Time for the Deluge?
by Melissa Wells
From aviation equipment to law
enforcement, Pasco prepares for
an economic boom.

Dave Teichman, president of Aviation Instrument Technologies Inc. in Zephyrhills, likes engineering the gauges and switch dials that fill airplane cockpits around the world.
With most of the land in Pinellas County already developed and developable land becoming less available in Hillsborough, the pressure of growth continues to spill northward into Pasco County. As the Suncoast Parkway opens, providing access to a vast expanse of land in the central part of the county, a development frenzy is gobbling thousands of acres. And many of the developers, who not long ago were just names on a wish list of Pasco economic development visionaries, have well-established track records.

A report on major new developments planned throughout Pasco, recently presented at a meeting of the National Association of Industrial and Office Parks, shows more than 20,000 acres designated for future growth. In total, the land is earmarked for conversion to 43,000 residential units, 8.4 million square feet of commercial space, 5.3 million square feet of industrial, 5.2 million square feet of office space and 1,120 hotel rooms.

"It's an exciting time for Pasco," says Kathy Small, president of the Pasco Economic Development Council and community relations manager for Florida Power Corp. in Pasco, Hernando and Citrus counties. "There's something about Pasco County that appeals to people. They want to live here, maybe because there's a little more space and our style of living is a bit more relaxed. We're very conveniently located, just 30 minutes from Tampa. And with the Suncoast Parkway opening it will be easy to get to main attractions in Pinellas and Hillsborough counties. We're close to the [Tampa International] airport.

"You can drive through parts of Pasco County and see rolling hills," Small adds. "You don't see that in many places in Florida. We have very nice parks and libraries that the county commission put in place years ago. There are a lot of positives about living here. Now our focus is making sure that our people have employment opportunities so they can work where they live."

A growing number of employment opportunities are due to high technology companies opening offices in Pasco. "We have a lot of technology businesses that people are not aware of," says Small. "VLOC [a subsidiary of Saxonburg, Pa.-based II-VI Inc.] is growing crystals for laser technology, Evolutionary Vision Technology in San Antonio does software development and Pall Aerospace [a division of Pall Corporation of East Hills, N.Y.] in New Port Richey makes filters for military helicopters. These are quality companies going about their business very quietly and wonderful employers."

Aircraft controls
Another is Aviation Instrument Technologies Inc., one of five companies in the world that produces the gauges, dials and switches that fill the cockpits of aircraft. These high-tech components are being developed from the company's headquarters at the Zephyrhills Airport. Dave Teichman, president, formed the company two years ago with two employees.

"We wanted to be located at an airport, since we're in the aerospace business," he says. "We were living in New Tampa at the time and I checked out Vandenberg Airport. But Vandenberg didn't have the same facilities and Hillsborough County is a much higher cost area. We have since moved out of Hillsborough."

The main enticement offered by the Zephyrhills Airport was, Teichman says, "a very friendly airport environment. We have excellent access all over the world and reasonable labor costs. But mainly it was a pro business airport and airport industrial park environment."

The company currently has 17 employees who design and develop custom electronics for aircraft and simulators. "We're unique," says Teichman. "We do the smorgasbord of dials and switch panels in the cockpit. Our instruments are used on the C-5 Galaxy (the largest airplane in the world, used for military transport, manufactured by Lockheed), the F-18 Hornet, E-2 Hawkeye, B-22 Osprey (half helicopter and half airplane with a tilt rotor built by Boeing), C-130 Hercules military aircraft and DC-9s and Boeing 727s for Northwest Airlines."

Each person on staff is an electronic technician, "involved in mechanical and software development and electronics engineering," Teichman says. "We haven't had any difficulty finding them. Most have been local, although some have come from as far as Brooksville and Orlando. This is not an overly regimented workplace. We have a very creative environment and good creative opportunities. We have fun projects to work on. That seems to do the trick. Engineers like this stuff."

AITI's facility includes more than 15,000 square feet of office space, engineering production, a research and development laboratory and a hangar. "We do a lot of R&D here," says Teichman. "We're very low production. This is specialty items, non-recurring engineering. We have an expansion planned in 2002 to go to 40,000 square feet in the airport industrial park. We have an interim build-out adding 7,000 square feet onto our current building. We're adding an employee each month."

Annual revenues are currently $1.5 million. "We expect to double sales every year in the foreseeable future," Teichman says. "I've been in this industry for years and struck out on my own here. We have two competitors in the United States, one in France and others that pop up now and again."

