Navy Fed proves why job creation more important ad valorem

Navy Federal Credit Union has been an economic generator for Escambia County, Northwest Florida and the state of Florida.

According to property appraiser and tax collector’s records, Navy Federal owns 63.1 acres in the Heritage Oaks Commerce Park, total value $72 .1 million for land and improvements. Net its EDATEs, the corporation paid $798,287 in property taxes this year.

The state of Florida and the Escambia County Commission didn’t approve incentives for Navy Federal based on property taxes.  The state and county wanted the credit union operations because of its job creation – 10,000 jobs x $48,000 avg. salary = $480 million annually.

The real value of Navy Federal to the area is not its ad valorem taxes, $798K; it’s the annual wages created, $480 million.

The Escambia County Commission’s goal is for OLF-8 to generate 1000 jobs with an annual average wage of $55,000 –  annual economic impact of direct jobs $55 million.

Navy Federal bought 100 acres of the site and committed to 300 jobs at $55,000 average annual wage. The county has 500+ acres remaining to generate 700 jobs with the same average wage. A very modest goal the remaining land considering what Navy Federal has done with 63 acres.

It’s a mystery why DPZ Co-Design ignored the commission’s long-established goal of job creation for OLF-8.

Value Taxes Paid Acres
1  $          83,383.0  $     1,445.46 1.96
2  $          83,818.0  $     1,445.56 1.96
3  $   15,603,502.0  $ 102,060.80 1.86
4  $        366,067.0  $   33,953.00 2.05
5  $   15,785,846.0  $ 237,562.90 1.98
6  $          63,877.0  $     1,143.30 1.56
7  $   19,474,218.0  $ 128,138.18 1.61
8  $          81,198.0  $     1,404.72 1.96
9  $   14,849,391.0  $ 209,722.27 9.61
10  $        123,448.0  $     2,103.35 19.2
12  $     5,606,712.0  $   79,307.92 19.3
 $   72,121,460.0  $ 798,287.46 63.1

 

 

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2 thoughts on “Navy Fed proves why job creation more important ad valorem

  1. Travis,
    I don’t think anyone on the BCC has suggested duplicating ST Engineering or industrial at OLF-8. Construction jobs are available everywhere right now – in fact, there is a shortage of skilled labor.

    DPZ Co-Design Draft Master Plan has the word “jobs” on 17 pages, but it doesn’t state the number of jobs created for each proposed option and the average annual salary. Traffic counts, tax revenue yes; jobs and wages no.

    The Technical/Financial analysis presentation has Marketability, Tax Value & Productivity; Urban Design Performance; Transportation; Environmental & Infrastructure – nothing on jobs and wages created per option. There is a job estimate per type of building per acre, but nothing about the wages.

    The DPZ report lists 12 stakeholder goals – the first five appear to be from the BCC:

    1. Create at least 1,000 high-paying jobs on the site.
    2. Secure Triumph dollars for infrastructure.
    3. Solid return on investment for county residents
    4. Must benefit residents across the county not only Beulah residents
    5. Site’s size, ownership and proximity to 1-10 make it attractive as a high-tech commerce park.

    Observations: Triumph will not fund infrastructure for subdivisions – the BCC wants to apply for a $30-million grant. ROI is not only increased property taxes; it’s also the economic impact. Navy got $25 million cash from the state because of its projected economic impact of $1 billion, not $1 million taxes per year. “High-tech” doesn’t mean ST Engineering or industrial jobs. “High-paying” has been defined as $55,000/year.

    The other goals are from Beulah residents and Navy Federal:

    6. Don’t want to see more residential
    7. Town Center (by Beulah Coalition and Navy Fed)
    8. Include rural and equestrian character
    9. Too many subdivisions, traffic congestion, lack of walkability, bike trails and community amenities
    10. Quality of life and quality of place are key to successful development
    11. Stormwater management to protect Perdido Bay
    12. Planned transportation improvements such as Frank Reeder Road extension and new I-10-Beulah interchange.

    Observation: I don’t see how adding 2,018 residential units in the Market Plan or 1,514 in the Greenway or 1,314 in the Village Plan meets the Beulah residents goals.

  2. Rick –

    DPZ didn’t ignore the BOCC’s goal for jobs on OLF-8. In fact, all four of their master plan options can house AT LEAST 1,000 jobs. Economic development has been the driving force for the entire process, along with other research and public input as required by the County-approved contract. There’s even an entire plan with nothing but a Commerce Park and limited retail on the site.

    However, NFCU is a great example to discuss, as it houses 10,000 jobs on about 150 acres of developed land. By that rationale, even the most residential-oriented “Market Plan” could accommodate over *6,000 jobs* in the 92 acres of commercial space there.

    For manufacturing companies like ST Engineering, with bigger space needs, those 92 acres could accommodate over 1,800 jobs.

    Plus, the mixed-use plans can put local building trades and construction companies to work building housing and retail as soon as 18-24 months from now, while we wait on those 6,000 jobs.

    Seems like a balanced approach would create more jobs, and sooner, for everyone.

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