REAL ESTATE

‘A HOT MESS’: Local contractor highlights the current challenges with building homes in Northwest Florida

The housing market is still booming here in Northwest Florida, but that doesn’t mean the building industry isn’t facing challenges of their own.

• Jason Carducci, President of the Building Industry Association of Okaloosa & Walton County, and also a local contractor, highlights some of the issues that local builders are trying to tackle. 

“Oh, it’s a mess,” said Carducci. “I’m going to be honest with you. Maybe some people don’t want to hear that. Yes, we are busy as can be but it is a hot mess of an industry right now.”

Carducci explains that with supply chain problems and increases in material costs, that burden is ultimately being passed on to the home buyers. 

“Let’s talk trusses,” said Carducci. “I’ve been doing business with some truss manufacturers for 16 years, and now I can’t get trusses for four or five months. That’s not just here in Northwest Florida, that’s across the country.”

Carducci says that he has called from Texas to Jacksonville trying to get trusses and he just can’t get them.

“They’re too busy with the backlog from the shutdown,” added Carducci. 

He says that because of this, he (and many contractors) are moving back to stick framing.

“It’s not a bad thing. It’s just more expensive, which ultimately brings the cost of the house up,” he explained. “But we can’t wait four or five months for trusses.”

According to Carducci, the material cost is increasing every three to four months, if not faster. 

“Drywall is up 30% this year,” he added. “Shingles and siding are also up and that all reflects the price of the house. As our costs go up, the cost of the house goes up.”

Lumber still remains a huge supply chain issue, along with increases in labor costs. In December, tariffs on Canadian lumber were raised from 8.99% to 17.99%. According to the National Association of Home Builders, at one point in 2021, the price per thousand board feet of lumber reached an all-time high of $1,495. 

• $582 was the previous all-time high back in 2018.

“As material prices go up, labor goes up because people have to make more money,” he said. “So what do they do? They increase their pricing.” 

“Is there an end in sight? I don’t know,” added Carducci. “I don’t see it, but I’m trying to stay optimistic that we can get a handle on this and get back to a norm. But what that norm is, remains to be seen.”

BIG MONEY

Okaloosa’s Half-cent Infrastructure Sales Tax ahead of schedule, with $48 million collected so far

On Tuesday, Chairman of the Infrastructure Surtax Committee, Matt Turpin, gave the Board of County Commissioners a report on the overall achievements of the half-cent sales tax since it began in 2019.

• 26 active projects
• 9 are in the design process
• 8 completed projects
• 5 are under construction
• 2 are in the negotiation phase

“Projects are moving at a great pace thanks to county staff being in a position to have these ongoing projects planned out and largely by collecting more funds in half-cent sales tax than originally budgeted,” said Turpin. “Additional needed projects are being added to the needs list as a result of exceeding collections expectations.”

As a result of the additional collections, the Committee is able to move projects up and start projects sooner than later. Projects that the Committee thought they would get to in year seven, they have been able to address in year four, which is this current year.

For 2021, the county has collected over $20 million in sales tax revenue. When the Half-Cent Surtax was first starting out, annual collections were estimated to be around $12 million per year.

• Just in fiscal year 2021, the county has spent a little under $11.2 million with over $93,000 collected in interest income. 

Since inception, through September 30th, 2021, Okaloosa has collected over $48 million in half-cent sales tax, while spending around $17 million on projects. 

Stats for Fiscal Year Ended 9/30/2021

• $20,076,386 Collected – Original Estimate was $12M
• $93,387 – Interest Income
• $11,156,090 – Funds Spent
• Statistics from Beginning to Year Ended 9/30/2021
  • $48,082,422 – Collected by the County
  • $342,026 – Interest Income
  • $16,911,145 – Funds Spent
  • $25,953,350 – Total Funds Spent and Encumbered (Encumbered – funds for approved projects not yet spent).
  • $22,471,097 – Funds collected yet to be spent that will be used for Infrastructure, Public Safety and Stormwater Projects.

