CHARLOTTE COUNTY, FL – ARE WE STILL THE BEST PLACE TO LIVE?

Andy Rooney of 60 Minutes fame had a sarcastic wit I loved. It wasn’t his sarcasm that captivated me as much as his introspective questioning of viewpoints we take as gospel. However, it wasn’t until CNN Money’s most recent article on “Best Places to Live” that I thought of Mr. Rooney’s profound insight that got me to thinking, “If Punta Gorda/ Port Charlotte Florida were voted before as one of the best places to live, how come we didn’t even make the list of top 100 this year?” Florida always seemed to have a couple of areas in the top 10 but this year Weston, FL came in at #63 and Coral Springs came in at #94. More interestingly was that no city in Florida cracked the top 50. “Did Florida somehow not qualify this year; last I heard it was still part of the continental U.S.?” Jobs, healthcare, low crime, education and quality of life were the criteria used in this year’s search, but in the Rooney style, I would have to say, “I didn’t realize jobs and quality of life were the major draws to such states as Minnesota and Michigan whose small cities garnered several of the top spots!” As a Realtor, I have been hearing for the better part of the past five years just the opposite that it was because of the tough job and housing market that many in these two states were leaving to seek a more attractive climate and “quality of lifestyle” that Florida had to offer. It is hard to imagine the entire state of Florida had its 15 minutes of fame and now slips back to anonymity, or is the author of the CNN poll bias towards the northern states and trying to level the playing field? I have always said, “If you move to Florida for employment, you may be best served going into business for yourself, unless you are being relocated with a large firm.” As for quality of life, somehow trudging through howling winds and freezing temperatures doesn’t appeal to me as much as year round sun filled skies, sandy beaches and a 10 minute relaxing drive to work…..I think Mr. Rooney would agree!

MURDOCK VILLAGE - WILL IT EVER GET OFF THE GROUND?

Recently I have written about a proposed business incubator being targeted for the former Impac University and business performance consulting company site in the downtown historic district of Punta Gorda. After much public backlash, the Charlotte County Commissioners voted to delay any vote to go ahead with the $2.5 million purchase of this property as it was seen by many as too risky a gamble with the tight budget constraints the county is facing. So what does this have to do with Murdock Village you ask? Well for 10 years the taxpayers of Charlotte County Florida have had to bear the brunt of the interest fees on this more than $100 million purchase that many feel should never have happened in the first place and the thought of adding another $2-3 million purchase to the tax rolls with no definite users in sight for this property has outraged many in the private sector. With over 870 acres of undeveloped land that was “acquired through a controversial mix of financial bonding and eminent domain,” Murdock Village still lays dormant and many question if this projected mixed use “entertainment” focal point will ever get off the ground. Planned as a tourist destination accommodating three distinctly different venues from a water theme park, a music and entertainment district and a state of the art baseball youth experience, this was to be the key development in the economic revitalization of Port Charlotte and the surrounding area. Main Street, was the music and entertainment venue with robust plans to construct 400,000 square feet of theater space, 240,000 square feet of commercial retail space, and 500 multi-family units around two guitar shaped lakes and amphitheaters, similar to the entertainment district in Branson, Missouri. Main Street which was the brainchild of Jay Goldberg, worked for over two years receiving the Charlotte County Commissioners approval for his conceptual plan however, on September 11, 2012 it was reported in the Charlotte Sun that Mr. Goldberg was unable to raise the $220 million in the 18 month timeframe needed to fund his ambitious project and Main Street was “scrapped.” While this was a major blow to the excitement generated by all three venues, the “cornerstone” of the Murdock Village site is a $130 million waterpark and resort to be built by Water Park Venture Management Services which have developed other resorts in Wisconsin and Tennessee. This project creatively spearheaded by Southwest Developers partners Bruce Laishley and Rick Treworgy agreed to swap 137 acres in Murdock Village owned by the county for 33 acres of shovel ready property owned by their company at Enterprise Charlotte Airport Park near the Punta Gorda Airport. Now their project along with the possibility of luring in the Ripkin Baseball Experience venue could be the best hope Charlotte County has to develop the former General Development subdivision that cost the taxpayers $1.9 million last year alone or more than $5,000 a day in interest. According to County Commissioners Stephen R. Deutsch and Robert Skidmore, aside from the infrastructure and natural gas issues, it all comes down to funding. “Financing is the biggest hurdle,” as many investors and large lenders are backing away from projects on this scale with the state of the economy. One can only hope the determination of those promoting these projects can find the resources that would give the economic boost the county so desperately needs.

Economic Development, One Step Forward, Two Steps Back!

