Newsletter 132

NEWS FROM THE SUNCOAST …..

AIR TRAVEL UP THIS YEAR

Year-to-date passenger traffic at Sarasota-Bradenton International Airport hit almost 2 million people in May, as two of the airport’s major carriers saw user increases of more than 100% over the year. The airport had 332,431 passengers in the month of May, an increase of 43,880 travelers over the same month last year. So far 1,803,944 passengers have traveled through Sarasota-Bradenton in 2022, compared to 1,146,782 over the same period in 2021. In April, the airport saw 386,013 passengers. Southwest Airlines and United Airlines have reported year-to-date increases of 100% or more compared to the first five months of 2021, according to SRQ. Southwest launched service at the airport in February. Although growth is currently outpacing the record year of 2021, airport President Rick Piccolo said the summer will likely be slower because of rising fuel prices, pilot and personnel shortages and airline schedule cutbacks. “It is recommended you book your flights early to assure you get your desired destinations,” Piccolo said.

For more on this story, courtesy of the Sarasota Herald-Tribune, please click here: Air Travel Up This Year

$5 MILLION BENCHMARK

More than 50 single-family residential properties have already sold for more than $5 million in 2022, a level that used to be rarely reached in Sarasota and Manatee counties. For example, just 12 homes in the two-county area hit the $5 million threshold in all of 2017. Over the next few years, the only time more than 20 properties sold for $5 million was in 2020, when 31 reached the mark. For a variety of reasons, and partially as a result from an avalanche of demand unleashed after COVID-19 lockdowns lifted, 108 properties crested $5 million in 2021. Despite some signs the overall real estate market could be slowing, luxury sales still appear to be on pace to match the record-shattering figures of 2021. Since the start of June at least three properties have sold for more than $5 million, including a $9.65 million sale at 1435 Westway Drive in Lido Shores. Toni and David Zarghami, founders of the Zarghami Group, Keller Williams Classic, represented the seller in negotiations with Ryan Skrzypkowski of Coldwell Banker Realty. David Zarghami said after the Westway property was listed the couple were “immediately inundated with interest. The seller ended up accepting an offer $300k above list price on the first night of the listing going live.” To read more, please click here: $5 Million Benchmark

HOME PRICES RISE 0.8%

A typical Sarasota County home listed for $599,450 in May, up 0.8% from a month earlier, an analysis of data from Realtor.com shows. The median list home price in May was up about 33.2% from May 2021. Sarasota County’s median home was 1,768 square feet for a listed price of $333 per square foot. The Sarasota County market was busy, with a median 31 days on market. A month earlier, homes had a median 29 days on market. The market added 1,468 new home listings in May, compared with the 1,288 added in May 2021. The market ended the month with some 1,222 listings of homes for sale. Manatee County’s home prices rose 0.1%, to a median $599,500, from a month earlier. The typical house was on the market for 29 days, the same as a month earlier. The typical 1,933-square-foot house had a list price of $309 per square foot. Across metro Sarasota, median home prices rose to $597,000, up 1.2% from a month earlier. The median home had 1,830 square feet, at a list price of $319 per square foot. Across all of Florida, median home prices were $490,768, rising 3.8% from a month earlier. The median Florida home for sale had 1,715 square feet at list price of $282 per square foot. Across the United States, median home prices were $446,950, up 5.2% from a month earlier. The median American home for sale had 1,861 square feet, listed at $226 per square foot. Please click here to read more: Home Prices Rise 0.8%

PROPERTY VALUES SKYROCKET

Taxable property values in Sarasota and Manatee County have increased dramatically over the last year, escalating rapidly during the region’s real estate boom. Sarasota County’s estimated taxable property value soared to a cumulative $81.8 billion this year, 16.7% more than the 2021 value certified last October.