Looking back at each month’s collections, Turpin says that (aside from parts of 2020) Okaloosa had “banner month after banner month” because people were in Okaloosa county that didn’t live here.

Click here to read more about upcoming projects and how the tax breaks down.

CONGRATS 👏

Steve Stephenson of The Crab Trap restaurant wins “Manager of the Year” award

Saltwater Restaurants would like to congratulate Assistant General Manager, Steve Stephenson, for winning the 2022 Florida Restaurant & Lodging Association “Manager of the Year” award.

The FRLA Hospitality Hero Awards were held on February 2nd at The Henderson Beach Resort. The awards ceremony is the only event on the Emerald Coast that recognizes outstanding employees in the hospitality industry.

• Steve Stephenson has been an employee at The Crab Trap in Destin for over 20 years.

“His commitment to cultivating a team-player culture make him an impactful leader and instrumental to our restaurant and team of nearly 200 employees,” says Clint Rogers, Director of Operations for Saltwater Restaurants. “Steve truly exemplifies the core values of The Crab Trap and is a true leader in the hospitality industry.”

• Steve was also nominated for the “Military Veteran” category, serving 9 years in the United States Air Force with multiple tours and duty stations. 

Congratulations, Steve Stephenson! 👏

Saltwater Restaurants is also proud to have 21 restaurant employees nominated across multiple categories in addition to receiving the “Spirit of Hospitality” award for their contributions and commitment to the local community.

Learn more about the restaurant group at saltwaterrestaurants.com 🌊

ARTIFICIAL REEFS

Okaloosa TDD plans to construct 4 new artificial patch reefs near Destin

Okaloosa County’s Tourist Development Department is looking to construct four artificial patch reefs approximately 15-18 nautical miles from Destin’s East Pass.

• The patch reefs will be in the large area artificial reef site A (LAARS A) permitted area.  

These patch reefs will be made up of numerous prefabricated artificial reef modules.  The creation of these reefs will not only provide essential habitat for marine species of fish and invertebrates, but these will also provide additional fishing and SCUBA diving opportunities.  

“For an area so dependent on offshore fishing and diving activities, it is important to maintain an active artificial reef program and continue enhancing the environment depended on by local captains,” said Alex Fogg, Coastal Resource Manager for Okaloosa County.

The total cost of the project is $120,000. The TDD has submitted a grant application to the Florida Fish and Wildlife Conservation Commission (FFWCC) Artificial Reef Construction & Monitoring grant program in the amount of $60,000. 

• The grant requires a 1:1 cash match, which the Board of County Commissioners approved on February 1, and will use bed-tax money to fund. 
• Okaloosa County submitted this exact project last year for grant funding but FWC decided internally that the Florida Panhandle was ineligible for state funds due to the County receiving NRDA money (BP Oil Spill).

“This project is all the result of the public asking for multiple reef sites to be created with a range of material types,” he said. “We will have some larger structures in there that are 15-18 feet tall, as well as some smaller ones that are 6-8 feet.”

According to Fogg, the patch reefs will range from 110ft-140ft deep. 

“Northwest Florida lacks a lot of that natural habitat that you see out of Tampa or some of those more Eastern locations,” said Fogg. “So installing, or creating, artificial reef sites here off Destin-Fort Walton Beach is really important.”

With the amount of people diving and fishing the existing reef sites, Fogg says that without expanding, people would just hit the same sites over and over again.

“At the end of the day, you’re not going to have a very exciting fishing experience because you’re going to fish those locations out pretty quickly,” he said. “So it’s really important to help spread that pressure by creating all of these artificial reef sites. The reef fish aren’t going to hang around open sand bottom, they need a reef. The more of these that we have, the better it is for the fish themselves, as well.” 

This particular project will occur a little bit south of where the Boat Yard location. The Boat Yard is about to get its 3rd vessel, and there have been a number of similar modules deployed in the vicinity of where this project will be.

