WALTON COUNTY STRATEGIC ECONOMIC

DEVELOPMENT PLAN

D IVERSIFICATION + R ESILIENCE DRAFT COPY FOR REVIEW

CONTENTS

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A. VISION STATEMENT 1 ______

B. EXECUTIVE SUMMARY 2 ______

C. SIX PILLARS: GOALS AND STRATEGIES 6 Infrastructure and Growth Leadership Talent Supply & Education Civic and Governance System Innovation and Economic Development Business Climate and Competitiveness Quality of Life and Quality Places ______

D. STEPS FORWARD: KEY TRANSFORMATIONAL PROJECTS 12 PROJECT 1: U.S. Highway 331 PROJECT 2: Water and Sewer Infrastructure PROJECT 3: U.S. Military Re-investment PROJECT 4: Owl’s Head PROJECT 5: Veterans Lodge PROJECT 6: Mossy Head Industrial Park PROJECT 7: County Road 30A Mobility Project

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E. NOTES ON STRATEGY DEVELOPMENT 19 ______

F. PUBLIC INVOLVEMENT IN STRATEGIC PLANNING 21 ______

G. FUNDING AND TECHNICAL RESOURCES 28 ______

APPENDIX 1: WALTON COUNTY INDUSTRY ANALYSIS 43 ______

APPENDIX 2: WALTON COUNTY COMMUNITY PROFILE 47

Early History | Population | Educational Attainment | Labor Force Income and Spending | Housing ______

APPENDIX 3: EXISTING ASSETS INVENTORY 55 ASSET 1: Transportation ASSET 2: Infrastructure ASSET 3: Available Land ASSET 4: Tourism ASSET 5: Military ASSET 6: Educational and Workforce Development ASSET 7: Housing ______

VISION STATEMENT ______

AS HOME OR DESTINATION, WALTON COUNTY IS AN INSPIRING PLACE FOR RELAXATION, CREATIVITY, PRODUCTIVITY, AND FINDING COMMUNITY.

WE PLAN FOR THE FUTURE WITH CONSERVING OUR PRINCIPLED BUILT ENVIRONMENT AND TREASURED NATURAL LANDSCAPES IN MIND, WHILE WELCOMING NEW OPPORTUNITIES TO GROW INVESTMENT IN WALTON COUNTY.

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Executive Summary ______

Walton County, Florida is facing an economic tsunami. Recently released data illustrates that Walton County had:

• The #1 performing local economy in Florida between 2012-2015, with 53% growth in gross domestic product reaching an estimated $2.5 Billion. • The #1 fastest growing county in population in Florida in 2017 and was the 6th fastest growing county in the U.S.

Employment in high-performing professional, scientific, and management industries is leading the growth. Military investment in the region’s large installations continues, tourism is flourishing, and more premier residential and mixed-use developments are planned.

However, with growth comes inevitable change. The county’s desirability for visitors and sun- seeking transplants has created infrastructure demands that have outpaced County capital planning budgets. Traffic has become a top of mind issue for planners. There is even concern that the success of tourism in South Walton has created traffic congestion scenarios that may ultimately affect the area’s ranking as a premier coastal destination if not addressed. And a strong real estate market for new development has resulted in a widening gap in mid-market housing affordability. Citizens are asking if the community is changing too much, too rapidly, and if the possibility exists to pump the brakes.

Infrastructure build-out keeping pace with growth has been identified as Walton County’s primary challenges. Because the capacity of arterial road networks is under strain, the ability of workforce to more efficiently reach employment opportunities is a critical infrastructure issue. Current commute times are often untenable for residents and directly impacts hiring and employee turnover in some sectors. The demand for housing, and in turn a demand for critical services, water and sewer infrastructure, and connector roads, in areas north of the is expected to increase significantly. A shortage of affordable housing options for service sector employees and mid-level professionals near employment centers has implications for economic growth overall.

Business retention and recruitment strategies depend upon ready access to needed infrastructure, and increasingly, businesses choosing locations expect all basic infrastructure to 2 | P a g e

be in place, and sometimes specialized infrastructure to meet specific needs. Companies will most often seek sites and facilities that can be quickly built out to their needs with minimal risk. Walton County has been successful in creating industrial parks and selling land to a range of manufacturing, distribution, and warehousing operations. An advantageous amount of undeveloped land remains in the northern areas of the county. However, site control and infrastructure may not be in place to attract desirable private investment. In competing for new industries, Walton County can prepare and market true shovel-ready development sites, with environmental due diligence, site clearance, utility and road infrastructure, and other preparation completed that will expedite the buyer’s acquisition and construction process. Proper zoning, fast-track permitting, easy expressway access, internal roads, and compatible adjacent land uses also make sites more viable.

While is it is important to recruit new businesses to the area, it is critically important to retain and grow existing businesses. A business recruitment and expansion program is an avenue for the EDA to build relationships with existing businesses, to gather information about local business activity, to educate businesses on the County’s business support resources, and to be able to anticipate change in a company’s status. An effective BRE program is based on accurate knowledge of the business community and constant two-way communication. BRE involves (1) building a solid relationship with business owners or managers in the community, (2) regularly collecting data on companies and related industries, (3) analyzing and tracking the collected data in order to predict behavior, (4) assisting companies in solving problems that may cause them to relocate or close, (5) looking for opportunities to support growth of the businesses in their communities. Walton County should be prepared to help businesses with expansion of current sites and facilities, preparing new sites for expansions that require relocation, and assisting with regulations and permits related to planning, zoning, and construction. Importantly, because growth-oriented businesses are dependent on skilled talent availability, the EDA should work to connect business owners and managers to its workforce development resource network.

The challenge for Walton County is to acknowledge the uncertainty of local stakeholders and involve them in preparing for what comes next – to be positioned to direct change, rather than simply responding.

In order to make the most of incoming talent and new entrepreneurial opportunities, a roadmap is needed for Walton County leaders to use in decision-making. The Walton County Strategic Economic Development Plan is a consensus- and data-driven set of Goals and Strategies to help guide the work of elected officials and the County’s Economic Development Alliance. The Vision Statement framing the plan acknowledges the interrelationship of conservation and growth

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principles, reflecting the tension inherent in most development-oriented issues the County routinely faces.

There are several current state and regional Economic Development strategic plans that are relevant to Walton County and which reinforce the Goals and Strategies of this plan. These include the Florida Chamber Foundation’s Six Pillars, Florida’s Great Northwest’s Northwest Florida FORWARD (2017), Florida Department of Economic Opportunity’s Strategic Plan for Economic Development 2018-2023, and the Regional Planning Council’s 2018-2022 Comprehensive Economic Development Strategy (CEDS). The framework of this Plan correlates Goals and Strategies for Walton County within the Six Pillars: Talent Supply and Education, Infrastructure and Growth Leadership, Civic Governance System, Innovation and Economic Development, Business Climate and Competitiveness, and Quality of Life and Quality Places.

Walton County has identified several large-scale projects that have broad-based support in the community and have made recent forward progress in implementation. In addition to putting forth Goals and Strategies, this report identifies these unique opportunities as Key Transformational Projects and outlines how they relate to the County’s vision for growth. The County anticipates that the momentum for these projects will be strengthened with the adoption and advancement of this Plan.

