Allan Oakley
03-24-2006, 02:22 AM
NE Polk building boom creates jobs, opens global market, says consultant.
By MICHAEL W. FREEMAN
The Reporter Editor
FOUR CORNERS -- If the chorus of Polk County residents complaining about the impact of growth on roads, schools and the cost of living seems to be getting louder, Gordon Kettle nevertheless sees a very different side of the growth coin.
It's not that Kettle isn't aware of the concerns about rising property taxes, the soaring cost of homes, and the increasingly congested roads. But he is quick to note that the growth has brought something else to Polk: economic diversification along with a booming economy that even a few decades ago might have seemed like a pipedream.
"We're getting a much more robust economy," said Kettle. "That's why people want to come here. That's created a lot of diversification in the economy. Tourism is still a major industry, but we're adding other industries as well."
Kettle is an economic consultant to the Central Florida Development Council, and was a guest speaker last week at the Tourist Development Academy sponsored by the Polk County Tax Collectors Office, for the benefit of the region's burgeoning vacation home owners and rental property managers. The academy, titled "Four Corners of the Globe," was held at the Regal Palms Resort Clubhouse at Highlands Reserve.
"Some people think all this growth is not a good thing, but I'm here to give you different ways of looking at it," Kettle said. "I'm here to show you the impact you're having in a global economy."
Jim DeGennaro, director of business development for the Central Florida Development Council, said much of that robust growth and diversification has been happening in Northeast Polk and Four Corners. Traditionally a rural area of citrus groves, Four Corners is now better known for its upscale, luxury homes and vacation properties.
"This ain't your grandma's Polk County anymore," DeGennaro said. "We have gone from 17 percent unemployment to 4 percent unemployment -- or full employment. What's happening is we're looking a lot more like our neighbors, Orlando and Tampa."
DeGennaro said the growth in Northeast Polk in the past five years really reversed longstanding population trends in the county.
"Growth in Polk County has traditionally come from the west -- from Tampa into Lakeland," he said. "Now Orlando is really going apoplexic, and we're starting to get more people from there. That is a major, major shift in the demographics of our county."
It's a trend that means fewer and fewer citrus groves in Northeast Polk with farmers no longer able to resist the lure of selling their land for top prices, he said, adding, "That is a trend we think will continue."
That growth, and all those newcomers arriving in the region, has produced a huge change in Polk's overall economy, DeGennaro said. More people means more workers available to local industries, and more service-oriented businesses opening to provide goods for residents. That means a far more diverse employment base than ever before, DeGennaro said.
"We first started the council back in 1985," he said. "Back then, if we talked to a catfish farmer, we thought we were on to something."
Kettle said Polk's growth has been truly exponential -- from 195,139 people in 1960 to 541,840 last year.
"Over time, we added the city of Miami to Polk County," he said.
PIERRE DUCHARME/THE LEDGERGordon Kettle, an economic development consultant with the Central Florida Development Council, gives a presentation at the March 14 Tourist Development Academy Spring Seminar.
Just a decade ago, in 1995, Polk County was issuing about 2,000 building permits per year, Kettle said. In 2005 alone, Polk issued 11,000 permits for new homes.
Kettle said he's well aware that as all the newcomers crowd into the area, long-term residents are feeling a greater pinch from high housing prices and rising taxes. But he said that home prices in Polk are still affordable compared to Orlando and South Florida, which is another reason people keep flocking here.
"Over the past year, there's been a great deal of discussion over property taxes going up and impact fees going up," Kettle said. "The county government needs to pay for the infrastructure. We need to build those schools. We need to build those roads."
The benefit, he said, has been a rising labor force, which has grown from 200,000 in 1990 to 250,000 today. That means different kinds of businesses consider relocating to Polk because they know they can get the workers they need, he said.
Kettle noted that when Polk's economy was less diverse and relied more on tourism, there could be times of the year when the visitors stayed away and hospitality workers faced layoffs. That's far less likely to happen today, he said.
"We've created lots of other jobs that are year-round, and we've cut out that seasonal factor," he said, noting that fields like health services, professional and business services, information technology and transportation and warehousing are all booming industries today in Polk.
Even property managers, he noted, have 70 businesses in Polk County, employing 300 workers with a $7.1 million annual payroll.
"When you look at the economic impact, it's really tremendous," he said. "All this activity is sustaining and supporting a lot of jobs. Personally, I think we're going to remain strong here. We're going to continue to grow.
"I hate to say it," he added, "but I think we're going to look a lot like California."
Kettle said he's aware of an increasing number of factors that could potentially harm Polk's economy, including the negative impact of rising energy costs and higher interest rates, as well as "all this war and terrorism stuff that can put a damper on the economy, and on the number of foreign visitors here."
But he noted that global trends appear to be working in the region's favor.
Central Florida relies heavily on trade with foreign counties -- particularly in Latin America -- as well as on foreign visitors to the local hospitality industry and theme parks, and on foreign investors who have been buying up so many vacation rental properties, particularly the British. Kettle noted that in the past decade, the unemployment rates in Canada, Japan and the United Kingdom have been trending downward.
