by Melissa Wells

It's as basic as elementary arithmetic: When you add up all the stories about corporations choosing Pasco County for their operations and/or headquarters, the inevitable conclusion is that numbers brought them here. Numbers on the costs of land, numbers on the tax base, numbers on the time it takes to get to an airport or major hub. More and more companies are counting the numbers and finding them adding up to a Pasco move.

Bill Day, operations manager at Welbilt Development Center Inc., has ample room in Pasco County to create new kitchen gadgetry for restaurateurs. Photo by Alex McKnight

The creation of futuristic food service kitchens is a recent addition to the county's manufacturing scene, but if tentative plans work out, the company fabricating them may have to build itself a boardroom next to one of those kitchens.

In the spring, Welbilt Corporation will occupy a new 25,000-square-foot research and development center in southwest Pasco. Meanwhile, executives at corporate headquarters in Stamford, Conn., are seriously considering relocating, and if the decision is a go, another 10,000 square feet, suitable for 25 executive offices, will be added at the Welbilt Development Center.

"No date has been set for the decision," says Bill Day, Welbilt's operations manager, "but it's a logical step because it's so less expensive to operate here. It may be a couple of years before this happens." The thinking is strongly in favor of the Pasco site, Day says.

Welbilt isn't new to the bay area. Its technical staff has been busy inventing the next generation of food-service cooking equipment for nine years. For the past six, the company has charmed chefs and restaurant executives with its futuristic kitchens from the Tri-County Business Park off Race Track Road. When it came time to expand, nearby land was seriously considered, but easement and water problems made the acreage less than ideal.

Relocating companies find space in a rural setting at One Pasco Center, near San Antonio. Photo by D.J. Wilson

"We were going to end up with two-and-a-half acres as opposed to the original five acres," Day says. "Road widening caused us to abandon the site."

Assured by county administrator John Gallagher that the company could count on a streamlined building process, Welbilt decided to build its new center in the Trinity Oaks Commerce Park in the southwest of the county. "The campus atmosphere caught our eye; it fit our image. And Gallagher has lived up to his promises that we would have no problems with the county," says Day.

While economic development officials and county commissioners have managed to land several expanding companies from Hillsborough and Pinellas counties over the past year, hindrances remain. The most significant is a lack of available office and warehouse buildings in the county. Second is the perception that the county is too remote from Tampa Bay centers of business, an impression quickly being corrected by a wealth of new road construction, most importantly the new Suncoast Parkway, which in effect will be an extension of the Veterans Expressway when it opens in 2001.

Another oft-mentioned barrier is the lack of a trained work force. Workforce development is another problem being assessed by county officials, real estate developers and corporate decision makers.

In the meantime, lower costs relative to costs in Hillsborough and Pinellas counties remain Pasco's chief asset in landing corporate relocations. Land suitable for developing build-to-suit facilities costs less than south of the border, and the county has a lower tax base. These are the most cited reasons for companies moving to the county. And while REITs are not interested in building spec space in the county, a couple of local developers are taking a conservative approach to filling the void.

"For local companies, affordability is the number one reason they move to Pasco," says Thomas Gola, business development manager for the Pasco County Economic Development Council. "Do the numbers anywhere you look in the bay area, and you'll see that the best return on investment will be Pasco County."

Conversely, companies relocating from out of state have different requirements. "These firms are looking at quality of life and accessibility," Gola says. "Hillsborough and Pinellas counties win more often. They beat us on availability of buildings, too."

Zephyrhills Municipal Airport is home to many businesses as well as ultra-lights. Photo by D.J. Wilson

Wanted:
Enclosed space
"If Pasco County had space available, we could lease it out," says Dewey Mitchell of Prudential Tropical Realty in New Port Richey, and past president of the county Economic Development Council. "We have a dire need for flex space. But lack of available financing for spec space keeps that from happening. Most companies expanding from Hillsborough and Pinellas need space within 120 days of making their decision on where they want to be. It's virtually impossible to build a facility in 120 days."

