SARASOTA

Sarasota County property values rebound to pre-recession heights

Zach Murdock
zach.murdock@heraldtribune.com
The Jewel, 1301 Main St., features 19 condominiums and retail space. The construction value is $19.4 million. [HERALD-TRIBUNE ARCHIVE / 2017]

SARASOTA — Property values in Sarasota County are expected to return to their 2008 pre-Great Recession levels this year for the first time since the economic downturn, according to the latest government appraisals.

On the back of a billion-dollar construction rebound not seen in a decade, the county's taxable value is expected to rise more than 8.1 percent this year to more than $54.5 billion.

Values also increased within each of the county's municipalities, marking the fourth straight year of clockwork-like growth almost identical to the increases the two previous years, according to the data from the county property appraiser.

North Port will once again see the sharpest increase in values, at almost 12.8 percent, slightly more than its 12.7 percent increase last year, as home construction continues in Sarasota County's largest city.

The city of Sarasota also will once again see the highest total value increase among the local municipalities with more than $634 million in newly taxable property value, a 7.8 percent increase over last year, according to the data.

The increases are welcome news for the finances of each local government — though perhaps less so for taxpayers — as officials launch budget workshops this summer and stand to collect more in property taxes on more valuable properties, even if they do not ultimately raise tax rates.

"It always feels like I need to remind people of what happens when you don't have growth," said Christine Robinson, executive director of the self-described business think tank Argus Foundation and a former Sarasota County commissioner. "Restaurants close, your workers have to move away, businesses suffer ... it lowers the quality of life when you see growth stop or you see it recede. We're lucky to be in a spot now where things are good for a lot of people. We're able to do things and generate a great quality of life here."

But the increases also further stoke the ongoing fight over whether the county is developing too much, adding to affordability challenges and clogged road networks. That sentiment has dogged the Sarasota County Commission for years and came to characterize the Sarasota City Commission election this spring, which even saw the election of one of the leaders of the STOP! development control group, Jen Ahearn-Koch.

The Sarasota County Property Appraiser releases estimates on the change in local taxable values at the end of May each year, offering governments a working number on which to budget and observers a window into how much and where values are changing. Final tax roll data data is submitted in July and the values are certified to create tax bills for property owners in the fall, said Brian Loughrey, administrative director at the county property appraiser’s office.

Construction boom

The increases are fueled in large part by almost $1.1 billion in taxable value on new construction across the county over the past year, according to the estimates.

The value is the most since the economy collapsed in 2008 and is almost exactly as much new taxable value as was created in 2005 when construction was still booming.

Though the value of this year's new construction is less than at its peak in 2007, it is almost 10 times higher than when new construction bottomed out in 2011, according to historical data.

Almost one quarter of the new construction took place within the Sarasota city limits, where the downtown and Rosemary areas, in particular, are experiencing a renaissance. The so-called "billion-dollar boom" includes more than 4,200 new apartments, condominiums and hotels and has put growth at the center of nearly every city political debate.

Another $200 million in taxable value new construction is estimated in North Port, where years-long subdivision projects continue to blossom with new homes, Loughrey said.

The new value is unlikely to slow soon, either, Loughrey and Robinson noted. Economists may disagree on when another recession is expected, but all seem to agree it will be years away, Robinson said.

The property appraisal increases also only include in the office's calculations those developments that are substantially completed at the beginning of the year, so many projects still under construction are not yet counted in the increases, Loughrey noted. The Vue Sarasota Bay condo and hotel complex is largely uncounted in the new estimates, for example, because it is not yet complete, he said.

"These projects are pretty large in scope and go on for years, so it’s normal to see these play out over stretches of years," he said of the annual increases. "Downtown Sarasota, as you see, there seems to be condo after condo and hotel and apartments, so this one might ride out a little bit longer."

The taxable value increases provide a cushion, as local governments collect more tax revenue even if the tax rate remains flat. To keep tax revenues even, government agencies would need to roll back tax rates to offset the revenue increase from higher values.

The growth would raise $11 million more for Sarasota County in the coming year. The County Commission also is considering raising the millage rate to fund several major capital projects, county leaders said during a budget workshop Friday.

Sarasota and North Port have not yet released their calculations about the tax revenue increase but also face their own growing list of costs and projects. Sarasota leaders are considering a litany of traffic and infrastructure improvements and North Port must still cover costs for a new pool and its contribution to bring the Atlanta Braves spring training to the area.

All still face question marks behind efforts to combat homelessness, attract qualified workers and address the shortage of affordable housing, Robinson said.

"Everybody admits they are experiencing good times, but we've got workforce issues and affordability issues that we've got to deal with," she said. "We're dealing with the issues of a good economy, which I think everybody would rather be dealing with rather than a bad one."