago for a 31 percent increase. The existing home median sales price was $131,800; a year ago, it was $179,100 for a 26 percent decrease. In the year-to-year comparison for the existing condo market, a total of 77 units sold in the MSA last month, up 43 percent compared to 54 condos sold the previous January. The market’s existing condo median price was $167,800; a year ago, it was $230,000 for a 27 percent decrease.

Wednesday, February 13, 2008

SE Volusia Housing Market for the year 2007

For the year, January 1, 2007 through December 31, 2007 - Don Woods, 2007 President of the New Smyrna Beach Board of Realtors®, reports that the New Smyrna Beach/SE Volusia Area reported a total of 552 homes sold in 2007 compared to 668 homes for the same period a year ago for a 17.4 percent decrease. The existing home median sales price was $199,000; a year ago it was $215,250 for a 7.5 percent decrease. Average Days on Market increased from 140 to 176 in 2007.

A total of 173 existing condos sold in 2007 compared to 186 condos the previous year for a 7 percent decrease. The market’s existing condo median price was $339,000; a year ago it was $356,000 for a decrease of 4.8 percent. The average price change was also down 4.3 percent. Average Days on Market increased from 166 to 286 in 2007.

(Based on information from the New Smyrna Beach MLS for the periods shown and is deemed reliable but is not guaranteed accurate by the MLS).

New Smyrna Beach/SE Volusia/January 2008 Report

Don Woods, Past President/Director 2008, of the New Smyrna Beach Board of Realtors® reports that in the New Smyrna Beach/SE Volusia Area a total of 32 homes sold in January 2008 compared to 35 homes a year ago for a 8.6 percent decrease. The existing home median sales price was $206,500; a year ago it was $199,900 for a 3.3 percent increase. It should be noted that the average home prices are down 3.7 percent from $333,447 last year to $321,116 for this period.

A total of 6 existing condos sold last month for a median price of $237,000; comparison statistics for a year are meaningless because of a large number of high-end pre-construction sales closed out after 1005 Days on Market.

(Based on information from the New Smyrna Beach MLS for the periods shown and is deemed reliable but is not guaranteed accurate by the MLS).

New Smyrna Bch/Edgewater/Oak Hill Housing Market Year Thru Jan 2008

Current Active listing - homes & condos 1671
Homes listed 1102
Median list price - Days on Market $253,500 - 173 DOM
Average list price $392,902
Condos listed 569
Median list price - Days on Market $398,000 - 210 DOM
Average list price $479,867
Homes & Condos
New listing 2008 253
Price changes 2008 406
Pending Contracts (Solds) - Current 96
Homes - Closed Listing 2008 312
Ave list price of Solds $367,135
Ave Sale price $320,506
Median Sale price $205,000
List-to-Sale 87.3%
Ave Days on Market 172
Condos - Closed Listing 2008 6
Ave list price of Solds $258,567
Ave Sale price $224,567
Median Sale price $237,000
List-to-Sale 86.9%
Ave Days on Market 309

Based on information from the New Smyrna Beach MLS for the period 1/1/08 through 1/31/08. This data is not limited to this firm’s listings and/or sales, and is deemed reliable but is not guaranteed accurate by the MLS.

Monday, April 02, 2007

Florida’s existing home sales slow, median price edges down in Feb. 2007

March 23, 2007 – Florida's housing sector continued to show a more sustainable pace of sales in February, while still-low mortgage rates sparked buyer interest, according to the Florida Association of Realtors (FAR). Statewide, sales of single-family existing homes totaled 10,779 last month compared to 14,080 homes sold in February 2006 for a 23 percent decrease.

Real estate industry experts across the state think the outlook for Florida’s single-family residential housing market has brightened, according to a quarterly survey conducted by the University of Florida. The survey shows that a growing number of those polled find home prices are staying even with inflation.

“If you’re thinking of buying a house, there’s probably not much to be gained by holding out at this point,” says Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. “It doesn’t look like prices are going to fall anymore. We see that as a benchmark. When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium. It indicates the market is stabilizing.”

Florida’s median sales price for existing single-family homes in February was $235,500; a year ago, it was $242,500 for a 3 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In February 2002, the statewide median sales price for single-family homes was $131,800, for an increase of about 78.7 percent over the five-year-period, according to FAR records.

According to Don Woods, President of the New Smyrna Beach Board of Realtors®, SE Volusia median sales price for existing single-family homes in February was $187,500; a year ago, it was $221,250 for a 15.3 percent decrease. Sales volume was down 23.2 percent, falling from 56 sales in February 2006 to 43 in 2007. The SE Volusia median sales price for existing single-family homes in March was $195,000 a year ago, it was $196,000 for a 0.5 percent decrease. Sales volume was down 12.5 percent, falling from 56 sales in March 2006 to 49 in 2007.

In January 2007, the national median sales price for existing single-family homes was $209,200, down 3.5 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $559,640 in January; in Massachusetts, it was $340,000; in Maryland, it was $303,842; and in New York, it was $300,000.

Existing home sales likely will gradually rise this year and into 2008, according to NAR’s latest housing outlook. “Underlying trends point to a housing recovery in 2007, but it will take a couple months for us to get a better handle on it,” says NAR Chief Economist David Lereah. “Existing-home sales are expected to slowly improve from what appears to be the cyclical low last fall.”

Sales of existing condominiums in Florida also decreased last month, with a total of 3,172 condos sold statewide compared to 4,397 in February 2006 for a 28 percent decline, according to FAR. The statewide median sales price for condos last month remained flat at $212,200; a year ago, it was $213,000. NAR reported the national median existing condo price was $222,200 in January 2007.

Don Woods, President of the New Smyrna Beach Board of Realtors®, reports sales of existing condominiums in New Smyrna Beach also decreased in Ferbuary with a median sales price of $340,000; a year ago, it was $358,119, for a 5 percent decrease. Sales volume was down 7.1 percent, falling from 14 sales in February 2006 to 13 in 2007. Sales of existing condominiums in New Smyrna Beach also decreased last month with a median sales price in March of $317,500; a year ago, it was $520,000, for a 38.9 percent decrease. Sales volume was down 46.2 percent, falling from 26 sales in February 2006 to 14 in 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.29 percent, up slightly from the average rate of 6.25 percent in February 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

People who were simply looking (at homes) before are now starting to make offers; why wouldn’t you buy now? Mortgage rates are still incredibly low and buyers are able to consider a range of inventory.

The pace of home sales is starting to pick up as buyers show renewed interest in the housing market. Southeast Volusia offers great values for housing opportunities, especially for coastal properties, and, with mortgage rates continuing to be so favorable, right now is a great time to buy.

Wednesday, June 07, 2006

Volusia tax values climb 24 percent to $37 billion

By JAMES MILLER
Staff Writer/Daytona News Journal
June 01, 2006

Volusia County property values rolled toward another record increase last year, setting the stage for significant tax increases even if governments roll back rates, Property Appraiser Morgan Gilreath said Wednesday.

Taxable values rocketed to $37 billion, a 24.5 percent increase, according to "pre-preliminary numbers" property appraisers must release by June 1 to assist local governments with budgeting. Values jumped by 20 percent from 2004 to 2005.

Public perception of a real-estate market slowdown might have led some to expect a less dramatic hike, but this year's values are based on last year's market, Gilreath said. "I don't ever remember seeing anything like this," he said.

The percentages are likely to change when the appraiser's office releases official preliminary figures July 1, but the changes should be slight, Gilreath said. As it stands, tax hikes could be significant for people who don't benefit from "Save Our Homes," the amendment to the state constitution that limits increases in taxable value on homesteaded properties to no more than 3 percent annually, Gilreath said. "For the people who are not homeowners or who own properties without (the benefit), pay very close attention to the rolled-back rate and budgeting this year," Gilreath said.

The rolled-back rate is the rate needed to produce the same revenue as last year by taxing properties that were on the tax rolls then.

Based on the early numbers, Edgewater saw the biggest boost, adding $279.7 million, a 34.6 percent hike. Southeast Volusia neighbors Oak Hill and New Smyrna Beach came in just behind with 34.3 and 32.8 percent increases respectively.