Resources for Implementation

A list of grant funding sources that may support small and large elements of Strategy implementation is included as an Appendix to the Plan. The County should closely review these funding opportunities with prioritized projects in mind. Federal and state governmental grants will often require a local match percentage, so unencumbered financial reserves are important to have in place when attempting to leverage outside funding.

New revenue options available to the County include increasing property and/or sales tax rates. Adopting appropriate and reasonable tax levy Increases should be considered in order to accomplish the policy goals outlined in this Strategy.

Example tax increase scenarios and the associated impact on the County:

Millage Rate: In 2018, Walton County levied approximately $66.7 million in property taxes (based on the current millage rate of 3.636 and the 2018 real property assessed value of $18.3 billon1). An increase to the County millage rate of .00017 (3.63617) would generate an additional $3.1 million per year. A .5 mill increase (4.136) would generate $75.9 million (a $9.1 million

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increase). The data below shows the increased costs per year at a range of assessed values. At a current 97% collection rate, the increase in millage would still generate between $3 million and $8 million per year. Table 1 shows that the more conservative millage increase (.00017) would impact individual property taxes less than ten cents.

Real Property Property Tax at Millage Rate Millage Rate Assessed Value Millage Rate 3.63617 4.136 3.636 $75,000 $272.70 $272.71 $310.20 $150,000 $545.40 $545.42 $620.40 $250,000 $909.00 $909.04 $1034.00 $450,000 $1636.20 $1636.27 $1861.20

Sales Tax: For the same period, the State recorded the receipt of $33,670,146 in sales tax revenue for the County. The current sales tax rate is 7%. The County is considering increasing its rate to the maximum allowed amount of 7.5%, directly comparable to surrounding Escambia, Santa Rosa, and Washington Counties. Based on the 2018 values, the increase could generate an additional $2.4 million annually.

Both of these options equate to important additional revenue to the County without undue burden to the majority of households and businesses. It is anticipated that approximately $2 million in additional revenues could be produced to fund new policy directions from which the County as a whole would benefit.

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GOALS AND

STRATEGIES

1. Talent Supply and Education ______Goal 1: Create a dynamic workforce development strategy that anticipates tomorrow’s workforce (projected population growth, demographic shifts, employment trends, and commute patterns) in relationship to Walton County’s vision, and implement steps that may be needed.

Strategy 1.1: Collaborate with state and regional partners like CareerSource Okaloosa Walton, Florida Department of Economic Opportunity, Florida’s Great Northwest, Opportunity Florida, and Emerald Coast Technial College to address the present and future needs in identified target industries. Strategy 1.2: Link education and training partners to develop cooperative education agreements, pipeline skills training programs, and apprenticeships using the ECTC Regional Demand Occupations List. Strategy 1.3: Continue to partner with CareerSource Okaloosa Walton to encourage military retention and serve as a liason between the military affairs committee and Walton County. Expand military spouse placement in the local workforce. Strategy 1.4: Ensure support of early-childhood education initiatives, which have demonstrated positive impacts on lifelong academic success.

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2. Infrastructure and Growth Leadership ______Goal 2: Build and maintain adequate infrastructure to support economic development and improve quality of life.

Strategy 2.1: Take steps to reduce traffic congestion along primary transportation corridors. Strategy 2.2: Incorporate high-density transportation planning principles and technology-based solutions to demand management along primary traffic corridors. Require limited-access design that mitigates increased traffic congestion along major corridors when adjacent properties are developed, as outlined in the U.S. 331 planning corridor study. Strategy 2.3: Identify key decision-making agencies in transportation corridor planning and development (County staff including Engineering and Planning, Okaloosa-Walton Transportation Planning Organization, and Florida Department of Transportation) and ensure ongoing alignment of Economic Development goals for the county. Strategy 2.4: Strengthen active engagement with the O-W TPO and build advocacy for advancing critical projects. Strategy 2.5: Support efforts of the Tourism Development Council to creatively address limited parking access points and related infrastructure needs in South Walton. Strategy 2.6: Continue to expand and support public transit in Walton County. Allow for private rideshare and shuttle provider operations and use shared data when available to support the case for public transit connectivity. Strategy 2.7: Market the Defuniak Springs airport as an available asset to aviation and aerospace-dependent industries. Explore the viability of expanding airport services, adding speculative building space, or other avenues to directly increase marketability of surrounding property. Strategy 2.8: Seek out additional opportunity for the barge port in Freeport. Building upon previous visioning and County investment in the Fourmile Creek area, identify any needed improvements for or barriers to additional port development. Strategy 2.9: Coordinate in partnership with County staff, the Cities of Freeport and Defuniak Springs, the Town of Paxton, the Northwest Florida Water Management District, and the Florida Department of Environmental Protection to identify development constraints and needs of key development sites to meet water and sewer capacity demands. 7 | P a g e

Strategy 2.10: Develop and implement a phased plan for water and sewer extensions with practical solutions addressing water and sewer extensions for population growth. Strategy 2.11: Build upon feasibility and action plans to improve broadband infrastructure to encourage business growth and enhance public safety. Strategy 2.12: To expand desirable and affordable housing options for all incomes, develop a specific and consensus-oriented plan to address housing concerns in Walton County such as affordable and workforce housing availability, sewer and water connection needs, and homeownership preservation. Strategy 2.13: Increase inventory of workforce housing units.. Strategy 2.14: Provide financial incentives for privately-developed affordable and workforce housing, such as underwriting land costs with a land bank or trust. Strategy 2.15: Develop a smart growth strategy for affordable and workforce housing that clusters multi-family developments where the necessary transportation access points and infrastructure already exists or is planned.

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3. Civic and Governance System ______Goal 3: Maintain functional, trustworthy systems of governance and productive avenues for civic participation.

Strategy 3.1: Build adequate funding streams and positive alliances supporting future growth throughout Walton County. Strategy 3.2: Strategically utilize the opportunities and position of the County to pursue untapped grant funding to implement important projects and strategies. Strategy 3.3: Expand the taxing district of the TDC to add a North Walton tourist development tax as a separate North Walton tax; continue to support the use of TDC resources for infrastructure planning and development. Strategy 3.4: Increase professional capacity and funding for Economic Development Alliance activities to expand the program to levels competitive with surrounding counties. Strategy 3.5: Establish goals and objectives for the EDA with performance measures, outcomes, and impact metrics to be evaluated annually. Stategy 3.6: Improve relationships and results-orientation across all levels of government. For example, convene forums among peer departments of local governmental jurisdictions to discuss economic strategies in the context of current planning and development issues. Strategy 3.7: Forge close relationships with philanthropic organizations with community and economic development purposes and missions. Strategy 3.8: Promote educational opprtunities for citizens and community leaders to learn about Economic Development as a professional practice and Walton County’s strategies for growth.

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4. Innovation and Economic Development ______Goal 4: Create an environment for new and growing businesses to readily invest, hire, and thrive.

Strategy 4.1: Increase available shovel-ready sites for office uses, advanced manufacturing, research & development, and distribution. Strategy 4.2: Create a spec building program (see Santa Rosa County’s as an example). Strategy 4.3: Partner with developers to creatively structure financing for infrastructure needs. Strategy 4.4: Streamline the commercial development process. Strategy 4.5: Formalize the business retention and expansion (BRE) program to effectively identify opportunities and to resolve barriers to growth for individual businesses. Strategy 4.6: Review and summarize BRE data on an ongoing basis to identify trends and adjust efforts accordingly. Strategy 4.7: Establish a BRE leadership team or task force that includes key stakeholders, utility partners, and Florida’s Great Northwest to broaden the resources and accountability of the program. Strategy 4.8: Promote Walton County’s competitive advantages with a sophisticated, forward-looking, multi-year marketing plan.

