With the economic referendum no longer on the ballot, it's back to the drawing board for economic development. The referendum will still be included on the Nov. 2 ballot, but the votes won't count.
by Andrew O'Brien | Staff Writer
Enterprise Flagler has closed the playbook on its new game plan for economic development, for now, and County Commissioner Milissa Holland has expressed that there is no clear-cut solution to the county's unemployment rate and non-diversified economy. It will take a variety of solutions, she says, because the problem isn't one-dimensional, it's 3-D.
Enterprise Flagler Executive Director Greg Rawls and board member Michael Chiumento stood before the Flagler County Board of County Commissioners Monday, Oct. 4, and requested the economic referendum appearing on this year's general election ballot not be counted. The County Commission unanimously approved the resolution to remove the referendum.
Still, the commissioners acknowledged that Enterprise Flagler's work on the referendum brought economic development into focus for the county.
"The entire community (wants) to see leadership ... to address the tax burden, the unemployment, the diversity and the competitiveness our community is lacking," Chiumento said.
Holland said it was now time to "build upon some of the groundwork that was laid out by the referendum discussions."
She asked staff to set up workshops with the other municipalities, as well as Enterprise Flagler and the Flagler County Chamber of Commerce & Affiliates.
"We need to be architects of our own destiny," Holland said at the meeting. "I think having a dedicated funding source is well-recognized, but I also think that the public deserves for us to work diligently to become more proactive rather than reactive to these issues."
Next step: Involve the municipalities
Holland also said the focus shouldn't be on the prized 100,000-square-foot building that Enterprise Flagler has discussed. She said a speculative building could sit empty.
For Holland, the process going forward should be centered on strategic planning. She said the county and its cities need to create the community they want to become, identify our assets and then market them.
A suggested alternative to the economic referendum has been a half-cent sales tax. With the referendum removed, the sales tax could highlight the upcoming discussion.
According to the Department of Revenue, the half-cent sales tax could generate approximately $3.8 million annually.
Another potential player in the "3-D solution" is Hire Flagler, which began about a year ago and continues to meet to brainstorm ideas for job creation.
"When it comes down to economic development," Holland said, "it can't just be one solution that you look toward. It needs to be multiple solutions that we create."
Economic vs. School Board referendum
Enterprise Flagler also recognized the school district's referendum for the continuation of a .25-mill tax.
"Based on the feedback we've received from the community," Rawls said, "many citizens are concerned with having two ad valorem tax initiatives on this fall's general election ballot. A key component to economic development is Flagler County's great school system. The last thing we want is to jeopardize the School Board from obtaining necessary funding if residents voted against both initiatives."
School Board member Andy Dance said he thinks it will be more palatable once voters realize the school's referendum is not a new tax, but a continuance of what they've been paying. The economic referendum was a new tax.
"The popular thought always was that having both (referendums) on the same ballot would be a negative," Dance said. The fear, he indicated, was that neither tax would be supported if there were two.
As for what might have led to the demise of the economic referendum, County Commissioners Barbara Revels and Alan Peterson speculated the specificity might have been Enterprise Flagler's main hurdle: Residents may have been hesitant because they didn't know exactly how the money would be spent.
"It was too general," Peterson said. "Essentially, it said give us $2 million a year and trust us."
The estimated cost to taxpayers for the referendum was about $20 or $30 each year, which would result in about $1.8 million collected annually, and would have been controlled by the County Commission. It was expected to bring in about $15 million over 10 years.
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