Edgewater Interim City Manager Jon Williams, who had not heard the news yet, said he was surprised by the increase. "I would think that (34.6 percent) tax increase bids very well for the city, and certainly the city will continue to evaluate some sort of rollback, not full rollback, but potential adjustment to the property tax rate," Williams said. "That's always been our goal."
If the Edgewater City Council decides not to change the property tax rate, the excess money could be dedicated to fund some of the city's larger projects, such as purchasing land for a new city hall site, Williams said.

In West Volusia, Deltona experienced the biggest gain, adding $695 million to its tax base - a 28.2 percent increase. "I think that means Deltona continues to be a very appealing place to live. It's going to be our job in the future to make sure that continues," Deltona Mayor Dennis Mulder said. "With those extra tax dollars, we'll be able to accomplish a whole lot more in regards to infrastructure and beautifications."

The numbers could trigger some rethinking of the upcoming budget by county officials, who were estimating a 12 percent increase in the tax base for their general fund. A 24.5 percent increase could generate an additional $18 million, according to a memo issued late Wednesday by the county manager's office. But officials said they weren't sure whether that would mean a tax rate reduction or doing something like putting more money in emergency reserves.

"It's not spending what we would get, but having funds for what we need," said Councilman Dwight Lewis. "But if we have more than we need we can reduce the millage."

TAX INCREASES
Volusia County's overall taxable property values increased a record 24.5 percent since last year, according to projections released Wednesday by the Property Appraiser's Office. Each city also saw increases.
City % increase
Daytona Beach 26.0
Daytona Beach Shores 29.2
DeBary 13.5
DeLand 28.0
Deltona 28.2
Edgewater 34.6
Holly Hill 18.8
Lake Helen 21.7
New Smyrna Beach 32.8
Oak Hill 34.3
Orange City 12.1
Ormond Beach 17.3
Pierson 11.3
Ponce Inlet 24.8
Port Orange 21.4
South Daytona 23.9

SOURCE: Volusia County Property Appraiser

SO - WHAT ARE "PRE-PRELIMINARY" NUMBERS?
State law requires county tax appraisers to provide certified preliminary tax rolls by July 1. These figures are used by local governments to develop their annual budgets. To help them get started, the law also requires tax appraisers to release estimates -- the "pre-preliminary" figures - by June 1.

Planning board slated to tackle parking terms

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
May 31, 2006


NEW SMYRNA BEACH - Plans for a new commercial building on Third Avenue and changes to parking requirements in the Canal Street downtown area will be up for a planning board decision Monday. Stuart Mitchell of Maitland wants site plan approval for Coronado Beach Place, a 5,520-square-foot two-story retail/office building on half an acre on the northeast corner of Horton Street and Third Avenue. There will be space for six tenants with about 18 parking spots required on business-zoned site.

In another case, local architect J. Pendergast is asking for the Canal Street special parking district to be applied on a case-by-case basis to other areas being redeveloped in the surrounding mixed-use neighborhood. In the special district, the number of parking spaces required is cut in half. Currently, Canal Street's special are suggesting two more rules - enough on-street or public parking nearby and on-street parking is sufficiently marked.

In other business, attorney George Beazley, representing three property owners, is asking for 1.8 acres - made up of three parcels - on the North Causeway to be rezoned multi-family from single-family residental. City planners said no redevelopment plans or a timeline for new construction have been provided yet, but the new zoning would allow up to 32 units on the property. Planning staff is recommending the rezoning approval because it would provide a transition between Diamond Head Condominium to the east and Venetian and Waterway condos to the west.

The three parcels of land are located on the north side of The East Circle between the North Causeway and Canal Bradano, and are owned by Causeway Development, LLC, Robert W. Wiley and Betty Jane Dessin Lloyd. Currently, one lot is vacant, while the others have single-family homes with docks.

Sugar Mill Gardens, a 105-lot single-family subdivision, wants planning board approval of two items - a one-year extension of its preliminary plat and final plat approval. The 48-acre property, owned by Progressive Builders, LLC, is on the northwest corner of Sugar Mill Drive and Pioneer Trail. Carl Hammond, of KB Homes Gold Coast LLC, is asking for the preliminary plat extension. City planners said 90 percent of the required site improvements, including streets, sidewalks and utilities, are done. Dale Williams, representing Progressive Builders, wants final plat approval of the subdivision, which includes four commercial lots for future development. City planners recommend approval, provided sidewalk and tree installation is guaranteed and variances are obtained for four undersized lots.

The planning board also will consider:
· A request to annex and rezone less than an acre on the north side of West Canal Street, east of Wallace Road. Eric Peronnard and Carol Nordstrom want to build a 6,500-square-foot commercial building for a bicycle and motorcycle sales business, according to city planners.
· A request by Bouchelle Development LLC to change its approved site plan to add nine new units to its original agreement to build three four-story 16-unit multi-family residential buildings. A planning report said the new total number of residences would be 642 units on 55.8 acres.

The planning board meets at 7 p.m. Monday on the third floor of the Utilities Commission, 200 Canal St.

Future of residential development in council's hands

By KELLY CUCULIANSKY
Staff Writer/Daytona News Journal
May 31, 2006

Planning board won't back height, lot width restrictions

EDGEWATER - Planning and Zoning Board members have decided against recommending that the City Council limit residential height or lot width.

Earlier this year, the council had proposed limiting residential building height to 50 feet and requiring a minimum lot size width of 75 feet. These proposals would restrict developers even in planned unit development agreements, traditionally known for flexibility to help provide a variety of housing types and costs through innovative site and building design.

But several Planning and Zoning Board members are concerned the restrictions could drive up housing costs. Some also have pointed out that the City Council already can negotiate those items under current regulations.

"We've got a lot of flexibility to get what we want the way it is," said board member John Weiss.
The board's consensus to not limit residential height or lot width will be part of a recommendation it is scheduled to make before the City Council has its first public hearing and vote on the proposed changes to the land development code June 19.

Other code revisions proposed by the City Council include changing land density from gross to net calculations to reflect the amount of land suitable for building and requiring planned unit development contracts to be at least 15 acres with residential and commercial land uses.
While most board members agreed that limiting height or lot width in the land development code is too restrictive, there were a few in the audience at a meeting last week who said city officials need to limit development.

"During my gathering of petitions, 99 percent of the people want either no growth or very limited growth," said Carol Stoughton, who is circulating a 35-foot height limit petition with a political action committee known as the Edgewater Citizens Alliance for Responsible Development.

Representatives from the Edgewater Land Code Committee, a group formed to address the proposed changes, also spoke at the meeting. The group, which includes members of the Volusia County Association for Responsible Development, is concerned that the proposed 75-foot lot width minimum would eliminate the construction of townhouses. And townhouses are one of the primary ways developers address affordable and workforce housing, said committee member Greg Blose II, who also is the director of government affairs for the Volusia Home Builders Association.

On behalf of the home builders association, a nonprofit professional trade organization, Blose asked the board not to limit what potential residents could afford in the future. "It's definitely pricing people out of the market," he said.

Resident and Edgewater Citizens Alliance for Responsible Development chairwoman Dot Carlson said existing 50-foot-wide lots in some subdivisions still aren't affordable enough. "If they can't afford a house in Edgewater, well then just boogie on down the road because we don't care," she said.

Opposition building to Lowe's plan

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
May 26, 2006

Residents rail against proposed location

NEW SMYRNA BEACH - City Commissioners got an earful from residents Tuesday night over plans for a new Lowe's at the southeast corner of State Road 44 and South Myrtle Avenue.

"It is not compatible to a residential and school area," said Rosi Karnes, who lives across the street from the site and has been a vocal opponent of the plans for the past year. "Why can't they go out by I-95?" She and several other residents said they aren't against the store coming to town - they just don't want it at that location. They said it would cause traffic and safety problems with three nearby schools and ruin the surrounding residential neighborhood.

Mark Rakowski, the city's director of development services, said Lowe's officials still have not made formal application to the city. The home improvement store just submitted a concept plan and traffic study. The plan involves building a 169,000-square-foot store, plus a new access road east of South Myrtle Avenue, on part of an industrially-zoned 40-acre site owned by Florida East Coast Railway.