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5. Business Climate and Competitiveness ______Goal 5: Generate a business-friendly climate that helps promote job growth and high-wage earnings in Walton County.

Strategy 5.1: Improve collaboration, efficiency, and productivity with local governmental agencies and municipalities. Strategy 5.2: Streamline regulations and approval processes for commercial development. Strategy 5.3: Identify key stakeholders and create a public-private partnership to help support the goals and mission of the EDA. Strategy 5.4: Actively engage Walton County’s partner resources in innovative approaches to entrepreneur-focused economic development to capture projected demand for local goods and services. Strategy 5.5: Offer support and incentives to developers willing to redevelop abandoned sites and buildings. Strategy 5.6: Partner with developers to creatively structure financing for infrastructure needs.

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6. Quality of Life and Quality Places ______Goal 6: Preserve and enhance Walton County’s unique natural and built resources with well-evaluated development standards and investment decisions.

Strategy 6.1: Expand the taxing district of the TDC to add a North Walton tourist development tax as a separate North Walton tax. Continue to support the use of TDC resources for infrastructure planning and development. Strategy 6.2: Support and replicate Main Street’s historic preservation, beautification campaigns, and downtown revitalization efforts in Defuniak Springs. Strategy 6.3: Increase efforts to extend bicycle/pedestrian infrastructure throughout the county in connecting corridors. Strategy 6.4: Encourage additional retail options and farm-to-table opportunities in Paxton. Strategy 6.5: Encourage business owners and residents to invest in improving building facades, lawns, and walkways as a way to leverage community pride. Strategy 6.6: Consider community community health needs into development planning for active/outdoor lifestyle amenities (as example, water access maintenance and paddle trail development in Freeport.) Strategy 6.7: Expand awareness of and public investment in conservation areas, parks, trail systems and other outdoor recreational opportunities. Strategy 6.8: Strengthen Code Enforcement policies and resources to address blight county-wide. Strategy 6.9: Enhance coastal resilience capabilities county-wide to recover following hazardous events including hurricanes, coastal storms, flooding, or man-made disasters (for example, buried power lines). Strategy 6.10: Evaluate and communicate the economic value of natural resources to elected officials to support environmental protection. Assess the value of the Choctawhatchee Bay Watershed and the on South Walton. Strategy 6.11: Build relationships and civic identity by supporting community events throughout the county. Promote the use of effective social media communication platforms to encourage positive dialogue and participation.

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ACTION STEPS: KEY TRANSFORMATIONAL

PROJECTS

Several key transformational projects are proposed or are currently advancing in Walton County. These projects signify optimism of the community in evaluating a return on investment, as well as leadership and ownership in making these visionary ideas happen. The widening of U.S. 331, the water and wastewater service extensions and upgrades along the U.S. 331 corridor and U.S. 90, new military missions and investment, Owls Head, Veterans Lodge, Mossy Head and the 30A Mobility Project are examples of projects that will significantly impact future development and be catalysts for economic growth. However, each of these still depends upon leveraging of financial resources and partnerships to fully materialize. Developing broadly-supported project priorities, pragmatic cross-jurisdictional agreements, and solid implementation plans will make the difference in achieving the goals envisioned.

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Figure 9: Walton County Key Project Sites

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U.S. Highway 331

Centrally located in Walton County, U.S. Highway 331 is a primary transportation artery for regional commuters, tourists, and business commerce, and serves as a vital hurricane evacuation route as well. Severe traffic congestion along U.S. 331 is a longstanding issue that is being addressed with mitigation. The most heavily used segment of U.S. 331 extends north from Highway 98 in Santa Rosa Beach to Interstate 10.. In coordination with the Florida Department of Transportation (FDOT), this segment of the highway has been widened from a two-lane highway to a four-lane highway.

It is anticipated that, in conjunction with widening U.S. 331 and the extension of water and sewer connections, the corridor will become more economically viable and spur new development in Walton County. The County has prepared a U.S. 331 Economic Development Corridor Plan, which is intended to strategically plan for future development and connectivity along the corridor. Overly congested roadways can reduce attractiveness to businesses that may want to situate along a corridor, as ease of access and adequate infrastructure capacity is often a key determinant in the site location process. Congested roadways can also discourage consumers from traveling to businesses. A key component of the U.S. 331 Corridor Plan is to maintain the highway’s ability to carry high volume traffic in a safe and efficient manner; therefore, a system of existing or planned service roads, limited number of connections, median openings and infrequent traffic signals are proposed to maintain functionality of the highway. Also important for the U.S. 331 Corridor will be the development of alternate routes including major intersection alternatives due to the east and west land constraints posed by properties and conservation lands. The plan also includes an analysis of the future land use, zoning, and existing infrastructure to determine the development potential along the corridor.

Water and Sewer Infrastructure

It is recognized that desired development has to date been constrained by a lag in critical connections of water and sewer infrastructure, though population trends and demands have warranted it. Water and wastewater service extensions and upgrades along the U.S. Highway 331 corridor and U.S. Highway 90 are seen as essential to fostering desirable patterns of population growth and commercial expansion in Walton County, and phased plans are in place that represent partnerships between the County and municipalities. U.S. 90 is a primary east-west arterial highway. Most of the parcels along U.S. 90 will consist of commercial or industrial development.

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U.S. Military Re-Investment

In support of the advance of the U.S.A.F. Hypersonic Testing Program, the U.S. Defense Department has announced the relocation to Eglin AFB from Wright-Patterson AFB of approximately 2,000 active military personnel and defense contractors. Within a five-year timeframe, the program will become fully operative. This sizable mission investment in Eglin represents significant positive economic impact to the area, with high-wage job creation and more diverse supply chain opportunities. The County will expedite directing resources to the U.S. 331 corridor south of I-10, including infrastructure buildout and some property acquisition, in planning for related commercial development. A range of additional considerations (school system impacts, residential needs, support service workforce, etc.) are part of current strategic planning efforts in support of the expansion.

Regionally, Tyndall AFB in neighboring Bay County was monumentally damaged with the impact of . Plans are announced that Tyndall will be rebuilt, with increased storm resilience, as an “Air Base of the Future,” with a larger presence than before. Plans for the new base will emphasize state-of-the-art aviation technological capabilities and “smart-flex” building design. Tyndall represents 37% of all economic activity in Bay County and is part of the globally- recognized cluster of Panhandle military sites that includes Walton County.

Owl’s Head

The location of Owl’s Head Farms was a proposed 1,200-acre master-planned, mixed-use community under private development along U.S. 331 in the City of Freeport. The project was originally approved for 3,500 dwelling units and 700,000 square feet of commercial space, as well as new schools and an industrial park.

