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					Ocala/Marion County, Florida
       Business Park


      Feasibility Study


       December 2006
        Ocala/Marion County, Florida Business Park
                    Feasibility Study
                                   Table of Contents

Section                                                                    Page

Part A – Comparative Site Analysis
Introduction                                                               A   -1
Sites Under Consideration                                                  A   -2
Site Information                                                           A   -3
        1. County Route 318                                                A   -3
        2. State Route 326 - North                                         A   -6
        3. State Route 326 - South                                         A   -9
        4. On Top of the World                                             A   - 16
        5. McGinley                                                        A   - 16
        6. Marion Oaks                                                     A   - 19
        7. County Route 484 Section 7                                      A   - 22
        8. Heritage Estates                                                A   - 25
Summary Comments                                                           A   - 28
Site Prioritization                                                        A   – 31
Appendix A-1 – Site Evaluation Form

Part B – Market Study
Introduction                                                               B-1
Real Estate Demand Data                                                    B-3
       Marion County Activity                                              B-3
       Real Estate Needs of Marion County Businesses                       B - 13
       Regional Activity                                                   B - 15
       Summary                                                             B - 20
Real Estate Supply Data                                                    B - 21
       Marion County Supply – Land Availability                            B - 21
       Marion County Supply – Building Availability                        B - 26
       Regional Supply                                                     B - 29
       Other Competition                                                   B - 35
Conclusions and Recommendations                                            B - 38
Appendix B-1 – Space Needs Survey of Marion County Businesses

Part C – Impact Analysis
Summary of 10 Year Development and Benefits                                C-1
Introduction                                                               C-2
Assumptions                                                                C-2
Benefits From New Business Park Development                                C-3
    1. Land Sale Revenue                                                   C-3
    2. Building Construction                                               C-3
    3. Construction Value                                                  C-4
    4. Taxes Paid to the County                                            C-4
    5. Taxes Paid to the City                                              C-5
    6. Taxes Paid to the School Board                                      C-5
______________________________________________________________________________
Garnet Consulting Services, Inc.                                              Phone and Fax:
157 Park Road                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park Feasibility Study                                          ii
Table of Contents
______________________________________________________________________________

Section                                                                       Page

Part C – Impact Analysis
   7. Job Creation                                                            C-6
   8. Wages Paid                                                              C-6
   9. Other Economic Benefits                                                 C-7
Associated Costs                                                              C-8
Summary                                                                       C-9
Exhibit 1 – Ocala/Marion County Business Park 10 Year Economic Impact Projections
        Calculations                                                          C - 10
        Assumptions                                                           C - 12

Part D – Types of EDO Implementation Assistance
Introduction                                                                  D   -   1
Providing Land for Development                                                D   -   2
Permits and Approvals                                                         D   -   3
Infrastructure and Site Planning, Design and Development                      D   -   4
Project Financing                                                             D   -   5
Incentives                                                                    D   -   5
Special Features                                                              D   -   6
Marketing                                                                     D   -   6
Other Forms of Assistance                                                     D   -   6
Examples                                                                      D   -   7
Summary                                                                       D   -   10




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida
       Business Park


         Part A
 Comparative Site Analysis


        August 2006
        Ocala/Marion County, Florida Business Park
            Part A - Comparative Site Analysis


                                   Table of Contents

Section                                                            Page

Introduction                                                        A-1

Sites Under Consideration                                           A-2

Site Information                                                    A-3

         9. County Route 318                                        A   -   3
         10. State Route 326 - North                                A   -   6
         11. State Route 326 - South                                A   -   9
         12. On Top of the World                                    A   -   16
         13. McGinley                                               A   -   16
         14. Marion Oaks                                            A   -   19
         15. County Route 484 Section 7                             A   -   22
         16. Heritage Estates                                       A   -   25

Summary Comments                                                    A - 28

Site Prioritization                                                 A – 31

Appendix A – Site Evaluation Form




______________________________________________________________________________
Garnet Consulting Services, Inc.                                       Phone and Fax:
157 Park Road                                                            860-379-7449
Pleasant Valley, CT 06063-4119                           E-mail: mwaterhouse@snet.net
        Ocala/Marion County, Florida Business Park
            Part A - Comparative Site Analysis

Introduction

The Ocala/Marion County Economic Development Corporation (the EDC) is evaluating
the potential for development of one or more new business parks somewhere in Marion
County. Such development is intended to address both:

         The immediate need for additional sites in master-planned environments that
         meet the needs of prospect businesses; and

         The long-term need for an adequate inventory of developable sites.

As part of its deliberations, the EDC has identified 8 locations that appear to have above
average development potential. These 8 locations were selected from a longer list of
possibilities identified by EDC staff through both map and field investigation; 35 sites
were included in the initial compilation including both greenfield (undeveloped) sites
and existing business and industrial parks.

Primary criteria for continuing consideration as a possible location for a new business
park included:

         Adequate size to provide a reasonable inventory of land for future development

         Existing or potential zoning and land use suitable for development of a business
         park

         Reasonable proximity to an access point to I-75

         Availability of primary utility services (electric power and public water and
         sewer). Availability of natural gas was not a major consideration due to limited
         use in the area. It was assumed that advanced telecommunications services
         could be provided to any area if future demand justified it.

This report provides commentary on the 8 sites under consideration based on both
investigation from available public records of site characteristics that might impact
developability and field inspection of each site. During field inspection, a standardized
data collection form (see Appendix A) was used to assure comparability of consideration
for all sites. Not all information was available for every site.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                           August 2006
Comparative Site Analysis                                                                              Page I - 2
______________________________________________________________________________
Sites Under Consideration

The following 8 sites are the subject of this report (names have been chosen to indicate
either a general location or primary property owner) and are shown in Figure 1 below:

                                   Site #               Site Name
                                      1         County Route 318
                                      2         State Route 326 - North
                                      3         State Route 326 - South
                                      4         On Top of the World
                                      5         McGinley
                                      6         Marion Oaks
                                      7         County Route 484 Section 7
                                      8         Heritage Estates

                                              Figure 1 – Site Map




               County Route 318




                                                 State Route 326 - North


                                                     State Route 326 - South




                On Top of the World



                                                   Marion Oaks
                                   McGinley

                                                                 County Route 484 Sec. 7

                            Heritage Estates




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                                   Phone and Fax:
157 Park Road                                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                             Page I - 3
______________________________________________________________________________

Site Information

This section provides a brief description of the 8 sites under consideration, focusing on
site characteristics that would appeal to or discourage a business prospect, and
characteristics that impact developability of the site. Information reported below is
from a variety of sources including the EDC, Marion County Utility Departments, the
Marion County Interactive Mapping system, field investigation, and for some properties,
interviews with property owners.

All boundaries shown on the Site Maps below are approximate and intended to show
the general location and configuration of the site. The arrow (   ) in each Site Map
indicates the approximate location and direction of the Representative Photos for each
site.

Site Number and Name 1. County Route (CR) 318
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                     Page I - 4
______________________________________________________________________________

                                                 Site Map




                                                            1. CR 318




Site Size                          This is a general area with no predetermined size. For the
                                   purposes of this study, an area of approximately 6 full sections
                                   (3840 acres) was investigated, of which 2100± may be suitable.
General Location                   The study area is associated with I-75 at its intersection with
                                   County Route 318. The study area comprises all 4 quadrants of the
                                   I-75/CR 318 intersection. The area is approximately 15 miles north
                                   of the City of Ocala and 5 miles south of the Alachua County
                                   border.
Accessibility, Visibility          The area is very accessible off I-75, and portions of the area closest
and Appearance                     to I-75 are visible from it. Much of the area is also visible from CR
                                   318. The appearance is predominantly open farm land, with some
                                   existing uses (an ice cream plant, truck stop, RV park, homes)
                                   mixed in. U.S. 441 is approximately 2 miles to the east of I-75.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                     Page I - 5
______________________________________________________________________________
Neighborhood                       As noted above, while the area is largely undeveloped farm land,
Characteristics and                there are existing uses (both business and residential) scattered
Appearance                         throughout. In general, it is a reasonably attractive area.
Zoning and Land Use                Both the Zoning and Land Use are predominantly Agricultural. Both
                                   will need to be amended if this area is to be developed as a
                                   business park. There is a small Business zoned area (B-2 and B-3)
                                   associated with the I-75/CR 318 interchange.
Physical Characteristics           A. Topography – The area is generally flat with gently rolling
                                        terrain.

                                   B. Wetlands and Watercourses – There are a few scattered
                                      streams, ponds and a stormwater management area associated
                                      with the truck stop.

                                   C. Vegetation – The area is a mix of open farm fields and lightly
                                      wooded areas.

                                   D. Observed Property Crossings – There are several minor streets
                                       in the area which may have potential as access to development.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – Development of this area at this time would
                                       likely require on site wells or extension of the County water
                                       main approximately 10 miles.

                                   B. Sanitary Sewer – There is no public sewer service in this area at
                                      this time. Development of a package treatment plant to serve a
                                      business park would likely be required if a suitable disposal area
                                      can be identified.

                                   C. Electric Power – Progress Energy supplies this part of the
                                      County and could be expected to provide necessary electric
                                      service for a new business park if demand and revenue can be
                                      demonstrated.
Other Noteworthy                      This area is comprised of numerous parcels, some with common
Features or                           ownership. Interest of property owners in making this land
Observations                          available for development of a business park is not known at
                                      this time.
                                      This area is about equidistant to both Ocala and Gainesville, and
                                      offers the best proximity to the University of Florida, for those
                                      companies needing access to University resources.
                                      There may be resident opposition to developing this largely
                                      rural area as a large scale business park.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                             Page I - 6
______________________________________________________________________________

Site Number and Name 2. State Route (SR) 326 - North
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                     Page I - 7
______________________________________________________________________________

                                                 Site Map




                      2. SR 326 - North




Site Size                          250 - 320± acres with multiple owners.
General Location                   This area is the northeast quadrant of the I-75 intersection with SR
                                   326. It is approximately 5 miles north of the City of Ocala.
Accessibility, Visibility          This area may be accessed from either SR 326 or CR 25A (NW
and Appearance                     Gainesville Road). It has excellent access to I-75 with
                                   approximately a mile of frontage on the Interstate. Visibility from I-
                                   75 is currently hampered in places by wooded areas, but this is
                                   easily corrected. The site also has a CSX rail line passing through
                                   it.
Neighborhood                       The neighborhood is a mix of existing businesses of a variety of
Characteristics and                types including a race track and lime rock pits, an elementary
Appearance                         school and numerous small homes that reportedly have been
                                   committed for sale.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                     Page I - 8
______________________________________________________________________________
Zoning and Land Use                The bulk of the area is zoned for agriculture, with several small
                                   business districts (B-3, B-4, B-5) in the southern half. The land use
                                   is a mix including Specialized Commerce District for the southern
                                   half of the site and along NW Gainesville Road. Both Zoning and
                                   Land Use must be changed for development of a business park.
Physical Characteristics           A. Topography – The area is generally flat with gently rolling
                                       terrain.

                                   B. Wetlands and Watercourses – None were observed although it
                                      is likely that there may be some hidden in wooded areas
                                      associated with the area’s normal drainage patterns.

                                   C. Vegetation – The area is a mix of open fields and wooded areas,
                                      some fairly thick. These areas may either add to site
                                      preparation costs or possibly could be used as part of natural
                                      landscaping.

                                   D. Observed Property Crossings – Several small streets are shown
                                       on maps of the area. Absent dwellings or other uses needing
                                       this access, their elimination should not be a problem. The CSX
                                       rail line, running generally north-south, segments the area into
                                       approximately 1/3 east of the rail line and 2/3 west of it; both
                                       segments have adequate depth for creation of larger lots.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – A distribution line from the Pilot Oil Water
                                       Treatment Plant would need extension approximately ½ mile to
                                       serve this area. There is an existing County well on the south
                                       side of SR 326 that may have additional production capacity.

                                   B. Sanitary Sewer – There is no public sewer service in this area; a
                                      package treatment plant would be necessary if a suitable
                                      disposal area can be identified.

                                   C. Electric Power – Progress Energy serves this portion of the
                                      County. An electric substation is located on SR 326 just east of
                                      NW Gainesville Road. Progress Energy could be expected to
                                      provide necessary electric service for a new business park if
                                      demand and revenue can be demonstrated.
Other Noteworthy                      There are at least 18 owners in the area; interest of property
Features or                           owners in making this land available for development of a
Observations                          business park is not known at this time, although the EDC has
                                      been told by a real estate broker that this is not a problem.
                                      This is the only site studied that has available rail service.


______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                             Page I - 9
______________________________________________________________________________

Site Number and Name 3. State Route (SR) 326 South
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                 August 2006
Comparative Site Analysis                                                                   Page I - 10
______________________________________________________________________________

                                                  Site Map




                                             3. SR 326 -
                                                South




Site Size                          This is an area containing 1400 acres or more. The northern part
                                   of the area (between NW 63rd Street and SR 326) is comprised of
                                   numerous small parcels. The portion of the area south of NW 63rd
                                   Street is comprised of generally larger tracts; the four primary
                                   parcels are Holiday Farms (150± acres), Leroy Baldwin (500+
                                   Acres), Norman Clifton (150± acres) and Frank Stronach (600+
                                   acres).
General Location                   This area is the southeast quadrant of the I-75 intersection with SR
                                   326. The southern portion of the area abuts the City of Ocala. The
                                   area is bounded by I-75 on the west, SR 326 on the north, the City
                                   of Ocala on the south, CR 25A (NW 24th Avenue) along the top half
                                   of the eastern side and NW 27th Avenue along the bottom half of
                                   the eastern side.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                         Phone and Fax:
157 Park Road                                                                              860-379-7449
Pleasant Valley, CT 06063-4119                                             E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                   August 2006
Comparative Site Analysis                                                                     Page I - 11
______________________________________________________________________________
Accessibility, Visibility          The northern part of the area has good access from I-75 via SR
and Appearance                     326, but has the most small parcels and owners. The portion of the
                                   area south of NW 63rd Street is more difficult to access from I-75,
                                   requiring a 2± mile or more drive. Construction of a new exit
                                   midway between existing exits at SR 326 and US 27 would improve
                                   accessibility but add to project costs. The area has 3½ miles of
                                   frontage along I-75 and good visibility, particularly south of NW 63rd
                                   Street. The area is generally open farm fields with bands of trees
                                   separating fields; there is an area of old mining pits near I-75 in the
                                   southern third of the area. A portion of this area is used for disposal
                                   of construction and demolition debris.
Neighborhood                       The surrounding area is a mix of commercial, industrial and
Characteristics and                residential uses (including some small trailer parks). Depending on
Appearance                         the access route, neighborhood appearance could detract from a
                                   new business park.
Zoning and Land Use                North of NW 63rd Street, the area has 2 portions zoned for business
                                   (B-5) with the bulk of this section zoned Agricultural. Most of the
                                   area south of NW 63rd Street is zoned Agricultural, with 2 small
                                   portions zoned Residential (R-1 and R-4). The Land Use is shown as
                                   a mix of Specialized Commerce District, Industrial, Urban
                                   Commerce District, and Low Density Residential uses. Both zoning
                                   and Land Use will need to be amended if this area is to be
                                   developed as a business park.
Physical Characteristics           A. Topography – The area is generally flat with gently rolling
                                       terrain. There is more significant topography associated with
                                       the mining area in the southern third of the area.

                                   B. Wetlands and Watercourses – No major wetland areas or
                                      watercourses were noted, although it is expected there are
                                      some as a result of natural drainage of the area.

                                   C. Vegetation – The majority of the area is open fields with small
                                      wooded areas separating fields. There are some more heavily
                                      wooded areas north of NW 63rd Street.

                                   D. Observed Property Crossings – Other than some private roads,
                                       no other crossings were noted. Additional research is necessary
                                       on rights-or-way or easements that may exist.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – There is no public water in the area; however,
                                       the southern boundary of the area is adjacent to the Ocala City
                                       Limits. The City has water service in NW 27th Avenue, which
                                       might be extended, or a 2½ mile water main extension to the
                                       County’s Pilot Oil Water Treatment Plant may be possible.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                           Phone and Fax:
157 Park Road                                                                                860-379-7449
Pleasant Valley, CT 06063-4119                                               E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                   August 2006
Comparative Site Analysis                                                                     Page I - 12
______________________________________________________________________________
                                   B. Sanitary Sewer – There is no public sewer in the area; however,
                                      the southern boundary of the area is adjacent to the Ocala City
                                      Limits. The City has sewer service in NW 27th Avenue, which
                                      might be extended. Otherwise, a package treatment plant will
                                      be necessary, presuming a suitable disposal area can be found
                                      on or near the area.

                                   C. Electric Power – Progress Energy serves this portion of the
                                      County. An electric substation is located on SR 326 just east of
                                      NW Gainesville Road. Progress Energy could be expected to
                                      provide necessary electric service for a new business park if
                                      demand and revenue can be demonstrated. If this area is
                                      annexed into the City of Ocala, which is just to the south, the
                                      City’s electric utility could also serve this property.
Other Noteworthy                      It may be difficult to obtain the larger parcels in this area due to
Features or                           other plans of the owners. A portion of the Stronach property
Observations                          (600+ acres) is the subject of a proposed horse track, hotel,
                                      civic and conference center, which has not been able to obtain
                                      necessary approvals from the state. The other larger tracts
                                      were all approached when Sysco was looking in the area, but
                                      the owners were not interested.
                                      Because this site is just north of the Ocala city limits, it can
                                      easily be annexed into the City.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                           Phone and Fax:
157 Park Road                                                                                860-379-7449
Pleasant Valley, CT 06063-4119                                               E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 13
______________________________________________________________________________

Site Number and Name 4. On Top of the World
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                August 2006
Comparative Site Analysis                                                                  Page I - 14
______________________________________________________________________________


                                                   Site Map




                                             4. On Top of the World




Site Size                          480± acres. This site is approximately ¾ of Section 32; the
                                   southeast quarter of this Section is not included.
General Location                   This tract is generally bounded by SW 60th Avenue on the east, SW
                                   38th Street on the north, SW 52nd Street on the south, and other
                                   land of the On Top of the World development on the west. It is
                                   adjacent to the Ocala city limits and is immediately south of the
                                   Ocala Municipal Airport.
Accessibility, Visibility          The site is approximately 2½ miles from I-75 Exit 350. 60th Avenue
and Appearance                     is being upgraded to a 4 lane road, which will improve access to I-
                                   75. 80th Avenue is already a 55 MPH roadway. The site has
                                   excellent visibility from the north, east and south. The appearance
                                   of the area is suitable for a business park.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                        Phone and Fax:
157 Park Road                                                                             860-379-7449
Pleasant Valley, CT 06063-4119                                            E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                   August 2006
Comparative Site Analysis                                                                     Page I - 15
______________________________________________________________________________
Neighborhood                       This site is at the northeast corner of the On Top of the World
Characteristics and                community. Since this portion of the community has not been
Appearance                         developed, its character is not yet established. However, it is likely
                                   that the developer will require high quality due to the impact on
                                   other portions of the development. To the north of the site is the
                                   Ocala Municipal Airport and its associated industrial park. There is
                                   also a park (the Ocala Regional Sportsplex) north of the site.
Zoning and Land Use                The zoning is Agricultural and future land use is shown as High
                                   Density Residential. Both will need to be changed for development
                                   of a business park.
Physical Characteristics           A. Topography – This entire area is very flat.

                                   B. Wetlands and Watercourses – None were noted from field
                                      inspection or County mapping.

                                   C. Vegetation – Aside from several small pockets of trees, the site
                                      is almost completely open farm fields.

                                   D. Observed Property Crossings – None were noted.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – The developer believes water service can be
                                       provided either from the Bay Laurel Service Area, or by the City
                                       of Ocala if this area is annexed.

                                   B. Sanitary Sewer – The developer believes sanitary sewer service
                                      can be provided either from the Bay Laurel Service Area, or by
                                      the City of Ocala if this area is annexed.