"I know the city manager said they're coming but until they show up, we don't know if they're coming or not," said Mayor Jim Vandergrifft. But Vice Mayor Lynne Plaskett said city officials shouldn't continue to meet with Lowe's and FEC representatives if they really are against the store locating there. "Everybody knows this is not the right place for it," she said.

Commissioner Jim Hathaway said he thought the city was working on a compatibility rule that would deal with the issue of new development being appropriate to existing neighborhoods.
"I think that certainly needs to be on the front burner," he said.

City Attorney Frank Gummey said unless the rule contains objective standards, it won't be legally sustainable. Commissioner Randy Richenberg said then the city needs to develop those proper standards.

Delores Malone, who lives in the 200 block of South Myrtle Avenue, said if the city's comprehensive plan can't stop poor planning like this, then what good is it. "The corner of Myrtle and (S.R.) 44 is one of the busiest in town," she said. "I'm a retired teacher. I don't want to be picking up some dead kid down there." In the event the store does come in, Malone said the city would need to make several changes. She suggested installing school crossing guards at S.R. 44, lowering the speed limit to 25 mph on Myrtle Avenue, enforcing a "no truck" zone and adding streetscape features on Myrtle Avenue to slow traffic.

Don Kenat, another neighborhood resident, said while other Lowe's are built on a main road, this one is proposing all access off South Myrtle Avenue. "Please do what you can to keep Lowe's out and help us keep our neighborhood," Myrtle Avenue resident Tammy Collins told the commission.

In other business Tuesday, the commission:
· Approved a $237,640 bid, plus a 10 percent contingency, by Thad Construction Inc. for a flood mitigation project at Greenbriar Apartments. The city is getting state and federal funding for the work and the apartment's owner, Norman Rosen of Miami, is agreeing to pay any additional costs. Greenbriar offers federally subsidized rent to elderly and disabled residents and is managed by the New Smyrna Beach Housing Authority.
· Approved a request by Ocean Beach Club Condominium, 3201 Hill Street, to build a sea wall beyond the coastal construction setback line.
· Gave the first nod to changing setbacks in the city's mixed-use downtown areas along Flagler Avenue and Canal and Washington streets and establishing the home at 701 Magnolia St. as a historic landmark.

Housing market levels off

By JOE CREWS
Business Writer/Daytona News Journal
May 26, 2006

DELAND - The number of houses sold by Realtors in the Volusia-Flagler market plummeted 37 percent in April, even as the median price for the houses stayed up.

In April, the Florida Association of Realtors reported Thursday that 846 houses were sold in the two-county market, compared to 1,334 in April 2005. But April's median sales price - meaning half sold for more and half sold for less - was $224,400, up 17 percent from $191,600 last year.

"We're leveling off to a more realistic market," said Jalene Stockhausen, president-elect of the West Volusia Association of Realtors.

"I do believe we are stabilizing," agreed Debbie Aiken, president of the Flagler County Association of Realtors. "It has been a seller's market the last couple of years, with an unusual appreciation of values. Now, we have a shortage of buyers, and more people are sitting on the fence, waiting to see what mortgage rates are going to do."

According to Freddie Mac, the national average for a 30-year, conventional, fixed-rate mortgage averaged 6.51 percent in April, up from 6.32 percent in March. The rate was 5.86 percent in April 2005.

Some Realtors say the number of houses for sale locally has increased, but the number of buyers has not kept pace. Sandy Miller, president of the New Smyrna Beach Board of Realtors, said buyers have more choices today, and houses are staying on the market longer. "Inventory is way up," Miler said. "With more houses on the market, it just takes longer to sell since there aren't as many buyers." It takes "at least four to five months, I would think," she said, for a house to sell in Southeast Volusia. Miller said she's also seeing lower sale prices. "Some prices are dropping, but they were overpriced to begin with," she said. "Now, we're getting back to a more normal market where people have more choices."

Aiken agreed it takes "a little bit longer" for houses to sell than it did a year or more ago.
"I'm cautioning sellers we're in a normal market," she said. "I tell them it might take 150 to 180 days." But Aiken also predicts the time-on-market will come back to a more typical 120 days within a few months.

In West Volusia, however, time-on-market is still in the 90-to-120 day range, said Cynthia DeLuca, last year's president of the West Volusia Association of Realtors. "That's longer than it has been in the last couple of years, but it's about the same as it was in 2001 and 2002," DeLuca said.

Stockhausen said that isn't much different than most sales in recent years. "Last year, I still would have said the market time was 90 days, even though some homes were turning in a day," she said. "I've always wanted to preach (time-on-market was) 90 days, because there's still a process that has to be followed" to complete a sale.

Some sellers are giving more concessions to close deals, DeLuca added, such as paying closing costs or reducing asking prices.

Aiken, too, is seeing "more realistic" selling prices. "I've seen some sellers put bonuses on (the sale), but I don't think that's as successful as improving the price," she said.

City, developer agree on dredging plan

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
May 25, 2006

NEW SMYRNA BEACH - City commissioners have approved a dredging agreement with Island Town Center and a site for a new skateboard park.

The agreement, approved 4-to-1 Tuesday, requires Island Town to pay if the North Causeway waterfront condo project is permitted to build boat slips and dredge around the high school to Canal Calore. The canal, which runs through the Venezia subdivision, leads to the Intracoastal Waterway. The agreement was on the April 25 and May 9 commission agendas, but no action was taken then. "We want to participate. We want to be good neighbors," said attorney Glenn Storch, representing Island Town's developers. He proposed voluntarily being assessed for 180 units, instead of the originally proposed 160 units.

According to the agreement, Island Town will pay the city a proportionate share of the cost of the canal dredging, based on the 180 units benefiting. The assessment is contingent on Island Town getting its final boat slip and dredging permits in hand, he said. "That would have us paying 81 percent of the operation," Storch said.

Earlier this year, the city agreed to cover the $282,500 cost of the project, which included dredging and stabilizing Canal Calore, with a Port Authority Grant and by assessing 41 Quay Assisi residents up to $4,400 each. This new agreement has Island Town's payments used to cover dredging costs in excess of the assessments and grant. After that, funds will be divided equally among the 41 assessed residents to reduce the amount due to the city. Assistant City Manager John Hagood said the Canal Calore dredging work has already started. No sea wall was needed, but the contractor is removing 6,500 cubic yards of material, instead of the originally estimated 3,500 cubic yards. However, he said no costs overruns are expected and the price should stick at $282,500.

The canal dredging and assessment has been controversial and resulted in a pending lawsuit by resident Thurman Bowls. In the lawsuit, Bowls and three other Quay Assisi residents claim all property owners who will benefit from the dredging, specifically Island Town, were not included in the assessment. It also claims at least two city commissioners who voted on the dredging and assessment - Mayor Jim Vandergrifft and retired commissioner Bill Rogers - had conflicts of interest. "This agreement is as transparent as it is flawed," Bowls said Tuesday.

Storch said Island Town never had any problem paying for part of the dredging, as long as it benefited from the work. The agreement states Island Town gets no benefit from dredging the mouth of Canal Calore due to its distance from the project and lack of adequate access because of shallow water. But Island Town developers are seeking permits now for 112 boat slips and want to dredge around the high school to Canal Calore, according to city officials.

After years of failed attempts to move forward, the commission also formally settled on a site for a new skateboard park. The proposed 2.5-acre site, which is owned by the city, lies at the corner of Industrial Park Avenue and Turnbull Street. A skate park committee made up of local residents approved the site, which passed initial environmental tests. Hagood said the city will continue to work with the committee on developing the park.

"With all the sites we've look at, this is the best one I've seen," said Vandergrifft.

Monday, May 01, 2006

Height limits highlight agenda

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 29, 2006

NEW SMYRNA BEACH - Height limits around the downtown Canal Street area, and new residential and commercial development will be discussed at Monday's Planning Board meeting.

The city is proposing a maximum building height of 62 feet in the mixed-use mainland area - broken down into 50 feet of living space and up to 12 feet for a sloped roof or other architectural features. The mixed-use mainland area generally runs from Washington Street south to Lytle Avenue and from the river west to Robert Road.

This area currently has a seven-story height limit, but the 62-foot proposal would reduce that to about four stories. The Utilities Commission building on Canal Street is estimated to be about 60 feet tall. City Commissioner discussed lowering the height to 50 feet at an April 17 workshop, but factored in some flexibility after hearing from local architects.