As a reinvented proposed public-private partnership on the site between Walton County, academic partners, and private sector investors, the Walton County Research and Education Institute will be located in Owl’s Head and provide innovative educational programs and research initiatives related to agriculture, aquaculture, culinary arts, hospitality, healthcare, the environment, and autonomous vehicles. Walton County, the International Transportation Innovation Center (ITIC), Seaside Institute, and Clemson University International Center for Automotive Research (CUFICAR) are also working to help develop alternate transportation strategies to address mobility issues on County Road 30A. The ITIC is building a global alliance of smart mobility testbeds and provides services for multi-modal transportation systems. The Seaside Institute is an educational center for community planning, design, and development, and

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serves as an economic development incubator, encouraging unique public-private partnerships and new business ventures. Walton County is working to co-locate a healthcare laboratory/research company with the Institute. Strategic connectivity of this new venture with Sacred Heart Health Systems will further spur job growth while increasing access to rural healthcare.

Veterans Lodge

A privately-led, mission-oriented partnership venture known as Veterans Lodge is being developed on an approximately 1,400-acre tract near the intersection of Interstate 10 and U.S. Highway 331 in DeFuniak Springs. The concept of Veterans Lodge is to provide a co-located comprehensive range of services and opportunities to military veterans, including a major health care facility with a brain injury rehabilitation and research center. Therapeutic and physical rehabilitation services, recreation and educational programs, job training, and family housing will also be provided. Capacity is anticipated to provide support for as many as 300 veterans on an ongoing basis.

Construction was recently launched after a successful due diligence and community involvement process on the part of the developer. Results of a Market Assessment/Feasibility Study and a Regional Market Demand Analysis were shared that showed favorable conditions and local support for proceeding. A 1.74-mile road connecting U.S. 331 and Highway 280A will be constructed to support the project. The high-profile project will provide benefits to resident and non-resident veteran populations in need of specialized care and supportive resources. It is expected to directly impact the regional economy by creating a large-scale destination in DeFuniak Springs, with intensive capital investment and supporting numerous jobs in research and development, medical fields, and construction.

Mossy Head Industrial Park

The opening of Mossy Head Industrial Park in 2014 increased Walton County’s employment base and has provided an opportunity for business expansion and diversification. The industrial park is a 350-acre site with access to Interstate 10, State Road 285, U.S. Highway 90, and CSX Rail that runs along the entire northern boundary. In 2014, the State of Florida directed a $3 million budget appropriation for Mossy Head’s major infrastructure costs for roadway improvements, expanding water and wastewater infrastructure, underground utilities, and stormwater management facilities. Walton County invested an additional $500,000 for infrastructure

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buildout and streamlined the County’s permitting process to encourage investment. Several businesses and distribution centers have opened in the industrial park including FedEx, Southern Tire Mart, Empire Truck Sales, I-10 Truck Center. Currently, land is available to accommodate larger operations.

The intended use of the property is to develop a mixed-use commercial and industrial park and to supply employment opportunities for the Walton County’s predicted population growth. Specific businesses targeted for the industrial park include manufacturing, logistics/distribution, and research and development firms. The area surrounding Mossy Head is also attractive to potential residential growth. Large, vacant pieces of land are located nearby on either side of U.S. Highway 90.

County Road 30A Mobility Project

County Road 30A is a scenic route that connects the premier beach communities in South Walton County. Throughout the year and substantially during peak seasons, communities along the corridor are impacted by severe traffic congestion and parking issues. Pioneered by the Seaside Institute, the 30A Mobility Project will address traffic issues along County Road 30A by providing sustainable and advanced transportation solutions, which will include creating a future-oriented network and infrastructure for autonomous vehicles. The International Transportation Innovation Center (ITNC) will provide a testbed that connects multiple communities along the corridor that will be utilized by autonomous vehicles.

The road and parking system, as well as the communication and grid infrastructure, will be modified to support the proposed mobility solutions. The project will also include the development of a Transportation Innovation Center, as well as a testing platform to promote, develop, and test sustainable transportation innovations. Convenient Park and Ride locations will be provided for daily commuters to County Road 30A from the Cities of Freeport and DeFuniak Springs to promote ridesharing.

The project will create new high-skilled technology jobs in vehicle automation and communications technology design, manufacturing, maintenance, and operations management. The first phase will be a preliminary or conceptual design. A consulting firm has been selected by the County to perform an autonomous vehicle transportation network feasibility study along the roadway. Phase 2 consists of planning, design, and execution of the transit system. Funding has been requested from the Florida Department of Economic Opportunity (DEO) for the Park and Ride locations, an operations center, and automated vehicle shuttles. ______19 | P a g e

DIVERSIFICATION AND RESILIENCE

…HOW TO GET THERE FROM HERE

Economic Development Strategy Development

• Paradigm-shift into recognition of the competitive landscape of Economic Development. Economic Development and job growth are not vague terms. They are data- and finance- driven calculations made by enterprises to decide whether to risk capital investment or not, and when and where. Fairly uniform indices measuring site selection competitiveness and entrepreneurship resources exist and are published continually. Do community leaders know what these data points are, and if so, is there an objective understanding of where the community falls in scoring? Develop strategies to move the needle on any metrics that can be moved. Weather and geographical location are two that cannot, but most others can. Walton County has those two accomplished.

• Past tenets of Economic Development are no longer the most relevant. Land, labor, capital, and entrepreneurship remain as factors of production, but knowledge is a key and cross-cutting element that today differentiates one community’s economic prospects from another. Communities that are currently positioned for success have up-to-date workforce development training programs, refined with the direct engagement of local business sectors. Infrastructure is important, but in competitive communities, infrastructure buildout is increasingly specialized to meet the needs of target industry sectors. Before pursuing infrastructure-intensive industries, understand what competing communities can offer.

• Reject either/or thinking and recognize the social and economic interdependence of urban and rural areas, public and private sector leadership, and

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young/old/immigrant/native populations. Build a civic culture that offers multiple platforms for cooperation and supports constructive deliberation on issues. Avoid mistaking Economic Development assets or tools for strategies. An example of an asset would be an advanced fiber network or shovel-ready business or industrial park, and a tool might be an established business-retention program or menu of incentives. To exist competitively today, these are essentials. With the inventory of assets the community has in place, decide which tools are needed and attainable. Work with local and state public agencies and through coalitions of private stakeholders to develop a community profile and basic toolbox. From these, focus on developing a handful of creative, ambitious strategies that will set the community apart.

• A consensus-based Economic Development Strategic Plan is another fundamental element that successful communities have in common. A dynamic plan will allow for shifts in tactics as circumstances may require, but limits shifts in course. The vision that a community determines, goals, and objectives that a strategic plan brings forward should seldom require reexamining in the near- to medium-term. This saves time when new opportunities arise – they can be evaluated through an agreed-upon lens.

• Community Development is what the residents of a community desire for their own quality of life and livelihood and is directly tied to Economic Development. However, Economic Development stakeholders also exist outside of the community – students who would move back home to be nearer family if they could find career opportunities and maintain a respectable standard of living; and businesses that would profit and invest in the community if they knew of the community’s assets, if the business support climate is right, and if basics of infrastructure are in place.

• Identification of Community Development goals is a critical step. Public safety; educational standards and opportunities; access to health care and a healthy environment, both natural and man-made; and affordability and diversity of housing options are examples of program and policy areas that community leaders can decide to prioritize … or to ignore, or allow divisiveness to result in inertia.

• Align with Florida’s Great Northwest, Opportunity Florida, and other regional coalitions, but also frame Walton County’s identity and economic goals singularly. Be a leader and model in the region’s collaborative Economic Development landscape.

