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HOME OF PELICAN ISLAND
SEBASTIAN CITY COUNCIL
MINUTES
ECONOMIC DEVELOPMENT WORKSHOP
WEDNESDAY, APRIL 4, 2007 - 7:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
Mayor Coy called the workshop to order at 7:00 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
City Council Present:
Mayor Andrea Coy
Vice-Mayor Sal Neglia
Council Member AI Paternoster
Council Member Dale Simchick
Council Member Eugene Wolff
Staff Present at Dais:
City Manager, AI Minner
City Attorney, Rich Stringer
City Clerk, Sally Maio
4. CHAMBER PRESENTATON -BILL FROTH
Beth Mitchell, Executive Director of the Sebastian River Area Chamber of Commerce
said this workshop was requested at the recommendation of Chamber member Don
Wright to bring knowledge of the importance of economic development for the City of
Sebastian to the entire community, and then introduced Indian River County Chamber of
Commerce Executive Director, Penny Chandler, Economic Development Director,
Caseltine, Fellsmere Council Member, Susan Adams, Fellsmere City Manager, Jason
Nunemaker, and Fellsmere Finance Director, Larry Napier.
Ms. Mitchell then introduced Kathy Burke, CEO of Sebastian River Medical Center, who
introduced William Fruth, President of Polycom Corporation, an independent economic
research firm in Palm City, Florida who specializes in studying dynamics of local
economies. She cited Mr. Fruth's background and nationwide experience in local
economic development issues, commercial development and local politics.
Mr. Fruth said improving the economy is the single most important thing a local
government can do, and presented a power point presentation on the issue.
City Council Workshop
April 4, 2007
Page Two
During his presentation, Mr. Fruth responded to questions from staff and City Council.
Mr. Wolff asked how local growth charts are affected by the cyclical activity of various
local industry such as citrus. Mr. Fruth said the citrus industry typically creates low rate
jobs, and in his opinion, does not have a long term future because of strong competition
from foreign countries. He said Indian River's biggest industry is retirement, citing
Charlotte County as the oldest metropolitan area in America with its over age 65
population at 34% and they have no industry except for retirement. He said they also
have the lowest wages of anyplace in America. He said Pinellas County was in the
same situation until they brought in high paying industry and created a younger
population through jobs, the average wage is now in the top 50, and they now have
museums and other cultural amenities to offer.
Mr. Neglia asked what we do about the numbers Mr. Fruth presented and Mr. Fruth said
he would get to that at the close.
Mr. Fruth continued with the power point presentation and defined Economic
Development as "The process which improves the standard of living for the people who
live and work in an area".
5. COUNCIL DISCUSSION
Mr. Neglia said the City is beginning to do what it can to help its economy, and with the
assistance of the Chamber we can work now to do something for the City, to bring in
high paying jobs and to keep people here. He said while numbers show a lot, the City
needs to get on with a plan.
Mr. Wolff thanked Mr. Fruth for his presentation and had clarified by Mr. Fruth that
retirement is the principal contributory factor in this area because it brings in retirement
and social security checks.
Mr. Wolff then asked how one can sell to its residents the benefit of bringing in growth
and industry. Mr. Fruth cautioned against the word growth, noting economic growth can
occur without population growth; and by way of explanation said if we are going to
improve the standard of living for the people who are here, the tax burden would fall on
the taxpayers' shoulders, however, primary employers consume very little tax services
and throw off cash so their economic impact on the growth of government is significant;
that they don't necessarily cause population growth but do improve the overall economy.
He cited the CVS distribution center as an example of high paying jobs with no negative
impact on the residency.
Mr. Wolff then asked about enhancement of existing industry programs as a start. Mr.
Fruth responded that it is important to first identify what you have, noting that the
majority of primary employers employ less than 50 people.
Mr. Wolff said that the City Manager had brought to Council's attention that Florida does
not have much to offer as incentives to businesses and asked Mr. Fruth's opinion. Mr.