"More people are becoming wealthy in those countries," he said.
As for gas prices, he predicted they would not hurt the local economy.
"Markets adjust," Kettle said. "They will find alternative sources of fuel. In the long run I think the prices will go down. I think we'll switch to alternative sources of energy, and in the long run we'll be fine."
DeGennaro noted that there are still a lot of major economic development projects being planned in this region, including the North Ridge Community Development Area, which takes in a large part of Four Corners and the area off the U.S. 27 and Interstate 4 exit. This is slated to be a Community Redevelopment Area, and will include Posner Center, a large mix of commercial and residential projects in what used to be the Baseball City complex.
"With all this growth going on, what does it mean?" DeGennaro asked. "There are some challenges ahead. We need to continue to diversify our economy while continuing to court those who brought us to the dance, our citrus industry."
DeGennaro said water remains a concern. All the new subdivisions in Northeast Polk have required plenty of water, and Polk County nearly got fined $500,000 by the Southwest Florida Water Management District for overpumping there. The fine was only waived after Polk County commissioners instituted a series of conservation and education measures, including limiting outdoor water use for landscaping.
Even today, though, there are commercial licenses being held up until more water sources can be provided.
"Water and sewer is a big concern to people living in this area," DeGennaro said. "Right now, the board of county commissioners is sinking new wells into the area."
DeGennaro said there's also a growing attitude problem among those most resistant to change.
"We used to have NIMBYs," he said. "Remember them: Not In My Back Yard? Now we have BANANAs -- Build Absolutely Nothing Anywhere Near Anything."
Polk also needs more of a nightlife to attract young, educated single people.
"We need to improve arts and entertainment facilities here in Polk County so we can bring more of the young and the restless here and keep them here," he said.
Still, even with those challenges, DeGennaro concluded, "Our future has never looked brighter."
Polk County Tax Collector Joe G. Tedder said the academy was put on because of the huge influence that property managers have had in the Four Corners growth story.
"The short-term rental industry makes up over 50 percent of the Polk tourism tax money," he said. "As lodging providers, your business plays an important role in Central Florida's economic engine. Working with you, we recognize the contributions of the short-term rental industry to Polk County's growth."
It was, he said, one reason the Tourist Development Academy was formed.
"The TDA seeks to provide to vacation-home providers in the Four Corners area -- as well as all other accommodation providers doing business in Polk County -- year-round educational programs," Tedder said.
By MICHAEL W. FREEMAN
The Reporter Editor
FOUR CORNERS -- If the chorus of Polk County residents complaining about the impact of growth on roads, schools and the cost of living seems to be getting louder, Gordon Kettle nevertheless sees a very different side of the growth coin.
It's not that Kettle isn't aware of the concerns about rising property taxes, the soaring cost of homes, and the increasingly congested roads. But he is quick to note that the growth has brought something else to Polk: economic diversification along with a booming economy that even a few decades ago might have seemed like a pipedream.
"We're getting a much more robust economy," said Kettle. "That's why people want to come here. That's created a lot of diversification in the economy. Tourism is still a major industry, but we're adding other industries as well."
Kettle is an economic consultant to the Central Florida Development Council, and was a guest speaker last week at the Tourist Development Academy sponsored by the Polk County Tax Collectors Office, for the benefit of the region's burgeoning vacation home owners and rental property managers. The academy, titled "Four Corners of the Globe," was held at the Regal Palms Resort Clubhouse at Highlands Reserve.
"Some people think all this growth is not a good thing, but I'm here to give you different ways of looking at it," Kettle said. "I'm here to show you the impact you're having in a global economy."
Jim DeGennaro, director of business development for the Central Florida Development Council, said much of that robust growth and diversification has been happening in Northeast Polk and Four Corners. Traditionally a rural area of citrus groves, Four Corners is now better known for its upscale, luxury homes and vacation properties.
"This ain't your grandma's Polk County anymore," DeGennaro said. "We have gone from 17 percent unemployment to 4 percent unemployment -- or full employment. What's happening is we're looking a lot more like our neighbors, Orlando and Tampa."
DeGennaro said the growth in Northeast Polk in the past five years really reversed longstanding population trends in the county.
"Growth in Polk County has traditionally come from the west -- from Tampa into Lakeland," he said. "Now Orlando is really going apoplexic, and we're starting to get more people from there. That is a major, major shift in the demographics of our county."
It's a trend that means fewer and fewer citrus groves in Northeast Polk with farmers no longer able to resist the lure of selling their land for top prices, he said, adding, "That is a trend we think will continue."
That growth, and all those newcomers arriving in the region, has produced a huge change in Polk's overall economy, DeGennaro said. More people means more workers available to local industries, and more service-oriented businesses opening to provide goods for residents. That means a far more diverse employment base than ever before, DeGennaro said.