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Participatory Process

and Citizen Input

Methodology

Development of the Walton County Strategic Economic Development Plan incororated a wide- reaching public outreach strategy to solicit citizen input and guide the development of the Plan. At the beginning of the process, a series of interviews was held with elected officials, County staff, community leaders and stakeholders. The initial interviews helped establish the background and framework of the Plan and the current issues the county faces, as well as how the Plan would be used going forward.

Interview participants included: • William Chapman, District 1 Commissioner • Cecelia Jones, District 2 Commissioner • Melanie Nipper, District 3 Commissioner • Sara Comander, District 4 Commissioner • Tony Anderson, District 5 Commissioner • Bill Imfield, Executive Director, Walton County Economic Development Alliance • Melinda Gates, Walton County Environmental Specialist • Bill Williams, Walton County Triumph Coordinator • Mac Carpenter, Walton County Planning Director, and Kristen Shell, Walton County Planning Manager • Tom Baker, Executive Director, Walton County Housing Agency • Bob Brooke, Taxpayers Association President • Reynolds Henderson, Business and Philanthropic Leader/Main Street Defuniak Springs Executive Board Member • Jay Tusa, Executive Director, Walton County Tourist Development Council • Larry Jones, County Administrator

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To confirm the goals and vision for Walton County that the Plan would ultimately support, a Steering Committee was appointed by the Walton County Board of County Commissioners. Two public meetings with the Steering Committee were held at Freeport City Hall.

To fully promote the Plan and gather input from citizens throughout the county, several focus group discussions, community association presentations, and advertised meetings were held. The planning process was publicized in local news media outlets along with a schedule of opportunities to contribute ideas.

Meeting locations and participants included: • Defuniak Springs Kiwanis Club • Triumph Gulf Coast Board Meeting • Walton County Chamber of Commerce • Walton County Taxpayers Association • Paxton High School • Emerald Coast Association of Realtors • Defuniak Springs Rotary Club • Defuniak Springs Main Street Event, Defuniak Community Center

In several of these input sessions, participants were polled using an interactive texting survey tool to facilitate discussion, which revealed compiled survey results for each question on-screen in real time. The input gathered during the outreach meetings provided a valuable snapshot of local priorities and preferences for the future of Walton County.

An online version of the survey was created and promoted on the County’s website to solicit additional opinions from residents. Approximately 200 surveys were collected, reflecting a wide range of viewpoints of current and future economic development efforts in the county.

Results and Findings

Interviews

In preliminary interviews with Walton County civic and business leaders, three key tenets were consistently mentioned:

1) The County’s tourism-structured economy is very strong, but needs to be resilient to market shifts and become more diversified;

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2) The lack of adequate infrastructure (water, sewer, transportation networks, and broadband) is a major impediment for economic growth and development; and

3) The economic and competitive divide between North and South Walton must be addressed for the betterment of the county.

Other issues that were mentioned as perceived obstacles to economic growth:

• Ambiguous/unclear/strict land development codes and complicated permitting processes • Housing affordability • Traffic congestion – especially during peak seasons and County Road 30A • Overcrowding in South Walton • Communication and trust with the community; lack of transparency in decision-making • Understaffed County departments • EDA is not adequately funded • South Walton is not prepared for natural disasters • NIMBY (“Not in My Back Yard”) reactive attitude of residents • Lack of big ideas, thinking too small • Lack of workforce • Coordination and communication between County departments and with local municipalities

It was consistently expressed that the County and TDC have done exceptionally well in building a robust tourism industry. Other community assets that were identified were land availability in North Walton, the education system, military presence, DeFuniak Springs airport, and the industrial parks. It was said that the county has “strong bones” to become the community where people want to live and work. During the interviews, there were several opportunities and projects underway that were mentioned as “transformational” and would be economic catalysts for the county, particularly with the possibility of Triumph funds to assist:

• U.S 331 Road Widening Project • Sewer and Water Infrastructure Planning and Deployment • Mossy Head Industrial Park • U.S. Military Re-investment • Owl’s Head • Veterans Lodge • 30A Mobility Project

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Steering Committee Meetings

Two publicly-advertised organizing meetings were held at the outset of the project with a Steering Committee, comprised of volunteer members appointed by the Walton County Board of County Commissioners. Members included elected officials and planning and development staff from jurisdictions across the county, as well as utility partners, small business owners, and nonprofit leaders. The Steering Committee reaffirmed the foundational issues to be addressed in the plan and framed the Vision Statement to guide the effort.

Surveys

Several public outreach meetings were conducted throughout the county at various locations. Participants answered a series of questions anonymously through an interactive texting survey at each meeting. The survey was also accessible online via the County’s website. The purpose of the surveys was to generate discussion and provide insight on community needs and desires for Walton County. In addition to the standardized questions asked, the online survey allowed for written narrative comments.

Summary of key critical takeaways from public meetings and online surveys:

Public outreach survey and dialogue participants envisioned a community that is safe and well- maintained, with strong schools, businesses, services and activities to attract residents and families of all ages. Residents and business owners emphasized the importance of diversifying the economy and providing the necessary infrastructure to support existing and new businesses. There was consensus that there were many unique and valuable assets of the county to work with and build upon, with a varying list of what those distinct assets were. Natural environment, public safety, quality of school system, climate, and recreational opportunities were frequently top of mind with respondents.

The series of questions that were posed to participants addressed a) opportunities and b) potential barriers to Walton County’s success in economic resilience and growth.

Opportunities that were cited include: key development projects on the horizon, potential Triumph funding allocations, population growth, tourist visitation and spending, regional military investment trends, and environmental protection activity. In this Plan, these are further described in the sections “Key Transformational Projects” and “Existing Assets Inventory.”

Public outreach participants envisioned a community that is safe and well-maintained, with strong schools, businesses, services and activities to attract residents and families of all ages. Participants emphasized the importance of diversifying the economy and providing the necessary

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infrastructure to support existing and new businesses. There was consensus that there were many unique and valuable assets of the county to work with and build upon, with a varying list of what those distinct assets were. Natural environment, public safety, quality of school system, and recreational opportunities were frequently top of mind with respondents.

Potential barriers to success in achieving Walton County’s vision that were repeated as themes include:

• Emphasis on lack of vision for Walton County.

A notable finding, consistent across surveys and meetings, was a statistically unanimous response rate indicating a perceived lack of shared vision.

• Emphasis on need for more transparency and information to citizens. • Emphasis on need for trust, certainty, and efficiency in development process and enforced development standards.

10:1 response rate indicating perception that the development process is complicated. There is broad support for the appropriateness of different development standards for North and South Walton, but near unanimous support for stricter enforcement and fair, uniform implementation of the established guidelines across the board. Many responses reference a perception of uneven practices or too-flexible rules.

• Emphasis on need for improved infrastructure.

“Inadequate infrastructure” is consistently named across surveys and meetings as the single most pressing issue for Walton County, threatening existing quality of life and severely limiting new business opportunities. Responses emphasize an urgent need for traffic mitigation and improved connectivity on major road networks. Lack of water and sewer connectivity to support residential demand and business attraction is also a significant concern. Broadband access is mentioned less often but has strong advocates for improving as well.

• Emphasis on need for more Economic Development staffing, capacity, and resources.