Everyone seems to agree that the dynamics will change once the new road networks are constructed. With the Suncoast Parkway - a north-south link in the west-central section of the county - come four interchanges that will likely open up state roads 54 and 52, Ridge Road and County Line Road to development.

In addition:
- U.S. Highway 41 is being widened to six lanes;
- State Road 54 is being widened to six lanes from U.S. Highway 19 east to I-75;
- A new interchange just a mile-and-a-half north of Hillsborough County is planned at State Road 56 and I-75.

Overall, that's a $350 million investment in new roads and infrastructure improvements.

"Once the Suncoast Parkway is completed, Pasco will have good transportation and will be in a much better position to entice larger corporations," Mitchell says.

"We are number four of all the counties in Florida to receive Department of Transportation funding," says county commissioner Ann Hildebrand. "We have received $10 million to facilitate road work and we are planning for good growth around the Suncoast Parkway. Upon its completion, we're looking for many new jobs over the next few years from light industry and high-tech firms, because of the road improvements."

To make that happen, the county has implemented a variety of economic incentives to ease the financial burdens of companies moving into the area. "We have community block grant funding and enticements which permit us to waive impact fees in some cases," Hildebrand says. "And our economic development council babysits corporations through the relocation process."

Projections for growth of the county are underscored by an economic survey recently released by NPA Data Services in Washington, D.C. Pasco County ranks 15th among the top 25 fastest-growing counties in the United States, according to NPA.

"Our future is bright," says Bill Weatherford at Marlin Commercial Real Estate, the firm that manages West Pasco Industrial Park. "We still have plenty of fully developed industrial lots available. We're on a major corridor of growth and just 25 minutes to Tampa International Airport."

Vidsat's executives liked the convenience of West Pasco Industrial Park, near Odessa. Photo by D.J. Wilson

Tackling workforce issues
The job of training a qualified work force is being addressed by a recently organized task force which includes the county's colleges and technical schools. Fourteen members of the board, including county officials and representatives from St. Leo College - which will officially change its name to St. Leo University in August - Pasco-Hernando Community College, Marchman Vocational School, Moore-Mickens Alternative School and Webster College, under chairman Ed Blummel of TECO, are on a threefold mission. First, the group is compiling a resource directory, listing every type of educational opportunity in the county, including degree completion and certification. Second, it is identifying areas where training currently isn't available for existing industry and, third, it's investigating what corporations are looking for in an educated work force and how best to answer their needs.

"Our goal is to increase the educational level of the work force, to attract businesses with higher paying jobs, and to provide specific training and education for both existing industries and for new businesses," says Judith Rochelle, assistant vice president for college advancement at St. Leo College.

St. Leo College, founded in 1889, became a four-year college in 1967. It is not well known that the school has 14 locations in five states and a campus in Madrid, Spain. It offers degree-completion programs via the Internet in accounting, business management and computer information science and recently began offering a new major in international business.

"People see us as a sleepy little college in the rolling hills of Pasco County, but that's not what we are at all," Rochelle says. "We have internships with educational institutions in Ireland, Germany, England and Spain."

With the fall 1998 semester, the University of South Florida began offering courses at Pasco-Hernando Community College (PHCC), including general studies programs at the bachelor's level, master's level courses in library and information science, and one doctoral-level course. "We started with eight classes and 120 students enrolled," says Robert Judson, PHCC president. "We are hopeful that USF will bring on courses in business and education."

PHCC has also added degree programs in radiography and drafting and design technology. "We are always looking for new things to do," Judson says. "We work closely with the economic development committees of both counties to keep present businesses in our counties and to help out as much as we can to encourage new businesses."

These efforts seem to be working. Fourteen companies have recently relocated to Pasco or have announced plans to do so. Seven came from Pinellas County, five from Hillsborough, one from out of state and another from the east coast of Florida. They have different reasons, and their stories point up the sometimes random nature of the decision-making process.

Fuel Cells, Gas and Video
Dais Corporation recently relocated from Troy, New York, on the outskirts of Albany, to West Pasco Industrial Park in Odessa. The fuel cell manufacturer currently occupies a 2,500-square-foot building and plans to build a new 15,000-square-foot facility in the business park, using community development block grant funds.

