DAYTONA BEACH — Consolidated-Tomoka Land Co., one of Daytona Beach's largest private land owners, announced its sale of a 70 percent stake in nearly 2,500 acres immediately east of Tiger Bay State Forest for $15.3 million to a New York investment group.
The Daytona Beach-based public company, which retains a 30 percent stake as well as management rights to the overall property, is forming a new entity with the subsidiary of BlackRock Inc. that will turn the 2,500 acres into a conservation mitigation bank, according to John Albright, president and CEO of Consolidated-Tomoka.
The land will be permanently barred from being developed in exchange for credits, which it can then sell to other developers throughout Volusia County as well as portions of Flagler in need of setting aside land as conservation areas.
BlackRock, a public company whose common stock shares are traded on the New York Stock Exchange under the symbol BLK, is the world's largest asset manager, according to MarketWatch and other financial news websites. As of the end of first quarter 2018, it had more than $6.3 trillion in assets.
The sale of land reduces Consolidated's total real estate holdings in Daytona Beach to 5,600 acres.
It is the latest in a string of land sales since Albright became CEO in 2011 that has reduced by half Consolidated-Tomoka's real estate holdings in Daytona Beach. Sales in recent years included the sites of Trader Joe's regional distribution center, Tanger Outlets mall on the east side of Interstate 95, just south of LPGA Boulevard, and the new 6,600-home Latitude Margaritaville community on the north side of LPGA Boulevard just west of I-95, the new 1,200-home Mosaic "full life" community ICI Homes is building immediately south of Latitude Margaritaville, west of the Florida Tennis Center off of LPGA Boulevard.
The new entity that will manage the newly designated 2,500 acre conservation area is called Tiger Bay Mitigation LLC, Albright said.
A state permit has already been obtained to create the mitigation bank and a permit from the federal government has been applied for, but not yet granted, Albright said, adding that the entity expects to receive the credits in about a month.
A permit issued June 8 by the St. Johns River Water Management District approved 355 credits to Tiger Bay Mitigation LLC, with the credits to be issued in phases over time.
Based on what state mitigation bank credits have sold for elsewhere in Central Florida, the state credits for the newly created Tiger Bay Mitigation Bank could potentially fetch anywhere from $50,000 to $165,000 each, making the total land bank worth between just under $18 million up to nearly $59 million.
Albright said the federal government has yet to determine how many credits it would issue and that federal credits would generally be sold to developers in the $40,000 to $50,000 range. "Most of the time developers need to buy state and federal credits together," he said, adding that there are some cases where only state credits would be required.
According to a St. Johns Water Management District staff report, "cypress and mixed-forest swamps occupy 70 percent" of the Tiger Bay Mitigation Bank. "The remainder is comprised of pine uplands."
One of the consulting firms that assisted Tiger Bay Mitigation LLC in obtaining permit approval from the water management district was Bio-Tech Consulting Inc., whose president is John Miklos, who is also serving a fifth term as chairman of the water management district.
The permit was approved by the water management district staff and did not go to the board for consideration, said Teresa Holifield Monson, a spokeswoman for the water management district.
The Tiger Bay Mitigation Bank is bordered on the east side by both ICI's Mosiac community as well as Latitude Margaritaville.
"We view this venture as being a win-win for Consolidated-Tomoka and Daytona Beach," Albright said. "Rather than sell this land for residential development, we were able to put this land into permanent conservation, thus ensuring more open space and limiting the growth potential of Daytona Beach."
Sandy Burke Bishop, executive director of the Volusia Building Industry Association, praised Consolidated-Tomoka in teaming up with BlackRock to create the mitigation bank.
"Properly set up and managed mitigation banks are a brilliant way to turn lands not allowed to be developed — generally wetlands — into valuable assets while enhancing the ecosystem," she said.