Many responses point out an apparent improved level of professionalism within the Economic Development Alliance, yet questions remain on measures of success. Responses to “Who should lead Economic Development Activity?” are split relatively evenly between EDA Board of Directors, EDA Staff, and BOCC. Responses to “Do you believe Walton County effectively promotes itself and its businesses in local, national, and international markets?” are approximately 10:1 no. A majority across the board feels

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Walton County is not prepared for new business opportunities, and dialogue indicated a variety of factors leading to this perception.

• Emphasis on need for pre-development vs. external marketing to industry. • Emphasis on urgent threat to both tourism and residential quality of life from overdevelopment.

Responses to the online survey support closer guards on development in general. Many responses suggest that infrastructure has not kept up with growth and the County needs to have a clear plan for catching up before actively promoting further growth. This does not seem to simply be reactionary, “not-in-my-backyard” opposition, but wider concern for how overdevelopment may negatively impact the County’s economic future.

• Emphasis on natural environment preservation. • Emphasis on reality of two sets of opportunities and challenges, North and South. • Emphasis on quality of life for residents.

The survey participants are largely residents, therefore there is a natural skew reflected on favoring resident needs before those of tourists. Some responses acknowledge that “the tourists pay the bills.” Many responses make a connection to both perspectives or a middle ground, but express the belief that serving residents and the community may be the better long view, which will help sustain tourism as well as other industries in the end.

• Emphasis on housing affordability.

Lack of high quality, affordable workforce housing options is mentioned often as an urgent concern and threat to business viability.

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SWOT Analysis summary of public input / results

STRENGTHS WEAKNESSES

• Location Desirability • Lack of Neccessary Infrastructure

• Access to Major Roadways • Economic Sector Diversity • Robust Tourism Economy • Housing Options and Affordability • K-12 Education System • Lack of a Unified Vision • Financial Standing • Economic Disparities in • Marketing Tourism in South Walton North/South Walton • National Prominence in • Capacity of Economic Development Placemaking on 30A Organizations • Disconnect with Higher Education and Research

OPPORTUNITIES THREATS • Development Site Availability, • Natural and Man-made Particularly in North Walton Environmental Disasters • Supplemental Funding Resources • Seasonal Economy • Intergovernmental and Regional • Lack of Skilled Workforce Coordination • Traffic • Military • Modes of Transportation (Airport, Rail, Port) • Natural Resources • Seaside Institute

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Funding and Technical Resources

In addition to local government funds and public-private partnerships, economic development technical assistance and investment can be funded in whole or in part through a variety of federal and state agencies. Projects that have been identified and prioritized by a local government may be appropriate for stacking funding sources or may require local match. For most grant awards, specific program requirements must be met, and eligibility is determined on a case-by-case basis. Other federal, state, and local organizations may not have direct grant or funding opportunities available but can serve as beneficial resources or advocates when seeking funding and support for economic development activities. This list is not exhaustive but should be used a starting place to match projects in line with the local vision to potential funding sources or resources.

______FEDERAL

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Opportunity Zone

Census Tract 12131950301 near Defuniak Springs in Walton County is a newly designated Opportunity Zone, which is an economically distressed area in which investors may be eligible for federal tax benefits to increase Return on Investment. Under the program, investors qualify for a schedule of lower capital gains tax rates and the ability to pool money in Qualified Opportunities Funds (QOFs) to spend on projects in low-income or underserved communities. www.treasury.gov or www.irs.gov

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U.S. Economic Development Administration

Proposals and applications for the opportunities below do not have deadlines and are currently accepted on an ongoing basis. In addition to regular grant programming cycles, EDA also posts Disaster Supplemental Notices of Funding when allocated. www.eda.gov/funding-opportunities/

FY2019 Regional Innovation Strategies (RIS) Program RIS Program includes two separate competitions, the 2019 i6 Challenge and the 2019 Seed Fund Support (SFS) Grant Competition. The FY19 i6 Challenge aims to recognize high-growth entrepreneurship through awards up to $750,000 for projects that increase regional capacity to accelerate the translation of innovations, ideas, intellectual property, and research into products, services, companies, and jobs. FY19 Seed Fund Support (SFS) Grant Competition offers risk capital for entrepreneurs and startups to grow by providing up to $300,000 for projects that create, launch, or expand equity-based seed funds or that create networks and tools that enable capital to flow into high-growth startups.

FY2018 Economic Development Assistance Programs (EDAP) – Public Works and Economic Adjustment Assistance Programs This program provides support to construction, non-construction, planning, technical assistance, and revolving loan fund projects under EDA’s Public Works program and Economic Adjustment Assistance (EAA) programs. Grants and cooperative agreements made under these programs are designed to leverage existing regional assets and support the implementation of economic development strategies that advance new ideas and creative approaches to advance economic prosperity in distressed communities.

FY2016-FY2019 EDA Planning Program and Local Technical Assistance Program This program assists eligible recipients in developing economic development plans and studies designed to build capacity and guide the economic prosperity and resiliency of an area or region. Applicants must apply to their respective EDA regional office (Florida’s regional office is the Atlanta Regional Office).

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U.S. Department of Agriculture

USDA Rural Development offers loans, grants and loan guarantees to help create jobs and support economic development and essential services such as housing, health care, first responder services and equipment, and water, electric and communications infrastructure.

Programs & Services for Communities & Nonprofits www.rd.usda.gov/programs-services/programs-services-communities-nonprofits

• Agriculture Innovation Center Program • Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program • Circuit Rider Program - Technical Assistance for Rural Water Systems • Community Connect Grants • Community Facilities Direct Loan & Grant Program • Community Facilities Guaranteed Loan Program • Community Facilities Relending Program • Community Facilities Technical Assistance and Training Grant • Delta Health Care Services Grant • Economic Impact Initiative Grants • Emergency Community Water Assistance Grants • Farm Labor Housing Direct Loans & Grants • Grants for Rural and Native Alaskan Villages • Household Water Well System Grants • Housing Preservation & Revitalization Demonstration Loans & Grants • Housing Preservation Grants • Intermediary Relending Program • Multi-Family Housing Direct Loans • Multi-Family Housing Loan Guarantees • Multi-Family Housing Rental Assistance • Mutual Self-Help Housing Technical Assistance Grants • Rural Broadband Access Loan and Loan Guarantee • Rural Business Development Grants • Rural Community Development Initiative Grants • Rural Cooperative Development Grant Program • Rural Energy for America Program Energy Audit & Renewable Energy Development Assistance Grants • Rural Housing Site Loans

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• Rural Microentrepreneur Assistance Program • SEARCH - Special Evaluation Assistance for Rural Communities and Households • Socially-Disadvantaged Groups Grant • Solid Waste Management Grants • Strategic Economic and Community Development • Telecommunications Infrastructure Loans & Loan Guarantees • Water & Waste Disposal Grants to Alleviate Health Risks on Tribal Lands and Colonias • Water & Waste Disposal Loan & Grant Program • Water & Waste Disposal Loan Guarantees • Water & Waste Disposal Predevelopment Planning Grants • Water & Waste Disposal Revolving Loan Funds • Water & Waste Disposal Technical Assistance & Training Grants

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U.S. Department of Housing and Urban Development www.hud.gov/program_offices/spm/gmomgmt/grantsinfo