Dais president Tim Tangredi considered relocating to the Research Triangle in North Carolina, and Florida was third on his short list. "Frankly, let's be honest," he says. "Florida is a nice place to live."

That may be so, but what really moved Tangredi was the proactive response of the Economic Development Council. "We moved here because of Tom Gola," says Tangredi, offering an unsolicited testimonial. "He worked with us as far as finding a facility and procuring the community development block grant money. I've called him for connections and he has brought in representatives from universities and knows organizations and their capabilities."

The high-tech product Dais produces is most simply described as a piece of plastic wrap that generates electricity and is designed to do the work of batteries and generators. The technology, still in the prototype stage, differs from other fuel cells because it uses low-cost materials.

"Essentially it's a way to make electricity that doesn't have an environmental backlash and meets user needs to run things for longer periods of time," Tangredi says, who has his eye on potential uses in the automotive and biomedical industries.

The Dilo Company, a manufacturer of gas reclamation machinery, moved from Oldsmar into a 5,000-square-foot building in West Pasco Industrial Park. "We didn't see the point of paying premium prices for a lot in another county," says Reinhold Probst, Dilo's president. "For the same money I could buy much more land. I need to be close to the airport, which we are at this location. The Veterans Expressway is not bad at all."

Dilo was originally a subsidiary of a German manufacturer, which in 1990 decided to locate an operation in the U.S. Probst investigated Pittsburgh, but decided against it because of the weather. He thought the cost of living was too great in New York and found himself on his way back to Germany with no real solution.

"I met a traveler in the airport and told him my issues," Probst says. "He asked my requirements and I told him I need to be in the eastern time zone and near an airport. He said the best airport in the country is Tampa and I asked him where Tampa is. I had never heard of it. I changed my ticket to Tampa and liked it."

In 1994 Probst took over ownership of the U.S. subsidiary, which is now one of the German manufacturer's largest customers. Vidsat Communications, which provides broadcast satellite and video conferencing services to television networks and corporations, recently completed an expansion in West Pasco Industrial Park. President Mark Wilson says the location offers his company less traffic congestion and a more favorable tax situation than he had in Hillsborough County.

"We located here because of the Veterans Expressway," Wilson says. "We travel 99 percent of the time, so we got as close to that road as we could so that we can get in and out of Tampa. We don't have any trouble getting employees. We train them to our specifications.

"I made a very realistic financial preview of what we would do, and we're 25 percent above projections of what would happen when we moved into our new facility," says Wilson.

Backing into real estate
Brad Shirley, president of Designer Golf Company, moved his company from Pinellas County to Odessa Business Park, where he owns 15 acres. He occupied 5,500 square feet in Pinellas Park but moved to 20,000 square feet in Pasco. He has constructed another building, occupied by Southern Industrial Service Inc., and plans to add a third.

"I didn't plan to buy all this land," Shirley says. "I found this piece and it was a good deal. I backed into real estate developing."

The perception of Pasco's remoteness has been the main challenge encountered by Shirley when marketing his buildings. "I have a friend in Pinellas who wanted to come into one of my buildings, but say 'Pasco' and it scares him to death because he thinks it's so far away," Shirley says. "If I can get them to come here, I can sell them. Even though the Veterans Expressway has been here three or four years, people in Hillsborough and Pinellas still don't know about it. I can sell them if they come here. It's like they see the light."

Diagnostic Instrument Group, which refurbishes used ophthalmic equipment, recently moved from the Westshore area to a 36,000-square-foot building in Odessa. "Our greatest markets are the United States and South America," says DIG president Nelson Tobin. "This building became available and fit us to a tee. The tax basis is a huge differential and many of our employees are located here." One Pasco Center in San Antonio, at State Road 52 and I-75, has also attracted relocating companies. Pearson Industries is building a 10,800-square-foot spec space on a remaining lot in the first phase of the business park and is in the process of developing more lots in a second phase.

"Having a building to show is key," says Al Fluman, marketing director at Pearson Industries. "We work closely with the Economic Development Council on prospects. This is our third spec building, and it's a good way to go."