                                   C. Electric Power – SECO currently serves this area, but if it is
                                      annexed into the City of Ocala, the City’s electric utility could
                                      serve it. Either could be expected to supply energy services if
                                      demand and revenue from a new business park is
                                      demonstrated.
Other Noteworthy                      The developer of On Top of the World has expressed an interest
Features or                           in committing this area to development of a business park,
Observations                          recognizing that the economy of Marion County cannot be
                                      completely dependent on the elderly housing market.
                                      Because this site is just south of the Ocala city limits, it can
                                      easily be annexed into the City.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                           Phone and Fax:
157 Park Road                                                                                860-379-7449
Pleasant Valley, CT 06063-4119                                               E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 16
______________________________________________________________________________

Site Number and Name 5. McGinley
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                August 2006
Comparative Site Analysis                                                                  Page I - 17
______________________________________________________________________________

                                                Site Map




                                             5. McGinley




Site Size                          This property totals 1280± acres, of which approximately 320 are
                                   located north of County Route 484, with the remainder south of CR
                                   484.
General Location                   The site is located approximately 2½ miles west of the I-75
                                   interchange with County Route 484. It is approximately 11 miles
                                   south of the City of Ocala.
Accessibility, Visibility          The site is nearly completely open and highly visible from CR 484,
and Appearance                     and has a mile of frontage on this road. While easily developable,
                                   additional landscaping would be necessary to offset the current
                                   open farm fields, which establish the current appearance. CR 484
                                   is a 4 lane road to the site.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                        Phone and Fax:
157 Park Road                                                                             860-379-7449
Pleasant Valley, CT 06063-4119                                            E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                    Page I - 18
______________________________________________________________________________

Neighborhood                       This property is surrounded by the master-planned and partially
Characteristics and                developed Marion Oaks community, which is primarily residential,
Appearance                         with support commercial and recreational uses, in particular, golf
                                   courses. It is an attractive environment.
Zoning and Land Use                Both the Zoning and Land Use are Agricultural. Both will need to
                                   be amended if this area is to be developed as a business park.
Physical Characteristics           A. Topography – This entire area is very flat.

                                   B. Wetlands and Watercourses – None were noted from field
                                      inspection or County mapping.

                                   C. Vegetation – Aside from a few small bands of trees, the site is
                                      almost completely open farm fields.

                                   D. Observed Property Crossings – None were noted.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – The County’s Marion Oaks Water Treatment
                                       Plant supplies this area and has mains in very close proximity to
                                       this site.

                                   B. Sanitary Sewer – The County provides sewer service to Marion
                                      Oaks. A force main would need to be extended approximately 2
                                      miles from the site to the Marion Oaks Wastewater Treatment
                                      Plant.

                                   C. Electric Power – SECO supplies this portion of the County and
                                      can be expected to provide whatever electric service
                                      improvements are necessary to serve a new business park if
                                      demand and revenue can be demonstrated.
Other Noteworthy                      This is a family-owned tract that eliminates the necessity of
Features or                           negotiating with and purchasing land from multiple parties.
Observations                          The family’s representative has expressed preliminary interest in
                                      the possibility of developing a business park on a portion of this
                                      property.
                                      It is unlikely the portion of the site north of CR 484 will be
                                      available for development of a business park due to the
                                      preference to keep the private airport on the site operational.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 19
______________________________________________________________________________

Site Number and Name 6. Marion Oaks
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                   August 2006
Comparative Site Analysis                                                                     Page I - 20
______________________________________________________________________________

                                                 Site Map




                                              6. Marion Oaks




Site Size                          200± acres
General Location                   This site is the northwest quadrant of the I-75 interchange with
                                   County Route 484. The site is approximately 8 miles south of the
                                   City of Ocala.
Accessibility, Visibility          The site is adjacent to I-75 with the possibility of good visibility.
and Appearance                     The site is currently not well maintained, with piles of dumped
                                   garbage.
Neighborhood                       There is a small amount of commercial development along the CR
Characteristics and                484 frontage; this is expected to increase in the future. A portion
Appearance                         of the Marion Oaks residential community is immediately to the
                                   west. The area is generally attractive.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                                           Phone and Fax:
157 Park Road                                                                                860-379-7449
Pleasant Valley, CT 06063-4119                                               E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                    Page I - 21
______________________________________________________________________________

Zoning and Land Use                The southern half of the site is zoned for business (B-4) with a
                                   small area of P-RV (an existing RV park); the northern half is zoned
                                   for Agriculture with a small area of Light Industrial (M-1) which has
                                   not yet been developed. The future land use is a mix of Specialized
                                   Commerce District and other uses. Both zoning and land use will
                                   have to be amended if this area is to be developed as a business
                                   park.
Physical Characteristics           A. Topography – The entire site is flat.

                                   B. Wetlands and Watercourses – None were noted from field
                                      inspection of County maps. There may be some hidden by
                                      vegetation.

                                   C. Vegetation – The northern half of the site is lightly wooded.
                                      The southern half is a mix of open fields and light woods.

                                   D. Observed Property Crossings – There are existing streets in the
                                       M-1 and P-RV areas.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – The County’s Summer Glen Water Treatment
                                       Plant service territory borders this site to the southeast.

                                   B. Sanitary Sewer – The County’s Summer Glen Wastewater
                                      Treatment Plant service territory borders this site to the
                                      southeast.

                                   C. Electric Power – SECO serves this portion of the County and
                                      could be expected to provide necessary electric service for a
                                      new business park if demand and revenue can be
                                      demonstrated.
Other Noteworthy                      The site is a combination of the Marion Oaks Commerce Center
Features or                           (a portion of the western part of the site) owned by Deltona
Observations                          Corporation and several large parcels between the Commerce
                                      Center and I-75.
                                      This area was considered as a location for a Wal-Mart
                                      distribution center, but one of the key owners was not
                                      interested. Since that time, a change in ownership indicates
                                      this area may be available.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 22
______________________________________________________________________________

Site Number and Name 7. County Route (CR) 484 Section 7
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                 August 2006
Comparative Site Analysis                                                                   Page I - 23
______________________________________________________________________________

                                                  Site Map




                                             7. CR 484
                                             Section 7




Site Size                          210± acres.
General Location                   This tract is in the south-central part of the County, in the
                                   southeast quadrant of the I-75 / County Route 484 interchange. It
                                   is approximately 9 miles from the City of Ocala.
Accessibility, Visibility          This site is ¼ mile east of I-75 on CR 484. It has good visibility
and Appearance                     from both CR 484 along its northern boundary and CR 475A along
                                   its western boundary.
Neighborhood                       A 10 acre lot at the northwest corner is being developed for a
Characteristics and                90,000 square foot retail center including a grocery store. The area
Appearance                         is largely undeveloped at the present time.
Zoning and Land Use                Both the Zoning and Land Use are Agricultural. Both will need to
                                   be amended if this area is to be developed as a business park.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                         Phone and Fax:
157 Park Road                                                                              860-379-7449
Pleasant Valley, CT 06063-4119                                             E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                 August 2006
Comparative Site Analysis                                                                   Page I - 24
______________________________________________________________________________

Physical Characteristics           A. Topography – This entire area is very flat.

                                   B. Wetlands and Watercourses – None were noted from field
                                      inspection or County mapping.

                                   C. Vegetation – There are scattered small trees and groves with
                                      one more heavily wooded area in the southeast corner of the
                                      site. Other than these, the site is almost completely open farm
                                      fields with the remains of an old track.

                                   D. Observed Property Crossings – Other than some old farm roads,
                                       none were noted.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – This area can be served by extending the County
                                       water main approximately 500 feet in the ROW at CR 484.

                                   B. Sanitary Sewer – This area can be served by extending the
                                      County force main approximately 1000 feet in the ROW at CR
                                      484.

                                   C. Electric Power – SECO serves this portion of the County and
                                      could be expected to provide necessary electric service for a
                                      new business park if demand and revenue can be
                                      demonstrated.
Other Noteworthy                      The entire I-75/CR 484 intersection is planned for development
Features or                           as a Specialized Commerce District. Combined with the planned
Observations                          Commercial use of the northwest corner of this area, it is likely
                                      that there will be a heavy retail influence. Given the demand
                                      for sites for this type of use in this part of the County, it is
                                      possible that this site will already be committed before the
                                      City/County/EDC are ready to move forward with development
                                      of a business park.
                                      There are several owners of this area, with one owner
                                      controlling 127 acres.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                         Phone and Fax:
157 Park Road                                                                              860-379-7449
Pleasant Valley, CT 06063-4119                                             E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 25
______________________________________________________________________________

Site Number and Name 8. Heritage Estates
                                             Representative Photo




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  August 2006
Comparative Site Analysis                                                                    Page I - 26
______________________________________________________________________________

                                                Site Map




                                         8. Heritage Estates




Site Size                          803± acres. The site is irregularly shaped with some out-parcels.
General Location                   In south-central Marion County, adjacent to and west of I-75 and
                                   on the Sumter County border. It is approximately 12 miles south
                                   of the City of Ocala.
Accessibility, Visibility          Access is via a private road running approximately 3 miles parallel
and Appearance                     with I-75 and connecting to County Route 484 to the north. The
                                   site is generally open farm land with good appearance and has
                                   good visibility from I-75. Desirability of this area as a business
                                   park would be enhanced by construction of a new I-75
                                   interchange to serve this area.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                          Phone and Fax:
157 Park Road                                                                               860-379-7449
Pleasant Valley, CT 06063-4119                                              E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                 August 2006
Comparative Site Analysis                                                                   Page I - 27
______________________________________________________________________________

Neighborhood                       This is an isolated tract that is not impacted by other nearby
Characteristics and                properties. Access is through a small commercial area associated
Appearance                         with the I-75 exit onto CR 484. The Marion Oaks community is
                                   immediately to the west, but separated from this area. Other uses
                                   in the area include a vacant horse farm with a track, the Bent Oak
                                   Farm Nursery, and the Summer Glen golf course community.
Zoning and Land Use                Both the Zoning and Land Use are Agricultural. Both will need to
                                   be amended if this area is to be developed as a business park.
Physical Characteristics           A. Topography – This entire area is very flat.

                                   B. Wetlands and Watercourses – Other than two large ponds,
                                      none were noted from field inspection or County mapping.

                                   C. Vegetation – There are small bands of trees associated with
                                      field edges and the existing ponds, some scattered trees and
                                      one wooded area in the southeast corner of the site. Other
                                      than these, the site is almost completely open farm fields.

                                   D. Observed Property Crossings – Other than the private road
                                       accessing the site and a small home shown under separate
                                       ownership in the middle of the site, none were noted.
Environmental                      No Environmentally Sensitive Overlay Zones or Conservation Areas
Limitations                        are shown in County mapping. No important historical,
                                   archeological or otherwise environmentally sensitive areas are
                                   known at this time. Additional research is necessary.
Utility Availability               A. Public Water – This area could be served by extending a main
                                       approximately 1 mile from the Summer Glen Water Treatment
                                       Plant.

                                   B. Sanitary Sewer – This area could be served by extending a
                                      force main approximately 1 mile from the Summer Glen
                                      Wastewater Treatment Plant.

                                   C. Electric Power – SECO supplies this portion of the County and
                                      can be expected to provide whatever electric service
                                      improvements are necessary to serve a new business park if
                                      demand and revenue can be demonstrated.
Other Noteworthy                      This area had been under consideration for housing
Features or                           development, but is reported to now be under consideration
Observations                          for industrial use.
                                      Improved access from I-75 is necessary to make this a highly
                                      marketable business park.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                         Phone and Fax:
157 Park Road                                                                              860-379-7449
Pleasant Valley, CT 06063-4119                                             E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                            August 2006
Comparative Site Analysis                                                              Page I - 28
______________________________________________________________________________

Summary Comments

We offer the following summary comments about each site reflecting:

         Desirability and marketability in terms of locational characteristics sought by
         typical industries

         Site and area characteristics that would enhance or impede developability

         Level of owner interest (when known)

         Other relevant factors that are site specific


1. County Route 318

         Lack of amenities and business services near this area will reduce desirability.

         Need to develop water and sewer services for this area will add to project costs.

         Proximity to Gainesville and the University of Florida will be a plus for some
         companies, but distance from Ocala will be a negative for others.

         No specific property has been identified; therefore owner interest in committing
         a site to development of a business park is unknown.

2. State Route 326 - North

         Necessity of negotiating with multiple owners to assemble enough land could
         complicate development of this site, although a real estate broker has
         represented to the EDC that this will not be a problem.

         Availability of rail service will be important if market study indicates substantial
         demand for rail served sites; otherwise this is a largely irrelevant site
         characteristic.

         Public water is available, but the need to construct a package treatment plant to
         handle sanitary waste will add to development costs of this area.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                    Phone and Fax:
157 Park Road                                                                         860-379-7449
Pleasant Valley, CT 06063-4119                                        E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                            August 2006
Comparative Site Analysis                                                              Page I - 29
______________________________________________________________________________
3. State Route 326 - South

         Ability to annex this area into the City of Ocala may increase the City’s interest in
         supporting and assisting development of a business park. Extension of City
         utilities may be possible.

         The major owners have been approached in the past about their willingness to
         sell and have not been interested. Nonetheless, this area would be an excellent
         location for one or more business parks and should be designated for that
         purpose in the future.

         The most desirable area (south of NW 63rd Street) is difficult to access from I-75.
         Unless a new interchange with I-75 is constructed (which may add substantially
         to the project cost), this detracts from marketability of the area.

4. On Top of the World

         Interest of owner in developing a business park is a plus. Ability to obtain an
         adequate amount of land from a single owner is a benefit.

         Ability to annex this area into the City of Ocala may increase the City’s interest in
         supporting and assisting development of a business park. Extension of City
         utilities may be possible.

         Utilities are reasonably available, reducing this aspect of project development
         costs.

         This site has less than ideal access to I-75, but it is reasonable, particularly as
         improvements to SW 60th Avenue are completed.

         Proximity to the Ocala Municipal Airport may be a plus for some companies.
         Since the land in the industrial park at the airport can only be leased, the ability
         to offer land for sale in this location would improve the area’s marketability.

5. McGinley

         Interest of owner in developing a business park is a plus. Ability to obtain an
         adequate amount of land from a single owner is a benefit.

         Distance from I-75 may limit interest from some businesses, although access to
         I-75 is from a relatively high-speed road.

         Distance from the City of Ocala may limit interest from some businesses.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                    Phone and Fax:
157 Park Road                                                                         860-379-7449
Pleasant Valley, CT 06063-4119                                        E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                           August 2006
Comparative Site Analysis                                                             Page I - 30
______________________________________________________________________________
      Utilities are reasonably available, reducing this aspect of project development
      costs.

6. Marion Oaks

         This area has excellent access to I-75.

         The area may be too small to meet the County’s available land needs for an
         extended period, but could be one of a series of new business parks.

         Utilities are available, reducing this aspect of project development costs.

         Because of its location and other development in the area, this land may have
         higher utility as a commercial/retail site, and land values may reflect this.

7. County Route 484 Section 7

         This area has excellent access to I-75.

         Utilities are available, reducing this aspect of project development costs.

         Because of its location and other development in the area, this land may have
         higher utility as a commercial/retail site, and land values may reflect this.

         The area may be too small to meet the County’s available land needs for an
         extended period. It is possible that some or all of this site will be committed to
         other projects before the City/County/EDC are ready to proceed with
         development of a business park.

8. Heritage Estates

         This area has poor access to I-75. Unless a new interchange with I-75 is
         constructed (which may add substantially to the project cost), this detracts from
         marketability of the area.

         Utilities are reasonably available, reducing this aspect of project development
         costs somewhat, but probably not as much as other sites.

         The ability to obtain an adequate amount of land from a single owner is a
         benefit.

         Distance from the City of Ocala may limit interest from some businesses.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                          August 2006
Comparative Site Analysis                                                            Page I - 31
______________________________________________________________________________
Site Prioritization

This prioritization does not imply that only one site should be developed. Marion
County and the City of Ocala’s economic development competitiveness would be best
served by development of at least two additional business parks to meet future needs.

1. On Top of the World – An adequately sized piece of land with available utilities
   offered by a willing seller or development partner makes this an ideal site. The
   opportunity for the City to annex this property increases the possibility that the City
   may participate in development of a business park.

2. McGinley – An adequately sized piece of land with available utilities offered by a
   willing seller or development partner makes this a close second to On Top of the
   World.

3. State Route 326 - North – A good central location with some utilities available
   and excellent access to I-75. If rail service is found to be a factor for a significant
   number of business prospects, this is the only site that has it.

4. County Route 318 – Excellent access to I-75, with the possibility of obtaining an
   adequately sized tract from a small number of owners. However, the lack of public
   water and sewer will add to development costs. This area will make more sense in
   the future as development of the northern portion of the County increases.

5. State Route 326 - South – Highly desirable land with excellent visibility from I-75,
   with the opportunity for the City to annex the area, thereby possibly increasing the
   City’s interest in participating in development of a business park. However, the
   current lack of interest by owners of the larger tracts of land, coupled with poor
   access from I-75 for the best land, reduces the marketability and increases
   development costs (if a new I-75 interchange is constructed) for this area.
   Nonetheless, this area would be an excellent location for one or more business parks
   and should be designated for that purpose in the future.

6. Heritage Estates – Has the advantages of an adequately sized land area with
   reasonably available utilities and excellent visibility from I-75, available from a single
   owner. Has the disadvantage of poor access from I-75 and the additional cost of
   constructing a new interchange from I-75.

7. (Tie) County Route 484 Section 7 and Marion Oaks – Both these sites have
   excellent access to I-75 and good utility availability, but may be too small to meet
   land inventory needs for an extended period, although either could be a portion of a
   multi-site development plan. More importantly, both are in the midst of an area that
   can be expected to have high demand as a commercial/retail location, which will
   result in higher land purchase costs than other sites.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
                              APPENDIX A-1 – SITE EVALUATION FORM
Site Name:                                           Community:
General Location:

           Characteristic                Strengths                Weaknesses   Rating
1. General Site Information
A. Current use(s)



B. Past use(s)



C. Appearance of site



D. Appearance & uses of
   surrounding area


E. Current zoning



F. Potential zoning
Appendix A-1 - Site Evaluation Form – Page 2
          Characteristic                       Strengths   Weaknesses   Rating
2. Location/Accessibility
A. Distance from major highway
   ______ miles from Interstate ___

   ______ miles from Route ______
B. Ease of access



C. Access points to local streets



D. Observed traffic or traffic counts



E. Visibility from major roadway(s)



F. Rail service



G. Other factors
Appendix A-1 - Site Evaluation Form – Page 3
          Characteristic                       Strengths   Weaknesses   Rating
3. Physical Features
A. Topography



B. Wetlands, watercourses & flood
   prone areas


C. Observed property crossings
   (roads, easements, ROWs)


D. Vegetation



E. Soils



4. Environmental Factors
A. Environmental audit information



B. Historical/archeological features
Appendix A-1 - Site Evaluation Form – Page 4
          Characteristic                       Strengths   Weaknesses   Rating
4. Environmental factors-continued
C. Endangered/protected species



5. Utilities
A. Water system



B. Sanitary sewer



C. Electric



D. Natural gas



E. Telecommunications



F. Stormwater management
Appendix A-1 - Site Evaluation Form – Page 5
                                               Other Comments
Ocala/Marion County, Florida

       Business Park

          Part B
       Market Study


       September 2006
        Ocala/Marion County, Florida Business Park
                  Part B - Market Study



                                   Table of Contents

Section                                                               Page

Introduction                                                           B-1

Real Estate Demand Data                                                B   -   3
       Marion County Activity                                          B   -   3
       Real Estate Needs of Marion County Businesses                   B   -   13
       Regional Activity                                               B   -   15
       Summary                                                         B   -   20

Real Estate Supply Data                                                B   -   21
       Marion County Supply – Land Availability                        B   -   21
       Marion County Supply – Building Availability                    B   -   26
       Regional Supply                                                 B   -   29
       Other Competition                                               B   -   35

Conclusions and Recommendations                                        B - 38

Appendix B - 1 – Space Needs Survey of Marion County Businesses




______________________________________________________________________________
Garnet Consulting Services, Inc.                                          Phone and Fax:
157 Park Road                                                               860-379-7449
Pleasant Valley, CT 06063-4119                              E-mail: mwaterhouse@snet.net
        Ocala/Marion County, Florida Business Park
                  Part B - Market Study
Introduction

The Ocala/Marion County Economic Development Corporation (the EDC) is evaluating
the potential for development of one or more new business parks somewhere in Marion
County. Such development is intended to address both:

         The immediate need for additional sites in master-planned environments that
         meet the needs of prospect businesses; and

         The long-term need for an adequate inventory of developable sites.

While the EDC strongly believes that its level of activity, and the economic development
competitiveness of Marion County are being adversely impacted by a limited inventory
of developable sites in a master planned and controlled business park environment, the
EDC recognizes that a rigorous assessment of market data and trends, and competing
areas, is necessary to justify development of new business parks in the County.

This report provides a market study that considers both sides of the equation – real
estate demand that could be accommodated in one or more new business parks, and
competition within the region for that demand.

It is essential to recognize the importance of available real estate as a tool in attracting
business investment. The following factors are competitive realities:

    1. There are far more economic development organizations (EDOs) like the EDC
       than there are projects of significant size occurring each year. Estimates of the
       number of EDOs just in the United States generally fall into the 15,000 range.
       This compares to annual announcements of 2200 – 2400 manufacturing or office
       projects with 20 or more employees (source: The Wadley-Donovan Group) that
       would be the type and size projects seeking a business park location.
       Maximizing the competitiveness of the EDC’s service territory is of paramount
       importance.

