Economic Slowdown Affecting Commercial Construction Schedule

Wal-Mart, Epic Theater, and others are delaying commencement of construction because of the uncertain economy.

Palm Coast, Florida – November 25, 2008 – Turmoil in the financial markets is having an effect on commercial real estate development in Palm Coast, Florida. Epic Theater and Wal-Mart have both given notification that their planned construction schedules have been extended. Epic now plans to begin construction in the spring. Wal-Mart has moved its new supercenter opening from 2009 to 2010. The current lack of a bond market may also impact the Old Kings Road 4-laning project.
The following projects have been postponed:
  • Wal-Mart SuperCenter on Old Kings Road – final site plan approved – no building permit applied for
  • Epic Theater – 1185 Central Avenue – Town Center – Permit ready – permit expires 2-20-09 – 48,281 square feet – Impact fees due upon issue of permit $234,595.
  • Retail, storage, restaurant – 85 Cypress Point Pkw – $800,000 – 11,831 square feet – Permit issued – Permit expires 12-11-08 – Impact fees = $58,434.
  • Office medical building – 3 Boulder Rock Dr – $1,578,000 – 10,358 square feet – Permit ready – Permit expires 3-15-09 – Impact fees = $115,695
  • CVS Pharmacy – SR 100 at John Anderson – Building essentially completed – opening scheduled for March ’09
The 4-laning of Old Kings Road from State Road 100 to Palm Coast Parkway may also be impacted by the lack of a bond market. Contracts have been approved and the local contractor is ready to begin work, but the planned bonding cannot go forward in the current financial market. A city council workshop addressed this issue today. A tentative plan to use $10 million already allocated for the utilities portion of the project gained support of council members. These funds would allow Phase I to move forward.
Phase I includes the widening and realignment of Old Kings Road between State Road 100 and the Lehigh canal at Town Center Parkway. The current alignment takes Old Kings Rd through the middle of the Wal-Mart tract. Wal-Mart indicated that they will agree in writing to close on the property if the city went forward with their plan to commence construction soon.
City manager Landon pointed out to council members that the widening had taken on the significance of an economic development project. The road project would employ over 50 workers for more than twelve months. Wal-Mart, when built, will employ 400 – 500 people. The "Wal-Mart effect" will likely bring in several other businesses needing employees. The widening will make the adjacent land more valuable and attractive for future developers. The majority of the project will be funded by an incremental taxing district already in place. This means that the owners of the property fronting Old Kings Rd will pay the majority of the road construction costs.
2 replies
  1. George Meegan
    George Meegan says:

    There you go again !

    Municipal Bonds are in high demand right now as they pay more than US Treasury Bonds. A typical A rated pays 6% and is tax free. I’ll bet there’s over a thousand people right here in Palm Coast that would buy them up like hot cakes. If we wait for rates to go up they will not be in demand, at that rate, but higher. However, they better look into spending the 56 million they have sitting in the bank before issuing any bonds.

  2. Chaaarlie
    Chaaarlie says:

    Epic Delays!

    So, the Epic theater has been delayed yet again! Oraiginally construction was supposed to start in July 2007, so total delays are now about two years. I doubt the theater will ever be built–at least by Epic. I wish a reliable chain would take it over.

    Palm Cost is not the only lacation that Epic has announced vapor theaters. I know of at least two others.

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