Another technology firm has had its eyes on Pasco and recently moved from a 35,000-square-foot manufacturing facility in Tampa to a new 48,000-square-foot facility in West Pasco Industrial Park in Odessa. Florida Computerized Machining Inc., with 73 employees, manufactures parts for the aircraft loading industry, as well as for microwave, satellite and Internet communications companies throughout the nation.

"We've been trying to move here for nine years but as we'd expand, we'd invest in new equipment. It got so inefficient at our other [Tampa] facility that we just had to make the move," says Greg Roan, the company's president. "I like this area in general. We're just four miles from the Suncoast Parkway and that will help tremendously with getting to Clearwater and Tampa."

Last year the company had annual sales of $5.5 million. "This year we'll be at $6.25 million and project between $8 million and $9 million next year," Roan says. "We have a contract now that will be long-term, requiring installation crews. We're adding employees for that and will add more in welding. We're running three shifts now, which we didn't do at the old facility. Within two months we'll add 12 to 15 people."

While gearing up for more business, Roan is also preparing to acquire other firms. "We hope to close soon on a Tampa company that provides services we don't have right now," he says. "This will make us more diverse for our customers and bring capabilities in-house that we don't have. We'd build another facility for that company. We can add another 40,000 square feet at the back of this building."

Thirteen years ago, when Roan started the company, "I rented 5,000 square feet and thought it would be enough forever," he says. "In less than 10 years we were at 35,000 square feet and cramped. I didn't want to limit myself here and say that 48,000 square feet would be our max."

Also not placing any limitations on future growth, Welbilt Corporation is already adding another 15,000 square feet of office space and 2,000 square feet of warehouse space at its new technology center in Trinity Oaks Commerce Park. This is the site responsible for research and development for the international firm's food service equipment. The research division of the company relocated from Oldsmar two years ago.

"We've added onto the technology building once and are in the process of adding a second time," says Jerry Sank, the company's manager of the technology center. A separate building has been added at the technology center to accommodate the relocation of the company's corporate headquarter offices from Stamford, Conn.

Bending metal
Another relocation from Oldsmar occurred when Stainless Fabricators Inc. recently moved from its 18,000-square-foot manufacturing plant to a new 25,000-square-foot facility in Suncoast Industrial Park in Odessa. "I like this area," says Keith Binney, the firm's president. "It's less congested. We built twice the building for two-thirds the money you can in Pinellas, and taxes here are 6 percent instead of 7. That makes a difference when you're rolling in the materials that we do."

Those materials are used for manufacturing "a multitude of stainless steel products used in the marine industry," Binney says. "We're an original equipment manufacturer for companies like Chris Craft, Monterey, U.S. Marine and Regal. We make bow rails, ladders, any plate or tubular product on a boat built out of stainless steel or aluminum."

The company currently has 40 employees and annual revenues of $3 million. "We hope to go to $5 million," says Binney. "We're working to be a 50/50 business in marine and commercial. We also do exotic metal work for luxury homes and we work with Disney and Universal. We did all the handrails in the Islands of Adventure area, the Dr. Seuss ride and Poseidon's Fury. We create exotic stainless steel water fountains and did the lightning bolts at PSCU [Payment Systems for Credit Unions Inc.] in St. Petersburg.

"We now have a commercial division in this building," adds Binney. "Our biggest thing here is bending of material. We have equipment a lot of people don't have."

VLOC, a subsidiary of Saxonburg, Pa.-based II-VI Inc., grows crystals for laser technology in its two-year-old facility in Trinity Commerce Park.

Cadence Manufacturing Inc. isn't bending metal but instead builds the cases that protect valuable equipment during transport. The Grand Rapids, Mich.-based company has recently expanded at West Pasco Industrial Park into a 15,000-square-foot facility. "We started nine years ago in Tampa and moved here five years ago," says Mike Sullivan, general manager. "We were in 8,000 square feet before. No one envisioned the growth that has occurred. We've improved customer service and employee attitudes."

The company has 27 employees producing transit protective cases for specialty equipment. "The rock music industry uses our cases," Sullivan says. "But anybody in business can use our cases in some form, especially for trade shows, the medical industry and computer cases for CPUs and monitors.

"Our primary exports go to Puerto Rico, the Caribbean and Canada," says Sullivan. "The South American market is starting to grow quite a bit. We do a lot of custom work. That's where customer delight comes in. We put a lot of time into designing our product."

Design innovations have meant increased business and growth of the corporate headquarters for Coastal Craftsman Aluminum Inc. The manufacturer of swimming pool enclosures recently occupied its new 22,000-square-foot building in Hudson. The company has 140 employees, 80 of them working at the new corporate headquarters in Pasco. Other offices are in Orlando, Sarasota and Ocala.