Recently I wrote an article about the Charlotte County’s attempt to purchase the former Impac University building that has lay dormant the past several years after the passing of founder Jim Irwin, and turn it into a business incubator. Proponents see it as a great opportunity to develop businesses that not only would provide jobs within the Port Charlotte and Punta Gorda, but would birth a diversity of new businesses that ultimately would enable the county to weather economic storms with greater stability. With the prolonged downturn in the economy, Charlotte County showed its vulnerability being heavily driven by the real estate and construction industries however, the visionaries behind the Impac purchase see this as an opportunity to create an environment that can develop a variety of new businesses and perhaps fill many of the commercial vacancies that exist throughout the county. Personally I see this as a tremendous opportunity to get the community to think outside the box and look at the potential of businesses that have never been afforded a foothold, as the general public seems more interested in creating more retail and food service businesses. As a former Vice President of Main Street, Punta Gorda who chaired the Economic Development committee, I have always supported the idea of business incubators and even explored the possibility of tax incentives given to those who were willing to allow temporary structures be built on their vacant land throughout the city to give new business, from technology to tele-medicine, a high level of visibility or exposure. Those opposed see just one more example of the county overspending valuable tax dollars on another “great idea” that will never materialize. They see the $2.5 million the county is offering for the Impac building, (along with another projected $500,000 for repair and retrofitting), as just another example of a series of failed investments authorized by the Charlotte County Commissioners to stimulate economic development in Charlotte County. One such opponent went on to list the Murdock Village purchase of $118 million that consisted of 870 acres and costs the taxpayers thousands of dollars of interest per day, and still lays dormant while developers come and go after they can’t generate the support and financial momentum to turn their plans to reality. Another $27 million was spent for the Ryal’s property which was to be turned into a massive development, but with much of this 1,000 acre property being on “sensitive wetlands” future development plans are now on hold. Eight million more was spent on Thornton Key and then several hundred thousand more were spent trying to lure an Australian yacht builder to the area to set up their manufacturing facilities. While the proponents see the purchase of Impac as a prime location that can attract those who want to develop a business in a “real life” setting, or those who find a “virtual” setting to be more beneficial, the naysayers don’t want to see the county earmark almost $3 million for another “great idea.” They would rather see the outstanding balance on Murdock Village paid down. The question becomes, can the county afford to pay down past expenditures for failed development ventures and essentially take themselves out of the running for potential opportunities for economic development, or do we “roll the dice” once more and enroll the wisdom of business visionaries and entrepreneurs who are well versed in creating business opportunities that can result in a better balance of diverse businesses? It seems the tax revenue generated could potentially be used to pay down the current debt while helping defray some of the taxes we as individuals now face. In today’s economy $3 million is not a number to toss around with reckless abandon, but the potential benefits I still feel far outweigh the risks. The common trait each of the aforementioned “great ideas” shared was that they did little to create more businesses. Like so many ideas we keep hearing the same mantra, “let’s create more developments, or more tourism venues.” Why not go out on a limb and try to develop a diversity of more businesses, and in time not only will we have created a more economically stable environment, but the vacancies of existing commercial buildings will also be reduced adding to the vibrancy of the county in which we live. Let us not fall victim to the failed attempts of the past to dictate our economic future, putting us in a “one step forward, two steps back” mindset that forces us to accept our present circumstances as the norm we have to live with.

DOUBLE DIP RECESSION OR LAND OF OPPORTUNITY

Robert Kiyosaki, author of the book “Rich Dad, Poor Dad,” for years has a shared a basic principal to financial wealth that says, “When everyone is buying, that is the time to sell, and when they are selling, that is the time to buy.” When you consider the roller coaster ride the stock market has undergone due to the unemployment rates in the United States and the financial instability in Greece, Spain, Italy and some of the other European nations, there is a renewed urge for many to look once again into the housing market as prices and interest rates have not been this low in many years. European investors and domestic end users alike are looking at the opportunities and lifestyle that Florida affords, and are once again within financial reach. We are seeing the evidence of this upturn, as buyers are now coming back into the market. Interestingly enough, despite the low interest rates, many buyers are paying cash as the volatility of the stock market has paved the way for a more sensible and affordable approach to home ownership, whether it be a primary residence, vacation home or weekend getaway. Rather than lose money in the stock market, real estate now appears to be a more stable investment. Waterfront boating communities have once again become affordable, particularly in areas such as Cape Coral, Fort Myers, Punta Gorda, Port Charlotte and the gulf Islands. In the past three months alone, over 120 homes listed for over $1,000,000 have either sold or are under contract in Sarasota County alone from the Siesta Key beach area through St Armand’s Circle and Longboat Key, a strong signal that despite warnings of a double dip recession there are many consumers who feel the time to buy has never been better. While August, September and early October usually signal the most quiet time in the real estate market, many Realtors are finding the traditional “slow down” during these months has not been quite as severe this year, it is literally becoming more of a “year round” business. Bargain hunters will always search the internet for a deal, but the most encouraging news has been that there have been many more homes that have sold over $500,000 this year than over the past few years. Another sign of a more robust rebound is the number of new home starts. Waterfront vacant land lots in areas such as Cape Coral, Punta Gorda and Port Charlotte, Florida are now more affordable which makes the total expenditure for new home construction more cost effective. Lot prices have dropped “30-60 percent,” stated Punta Gorda Building Official Randy Cole. Mr. Cole went on to say that while there could be a cost differential of $100,000 between buying an older existing home and building new, the person building a new home would avoid higher costs associated with renovation, maintenance, insurance and cooling. New building codes, put into effect in 2002, make homes built today stronger and more energy efficient. Cole continued to say that in 2010 and 2011 the city (Punta Gorda) “saw 38 single-family homes get built. So far this year, 43 have been permitted with the 2012 total to top 50.” City inspectors have “logged 160 inspections” during one week alone this summer up from 90 per week last summer according to Cole. Homes that sold during the peak of the market for $800,000 can now be built new for $450,000-500,000, and construction firms such as Keith Towles of the Towles Corp., Tom Fero of Fero Construction and Arthur Rutenberg homes are all seeing significant upticks in new home construction. Frank Letterie , owner of Rock Hard Homes also points out that waterfront lots are priced well below those from Naples to Sarasota. Despite economic reports that suggest the recession may not be over, if existing home sales and new housing starts are any indication, I believe we may be well on our way to recovery!

