Builders push projects in Orange in case rules change

David Damron

January 12, 2010

Builders are racing to line up development rights on major new housing and commercial projects before the proposed state constitutional Amendment 4 heads to voters this fall and, if passed, takes control of growth decisions away from elected officials.

But the current glut of unsold homes and commercial real estate is conspiring against would-be developers. They're also running up against new data showing that tens of thousands of residential units - and millions of square feet of commercial and industrial space - have already received development approval but are unbuilt.

As a result, even Orange County Mayor Rich Crotty, whose promotion of additional development has included construction of the Innovation Way corridor in east Orange County, has said it's time to take a breather. Crotty last week said he would oppose three massive projects in east Orange that are expected to seek County Commission approval this year.

"These were hard calls," Crotty said of his decision, noting that all three are outside the "urban-services area" of existing roads, water and sewer systems. "But I had to look at the big picture."

Analyses by Orlando and Orange County growth officials, requested by the Orlando Sentinel, show that elected leaders have approved construction of 93,540 new residential units that have yet to be built by developers. That's almost as many new residences as the 119,323 that exist in the city of Orlando today.

An additional 68 million square feet of office and commercial space has been approved but not built, the analyses showed. So has 51 million square feet of industrial space, and 83,732 new hotel rooms.

Development consultants and government planners caution that these "eye-opening" totals count maximum development capacities, which often never materialize. In some cases, they say, the projects got their approvals years ago and may be defunct; others won't be built out for years or decades.

Still, all sides agree that the total of already-approved projects is substantial. And the data add fuel to the long-standing debate as to whether growth is being regulated properly now.

"I hope this opens some eyes," said Suzanne Arnold, a leader of the Lake Mary Jane Alliance, a growth watchdog in Central Florida. "The county commissioners are certainly hearing from residents about this."

Given what's already approved, Arnold said, "they obviously need to put the brakes on."

Developers fear that the so-called "Hometown Democracy" measure could sharply constrict future developments by requiring voter approval of major changes in a government's comprehensive plan. So despite the glut of unbuilt (and unsold) properties, they plan to come before elected officials this year to ensure they won't have to seek voter approval.

This is especially true in east Orange, where vast expanses of pasture and woodlands would be transformed into subdivisions, town centers, and industrial and research parks under current proposals. Some would serve the "medical city" being built just north of Lake Nona; others would jump-start the proposed high-tech corridor that Crotty has dubbed Innovation Way.

At least four major projects - which would add 20,440 residential units, and millions of square feet of commercial and industrial space - are poised to come before the County Commission, including:

Innovation Way East, a mixed-use development that includes about 8,000 proposed residential units and1.2 million square feet of office, commercial and industrial space.

Camino Reale, which seeks 4,000 residences and 1.6 million square feet of office, commercial and industrial space.

Rybolt Park, which plans for 5,000 new residences, as well as a 1.1 million-square-foot research park, and more than 1 millionsquare feet set aside for office and retail.

International Corporate Park project, which envisions 1 million square feet of commercial property, 10.4 million square feet of industrial and office space, and about 3,440 residential units.

Crotty now says he will urge that only the ICP project be considered this year, in hopes it will attract new companies - and jobs - to the county.

The others, he said, should wait until at least 2012, when the economy hopefully will have improved and the recently approved SunRail commuter-rail project will be coming online to improve transportation and job opportunities.

"It's not the time to be focusing on sprawling development," said Crotty, who's term-limited after this year.

Jim Lewis, a real-estate-market consultant for the Rybolt Park project, said leaders should note that east Orange County is not suffering from the same housing oversupply issues affecting the rest of Central Florida.

The growth around the University of Central Florida, including military and simulation-research industries as well as the "medical city" development around nearby Lake Nona, points to future housing needs there, he said.

"A blanket moratorium [on approving development] would be a mistake," Lewis said.

Crotty is not proposing such a moratorium, but the mayor's opposition to the projects in the short term could have that effect.

Three of the leading candidates to succeed Crotty as county mayor next year - County Commissioners Mildred Fernández, Bill Segal and Linda Stewart - said last week that they largely agree with Crotty and likely would oppose the same three projects.

"We have so much in the pipeline and in foreclosure, it is very hard for me to conceive of approving any new major development," Fernández said.

David Damron can be reached at ddamron@orlandosentinel.com or 407-420-5311.