In other business, Orlando applicant Thomas Daly wants sketch plan approval for a 59-lot single-family subdivision on nearly 22 acres on the north side of Eslinger Road, immediately east of Lake Waterford Estates.

California property owner DEG Properties, LLC is asking for site plan approval for a one-story, 20,000-square-foot industrial building, with parking and infrastructure, on nearly 2 acres in the city's airport industrial park. The land is zoned industrial and located northwest of the end of Industrial Drive.

The planning board also will consider:

· A request by property owner Dale Williams to annex and rezone 5 acres on the south side of Turnbull Bay Road, east of Pioneer Trail. Plans involve incorporating the land into the proposed 198-lot Preserve at Sugar Mill single-family residential subdivision.

· A city proposal to establish policies encouraging developers to voluntarily limit density.

The Planning Board meets at 7 p.m. Monday on the third floor of the Utilities Commission, 200 Canal St.

NSB sinks teeth into workforce housing

By MARK I. JOHNSON
Staff Writer/Daytona News Journal
April 28, 2006

NEW SMYRNA BEACH - Efforts to promote more affordable housing throughout the city are on track, but there still are lots of questions.

With a unanimous vote Tuesday, the City Commission approved on first reading an ordinance establishing a "workforce housing overlay zone." The citywide district provides incentives to developers to construct single-family, two-family and multifamily developments that would be affordable for people with moderate to low incomes, such as police officers, firefighters and teachers.

The regulations would exempt such developments from some size requirements and allow more density than existing zoning classifications permit. Developers would apply to be included, similar to a rezoning, and enter into a development agreement with the city spelling out the various plans and conditions. Each project would go to the city's planning board before it would go to the city commission.

"The goal is to lower the price of homes," Development Services Director Mark Rakowski said.
While commissioners supported the idea, concerns were raised. "The intent is a wonderful idea," Vice Mayor Lynne Plaskett said. "We need affordable housing, but I would like to see a map."
She said she would object to developments being pigeon-holed into one area of the community or another.

Commissioner Jim Hathaway was skeptical such developments would fly because of neighborhood opposition. But Commissioner Randy Richnberg said the city has to start somewhere.

There was public support as well.

"Housing can be made affordable if you insist on it," resident Jim Taylor agreed. Real estate agent and property owner Bob Hill suggested increasing the density benefits would allow a developer to build more homes and spread out their costs.

While the commission said more work needs to be done, it voted 5-0 to move.
In other business, the commission:

· Deferred permission for sea wall and fence at the Las Brisas condominium until after turtle season. Las Brisas' representative Aubrey Wright said the hurricanes of 2004 and subsequent storms eroded the dune in front of the South Atlantic Avenue condominium to within 16 feet of the buildings and a sea wall is needed to protect the project. However, questions about whether the sea wall would be built on a county right-of-way or on condominium property and how it would affect bordering properties raised red flags.

· Asked that a resolution be drafted in support of exploring the idea of an inter-university marine research center being established on the current high school site, once that campus is vacated. Karen Clancy, who is pushing the project, wants to convince state officials to give her six months to find funding to offset the sale of the property by the School Board to a developer. The school district wants to use the proceeds to offset school construction expenses.

'Obscene' insurance rate increase ahead for condo owners

By JIM SAUNDERS and JIM HAUG
Staff Writers/Daytona News Journal
April 28, 2006

TALLAHASSEE - As Florida lawmakers struggle with a growing property-insurance crisis, hundreds of condominium buildings in Volusia and Flagler counties will get hit by massive rate increases.

Citizens Property Insurance Corp., a state-backed insurer that sells policies in high-risk areas, approved a proposal Thursday that would lead to average windstorm-rate increases of as much as 222 percent for condos in beachside areas of Volusia County and 190 percent in coastal Flagler County. The increases would not affect individual condo units but would jack up the amount residents have to pay to insure buildings and common areas. Volusia and Flagler condos in coastal areas would face increases far higher than the statewide average of 148 percent.

Bruce Douglas, chairman of the Citizens board of governors, tried to put the increases in the context of the huge risks Citizens faces in insuring hurricane-prone areas. "The percentage of increase in rates, obscene as they are, is nothing (compared) to the risk," Douglas said.

The decision to increase condominium rates would affect more than 1,100 policies in Volusia and Flagler counties, with the actual amount of the increases depending on the way buildings are constructed. Justin Glover, a Citizens spokesman, said state insurance regulators are expected to approve the increases because they are based on rates approved for a private insurer.

Douglas said the goal of Citizens is to have fewer policies, as the state tries to rebuild the private insurance market. But with the 2006 hurricane season starting June 1, he said it will "be a testing year for the entire industry and the state."

Approval of the increases came as the state House debated a bill aimed at fixing a property insurance system that has been clobbered by eight hurricanes during the past two years. With losses topping $30 billion, insurers have sought wide-ranging rate increases, dropped policies and, in some cases, pulled out of the state.

This week, the state said it likely will have to take over three companies that combine to sell about 280,000 property-insurance policies. State officials expect Citizens to have to pick up many of those policies - adding risk to a program that has already run up an estimated $2.2 billion in deficits during the 2004 and 2005 hurricane seasons.

The three companies, Southern Family Insurance Co., Atlantic Preferred Insurance Co., and Florida Preferred Insurance Co., are part of the Tampa-based Poe Financial Group. As of Dec. 31, the companies had only 3,075 policies in Volusia and Flagler counties, state figures show.
Lawmakers plan to pass an insurance-reform bill before the annual legislative session ends next Friday. But as they try to keep insurance companies from fleeing the state, it has become increasingly clear that rates will continue climbing for property owners.

Senate President Tom Lee, R-Brandon, said it will take "a lot of courage" for lawmakers to take steps that will bolster the insurance system. "It's a massive challenge for this Legislature, and we have to deal with it," Lee said.

Citizens, which sells policies in areas where private companies refuse to do business, is one of the most-controversial issues in the legislative debate. Citizens is required by law to charge the highest rates in the state to avoid competing with private insurers and repeatedly has sought premium increases since the 2004 hurricanes. Also, insurance policyholders throughout the state - including those who are not Citizens customers - were hit with a one-time, 6.8 percent charge to cover a $515 million Citizens' deficit from 2004. Lawmakers might spend as much as $920 million in tax dollars to help defray an estimated $1.7 billion deficit from 2005, though policyholders statewide likely will have to pay the rest.

The House bill would take steps to try to reduce Citizens' risks, including barring the program from insuring coastal homes valued at more than $1 million. But as an example of the political trickiness of the property-insurance issue, the ban on million-dollar homes has drawn opposition from some South Florida lawmakers whose districts include large numbers of expensive properties.

Canal project cost to remain property owners' duty

By MARK I. JOHNSON
Staff Writer/Daytona News Journal
April 27, 2006

NSB doesn't support Island Town Center's proposal

NEW SMYRNA BEACH - A plan calling for developers of a proposed North Causeway condominium to fund part of dredging Canal Calore ran aground Tuesday night. City commissioners failed to support an agreement that would have Island Town Center pay a part of the cost if the waterfront development receives permission to construct boat docks. Developers want to install 112 slips and link their project to the Intracoastal Waterway by way of the canal. They would have to dredge, at their own cost, existing shallow waterways into a navigable channel around the high school and into Canal Calore, north of the Venezia subdivision. Both efforts would require state approval in advance.

The condominium originally was left out of a Calore assessment. Forty-one Quay Assisi property owners are paying $4,400 toward the estimated $282,500 cost. The agreement would have required Island Town Center's share to be used to fund dredging costs over and above the original estimate. Then, any excess dollars would reduce Quay Assisi owners' assessments.
That sounded like a good deal to Bruce McCrory, who identified himself as one of the overwhelming majority of assessed residents who support the Calore project. "We would welcome any reimbursement," he said.

However, another Quay Assisi resident, Thurman Bowls, opposed the agreement, saying it gives the condominium a special benefit. "This increases the value of the condominium as soon as the dredging is completed," he said.

