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Property appraiser Morgan Gilreath: 'Real estate leading the economy'

Volusia County Property Appraiser Morgan Gilreath thinks an economic truism has been turned on its head right here in Volusia County.

Usually, construction follows the economy, which means that an economic boom leads to a construction boom. But while the national economy was faltering in recent years, the construction industry in this area was experiencing an unprecedented boom. Finally, in the most recent quarter, national economic indicators suddenly showed up with figures that hadn't been seen since the 1980s - the best they've been in years. For once, Gilreath said, it looks like the construction improvements presaged the general economic figures.

"Real estate, contrary to common wisdom about the way things work, appears to have been leading the economy," he said. "From the analysis we've seen, we don't see a slow down (of the construction boom) at all in the foreseeable future. We're going to see an increase in construction for some time to come."

The booming construction activity isn't limited to any one area of the county. In every corner of Volusia, building is transforming once-remote rural landscape into industrial parks, medical office complexes or upscale housing developments.

Back in the core area of the longest-established city in the county, the once-dominant Daytona Beach downtown area, ground breaking on the $29-million News-Journal Center is scheduled for January. Greg France, who took over as the city's chief building official last summer, said he's convinced that once the riverfront lively arts complex opens it finally will help produce the rejuvenated down-town area city leaders have been striving to produce for decades.


Architectural model of the News-Journal Center riverfront lively arts complex

France, who comes from Baltimore, sees the addition of the riverfront theater and arts center as the kind of attraction that Baltimore used as a base for its very successful downtown redevelopment. "It's going to have an enormous impact on the community," he predicted.

He's just as enthusiastic about another project set to begin in the near future ‹ the expansion of the Ocean Center, another major project that's been in the offing for some time.

Meanwhile, the ongoing redevelopment of the city's core beachside tourist area continued with the $47-million Ocean Walk North Tower project granted its permit.

Other construction activity in the first three quarters of 2003 was a little more mundane, without the news value of major projects aimed at creating a new public landmark. Current projects are the kind of 'meat and potatoes' of construction, including a $7-million expansion of Wal-Mart on Beville Road along with a $1.5-million addition to Sam's Club in the same area and a slew of condominium projects along Atlantic Avenue, ranging in price from $14 million to $50 million.

On the west side of the county, Volusia's largest city, Deltona, is experiencing its own growth spurt - almost entirely residential. While Daytona Beach's building department issued a mere 15 residential permits for the entire third quarter, with a value of $2,492,615, Deltona issued permits for 379 new single family homes with a total value of $59,986,633.

"We're looking at about 1,400 houses (scheduled to be built) in the first three quarters of 2003," said Cy Butts, Deltona's building official. He added this is an increase of 200 permits over the same period in 2002. Deltona, with a population of 76,322, issued a few, modest commercial projects for the third quarter including a video store and a CVS drugstore. Butts doesn't see that balance changing in the near future.

In DeLand, Dale Arrington, the community development director, reports plans are moving forward for "two massive subdivisions" in the Lake Winnemisett area, and another on hundreds of acres on S.R. 44. And after five years in development, Victoria Park, which eventually will include 10,000 new residents in the most ambitious such project in the city, already has 91 new homes occupied as construction continues on the rest of the massive 1,800-acre community.

Arrington said construction is set for additional commercial space at the city's airport industrial park and for a bus depot near the historic downtown center. And the Wal-Mart Supercenter opened in October, which officials have predicted will lead to further construction as other retailers cluster around to tag on to the behemoth's coattails.

In New Smyrna Beach, the boom is largely residential ‹ with condominiums dominating the rapidly changing landscape of the once sleepy seaside town. In October, Richard McFadden, the city's chief building official, reported: "We're averaging $6 million per month in new construction costs coming through this office." Just in the third quarter alone, McFadden's office reports that 137 residential permits were issued for a total dollar value of $6.746 million.

In fact, so far this year, new permits to build housing units of all types have more than doubled over last year's figures. The largest of the condominium projects under construction, Minorca, is expanding with the latest in its series of buildings going up now.

The explosion in residential construction is helping to pay for civic construction to enhance the amenities offered by the city, McFadden said, including the soon-to-be completed $1.3-million Babe James Center, and an expanded $3.3-million municipal stadium complex.

In Port Orange, Volusia County's third largest city, Donna Steinbach, director of community development, said: "We have a tremendous number of developments in our city. We have 23 residential projects under way, just for starters."

Construction is also on the rise in Ormond Beach, in northeast Volusia County, with both residential and commercial projects creating an atmosphere of prosperous growth that the city's building official, Bob Dunn, calls "wonderful."

Dunn said there is a plethora of major projects including Kane's new distribution center. At 44,000 square feet, it will be the third largest in the state. An air-traffic control tower at the city's airport will lead to further expansion at that facility, Dunn said.

He also points to the continuing enhancements and construction of an additional upscale retail store in The Trails Shopping Center, to be occupied by Jos. A. Banks Clothiers, as an indication of the city's continued growth and economic vitality.

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Department of Economic Development
700 Catalina Drive, Suite 200
Daytona Beach, FL 32114
Telephone:
386-248-8048
FAX: 386 238-4761
Toll Free: 800-554-3801

Phil Ehlinger
Director
doed@volusia.org

 

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