Volusia OKs $5.4M for downtown Brown & Brown building

Oct. 05--The Volusia County Council approved Thursday giving insurance giant Brown & Brown $5.4 million toward a 10-story building on Beach Street that promises to bring 600 high-paying jobs to Daytona Beach's downtown.

With County Chair Ed Kelley calling the development a "game-changer on steroids," he joined the rest of council in supporting the development and asked county staff to bring the incentive agreement back for a final vote on Oct. 19.

"This is everything," J. Powell Brown, president and CEO of the company said after the decision. "We view this as a partnership and we appreciate them investing alongside us. We are really excited about the future of the downtown community and for our organization."

With the decision Thursday, the county will provide $4.5 million for infrastructure as well as $900,000 to help the company qualify for state tax credits for new job creation. The state tax credits could be worth another $4.5 million for Brown & Brown, which employs more than 8,600 worldwide.

The insurance company, which has been in Daytona Beach since 1939, is also hoping to receive similar support from the city. Daytona Beach is mulling a proposal to give $1.08 million in property tax abatement and another $4.5 million for infrastructure to the publicly traded company that had $1.76 billion in revenues last year.

The company's goal is to open the new building in late 2020 while also keeping about 325 employees in their existing building at 220 S. Ridgewood Ave. The new structure would be between 180,000 and 200,000 square feet, more than double the current 75,000 square feet the company has in its five-story office tower that was built in 1987.

The development would create hundreds of jobs that would pay an average of about $41,300 annually, and Powell Brown said it could set the stage for more growth.

"I think there will ultimately be more houses downtown; I think there will be more restaurants, bars and entertainment," Brown said, adding that it would benefit existing merchants along Beach Street as well. "Just think about lunch. When 600 people go out of the building, they have to go someplace close to go eat."

Building construction and land acquisition costs are estimated at $35 million. In all, Brown & Brown is hoping to get $14.58 million in assistance from the city, county and state.

Council member Billie Wheeler, who represents the area, thanked the business leaders for their vision.

"I am thrilled; this is a huge deal for us," she said. "I like being a teammate with Brown & Brown."

Council member Heather Post called the decision to support a major headquarters facility that would revitalize downtown a "no-brainer."

"Downtown has been badly in need of something for many years," she said.

It's not out of the ordinary for the county to pour public dollars into prospective development. The Tanger Outlets Mall, the One Daytona project across from Daytona International Speedway, Embry-Riddle Aeronautical University and Trader Joe's have all received incentives from local government in recent years.

In other news Thursday, the council voiced support for a plan to raise daily beach driving tolls from $10 to $20 by Jan. 1, 2018, in order to increase convenience at the ramps. The proposal that will come back for a future vote includes opening seven more ramps, implementing ramps for pass-holders only, adding more workers to toll booths, and more.

The council also approved a contract with the union of Beach Patrol officers that would give every officer access to a rifle by 2020, along with 3 percent raises starting next year.

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