Bowls has filed suit against the city over the Canal Calore dredging project and its assessment. He and three other neighbors claim not everyone benefiting from the project, specifically Island Town Center, was included in the original assessment and two city commissioners, Mayor Jim Vandergrifft and Commissioner Bill Rogers, had a conflict of interest in supporting the work.
City officials have said Quay Assisi property owners asked for the dredging, and a survey showed 31 of the 41 affected residents want it and are willing to pay for it. Island Town Center was left out because of its distance from the canal, and the shallow waters in between limit boat access to their property.

Bowls was not alone in thinking the agreement offered a special benefit. Commissioner Jim Hathaway did not like that calculations of Island Town Center's share would be based on the number of boat slips rather than dwelling units proposed. He said Quay Assisi owners were assessed on their properties, not their docks and the condo should be the same.

However, City Attorney Frank Gummey said those property owners each has the potential for a dock, while condo owners do not, thus the benefit is different.

Commissioner Randy Richenberg also wanted the agreement to include a provision that Island Town Center would pay for any additional costs of maintaining Canal Calore once the dredge work is completed. He believed that burden should fall on the condo because of the extra boat traffic it might generate through the waterway.

Vice Mayor Lynne Plaskett said approving an agreement establishing a payment method, before knowing if any boat slips would be authorized by the state, was premature.

A motion by Commissioner Jack Grasty to approve the agreement failed to get a second.

Existing homes sales continue slowdown

By VALERIE WHITNEY
Business Writer/Daytona News Journal
April 26, 2006

NEW SMYRNA BEACH - David and Marian Wickersham put their four-bedroom, four-bath oceanfront home here on the market about 10 months ago. But despite a lot of showings and even a couple of offers, the house is still theirs.

Winifred Grimshaw, owner of a unit at The Ocean Condo here, can empathize with the Wickershams. Grimshaw's three-bedroom/three-bath condo has been on the market for several months now. She dropped the asking price Tuesday - for the second time - from $825,000 to $789,000. "There are so many (condos) on the market," said Grimshaw, who bought the unit in 1990 but didn't move in until after she retired in 2000.

Pop goes the housing bubble.

Sales of existing single-family homes in Volusia and Flagler counties dropped a whopping 31 percent in March, according to figures released Tuesday by the Florida Association of Realtors.
March marked the third straight month sales were down year-over-year, even as prices stay up. Realtors recorded 897 sales of existing homes last month, compared to 1,304 in 2005. Buyers, on the other hand, are still paying more for homes. The median sales price was $225,700, up from $184,300 in March 2005.

Nationally, sales of previously owned homes edged up in March, but the backlog of unsold homes still hit a record high, raising concerns that the once-booming housing market could be in for a rougher landing than expected., the National Association of Realtors reported Tuesday. The median price of a new home rose to $218,000 last month, a gain of 7.4 percent from a year ago.

Deborrah Aiken, president of the Flagler County Association of Realtors, attributed the drop to investors inflating last year's figures by snapping up properties. Now, Aiken said, buyers are a bit wary given all of the dramatic price gains in the last year and are waiting for the market to stabilize.

"The bottom line is we had an extremely hot market last year. We saw some home sales that were off the chain. People were starting to expect that to be the market," said Richard Sluzewski, president of the Daytona Beach Area Association of Realtors. Now, according to Sluzewski, the market is stabilizing and returning to normal. That means homes may not sell as fast as they did last year but those that are priced right will sale, he said. "We have the same number of buyers as last year," Sluzewski said, adding a lot of the buyers are baby boomers relocating here from other states.

Statewide sales of existing homes fell 22 percent to 18,881 last month, compared to 24,091 for the same period in 2005. The median sales price rose 17 percent to $248,2000; a year ago it was $212,600. The sales figures reflect closings that typically occur 30 to 90 days after sales contracts are written.

State officials blamed the slowdown in sales to rising mortgage rates and more inventory. The average interest rate for a 30-year, fixed rate mortgage was 6.32 percent in March, up from 5.93 percent a year ago.

David Wickersham said he has been following the slowdown in the market and oceanfront property tends to be immune in these situations. "We're not worried but we do want to sell it," he said about his house, which is listed for $1.9 million

Island Town Center developers asking for boat slips

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 23, 2006

NEW SMYRNA BEACH - Developers of a proposed North Causeway waterfront condo project may end up footing part of the bill to dredge Canal Calore, which runs through the Venezia subdivision.

City commissioners on Tuesday will consider an agreement requiring Island Town Center to pay up if the mixed-use development is permitted to build boat slips and dredge around the high school to Canal Calore. Canal Calore leads to the Intracoastal Waterway near Ponce De Leon Inlet.

According to the agreement, before any city permits being issued, Island Town will pay the city a proportionate share of the cost of the Canal Calore dredging project, based on the number of boat slips obtained. The project to dredge and stabilize the canal has been estimated to cost $282,500, with 41 assessed Quay Assisi residents paying up to $4,400 each. Payments from Island Town will first be used to cover dredging costs in excess of the assessments and a Port Authority grant, the agreement states. After that, funds will be divided equally among the 41 assessed residents to reduce the amount due to the city.

The agreement states it has been determined Island Town gets no benefit from dredging the mouth of Canal Calore due to its distance from the project and lack of adequate access because of shallow water. But Island Town developers have applied to St. Johns River Water Management District for 112 boat slips. And they have asked for permission to dredge around the high school to Canal Calore, according to city officials.

The canal dredging and assessment has been controversial and resulted in a pending lawsuit by Quay Assisi resident Thurman Bowls. In the lawsuit, Bowls and three other Quay Assisi residents state all property owners who will benefit from the dredging, specifically Island Town, were not included in the assessment. It also states at least two city commissioners - Mayor Jim Vandergrifft and retired commissioner Bill Rogers - who voted on the dredging and assessment had conflicts of interest because they had reservations on Island Town condos. Vandergrifft and Rogers both said they had reservations but later canceled them. City officials have said Quay Assisi property owners asked for the dredging, and a survey showed 31 of the 41 affected residents want it and are willing to pay for it.

In September, Edmundo Gonzales, president of Urban Properties, one of the developers of Island Town, said dredging the mouth of Canal Calore wouldn't really benefit his development because the area between is so shallow. At that time, he said the main access to the Intracoastal for Island Town boats was via the Berry Canal, just west of Island Town. However, there is a low bridge over Berry Canal, which would limit access to boats small enough to pass underneath.
The City Commission meets at 7 p.m. on the third floor of the Utilities Commission buildings, 200 Sams Ave.

Thursday, April 20, 2006

Coral Trace developer gets lot-size correction

By KELLY CUCULIANSKY
Staff Writer/Daytona News Journal
April 20, 2006

EDGEWATER - A split City Council approved rewording a development contract so an engineer's mistake would no longer hold back a developer from building an extra 22 houses at a subdivision. Coral Trace's development agreement with the city will go from 200 to 222 homes to reflect the original permitting given by the city, the Florida Department of Transportation, the U.S. Army Corps of Engineers and the St. Johns River Water Management District.

The council's approval will correct a construction plan error for lots that were incorrectly drawn at 55 feet in 2002 at the project site north of State Road 442 and west of Lybrand Avenue. Coral Trace's contract with the city, dated in 2003, was approved for 200 homes at 50-foot lots.
Rather than stall the project to correct the mistake, a clause in the plat noted two tracts of land would be reserved for future development. When the City Council approved the plat in October 2004, they approved the possibility of more single-family homes being added to the project.
Drainage concerns discussed last month were at the heart of the council's 3-2 approval vote at Monday night's meeting. Mayor Michael Thomas and Councilman Dennis Vincenzi recalled prior drainage problems that affected neighboring landowners, while Magnolia Village residents east of the development worried that more houses would direct water toward their homes.

In approving the additional houses, the council required the developer to send Magnolia Village's fee management agency documentation that the drainage system is adequate. The developer's attorney agreed, and if there were a problem, the residents would have recourse. "This is not the case of a greedy developer coming in to try to force something down somebody's throat," said Christopher Challis, Coral Trace Associates' attorney.

A consulting engineer from Quentin L. Hampton Associates already reviewed the stormwater design calculations and found the original plan included the additional 22 lots. In a letter to the city of Edgewater, a project manager said the extra lots were accounted for adequately in the approved and permitted stormwater system.