Watra Church Goods, a wholesaler of church supplies and renovator of church interiors, recently moved from Hillsborough County into a new 16,000-square-foot building at One Pasco Center. "The Pasco County Development Board gave us a great deal in terms of tax abatement with impact fees," says James Kucera, general manager at Watra. "The cost per square foot in Pasco allows us to expand in ways we couldn't in Hillsborough."

Fort Pierce-based American Building Materials is occupying one of Pearson's spec buildings at the business park. The firm sells and delivers drywall and accessories to contractors. "This is our first location in the Tampa Bay area," says John Mistal, manager and part owner. "We chose One Pasco Center for its location. We see a lot of growth coming this way in the future."

"The Suncoast Parkway will make One Pasco Center more accessible from the Pinellas County area," says Fluman. "It will be interesting to see how that develops and the benefit it brings to the central county. It should be an economic boom for the area." Earth Tech Inc., which provides soil stabilization services throughout the eastern U.S., chose Land O' Lakes for a 15,000-square-foot facility, where it consolidated operations it once had in Tampa and Oldsmar. "Pasco was much more developer friendly," says company president Ron Broadrick. "We had to go through fewer obstacles.

"Our biggest market in Pasco is stabilizing sinkholes," Broadrick says. "We stabilize abandoned coal mines in Pennsylvania."

Dropping into Zephyrhills
The Zephyrhills Municipal Airport is a magnet for aviation firms. Skydive City recently built a 7,500-square-foot hangar to better accommodate skydivers who travel from international markets. And Sun Path Products, a manufacturer of skydiving harnesses and rigs, is in a relatively new 15,000-square-foot facility at the Zephyrhills Industrial Air Park.

Improvements at the airport include converting an old World War II barracks into a 7,500-square-foot conference center, adding two 11,000-square-foot T-hangars and improving the runways. "We have a five-year plan to be totally reconstructed," says Jim Werme, airport manager. Pearson Development is building one of its 10,800-square-foot spec buildings in the airport's industrial park. And a good deal of restoration work is under way in downtown Zephyrhills. "It's a community effort, not just an airport effort," Werme says. "Because the drop zone brings international people here, there are quite a few businesses in town to cater to their needs. We just built a new YMCA and are putting in a new sewer and water system."

Moving from high flying to high tech, Pasco County is home to two firms that have earned slots on the Fast 50 list of the Tampa Bay Partnership.

Optima Technologies, which makes components for laser printers at its Port Richey headquarters, ranked 20th on that list, 67th on the University of Florida's list of 100 fastest growing private companies, and 192nd on a national Fast 500 list. Optima moved from Ohio in 1991. The company recently bought a 40,000-square-foot building.

"The work force availability was a better situation than what we had up north," says Steve Jensen, president and CEO. "This has been a good place for us to recruit and retain good people for our production team." He does have some workforce problems, however, adding, "It's tougher to find people in this market to fill key management positions. That does limit how fast we can grow." Of course, Optima has still grown 405 percent over the past three years.

Market Technologies Corporation distributes investment software from its headquarters at the intersection of State Road 54 and I-75. Occupying the 28th position on the Fast 50 list, the company has fashioned a 235-percent growth in revenues in three years.

"There are no drawbacks to our location," says president Louis Mendelssohn. "Our employees come from the Tampa area right up the Interstate."

Retail on hold
Two retail developers have been seriously considering developing outlet malls in the eastern part of the county along I-75, but one of them, Mills Corporation, recently announced it will look for another bay area location, and the other, Baltimore-based Prime Retail Development, owner of the highly successful outlet mall in Ellenton, in Manatee County, owns land at I-75 and State Road 52, and plans are in the works for a 200,000-square-foot outlet mall, but nothing has happened yet.

"We're still working on leasing the center," says Prime Retail spokesman Brian Lewbart. "It's going slowly and no time table has been set. We'll start construction at 50 percent preleased, but we're not there yet. We see the growth taking place in North Tampa and that's the reason we have the site in Pasco County. It's still something we hope to be able to build."

Like other corporate officials, retailers are just waiting for the numbers to add up. Then they will build.