    2. According to a cross-section of site location consultants, having available sites
       and buildings at reasonable cost is one of the top 3 or 4 priorities for most
       companies looking for a new or branch location. Our experience in working with
       many state economic development agencies clearly shows that between 65%
       and 75% of all prospects conducting a site search begin looking for an existing
       building into which they can move quickly. In most states, about 50% of
       projects that actually occur use existing buildings, while the other half acquires a
       site for construction. Therefore, it is essential to have an adequate inventory of
       both sites and buildings.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                         Page B - 2
______________________________________________________________________________

    3. There is a distinct need for speed which makes an existing inventory critical. If a
       company cannot be in operation within a relatively short timeframe in one
       location, they will look for another location where this is possible. The duration
       of the typical site location process has been cut in half from only 5 to 10 years
       ago. The Wadley-Donovan Group reports that the typical time frame for larger
       projects now allows 6 to 8 weeks from the beginning of the process to the
       selection of the “preferred” community, and another 6 to 8 weeks to have a site
       under control, or a total of 3 to 4 months. By comparison, the typical timeframe
       for a site search 10 years ago was 6 to 8 months; 15 years ago, an 18 month
       period was common.

    4. Prospect companies prefer places where there is some choice in location, rather
       than having to make a “take-it-or-leave-it” decision. This allows a comparison of
       locations to pick the one that best meets the company’s needs. In addition,
       competition among sites may result in a lower cost than if there is only one site
       available.

    5. Many companies prefer a location in a master planned and well-managed
       environment. This has an impact both on the company’s image, as well as on
       the investment value of the property if they own it. Our experience in working in
       many locations across the country indicates that 60 - 70% of larger businesses
       prefer to own rather than lease; if leasing, many would like an option to
       purchase in the future.

Any location that cannot offer an available inventory of sites and buildings will be at a
significant competitive disadvantage to those that do.

In the next section of this report, we examine the demand for space in Marion County
and the surrounding region. The following section considers available and competing
real estate within the region. The final section provides conclusions and
recommendations to guide the EDC, County and City of Ocala’s deliberations about the
creation of new environments for business.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                  September 2006
Market Study                                                                                     Page B - 3
______________________________________________________________________________
Real Estate Demand Data

The development of a new business park cannot be approached with a “Field of
Dreams” mentality where it is assumed “If we build it, they will come”. Rather, real
estate absorption trends and data must be analyzed to demonstrate that this is a
realistic expectation.

In evaluating Ocala and Marion County’s possible need for the creation of additional
sites for business prospects, the following information is germane:

Marion County Activity

1. While the EDC does not specifically accumulate and evaluate prospect data for the
   purposes of justifying future real estate development, we worked with EDC staff and
   reviewed activity reports from 1997 to the present (partway through the 3rd Quarter
   of 2006) to create the following table which presents approximate and pertinent
   information for a typical year’s activity:

                                            Table 1
                        Summary of Marion County Annual Prospect Activity

# of Contacts                                Unknown but a substantial number brought in through
                                             marketing efforts, referrals from Enterprise Florida and area
                                             real estate brokers
# of Prospects                               10 – 12 active projects per year pending final decision
                                             12 – 15 lost projects per year
                                             7 – 8 announced projects per year
Types of Projects                            65% manufacturing
                                             20% distribution
                                             10% office projects including call centers
                                             5% other types of projects
                                             Only 1 research & development project in memory
% Preferring Existing Building               Manufacturing 20 – 30% (larger companies prefer to build)
                                             Distribution 70 – 80% except big box who have specific
                                             floor plans
    Typical Size Range of                    10,000 – 250,000 square feet with a few both larger and
     Buildings Sought                        smaller than that range. Many of the larger projects are
                                             distribution centers, some over 1,000,000 square feet.
   Most Common Building Size                 See Table 2 below
   Sought
% Preferring Site for Construction           Manufacturing 70 – 80%; especially larger projects
                                             Distribution 20 – 30%; especially larger projects
    Size Range of Sites Sought               Manufacturing 3 – 20 acres
                                             Distribution 10 – 25 acres
                                             Many companies do not know what site size they need to
                                             meet land use requirements for their buildings
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                             Phone and Fax:
157 Park Road                                                                                  860-379-7449
Pleasant Valley, CT 06063-4119                                                 E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                      September 2006
Market Study                                                                                         Page B - 4
______________________________________________________________________________
   Most Common Lot Size                      Manufacturing 10 – 15 acres
   Sought                                    Distribution – 20 acres and up
% Preferring to Own                          Manufacturing – 90%
                                             Distribution – 50%; especially larger facilities
% Preferring to Lease                        Manufacturing – 5%
                                             Distribution – 50%
% Preferring Lease with Purchase             Manufacturing – 5%
   Option
# Jobs to be Created                         Manufacturing – 300-400
                                             Distribution – 900-1500
Source: Ocala/Marion County Economic Development Corporation and Garnet Consulting Services, Inc.

Table 1 demonstrates the following factors about the Marion County economy:

         There is a healthy level of activity with the possibility of increasing that level if
         the reasons for the lost projects can be corrected. One reason for some of these
         losses is known to be a lack of sites suitable to meet project needs, particularly
         for larger projects.

         Activity has been primarily a mix of manufacturing and distribution uses with a
         smaller number of office projects. The lack of research & development projects
         may in part be a factor of Alachua County’s better proximity to the University of
         Florida.

         There is a need for both sites for new construction and vacant buildings. While
         the focus of this study is on the creation of one or more new business parks,
         consideration may also need to be given to the construction of speculative
         buildings to meet the needs of companies with time constraints or other reasons
         to occupy an existing structure.

         A variety of site sizes is needed.

2. Table 2 on the following page shows the breakdown of project building sizes by year
   for the 10-year period 1997 to part-way through the 3rd quarter of the 2005-2006
   program year. Table 2 demonstrates:

         A wide range of project sizes with the preponderance (80%) in the small (up to
         25,000 square feet) to medium (up to 75,000 square feet) size range. Although
         not shown in Table 2, 13 of the projects (16%) were 8,000 square feet or less in
         size.

         At the opposite end of the size spectrum, there have been 14 projects (17%)
         that were large (100,000 square feet or more). These projects accounted for
         more than 3.5 million square feet.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                               Phone and Fax:
157 Park Road                                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                                   E-mail: mwaterhouse@snet.net
         Ocala/Marion County, Florida Business Park                                                                                     September 2006
         Market Study                                                                                                                           Page 5
____________________________________________________________________________________________________________

                                                                     Table 2
                                                      Breakdown of Marion County Project Sizes

                                                                          Size Range (Square Feet)
           Total #
                                         25,001          50,001       75,001      100,001     125,001            150,001       175,001
 Year         of                                                                                                                                >
                         < 25,000          to              to           to           to          to                to            to
           Projects                                                                                                                          200,000
                                         50,000          75,000      100,000      125,000     150,000            175,000       200,000
2006           6              4             1                                         1
2005          11              5                            2             1                                                                       3
2004           9              6                            3
2003          14              6             1              4             1                             1                                         1
2002           7              3             4
2001           8              2             2              3                            1
2000           6              3             1                            1                             1
1999           7              3                                                                        1                           1             2
1998           6              3             1               1                                                                                    1
1997           8              4             2               1                                          1
Total         82             39            12              14            3              2              4           0               1             7

Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.




____________________________________________________________________________________________________________
Garnet Consulting Services, Inc.                                                                                                         Phone and Fax:
157 Park Road                                                                                                                              860-379-7449
Pleasant Valley, CT 06063-4119                                                                                             E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                           Page 6
______________________________________________________________________________
3. Table 3 shows total project activity (square footage) reported by the EDC over the
   past decade.

                                              Table 3
                             Marion County Total Project Activity By Year

                        Year                 # of Projects       Total Square Footage
                      2006
                                                   6                       210,700
               (through 3 Quarters)
                      2005                        11                      1,197,765
                      2004                         9                       276,575
                      2003                        14                       888,356
                      2002                         7                       119,526
                      2001                         8                       370,360
                      2000                         6                       308,000
                      1999                         7                      1,108,400
                      1998                         6                       845,022
                      1997                         8                       324,700
                      Total                       82                     5,739,404
                 Annual Average                  8-9                      573,940
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.


    Table 3 shows:

         A very healthy annual level of project activity as measured by number of projects
         and square feet. This list includes 3 types of projects: sale of land with new
         construction (see Table 4 for additional details); sale of land and buildings with
         additional construction for expansion (included in Table 5); and the sale or
         leasing of an existing building with no additional construction on the site (Table
         6).

         Normal variation in the number of projects by year, with a high of 14 and a low
         of 6.

         Marion County’s level of activity has run counter to the national trend which
         showed a drop-off of 53% from 2000 to 2003 and only a modest rebound in
         2005 (still 44% below the 2000 level) based on project data reported by Conway
         Data.

4. Not all the projects discussed in Tables 2 and 3 resulted in a land purchase; many
   were expansions on a property already occupied by the company or occupancy of an
   existing building. Table 4 on the following page presents data on projects during
   the past decade that did absorb some of Marion County’s land inventory.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                               Phone and Fax:
157 Park Road                                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                       September 2006
Market Study                                                                                          Page B - 7
______________________________________________________________________________

                                           Table 4
                  Marion County Business Land Absorption – New Construction

                                     # of           Total             Size Range           Square Feet
             Year
                                   Projects        Acreage              (Acres)            Constructed
           2006
                                      3                 80                10 – 60              177,600
    (through 3 Quarters)
           2005                       5                70                  5 – 22            611,000
           2004                       4                11                  1–5               114,000
           2003                       5                58                  7 – 20            321,500
           2002                       2                13                  5–8                85,312
           2001                       2                11                  2–9                58,000
           2000                       2                35                 15 – 20            206,000
           1999                       2                90                 20 – 90            708,000
           1998                       3                33                  3 – 20             77,625
           1997                       1                10             10 (see Note 1)         70,000
           Total                     29               401                2 – 90             2,429,037
      Annual Average                  3         40 (see Note 2)          7 – 20              242,904
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.

     Notes: (1) In 1997, ABB Water Meters, Inc. purchased 18 acres. In 2002, FedEx acquired 8 acres from ABB
                 Water Meters. The land absorption has been allocated between the two projects.
            (2) The average of 40 acres per year does not include acreage devoted by developers to speculative
                 building development, which is estimated by EDC staff to use 10 – 15 acres per pear.

     Table 4 shows:

          A healthy level of new project activity resulting in business land absorption. This
          indicates that the Ocala/Marion County area is a desirable one.

          A wide range of site sizes (2 – 90 acres) with average annual land absorption of
          40 acres. In addition, speculative construction not reflected in the projects in
          Table 4 adds another 10 – 15 acres of land absorption per year, for a total of 50
          – 55 acres per year.

5. In addition to the projects shown in Table 4, the EDC has worked on numerous
   other projects that involved the expansion of a building already occupied by a
   company or the purchase or leasing of an existing building with expansion. While
   these projects did not absorb additional land from the County’s supply, an
   understanding of the lot sizes of these projects is useful information because it
   shows the range and typical lot sizes in demand in the Marion County area. Table 5
   provides that information.


______________________________________________________________________________
Garnet Consulting Services, Inc.                                                                 Phone and Fax:
157 Park Road                                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                        Page B - 8
______________________________________________________________________________

                                                   Table 5
                                    Marion County Business Land Use –
                                   Existing Sites With Building Expansion

                                                                        Site Sizes
                              Year             # of Projects
                                                                         (Acres)
                              2006
                           (through 3                  0
                            Quarters)
                                                                              8
                              2005                     2
                                                                              39
                                                                              6
                              2004                     2
                                                                              10
                                                                              2
                                                                              5
                              2003                     4
                                                                              10
                                                                             150
                                                                              7
                              2002                     2
                                                                              9
                                                                              5
                                                                              7
                              2001                     4
                                                                              9
                                                                              30
                              2000                     1                      6
                                                                              10
                              1999                     2
                                                                              30
                              1998                    1                      200
                              1997                    0
                             Total                   18                     543
                             Range                  0–4                   0 - 200
                            Average             2 per Year               30 acres
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.


     Table 5 shows:

         A continuing trend of businesses expanding in Ocala/Marion County, indicating
         that once they establish operations in the county, they find it to be a good
         location.

         A number of companies that were willing to take a building that did not
         completely meet their needs and expand it.

      A wide range of necessary lot sizes.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                        Page B - 9
______________________________________________________________________________
6. As included in the total list of projects shown in Table 2, but not included in Table 4
   or 5, the EDC has worked on numerous other projects that involved the purchase or
   leasing of an existing building without expansion. Nonetheless, an understanding of
   the sizes of these projects provides additional useful information on typical building
   sizes in demand in the Marion County area. Table 6 provides that information.

                                           Table 6
            Purchase or Leasing of Buildings in Marion County Without Expansion

                                                                     Building Sizes
                              Year            # of Projects
                                                                     (Square Feet)
                              2006
                                                                           14,000
                           (through 3                  2
                                                                           19,000
                            Quarters)
                                                                         2 @ 8,000
                              2005                     4
                                                                        2 @ 20,000
                                                                             100
                              2004                     3                   12,000
                                                                           25,000
                                                                            2,500
                                                                            4,500
                              2003                     5                   15,000
                                                                           30,000
                                                                           35,000
                                                                            2,000
                              2002                     3                    5,000
                                                                           20,000
                                                                           13,000
                              2001                     2
                                                                           32,000
                              2000                                      2 @ 20,000
                                                       3
                                                                           37,000
                                                                           10,000
                              1999                     3                   22,400
                                                                           25,000
                                                                           20,800
                              1998                     2
                                                                           40,000
                                                                            1,000
                                                                        2 @ 15,000
                                                                           20,200
                              1997                     7
                                                                           32,500
                                                                           35,000
                                                                          127,000
                             Total                  34                   726,000
                             Range                 2–7                100 – 127,000
                            Average           3 – 4 per Year            21,353 SF
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                       Page B - 10
______________________________________________________________________________

    Table 6 demonstrates:

             Significant activity in the absorption of existing space in Marion County. This
             both underscores the importance of having an inventory of existing space for
             those companies who do not have the time or desire to construct a building,
             and again shows that Ocala and Marion County are a desirable location.

             The occupancy of a wide range of building sizes, although the most are
             20,000 square feet or less in size.


7. Table 7 provides a breakdown of projects by type.

                                              Table 7
                               Marion County Business Projects by Type

                          # of                                 Project Type
        Year
                        Projects       Manufacturing      Distribution         Office            Other
        2006
     (through 3               6               1                3                 2
      Quarters)
        2005                 11               8                2                 1
        2004                  9               5                3                 1
        2003                 14               9                1                 3              1 Retail
        2002                  7               4                2                                1 Retail
        2001                  8               3                1                 3              1 Retail
        2000                  6               5                1
        1999                  7               5                2                 1
        1998                  6               3                2
        1997                  8               5                2                               1 Service
        Total                82              48               19                11                 4
       Annual
                           8–9               4–5             1–2               1–2               0–1
      Average
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.


         Table 7 confirms information shown in Table 1 and shows that the majority of
         projects in Marion County in the past 10 years have been manufacturing, with a
         secondary cluster of distribution projects and a smaller number of office projects.

         EDC staff reports that the number of distribution prospects has trended up over
         the past few years.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                       Page B - 11
______________________________________________________________________________

8. Table 8 shows space absorption by type and average size.

                                          Table 8
                   Marion County Space Absorption by Type and Average Size

                                                                          Average Project
              Project Type          # of Projects         Total SF
                                                                             Size (SF)
              Manufacturing                  48          2,839,705            59,161
              Distribution                   19          2,397,131            126,165
              Office                         11           286,500             26,045
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.


         Table 8 shows that while manufacturing projects are more numerous,
         distribution projects are much larger. Nonetheless, manufacturing projects
         included 5 that were 200,000 square feet or more.

         Office projects are both the least frequent and smallest.


9. Marion County has recently lost 3 major distribution projects (Target, SYSCO, Wal-
   Mart), each of which would have been 1 million square feet or larger.

         Had Marion County gotten any of these projects, the average size for distribution
         projects would have been much larger.

         EDC staff reports that the primary reason these projects were lost was the
         inability to provide a suitable site within the County. Each of these projects
         required a site of 200 – 300 acres.


10. Marion County experiences very few large business closures or relocations out of the
    County. EDC staff identified only 5:

         The Mark III van conversion facility once employed 2100 people in a 700,000
         square foot building, which is now occupied by Hydro-Spa.

         Clarke Steel, a manufacturer of steel building products, consolidated operations
         to another Florida location and vacated a 100,000 square foot building.

         Cherokee Fabrication, a small manufacturer of custom trailers, vacated a 13,000
         square foot building.


______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                        September 2006
Market Study                                                                          Page B - 12
______________________________________________________________________________
      The Royal Oak charcoal manufacturing plant was converted to a distribution
      center for the same product, but at the loss of 35 jobs.

         Microdyne, an electronics manufacturer, closed a 110,000 square foot plant,
         which was purchased and leased out by a real estate investor.

    Every local economy has a normal attrition rate where businesses cease operations
    or leave the area. This level of major closures for Marion County is very reasonable
    and not a source of concern for the development of additional land inventory in one
    or more business parks.


11. Marion County is expected to continue to have substantial growth. The May 2006
    issue of Inc. Magazine included an article on “’06 Boomtowns ” which analyzed
    employment growth in 393 Metropolitan Statistical Areas (MSAs) based on data from
    the Bureau of Labor Statistics. Findings in or related to this article include:

         “Red-hot Florida is the center of [the job growth] action, contributing 19 cities to
         the list’s top 100.”

         Ocala was ranked 37th of the top 100 and 24th of the small cities with an
         employment base of less than 150,000.

         According to the Bureau of Labor Statistics, the Ocala MSA’s total employment
         grew 9.5% during the 12 month period ending in March 2006.

         A normal dynamic for communities is that population growth creates an
         expanded labor force requiring employment, which in turn leads to businesses
         expanding or locating in the area to use that labor. This fuels real estate
         development and business land use. This trend is expected to continue in
         Marion County.


12. During the course of field research, 23 people (exclusive of EDC Board Members and
    Staff) were interviewed; each was asked if they believed Marion County needed
    additional land in business park environments.

         22 of the 23 believed the County needs new business parks; 1 person said he did
         not know enough about the issue to answer.

      Included in the interviews were several developers who might be expected to
      oppose additional business park development because this would increase
      competition for their own land. This was not the case, with all developers
      interviewed supporting the development of new business parks.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                    September 2006
Market Study                                                                      Page B - 13
______________________________________________________________________________

Real Estate Needs Survey of Marion County Businesses

Local companies can be a primary source of demand for space in a new business park.
As part of the research for this project, a brief “Ocala / Marion County Business Space
Needs Survey” was mailed by the EDC to 301 businesses currently located in the
County. A blank copy of the survey instrument is provided in Appendix 1. A stamped,
addressed return envelop was provided, although it was also possible to return the
survey form by fax. Responses were received from 54 companies, a response rate of
17.9%, which is at the high end of the typical response rate for mail surveys.

Table 9 on the following page summarizes some survey response data, and we offer the
following comments from Table 9 or the actual survey responses:

    There is a great deal of satisfaction with Ocala/Marion County as a
    location, with only 1 of 54 respondents indicating plans to leave the county, and
    that appears to be a branch plant rather than a relocation.

    There is significant expansion pressure, with 25 companies (46.3%) either
    expanding at their current location or planning to find a new Marion County location
    at which to grow. 12 of those planning an intra-county relocation have a need 1 to
    5 years in the future and may be prime customers to locate in a new business park
    if it is created soon. These companies are currently small, but report plans to more
    than double their aggregate space. It is expected that there are many other
    companies in the county that did not respond to the survey that have similar
    expansion needs.

    Businesses located in the county are primarily interested in owning their
    property. 31 of the respondents (57.4%) currently own and plan to in the future; 8
    (14.8%) currently own but stated no future preference; 6 (11.1%) currently lease
    but would prefer to own in the future; 5 (9.3%) currently lease and plan to continue
    doing so; 3 (5.6%) currently lease and stated no future preference. None of the
    respondents stated a preference to switch from current ownership to a lease.