Thomas, who did not vote in favor of the additional 22 homes, asked developers to wait for a rainy season to see how the neighboring landowners would fare with the already constructed homes. "My contention is, hey let's go through a wet season . . . let's see if our ditches work," he said. "If they work properly, we'll come back and say 'Hey, everything is cool.' "

But developers did not agree to postpone construction. They specified the water management district already approved the project and the infrastructure has been approved, designed and built to support the extra 22 houses.

NSB sets 62-foot building height

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 20, 2006

NEW SMYRNA BEACH - City commissioners settled on a maximum building height around the Canal Street area at a workshop Monday but found less of a consensus on other redevelopment issues. After much discussion, commissioners proposed a maximum building height of 62 feet in the mixed-use mainland area - broken down into 50 feet of usable space and up to 12 feet for a sloped roof or other architectural features. The mixed-use mainland area runs from Washington Street south to Lytle Avenue and from U.S. 1 east to West Canal Street, according to city planners.

"That's a story they've got to work with," said Commissioner Randy Richenberg, after hearing local architects ask for some flexibility in the height restriction.

Director of Development Services Mark Rakowski said this area currently has a seven-story height limit, but the 62-foot proposal would reduce that to about four stories. The Utilities Commission building on Canal Street was estimated to be about 60 feet tall.

Commissioners also talked about a need to increase parking around the Canal Street area. Resident Eva Osbourne suggested a study of downtown parking needs, factoring in the effects of the proposed height change.

The commission also discussed changing setbacks in the city's mixed-use districts along Flagler Avenue and Canal and Washington streets, but wanted to see maps of the impacted areas first.
Proposed changes would even up front yard setbacks on the main streets and their side streets, said Rakowski. New structures also would be built according to the average front yard setback on the street, which is about zero on Canal Street and 2 feet on Flagler Avenue. The setbacks are geared to promote an urban feel, with buildings in the front and parking to the back or side, Rakowski said.

A Florida Avenue resident, living a block from Flagler Avenue, asked how his residence, which is on property zoned mixed-use, would be affected. Rakowski said most houses on his street have about a 20-foot setback, so if he rebuilt he would go with that average setback.

Concerning a proposal to expand a demolition delay area, commissioners agreed a new survey of the city's historic properties was needed, but were divided on other parts of the issue. Richenberg and Commissioner Lynne Plaskett suggested the delay area not be limited to a specific neighborhood, but rather open to any historically significant structure in the city.
"I couldn't go along with it city-wide," said Mayor Jim Vandergrifft, saying the criteria determining historic significance was too broad.

Right now, the city can delay the razing of historically significant buildings in the city's two national register districts up to four months after the owner applies. There is a proposal to expand that delay zone to mainland areas around U.S. 1 and beachside zones east of the North Causeway Bridge and Atlantic Avenue. Commissioners said any expansion of the area should involve door-to-door notification of all affected residents.

Commissioners barely touched on a proposal to implement historic architectural design guidelines in downtown areas around Flagler Avenue, Canal and West Canal streets before deciding to hold a special workshop for that issue.

Eyes ways to fund new development

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 19, 2006

NEW SMYRNA BEACH - The Utilities Commission dealt with a range of issues Monday, from reviewing options for funding future improvements to hearing from recently fired employee Craig Crawford.

Faced with about $60 million in future water, sewer and electric system needs, commissioners looked at ways to get developers to help foot the bill, particularly using community development districts. "We're experimenting with new types of funding sources, especially to deal with the new development," said Robert Rodi, Utilities Commission director.

Utilities financial adviser Craig Dunlap of Dunlap & Associates said based on net revenues of $12. 3 million, the utility can have a maximum annual debt service of $8.7 million. Commissioners could borrow a portion of the money using low-interest revolving loans from the state for water and sewer fixes.

Another funding option is to create a Community Development District, which Dunlap described as "a cost-effective way of financing infrastructure for new communities." Such districts use tax-exempt special assessment bonds to finance eligible infrastructure costs, including utility improvements. The special assessments would be levied on the tax bills of residents living in a particular new development, he said. "There's a lot of growth out west of Interstate 95 so the idea is to create a CDD for that area," said Dunlap. "CDDs are usually a better tool than homeowners' associations." He said Community Development Districts are "quite common in Florida," especially in the Tampa, Miami and southwest Florida areas.

Utilities commissioners voiced support for the idea. Rodi said the next step is to talk to local developers, get community input and discuss the idea with the City Commission.

Crawford, the Utility Commission's former information technology and communications director, also spoke to the commission about allegations made against him in an April 10 report by Brent Millikan & Co. auditors Alex Kish and Brad Douglas. In the report, Kish said their investigation uncovered a March 21, 2005 e-mail that showed Crawford was involved in "a potential conspiracy" to wrongfully alter telecom customer database files. Crawford, who was fired on April 1, has said there was no conspiracy. On Monday, he told commissioners that Kish should have noticed recently reported accounting and billing problems in earlier utility audits. He also said Utilities Finance Director Roberto Montalvo would not take responsibility for the utility's financial problems.

Montalvo said he was cut out of the loop concerning telecommunications finances from the start. He said he was given monthly information on the financial situation but "we knew from day one the information was not good." However, the accounting and finances for the telecommunications operation were all in a different database and place, he said. "(However) on electric, water and wastewater, we have a very solid accounting system," Montalvo said.

It is still uncertain if the Federal Bureau of Investigations will investigate the utility's troubled telecommunications division, said Rodi, as the Utilities Commission requested last week after receiving Millikan's report. He said Kish contacted the FBI but has not gotten any response.
In other busness, Utilities commissioners also:

· Approved a new collective bargaining agreement with its union, which involves a 3.5 percent general wage increase effective in October. The utility also agreed to reopen negotiations on the amount it will pay for employees' health care after a new insurance provider is selected.

· Approved changing the way costs for water, wastewater and reclaimed water line extensions are figured. Before, the policy required 50 percent participation by all potential customers to be served by an extension. Now, it would require 100 percent participation, so those requesting the service bear its entire cost.

Utilities Commission to discuss funding for upgrades

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 16, 2006


NEW SMYRNA BEACH - The Utilities Commission will discuss ways to fund its costly improvement project plan Monday.

The utility's financial adviser, Craig Dunlap from Dunlap & Associates, will be presenting funding source options to the commission. The utility has recently been studying its water, sewer and electric infrastructures and have determined millions of dollars is needed for upgrades.

In other business, Utilities commissioners will consider approval of a new collective bargaining agreement. A staff report said the agreement-proposing a 3.5 percent general wage increase effective Oct. 1 - was ratified by union members on April 4. The utility also is agreeing to reopen negotiations on the amount it will pay for employees' health care after a new insurance provider is selected for 2006-2007.

Also on the agenda is a $36,000 invoice from the Water Authority of Volusia to automate an existing water line connection between Port Orange and New Smyrna Beach lines. Utility staff is recommending the payment to WAV be deferred until the countywide water planning group's Master Plan is clarified.

Following a final public hearing, the commission also will consider approval of changing the way it figures costs for water, wastewater and reclaimed water line extensions. Now, the policy requires 50 percent participation by all potential customers to be served by an extension. The change would require 100 percent participation, so those requesting the service bear its entire cost.

The first public hearing to increase electric, water and wastewater rates will also be held. For electric, a typical residential monthly electric bill, using about 1,100 kilowatts, will increase to $124.07 from the existing $118.87. For water and wastewater, a typical single-family monthly bill, using 5,000 gallons, would go from the current $48.47 to $52. Another public hearing will be held before the utility board's May meeting to allow the utility to implement the new rates by June 1.

The Utilities Commission meets at 6 p.m. on the third floor of its offices, 200 Canal St.

Citizens, developers eye proposed land codes

By KELLY CUCULIANSKY
Staff Writer/Daytona News Journal
April 14, 2006

EDGEWATER - About 40 people listened to what could happen to their small, family-oriented community at the city's first public hearing regarding sweeping changes to the land development code.

Some of the proposed revisions that have alarmed residents and development groups include limiting residential lots to a minimum of 75 feet wide, limiting residential building height to 50 feet and changing land density from gross to net calculations.