"We have patented a pool enclosure system, Aqua-Closure, with sliding screen panels for northern markets," says Bill Woodard, the company's president. "We've installed it in Wisconsin, Michigan and New York. The system holds up to snow loads because the panels slide down."

Although Woodard sees a viable market for this new product, it's a different product line that has spurred the current level of growth at the company. "Our Alumi-Guard line of ornamental aluminum fencing and gates is really taking off," he says. "With this expansion we've brought a powder coating line in-house. We were outsourcing that before. With this business we'll employ an additional 50 to 60 people in the next two years."

Annual revenues at the company are $10 million. "Our sales have tripled in the last five years," says Woodard. "This is a result of adding branch offices and the Alumi-Guard system. If the economy stays the same, we should do $14 million, in 2003, with the growth potential that Alumi-Guard has. And next year Aqua-Closure becomes a priority."

Woodard, like most everyone else in Pasco County, is looking forward to the opening of the Suncoast Parkway. "It will help us with access to Tampa," he says. "It should cut the drive time by 30 percent. We do a lot of work in north Hillsborough and Pinellas counties."

This is not a Harley
Considering the 110-horsepower motorcycles built at Royal Ryder Motorcycle Manufacturing Co. in Hudson, drive times are not as much of a consideration. The concern is more along the lines of avoiding speeding tickets. The manufacturer of custom-built motorcycles recently expanded into a 10,000-square-foot facility in County Line Industrial Park. "Our bikes are totally different from a Harley," says Randy Manescalchi, the company's president. "Our tires range from 200 to 250 mm. Their largest is a 130-mm. tire. Our bikes have a 5-inch longer stretch chassis, and Harley motors are 60 horsepower."

The price tag doubles that of a Harley, as well. The six-employee company builds "about 35 bikes a year," Manescalchi says. "It takes about two to three months to build a bike. Our customers choose the wheels, motor size, tire width in back, paint scheme and alligator or leather seat. We never have an inventory. Everything is built to our customers' specifications."

The company tripled in size with this expansion. "I like the area," says Manescalchi. "It's affordable. I hope the Suncoast Parkway will drive up the value."

And that echoes the thinking of several large developers mobilizing to build residential, commercial and office space along the Suncoast Parkway.

Tampa developer Ken Morin is in the process of getting regulatory approvals for Suncoast Crossings, a development of regional impact (DRI) that includes 688 acres that he expects will be zoned for 1,319 residential units, 1.2-million square feet of office space, 625,000 square feet of commercial space and 250 hotel rooms.

The Hogan Group, developers of the Channelside entertainment complex in downtown Tampa, will develop the office component at the southeast corner of State Road 54 and the Suncoast Parkway. "The North Pointe at Suncoast Crossings will be a first-class corporate office park," says John Twomey at the Hogan Group. "We've begun conversations with companies and will either build a single-tenant build-to-suit or a building that is at least 50-percent preleased."

Twomey has high hopes for the location. "That's going to be the new interchange and destination for Pasco County. The southern tip of our property touches the Hillsborough County line," he says. "It's the first exit into Pasco from Hillsborough and it's still just 20 minutes from Tampa International Airport, with no traffic lights in between locations. This is the next logical step.

"Going along State Road 54 in each direction are a number of newly planned residential communities," Twomey adds. "Going north there are no prime commercial corners left in Hillsborough County, so this is the next one to the north. It's literally minutes from Cheval and Calusa Trace. It's a natural progression to the north and we're excited about being in Pasco County."

Twomey likes the pending partnership with developer Ken Morin. "I was involved with selling Morin the Tampa Jai Alai site that he developed into a Home Depot and a Sam's Club," he says. "We've worked together on various projects. He's done a great job of assembling this property and taking it through the regulatory process and making it available to developers like ourselves."

Also on SR 54, West Pasco Industrial Park continues to grow as new companies relocate to Pasco.

"In addition to the 16 lots we've just opened, we'll add another 45 lots in the next 12 months," says Bill Weatherford, vice president at Marlin Commercial Inc. "We have plenty of room to accommodate industrial demand. There's steady interest. We've sold more lots in the last two years than we did in the previous 10. Barring unforeseen changes in the economy, we'll see fairly steady growth. The time is right to be in West Pasco. Everybody knew this was coming."

New office parks
Other projects soon expected along SR 54 include Long Lake Ranch, a mixed-use development of 1,941 residential units, two million square feet of retail space and 304,000 square feet of office space. And Clearwater-based E&D Land Corp. is in the process of obtaining regulatory approvals for Sun Lake Centre, plans for which include 1,340 residential units, 783,000 square feet of retail and 340,000 square feet of office space.