Sustainable Communities Initiative Sustainable Communities Regional Planning Grants, available to multijurisdictional and multisector partnerships, support metropolitan and multijurisdictional planning efforts that integrate housing, land use, economic and workforce development, transportation, and infrastructure investments. Community Challenge Planning Grants foster reform and reduce barriers to achieve affordable, economically vital, and sustainable communities through efforts like amending or replacing local master plans, zoning codes, and building codes to promote mixed-use development, affordable housing, the reuse of older buildings and structures for new purposes, and similar activities with the goal of promoting sustainability at the local or neighborhood level. www.hud.gov/hudprograms/sci

Community Development Block Grant Program (CDBG) State Program This program allows states to award grants to smaller units of local government that develop and preserve decent affordable housing, to provide services to the most vulnerable in communities, and to create and retain jobs. Refer to CDBG program description in Florida Department of Economic Opportunity section. www.hud.gov/program_offices/comm_planning/communitydevelopment/programs

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www.floridajobs.org/community-planning-and-development/assistance-for-governments-and- organizations/community-development-block-grant-program

Choice Neighborhoods – Planning Grants and Implementation Grants

Choice Neighborhoods Planning Grants support the development of comprehensive neighborhood revitalization plans which focus on directing resources to address Housing, People, and Neighborhoods. Communities must develop and implement a comprehensive neighborhood revitalization strategy, or Transformation Plan. The Transformation Plan will become the guiding document for the revitalization of the public and/or assisted housing units while directing the transformation of the surrounding neighborhood and positive outcomes for families. Eligible neighborhoods must meet poverty and either crime rate or vacancy rate criteria. Applications for the FY2019 Notice of Funding Availability are due June 10, 2019. The Implementation Grants support those communities that have undergone a comprehensive local planning process and are ready to implement their plan to redevelop the distressed public and/or assisted housing and neighborhood. https://www.hud.gov/program_offices/public_indian_housing/programs/ph/cn

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U.S. Department of Transportation

BUILD Discretionary Grants

Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants are for investments in surface transportation infrastructure and can support roads, bridges, transit, rail, ports or intermodal transportation. The deadline to apply for the FY 2019 BUILD Transportation Discretionary Grants program is July 15, 2019. https://www.transportation.gov/BUILDgrants

TIFIA & RRIF Loans

The Transportation Infrastructure Finance and Innovation Act (TIFIA) program provides low-cost loans for rural transportation projects. The Railroad Rehabilitation & Improvement Financing (RRIF) loan funding may be used to finance development of railroad infrastructure. https://www.transportation.gov/buildamerica

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INRFRA Grants

The INFRA Grants program provides dedicated, discretionary funding for highway and bridge projects. Eligible INFRA project costs may include reconstruction, rehabilitation, acquisition of property, environmental mitigation, construction contingencies, equipment acquisition, and operational improvements directly related to system performance. ______

U.S. DOT Federal Highway Administration

Recreational Trails Program (RTP) The RTP is a competitive grant program that provides financial assistance to states and local communities for the development and maintenance of non-motorized and motorized recreational trails and facilities. In Florida, the Department of Environmental Protection’s Office of Greenways and Trails administers this program. Extra evaluation points are awarded for projects that facilitate the access and use of trails by persons with disabilities. https://www.fhwa.dot.gov/Environment/recreational_trails/

Transportation Alternatives Referred to as TA Set-Aside, this program authorizes funding for programs and projects defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities such as historic preservation and vegetation management, and environmental mitigation related to stormwater and habitat connectivity; recreational trail projects; safe routes to school projects; and projects for planning, designing, or constructing boulevards and other roadways largely in the right-of-way of former divided highways. https://www.fhwa.dot.gov/environment/transportation_alternatives/ https://www.fdot.gov/planning/policy/TAsetaside/default.shtm

Federal Lands Access Program (FLAP) FLAP was established to improve transportation facilities that provide access to, are adjacent to, or are located within Federal lands. The Access Program supplements state and local resources for public roads, transit systems, and other transportation facilities, with an emphasis on high- use recreation sites and economic generators. https://flh.fhwa.dot.gov/programs/flap/ https://flh.fhwa.dot.gov/programs/flap/fl/

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Transit, Highway, and Safety Funds Many bicycle and pedestrian projects are eligible for funds under the U.S. DOT surface transportation funding programs. A table of opportunities is presented at www.fhwa.dot.gov/environment/bicycle_pedestrian/funding/funding_opportunities.cfm

DOT Federal Transit Administration – FAST Act Grant Programs The Fixing America’s Surface Transportation (FAST) Act was signed into law in December 2015. The act, which supports transit funding through fiscal year 2020, reauthorizes FTA programs and includes changes to improve mobility, streamline capital project construction and acquisition, and increase the safety of public transportation systems. A list of potential opportunities is available at www.transit.dot.gov/grants

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U.S. Environmental Protection Agency

Water Infrastructure and Resilience Finance Center’s Water Finance Clearinghouse The Water Finance Clearinghouse is a web‐based portal to help communities locate information and resources useful in making decisions for drinking water, wastewater, and stormwater infrastructure needs. The Water Finance Clearinghouse includes two searchable databases: one contains available funding sources for water infrastructure and the second contains resources such as reports, weblinks, webinars etc. on financing mechanisms and approaches that can help communities access capital for water infrastructure. www.epa.gov/waterfinancecenter

Smart Growth Implementation Assistance Program This program provides technical assistance to state, regional, and local governments that want to develop in ways that protect the environment, use resources efficiently, create economic opportunities, and enhance quality of life. National experts work with selected communities to explore barriers to smart growth implementation and pilot innovative approaches to development. Current initiatives include the Recreation Economy for Rural Communities planning assistance program. www.epa.gov/smartgrowth

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Brownfields Cleanup and Redevelopment The EPA offers several programs to help communities assess, remediate, and restore brownfield sites to productive use and revitalize affected neighborhoods. Brownfields are properties whose expansion, redevelopment, or reuse might be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. EPA offers Assessment Grants; Revolving Loan Fund (RLF) Grants; Cleanup Grants; Multipurpose (MP) Grants; Area-Wide Planning Grants; Environmental Workforce Development and Job Training (EWDJT) Grants; Technical Assistance, Training, and Research Grants; and funding opportunities passed through State brownfields programs. www.epa.gov/brownfields/

Green Infrastructure Funding Opportunities Green infrastructure stormwater management approaches infiltrate, capture, evapotranspire, and reuse stormwater to reduce polluted runoff, protect water quality, and make neighborhoods safer, healthier, and more attractive. The EPA has compiled a list of funding resources to help communities fund green infrastructure projects. www.epa.gov/green-infrastructure/green-infrastructure-funding-opportunities

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Grants.gov

Grants.gov system is a centralized location for grant seekers to find and apply for federal funding opportunities. The system houses information on over 1,000 grant programs. www.grants.gov/

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RESTORE Act

The Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act (RESTORE Act) dedicates 80 percent of civil and administrative penalties paid under the Clean Water Act by responsible parties in connection with the Deepwater Horizon oil spill to the Gulf Coast Restoration Trust Fund. The fund supports efforts for ecosystem restoration, economic recovery, and tourism promotion in the Gulf Coast region. https://restorethegulf.gov/

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______STATE

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Florida Department of Economic Opportunity