Residents and developers met with Planning and Zoning Board members, who were supposed to give the City Council a recommendation on whether these revisions and others should be approved.

Instead, nearly three hours later at a Wednesday night meeting, they decided not to send council members any advice. Board member John Weiss motioned to tell the council the board needs more time to review the code through workshops with experts to break down their concerns. With the absence of one member, all agreed to the idea. "We're talking about reshaping our community and I don't feel I'm certainly qualified to make that judgment tonight, even issue by issue," board member Sandy Jones said.

Also at the root of the board's discussion was the question of how much power their recommendation would have anyway. Development Services Director Darren Lear could not answer whether the City Council could move forward with the adoption process if the board did not approve of the revisions.

Representatives from a group formed to address the proposed changes, known as the Edgewater Land Code Committee, spoke at the meeting and offered to put together a workshop with presenters not vested in Edgewater development. This would be the same workshop already offered to the City Council in March, which members declined because they believed they had too many meetings to attend.

The committee, which is made up of Volusia County Association for Responsible Development members and Volusia Home Builders Association members, includes land use attorneys, professional planners, engineers, commercial Realtors, landowners and developers.

While a workshop still has not been scheduled, the group did present a few points at the meeting that specified the path some council members want to take that would lead the city to urban sprawl and to less affordable housing.

"Increasing the minimum lot size in the city of Edgewater to 75 feet would make it very difficult for builders to build a house that would sell for less than $175,000 - a figure that most agree is affordable for the workforce in this area," said Greg Blose II, director of government affairs for the Volusia Home Builders Association. These types of restrictions, known as "regulatory barriers," increase the cost of housing by as much as 35 percent, according to a recent study by the U.S. Department of Housing and Urban Development, Blose said. "Smart development does not mean that housing has to be crammed into every nook and cranny of the city, but it does mean that communities and local governments need to be open to a variety of housing options and solutions," he said.

Other issues the committee presented involved the city's possible increase of the tax burden and property tax rate on residential properties. Large retailers are attracted to communities with a certain number of residents. If the city doesn't attract businesses that pay commercial property taxes, the burden will continue to fall on the residents, who already pay one of the highest rates in the county.

Barney Dillard, a developer in Edgewater who plans to build 10 townhouses and five cracker-style single-family homes on Jones Fish Camp Road, said he is worried about how the revisions will affect him and other developers in the future. His biggest worry was a new restriction that would limit developers from having access to a flexible development agreement unless the project is on a tract of at least 15 acres. While this won't affect Dillard because his project has been approved, he is not in favor of it. "I'm going to have the very nicest project in the city of Edgewater . . . but, with this new code, I couldn't build it," he said.

Commissioners balk at mayor's vote

By MELANIE STAWICKI AZAM
Staff Writer/Daytona News Journal
April 13, 2006

NEW SMYRNA BEACH - Upset city commissioners told Mayor Jim Vandergrifft Tuesday they want more inclusion in the decision-making process before he votes on behalf of the city on different regional boards. Specifically, the four commissioners said they should have been informed before Vandergrifft voted at an April 5 Water Authority of Volusia meeting.

Vandergrifft cast one of the 11 votes approving the authority's road map for planning future water supplies in Volusia County. The countywide water planning group's rules required 11 yes votes, a supermajority of the 14-member panel.

"I think sometimes it would be prudent to bring these issues back to the commission," Commissioner Jim Hathaway told Vandergrifft. "I'm not sure what you've locked the city of New Smyrna Beach into with your vote."

The water authority's approval doesn't mean the plan, which calls for spending about $285 million in improvements and facilities such as a plant to treat water from the St. Johns River, will just roll forward. But resident Ken Taylor, who ran for mayor against Vandergrifft in 2005, complained there was "no public discussion" of the water authority commitment.

Commissioner Randy Richenberg agreed, saying, "I'm very uncomfortable with the fact the City Commission did not have a discussion on our stake in WAV."

Vandergrifft said the water authority's road map is "a working document" and "is not set in stone.
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Still, Commissioner Lynne Plaskett was among the commissioners who said she feared being part of the water authority could cost the city down the road and increase water rates. Plus, commissioners said the Utilities Commission, the city's water supplier, should have been included in discussions. Utilities Commission officials recently have mentioned possibly seeking their own alternative water sources.

Vandergrifft said he leaves agendas for the water authority and the other regional boards on which he serves -Volusia County Metropolitan Planning Organization and the Volusia Council of Governments - at city offices. He said the water authority and local water needs have been longtime issues and aren't anything new.

Richenberg said the commission needs a written report and public discussion of the issues like other cities do. Commissioner Jack Grasty agreed. Some commissioners said they had raised concerns before about the water authority, specifically that they feared it could be another layer of bureaucracy costing taxpayers more money.

Hathaway said he's concerned New Smyrna Beach residents will have to give millions to the authority to help build a water plant in West Volusia. Plus, he said there's a push for current residents to conserve water but he sees nothing about harnessing growth, which makes no sense to him.

Vandergrifft said he would invite water authority representatives to visit the commission.

Edgewater board fears urban sprawl

By KELLY CUCULIANSKY
Staff Writer/Daytona News Journal
April 12, 2006

EDGEWATER - Controversial changes to the city's land development code that some say could promote urban sprawl will be reviewed tonight at a public hearing with Planning and Zoning Board members.

While board members do not give the final OK to institute the land development code changes, they will go over the modifications and make a recommendation to the City Council on whether to approve it or not. The board and city staff will meet at 6:30 p.m. Wednesday in the Community Center, 102 N. Riverside Drive.

Some of the proposed changes include limiting residential lots to a minimum of 75 feet wide, limiting residential building height to 50 feet, changing density calculations from gross to net and enhancing tree protection and preservation. These possible revisions were gathered from suggestions made by the City Council at a January workshop, conversations with city staff and recommendations from a tree committee formed to address tree preservation and landscaping issues.

A group formed to address these ideas, known as the Edgewater Land Code Committee, is "gravely" concerned that Edgewater officials haven't fully considered the long-range implications these changes could have on the future of the city. "If adopted as proposed, the city of Edgewater will develop as a low-density bedroom community with a weak and unsustainable economy," said committee chairwoman Shannon Ruby Julien, in a letter to city officials.

The committee, composed of the Volusia County Association for Responsible Development and the Volusia Home Builders Association, includes land-use attorneys, environmental consultants, professional planners, engineers, commercial Realtors, landowners and developers. After reviewing a land development code draft, the group found that by limiting height and density, the regulations would promote urban sprawl and direct growth to unincorporated areas where it would be more viable for developers to make a return on investments.

Larger lot sizes would leave fewer areas to provide for conservation and recreation, the report stated.

With the proposal to reduce the potential development of any property within the 100-year flood plain, the city's possible business and job growth would be reduced.

"While the council may have intended that this proposal curb residential growth, it will have the same deleterious affect on development rights in lands located within industrial, commercial, institutional and other nonresidential zoning districts," Julien stated in the letter. This then would probably increase the tax burden and the property tax rate on residential properties, because commercial property owners pay higher taxes than the cost of governmental services they require, Julien said.

Planning and Zoning Board member Pat Card said limiting lot size and height would affect housing affordability for young people. "There are times when 50-foot lots are the right thing to do," he said in an interview. He said the city must find a way to make it possible for young people who want to have a future in the community "to find a way to live here effectively and economically."

Limiting height would restrict the types of people who want to live in Edgewater, such as executives who are looking for high-end places to live. "If we do this, we're going to eliminate every possibility for generating the kind of tax base that our neighbor to the north has," he said, referring to New Smyrna Beach.

Where do taxes go?

April 09, 2006

NEW SMYRNA BEACH - Randy Burris works hard for his money. He pays his bills and cares for his family of four. But when spinal meningitis and other ailments put him in the hospital for more than 20 days since June - some in intensive care - the 40-year-old Edgewater man found himself with almost $80,000 in medical bills and no way to pay them. With no health insurance, Burris needed help. He turned to the Bert Fish Medical Center's patient assistance program, and became one of more than 700 patients each month who receive medical treatment but don't have the ability to pay for it. "I am not indigent," the shop manager for Lightning Light racing bodies said. "I work 50-60 hours per week."