    If survey respondents are representative, Ocala/Marion County’s business
    base is comprised of many small businesses, with a few larger firms. The
    54 respondents to this survey averaged 54 employees, but 41 respondents were less
    than this. Included in the responses were 7 employers with between 100 and 600
    workers. The average space occupied by survey respondents was 32,629 square
    feet, but again, 24 of the 35 respondents (68.6%) were smaller than this size, which
    was skewed by 6 respondents occupying 70,000 square feet or larger.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
   Ocala/Marion County, Florida Business Park                                                                                       September 2006
   Market Study                                                                                                                            Page 14
   ____________________________________________________________________________________________________________
                                                       Table 9
                                  Ocala / Marion County Business Space Needs Survey

                                                                                                                                During the timeframe
                                      When will you have this space How much space (in square feet) do you have
    What are your space needs or                                                                                                shown to the left, how
                                             need or plan?              now and will you need in the future?      Current many jobs do you plan to:
                plans?
 (Please check the box(es) below that            In     In      In                           Will Add in the    Employment          Add           Cut
   best describe your space needs or Immediate 1-2      3-5    6-10       Have Now                Future
                 plans)                        Years Years Years
   Stay in my present facility with                                 363,996 SF reported by                      1551 reported
                                                                                                                              54 reported by 5
no plans to expand or reduce size of    23                              10 companies                               by 23                            4
                                                                                                                                 companies
space                                                                                                            companies
   Expand at my current location                                    558,000 SF reported by 157,000 – 167,000 SF 1071 reported 157 – 176 SF
                                        6         9      2              14 companies          reported by 11       by 17       reported by 13
                                                                                                companies        companies       companies
   Reduce space at my current
location

    Find a new location in Ocala or                                126,500 SF reported by 225,000 – 257,000 SF 184 reported    98 – 108 SF
Marion County                              3     8      4              12 companies         SF reported by 12     by 13       reported by 13
           Timeframe Not Specified - 1                                  1 @ 5 acres            companies        companies       companies
    Move from Ocala/Marion County
to a new location                                       1                  12,000                                    11
  Appears to be a branch plant location
    Other plans
1. Expand outside FL
2. Develop 10 acres next to current site
                                                                                                                                   8+
3. Add office within warehouse space       2     1      1                 195,000           60,000 outside FL       191
                                                                                                                              50 outside FL
4. 25,000 currently under construction
5. Bought 10 acres next door for
   development by spring ‘07
                                                                                           382,000 – 424,000 SF                 317 – 346
                                                                                                                    3,008
                                                                   1,255,496 SF reported      reported by 23                  reported by 32
               Totals                      34   18      8
                                                                      by 38 companies          companies +
                                                                                                                 reported by
                                                                                                                             companies + 50
                                                                                                                                                 4
                                                                                                                54 companies
                                                                                            60,000 outside FL                   outside FL
   Source: Garnet Consulting Services, Inc.
   Responses exceed 54 due to companies providing multiple responses.

   ____________________________________________________________________________________________________________
   Garnet Consulting Services, Inc.                                                                                                  Phone and Fax:
   157 Park Road                                                                                                                       860-379-7449
   Pleasant Valley, CT 06063-4119                                                                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                        September 2006
Market Study                                                                             Page 15
______________________________________________________________________________

Regional Activity

In assessing the level of economic development activity that might support
development of one or more new business parks in Marion County, it is necessary to
look at development that has been occurring in the surrounding area. This paints a
picture of how strong the overall regional economy is; downturns in the regional
economy can negatively impact Marion County, while a strong regional economy can
benefit Marion County, presuming it has the necessary resources to be competitive. As
noted in the Introduction section of this report, the availability of sites and buildings is
an essential competitive factor.

A second reason to look regionally is to assess the competitive impact of the counties
on each other. In particular, it is known that Marion County has lost projects to the
surrounding area. Both the SYSCO and Wal-Mart distribution centers (each 1 million
square feet or more) selected Alachua County as their locations.

The area investigated includes the 7 counties contiguous to Marion County: Alachua,
Citrus, Lake, Levy, Putnam, Sumter and Volusia. In the past we have been able to
obtain reports on regional activity from Enterprise Florida, Inc. (EFI). This was not
possible for this project, necessitating contact with each county individually. Each
county maintains and publishes information on its economic development activity in
different fashions making it impossible to provide comparative information in a
standardized way. Therefore, the information that follows provides a summary
description of each county’s activity as reported by economic development staff, found
on county websites, or included in published reports.

1. Alachua County

Like Marion County, Alachua County has the advantage of being traversed by I-75.
Because it is the location of the University of Florida, it offers better access to University
resources than Marion County.

Information on Alachua County projects was available from 2001 through 2005. During
this timeframe, 27 projects were reported, an average of 5+ projects per year. Of
these, 7 (26%) were new companies to the county, 10 (37%) were expansions or
combined retention and expansion, and 10 (37%) were pure retention efforts.

Of the companies new to the area, 2 moved into existing buildings on sites of 15 and
100 acres (all site sizes were as estimated by the EDO director). Five (5) projects were
new construction on sites of 2, 6, 50, 150 and 250 acres. (The two largest sites are the
SYSCO and Wal-Mart projects that considered Marion County but could not find an
adequate site.)

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 16
______________________________________________________________________________
Aside from project on a 150 acre site (a Dollar General distribution facility), the majority
of expansion or retention projects occurred with companies occupying sites of 10 acres
or less, although 4 were on sites of 20, 25, and 50 (2 projects) acres.

Alachua County has been an active market that competes with Marion County, and is
expected to continue to do so.


2. Citrus County

Citrus County is primarily a retirement area that reports it has had “little if any” new
economic development activity in the past 2 years. The focus of the Citrus County EDC
has been on serving its existing industries.

While Citrus County has been conducting economic development planning intended
“…to improve the ‘economic quality of life’ for the citizens in the area”, we do not
foresee that this county will increase its level of activity for major projects in the
foreseeable future, and will therefore not compete significantly with Marion County.


3. Lake County

There is no consolidated list of projects maintained for Lake County, but anecdotal
evidence and information from websites shows modest but continual activity. As
examples:

         The Christopher C. Ford Commerce Park had been under development since the
         early 1990s. It was initially 700+ acres and has 26 acres left, although 100
         acres of the park were purchased and are no longer part of the inventory. There
         are many projects in this park including several distribution facilities and
         manufacturing operations. Sites used for projects range from 4.3 to 40+ acres,
         with an average of 15 acres.

         The Leesburg Commerce Park is a 24 acre site approved for 268,000 square feet
         of development in multi-tenant buildings. A total of 23 units were developed, of
         which 13 have been occupied. This is an active project for small users (the
         remaining units are either 1976 or 2561 square feet, but some can be
         combined).

         The Greenleaf Business Center was developed for 12 small lots, of which 3 are
         still available.

      The Jim Rogers Industrial Park is being developed in phases with the back
      portion sold out and the front portion being platted.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 17
______________________________________________________________________________

         The Leesburg Industrial Park has been substantially developed and only has 10
         acres left in sites ranging from 1 to 5.6 acres.

         Clermont Commons is an area intended primarily for commercial uses and only
         has 1 acre left for sale.

While there are other projects in Lake County, they do not differ substantially from
those described above. Lake County has been an active market that mixes typical
industrial or business park projects of a variety of sizes, small uses that serve primarily
a local market, and commercial activity.

Lake County will continue to be a competitor with Marion County for business park uses
such as those found in the Christopher C. Ford Commerce Park: a 40,000 square foot
American Hotel Register facility; a 40,000 square foot Domino’s Distribution Center; a
182,860 foot Sprint regional distribution center; Maritec Industries’ boat manufacturing
operation; Circuit City’s 700,000+ distribution center; Goodyear Tire & Rubber’s
294,000 square foot distribution center.


4. Levy County

No project information was available on Levy County. The person handling economic
development activities for Levy County at the Nature Coast Business Development
Council is new and not aware of any reports that would provide information on projects.
The largest employer (other than the School Board) is Monterey Boats, which employs
approximately 500. Three of the top 10 employers are construction firms. Trade,
Transportation and Utilities is the largest employment sector (21.7%), followed by
Public Administration (10.2%) and Leisure & Hospitality (10.0%).

It is not expected that Levy County will be a significant competitor for Marion County in
the foreseeable future.


5. Putnam County

Putnam County has been a moderately active area, particularly in Palatka. The County
gets 2 – 5 projects in a typical year, generally small. Projects reported by the Chamber
of Commerce for the past 3 years include:




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                            September 2006
Market Study                                                                              Page B - 18
______________________________________________________________________________

                    Project Type                          Project Size              Jobs
                                                2004
       Speculative Building                       50,000 SF on 7 Acre Site
       Trucking Company                                    7 acres                    25
       Truss Company                                      12 acres                   135
                                                2005
       Metal Recycling & Processing                        7 acres                   20
       Call Center                                  Leased 30,000 SF in              500
                                                      existing building
       Distribution Center (Wal-Mart)            850,000± SF on 270 acres            600
       (still getting approvals)
                                                2006
       Metal Fabricator                                       5 acres                 30
       Manufacturer of Floating Docks                        17 acres                 45
       Marble Counter Top Manufacturer                        7 acres                 35
       Boat Manufacturer                              Leasing 20,000 SF in            20
       (moved from Marion County)                        existing building
       Barge Hull Retrofitter                             Leasing space
       Trucking Company                              Moving from 5 acre to 20         20
                                                             acre site
         Source: Putnam County Chamber of Commerce


This project list for Putnam County shows:

         A level of activity much lower than Marion County

         Generally smaller sites

         A range of activities that fit in a business park environment and would be
         suitable for a Marion County location; from that perspective, Putnam County
         competes with Marion County and can be expected to continue to do so

         Several projects that are water oriented and were drawn to Putnam County
         because of its location on the St. Johns River; this is a market niche not suitable
         for Marion County


6. Sumter County

 Like Marion County, Sumter County has the advantage of sitting astride I-75 and
includes the intersection of I-75 with Florida’s Turnpike. It also has an advantage over
Marion County in terms of proximity to the Tampa Bay area.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                       Phone and Fax:
157 Park Road                                                                            860-379-7449
Pleasant Valley, CT 06063-4119                                           E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                     September 2006
Market Study                                                                       Page B - 19
______________________________________________________________________________

Sumter County does not maintain a list of project announcements, but reports that the
level of activity has been substantial and increasing. Project types are reported to be
diverse and project sizes cover a broad range, although generally small to mid-size.

We expect Sumter County will continue to be, and perhaps increase as a competitor for
Marion County, particularly if Marion County continues to deplete its inventory of
available space. However, Sumter County reports that it too has a very limited supply
of either available buildings or sites, which currently minimizes Sumter County’s
competitive advantage. Sumter County is addressing this issue by looking at the
creation of a new 125 acre business park in Bushnell.


7. Volusia County

Marion County shares a very small common border with Volusia County, which is a very
active area due to Daytona Beach and other ocean-front communities. Volusia County
has the advantage of 2 Interstate Highways (I-4 and I-95). Because of the distance
between Ocala and Daytona Beach, we consider the two counties to be separate
marketplaces.

EDC officials in Volusia County were not aware of any published reports that would
summarize project activity. The 2005 Progress Report for their Strategic Plan published
in 2002 does not provide information on specific projects and project sizes, but does
note the following:

         6 target industries have been selected: medical product manufacturing;
         automotive components manufacturing; marine recreational products
         manufacturing; aviation & avionic products manufacturing; distribution; and
         office and information technology companies. Most all of these could also be
         targets for Marion County; therefore, there will be competition for companies
         who do not have a preference between an inland or seacoast location.

         Volusia County has created a package of incentives and inducements that it is
         using to recruit businesses. Companies listed as having located in Volusia
         County as a result include: Environics USA, NSI Intellitec, BBK Performance,
         DuvaSawko (formerly Healthcare Billing Systems), University Clinical Research,
         Piedmont Plastics, Ocean Design, Ideal Aluminum and Ark Technologies. Even
         this short list demonstrates again the wide range of business types for which
         Marion County will be competing with Volusia County.

      One of the inducements Volusia County is working hard on is the creation and
      provision of infrastructure for a wide variety of business parks throughout the
      county.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                     September 2006
Market Study                                                                       Page B - 20
______________________________________________________________________________

In summary, Marion County has been and will continue to be located in a region that
contains 7 other counties competing for economic growth. The region has had a
pattern of continual growth that is expected to continue.

Competition is expected to be particularly strong between Marion County and Alachua
County (ranked 70th on Inc.’s list of Boomtowns), Volusia County (ranked 34th on Inc.’s
list and 7th of the midsized cities (those with an employment base of 150,000 –
450,000) and Sumter County because of its I-75/Florida’s Turnpike location and closer
proximity to Tampa and its International Airport.

Lake and Putnam Counties will be more moderate competition, in particular because of
their continued work to provide an inventory of sites for development.


Summary

Marion County and the surrounding area have seen continuing growth for a number of
years and this trend is expected to continue. Growth has been in both the residential
and business sectors. While retail and service sector growth are typically tied to local
and regional population growth, many types of manufacturing, distribution and office
uses serve market territories much more broad. Nonetheless, Marion County’s growing
population of work age people provides a labor force that is both a competitive
advantage for the county and a group that needs the employment opportunities that
come from an expanding business base.

Marion County requires an adequate real estate inventory to attract and capture
business investment. If its inventory reaches too low a level, or does not offer product
to meet certain size needs, the county will begin to see more losses than wins. This
has already been seen with the loss of three major distribution projects. As Marion
County’s real estate inventory – discussed in the following section – continues to
dwindle, the County’s ability to attract smaller size projects from other industry sectors
will also be negatively impacted.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                       Page B - 21
______________________________________________________________________________
Real Estate Supply Data

Marion County Supply - Land Availability

1. An initial step undertaken by the EDC in preparation for this project was the
   gathering of information about currently available sites in Marion County. Table 10
   provides summary information on existing business or industrial parks.

                                              Table 10
                               Marion County Business Land Availability

                      Project Name                      Original Size          Acres Currently
                                                          (Acres)                 Available
       American Commerce Center                              100                      100
       Anthony Industrial Park                                30                        0
       Baseline Commerce Center                              150                 0 (see Note 1)
       BAYI                                                 250+                    50 – 60
       Big Sun Industrial Park                                20                        0
       Brian Industrial Park                                  20                        0
       Cedar Shores Industrial Park                           17                        0
       Dunnellon Airport                                 150 – 200           150 – 200 (see Note 2)
       E-1 Industrial Park                                   150                    20 – 30
       Executive Park                                         87                       45
       Lee Industrial Park                                   100                       35
       Marion Industrial Park                              25 – 30                      0
       Meadowbrook Commerce Center                           255                       20
       Ocala Airport Commerce Center                         300                      2–5
       Ocala Industrial Park                                 150                        0
       Ocala International Airport                          500+               500+ (see Note 2)
       Ocala International Commerce Park                     300                      150
       Pine Oaks Industrial Park                              38                      2–5
       Shady Road Industrial Park                             33                        0
       South Ocala Industrial Park                         50 – 60                      0
       South 40 Industrial Park                              100                      3–5
       Silver Springs Shores Industrial Park                 352                     5 – 10
       36th Avenue Industrial Park                           200                      2–5
       Total Acreage                                    3377 - 3442             1084 – 1170
                                                                                   (see Note 3)
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.

Notes: (1) The new owner of the Baseline Commerce Center property has reported no interest in selling
           or developing this property as a business park at this time. Therefore, this property is not
           considered to be part of the EDC’s available inventory, but may become so in the future.
        (2) Land at Dunnellon Airport and Ocala International Airport is available only by ground lease.
        (3) Because land at Dunnellon Airport and the Ocala International Airport is available only by
            ground lease, it is appropriate to segment Marion County’s business land availability into 434 –
            470 acres for sale and 650 – 700 acres for lease.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                       September 2006
Market Study                                                                         Page B - 22
______________________________________________________________________________
   Important observations about Table 10 are:

         The inventory of 1084 – 1170 acres is misleading. Nearly half of this – 500+
         acres at the Ocala International Airport – is only available for lease. Another 150
         – 200 acres is at the Dunnellon Airport, which lacks public water and sewer, is
         approximately 11 miles from an access point to I-75, and is also only for lease.
         While these factors do not rule this location out entirely, they substantially
         reduce the desirability of this location for many companies. The land in the
         Baseline Commerce Center is reportedly not available. Thus, we calculate that
         Marion County’s inventory of available land for purchase totals 434 – 470 acres.

         Several of the remaining sites in Marion County are only suitable for small
         projects; these total 14 – 30 acres in 5 different locations.

         The owners of many smaller tracts of land have recognized the need for
         industrial sites and have created “pocket parks”, most of which are fully
         developed or nearly so.

         The first industrial or business park in the Ocala area was begun in the mid to
         late 1960s, or approximately 40 years ago. The difference between the total of
         originally available acres and the current availability suggests an annual land
         absorption of nearly 60 acres per year.

         Meadowbrook Commerce Center, with which we have personal experience, is a
         good example of how rapidly a well-located and designed business park in
         Marion County can be fully absorbed. Meadowbrook, a 255 acre project, first
         became available under the current developer in 2000. In 2002, the park was
         approximately one-third developed and had about 175 acres left. We were
         asked to provide a proposal to help market the remaining acreage. Those
         marketing services were never needed because the remaining 175 acres were
         fully committed between 2002 and 2006, or an average of about 44 acres per
         year.


2. Marion County currently has 5 primary business park areas available; key
   characteristics of these parks are summarized in Table 11 below:




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                            September 2006
Market Study                                                                              Page B - 23
______________________________________________________________________________
                                   Table 11
                      Marion County Primary Business Parks

Project Name                       American Commerce Center
Total Acres                        100
Available Acres                    100
Located on                         SR 35 near Belleview, Florida
Distance From Nearest              14 miles
Access to I-75
Utilities Available                Water and sewer provided by the City of Belleview. Progress
                                   Energy provides electricity.
Price Per Acre                     $60,000; negotiable for larger sites
Other Comments                     Rail service possible




Project Name                       BAYI Properties
Total Acres                        250+
Available Acres                    30 – 40 acres
Located on                         SR 40 and US 27 within the Ocala City Limits
Distance From Nearest              ¼ mile
Access to I-75
Utilities Available                City of Ocala water, sewer and electric.
Price Per Acre                     6 of 12 pre-platted sites have sold at $75,000 to $120,000 per
                                   acre; remaining acreage available at $120,000 to $150,000
                                   per acre
Other Comments                     Mixed use project including residential, commercial/retail and
                                   industrial. Some frontage on I-75

Project Name                       Dunnellon/Marion County Airport and Park of
                                   Commerce
Total Acres                        1700± (sold about 1,200 acres - only 450 – 500 left which
                                   includes the airport itself)
Available Acres                    150 – 200
Located on                         County Route 484 in Dunnellon
Distance From Nearest              11 miles
Access to I-75
Utilities Available                Well and septic. Progress Energy provides electricity.
Price Per Acre                     Lease only at current appraisal values
Other Comments                     County-owned property. Only airside and aviation oriented
                                   land is left.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                       Phone and Fax:
157 Park Road                                                                            860-379-7449
Pleasant Valley, CT 06063-4119                                           E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                             September 2006
Market Study                                                                               Page B - 24
______________________________________________________________________________
Project Name           Ocala International Airport
Total Acres            500+
Available Acres        500
Located on             SR 40 within the Ocala City Limits
Distance From Nearest 2 miles
Access to I-75
Utilities Available    City of Ocala water, sewer and electric.
Price Per Acre         Ground lease only at 10±% of current appraised value
                       ($50,000± per acre). Can be discounted as an incentive.
Other Comments         Excellent location with use limitations due to unavailability for
                       sale.

Project Name                       Ocala International Commerce Park
Total Acres                        300
Available Acres                    150
Located on                         SR 40 within the Ocala City Limits
Distance From Nearest              1.5 miles
Access to I-75
Utilities Available                City of Ocala water, sewer and electric.
Price Per Acre                     $150,000 to $250,000 per acre
Other Comments                     Phase 4 requires platting. 1 of 5 Foreign Trade Zone sites in
                                   the County.
Source: Ocala/Marion County Economic Development Corporation

    Table 11 shows:

         Marion County’s very small inventory of land in business parks, with further
         limitations from distance from I-75, lack of necessary utilities, and land
         unavailable for purchase. There are 280 – 290 acres for purchase and 650 –
         700 acres for lease in primary business park environments.

         We conclude that the County currently only has approximately 180 – 190 acres
         of land in 2 business park environments, with necessary infrastructure and
         Interstate accessibility, that is truly competitive. The majority of this land still
         requires platting and concurrency approvals. For those companies interested in
         a leased facility, this inventory increases by 500 acres because of the Ocala
         International Airport site.


