Escambia BCC votes 5-0 to sell OLF-8 for $50 million

After a lengthy discussion that highlighted competing priorities between the purchase price and development potential, the Escambia County Board of County Commissioners voted 5-0 to enter into negotiations with Beulah Town Center, LLC, headed by Fred Hemmer, for the development of the 540-acre OLF-8 property.

The good news is all five commissioners, the developer, FloridaWest Economic Development Alliance board president David Bear, Greater Pensacola Chamber CEO Todd Thomson, Pensacola-Escambia Promotion and Development Commission member Dave Hoxeng, and the Beulah residents at the meeting agreed that the OLF-8 Master Plan must be followed.

• The master plan created DPZ Co-Design and approved by ordinance by the county commission in 2021 calls for a mixed-use project, including 271 acres for a light industrial district, 61 acres for residential and 47 acres for a mixed-use town center.

CLEARING UP MISINFORMATION

Bear addressed the commissioners regarding the intersection of light industrial development and residential neighborhoods and a $14.2 million Triumph grant for infrastructure on the site.

• “I’m not here tonight to try to persuade you to make a decision one way or another,” he stated. “I’m here speaking tonight to talk and give you facts to help you make your decision regarding this project.”

Bear noted that while the county has pursued a Triumph grant, the process remains incomplete. “The county does not have a Triumph grant. Its application has moved through the process, but there is not an approved term sheet, and there is no grant award agreement.”

• In her monthly News Journal columns, Beulah advocate Theresa Blackwell has attacked the University of West Florida Haas Center’s analysis on the economic impact of the light industrial zones at OLF-8, even though the center also did the analysis for DPZ in 2021. Earlier this month, she wrote, “We do not need to fill up the light industrial land with advanced manufacturing, as the UWF Haas Center presented at one of the meetings.

Addressing concerns about light industrial development in residential areas, Bear pointed to existing examples of successful integration. “We have these all over the county and in neighborhoods without disruptions or complaints,” he noted, emphasizing that modern light industrial and heavy commercial development does not include traditional industrial features like smokestacks.

Bear’s remarks followed a recent site visit by Commissioner Steve Stroberger to the Lewis Bear Company’s warehouse facility, which he cited as a practical example of how light industrial development can successfully coexist within residential neighborhoods.

PRICE POINTS
After hearing from the public and the developers, the board grappled with multiple proposals, including a $42.5 million offer from Tri-W Development that was withdrawn during the meeting after extensive discussion about price points. Chad Henderson said his group was willing to increase its offer, but he wanted to work out the dollar amount during the negotiations.

The commissioners focused heavily on balancing the immediate benefit of a higher purchase price against long-term economic development potential. Commissioner Steven Barry emphasized that while purchase price was important, “it’s going to be the revenue that comes off the property in perpetuity after it’s developed.”

Commissioner Lumon May stressed the project’s original intent for job creation, noting, “This was an economic development project for job creation. There’s no question about it.”

Commissioner Mike Kohler expressed concern about justifying a lower purchase price to constituents, stating, “I can’t lose seven and a half million dollars… The headlines will be Board of County Commissioners gives up $7.5 million.”

The final motion, proposed by Commissioner Steve Stroberger, included two notable conditions: a 30-day negotiation period and the requirement that the DPZ master plan be included as a deed restriction. County Attorney Alison Rogers noted this requirement would help “protect the future of our own real estate,” particularly given current “Live Local Act preemption” considerations.

The unanimous vote came after Tri-W Development withdrew its offer during the meeting. The decision authorizes county staff to begin negotiations with Beulah Town Center, with commissioners emphasizing the need for swift progress on contract terms.