BUSINESS INCUBATOR FOR PUNTA GORDA AND PORT CHARLOTTE OR MORE CONDOS?

There have been two jobs I have held in my life where I had a direct pipeline of information about the local happening in my community and the people who lived there. The first was when I was a lifeguard, but usually that information dealt more with personal relationships and the hot spots to go to. So while I was up to date on the local happenings, I don’t know making sound business decisions based on this information was the prudent thing to do. However, for the past nine years as a Realtor, I have had the opportunity to be more acutely aware of the existing economic fabric of the Punta Gorda and Port Charlotte areas and the potential that exists. Perhaps most frustrating is to see the opposing opinions of those who view these areas as retirement havens. Many don’t want things to change at all. Their opinion is that they came here to retire and don’t want to be paying for public schools, improved infrastructure or anything for that matter that will increase their taxes. The thought of investing in their community for future growth is a sensitive subject and the idea of creating business incubators to stimulate the growth and development of new businesses is almost as foreign to them as it is to develop a colony on Mars. “I want a restaurant with cheap meals” or “how about a bakery or gift shop?” Now there’s a novel idea!!! My favorite is, “Let’s build more condos.” Just what we need in an area that already has an over-supply! To them it is another property on the tax rolls; to me it is just adding to the problem we already have……an oversupply of single family homes, condos and restaurants, and not enough businesses that will add to the tax base while helping keep the children graduating from our high schools and colleges coming back home for solid job opportunities. Each time I hear “I want a restaurant, or retail shop,” I think “There we go again, taking the same pie and making each slice a little bit thinner.” If we are not creating an interest for those to bring their businesses to the area, or create new business opportunities, then we will only be adding to what we already have and relying on the same economic base to support them. Presently the Charlotte County Commission in conjunction with the Enterprise Charlotte Economic Council is considering using $3 Million of taxpayer monies to purchase a state-of-the- art vacant building in downtown Punta Gorda which was formally the home of IMPAC University and an international business performance and consulting company once owned by Jim Irwin. Proponents say this would be an ideal location for the creation of business and technology based companies and also serve as an “entrepreneurial hub for innovative and healthy living.” Those opposed say, “it is an irresponsible use of public funds,” with two county commissioners saying it would be better used for condominiums or as a resort,” something I would strongly oppose. This 55,000 square foot facility situated on a 4.4 acre site overlooks Charlotte Harbor and is within walking distance of historic downtown Punta Gorda. It would also be an economic boost to the shops of Fisherman’s Village as a new base of customers and employees coming to this area would see this as a new destination to frequent. Yes it would take additional funding to renovate some areas of the building and remodel or retrofit others as there is a 250 seat auditorium along with a basketball and racquetball courts on the premises, but I think of the former school building in New York City, that Bill Zanker, (founder of The Learning Annex), used to create a very unique private adult education program which today is worth over $100 Million, employing over 120 people. Unlike the traditional adult education classes one may find at Edison State College or some of the other smaller satellite universities, I personally found The Learning Annex to provide a blueprint for success for those in the midst of career changes or for those looking to test drive a new business. Featured guest speakers such as Donald Trump, Anthony Robbins, Rudy Guiliani, Alan Greenspan, George Forman, Richard Branson, Suze Orman and Russell Simmons were just some who conducted classes in the small but intimate classroom settings. I have personally seen the excitement and turnout when Donald Trump’s son Don spoke at the Van Wezel Performing Arts Hall in Sarasota, and can’t help but think of the economic boost to the area should the former IMPAC building become the business and entrepreneurial incubator I know it can become. For me this is a no brainer. Let’s sell off the over-supply of condos we currently have and start investing in our future, and for those who fear the change in their “retirement community,” they may just find their taxes stabilize, their local services improve and the values of their property increase as a result of the diverse new businesses now supporting the area.