3. Outside of master planned business parks, the EDC reports there are very few
   “greenfield sites” in the County that meet the “ready-to-go” test. Many owners are
   currently uninterested in selling or developing their property, or prefer retail or
   residential use. Some lack necessary infrastructure, zoning and/or approved land
   use, or both. Primary greenfield sites in Marion County are shown in Table 12:
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                        Phone and Fax:
157 Park Road                                                                             860-379-7449
Pleasant Valley, CT 06063-4119                                            E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                                     September 2006
Market Study                                                                                       Page B - 25
______________________________________________________________________________
                                       Table 12
         Major Marion County Greenfield Sites Suitable for Business Development

             Site Name                Site Size                         Comments
                                       (Acres)
                                                    Owners not interested in industrial or
   Avatar Properties                     3000±      commercial use although some retail may be
                                                    developed along SR 326.
                                                    Multiple sites associated with I-75 at its
                                                    intersection with County Route 318. No
   County Route 318                          2100
                                                    specific discussions with property owners have
                                                    occurred.
   County Route 484 Section                         Single owner has committed to housing
                                             226
   7 (north side)                                   development.
                                                    In the midst of an area that can be expected
   County Route 484 Section
                                         210±       to have high demand as a commercial/retail
   7 (south side)
                                                    location.
                                                    Poor accessibility to I-75 via 3 mile private
   Heritage Estates                      803±
                                                    road. Up for auction.
                                                    In the midst of an area that can be expected
   Marion Oaks                           200±       to have high demand as a commercial/retail
                                                    location.
                                                    Developer is interested in development of a
   McGinley                                  1280   business park. Not all of this area would be
                                                    available for this purpose.
                                                    Numerous owners; mixed zoning and land
   NW 44th Avenue                        200±
                                                    use; requires well and septic system.
                                                    Developer is interested in development of a
   On Top of the World                       480    business park. Could easily be annexed into
                                                    the City.
                                                    Multiple owners. EDC has been told by a real
   State Route 326 – North             250 – 300    estate broker that property acquisition is not a
                                                    problem.
                                                    May be difficult to obtain the larger parcels in
   State Route 326 - South               1400±      this area due to other plans of the owners.
                                                    Could be annexed into the City.
                                                    Owner currently has no interest in selling and
   TAC Holdings                              350
                                                    will maintain as a ranch.
                                                    May have been sold for residential
   Tamburro                                  455
                                                    development.
Source: Ocala/Marion County Economic Development Corporation data analyzed by Garnet Consulting Services, Inc.


         Of these 13 sites, those that have some possibility for near-term development
         total 5500+ acres. However, most of these have deficiencies such as lack of
         critical infrastructure or the need for a change in zoning and/or land use
         classification to allow the development of a business park.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                              Phone and Fax:
157 Park Road                                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                            September 2006
Market Study                                                                              Page B - 26
______________________________________________________________________________

         Of these, 8 areas were selected by the EDC for additional study as a potential
         business park location. These areas are the subject of a separate part of this
         feasibility study.

         Raw land, which is what Table 12 presents, does not address the needs of Ocala
         and Marion County to have an adequate inventory of available land in a fully
         serviced and master planned business park environment. For any of these sites
         to be added to the inventory, much planning and infrastructure improvement
         work will likely be required.


Marion County Supply - Building Availability

4. As previously noted, many business prospects begin their consideration of a new or
   branch facility location by looking for an existing building. Table 13 presents
   information extracted from the Property Listings included on the EDC’s website for
   industrial buildings. While this list may not be complete, the EDC believes it includes
   the majority of primary building opportunities.

                                             Table 13
                  Industrial Buildings Available in Marion County - August 2006

      Building Name                 SF Available      Lot Size (Acres)              Pricing
Liberty Homes                          158,300              19.53               Sale $5,000,000
Haverly Furniture                      120,400                10               Lease $3.75 NNN
Clarke Steel                           100,000               6.17              Lease $3.95 NNN
Custom Window Systems                   66,594                7.8             Lease – Negotiable
Hills of Florida LLC                40,000 of total                           Lease – Negotiable
                                                            5.29
                                        63,265
Maranatha Building #1                   39,600                               Lease – Negotiable
                                                      19.8 (includes 3
Maranatha Building #2                   39,600                                Lease - $4.00/SF
                                                         buildings
Maranatha Building #3                   31,919                                Lease - $4.00/SF
Dollinger Building                      39,214                                 Sale $4,200,000
                                                            2.02
                                                                              Lease $7.50 NNN
Custom Window Systems                   38,930              3.54             Lease – Negotiable
Acticarb                                33,570              15.2               Sale $3,500,000
Quality Trailer Products                33,600              5.11              Lease $5.95 NNN
Penn Flooring                           26,200              2.86              Lease $4.50 NNN
Ocala Inter. Airport Bldg.                                                   Lease $5.05 + sales
                                        14,000              9.34
                                                                                     tax
Cherokee Fabrication                    13,840               1                Lease $7.80 NNN
Sivan Industrial Park                   10,500              11                Lease $6.75 NNN
Patrick Ind. Park Bldg.                 10,000              2.2                Lease $6.00/SF
Park Place 2                       18,200 in 2 9100          1                 Lease $9.00/SF
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                       Phone and Fax:
157 Park Road                                                                            860-379-7449
Pleasant Valley, CT 06063-4119                                           E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                           September 2006
Market Study                                                                             Page B - 27
______________________________________________________________________________
                                   SF buildings in
                                   1300 SF bays
Barron Tire                            7,200                    .47            Lease $4.00/SF
Hillards Air Conditioning              6,676                    .46          Lease – Negotiable
Air Service                            5,000                    .46            Lease $5.00 N
Foxfire Realty Listing                                                        Sale $1,400,000
                                         3,900              13.33
                                                                            Lease $9000/month
3700   NE 42nd Lane                      2,500                              Lease $1,050/month
1665   N. Magnolia Ave.                  1,760                               Lease $900/month
5919   SE 68th St. #101                  1,250                               Lease $625/month
5919   SE 68th St. #109                  1,250                               Lease $625/month
3740   NE 40th Pl. Unit F                 900                                Lease $450/month
                                                                              includes utilities

         Marion County’s current inventory of available industrial space includes 27
         listings, which is a reasonable choice. These 27 buildings total 864,903 square
         feet. This choice could be diminished by buildings that are old, not well-
         maintained, lacking in adequate infrastructure, functionally obsolete, poorly
         located, or other negative features.

         There is adequate availability by size range, except in the 65,000 – 100,000
         square foot and the 15,000 – 25,000 square foot ranges where there are no
         buildings available.

         Many of the buildings are on lot sizes that allow little or no expansion.

         23 of the buildings (85%) are for lease only. The 4 buildings available for sale
         include 1 large (158,300 SF), 2 mid-size (39,214 and 33,570 SF) and 1 small
         (3,900 SF). This is an inadequate inventory of buildings for purchase and will
         encourage those companies who want to or must be in the Ocala area to look for
         a site for new construction. The EDC may want to consider development of a
         speculative building in a new business park environment.

5. Table 14 presents information extracted from the Property Listings included on the
   EDC’s website for office buildings. Again, while this list may not be complete, the
   EDC believes it includes the majority of primary building opportunities.

                                                Table 14
                              Office Buildings Available in Marion County
                                             (August 2006)

            Building Name                        SF Available                Pricing
  Pic N Save                                        42,840              Lease $5.00 NNN
  SPRINGZ Office Building                           42,000               Sale $2,950,000

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                      Phone and Fax:
157 Park Road                                                                           860-379-7449
Pleasant Valley, CT 06063-4119                                          E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                       September 2006
Market Study                                                                         Page B - 28
______________________________________________________________________________
  Food Lion                                      29,000         Lease $19,575 + $300 CAM
                                                                    & taxes per month
  Interstate Office Park Building C              11,199             Lease - Negotiable
  Bank of America Building                        8,911           Lease $16.00/SF Gross
                                             May be divisible
  Ocala National Bank                            7,644               Lease - Negotiable
  South East Professional Center                 5,700                Lease $14.00 N
  Cala Hills                                     5,100          Lease $5,737.50/month NNN
  Interstate Office Park Building B              5,060               Lease - Negotiable
  Circle Square                                   4,900           Lease $5,020.48/month
  Laurel Run Professional Center                 4,000                Lease $12.00 N
  Laurel Run Professional Center                 4,000                Lease $12.00 N
  Ocala Professional Plaza                        3,850           Lease $2,931.81/month
  Ocala Medical Park                             3,801            Lease $4,722.74/month
                                                                      includes utilities
  Dunnellon Plaza                                 3,760           Lease $4,593.75/month
  Silver Springs Shores Admin Center           Up to 3,735
       9,000 in Mini-suites 32-291 SF          contiguous
  5353 SW College Rd.                             3,124           Lease $5,267.36/month
  McManaway Property                         Space 2 – 2,818         Lease $12.00/SF
                                             Space 1 – 1,792         Lease $12.05/SF
  Skylark Plaza                                   2,556           Lease $2,080.46/month
  3610 Building                              Space A – 2,400         Sale $1,495,000
                                             Space B – 1,200
  3200 SW 34th Ave.                              2,312               Lease $14.00 N
  Laurel Run Professional Center                 2,000               Lease $13.00 N
  2100 SE 17th St.                                2,000              Lease $11.00 N
  Marion Medical Park                             2,000               Lease $16.00 N
  Marion Medical Park                             2,000               Lease $15.00 N
  Laurel Run Professional Center                 1,800               Lease $10.50 N
  Timber Ridge Professional Center               1,742               Lease $15.00 N
  Paddock Park Medical Center                    1,500               Lease $15.00 N
  USDA Building                                   1,484          Lease $1,000 per month
  Kingsland Plaza                                 1,450            Lease $1,450/month
  Oakbrook Office Park                            1,325          Lease $1,070 per month
  Timber Ridge Professional Center               1,250               Lease $15.00 N
  Sosa Architecture                          Space A – 1,200         Lease $16.00/SF
                                             Space B – 1,200
  Paddock Office Park                             1,100           Lease $1,171.51/month
  2437 SE 17th St.                                1,000               Lease $14.00 N
  Magnolia Square                                  770                Lease $10.00 N
  Magnolia Square                                  576                 Lease $10/SF
  44 SE 1st Lane                                   288          Lease $600/month includes
                                                                          utilities
  44 SE 1st Ave.                                   224          Lease $325/month includes
                                                                          utilities
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                       September 2006
Market Study                                                                         Page B - 29
______________________________________________________________________________

         This list of available office buildings or spaces includes 42 locations. Only 3 are
         larger blocks of space (29,000, 42,000 and 42,840 SF) and 2 of these are former
         supermarket sites. If Ocala/Marion County is to attract more office uses in the
         future, additional sites for larger office buildings must be available. Generally,
         this type of user prefers the controlled environment of a business park.

         38 of the locations (90%) will only accommodate smaller users (10,000 square
         feet or less) and 25 of these (60%) are for very small users of 3,000 square feet
         or less.

         Several of the available spaces are for special uses such as medical offices.

         Only 2 of these office properties (1 large and 1 complex of 2 small buildings) are
         for sale. Opportunities for companies that wish to own their office building in
         Marion County are limited unless they purchase land and construct their own
         facility.

         As shown in Tables 7 and 8, office projects have historically been the smallest
         portion of Marion County’s economic activity, with only 11 of 82 (13.4%) projects
         in the past 10 years falling into that category. This raises the question of
         whether this is because Marion County is not perceived as a desirable office
         location, or whether those users needing office space are being discouraged by
         the lack of office inventory in the County. In either case, this may be an area for
         future work by the EDC.


Regional Supply

As with economic development activity, it is necessary to look not only at Marion
County’s real estate inventory, but also at the inventory available in the surrounding
region. This is available or planned space that will be competition for sites in Marion
County for some prospects, or for some existing Marion County businesses unable to
find a suitable site in Marion County.

Again, we have researched available business property (not including retail) in the
counties surrounding Marion County – Alachua, Citrus, Lake, Levy, Putnam, Sumter and
Volusia Counties. Because each county collects and provides information in different
fashions, it is not possible to summarize their business property availability in tabular
form. The following discussion summarizes information received from interviews with
economic development officials and selected real estate brokers/developers, and
website review for each county.


______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                     September 2006
Market Study                                                                       Page B - 30
______________________________________________________________________________
1. Alachua County

Alachua County’s inventory of vacant sites includes 45 sites totaling 2,720 acres. 33 of
the sites (73%) are small – 10 acres or less.

However, Alachua County does have 9 sites between 52 and 1,718 acres that total
2,522 acres. Depending on location, available infrastructure and site characteristics,
some of this can be expected to be competition for Marion County.

Prices range from $8,438 per acre (an 80 acre site) to nearly $500,000 per acre (some
of the very small sites). The median price is $150,000 per acre. 17 of the sites are
priced at $75,000 per acre or less.

Alachua County has 26 available industrial buildings ranging in size from 1,920 to
374,650 square feet and totaling 781,586 square feet. 14 of the industrial buildings are
small at less than 10,000 square feet. Other than one 53,000 square foot building,
Alachua County has no inventory of industrial space between 36,000 and 100,000
square feet in size.

The asking price for industrial buildings for sale ranges from $21.68 to $99.50 per
square foot with an average asking price of $45.41 per square foot. The lease price for
industrial buildings for rent ranges from $1.00 to $7.78 per square foot with an average
of $4.15 per square foot.

Alachua County has a large inventory of available office buildings with a total of 103
listings, of which 70 are small blocks of space 5,000 square feet or less. 11 listings are
in the 5,001 – 10,000 square foot range, 20 are in the 10,001 – 50,000 square foot
range and 2 are in excess of 50,000 square feet. The 32 office spaces in excess 5,000
square feet total 501,404 square feet.

Alachua County has a better availability of office buildings for sale than Marion County.
For the 9 listings on which an asking price is shown, the range is $55.56 to $158.78 per
square foot with an average of $97.67 per square foot. For the 20 office buildings for
lease, the range is $5.05 per square foot to $19.50 per square foot with an average of
$12.21 per square foot. No information in provided on whether these are net or gross
rental costs.

In our estimation, Alachua County currently appears to have a competitive advantage
over Marion County in terms of both land availability and office building availability and
is similar in industrial building availability.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                     September 2006
Market Study                                                                       Page B - 31
______________________________________________________________________________
2. Citrus County

Citrus County does not currently have a printed or website inventory of available space,
and reports that there is very little space available in the county.

Citrus County is not a primary competitor for Marion County.


3. Lake County

Lake County does not have a centralized inventory of available sites. Research from
various sites shows the following:

    The Christopher C. Ford Commerce Park only has 26 acres left, which is being
    marketed at $150,000 per acre. Sites that have been developed in this park range
    from 4.3 to 40 acres and average 15.4 acres. This park was originally 700 acres in
    size. There is one 76,388 square foot building available in the park; it can be
    divided into 40,000 SF and 36,388 SF sections. The asking price is $4,100,000
    ($53.67/SF) or $3.75/SF NNN.

    Clermont Commons is primarily a commercial park. It only has 1 acre left, priced at
    $975,000. The developer has leased space available at $6.50 to $20 per SF.

    Jim Rogers Industrial Park has 20 – 25 acres left, which is expected to be priced at
    $50,000 per acre when platting is competed.

    Leesburg Industrial Park has 10 acres left, priced at $20,000 - $35,000 per acre.
    Lots in this park have been small (1.0 – 5.6 acres).

    Southridge Industrial Park has 21 lots; we were unable to obtain information on this
    park.

    Leesburg Commerce Park is a 24 acre development approved for 268,000 square
    feet of warehouse/industrial/flex use. A total of 23 units were developed of which
    10 are available; 9 are 1,976 SF priced at $170,000 ($86.03/SF) per unit; 1 is 2,561
    SF and is priced at $185,000 ($72.24/SF).

    Mount Dora Industrial park is 20± acres and is approved for a total of 200,000
    square feet.

    Greenleaf Business Center is 12 small lots of which 3 are available: 2.62 acres for
    $424,500 ($162,023/acre); 2.36 acres for $472,000 ($200,000 per acre); and 2.21
    acres for $442,000 ($200,000 per acre).

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 32
______________________________________________________________________________
   Hart Industrial Park was developed for heavy manufacturing and warehousing, and
   has 3 buildings ranging from 1,200 to 53,000 square feet for lease at $8.00/SF plus
   sales tax.

    Lake Denham Commerce Park has 3 sections for commercial, office and industrial
    use. The industrial section has 11 lots approved for a total of 230,415 square feet
    ranging from 5,998 to 42,324 square feet.

    Timber Village Industrial Park was planned for 14 small lots 1 acre or less in size.

    While there are many other sites listed for sale in Lake County, most are intended
    for commercial/retail use.

    The Metro Orlando Economic Development Commission’s most recent list of Lake
    County Industrial Space (dated 2006 3rd Quarter) includes 7 buildings ranging from
    900 to 40,000 square feet and totaling 91,760 square feet. The asking lease rate
    ranges from $3.13 to $6.80 per square foot.

    Similarly, the Metro Orlando EDC’s 2006 3rd Quarter list of available office space
    includes 3 properties ranging from 3,000 to 30,000 square feet and totaling 55,500
    square feet. Asking rent is only shown for 1 property at $23.00 per square feet.
    While this list has undoubtedly changed, it is probably representative of Lake
    County’s available office inventory.

Lake County is primarily a small space market with most projects providing small lots or
blocks of building space. Lake County is not considered a major competitor for Marion
County.


4. Levy County

Levy County has few sites or buildings available and does not have a reliable list. The
primary location is the Williston Municipal Airport and Industrial Park, which contains
2,000+ acres. Plans call for platting the property for 5 – 10 acre lots. Current
occupants include Monterey Boats, A&N Corporation, Welbilt, Williston Peanut,
Agrillance and several aviation related businesses.

While Levy County has this large industrial park area, it is not expected to be a major
competitor for Marion County due to its distance from I-75.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 33
______________________________________________________________________________
5. Putnam County

Putnam County has very few locations for business, but will soon prepare a Future Land
Use Map to identify additional areas for the future. Primary locations for business at
present include:

    The new Putnam County Business Park is a 100 acre development priced at $50,000
    per acre. Lots range from 1.5 to 23 acres. Consideration is being given to adding
    another 320 acres.

    The Larkin Airport Industrial Park only has 8 acres available. Land price is being
    raised from $25,000 to $30,000 - $35,000 per acre.

    Available buildings include a 50,000 square foot shell building in the Business Park
    and a 200,000 square foot former Florida Furniture building in the bargeport.

Putnam County is expected to be only minimal competition for Marion County in the
future.


6. Sumter County

Sumter County does not maintain an inventory of available properties. When the
County has a prospect, its economic development director contacts local real estate
brokers to obtain an updated list of available land or buildings depending on the
prospect’s needs. Available properties reported include:

    300+ acres in the Coleman Industrial Park with rail available. The asking price is
    $20,000 - $25,000 per acre, although this land may be committed to a specific user.

    2-3 acres in the Graham Industrial Park priced at $150,000 per acre.

    5½ and 1½ acre sites in the Willard Peebles Park owned by the County.

     The possibility of a small amount of land left in the Route 44 Industrial Park priced
    at $100,000 per acre.

    The possibility of some land in Wildwood Industrial Park.

    The County is considering a new 125 acre industrial park in Bushnell; rezoning is
    required.

   Very few available buildings because they are committed before construction is
   complete.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 34
______________________________________________________________________________

Sumter County could be competition for Marion County because of its location, but its
ability to compete is currently limited due to lack of a real estate inventory in planned
environments.


7. Volusia County

Volusia County has an extensive real estate inventory:


    The Deland Crossings Industrial Park is a 43 acre manufacturing and distribution
    development with 14 acres left in 3 lots (3.27, 4.78, and 5.97 acres) of which
    approximately 11 acres are buildable. Sale of the lots is subject to bid with prices
    expected at $175,000 - $190,000 per acre. A minimum building size of 40,000
    square feet is required.

    Gateway Business Park South is a 100 acre development for manufacturing and
    distribution of which an estimated 50 acres are left priced at $200,000 per acre or
    more.

    Cornerstone Office Park is a 100 acre development with approximately 75 acres
    remaining. Selling price is expected to be in the $190,000 to $275,000 range.

    Airport Corporate Business Park is an 80 acre office and technology park currently
    going through the entitlement process. Entitlements are expected for 300,000
    square feet each of office and manufacturing. Land can only be leased with a 30
    year term and 2 10-year renewals expected as typical. No ground lease price has
    been set yet, but common practice is 10% of appraised value per year, with the
    appraised value expected to be in the $125,000 - $150,000 per acre range.

    Parktowne Industrial Park is a 200 acre manufacturing and distribution location of
    which 100± acres remain. This park is described as having large sites and poor
    access. No pricing information was available.

    Tomoka Farms Industrial Park is a County developed manufacturing and distribution
    area of 150 acres, of which 100± acres are available. Land is available for lease
    only with current estimated lease cost of $10,000 per acre per year based on a land
    value of $100,000 per acre.

    Property listings from the County’s Department of Economic Development website
    include 14 other land listings ranging from 1.9 to 44 acres and totaling 161 acres.


______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                        September 2006
Market Study                                                                          Page B - 35
______________________________________________________________________________
   Property listings from the County’s Department of Economic Development website
   include 75 buildings ranging from 1,350 to 155,000 square feet, with a total of
   1,719,321 square feet available. 33 of these buildings are small – under 10,000
   square feet; 24 are in the 10,000 – 25,000 square foot range; 9 are in the 26,000 –
   50,000 square foot range; and 3 each are in the 51,000 – 75,000, 76,000 – 100,000
   and over 100,000 square foot ranges. 30 buildings are for sale; 36 buildings are for
   lease only; and 11 buildings are for sale or lease, or lease with a purchase option.

Volusia County will continue to be competition for Marion County, particularly for
available building space. Like Marion County, some of Volusia County’s available land
will be limited in desirability because it is only available for lease.