That’s an abnormally high increase. The average year-over-year rise in property values for the five-year period from 2018 to 2022 was only 8.2%. Manatee County also saw an eye-popping jump in assessed property values, to $52.6 billion, a 17.3% increase over last year. The leap in assessed property values is no surprise, given the hot real estate market locally and statewide following the pandemic’s onset. Single-family home prices in the North Port-Sarasota-Bradenton metropolitan area rose by 36.2% from January 2021 to 2022, according to real estate analytics company CoreLogic. The 2022 property values for Manatee County and Sarasota counties are June 1 estimates provided by each county’s property appraiser; they will be finalized later this year. The figures will be used by governments as they develop their budgets and tax rates for the fiscal year that begins Oct. 1. The dramatically higher appraised values could signal higher taxes for many property owners, particularly those with non-homesteaded property, and a potential windfall of increased revenue for government authorities. There’s more on this story here: Property Values Skyrocket

OUT-OF-STATE BUYERS CHANGING

The following is an editorial written by Duff Rubin from Coldwell Banker.

As we approach the summer real estate market in Sarasota, we are witnessing both an increase in demand for homes and a shift in the demographics of out-of-state-buyers. Where are buyers coming from? We examined all Coldwell Banker Realty residential property transactions in Southwest Florida (including Charlotte, Collier, Lee, Manatee and Sarasota counties) between Jan. 1 and April 30, 2022, in which buyers reported their place of origin. Florida buyers themselves purchased the most homes in the southwest of the state during this period, approximately 50% of all transactions. The Top 10 locations from which out-of-state buyers arrived were, in order, New York and Illinois (a tie), Michigan, New Jersey, Massachusetts, Pennsylvania, Ohio, California, and Wisconsin and Virginia (a tie). Nearly all foreign buyers were from Canada during the first four months of 2022, a trend we also saw throughout 2021. According to the 2022 Coldwell Banker Global Luxury Report, the five U.S. states that attracted the greatest number of foreign homebuyers from April 2020 to March 2021 were California, Arizona, Texas, Florida and New Jersey.

Midwest U.S. buyers historically favor southwest Florida. We are seeing come changes in migration, however. As noted recently, northeast buyers that typically focus on the Atlantic coast of Florida are now buying in greater numbers on the Gulf Coast. California buyers have also been seeking a sunny lifestyle in Florida that comes at a lower cost than in their home state. Please follow the jump for more on this story: Out-Of-State Buyers’ Changing

COUNTY LOOKING AT IMPACT FEES

Sarasota County may make it less costly for developers and nonprofits to build affordable housing by reducing some impact fees. The cheaper fees would be potential incentive for the construction of more affordable housing. Impact fees are one-time payments imposed on development by a local government to help pay for infrastructure improvements required to offset the impacts of growth, such as roads, government buildings and utilities. Sarasota County has nine impact fees, and the County Commission is looking to allow exceptions for affordable housing for three of these fees: the mobility fee for transportation, the library fee and the park fee. The commission recommended that the mobility, library and park fees be completely waived when a developer or a nonprofit wants to build multi-family residential housing for households at or below the 60% area median income level. This translates to $51,780 for a family of four in the North Port-Sarasota-Bradenton metropolitan area. The board also recommended the three impact fees be reduced for the 80% to 120% area median income level, but in a tiered way. In other words, the fees for multi-family housing at the 80% AMI level would be reduced by a higher percentage than the fees for housing at the 120% level. The tiered system has yet to be developed. In the Sarasota metro area, the 80% AMI level is $69,040 a year for a family of four, and the 120% AMI level is $103,560 a year. Commissioners didn’t mention the 60% to 80% AMI level, but the county is planning to reduce the fees for that level as well, according to Matt Osterhoudt, the director of the county’s Planning and Development Services department. There’s more on this story here:

County Considers Impact Fees

CASEY KEY HOPES TO SAVE THEIR BEACHES

Connie Davis remembers when her dog would run long distances on Casey Key’s beaches. “It was like a superhighway,” she said. But erosion has since eaten away at the sands of Casey Key, and her beach is much narrower than it used to be.