Providing care for those who cannot pay for it accounts for about 73 cents of every tax dollar paid to the Southeast Volusia Hospital Taxing District, which owns Bert Fish Medical Center, according to Chief Financial Officer Tim Drury. In fiscal 2005-2006, that represented about $10 million of the $13.8 million in budgeted tax revenues. Uncompensated care is but one expenditure that comes from the $2.35 per $1,000 of taxable property value levied for the hospital district. That equals $352.50 in annual taxes for a homeowner with a $175,000 residence and homestead exemption.

The hospital tax is not the only add-on to local property tax bills. Funds for numerous services, such as libraries, sheriff's protection, and the jail, come from a county levy. Taxpayers also pay for specially earmarked taxes, such as for schools, county fire protection and the Ponce De Leon Inlet and Port Authority, on top of their municipal taxes.

The hospital tax pays for more than just uncompensated care. Revenue also goes toward developing new services, physician recruitment, land purchases and development, administrative expenses, and what the hospital pays to other taxing entities, such as New Smyrna Beach's Community Redevelopment Agency, Drury said.

Burris said he would rather not be part of Bert Fish's payment assistance program but he has no problem paying his share of the taxes. "This help means my tax money is going for something good that can be utilized by people who pay taxes," he said.

But not everyone is as enthusiastic about shelling out for hospital taxes, especially on land where no one lives.

"If no one lives on the property, how are they going to use the services?" asked Oak Hill Mayor Mike Thompson. "It sounds like a use tax with no use." Thompson said he would prefer hospital officials to work harder to collect money from those in the assistance program to offset the costs and reduce the tax burden. While the hospital did generate more operational revenue than it spent in the last fiscal year, it already pays about 60 percent of the uncompensated care bills and taxes pay about 40 percent. Like many Southeast Volusia residents, Thompson also objects to paying hospital taxes when his insurance company - Blue Cross/Blue Shield - is not accepted at Bert Fish. "That does not make sense to me," he said.

BFMC and the insurer have not had a contract in more than four years. They did not renew the last agreement because of disputes about payment schedules.

SCHOOL TAXES
If hospital taxes help offset the cost of health care for some residents, what do school taxes provide? Patricia Hinton of Port Orange said paying school taxes when you don't have children enrolled in public schools is unfair. She pulled her eldest daughter from a New Smyrna Beach elementary school when she was in the third grade and home-schooled the girl and her two sisters. While Hinton's daughters now are in their 20s and 30s, it frustrates her every time she opens her tax bill. "If you don't have kids in school, you should be able to get an exemption," she said. "Naturally, I'm not happy about it."

For those who don't like what they see on their property tax bill, try to remember that the money helps educate children of young families, said Bill Kelly, deputy superintendent for financial and business services for the school district. Today's children are tomorrow's taxpayers.

The school tax revenue offsets the cost to provide education to local students, which is estimated at about $6,000 per year per child, Kelly said. "The idea is that we don't charge a fee to young families, instead we tax ourselves," he said. "If we charge a fee to young families, how many families could pay (about) $6,000 a year?"

Schools represent the biggest chunk of a property owner's tax bill and about 62 percent of the school taxes are mandated by the Legislature.

Volusia County residents see two such levies. The first was $0.32 per $1,000 to help pay debts. Voters approved this line-item in a 1986 referendum, which ends this year, Kelly said. The other school-related item shows up as a tax rate of $7.94 per $1,000 and includes a variety of sources. A majority - $5.19 per $1,000 - is mandated by the Legislature and is the costliest part of the total school tax bill. This is the county's contribution toward the state funding formula for students and pays expenses such as electricity, textbooks and salaries, Kelly said.

An optional local effort, decided by the School Board, adds another $0.51 per $1,000 to supplement the state-mandated rate and funds similar operational expenses, Kelly said.
The next piece of the funding pie makes up an additional optional local tax of $0.23 per $1,000 of taxable value. This can't go any higher than $0.25 per $1,000 and generates money for the day-to-day operating costs of running a school and paying employees, Kelly said.

Then there's the capital outlay tax of $2 per $1,000. This money is used to pay debts, build new schools and make major repairs. So, for example, the owner of a home valued at $175,000, minus the state's $25,000 homestead exemption, would pay a school tax of $8.26 per $1,000 of taxable value, for a total annual school tax bill of $1,238.85.

Kelly said the chance of lowering the school tax bill any time soon is slim. The constant complaint that teachers aren't being paid enough falls onto the shoulders of taxpayers, along with the increasing costs for construction. "I don't believe that we're in a position where we could reduce the (capital outlay tax) at this time, because if we did, we wouldn't generate enough money to build all those schools we committed to with the half-cent sales tax," he said. Construction costs in the last year have gone up by about 30 percent and Kelly said "that's a much greater increase in costs than we ever planned on."

COUNTY TAXES
All property owners also pay county taxes, which fund a variety of accounts.
The general fund - the largest single tax approved by the county council - pays for everything from capital projects to beach safety and maintenance. In September, Volusia County set a rate of $5.894 per $1,000 - $5.30 for the general fund and $0.594 for the countywide library system.

But there are also levies for environmental lands, municipal service districts, fire districts, and others as well. When you add all those up a person living in unincoporated Southeast Volusia, who owns a $175,000 home with a homestead exemption on it, would have paid about $1,733 in county taxes this fiscal year.

Property taxes make up about 68.6 percent ($152.3 million) of the $222 million general fund. Charges for services, intergovernmental revenues, fines and license and permit fees help fund the rest. Some items, such as beaches, suck up more money than they produce. For example, it costs taxpayers $11 million annually to operate the beaches, but tolls have averaged about $3.3 million per year since 1988.

The Volusia County Library system has a $15.9 million budget, according to its 2005 annual report. The county funds the bulk, $14.4 million, of that cost, along with state money, fees and gifts. The biggest expense is roughly $8 million for personnel at 16 libraries.

Also on the tax bill is the county's mosquito control district, which costs about 23 cents per $1,000. This pays for mosquito spraying by fogging trucks and helicopters and other devices.
Looking further, the county also charges East Volusia residents a Ponce De Leon Inlet/Port Authority tax of 9 cents per $1,000.

County property owners and those in Oak Hill also pay a Fire Control District tax. This $3.24 per $1,000 levy funds the vast majority of the cost of providing fire protection for unincorporated Volusia County. Oak Hill residents pay the same tax because their community, like Lake Helen and Pierson, receives fire services from the county. "That represents about 85 to 90 percent of our ($30.9 million) budget," County Fire Chief Jim Tauber said.

The dollars are used to pay salaries and benefits ($15.09 million), operations ($7.1 million), and capital outlay and improvements (about $2.03 million). Other expenses include debt service and reserves.

"The biggest expense (after personnel) is vehicle and equipment purchases, as well as care and maintenance. Third is operation of the fire stations," Tauber said.

Alan Fraser, who has lived in Silver Sands since 1993, said his county fire services tax has doubled in the last decade or so. "For the coverage that we have down here, I think we're paying far more than is warranted," Fraser said.

Some of the dollars spent for fire services also come from the county's general fund, but Tauber said those are used primarily to finance multi-agency units, such as the hazardous materials team.

Those living in a municipal service district such as Silver Sands also pay a levy of up to $1.70 per $1,000.

Taxpayers finance two voter-approved county initiatives - Volusia County's ECHO and Volusia Forever. In November 2000, residents approved a referendum to tax themselves 20 cents per $1,000 for each of the programs. This equates to $162 million for each program over its 20-year life span. The ECHO program provides matching grants for construction, renovation or restoration of Environmental Learning, Cultural, Historical/Heritage, and Outdoor Recreation facilities.

In Southeast Volusia, the ECHO money helps fund several projects, such as the Atlantic Center for the Arts Visitors' Center, the Little Theatre of New Smyrna Beach and the New Smyrna Sugar Mill ruins historic site. It has also been used for city recreation projects, including New Smyrna Beach's Indian River Lagoon Preserve Park and Edgewater's Hawks Park.

Volusia Forever was created to acquire and improve environmentally sensitive land. So far, it has protected 44,800 acres-including land in Southeast Volusia - through either direct purchase or through buying development rights from the landowners.