Other Competition

In addition to the counties in the immediate vicinity of Marion County, the EDC
identifies Tampa and several locations in Georgia (Brunswick, Valdosta and Waycross)
as frequent competitors.

1. Tampa

It is difficult to obtain a good list of available properties in Tampa because the list is so
extensive, rapidly changing, and comes from a variety of proprietary sources.

    LoopNet shows 12 land listings ranging from 5.0 to 42.5 acres and totaling 206.29
    acres. Sale price ranges from $100,188 to $544,500 per acre with an average of
    $227,208 per acre.

    LoopNet shows 19 buildings listed including:

         •    12 industrial buildings or building segments ranging from 7,000 to 145,558
              square feet and totaling 279,138 square feet. Prices are in the $109 per
              square foot range.

         •    5 office buildings ranging from 2,500 to 130,000 square feet and totaling
              379,000 square feet. Prices range from $85.65 to $238 per square foot.

         •    2 warehouse buildings of 1,500 and 85,700 square feet totaling 87,200
              square feet priced in the $92 per square foot range.

         •    1 flex space building of 52,000 square feet priced at $125 per square foot.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                      September 2006
Market Study                                                                        Page B - 36
______________________________________________________________________________
2. Brunswick, GA

Property listings from the Brunswick – Glynn Economic Development Authority website
include:

    14 lots in the Brunswick-McBride Industrial Park ranging from 3.7 to 14.02 acres and
    totaling 112.81 acres. No pricing information is provided. This is a mixed use park
    with 23 occupants on lots ranging from very small to 22.8 acres.

    Colonel’s Island Industrial Park with 2000+ acres available.

    Brunswick-Golden Isles Business Park No. 1 of 83 acres zoned for office/
    distribution/industrial uses.

    Brunswick-Golden Isles Business Park No.2 of 375 acres zoned for office/
    distribution/industrial uses.

    Brunswick-Golden Isles Airport Industrial Park with an unknown number of acres for
    lease.


3. Valdosta, GA

Information on the Valdosta – Lowndes County Industrial Authority website includes 5
industrial parks controlled by the Industrial Authority:

    The Hahira Business Park, a 168 acre development that needs infrastructure
    improvements.

    Perimeter Industrial Park, a 100 acre development with an option on an additional
    230 acres. This park has rail service and currently has 1 occupant.

    Azalea West Business Park, a 276 acre park of which 70 acres are available. There
    are major Dillards and Lowes Distribution Centers in this park.

    Azalea City Business Park, originally 590 acres with only 6.22 acres left. Major
    occupants include SAFT, Queen Carpet, TM Polyfilm, Standard Contractors, US
    Marine and the Valdosta Food Bank.

    Lake Industrial Park, a 229 acre development of which 169 acres are available.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                     September 2006
Market Study                                                                       Page B - 37
______________________________________________________________________________
4. Waycross, GA

The Okefenokee Area Development Authority website shows the following land listings:

     Waycross Ware County Industrial Park which currently has 571 acres available in
     tracts of 25, 33, 153, 180 and 180 acres. This park is adjacent to the airport and
     currently includes 24 or more businesses.

     Pierce County Industrial Park with 175 acres available.

     Waycross Corporate Center, a 215 acre project under development.


All of the areas discussed above will continue to be competition for Marion County due
to the availability of land in business park environments.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                       September 2006
Market Study                                                                         Page B - 38
______________________________________________________________________________
Conclusions and Recommendations

1. There is a demonstrable need for more land for business development in
   Ocala/Marion County. The County continues to have a very healthy level of
   development, but that level can be expected to decline if there are inadequate
   locations for businesses.

         Over the past decade, the county has averaged 3 new construction projects per
         year using 40 acres each year, although land absorption the past 2 years has
         been more than that. This does not include land used by developers for
         speculative building development, which adds another 10 to 15 acres per year.

         A survey of local businesses found a significant number with additional space
         needs now, or in the next few years. The County is at risk of losing these
         businesses if no suitable location can be provided.

         Primary available sites include 150 acres in Phase 4 of the Ocala International
         Commerce Park (which still requires platting) and 30 – 40 acres remaining in
         BAYI Properties development. The Ocala International Airport’s 500 acres is an
         excellent location, but is limited to ground leases. Additional but less competitive
         locations due to distance from I-75 are the American Commerce Center (100
         acres) and the Dunnellon/Marion County Airport & Park of Commerce (150-200
         acres), which also has the limitation of leased land only.

         At current rates of absorption, the entire inventory of land in the two locations
         we consider to be the County’s primary locational opportunities will be
         completely absorbed in 4 to 5 years.

         Ocala/Marion County cannot expect to continue to have quality
         economic growth in the future if it has no place to put it. One or more
         new master planned business parks are needed.

2. The most likely mix of uses to be expected in Ocala/Marion County in the future is a
   continuation of the mix of manufacturing, distribution and office projects. An
   increase in larger distribution projects can be expected if suitable sites are available.
   An increased effort to position Ocala/Marion County as a location for regional or
   back offices may be warranted if suitable sites in business park environments can be
   provided and adequate clerical and other office skills can be demonstrated to exist
   within a 30 minute commute zone.

3. A narrow focus on specific industry targets for a new business park is not necessary
   or advised. Marion County has consistently attracted a wide variety of business
   types and this pattern will continue. Existing targets identified as high priority for
   the County will pertain to new business parks as well.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                       September 2006
Market Study                                                                         Page B - 39
______________________________________________________________________________

4. New business parks in Marion County must be designed to allow a range of site
   sizes, since the County will continue to see demand for all sizes:

         Historically, Marion County has had the most activity in the 5 – 10 acre lot size
         (25 of 47 projects in the past decade).

         Companies moving into existing buildings have occupied sites that would equate
         to 2 – 5 acres if enough room is allowed to double the size of the building with a
         maximum 30% building coverage. If Marion County continues to have a small
         inventory of vacant building space, having lots in this size range will be important
         in continuing to house this size business. Many of the County’s existing
         businesses fall into this size range.

         Marion County averages 1 project every other year on a 20 acre site.

         Marion County has 1 larger project (lots of 21 to as large as 200 acres) almost
         every year. An environment where larger projects can be accommodated will be
         particularly important if Marion County is to have a chance at the larger
         distribution facilities that continue to look in the area.

5. Since the creation of the first industrial park in Marion County, an average of about
   60 acres per year has been absorbed. Over the past decade, the average has been
   40 – 50 acres per year, with a higher amount the past 2 years. It is likely that the
   County’s land absorption would have been greater in the past few years if additional
   acreage had been available. We estimate that future demand will average 50 – 60
   acres per year if suitable environments are available. Existing developments may
   capture 10 – 20% of that; therefore, new development would require 40 – 50 acres
   per year.

6. When starting the planning for new business park development, creating an
   inventory that will last 15± years is frequently the standard. This reduces the need
   to go through the cost and effort for planning another business park in the near
   future. It also recognizes that it is less costly to acquire land at today’s prices than
   it will be in the future. At an average annual absorption of 40 – 50 acres a year in
   developments that currently do not exist, this indicates that Marion County should
   be considering the creation of 600 – 750 acres of new business park environments.

7. In order to be competitive, land pricing must reflect both the price per acre in the
   immediate vicinity, as well as the price being offered by most frequent competitors.
   In Marion County, business park land in close proximity to I-75 is currently priced at
   $120,000 - $200,000 per acre. This price is competitive with land in both Alachua
   and Volusia Counties, which are probably the strongest competitors with Marion
   County in the region. Given that it will take 2 to 3 years to create a new business
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County, Florida Business Park                                        September 2006
Market Study                                                                          Page B - 40
______________________________________________________________________________
   park, this pricing should be the guide for land pricing, subject to any changes in the
   market until new parks are actually available for sale. Pricing less than this amount
   would only make Marion County more competitive. Because of the volatility in the
   Florida marketplace, an annual escalation of 5% is reasonable, again, subject to
   actual changes in the marketplace.

8. Special Features

         We have found little demand for rail served sites in the Marion County region.
         Selection of locations for new business parks in Marion County should not be
         dependent on rail service.

         An analysis of prospect demand information does not indicate a need for unusual
         utility needs such as heavy power loads or extraordinary process water needs.
         State-of-the-art telecommunications services are a normal requirement for any
         new business park.

         Because Ocala is an urbanized area, there are numerous day care and child
         learning center opportunities in the County. Unless a business park location is
         selected that is many miles from the location of existing day care centers, or if
         there is evidence that all existing day care centers are operating at full capacity,
         there is no need to plan a day care center as part of a new business park. On
         the other hand, if a day care operator is interested in creating a day care center
         in a new park, this will be a nice extra that helps the marketability of the park.

         Installation of sidewalks or a walking/jogging trail would be a desirable feature in
         any new parks.

9. Due to the small inventory of vacant space for industrial, warehouse and office users
   in Marion County, the EDC should consider the development of a speculative, flex-
   space building as part of a new business park.

10. Demand projections for new business park environments in Marion County discussed
    above do not reflect the possibility of attracting one or more major distribution
    facilities such as have been lost by the County recently. If the EDC, County and City
    leadership determine that this is a desirable economic development target, it may be
    advisable to create a “large user business park” aimed specifically at these types of
    facilities.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
                                                                                     Appendix B-1
                                   [ON EDC LETTERHEAD]

July 14, 2006

[Inside Address]

Dear [Name]

As you perhaps know, the Ocala/Marion County Economic Development Corporation is in the
process of assessing the need for development of one or more new business parks somewhere in
the county.

This project is being undertaken for a variety of reasons, perhaps the most important of which
are to:

       Provide additional choices in reasonably priced lots for businesses already located in our
       community that need to expand, want to move from leased space to a building they own,
       or find a new location for some other reason;

       Provide a location and environment that can be used to attract additional businesses that
       will continue to grow our local economy.

Your space needs and plans are important to us in planning this development. Please take a few
minutes to complete the attached form and return it in the enclosed self-addressed, stamped
envelope or by fax to 352-291-4414.

Although we have provided a line on the following form for identifying your company so that
the consultant working on this project can get back in touch with you if necessary, feel free to
complete and return this form without identifying yourself if that is what you prefer.

As always, if the Ocala/Marion County Economic Development Corporation can be of assistance
to you, please let us know.

Thank you for your help in this most important project.

Sincerely,



Peter J. Tesch
President/CEO
                                                                           Appendix 1
                          OCALA / MARION COUNTY BUSINESS SPACE NEEDS SURVEY
Please check or fill in the boxes in the following table that best describe your business’s space needs and plans, and answer the questions below
the table. Feel free to add additional sheets with other comments.

                                                                                              If you have a need for additional or different
                                                                                                                                                   During the
  What are your space needs or                                        How much space (in          space, what will that space be used for?
                                                                                                                                               timeframe shown
            plans?                    When will you have this space square feet) do you have (If you have an estimate of the size of the space
                                                                                                                                                 to the left, how
                                             need or plan?           now and will you need for each use, please fill that in the appropriate
                                                                                                                                               many jobs do you
   (Please check the box(es) below                                       in the future?          column below – otherwise just check the
                                                                                                                                                     plan to:
 that best describe your space needs                                                                         appropriate box.)
               or plans)                         In     In      In                Will Need    Mfg.       Dist.    Office    R&D        Other     Add        Cut
                                     Immediate 1-2      3-5    6-10 Have Now        in the                 or                          (Please
                                               Years Years Years                   Future               Wrhse.                        specify)
    Stay in my present facility with
no plans to expand or reduce size
of space
    Expand at my current location

   Reduce space at my current
location

 Find a new location in Ocala or
Marion County

  Move from Ocala/Marion
County to a new location

   Other plans (please specify here
or on an additional sheet what those
other plans are)




Do you currently _____ own or _____ lease the space you presently operate from?                              OPTIONAL – Please identify your company so
                                                                                                             that we can contact you if necessary:
In the future, would you prefer to _____ own or _____ lease the space you will operate from?

How many employees do you currently have? ______                                                             ________________________________

Would you like a representative of the Ocala-Marion County Economic Development Corporation to contact you? ____ Yes ____ No
Ocala/Marion County, Florida
       Business Park

          Part C
      Impact Analysis


        October 2006
        Ocala/Marion County, Florida Business Park
                Part C - Impact Analysis



                                   Table of Contents

Section                                                                Page

Summary of 10 Year Development and Benefits                             C-1

Introduction                                                            C-2

Assumptions                                                             C-2

Benefits From New Business Park Development                             C   -   3
   10. Land Sale Revenue                                                C   -   3
   11. Building Construction                                            C   -   4
   12. Construction Value                                               C   -   5
   13. Taxes Paid to the County                                         C   -   5
   14. Taxes Paid to the City                                           C   -   6
   15. Taxes Paid to the School Board                                   C   -   6
   16. Job Creation                                                     C   -   6
   17. Wages Paid                                                       C   -   7
   18. Other Economic Benefits                                          C   -   8

Associated Costs                                                        C-9

Summary                                                                 C - 10

Exhibit 1 – Ocala/Marion County Business Park 10 Year Economic Impact Projections
       Calculations                                                    C - 11
       Assumptions                                                     C - 13




______________________________________________________________________________
Garnet Consulting Services, Inc.                                           Phone and Fax:
157 Park Road                                                                860-379-7449
Pleasant Valley, CT 06063-4119                               E-mail: mwaterhouse@snet.net
        Ocala/Marion County, Florida Business Park
                Part C - Impact Analysis

           SUMMARY OF 10 YEAR DEVELOPMENT AND BENEFITS

                     Category                        10 Year Measure
Acres Sold                                               450 Acres
Building Construction (includes base
                                                    4,628,000 Square Feet
buildings and additions)
Construction Value                                         $262,936,960
Taxes Paid to County                                        $12,191,783
Taxes Paid to City (if in the City limits)                  $10,417,493
Taxes Paid to School Board                                  $14,442,433
Direct Jobs Created                                          7,636 Jobs
Indirect Jobs Created                                        5,781 Jobs
Direct Wages Paid                                         $1,129,195,782
Indirect Wages Paid                                        $656,627,347
Other Benefits Not Quantified                Building permit fees
                                             Entitlement and impact fees
                                             Utility fees paid to the City and County
                                             Non-ad valorem assessments such as
                                             the City’s fire service charge
                                             Purchases of goods and services by
                                             companies in the new business parks
                                             from other businesses in the City and
                                             County
                                             Use of infrastructure improvements
                                             necessary to service a new business
                                             park to provide extensions or
                                             improvements of utilities and roads in
                                             underserved parts of the County
                                             Eligibility for grants to pay for
                                             infrastructure improvements




______________________________________________________________________________
Garnet Consulting Services, Inc.                                           Phone and Fax:
157 Park Road                                                                860-379-7449
Pleasant Valley, CT 06063-4119                               E-mail: mwaterhouse@snet.net
        Ocala/Marion County, Florida Business Park
                Part C - Impact Analysis
Introduction

One or more new business parks have been proposed for development in Ocala/Marion
County, Florida area. Across the country, business parks are developed by both the
private and public sectors. No matter who the developer is, the host community
expects that the creation of a new environment for businesses will result in economic
and other benefits for the community.

The most common reasons for a community to invest in economic development are:

         To stimulate capital investment that yields additional tax revenues to the host
         community;

         To improve employment opportunities, either in terms of the number or quality
         of jobs in the area; or

         To assure that goods and services desired by local residents are conveniently
         available.

This document, which is accompanied by a spreadsheet showing the detailed
calculations (see Exhibit 1), estimates the benefits the City of Ocala and Marion County
can anticipate if one or more new business parks are developed. As specific sites have
not yet been identified for development as business parks, the amount of land available
for development is unknown at this time. Therefore, we have prepared an analysis of a
10 year development scenario that could pertain anywhere in the County.

Assumptions

Analyses such as these are dependent on many assumptions. While an attempt is
made to base these assumptions on known factors wherever possible, there are many
areas where an assumption must simply be made. Such assumptions should be
reasonable, justifiable and defensible. A list of Assumptions and Explanations
accompanies the spreadsheet that provides the calculations (see Exhibit 1).

A primary assumption on which this analysis is based is that once the business park(s)
become available, an average of 45 acres per year will be sold for development.
Typically land absorption in a new business park occurs in a bell curve, starting slowly
because the project is new and competing with other opportunities, developing more
rapidly in the middle of the absorption cycle, and then slowing down again as more
difficult to develop land is left. This is not likely to be the case in Ocala/Marion County
because of historic development averaging 40 – 50 acres per year, lack of competing
inventory, and pent-up demand that is likely to result as a new park is created while
existing limited land resources are depleted.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                               October 2006
Impact Analysis                                                                    Page C - 3
______________________________________________________________________________
A second primary assumption that follows from the first is that construction of new
building space will average 260,000 square feet per year. This reflects the continuation
of new building construction assisted by the Ocala/Marion County Economic
Development Corporation (the EDC) at the same nearly 243,000 square feet per year as
has occurred the past 10 years, plus an allowance of 17,000 square feet of speculative
construction each year the EDC has not assisted, but which may occur in a new
business park if it is created.


Benefits from New Business Park Development

We estimate the following economic impacts (see Exhibit 1 for more detailed
information):

1. Land Sale Revenue

No matter whom the developer of a new business park is, land sale revenue is one of
the primary sources of return on investment (ROI).

In calculating land sale revenue, a base rate of $150,000 per acre was used to reflect
current value of land in close proximity to I-75. It is possible that this value will
increase during the 2 to 3 years it will take to have a new park available for land sales.
On the other hand, a frequent tactic in stimulating interest in a new business park is to
price the land somewhat below market rate. An annual escalation factor of 5% was
assumed to reflect the rising land values in Florida and Ocala/Marion County. This
pricing reflects smaller lots in the 2 – 10 acre range which have been typical for the
Ocala/Marion County marketplace.

Exhibit 1 shows Year 1 land sale revenues of $6,750,000 (45 acres x $150,000 per
acre), rising over time to $10,471,465 in Year 10, and totaling $84,900,775 over the 10
year period. Prospective developers must decide whether this level of land sale
revenue provides an adequate ROI to cover development costs, which are not known at
this time.


2. Building Construction

There are two aspects of building construction that occur in business parks:

    1. The construction of the initial or base buildings; and
    2. Additions to those base buildings over time.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Impact Analysis                                                                   Page C - 4
______________________________________________________________________________
As previously noted, we have assumed that Marion County will average 260,000 square
feet of new construction per year, reflecting a continuation of the same level of new
construction projects assisted by the EDC over the past 10 years, plus an allowance for
speculative development by developers not assisted by the EDC. It would not be
surprising if the level of construction activity actually increases if additional business
park environments are created, but we have not made that assumption.

No project data was available to show the annual amount of construction of building
additions. We have made the assumption that no additions will be constructed until the
third year of a new park, but thereafter will average 15% of the cumulative square
footage already in the park. This reflects the fact that purchasers of property for new
construction typically buy lots that allow expansion of the initial building by 50% to
100%.

Exhibit 1 shows cumulative building construction activity starting at 260,000 square feet
in Year 1, and increasing to 650,000 square feet in Year 10, with a total of 4,628,000
square feet of construction over a 10 year period. This represents just over 106 acres
of buildings (if all construction is single story), which would equal less than a 24%
coverage of 450 acres in developable business park lots, at the low end of typical land
coverage for business parks.


3. Construction Value

As discussed in the Market Study for this project, the Ocala/Marion County area
historically has a mix of construction types, predominantly manufacturing and
warehouse distribution projects, with a small amount of office. This trend is expected
to continue; a breakdown of the annual construction activity at 50% manufacturing,
45% warehouse/distribution and 5% office was used.

Based on input from EDC staff and local developers, construction costs were estimated
to be $60 per square foot for manufacturing buildings, $45 per square foot for
warehouse/distribution buildings and $100 per square foot for office buildings. Pricing
for medium sized buildings was used. These prices are inclusive of all site preparation
and lot improvements associated with the building construction. An annual escalation
in construction costs of 3% was assumed.

Under these assumptions, the value of construction in new business parks in
Ocala/Marion County would total $14,365,000 in Year 1 and would increase to
$36,989,875 by Year 10. The cumulative value of construction (both base buildings and
additions) would total $262,936,960 over the 10 year period.



______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                               October 2006
Impact Analysis                                                                    Page C - 5
______________________________________________________________________________
4. Taxes Payable to the County

Marion County would derive revenues from real property taxes, personal property taxes
and law enforcement taxes.

The initial construction value of buildings was used as the basis for the market and
taxable value of the buildings. No attempt was made to estimate either the escalation
of market value over time or changes in the County’s mill rate. Therefore, the estimate
of real property taxes to be derived is lower than will most likely actually occur. It was
assumed that taxes would be due the year construction occurred.

The value of a business’s personal property (including machinery and equipment) varies
widely. Machinery and equipment is subject to both depreciation and replacement at
varying rates. Based on experience in other locations, the assumption was made that,
on average, the value of personal property would be 10% of the value of the real
property.