“It’s dramatically different,” said Davis, who moved to the barrier island in the early 2000s. In response, Davis’ neighborhood association – the Casey Key Association – is devising a plan to address the island’s erosion, which ranges from moderate to severe. The association’s plan involves adding sand and installing erosion control structures in the water, a project an engineering firm estimates would cost between $40 and $50 million. The big issue is where the money would come from to pay for the work. The Casey Key Association hopes to tap into federal, state and local money. But the funding options are limited, as the project involves beaches that, in many cases, lack public access. Much of the wealthy island’s beach terrain belongs to homeowners, who have chosen to retire to Casey Key or to live there as working professionals. The southern part of the island is home to two public beaches, but they don’t need renourishment. As a result, the project wouldn’t qualify for local tourism tax funds or for the state of Florida’s Beaches Funding Program, which require public access to get taxpayer assistance, according to a county document.

This dilemma isn’t unique to Casey Key – other coastal communities in Florida also have had to figure out how to pay for the costly replenishment of their beaches that lack public access. But more and more communities are likely going to face this problem, as rising sea levels will accelerate beach erosion, experts say. Please click on the link for more: Casey Key Residents Hope To Save Their Beaches

ANOTHER HOTEL FOR SIESTA KEY?

Dave Balot knew he would likely hear from many people who do not approve of his proposed 112-room hotel on Siesta Key recently. But he said he still believes what he wants to build will be a plus for Siesta Key and he wants to be a good neighbor, something he says is demonstrated by the numerous meetings he’s held leading up to the recent community workshop. Also, he argues, it could be much worse. He’s proposing far fewer rooms on his 2.15-acre parcel on Midnight Pass Road than he would likely be entitled to build, given that the Sarasota County Commission removed a hard cap on the number of hotel rooms allowed on an acre of property last year while approving two other Siesta Key hotel projects. “The developers think I’m insane because right now they think there’s unlimited density,” he told the crowd of about 100 people during the workshop, alluding to the potential for 250 or 300 rooms. “… I will be living on the key and I want to be able to show my face around and not feel like somebody that’s done something inappropriate for the key.” Balot fielded questions from community and neighborhood groups for more than an additional hour past the scheduled conclusion of the meeting.

Many focused on increased traffic the hotel could bring to a busy stretch that they argue will also be hampered by a county decision that will replace a stoplight with a traffic circle in the future. While Balot’s hotel proposal includes fewer rooms per acre than the two county commissioners accepted last year, residents were lukewarm about the idea of the third hotel project in less than a year on the key.

There’s more on this story: Another Hotel For Siesta Key?

SOLAR STORAGE

A key to the future of Florida’s electric grid is a device that could be confused for a computer server. This apparatus is actually a battery module. By themselves, each of the components is as powerful as 2,000 iPhone batteries. But together, as a collection of tens of thousands of modules, they make up what is the world’s largest solar battery storage facility owned by the state’s largest utility, Florida Power & Light. FPL’s Manatee Energy Storage Center is a cutting-edge solar energy technology in an evolving pastoral setting in fast-growing Southwest Florida.

At night or when there is thick cloud cover overhead, energy from the sun captured by the utility’s nearby solar panel field can be stored for later use, further reducing the need to rely on fossil fuels and allowing excess renewable energy generated not to go to waste. Battery storage can fill electric solar gap on cloudy days, at night

Much like a rooftop solar contractor might advise a homeowner to install a battery pack in tandem with their solar system, battery storage is becoming an integral piece of large-scale renewable energy investments.“I think it’s safe to say that storage is a necessary component as we evolve to more intermittent resources,” said Bryan Jacob, the solar program director for the nonprofit Southern Alliance for Clean Energy. Battery storage can help bridge the gap between energy resources at the times of day when solar power would come online and offline, Jacob said, or it can serve as the boost needed during spikes in usage, such as when people return home after work. Click here for more: Solar Storage

