April 2011 Economic Update

The Ocala City Council hosted a public workshop this week to discuss the hands-on due diligence process to assess the economic viability of the American Fresh Farms, LLC (AFF) project. City Staff presented their analysis.  AFF representative Jose Cortes discussed project details. Chris Yancey, Financial Review Committee (FRC) Chair, provided the committee's recommendations, and Councilman John Priester and County Commissioner Mike Amsden shared their perspectives as delegation representatives.

Marc Mondell, Executive Director of Municipal Development, explained the magnitude of the project based on seeing a similar operation firsthand. He reviewed the project's positive attributes as well as issues that need to be resolved, but expressed confidence in the company's commitment to the project. "We questioned why more companies haven't already done this in Florida," said Mondell. "The challenge has been with the cost to properly cool the structures in the southern states. AFF seems to have worked through this and are willing to take the longer pay back."

FRC Chair Yancey presented the process used for the financial evaluation and recommended the City move forward, cautioning a request for a letter of credit for the entire life of the project could be a deal killer. "The feasibility study has explored several scenarios and looks strong...the key will be their ability to secure contracts prior to starting operations...The Financial Review Committee recommends the City move forward."

Councilman Priester described the project 's contrasts. "It was a very pleasing experience...It is an agricultural project, but when you are there, you see it is obviously manufacturing as well. It's a wonderful marketing idea, and I think it will be good for Marion County."

Commissioner Amsden commented that this is the wave of the future. "It is great to be introduced to a new industry that I think will be the way 60% of our produce will be grown in the years ahead...It is also a positive way to further diversify our economy...It's a partnership, and we want to be a part of the team to bring this manufacturing operation to our community and create jobs for our citizens."

In partnership with the City of Ocala, the EDC developed an advertisement to let CEOs across Florida know that the Ocala Business Park is "ready for take off!" The ad, placed in Florida Trend magazine, promotes the park as Florida's premier logistics destination.

Executive Director of Municipal Development Marc Mondell sees this as a valuable tool to create awareness about the Airport Business Park. "We appreciate the EDC helping us pull this together. There's no doubt Florida Trend readers are a specific target for companies that may be considering a new location...it's all about getting our message in front of the right people."

The EDC proudly welcomes Scorpion Performance to  the Ocala/Marion County business community. All manufacturing machines and tooling have been moved from Scorpion’s previous Fort Lauderdale location and are now up and running at 5817 NW 44th Avenue in Ocala

The new Scorpion complex consists of three buildings totaling over 95,000 square feet of floor space on 23 acres of land. Two future buildings are planned for the site. The renovation has pumped more than $2.8 million into the local economy through local contractors used on the project. The new buildings will be used to manufacture medical devices and high performance racing engine products.

According to Scott Reynolds, Scorpion’s VP of Marketing, “Our new Ocala facility is now fully operational, and we are working toward tripling our previous output capacity. This means that we can fulfill customer orders with the same top quality precision products even faster than before.”

Scorpion CEO Robert Stopanio expresses his appreciation for the move. “This geographic location so close to I-75 and I-95 with easy access to I-10 makes so much sense for us,” says Stopanio. “The logistics to make the move were eased with the assistance of Pete Tesch and the team at the EDC. They have been great liaisons in the process. We are thrilled to be in Ocala!”

“Scorpion Performance is a solid company with a great history and a promising future,” says EDC President/CEO Pete Tesch. “We are grateful they chose our community and look forward to watching them grow.”

Both the City of Ocala and the Marion County Commission provided utility and permitting assistance to the facility’s improvements.