Connect with us

Bussiness

Escambia County considers new mystery business offer for OLF 8 by FloridaWest

Published

7 months ago

on

Escambia County considers new mystery business offer for OLF 8 by FloridaWest

play

Escambia County commissioners are considering selling 25 acres of the OLF 8 property in Beulah for $2.5 million. The unnamed business making the offer wants to build a light industrial facility they say would bring jobs, and would make it the first project on OLF 8.

The potential deal, called Project Dynamo, was discussed during county commission meetings Thursday, along with a $36 million offer for the entire OLF 8 property that was recently made by Tri W Development.  

Commissioners discussed pros and cons of both proposals, but believe they are closer to making a deal on Project Dynamo than they are to selling and developing a larger swath of OLF 8.

They agreed to continue negotiations with Tri W Development as well as with Beulah Town Center (BTC), which is offering $25 million for 290 acres, although BTC developer Fred Hemmer said he would be interested in revising the company’s offer if the county is open to selling more of the OLF 8 property.  

OLF 8: Here’s a rare look inside the OLF 8 property. Wetlands and woods offer picturesque view.

The county had also received an offer from Pensacola businessmen Cliff Mowe and Ryan Chavers of $22.5 million for 290 acres, but Thursday the men withdrew their offer to the county.

What is Project Dynamo?

According to the county, it’s an economic development project facilitated by FloridaWest Economic Development Alliance. FloridaWest has been working with company representatives to bring the light industrial facility to Escambia County and the alliance is looking for a nod from the board to “expedite” the sale.

A description of Project Dynamo said the new facility would be built in the extreme northwest corner of OLF 8 bordering Frank Reeder Road.

It’s a business that would employ 210 people, claims FloridaWest. Of those employees, 170-189 would be full time positions with a minimum starting pay of $16.50 an hour plus benefits, according to FloridaWest. The company estimates annual payroll would be $5.1 – $5.6 million.

The company wants to build a facility that is 110,000 square feet and occupy it by Oct. 25.

FloridaWest said the 25 acres on OLF 8 is the only location in Escambia County the company is considering and they’re offering $100,000 an acre to buy the property, or $2.5 million. FloridaWest said the company “in the interest of time is willing to utilize its contractor to construct an interior service road built to county specifications,” but the “acquisition must be expedited” to give them time to prepare the site.

The company’s minimum capital investment in the project is $35 million and construction is described as tilt-up concrete with parking, lighting and landscaping.

Since it would be the first project on OLF 8 and due to its site dimensions FloridaWest said “some modifications to the light industrial area layout in the master plan for OLF-8 will be required.”

“This project is an excellent fit for OLF-8 and should help to stimulate additional development and investment in the park,” FloridaWest wrote to the county. “FloridaWest will work with the county and other partners to pursue Triumph Grant Funding to support required infrastructure including roads and utilities, within and nearby OLF 8.”

Escambia County commissioners voted to approve FloridaWest’s requesting for their authorization to continue working with the company, county staff and other partners on all aspects of Project Dynamo “in order to bring this development to Escambia County, help the company meet its goals, and stimulate additional job creation and property development at OLF-8.”

Commissioner Jeff Bergosh, who represents the district where OLF 8 is located, said he liked what he has seen of Project Dynamo but wants to make sure it will fit with the DPZ Master Plan approved by the county for development of the property when it comes to the building’s design and placement.

Chairman Steven Barry also supports Project Dynamo, and commissioners said there is another unnamed entity that is also interested in setting up shop on the property.

“Development is going to beget more development out there,” said Barry. “I think there’s also some holistic benefit to people seeing something actually happen, that the board does have the ability to move forward and close a deal. We just need the right deal. We just need a good deal.”

What do commissioners think of $36 million for OLF 8?

“It’s exciting to think of it,” said Bergosh, however he has some concerns, including having a clear direction as to how many acres the county actually wants to sell.

Tri W Development, LLC, a subsidiary of Jim Wilson and Associates, LLC, in Montgomery, AL, along with CAH Developments, LLC, an affiliate of The 1559-Collective, in Pensacola, are offering $36 million for the full 530-plus acres of OLF 8.

In the option to purchase provided by Tri W Development, the developers said they hope to create a “mixed-use development consisting of residential, retail and light industrial uses pursuant to a project development plan prepared or to be prepared by purchaser, which may be modified in any and all respects by Purchaser in its sole discretion.”

Bergosh said he supports talking with the latest bidders, but he questions how the purchase of the full property will impact the county’s ability to tap into Triumph Gulf Coast grant money for infrastructure and roads including nearly $5 million to widen Frank Reeder Road on OLF 8.

He is also concerned that selling the entire property will mean the county will lose control should a buyer renege on development plans and instead build high density residential, a change the county doesn’t want and is not included in the DPZ Master Plan but would be allowed under Florida’s Live Local Act without any oversight from the county.  

Escambia County Attorney Alison Rogers said the county faced this issue last year when home building company D.R. Horton Inc. offered Escambia County $33 million for more than 530 acres of OLF 8. She said as the sole owner of the property, the county can record deed restrictions to protect against development changes they oppose.  

“What we were talking about doing last year was recording the master plan as a deed restriction against the entire property,” said Rogers.

Barry agreed the county still has a lot of control. The county is already working to change certain zoning restrictions requested by another bidder for 290 acres of OLF 8, Beulah Town Center, who says the changes would be needed for any developer buying the property.

While Bergosh and Barry said they both like the sale price and some of the projects the companies have already done, they are reluctant to sell the entire property for several reasons including questions about how it would affect job creation, like Project Dynamo, among other issues.  

“I know those folks, I met with them, I’ve looked at some of the things they’ve developed in Huntsville, Birmingham, Montgomery, other places, and it looks great. But that contract was silent on the master plan. To me, that’s important. That’s important to the residents that I represent, and it’s important as it pertains to item two as well,” said Bergosh.

Chad Henderson, with CAH Developments, is the leading developer of the East Garden District development in downtown Pensacola, which has slowed. The plan was to build a hotel, new shops, restaurants and residential units in a block along Jefferson Street, and so far only one project, Union Public House, has come to fruition.

The board agreed to have staff continue conversations with Tri W Development about their offer and see where it leads, taking into consideration the possible sale of at least 25 acres for Project Dynamo and how that could impact their offer as well as any possible impact on the county’s ability to access Triumph Gulf Coast grant money.

Several Beulah residents also spoke to commissioners about the offers for the OLF 8 property. Most urged the board to stick to the Master Plan, whichever offer they decide to accept.

“We have a lot of character in Beulah, and we want that character reflected in our place,” said Beulah resident Theresa Blackwell, who also wants commissioners to protect woods and wetlands on the property. “That is a feature that can be the crown jewel of that development, which we can organize the whole development around, and it will give us the character that we need to have there, and it will make the place more successful.”

Related Topics:
Continue Reading