STRONG RECOVERY

Sarasota-Bradenton’s economic recovery from COVID-19 has been the strongest of any mid-sized metro area in the U.S., and local stakeholders are ready to make the most of it. According to an analysis of U.S. Bureau of Labor Statistics data by Alabama-based Filterbuy, employment in the North Port-Sarasota-Bradenton metropolitan area grew by 7.1% between March 2020 and March 2022, the largest growth in employment of any mid-sized market in the U.S. The local economy has ricocheted significantly since the pandemic hit Southwest Florida more than two years ago. In April 2020, the first full month of COVID-related business shutdowns, Sarasota-Manatee area employment dropped to 286,663, national data show. Since then, however, job growth has rebounded significantly; total employment this past April was 381,592. Lisa Krouse, president and CEO of the Economic Development Corp. of Sarasota County, said there’s been a lot of interest in bringing new businesses to Sarasota. This shift began after the pandemic, but really picked up about a year ago. Krouse, who joined the EDC last year after previous chief executive Dave Bullock retired in June 2021, said that many people who had Sarasota on their radar have started to take steps toward relocating offices here. The EDC is in talks with about 72 companies with “demonstrated interest” in expanding existing operations in Sarasota, Krouse said, including 48 from out of state that are seriously considering relocating to the area. “We’ve seen just tremendous interest from the business community,” Krouse said. “The EDC has never been busier in our entire history.” Click here for more: Strong Recovery

PLAYERS & BAY PARK EYE AUDITORIUM

For years, the historic Sarasota Municipal Auditorium has been an underutilized building that cost the city of Sarasota tens of thousands of dollars in subsidies each year even as the public flocked to everything from stamp and coin shows to luncheons, galas and the annual Atomic Bazaar. Now, a variety of non-profits are making pitches to use or take over operations at the 1938 building and Sarasota city commissioners are asking some of them to work together to create a plan for managing, renting and improving the facility. The Players Centre for Performing Arts, the community theater company that recently dropped plans to build a new theater complex in Lakewood Ranch, proposed leasing the facility for about $100 a year and said it would spend $6 million to $9 million to turn it into a theater with a stage and flexible seating area that could be folded away to make room for rental events. Commissioner Hagen Brody had initially encouraged the 92-year-old theater company to consider the space to keep the company in the downtown core. The auditorium is across U.S. 41 from the Players’ former home, which was sold in 2018 for about $9.5 million. That building was torn down last year. But the theater has competition. Paul Ratner, managing director of the Sarasota Film Festival, which has screened movies and held other events at the auditorium for the last two years, said his organization would like to use the facility to expand its year-round program of screenings and educational offerings. And leaders of the Bay Park Conservancy, which is overseeing creation of a 53-acre park along the Sarasota Bayfront, reminded commissioners they have a management agreement with the city that covers programming and operations of the auditorium. Recently, commissioners asked leaders of the Bay Park Conservancy and Players Centre to work with city staff to come up with an agreement that will work for them, and possibly include the Sarasota Film Festival. There’s more to read here: Players & Bay Park Eye Auditorium Plans

