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Board warns tax-abatement defeat could hinder recruiting employers to Edgewater
Summary
Board members said a narrow voter defeat of a tax‑abatement renewal leaves Edgewater at a disadvantage versus nearby New Smyrna Beach and could stall prospective projects that had sought abatements and job commitments.
Board members told staff they were concerned a recent voter rejection of a tax‑abatement renewal could make it harder for Edgewater to recruit industrial or headquarters employers and put some prospective projects on hold.
Ryan described a prospective company that had planned to expand at a factory‑direct site with a 40,000‑square‑foot addition and roughly 50 jobs initially (with 15 more hires over three years) that had requested property tax abatement. "It was going to bring in 50 jobs to the city, and they were gonna hire 15 over the next 3 years," Ryan said. He added that the tax‑abatement tool — a voter‑approved mechanism — failed narrowly on the recent ballot.
Members noted New Smyrna Beach has an active tool and that competing municipalities could therefore appear more attractive to relocating employers. One member said the defeat reflected a lack of public education on what the abatement tool does, while others urged that a renewed public education campaign be prepared if the city decides to put the measure back on the ballot in two years.
Ryan explained the local tax abatement applies to building value only (not land) and typically runs for a 10‑year period under council discretion for percentage. He also warned that acquiring large parcels using CRA funds can reduce tax roll revenue while holdings are owned by the city.
Next steps: Board asked staff to develop materials to educate council and the public about tax abatements and to monitor whether interested companies will proceed without the tool.