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City Council Workshop
April 4, 2007
Page Three
Fruth said Florida is contributing more than it has in certain areas, however, nationally
other states don't look upon Florida as stiff competition, noting that Georgia has a
philosophy that if they want to bring in a company they just take a trip down to Florida
and take one; that Florida's business climate is not the best in the nation because it is a
highly regulated area. He said incentives are everywhere, you have to keep costs
down, and expedite the permitting process, citing Pinellas Park will provide a building
permit in 13 calendar days to qualified primary employers.
Mayor Coy said the key is to identify what your target is and what your goal is and just
because there is quantity doesn't mean there is quality, and the City is in a good position
because of the property we have, and we need to offer incentives to people who are
going to raise the economic bar.
Mr. Paternoster thanked Mr. Fruth for his presentation, and asked how we bring in
higher end jobs. Mr. Fruth said you need to create an incentive matrix which includes
specific criteria and the ones that score the highest including higher wages get the
incentives. He said this is a relatively low wage area.
Ms. Simchick thanked Mr. Fruth, and commended the new found spirit of community;
said we can look at what existing industry we have and if they exist, nuture them; noted
we have the airport land and the labor and we need to start enticing the right groups,
simultaneously step up funding for infrastructure; and create a strong relationship with
our Chamber of Commerce.
Mr. Fruth said land is the most important product.
Mayor Coy said we have been doing the residential boom, and we need to look at
enticing commercial annexation. She asked how important an economic development
plan is to a local community and Mr. Fruth said you have to have a plan in place.
Mayor Coy said incentives for the airport property could be in the lease agreements or
infrastructure.
Mr. Neglia asked if a City ran out of property to offer anyone what would happen. Mr.
Fruth said when you run out of land you can look at redevelopment. Mr. Neglia said he
cannot agree with Mr. Fruth on this. Mr. Fruth said you have approximately 150 acres to
offer at the airport which could offer approximately 3,000 to 4,000 quality jobs which
would significantly impact the local economy and this land would probably carry you for a
fifteen year horizon.
Mr. Fruth said there are training programs available for workers by local community
colleges; and, in his opinion, there are many people in this area who are skilled but are
commuting to other locations to work.
Jason Nunemaker, City Manager, Fellsmere, addressed City Council, said there are
things that Fellsmere has done to assist existing businesses, like staff level site plan
City Council Workshop
April 4, 2007
Page Four
review for existing structures to expedite processes and minimize costs. He said it was
most important to work together and offered the assistance of Fellsmere as a partner.
Council Member Susan Adams, Fellsmere, thanked Council and Mr. Fruth for this
opportunity and said she looked forward to working with Sebastian.
Don Wright, Economic Development Chairman for the Sebastian River Area Chamber of
Commerce, thanked Council and Mr. Fruth for the workshop, as well as the Indian River
County and Sebastian Chambers for making this opportunity available; and extended his
services to develop economic development plans. He said beyond the airport property,
there are other available properties privately owned and public/private partnerships can
be developed. He said consideration needs to be given for commercial annexation so
the City does not run out of property for economic development.
Mayor Coy received consensus for a future workshop within a sixty day period to hash
out our ideas for a state of the art City economic development plan, which would give
time for Council members to research and gather ideas and to attend Economic
Development Council meetings. She asked the City Manager to make this happen and
be sure to invite the Chamber.
Mr. Neglia said he did not want to see commercial annexation thrown down our throats
and cautioned we be careful how we go about it.
Ms. Simchick said in addition to inviting the Chamber and public, groups with large
commercial areas that are undeveloped should come forward.
Mayor Coy thanked the Chamber of Commerce for funding the presentation by Mr.
Fruth.
Being no further business, Mayor Coy adjourned the workshop at 9:00 p.m.
Approved at the May 9th, 2007 Re lar City Council Meeting.
Andrea Coy, Mayor
ATTF~T:
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A. Maio,JMMC -City Clerk
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