EPA GRANTS PERMIT FOR AQUACULTURE

On June 10, the Region 4 staff of the Environmental Protection Agency (EPA) announced that it had decided to issue the final permit to a Hawaii-based firm, Ocean Era, for a pilot “fish farm” project called Velella Epsilon, which would be located about 45 miles off the Sarasota County coast. The National Pollutant Discharge Elimination System (NPDES) permit would allow wastewater from the aquaculture facility to flow into the Gulf of Mexico. That permit would be in effect from July 8, 2022 until July 7, 2027, the EPA document shows. The fact sheet that the EPA released in conjunction with its announcement explains that the Velella Epsilon project will be a “ ‘net-pen’ aquatic animal production facility” with 20,000 fish “reared for approximately 12 months. The estimated fish size is approximately 4.4 pounds …” Factoring in a 90% survival rate, the fact sheet adds, the “total annual harvest weight is estimated to be less than 80,000 [pounds] … The maximum amount of feed is estimated to be 27,268 [pounds per month].” The fact sheet also points out, “Aquaculture facilities produce and discharge wastes (excess fish feed and fecal material) that contain pollutants, which are defined as including solid waste, biological materials, and industrial waste.” Thus, companies proposing operations such as the Velella Epsilon have to obtain NPDES permits. The Ocean Era net-pen, made of a copper alloy, would be 17 meters in diameter and 7 meters tall; it would be submerged to a depth of approximately 130 feet. “The cage design is flexible and self-adjusts to suit the constantly changing wave and current conditions,” the fact sheet adds. “When a storm approaches the area,” the fact sheet continues, “the entire cage array can be submerged by using a valve to flood the flotation system with water. A buoy remains on the surface, marking the net-pen’s position and supporting the air hose.” There’s more on this story here: EPA Grants Aquaculture Permit

RIDE THE BREEZE

Sarasota County residents and visitors aren’t going to see the acronym SCAT on county buses for long. Instead, they’ll observe a new name for the county’s transit system – Breeze. That’s because Sarasota County has decided to rebrand the system. SCAT recently launched a new service, OnDemand, which picks people up at their homes or other locations and takes them where they need to go. In light of this new service, the county is seeking a “more modern and cohesive approach to branding and marketing” for the entire transit system, said SCAT director Jane Grogg. County commissioners voted unanimously on June 7 to rename SCAT Breeze. County officials did not indicate how long the change would take. County staff worked with marketing consultants on potential new names for SCAT – which stands for Sarasota County Area Transit – and produced four options for the County Commission to consider. The first was SaGo, which is pronounced “Say Go” and correlates with the county’s name, according to SCAT director Jane Grogg. The second was Surf, reflecting the county’s coastal location. The third option was Mobi, relating to the product the county is offering, which is the transit system. The final option was Breeze, relating to the county’s pleasant weather and implying that it is easy to use the transit system. It is also a name the county already uses, as the streetcar on Siesta Key is known as the Siesta Key Breeze Trolley. Commissioners preferred Breeze. If you’re interested in reading more, then click here: So Long SCAT

ANOTHER MALL SOLD

Benderson Development Co., the Manatee County-based company behind Sarasota’s University Town Center, said that it has purchased another local mall – the Crossings at Siesta Key. Benderson, which already owned the former Dillard’s box at the mall where Aldi and Esporta Fitness currently operate, said it now owns the remainder of the partially enclosed regional mall, a purchase that includes 439,958 square feet of space. The sale price was $25.1 million. The property, on 26.97 acres at U.S. 41 and Bee Ridge Road, includes anchor department store Macy’s, CMX CineBistro, the restaurant Connors Steak & Seafood, plus interior tenants like Talbots, LensCrafters, Loft, Chico’s, Cali Day Spa and Art Avenue.

The Crossings at Siesta Key has been struggling in recent years, most notably when Benderson’s other mall property at University Town Center opened in 2014. Back then, when it was called Southgate Mall, it lost Dillard’s and Saks Fifth Avenue, and interior tenants including Victoria’s Secret, Pottery Barn, Williams-Sonoma, White House Black Market and J.Jill have been slowly peeling off since. Shaun Benderson of Benderson Development said the company moved quickly on the opportunity to purchase the mall. No definite plans have been made yet, he said, but the result will be “something we all can be proud of.” “We believe in the future of Sarasota. Our company is based here and comprised of many families who live in the area, so we are passionate advocates of fostering the vibrant, dynamic community Sarasota is becoming,” Benderson said in an emailed statement. “As our company is able to acquire and redevelop aged but important commercial properties in the community, it’s an opportunity for our team to work on something they are very passionate about. It’s why we have focused so much energy on distressed centers throughout Sarasota County.” Click here to read more on this story: Another Mall Sold