Consultants say confidence—not opportunity—is main barrier to downtown investment; roundtable set for October

Consultants and volunteers told the CRA that a recent downtown survey found ample opportunity but a lack of investor confidence and lender willingness to finance projects in downtown Daytona Beach. The consultant reported 31 respondents to the survey in a two-week window; 13 respondents were downtown business or property owners.

"The key finding is that it's not a lack of opportunity. It's a lack of confidence," the consultant told commissioners, noting barriers such as financing risk, high construction costs and an uncertain return for lenders. Jack White, a downtown organizer, said the next steps include a roundtable in October to bring lenders, developers, engineers and city staff together and a series of workshops in November and December to stress-test incentives and project concepts. The consultants suggested focusing on a few pilot projects to model financing and delivery and then scaling tools that reduce project risk.

Commissioners and staff said they will participate in the roundtable and consider how CRA tools (gap financing, low-interest loans, façade grants) could be packaged to improve development prospects. The consultant also noted that 41% of survey respondents said they had delayed or abandoned a downtown project in the past, underscoring financing and process risks.