- April 26, 2024
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Landowner submits annual report to the city.
Wayne Grant
News Editor
The city received its annual report in June on Ormond Crossings, the hoped-for future site of business and residential development that straddles Interstate 95 at the North U.S. 1 intersection.
No sales were reported by landowner Tomoka Holdings LLC, but the company is finalizing platting part of the business park and residential areas with hopes to capitalize on “pent-up demand once the market and economy recover,” according to the report.
The area, a total of 2,924 acres, was annexed into the city in 2004.
Tomoka Holdings sees the area desirable for business development because it’s adjacent to the Ormond Beach Municipal Airport and close to other transportation links, including the railroad. The plans for the business park include light industrial and commercial operations.
The city approved a development agreement with Tomoka Holdings in 2012, with the understanding that there would be annual reviews of progress toward development.
One of the more significant recent developments has been the extension of the Community Redevelopment Area that has been designated to provide funds for constructing an overpass over the railroad tracks into the business park.
There are graded crossings into the business park, but the bridge, at a cost of about $8 million, would enhance the desirability for development.
“It would provide an unimpeded flow into the development,” said city Economic Development Director Joe Mannarino. He said it would also provide access for the residential area that is planned for west of the interstate.
In a CRA, tax collected over a set base rate can be used for improvements to the area, such as the railroad track crossover. Tomoka Holdings owns properties along U.S. 1 that are in the CRA. Unfortunately, the economy is cited as the cause for the lack of money being raised. The City Commission agreed to extend the CRA in April and Volusia County approved the extension in June.
“The economy has been too slow to raise money for the bridge,” Mannarino said. “The economy just started to improve a year ago.”
Another step taken this year is that Tomoka Holdings began platting a portion of both the business park and residential area. Once the city approves the platting, the area will be ready for utilities to be extended by the city, if development were to occur.
Mannarino said there’s a lot of upfront infrastructure cost needed for development that would go into millions of dollars. Tomoka Holdings could build the infrastructure, or a developer could build it as part of a sale agreement.
“There are lots of options,” Mannarino said. “You can see development in other communities. Values are rising. There’s interest from developers.”
Tomoka Holdings, an affiliate of Allite Properties LLC, of Duluth, Minnesota, is also the developer of City Center in Palm Coast. A spokesman did not return a call for comment.
Mannarino said the city supports the project because the business would add high-wage jobs over the next 25 years to the community as it develops.
“We need it to bring in industrial tax revenue and take the burden off the homeowner,” he said.
The area is much needed for business growth, city officials say, because the business park at the airport is nearly built out, with only one remaining lot to be sold.
Ormond Crossings is seen as the future of development for Ormond Beach, and a project that will continue through decades.
“It’s a tremendous development and will have to be done in phases,” Mannarino said.