"People are now interested in doing office park development in Pasco," says Mary Jane Stanley, executive director at the Pasco Economic Development Council. "No one has been willing to tackle that until now. Now we're coming up on more radar screens.

"Many companies want to be close to Tampa but don't need to be in Tampa," Stanley says. "They want access to Tampa International Airport, universities and a large labor market. When you look at the numbers, it's more affordable to be in Pasco. We have lower impact fees, competitive land prices and large parcels of developable land. Corporate executives are moving into our higher end residential communities. The Wesley Chapel area is just booming and we still have land available."

Stanley admits that with all the growth in the area the public school system has significant challenges ahead. "There's a crunch on our school system," she says. "And there's a lot of demand on our infrastructure. State Road 54 is being widened from U.S. Highway 41 to I-75. That will open soon. And Interchange 56 will open later this year."

The next Suncoast Parkway interchange north of SR 54 is beginning to bustle, too. Houston-based GBY Inc. is seeking regulatory approvals for Suncoast Corporate Park, a 480-acre development at the Suncoast Parkway and SR 52. "We're positioned in the path of progress," says Gene Santella, a commercial real estate broker at DUTTERealty.com, the company in charge of marketing the office park. "GBY has owned this site for years. There's interest in this area because a lot of the land along SR 54 is pretty well spoken for in terms of residential and retail."

The development includes 460 residential units. "Development is driven by rooftops and they're not there yet," Santella says.

But they're coming and not just at Suncoast Corporate Park. The Conners family, which owns 8,600 acres at SR 52 near Land O' Lakes, is planning to develop Connerton, a mixed-use development that will include 15,000 homes, two million square feet of commercial space, 1.5 million square feet of office space and 1.1 million square feet of industrial. "They've set aside 195 acres for education and 27 acres for a hospital," Stanley says. "This will be a 25- to 30-year build out."

Another group of local developers, with partners in Texas, Las Vegas, Charlotte, N.C., and Jacksonville, is developing Indian Lake Ranch in the same general area. Plans for the 712-acre mixed-use development include 991 residential units and more than eight acres for commercial space. "This site has the 75-acre Little Moon Lake and rolling hills," says Henry Blanton, president and general partner at American International Alliance Ltd. Partnership. "It's a 20-minute drive from Citrus Park Town Centre and 35 minutes to Tampa International Airport and the Westshore business district.

"This area around the Suncoast Parkway is going to take off," Blanton says. "South of Ridge Road the government has purchased 22,000 acres that will not ever be developed. That land will be turned into state and county parks. Our homesites will front on a lake or conservation area. It will be a couple years before the commercial development begins."

Growing east of I-75
East of I-75 along SR 52, One Pasco Center has enjoyed "considerable activity," says Al Fluman of Brooksville-based Pearson Industries. "Shortly, the State Department of Transportation will improve the intersection of SR 52 and I-75. That will enhance the area further. We're close enough to serve and be served by the entire Tampa Bay area. Land prices are more user-friendly and the general appearance and atmosphere of the corporate park are attractive. We're not that far away from the rest of the action."

Pearson continues its spec building program of 10,800-square-foot warehouses that are then leased or sold. "We currently have construction ready to begin on a warehouse when we receive permits," Fluman says. "S&R Fastener Inc. has purchased a two-acre lot and we'll start construction on a 10,800-square-foot build-to-suit for them. They're coming from Largo. We're also going to build a 20,000-square-foot warehouse for International Trading & Tool Inc. They're currently in Pinellas County."

The Brooksville-based developer also builds at the Zephyrhills Airport. "We're building a spec warehouse there," says Fluman. "We'll use the same program that Pearson Industries has used at One Pasco Center over the past three or four years. This is the size building that we've found to be acceptable by a larger group of small manufacturers or distributors who move in with little or no modification. It would be nice to have some buildings at both locations right now."

There are also plans to build Copeland Industrial Park in Zephyrhills. "We've pulled the permits to build a 25,000-square-foot speculative warehouse," says local developer Al Biston. "We have 40 acres for putting up more buildings. We're so confident that we brought in city water. We bore the cost of that because we knew it would be more attractive to people coming in."

And it's not just developers who are anticipating growth in Pasco County.

Educators at Pasco Hernando Community College are building a $6-million law enforcement training facility at the Dade City campus. "It will contain a mock courtroom, specially designed holding cells, interrogation rooms with one-way mirrors, creating a real-world learning environment," says Lynn Rothman, the college's director of marketing and public relations. "Local law enforcement officials are working with the college to recruit and train their employees. We're growing with the county and have to keep up to serve the needs of people in this area."

Copyright ©  Maddux Report L.C. 2000