The credits generated by the existing Florida Hospital Oceanside property are non-transferable. The city hopes this will incentivize the property's redevelopment.
The Florida Hospital Oceanside property will keep over $300,000 in impact fee credits, to be used solely in that location by the property owner, but with a tentative expiration date of five years.
On Tuesday, Jan. 8, the Ormond Beach City Commission unanimously approved a resolution that authorized the execution of an impact fee preservation agreement between the city and Memorial Health Systems, Inc. The agreement states that it is an incentive to prevent blight along South Atlantic Avenue.
The hospital sustained significant damage during both Hurricane Matthew and Irma, and has been shuttered since October 2017. The $305,789.83 in impact fee credits for the three-story hospital building is made up of water, sewer, mobility and stormwater fees.
City Commissioner Susan Persis asked about the time period, as Memorial Health Systems had initially asked for a 10 year impact fee credit preservation.
"My concern would just be something being vacant for 10 years — something on A1A," Persis said.
Planning Director Steven Spraker said that is why staff went with a five year time period. However, if the property owner was unable to redevelop the property within the five years, they could approach the commission again and ask for an extension. AdventHealth has listed a portion of the hospital property for sale, and is planning to keep 2.44 acres.
“We’re trying to ensure the redevelopment," Spraker said.
In 2015, Spraker said the City Commission approved an ordinance that allowed property owners to save impact fee credits associated with existing buildings in the process of being demolished. He explained that there was a concern of keeping blighted buildings should credits be lost.
The impact fees are specific to this property and will not be able to be transferred elsewhere.
City Commissioner Troy Kent said he agreed with Persis, and praised city staff for going with a five year deadline instead of 10 years.
“And with that, I think we’re being an extremely good neighbor to the hospital," Kent said. "And hopefully, it will be nowhere near five years before its redeveloped into something that’s fantastic in that location.”