Orange County Mayor Rich Crotty’s annual address to the East Orlando Chamber of Commerce typically has been a time of unbridled optimism, highlighted by grand visions of the Innovation Way high-tech corridor.
Last year’s talk deviated from this oft-repeated theme of hope, warning business leaders that various plans put forth by the state Legislature aimed at property-tax reform could shortchange local governments like Orange County and taxpayers.
Last week’s speech focused largely on the dire consequences of the reform proposals that came to be. Combined with the sluggish economy in general and the housing slump in particular, local governments are now looking to cut services due to a drastic reduction in revenues from all sides. “Without wanting to state the obvious, we’re in an economic downturn,” the mayor said.
He went on to explain that as a result of less tax money, the county has been forced to make many tough decisions. One of them was gutting his own Our Children’s Legacy program. Mayor Crotty launched this major spending proposal in 2006 when the county was flush with extra money due to a 22 percent rise in property values in Orange County.
The new revenue would back a more complex funding plan involving bonds that would eventually provide $500 million for the program. This ambitious five-year plan was intended to pay for roads, sidewalks, bus shelters, commuter rail and environmentally sensitive lands.
The “infrastructure deficit” created by Orange County’s breakneck growth was cited by Crotty two years ago as the reasoning behind Our Children’s Legacy. In repeating the phrase at last week’s chamber luncheon, Crotty said “infrastructure deficit” continues today without a remedy in sight.
No less than half of the money to be generated by Our Children’s Legacy was earmarked for transportation improvements on the east side of town, including the expansion of Dean Road, Econlockhatchee Trail, Lake Underhill Road, Rouse Road, Valencia College Lane, Wetherbee Road and Woodbury Road, as well as a new East-West Road.
Now these projects have been delayed or postponed indefinitely, leaving the county faced with the challenge of a transportation system that cannot support future growth, he said. “Tallahassee said local governments were wasting money and lowered property taxes to stimulate the economy,” Crotty said. “But there is a lot of concern now that projects and services may be lost.”
He explained that property taxes generally support local governments, while sales-tax revenues sustain state programs. When property taxes are cut, so is the county’s budget for discretionary services outside the realm of public and safety, he said. Not all gloom and doom The floundering real estate market is the biggest factor in the revenue shortfall, he said.
However, the housing market is cyclical, and will, over time, rebound, he said. In the meantime, Orange County should respectfully, and collectively, bow in the direction of the theme parks. “If there ever was a time to celebrate tourism, this is it. Today, tourism is making the difference,” he said. Despite a slipping economy, the number of permits for new resorts and convention hotels is up, signaling confidence on the part of the hospitality industry.
Still, work is continuing behind the scenes to diversify the local economy, he said, pointing to such enterprising ventures as the University of Central Florida, Central Florida Research Park and Lake Nona’s emerging “medical city,” to be comprised of the UCF College of Medicine, VA hospital, Nemours Children’s Hospital and the Burnham Institute for Medical Research.
“There’s just a lot going on there,” he said. xpansion, Crotty cited a recent study that shows the Orange County Convention Center, the second largest in the country, is responsible for $1.6 billion in economic growth annually. Meanwhile, it is estimated that the annual economic impact of the UCF medical school alone will reach $1.4 billion after it opens, and will approach $6 billion for the medical city as a whole.
That’s a huge economic engine, he said. With a continued focus on high tech and an added emphasis on life sciences, Crotty said the county is well-positioned to attract even more like-minded businesses. And this commercial development ties in nicely with the increased attention now being paid to environment-friendly construction.
Orange County is becoming a leader in the “green” movement, last month approving the Orange to Green Development Program that encourages sustainable development in the community by offering incentives for building owners who incorporate green building techniques into the design of their projects.
“I think the future is extremely bright for Central Florida,” Crotty said. “Clean tech is going to be the next major opportunity.”