Current mill rates of $4.57 per $1000 market value for real and personal property and a
Law Enforcement millage of $2.28 per $1000 of both real and personal property were
used in the calculations.

Real estate taxes paid to the County will be $96,496 in Year 1, increasing to $1,589,618
in Year 10 and totaling $7,625,079 over the 10 year period.

Personal property taxes paid to the County will be $9,650 in Year 1, increasing to
$158,962 in Year 10 and totaling $762,508 over the 10 year period.

Law enforcement taxes paid to the County will be $48,142 in Year 1, increasing to
$793,070 in Year 10 and totaling $3,804,197 over the 10 year period.

Total taxes paid to the County will be $154,287 in Year 1, increasing to $2,541,650 in
Year 10 and totaling $12,191,783 over the 10 year period.


5. Taxes Payable to the City

These calculations are only applicable if the site(s) selected for business park
development are currently within the City of Ocala or are annexed into the City. If this
is the case, the City would derive both real and personal property taxes.

The same assumptions and limitations as described above in the section on Taxes
Payable to the County apply to Taxes Payable to the City. The City’s current mill rate of
$5.676 per $1000 of value pertains.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                                 October 2006
Impact Analysis                                                                      Page C - 6
______________________________________________________________________________

Presuming the new business park is located within or annexed into the City:

         Real estate taxes paid to the City will be $119,849 in Year 1, increasing to
         $1,974,327 in Year 10 and totaling $9,470,448 over the 10 year period.

         Personal property taxes paid to the City will be $11,985 in Year 1, increasing to
         $197,433 in Year 10 and totaling $947,045 over the 10 year period.

         Total taxes paid to the City will be $131,834 in Year 1, increasing to $2,171,760
         in Year 10 and totaling $10,417,493 over the 10 year period.


6. Taxes Payable to the School Board

The County School Board collects taxes on both real and personal property at the rate
of $7.869 per $1000 of value. The same assumptions and limitations pertaining to the
calculation of tax revenues for the County and City pertain here.

Real estate taxes paid to the School Board will be $166,154 in Year 1, increasing to
$2,737,135 in Year 10 and totaling $13,129,485 over the 10 year period.

Personal property taxes paid to the School Board will be $16,615 in Year 1, increasing
to $273,714 in Year 10 and totaling $1,312,948 over the 10 year period.

Total taxes paid to the School Board will be $182,769 in Year 1, increasing to
$3,010,849 in Year 10 and totaling $14,442,433 over the 10 year period.


7. Job Creation

New jobs resulting from development of business parks are counted both as direct jobs
– that is, those created by companies locating in the park – and indirect jobs, which are
multiplier effect jobs caused by purchases of goods and services by the businesses in
the park and their employees.

Our estimates of direct job creation reflect the differing types of space anticipated (50%
manufacturing, 45% warehouse/distribution and 5% office) and the typical average
number of jobs created by these different uses (2 per 1000 square feet for
manufacturing use, 1 per 1000 square feet for warehouse/distribution use and 4 per
1000 square feet for office use).

Based on the estimated construction (both base buildings and additions) and these
assumptions related to typical job creation by use, we estimate that the development of
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Impact Analysis                                                                   Page C - 7
______________________________________________________________________________
one or more new business parks will result in the creation of 429 new direct jobs in
Year 1, increasing to 1073 new direct jobs created in year 10 and totaling 7636 new
direct jobs over the 10 year period. Obviously, this number is subject to modification if
the mix of business types changes from the assumption used.

Indirect or multiplier effect jobs are estimated based on US Bureau of Labor Statistics
RIMS II multipliers for North/Central Florida based on the mix of manufacturing,
warehouse/distribution and office jobs assumed under Direct Job Creation. A
manufacturing jobs multiplier of 2.07 was calculated as the average multiplier for all
types of manufacturing in the North/Central Florida area. The warehouse and storage
jobs multiplier of 1.45 was used. An office jobs multiplier of 1.48 was used
representing the average for professional, scientific and technical services jobs and
administrative and support services jobs. (In using multipliers, it is important to
understand that the number reflects both the direct and indirect jobs for the category.
Thus, the 2.07 multiplier for manufacturing jobs reflects 1 direct job which causes 1.07
indirect jobs.)

Based on these factors, we project that the creation of one or more new business parks
will result in the creation of 325 new indirect jobs in Ocala/Marion County in Year 1,
increasing to 812 new indirect jobs in Year 10, and totaling 5781 new indirect jobs over
the 10 year development cycle.

In total, new business park development in Ocala/Marion County is expected to result in
the creation of 754 new direct and indirect jobs in Year 1 and reaching a cumulative
total of 13,417 new jobs over a 10 year period.


8. Wages Paid

New job creation obviously results in new wages; as with jobs, some of these are direct
wages paid to employees working in the business park(s) while others are the indirect
wages paid to those holding the indirect jobs. US Bureau of Labor Statistics 2005 Mean
Annual Wages (the most recent available) for all occupations in the Ocala Metropolitan
Statistical Area ($31,410) were used as a basis for calculations. Total wages equal the
$31,410 per job average amount times cumulative employment for each year. No
attempt has been made to project wage increases over time; therefore the amount
calculated is increasingly low as time goes by.

As with job creation, calculation of indirect wages uses US Bureau of Labor Statistics
RIMS II multipliers for North/Central Florida based on the mix of manufacturing,
warehouse/distribution and office jobs assumed under Direct Job Creation. A
manufacturing wages multiplier of 1.78 was calculated as the average multiplier for all
types of manufacturing. The warehouse and storage wages multiplier of 1.38 was

______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                               October 2006
Impact Analysis                                                                    Page C - 8
______________________________________________________________________________
used. An office wages multiplier of 1.41 was used representing the average for
professional, scientific and technical services jobs and administrative and support
services jobs. (As with the jobs multiplier, the numbers used include both direct and
indirect wages. Therefore, the 1.78 multiplier for manufacturing wages means that for
every $1.00 in direct wages, an additional 78¢ in indirect wages are paid.)

Direct wages paid to employees of companies located in new business parks are
calculated to total $13,474,890 in Year 1 for 429 direct jobs, increasing to $239,853,042
in Year 10 for a total of 7636 direct jobs in Year 10. Cumulative direct wages paid over
the 10 year timeframe would be $1,129,195,782, not adjusted for wage increases in the
future.

Indirect wages paid to employees of other businesses in the area whose jobs are a
result of the creation of the business parks are calculated to total $7,835,649 in Year 1
for 325 indirect jobs, increasing to $139,474,544 in Year 10 for a total of 5781 indirect
jobs in Year 10. Cumulative indirect wages paid over the 10 year timeframe would be
$656,627,347, not adjusted for wage increases in the future.

Total direct and indirect wages would be $21,310,539 for 754 jobs in Year 1, increasing
to $379,327,586 for 13,417 jobs in Year 10. Cumulative direct and indirect wages paid
over the 10 year period would total $1,785,823,130, again, not adjusted for inflation.


9. Other Economic Benefits

There are many other economic benefits for the County and the City (if the business
park location is in the City limits) to be derived from development of one or more new
business parks that we have not calculated but that should be noted:

    Building permit fees
    Entitlement and impact fees
    Utility fees paid to the City and County
    Non-ad valorem assessments such as the City’s fire service charge
    Purchases of goods and services by companies in the new business parks from other
    businesses in the City and County
    Use of infrastructure improvements necessary to service a new business park to
    provide extensions or improvements of utilities and roads in underserved parts of
    the County
    Eligibility for grants to pay for infrastructure improvements




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                               October 2006
Impact Analysis                                                                    Page C - 9
______________________________________________________________________________
Associated Costs

While the purpose of this analysis is to assess economic benefits caused by
development of one or more new business parks, we would be remiss in not noting that
there are also certain costs that come from this type of development. In particular we
would note:

    The substantial expenses required to acquire, master-plan, obtain permits and
    approvals, construct infrastructure, market and manage the business park(s). In
    some places, these costs are borne by a private developer. In other places, an
    economic development organization like the EDC is the developer. In many
    instances, a private developer looks for financial assistance from the community to
    make the project happen most cost effectively. The bottom line here is that if
    additional business parks are to be created in Ocala/Marion County, resulting in the
    benefits discussed above, someone is going to have to invest a significant amount of
    money.

    Any large scale development such as a business park has impacts on traffic in the
    immediate vicinity of the park. We have projected that a 500 – 550 acre park, of
    which 450 acres would be lots for individual buildings, would grow to more than
    7600 workers over a 10 year period. Even if these workers are spread out over
    multiple shifts, their arrivals and departures, coupled with trucks serving the
    businesses, will add traffic to local roads. Both traffic safety and alleviation of
    congestion must be addressed in park master planning.

    Use of infrastructure capacity also occurs from development. Creating more
    infrastructure capacity costs money. However, infrastructure is usually planned and
    constructed to allow for future growth and the development process required in
    Florida anticipates this need and includes a process for paying for infrastructure
    improvements necessitated by development.

    Another common concern from large scale development is the loss of greenspace
    and change in the character of the area being developed. Community members
    must recognize the difference between dedicated greenspace – that is, land set
    aside from development for the express purpose of providing open space – and land
    that is currently undeveloped but is intended for development at some point in the
    future.

    Development of any kind can be expected to create additional use of community
    services such as police, fire services and emergency medical services. However,
    national statistics clearly show that business development generally pays more in
    taxes than it consumes in community services, while many forms of housing
    development pay only a portion of their service costs in annual taxes.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                Phone and Fax:
157 Park Road                                                                     860-379-7449
Pleasant Valley, CT 06063-4119                                    E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Impact Analysis                                                                 Page C - 10
______________________________________________________________________________

Summary

The Ocala/Marion County area will continue to grow. It is a desirable location and it is
unlikely that actions could be taken to stop growth. Both people and businesses will
seek to move there. Not all the new residents will be retired – many will seek
employment. Businesses will need workers. Ocala/Marion County currently has an
extremely small inventory of developable sites left to accommodate new businesses.

The economic impact analysis discussed in this report shows the likelihood of significant
economic benefits to be realized by Marion County, and possibly the City of Ocala,
through the development of one or more new business parks. Primary benefits come
from taxes caused by new capital investment, new jobs that will be created (both direct
and indirect jobs) and the wages that these jobs will pay.

However, neither the County nor City will realize any of these benefits unless one or
more new business parks are developed to allow the area to continue to attract new
business investment.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
                                                          Exhibit 1
                            Ocala/Marion County Business Park 10 Year Economic Impact Projections
             Year                    1             2             3              4              5                 6              7              8              9             10         10 Year Total
          Category
Land Sales
Acres Sold Per Year                  45            45            45            45             45                45             45             45             45             45             450
Land Sale Revenue Per Year       $6,750,000    $7,087,500    $7,441,875     $7,813,969     $8,204,667        $8,614,901     $9,045,646     $9,497,928     $9,972,824    $10,471,465    $84,900,775
Construction
New Construction Per Year         260,000       260,000       260,000        260,000        260,000           260,000        260,000        260,000        260,000        260,000       2,600,000
(Square Feet)
Cumulative New Construction       260,000       520,000       780,000       1,040,000      1,300,000         1,560,000      1,820,000      2,080,000      2,340,000      2,600,000
(Square Feet)
Expansion Activity Per Year          0             0          117,000        156,000        195,000           234,000        273,000        312,000        351,000        390,000       2,028,000
(Square Feet)
Total Annual Construction         260,000       260,000       377,000        416,000        455,000           494,000        533,000        572,000        611,000        650,000       4,628,000
Activity
Total Cumulative Construction     260,000       520,000       897,000       1,313,000      1,768,000         2,262,000      2,795,000      3,367,000      3,978,000      4,628,000
Activity
Value of Construction This       $14,365,000   $14,795,950   $21,454,128   $23,673,520    $25,892,913       $28,112,305    $30,331,698    $32,551,090    $34,770,483    $36,989,875    $262,936,960
Year
Cumulative Value of              $14,365,000   $29,160,950   $50,615,078   $74,288,598    $100,181,510      $128,293,815   $158,625,513   $191,176,603   $225,947,085   $262,936,960
Construction
Taxes
Cumulative Real Estate Value     $21,115,000   $42,998,450   $71,894,453   $103,381,941   $137,479,521      $174,206,726   $213,584,070   $255,633,087   $300,376,394   $347,837,735
Real Estate Taxes Paid to         $96,496       $196,503      $328,558      $472,455       $628,281          $796,125       $976,079       $1,168,243     $1,372,720     $1,589,618     $7,625,079
County

Personal Property Taxes Paid       $9,650       $19,650       $32,856        $47,246        $62,828           $79,612        $97,608       $116,824       $137,272       $158,962        $762,508
to County
Law Enforcement Millage Paid      $48,142       $98,036       $163,919      $235,711       $313,453          $397,191       $486,972       $582,843       $684,858       $793,070       $3,804,197
to County
Total Tax Revenues Paid to        $154,287      $314,190      $525,333      $755,412       $1,004,563        $1,272,929     $1,560,659     $1,867,911     $2,194,850     $2,541,650    $12,191,783
County This Year
Cumulative Tax Revenues           $154,287      $468,477      $993,810      $1,749,222     $2,753,784        $4,026,713     $5,587,372     $7,455,283     $9,650,133    $12,191,783
Paid to County
Real Estate Taxes Paid to City    $119,849      $244,059      $408,073      $586,796       $780,334          $988,797       $1,212,303     $1,450,973     $1,704,936     $1,974,327     $9,470,448

Personal Property Taxes Paid      $11,985       $24,406       $40,807        $58,680        $78,033           $98,880       $121,230       $145,097       $170,494       $197,433        $947,045
to City
Total Tax Revenues Paid to        $131,834      $268,465      $448,880      $645,475       $858,367          $1,087,677     $1,333,533     $1,596,071     $1,875,430     $2,171,760    $10,417,493
City This Year

Cumulative Tax Revenues           $131,834      $400,299      $849,179      $1,494,654     $2,353,022        $3,440,699     $4,774,232     $6,370,303     $8,245,733    $10,417,493
Paid to City

Real Estate Taxes Paid to         $166,154      $338,355      $565,737      $813,512       $1,081,826        $1,370,833     $1,680,693     $2,011,577     $2,363,662     $2,737,135    $13,129,485
School Board This Year


                                                                                                   C - 11
                                                       Exhibit 1 - Continued
                               Ocala/Marion County Business Park 10 Year Economic Impact Projections
            Year                     1             2              3              4              5                 6              7               8                9               10          10 Year Total
Personal Property Taxes Paid      $16,615       $33,835        $56,574        $81,351       $108,183          $137,083       $168,069        $201,158         $236,366         $273,714        $1,312,948
to School Board
Total Tax Revenues Paid to        $182,769      $372,190      $622,311       $894,864       $1,190,009        $1,507,916     $1,848,762     $2,212,734       $2,600,028       $3,010,849       $14,442,433
School Board This Year
Cumulative Taxes Paid to          $182,769      $554,960      $1,177,271     $2,072,135     $3,262,144        $4,770,060     $6,618,822     $8,831,556       $11,431,584      $14,442,433
School Board
Job Creation
Annual Direct Job Creation          429           429            622            686            751               815            879             944             1,008            1,073            7,636
Cumulative Direct Job               429           858           1,480          2,166          2,917             3,732          4,612           5,556            6,564            7,636
Creation
Annual Indirect Job Creation        325           325            471            520            568               617            666             714              763              812             5,781
Cumulative Indirect Job             325           650           1,121          1,640          2,209             2,826          3,491           4,206            4,969            5,781
Creation
Annual Total Direct and             754           754           1,093          1,206          1,319             1,432          1,545           1,658            1,771            1,884           13,417
Indirect Jobs
Cumulative Total Direct and         754           1,508         2,601          3,807          5,126             6,558          8,103           9,761           11,533           13,417
Indirect Jobs
Wages
Direct Wages Paid This Year      $13,474,890   $26,949,780   $46,488,371    $68,048,195    $91,629,252       $117,231,543   $144,855,068   $174,499,826     $206,165,817     $239,853,042     $1,129,195,782
Indirect Wages Paid This Year    $7,835,649    $15,671,297   $27,032,987    $39,570,025    $53,282,410       $68,170,142    $84,233,222    $101,471,649     $119,885,423     $139,474,544     $656,627,347
Annual Total Direct and          $21,310,539   $42,621,077   $73,521,358    $107,618,220   $144,911,662      $185,401,685   $229,088,289   $275,971,474     $326,051,240     $379,327,586     $1,785,823,129
Indirect Wages
Cumulative Total Direct and      $21,310,539   $63,931,616   $137,452,974   $245,071,194   $389,982,856      $575,384,541   $804,472,830   $1,080,444,304   $1,406,495,544   $1,785,823,130
Indirect Wages
            Year                     1             2              3              4              5                 6              7               8                9               10          10 Year Total




                                                                                                    C - 12
    Exhibit 1 - Ocala/Marion County Business Park 10 Year Economic Impact Projections - Assumptions
      Category                                                              Assumptions and Explanations
Land Sales
Acres Sold Per Year      Uses midpoint of the 40 - 50 acres per year estimated in the Market Study. Does not include land usage for any major distribution
                         centers.
Land Sale Revenue        Assumes initial selling price of $150,000 per acre for land near I-75 with sales starting in 3 years. Uses 5% annual increase in land
Per Year                 value over time. Does not include write-down of land price as an incentive.
Construction
New Construction Per     Uses historical average of 242,904 square feet per year of new construction plus allowance for speculative construction which the
Year (Square Feet)       EDC was not involved in but may occur in a new business park.
Expansion activity Per   No historical data available on which to base this calculation. Assumes annual expansion activity will average 15% of cumulative new
Year (Square Feet)       building construction starting in the 3rd year of development.
Total Construction       Equals sum of annual new construction and expansion activity
Activity
Value of Construction    Assumes a continuation of historic construction mix of 50% manufacturing, 45% warehouse/distribution and 5% office. Uses current
This Year                construction value of $60 per square foot for manufacturing buildings, $45 per square foot for warehouse/distribution buildings and
                         $100 per square foot for office buildings. Assumes increase in construction costs of 3% per year.
Cumulative Value of      The sum of all new building and expansion activity over time.
Construction
Taxes
Cumulative Real          Equals sum of value of sold real estate plus construction value cumulative through each year.
Estate Value
Real Estate Taxes        Based on cumulative real estate value times current mill rate of $4.57 per $1000 at current market value. No attempt has been made
Paid to County           to project increases in market value over time. Excludes value of land in the park not yet developed. Tax value of developed lots
                         includes current value as undeveloped land.
Personal Property        Conservatively estimates value of personal property including machinery and equipment to average 10% of value of real estate after
Taxes Paid to County     both new purchases and depreciation. Based on cumulative real estate value times current mill rate of $4.57 per $1000 at current
                         market value. No attempt has been made to project increases in market value over time.
Law Enforcement          Based on cumulative real estate and personal property value times current mill rate of $2.28 per $1000 at current market value. No
Millage Paid to County   attempt has been made to project increases in market value over time.
Real Estate Taxes        Payable if the project site is in or annexed into the City. Based on cumulative real estate value times current mill rate of $5.676 per
Paid to City             $1000 at current market value. No attempt has been made to project increases in market value over time. Excludes value of land in
                         the park not yet developed. Tax value of developed lots includes current value as undeveloped land.
Personal Property        Payable if the project site is in or annexed into the City. Conservatively estimates value of personal property including machinery and
Taxes Paid to City       equipment to average 10% of value of real estate after both new purchases and depreciation. Based on cumulative real estate value
                         times current mill rate of $5.676 per $1000 at current market value. No attempt has been made to project increases in market value
                         over time.

