The Flagler County Industrial Development Authority Board met for the first time today to learn its purpose and limitations as an advisory board to the County Commission.
The commission appointed the seven-member authority in June–seven white men–as an arm of the county’s economic development planning. The authority’s primary responsibility is to recommend the issuance of tax-exempt bonds to industry or developers as a spur to economic development.
To the group’s happy surprise, its first interested parties were in the slim audience of three: RJ Santore and Rick Gil of Ralph Santore & Sons, the pyrotechnics manufacturer in West Flagler, who are interested in expanding their 60-acre compound and add to their ranks of 30 employees.
The group appointed Raymond Ricchi, chair (“he’s the guy that’s done it before,” Bruce Parker, who nominated him, said). Ricchi, an executive management retiree, is a past elected city official in Texas. The vice chair is Richard Mielbye, a developer. Other members are Bruce Parker, Donald Turlington, Silas Grinstead, Chad Raymond and Shawn Rhoton. (See their applications here.)
For now, the authority will be meeting every third Thursday of the month at the tourism office’s conference room at the county airport at 120 Airport Road, where it met today for what amounted to a 90-minute orientation session.
To some of its members’ surprise–or chagrin–the authority is not to make deals with companies. “Y’all aren’t in the deal-making parts of it,” Dolores Key, the county’s economic development director, told the board.
“That’s not to say later down the road you may, after you get some money in your piggy bank, want to broaden what you all do as a board,” Key continued. “But right now the scope of the IDA, the Industrial Development Authority, is to give blessings to those companies that are seeking bonds, either to relocate here or to expand their business.”
Those are generally called industrial revenue bonds or industrial development bonds. They are issued to private companies to finance projects, just like any other loan, except that IDA bonds would have a lower financing cost, usually by 2 to 3 percent less than bank financing, making them more attractive to development. In turn, having an industrial development authority is expected to fuel local development.
Some of the seven authority members had different ideas about their role, which will assuredly not be a replica of former economic development boards–either like Enterprise Flagler, which operated until early in the past decade under the umbrella of the then-chamber of commerce, or the county’s own ill-fated economic development board.
“Whose role is it to go out and try to solicit businesses to this county to balance our tax base right now?” Board member Raymond Ricchi asked.
“That falls under the economic development,” Key said. That would be Key herself. “Anything dealing with zoning, and all of those things go to growth management.”
The authority acts in an advisory capacity to the County Commission just like a planning board or a tourism development board. Votes are recommendations. The commission ratifies or rejects the votes.
Deputy County Attorney Sean Moylan gave the board a brief tutorial on the Sunshine Law, since the majority of the members are not familiar with its application: all meetings have to be open to the public (what exceptions apply, such as discussing litigation or collective bargaining strategy) would not apply to this board. That includes goal-setting and personnel matters. All discussions with any bearing on the authority’s purpose have to be held at a meeting. On those topics, no discussions between members outside of meetings are allowed.
“You really can’t email each other about your work here,” Moylan told them, except for one-way memos. None of the members may reply to the memo until they are at a public meeting.
“It is definitely inefficient, but it is a consequence of the rampant corruption in Florida in the 1970s,” Moylan said. “The majority of our Supreme Court was in hot water, and one of them died as a fugitive. The 1970s in Florida, it was really ugly. And so the pendulum swung all the way back in the other direction. And now we have the most open government laws in the nation.”
Moylan also cautioned the board members, most or all of them products of the private business sector, where secrecy is second nature, about public records. Every document, text, note, email and other communications or jottings that are part of the board’s business are public records.
“This is a new authority, and we’re sort of finding our way,” Moylan said. “Even right now, we’re kind of figuring out our role and our identity here.”
The authority will have to keep records, maintain a website, have its own seal, its own application form that developers would use. The applications, to cost $1,500, will be reviewed by the county’s economic development department and by its legal department as well as by a rating agency before it appears before the authority for review and a recommendation. The application then goes to the County Commission. The authority may charge a financing fee of up to $75,000 per application, or a small percentage of the sum to be financed. Revenue would be spent on economic development initiatives in the county.
St. Johns County’s industrial development authority recommended $1.4 billion in bonds between 1985 and 2022, at a rate of less than one per year. Activity in Flagler County is not likely to be more brisk than that.
“The IDA bond is essential in our toolbox, because we’ve never had that before,” Key said.
Ralph Santore & Sons wants to apply. “That would be great if our first customer was just here locally,” Amy Lukasic, the county’s tourism director, who oversees the economic development division, said.
“We’re looking to possibly purchase land that touches our property,” Santore said, “and then move on to building new buildings and upgrade buildings we have and hiring more people.”
JC says
“The commission appointed the seven-member authority in June–seven white men–as an arm of the county’s economic development planning. The authority’s primary responsibility is to recommend the issuance of tax-exempt bonds to industry or developers as a spur to economic development. ”
Why you have to point out the race of the appointed members? Who cares if they are white, just pointing out the race of the members is freaking racist.
Hangin around too long says
Thus, half a person per acre. This appears to be a promising investment for low-wage employment, potentially leading to a land acquisition in the future.
Which company would be inclined to establish proximity to a minor pyrotechnics facility?
What is the safety buffer zone for a small-scale bomb production facility?
Is there anyone in the Flagler government who cares, knows, not too financially constrained.
Perhaps, a fuel depot or a charter school could also be viable within a 100-foot radius.
Another failure.
What other actions will the undereducated individuals of small Flagler County undertake next?
Cisco says
we need a major business industry to move in with the local and state government help with land acquisition and tax reductions for a period of 5 years and help with the water and other utilities. We can advertise nationally and target companies and make Flagler County the place where they would want to locate and get help from the Governor for money to fund the training for their workforce, much the same as Georgia does with their trade schools. We don’t need to keep giving good ole boys contracts to just locals that never live up to their promises. We waste enough of our tax money on purchases and contracts without the oversight and who’s benefitting on both sides of said contracts. It time that the Good ole boy club is over and contracts and purchases not just kept being given to the same people and companies. The Governor needs to DOGE our Government here and cut all unnecessary spending. We can pay for all of our water and sewage needs if everything department cuts their budget by 12 % for 5 years and pay off all of the outstanding debts, because the economy and property values are not guaranteed and we don’t want to be like New York City and California, and raised taxes and be a city of vacant homes and businesses like some cities. I can see the waste and can show the council some of them, which is more important industry, good water and sewage, or buying brand new vehicles and enlarging their budgets to spend every dime of the taxpayers money. I just think that it’s asinine to keep doing the taxpayers wrong. I wonder if these people run their households like this with no money left for retirement, oh,I forgot we pay it for them and we can’t afford ours, all we have left is tears in our beer, this just has to stop,who can we trust in our government here,I am just wanting them to do the right thing, and not who financed their run for office or their ties to them if they are profiting even one dollar, they should resign because of conflict of interest, or if they are representing them in any business with the city they should resign and maybe investigated for conflict of interest. I want this journalist also to investigate each and every member and write a segment on them. I thought that turning over all of their income by law would help,but it doesn’t cover gifts, payments not in monetary form or favors,but yes the charter needs to be rewritten to give better oversight of our government expenses and the right for council to veto the spending, and not being yes men and women on our council. I am not saying that anyone is doing anything wrong,but we need oversight and not yes people. Please print this and ask all of your readers if they have any ideas also and be the journalist that we as a city need.
Jay Tomm says
No. We NEED to stop building ANYTHING for 5 years! Place a 5 year ban on any new construction or projects throughout the county. Then re-access!
Ron says
Why not reach out to Audi? They are looking to setup shop in the Southeast.