"We first started the council back in 1985," he said. "Back then, if we talked to a catfish farmer, we thought we were on to something."
Kettle said Polk's growth has been truly exponential -- from 195,139 people in 1960 to 541,840 last year.
"Over time, we added the city of Miami to Polk County," he said.
PIERRE DUCHARME/THE LEDGERGordon Kettle, an economic development consultant with the Central Florida Development Council, gives a presentation at the March 14 Tourist Development Academy Spring Seminar.
Just a decade ago, in 1995, Polk County was issuing about 2,000 building permits per year, Kettle said. In 2005 alone, Polk issued 11,000 permits for new homes.
Kettle said he's well aware that as all the newcomers crowd into the area, long-term residents are feeling a greater pinch from high housing prices and rising taxes. But he said that home prices in Polk are still affordable compared to Orlando and South Florida, which is another reason people keep flocking here.
"Over the past year, there's been a great deal of discussion over property taxes going up and impact fees going up," Kettle said. "The county government needs to pay for the infrastructure. We need to build those schools. We need to build those roads."
The benefit, he said, has been a rising labor force, which has grown from 200,000 in 1990 to 250,000 today. That means different kinds of businesses consider relocating to Polk because they know they can get the workers they need, he said.
Kettle noted that when Polk's economy was less diverse and relied more on tourism, there could be times of the year when the visitors stayed away and hospitality workers faced layoffs. That's far less likely to happen today, he said.
"We've created lots of other jobs that are year-round, and we've cut out that seasonal factor," he said, noting that fields like health services, professional and business services, information technology and transportation and warehousing are all booming industries today in Polk.
Even property managers, he noted, have 70 businesses in Polk County, employing 300 workers with a $7.1 million annual payroll.
"When you look at the economic impact, it's really tremendous," he said. "All this activity is sustaining and supporting a lot of jobs. Personally, I think we're going to remain strong here. We're going to continue to grow.
"I hate to say it," he added, "but I think we're going to look a lot like California."
Kettle said he's aware of an increasing number of factors that could potentially harm Polk's economy, including the negative impact of rising energy costs and higher interest rates, as well as "all this war and terrorism stuff that can put a damper on the economy, and on the number of foreign visitors here."
But he noted that global trends appear to be working in the region's favor.
Central Florida relies heavily on trade with foreign counties -- particularly in Latin America -- as well as on foreign visitors to the local hospitality industry and theme parks, and on foreign investors who have been buying up so many vacation rental properties, particularly the British. Kettle noted that in the past decade, the unemployment rates in Canada, Japan and the United Kingdom have been trending downward.
"More people are becoming wealthy in those countries," he said.
As for gas prices, he predicted they would not hurt the local economy.
"Markets adjust," Kettle said. "They will find alternative sources of fuel. In the long run I think the prices will go down. I think we'll switch to alternative sources of energy, and in the long run we'll be fine."
DeGennaro noted that there are still a lot of major economic development projects being planned in this region, including the North Ridge Community Development Area, which takes in a large part of Four Corners and the area off the U.S. 27 and Interstate 4 exit. This is slated to be a Community Redevelopment Area, and will include Posner Center, a large mix of commercial and residential projects in what used to be the Baseball City complex.
"With all this growth going on, what does it mean?" DeGennaro asked. "There are some challenges ahead. We need to continue to diversify our economy while continuing to court those who brought us to the dance, our citrus industry."
DeGennaro said water remains a concern. All the new subdivisions in Northeast Polk have required plenty of water, and Polk County nearly got fined $500,000 by the Southwest Florida Water Management District for overpumping there. The fine was only waived after Polk County commissioners instituted a series of conservation and education measures, including limiting outdoor water use for landscaping.
Even today, though, there are commercial licenses being held up until more water sources can be provided.
"Water and sewer is a big concern to people living in this area," DeGennaro said. "Right now, the board of county commissioners is sinking new wells into the area."
DeGennaro said there's also a growing attitude problem among those most resistant to change.
"We used to have NIMBYs," he said. "Remember them: Not In My Back Yard? Now we have BANANAs -- Build Absolutely Nothing Anywhere Near Anything."
Polk also needs more of a nightlife to attract young, educated single people.
"We need to improve arts and entertainment facilities here in Polk County so we can bring more of the young and the restless here and keep them here," he said.
Still, even with those challenges, DeGennaro concluded, "Our future has never looked brighter."
Polk County Tax Collector Joe G. Tedder said the academy was put on because of the huge influence that property managers have had in the Four Corners growth story.
"The short-term rental industry makes up over 50 percent of the Polk tourism tax money," he said. "As lodging providers, your business plays an important role in Central Florida's economic engine. Working with you, we recognize the contributions of the short-term rental industry to Polk County's growth."
It was, he said, one reason the Tourist Development Academy was formed.
"The TDA seeks to provide to vacation-home providers in the Four Corners area -- as well as all other accommodation providers doing business in Polk County -- year-round educational programs," Tedder said.