Building Clout

Florida Trend, Apr 2008 by Vogel, Mike

Say this for the real estate market collapse. It crystallizes the need to diversify the Treasure Coast's economy. "The issue for Indian River County is we need to create a more stable job base," says William J. Penney, executive vice president and chief lending officer for Vero Beach-based Marine Bank & Trust. The same holds true throughout the Treasure Coast.

Fortunately, the knowledge-based sector is growing in Port St. Lucie. The latest components are a Florida unit of Oregon Health and Science University's Vaccine and Gene Therapy Institute and biotech entrepreneur Alfred E. Mann's 22-acre project that will have space for medical, corporate and research offices and retail. Both are close to and follow the landmark relocation of California-based Torrey Pines Institute for Molecular Studies to land donated by developer Core Communities at its Tradition project.

"It made a great deal of sense once Scripps went into Palm Beach," says Core President Pete Hegener of the LaJolla-based Scripps' Jupiter campus, "to be part of a cluster that would run all the way from Miami to Jacksonville."

Hegener's regional mindset delights Michael Busha, executive director of the Treasure Coast Regional Planning Council, who says the top need for thearea is to join forces with Southeast Florida to become the sixth-largest metro nationally with the clout to attract funding for infrastructure and other needs. Says Busha, "We're growing together as one metro area whether we like it or not."

A new economy brings new requirements. St. Lucie County Economic Development Council President Larry Pelton says the region's education players will rise to meet the new economy's needs: "We have to upgrade our education system to be consistent."

POPULATION TRENDS

Booming St. Lucie has gotten all the ink nationally for rapid growth, but of the four Treasure Coast counties, only smaller Indian River County posted gains above the state's average annual growth of 2.07% over the past five years - albeit from a smaller base. Down the road, Indian River's population, according to University of Florida's Bureau of Economic and Business Research, could reach 150,000 in two years and grow to 166,800 by 2015. Martin County over the same span is on track to reach 154,100 and 167,000 residents while St. Lucie is expected to hit 298,800 in 2010 and 346,200 in 2015. Okeechobee is secure as the smallest county in the region with a projected population of 40,300 in two years and 42,300 by 2015.

VERO BEACH / INDIAN RIVER COUNTY

It's been an unsettling time in this high-income county. After 60 years, the Dodgers are leaving Dodgertown for Arizona. Major employer Piper Aircraft kept the area hanging for more than a year on whether it would stay. Housing, especially in the more affordable west Vero area, tumbled.

LEADERS

> The co-owners of the nursery and landscape business Becker Cos. in Vero Beach forecast a "pretty substantial" decline in business. The company supplies Treasure Coast real estate developers. Tom Hurley, CEO and chairman, says the 225-employee operation, which has holdings from Martin to Indian River, is branching out to more stable markets, such as Orlando and the Bahamas, which benefit from the weak U.S. dollar by attracting European investment.

> At 70, Seacoast National Bank Senior Executive Vice President Bill Curtis retired in January. He remains chairman of Seacoast Indian River County, but that's only part of his activity. Last year, he was instrumental in founding a community leaders summit, representing the arts, education, charities, government and business, that worked to retain Piper Aircraft in Vero Beach and branched out to improve communication between sometimes opposing interests in the county. He's also active in the local chamber, Catholic Charities and with his wife, Nancy, in other philanthropic endeavors.

> Chuck Mechling, a partner with Steve Melchiori and Tom Jones in Vero Beach's Pointe West, a 600-acre traditional neighborhood design project, is breaking ground this year on a medical building and a town center to support the 700 homes and golf and equestrian amenities already in place. Mechling projects 450 more homes will be built at the project, which is recognized for hosting community events and supporting non-profits.

STUART / MARTIN COUNTY

With builders, the building trades, real estate and auto sales all taking hits, the search for economic growth falls back on the industries that have built a niche in this famously anti-growth county and on those with proven staying power.

LEADERS

> Land planners Michael Houston and Don Cuozzo, principals in Houston Cuozzo Group in Stuart, expect revenue will be down 30% this year compared to 2007 but on par with 2004 revenue. The downturn took the froth from the market, but developers of large projects are using the firm to secure the government approvals they'll need in place when the market turns, says Houston, whose firm is active throughout the Treasure Coast. A return to realistic land valuations is helping the local Habitat for Humanity, on whose board Houston serves.