“Every time I’ve gone out there I’ve seen people fishing and diving those sites, and a lot of times I can’t even get on them,” he said. 

The grant application is due March 18, 2022.  The county should hear back by June on the status of the funding.

THINGS TO DO

TROPIC FALLS: OWA’s new indoor water park to open in May 2022

On Thursday, OWA Parks & Resort revealed updates on their new indoor water park, plus their rebranding concept for their amusement park….that is less than 2 hours from Destin!

• Originally opened as The Park at OWA in 2017 in Foley, AL., the resort is transforming its 14-acre amusement park, as well as adding a new $70+ million water park.
• It will now be called Tropic Falls at OWA.

The entire amusement park will now be filled with tropical touches allowing guests to feel like they have stepped into an island paradise. This will include a complete makeover of the front gate and an expansion of tropical theming throughout. 

• Guests can still enjoy the amusement park on weekends during the winter season, even while construction is taking place at the entrance.

“We are incredibly proud of OWA, the direction its moving and the economic impact it continues to have on not only the local community but state as well,” said CIEDA President/CEO, Cody Williams. “With the addition of the new indoor water park and the wave pool, we will be creating an additional 400 new jobs for our community. That opportunity, to create such a strong impact for our community, is something we hold to the highest regard.”

The water park boasts 100,000 sq. ft of indoor space featuring a retractable roof and sidewall, eleven total water slides, a lazy river, and more. 

The water park will also feature outdoor amenities including:

• A 30,000 sq. ft wave pool named Big Water Bay
• A surf simulator
• Private cabana rentals
• Outdoor dining location named Smugglers Café.

Click here to view pics.

“We are so excited to share that upon completion, Tropic Falls will be the only indoor water park in the United States with a retractable wall and retractable roof, allowing for the ultimate experience in Coastal Alabama climate control,” said Kristin Hellmich, the Director of Marketing and Public Relations for OWA Parks & Resort. “Of course, no water park would be complete without a fun, new pal to hang out with. Our new toucan friend is flying in for a new permanent home. We’re so excited for our guests to meet him.”

The current projected opening date for the water park is May 2022. Learn more about OWA in Foley, AL.

👇👇👇

Some more good reads…

• Northwest Florida State College has been awarded $2 million for an early Career & Technical Education initiative for high school students. The Early College Career and Technical Education grant will extend Collegiate High School services to 9th-grade students and expand its degree tracks to include Computer Information Technology and Engineering Technology.

• Pensacola attorney says Florida Power & Light’s rate increase is “unconscionable”. On Tuesday, Pensacola Attorney Mike Papantonio fired off a letter to the Florida Public Service Commission threatening to bring a lawsuit over the approved rate increases for Florida Power & Light customers. Papantonio says that his law firm is being “covered up with folks in Escambia and Santa Rosa Counties” who want the law firm to sue both DeSantis and the Public Service Commission Board. 

EVENTS

Looking ahead at some local events

• February 4, 2022 – Sip N’ Stroll Gallery Night at J.Leon Gallery – View
• February 5, 2022 – Step One Automotive Hosts the Saving with Soul Adoption Event – View
• February 5, 2022 – 6th Annual Palate & Palette Sponsored by Step One Automotive – View
• February 5, 2022 – I Set My Friends On Fire & More LIVE: Downtown Music Hall – View
• February 7, 2022 – February 7, 2022 Regular City Council Meeting – View
• February 8, 2022 – Sea Turtle Conservation & Community Sustainability Workshop – View
• February 8, 2022 – Friends Guild to Celebrate Black History Month with Representatives Of the Okaloosa County Democratic Black Caucus – View
• February 8, 2022 – Funk you @ Downtown Music Hall! – View
• February 9, 2022 – Capone’s Club 226: A Prohibition Gangster Themed Alcohol Pairing Dinner – View
• February 10, 2022 – Stellekaya Wine Dinner at Taste Tapas & Wine – View