                                                                             C - 13
    Exhibit 1 - Ocala/Marion County Business Park 10 Year Economic Impact Projections - Assumptions
       Category                                                          Assumptions and Explanations
Real Estate Taxes      Based on cumulative real estate value times current mill rate of $7.869 per $1000 at current market value. No attempt has been made
Paid to School Board   to project increases in market value over time. Excludes value of land in the park not yet developed. Tax value of developed lots
                       includes current value as undeveloped land.
Personal Property      Conservatively estimates value of personal property including machinery and equipment to average 10% of value of real estate after
Taxes Paid to School   both new purchases and depreciation. Based on cumulative real estate value times current mill rate of $7.869 per $1000 at current
Board                  market value. No attempt has been made to project increases in market value over time.
Job Creation
Annual Direct Job      Direct jobs are those created in the new business park(s). Assumes an annual average construction mix of 50% manufacturing
Creation               (130,000 square feet per year), 45% warehouse/distribution (117,000 per year) and 5% office (13,000 square feet per year). Assumes
                       manufacturing employment of 2 per 1000 square feet; warehouse distribution employment of 1 per 1000 square feet; office
                       employment of 4 per 1000 square feet.
Annual Indirect Job    Indirect jobs are "multiplier effect" jobs created elsewhere in the community as a result of direct jobs in the new business park(s). This
Creation               calculation uses US Bureau of Labor Statistics RIMS II multipliers for North/Central Florida based on the mix of manufacturing,
                       warehouse/distribution and office jobs assumed under Direct Job Creation. A manufacturing jobs multiplier of 2.07 was calculated as
                       the average multiplier for all types of manufacturing. The warehouse and storage jobs multiplier of 1.45 was used. An office jobs
                       multiplier of 1.48 was used representing the average for professional, scientific and technical services jobs and administrative and
                       support services jobs.
Annual Total Direct    This is the total of both Direct and Indirect Jobs created each year.
and Indirect Jobs
Cumulative Total       This is the total of both Direct and Indirect Jobs created over time.
Direct and Indirect
Jobs
Wages
Direct Wages Paid      Based on US Bureau of Labor Statistics 2005 Mean Annual Wages for all occupations in the Ocala Metropolitan Statistical Area
This Year              ($31,410) times cumulative direct employment for each year. No attempt has been made to project wage increases over time.
Indirect Wages Paid    Indirect wages are "multiplier effect" wages from Indirect Jobs created elsewhere in the community as a result of direct jobs in the new
This Year              business park(s). This calculation uses US Bureau of Labor Statistics RIMS II multipliers for North/Central Florida based on the mix of
                       manufacturing, warehouse/distribution and office jobs assumed under Direct Job Creation. A manufacturing wages multiplier of 1.78
                       was calculated as the average multiplier for all types of manufacturing. The warehouse and storage wages multiplier of 1.38 was
                       used. An office wages multiplier of 1.41 was used representing the average for professional, scientific and technical services jobs and
                       administrative and support services jobs.
Annual Total Direct    This is the total of both Direct and Indirect wages created each year.
and Indirect Wages
Cumulative Total       This is the total of both Direct and Indirect wages created over time.
Direct and Indirect
Wages




                                                                            C - 14
Ocala/Marion County, Florida
       Business Park

         Part D
      Types of EDO
Implementation Assistance


       November 2006
                         Ocala/Marion County, Florida
                                Business Park

  Part D - Types of EDO Implementation Assistance


                                   Table of Contents

Section                                                              Page

Introduction                                                          D-1

Providing Land for Development                                        D-2

Permits and Approvals                                                 D-3

Infrastructure and Site Planning, Design and Development              D-4

Project Financing                                                     D-5

Incentives                                                            D-5

Special Features                                                      D-6

Marketing                                                             D-6

Other Forms of Assistance                                             D-6

Examples                                                              D-7

Summary                                                               D - 10




______________________________________________________________________________
Garnet Consulting Services, Inc.                                         Phone and Fax:
157 Park Road                                                              860-379-7449
Pleasant Valley, CT 06063-4119                             E-mail: mwaterhouse@snet.net
                         Ocala/Marion County, Florida
                                Business Park

  Part D - Types of EDO Implementation Assistance
Introduction

The Ocala/Marion County Economic Development Corporation (the EDC) has been
evaluating the necessity, potential location(s) and estimated economic benefits of
establishing one of more new business parks in the County to meet both immediate and
long-term real estate needs for business expansions and recruitments.

In many locations around the country, economic development organizations (EDOs) like
the EDC are the actual developer of these business parks. Indeed, this has been true
for a number of Marion County’s neighboring counties. This is not, however, what is
contemplated for Marion County. Rather, the EDC envisions that it will play an
important role in stimulating this development, but that the private sector will have
both the primary risks and rewards from such business park development.

Prior parts of this study have demonstrated that:

         There is an unmistakable need for the development of several hundred acres of
         business park environments in order to have a chance at attracting new business
         investment in the future, both from companies new to the area and expansions
         or relocations of companies already in the area. Indeed, if new business parks
         are not created, the historical level of business investment in Marion County will
         most likely be reduced to a fraction of what has occurred over the past decade.

         The County is blessed with several good locations for business park
         development, some with owners who have already expressed an interest in
         making their land available for a business park rather than residential or retail
         development.

         The economic benefits from the development of new business parks, particularly
         in terms of taxes to the County and School Board, and potentially to the City,
         and new job creation, are substantial.

In order to turn this potential into reality, it may be necessary for the EDC to serve as a
catalyst and facilitator to attract and assist a private sector developer. This raises the
obvious question of what form that assistance may take.

As part of the research for this project, Garnet Consulting Services, Inc. used the e-mail
database of The University of Oklahoma’s Economic Development Institute (OU/EDI) to
contact 1654 economic developers who are currently attending, or who have graduated
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                  Phone and Fax:
157 Park Road                                                                       860-379-7449
Pleasant Valley, CT 06063-4119                                      E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                             October 2006
Types of EDO Implementation Assistance                                          Page D - 2
______________________________________________________________________________
from or attended OU/EDI in the past 5 years. The e-mail contact specifically stated that
Garnet was seeking examples of business parks where a private sector developer was
assisted in some way by an EDO. Where such an example was identified, more specific
information was requested on the form of the assistance.

Useful responses were received from 67 contacts, who provided information on or
suggested 84 business parks or developers as relevant examples. The parks suggested
ranged from 12 to several thousand acres; the forms of EDO assistance to a developer
did not seem to vary greatly based on project size. Most projects were in the United
States, although a few were in Mexico. Both greenfield and brownfield developments
were included. The mixture of uses was very broad.

To this research, we add our own experience, both as part of a private sector business
park developer that worked in cooperation with multiple communities, and as a
business park consultant that studies this form of development constantly.

The remainder of this report summarizes the various forms of assistance which the EDC
could conceivably provide to a private sector developer in order to stimulate the
creation of one or more new business parks in Ocala/Marion County. Not all of these
tools may be allowable in Florida, but they have been used elsewhere. It should be
noted that, in many instances, the actual assistance comes from the host
community, with the EDO serving as the catalyst to obtain the assistance for
the developer.


Providing Land for Development

    The EDO or community gives land it already owns to the developer. Often there are
    stipulations as to what the land pricing must be in order to assure maximum
    competitiveness and rapidity of development so the community receives its return of
    investment in the form of jobs and taxes quickly. There can also be a
    predetermined sharing of land sale revenue between the developer and EDO or
    community; this would be subject to any land release payments required by a
    lending institution.

    The EDO or community sells land it already owns to the developer at below market
    cost. The same elements of negotiation as discussed in the prior paragraph might
    apply.

    The EDO or community forms a joint venture partnership with a developer,
    committing land it already owns. The percentage of ownership often reflects the
    ratio of the land value from the EDO/community and the development costs paid by
    the developer.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                              Phone and Fax:
157 Park Road                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Types of EDO Implementation Assistance                                           Page D - 3
______________________________________________________________________________

    The EDO or community buys land and enters into one of the forms of agreement
    with a developer discussed in the paragraphs above. This may be from a single
    owner or multiple sources.

    The EDO negotiates a joint venture partnership between a land owner and
    developer.

    The EDO arranges a 1031 Tax Deferred Exchange between a land owner and
    developer.

    The EDO arranges at no cost to the prospective developer or pays for environmental
    audits or other activities required in order to obtain a commitment from a developer.

    The EDO pays the cost of an appraisal to help a landowner determine a selling price
    to a developer or land value contributed to a joint venture partnership.


Permits and Approvals

    The EDO coordinates a meeting of all local (and perhaps state) regulatory agencies
    to discuss project requirements with the developer and develop an agreed upon
    process for expediting project planning and approvals.

    The approval process is expedited through special meetings or other methods.

    The community waives or substantially reduces permit and approval fees.

    The EDO pays some or all of the permit and approval costs.

    The EDO provides pro bono legal services, or pays the cost of such services, to
    assist the developer through the permit and approval process.

    The EDO serves as applicant to obtain necessary zoning and land use permits and
    approvals on behalf of the developer.

    The EDO writes Zoning Regulations, Performance Standards, Covenants or other
    land use related regulations when existing regulations are inappropriate or do not
    exist.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                                October 2006
Types of EDO Implementation Assistance                                             Page D - 4
______________________________________________________________________________

Infrastructure and Site Planning, Design and Development

    The community pays the cost of extending roads and utilities to the project. This is
    perhaps the most common form of financial assistance for private developers.
    There is often an agreed upon land sale price and escalation schedule that requires
    the developer to price the land below the prevailing market rate because the
    developer does not have to recover infrastructure costs from land sales. This lower
    land sale cost is intended to make the land more desirable, leading to faster sale
    and development, resulting in the community receiving greater tax revenues sooner.
    There may also be an agreement stipulating that if the community has not
    recovered 100% of its investment from the tax increment that results from
    development of the property within a certain time period (perhaps 10 years), the
    developer is required to pay the difference in a lump sum or graduated payment
    schedule.

    The EDO or community pays all costs for infrastructure and site planning and
    design.

    The EDO or community pays the cost of environmental audits and remediation if
    necessary.

    The community takes possession of and manages road and utility infrastructure
    after the developer has installed it.

    The EDO negotiates with private utility providers to obtain utility extensions at
    reduced cost.

    The EDO applies for state or federal grants to pay project related costs, in particular,
    infrastructure development.

    The EDO pays the cost of preparing a concept plan for development of a site and
    then uses an RFQ or RFP process to solicit interested developers.

    The EDO removes unwanted structures on the project site or pays the cost of
    renovations so the structures can be used in the future.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                                October 2006
Types of EDO Implementation Assistance                                             Page D - 5
______________________________________________________________________________
Project Financing

    The EDO or community issues low cost or tax exempt bonds to pay project costs.

    The community creates a Self-Sustaining Bond, Tax Increment Financing or similar
    district for or including the project site. Bond or other project borrowing costs are
    repaid from the increased tax revenues caused by development of the site.

    The park is designated a Business Improvement District with occupant fees paying
    marketing, maintenance or other project costs.

    The EDO is an investor in the project.

    The City and/or County are investors in the project, either directly or through the
    EDO.

    The EDO facilitates the creation of a multi-entity funding group to invest in the
    project. FirstPark in Maine is a good example; 24 communities are jointly
    developing a 285 acre business park that is located in one.

    The EDO applies for grants to support the project.

    The EDO identifies and negotiates funding from other sources.

    The EDO sells low denomination bonds or stock to community members (both
    business and individuals) to support the project.

    A portion of sales tax revenue (generally ¼ or ½%) is dedicated to fund the
    project.


Incentives

    The EDO obtains special zone recognition from the state or federal government
    (Enterprise Zone, Empowerment Zone, Foreign Trade Zone, Certified Site
    Designation).

    The community gives the developer tax credits for development costs.

    The community freezes the tax assessment of the property for some period.

    The community continues to assess the undeveloped land in the park as agricultural
    or some other category with lower assessed value than industrial.
______________________________________________________________________________
Garnet Consulting Services, Inc.                                                 Phone and Fax:
157 Park Road                                                                      860-379-7449
Pleasant Valley, CT 06063-4119                                     E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                                  October 2006
Types of EDO Implementation Assistance                                               Page D - 6
______________________________________________________________________________

    The community waives or reduces impact fees.

    The community defers repayment of costs of infrastructure development borne by
    the community and is repaid as the land is developed.


Special Features

    The EDO or community develops a speculative or shell building to begin marketing
    of the park.

    The EDO develops or arranges for special features in the park such as recreational
    fields, walking/jogging/exercise trails, fire stations, community centers, technical
    college facilities, meeting/convention centers, incubator building.

    The EDO develops a centralized parking garage to allow greater development of the
    land.

    The EDO arranges or pays for development of rail sidings needed by specific
    projects.


Marketing

    The EDO has the primary marketing responsibility for the project.

    The EDO assists with marketing by featuring the project on its website, assuring it is
    included in the state inventory of available sites or similar activities. This is the most
    common and least cost form of assistance by the EDO.


Other Forms of Assistance

    The EDO prepares a market study to help developers understand the market
    potential.

    The EDO coordinates a meeting with neighborhood residents prior to submission of
    project plans for permits and approvals to address neighborhood concerns about
    project design and attempt to minimize opposition.

    The EDO serves as a design review board before the project is submitted for official
    approval and/or for individual buildings within the project.

______________________________________________________________________________
Garnet Consulting Services, Inc.                                                   Phone and Fax:
157 Park Road                                                                        860-379-7449
Pleasant Valley, CT 06063-4119                                       E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Types of EDO Implementation Assistance                                           Page D - 7
______________________________________________________________________________

Examples

The following provides some actual examples of how private sector developers were
assisted by communities and/or their EDOs in the development of business and
industrial parks. Most of the examples reported by survey respondents, or from our
own experience, are not complex arrangements; rather, the community/EDO provided
some form of assistance that was critical for making a deal come together and then
continues to assist with long-tem marketing.

1. I previously worked for The FIP Corporation, a major business park developer in
   Connecticut. A tract of land straddling the border of Meriden and Wallingford, CT
   became available. The communities made sure FIP was aware the land was
   available and asked FIP to consider becoming the developer (FIP already had one
   business park in Wallingford). The two communities agreed to pay for necessary
   road, water and sewer improvements with the understanding that FIP would price
   the land at a lower cost than would otherwise be necessary if FIP had to recover the
   cost of all infrastructure improvements. This pricing made the land less expensive
   than competitors were asking, resulting in higher interest and faster development.
   This, in turn, yielded a faster return to the communities through tax revenues. FIP
   pledged to reimburse the communities any portion of the infrastructure investment
   not recovered through the tax increment after a stipulated period. The Meriden
   Economic Development Corporation (MEDCO) asked its Assessor to continue to
   assess any undeveloped land as agricultural (its former use) rather than industrial,
   thereby reducing FIP’s tax burden on undeveloped land. MEDCO also assisted FIP
   with aggressive marketing of the park and supported applications for individual site
   plans and building permits. The planning and zoning boards of the two communities
   allowed custom subdivision of the land rather than requiring a full subdivision plan
   before approval of development.

2. The City of Geneva, IL convinced the family that owned a long-standing farm to
   allow the land to be annexed into Geneva rather than West Chicago (which also
   abutted the land) by preparing a preliminary subdivision plan and selling bonds to
   fund construction of backbone sewer, water and electric utility lines as well as
   perimeter and critical collector roads. The City, on behalf of the family that owned
   the land, obtained a State of Illinois DOT Economic Development Program grant
   (based on projected job creation) to pay half of the roadway construction. The
   annexation agreement calls for purchasers of the land to reimburse the City for
   utility and road costs on a pro-rata basis (acreage-based for storm sewers and
   detention facilities; demand-based for electric, water and sanitary sewers; actual
   front footage for road costs) payable on or before building permit issuance.
   [Information provided by Chris Aiston, City of Geneva]


______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                             October 2006
Types of EDO Implementation Assistance                                          Page D - 8
______________________________________________________________________________
3. The New Braunfels (TX) Industrial Development Corporation (NBIDC) identified the
   need for a new business park. NBIDC identified a prospective developer and
   collaborated with the developer and City officials to work out a business
   arrangement and master-plan the site. The City committed $965,000 for road
   improvements to serve the site. The developer is responsible for utility and
   stormwater management areas. The Greater New Braunfels Chamber of Commerce
   is assisting with the marketing of the park. [Information provided by Rusty
   Brockman, Greater New Braunfels Chamber of Commerce]

4. The City of Mansfield, TX and the Mansfield Economic Development Corporation
   (MEDC) committed local funding to pay the majority of the costs of road and utility
   infrastructure for the creation of the McCaslin Business Park. McCaslin (the
   developer) agreed not to sell the land above an agreed upon price per acre. MEDC
   and the City established a review board to review projects and building standards.
   MEDC assists with the marketing of the park. [Information provided by Ryan Coe,
   Mansfield Economic Development Corporation]

5. The Highlands County (FL) Economic Development Commission assisted the
   developers of the Palm Grove Business Park to obtain necessary zoning for a
   development of a business park and to receive state and federal grants for
   infrastructure (water, sewer, gas, roads and rail). The EDC helps market the
   project. [Information provided by Louise England, Highlands County Economic
   Development Commission]

6. The City of Grants Pass, OR prepared a market study that showed the need for a
   new business park. The City then approached a family that owned land ideally
   suited for this development. The family hired a local developer to do the work. The
   City obtained a state grant for the first road and matched the grant with urban
   renewal dollars. The City’s Economic Development Department assists with
   marketing. While no specific attempt is made to expedite the permit and approval
   process, they “try to treat applicant businesses more special than average ones.”
   [Information provided by Charlie Mitchell, CEcD, City of Grants Pass Economic
   Development Coordinator]

7. And finally, as one example where the EDO played a much greater role as the
   developer: The Galesburg (IL) Regional Economic Development Association (GREDA)
   committed $500,000 in earnest money to control 400 acres. GREDA signed the
   purchase agreements on the land over to the City. The City and GREDA finalized
   negotiations with the seller and purchased 350 acres. The City of Galesburg passed
   a ¼% sales tax and issued $1 million in bonds to support development of a
   business park. GREDA secured the permission to develop from the Army Corps of
   Engineers, and the Illinois Departments of Natural Resources and Transportation as
   well as the state preservation group. GREDA and the City caused the property to be

______________________________________________________________________________
Garnet Consulting Services, Inc.                                              Phone and Fax:
157 Park Road                                                                   860-379-7449
Pleasant Valley, CT 06063-4119                                  E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                           October 2006
Types of EDO Implementation Assistance                                        Page D - 9
______________________________________________________________________________
   annexed, reviewed zoning and made necessary amendments to Zoning Regulations.
   GREDA developed 4 conceptual plans for the site, one of which was selected as the
   development plan. GREDA petitioned for the extension of the local Enterprise Zone
   to include the property. GREDA led the way on infrastructure funding and secured
   nearly $5 million in local, state and federal funding. GREDA also secured more than
   $100,000 per year in City funds for marketing the property; they are considering
   listing the property with a brokerage firm with international reach. The City
   established a Business Improvement District (BID) and Commission over the
   property and appointed the GREDA Executive Committee as the BID Commissioners.
   The City Council gave the BID Commission broad authority for negotiation and sale
   of the property. The BID Commission then negotiated with a private developer to
   actually carry out the development work. [Information provided by Eric Voyles, now
   Vice President of National Business Development, Rockford (IL) Area Economic
   Development Council, and formerly Economic Development Director in Galesburg.]




______________________________________________________________________________
Garnet Consulting Services, Inc.                                            Phone and Fax:
157 Park Road                                                                 860-379-7449
Pleasant Valley, CT 06063-4119                                E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Types of EDO Implementation Assistance                                          Page D - 10
______________________________________________________________________________

Summary

There are many forms of assistance provided by economic development organizations
such as the Ocala/Marion County Economic Development Corporation, or the
community the EDO represents, that are used to interest and/or assist a private sector
developer in developing a business park. The list above, while covering many differing
forms of assistance, was drawn only from Garnet’s own experience and responses to a
survey of a large, but still incomplete, list of EDOs.

Perhaps the most common form of assistance is in the marketing of the park, once it is
completed. This is an obvious kind of assistance, since it falls into one of the primary
areas of responsibility for most EDOs.

The forms of assistance most desired by private developers are those that reduce the
cost of creating a project. The most common type of assistance here is where the
community provides some or all or the necessary infrastructure at no or significantly
reduced cost to the project. This frequently entails securing grants to pay some or all
of the infrastructure development costs.

A secondary cluster of activities revolves around providing the land at below market
cost.

A third common form of assistance is where the community takes actions to expedite
the permit and approval process. A related activity is the reduction of permit and
approval fees.

The list of potential types of assistance is limited only by imagination and the
willingness to discuss how a partnership can be formed between a developer and the
EDO/community.

Once a preferred developer has been identified, an effective approach may be
for the EDC to coordinate a meeting of the developer, County, City (if
applicable), utility and other agency staff, boards and commissions, to
discuss the project, identify areas where assistance is needed and define the
forms of assistance that the various parties are able to offer. It is much more
effective and efficient to get needs and responses identified around a “team
table” than it is to try and put a deal as complicated as a business park
together through multiple, separate discussions.

One final thought—across the country we are seeing business parks being developed by
partnerships of governments. Usually the site of the park is located in one political
jurisdiction, but others are investors in the deal. Examples range from multi-county

______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net
Ocala/Marion County Business Park                                              October 2006
Types of EDO Implementation Assistance                                          Page D - 11
______________________________________________________________________________
parks in North Carolina, South Carolina, Kentucky, Illinois and Michigan (3 to 5 counties
each) to the FirstPark Project in Maine, a 285 acre business park being developed by 24
communities. This raises the potential of the City of Ocala and Marion County joining
forces to develop one or more new parks, no matter where in the County they are
located. Such an approach would both reduce the amount the City and County might
have to invest, and provide a new source of tax revenues for both.




______________________________________________________________________________
Garnet Consulting Services, Inc.                                               Phone and Fax:
157 Park Road                                                                    860-379-7449
Pleasant Valley, CT 06063-4119                                   E-mail: mwaterhouse@snet.net

				
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