Florida Resource Directory The Florida Resource Directory is a database which can be searched by Agency, Category of Assistance, Program or Keyword. http://redi.state.fl.us/apps/redi/main_page.search

Rural Community Development Revolving Loan Program This program provides long-term loans, loan guarantees, and loan loss reserves for projects that will lead to the creation or retention of jobs, the maintenance of existing industry or economic activity, or the expansion or diversification of the local economic base. Eligible uses of loan proceeds include: the purchase of equipment; the acquisition, construction, or improvement of buildings; acquisition of land, water/sewer projects. Local governments in rural counties or economic development organizations are eligible applicants. www.floridajobs.org/RLF

Regional Rural Development Grant This grant program was established to encourage rural communities to leverage limited resources by create regional economic development organization structures that will help attract and grow businesses and build the capacity of rural leaders. Eligible applicants include organizations made up of two or more contiguous rural counties which agree to cooperatively establish an economic or tourism development office, with a desire to develop, promote, and implement sound economic strategies to improve the quality of life of the areas they serve. An organization may receive up to $50,000 or $150,000 if representing two or more rural counties. Grants must be matched by an equivalent amount of non-state resources. www.floridajobs.org/RDG

Rural Infrastructure Fund The purpose of the Rural Infrastructure Fund Grant is to facilitate the planning, preparing, and financing of traditional economic development or nature-based tourism infrastructure projects that encourage job creation and capital investment in rural communities. www.floridajobs.org/RIF 37 | P a g e

Community Development Block Grant (CDBG) Program CDBG, administered by the U.S. Department of Housing and Urban Development (HUD), provides funding for housing and community development activities. The Florida Department of Economic Opportunity (DEO) administers the State Program through the Small Cities Community Development Block Grant Program. The Small Cities CDBG program awards subgrants in four categories: Economic Development, Neighborhood Revitalization, Housing Rehabilitation, and Commercial Revitalization. Additionally, DEO manages the Office of Disaster Recovery and Neighborhood Stabilization Program when funds are appropriated. www.FloridaJobs.org/SmallCitiesCDBG

Rural Areas of Opportunity The City of Freeport is a designated Rural Area of Opportunity (RAO), a rural community that has been adversely affected by extraordinary economic events or natural disasters. This designation makes the City eligible for priority assignments for the Rural Economic Development Initiative (REDI), allowing potential reduction or waivers of match funds for various grant programs. www.floridajobs.org/business-growth-and-partnerships/rural-and-economic-development- initiative/rural-areas-of-opportunity

Community Planning Technical Assistance Grants DEO, through the Bureau of Comprehensive Planning, awards Technical Assistance Grant funds to local governments and regional planning councils to assist counties and municipalities develop economic development strategies, address local planning issues, and promote innovative planning solutions to challenges identified by local government applicants. www.floridajobs.org/community-planning-and-development/programs/community-planning- table-of-contents/technical-assistance

Waterfronts Florida Program This program offers help to Florida’s coastal communities to revitalize working waterfronts by providing resources and technical assistance for planning. www.floridajobs.org/community-planning-and-development/programs/community-planning- table-of-contents/waterfronts-florida-program

Competitive Florida Partnership This program helps communities evaluate the assets that make them special while challenging them to set realistic goals for advancing their economic development visions. A community that participates in this technical assistance opportunity is committed to innovative strategies that promote partnerships, community design, and a viable economy.

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www.floridajobs.org/community-planning-and-development/programs/community-planning- table-of-contents/competitive-florida-partnership

Florida Job Growth Grant Fund This economic development program is designed to support public infrastructure projects including transportation and utilities needed to support economic development or workforce training projects. DEO and EFI will make project recommendations to the Governor who can approve projects for funding based on local and regional needs. www.floridajobs.org/jobgrowth

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Florida Housing Finance Corporation

Florida Housing offers several special programs including the Catalyst Program, Predevelopment Loan Program, Preservation Rehabilitation Pilot Program, and State Housing Initiative Partnership (SHIP) Program. The Catalyst Program provides community-based organizations and state and local governments with technical assistance to meet affordable housing needs, and the Predevelopment Loan Program (PLP) helps nonprofit and community-based organizations, local governments, and public housing authorities plan, finance, and develop affordable housing through low interest loans. https://floridahousing.org/programs/special-programs

Florida State Housing Initiatives Partnership (SHIP) Program

Florida Housing administers the State Housing Initiatives Partnership program (SHIP), which provides funds to local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The program was designed to serve very low, low, and moderate-income families. In order to participate, local governments must establish a local housing assistance program by ordinance; develop a local housing assistance plan and housing incentive strategy; amend land development regulations or establish local policies to implement the incentive strategies; form partnerships and combine resources in order to reduce housing costs; and ensure that rent or mortgage payments within the targeted areas do not exceed 30 percent of the area median income limits, unless authorized by the mortgage lender. Presently the SHIP program for Walton County is managed by the West Florida Regional Planning Council.

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https://floridahousing.org/programs/special-programs/ship---state-housing-initiatives- partnership-program

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Florida Division of Emergency Management

Hurricane Loss Mitigation Program The Hurricane Loss Mitigation Program is a specialized hazard mitigation program aimed at minimizing damages caused by hurricanes. The program began as a response to the devastation brought by . With an annual budget of $7 million provided by the Florida Hurricane Catastrophe Trust Fund, the program funds activities that promote property resiliency through retrofits made to residential, commercial, and mobile home properties, the promotion of public education and public information, and through hurricane research activities.

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Florida Department of Transportation

Shared-Use Nonmotorized (SUN) Trail Network The SUN Trail system funds non-motorized paved shared-use trails that are part of the Florida Greenways and Trails System (FGTS) planned by the FDEP Office of Greenway Trails (OGT). http://floridasuntrail.com/

Community Traffic Safety The FDOT State Safety Office awards subgrants to traffic safety partners that undertake priority area activities to improve traffic safety and reduce crashes, serious injuries, and fatalities. Subgrants may be awarded for assisting in addressing traffic safety deficiencies, expansion of an ongoing activity, or development of a new program. Funding for these subgrants is apportioned to states annually from the National Highway Traffic Safety Administration (NHTSA) according to a formula based on population and road miles. http://www.fdot.gov/safety/3-Grants/Grants-Home.shtm

Florida Department of Environmental Protection (FDEP)

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Florida Recreation Development Assistance Program (FRDAP) FRDAP is a competitive program that provides grants for acquisition or development of land for public outdoor recreation use or to construct or renovate recreational trails. The maximum grant request is $200,000. https://floridadep.gov/lands/land-and-recreation-grants

Florida Communities Trust Program (FCT) The Florida Communities Trust Program assists communities in protecting important natural resources, providing recreational opportunities and preserving Florida’s working waterfronts through the competitive criteria in the Parks and Open Space Florida Forever Grant program and the Stan Mayfield Working Waterfronts Florida Forever Grant Program. These local land acquisition grant programs provide funding to local governments and non-profit organizations to acquire land for parks, open space, greenways, and projects supporting Florida’s seafood harvesting and aquaculture industries. https://floridadep.gov/lands/land-and-recreation-grants/content/fct-florida-communities- trust-home

Land and Water Conservation Fund (LWCF) The LWCF is a federal competitive program that provides grants for acquisition or development of land for public outdoor recreation. The maximum grant request is $400,000.00. Funds may be used for development of outdoor recreation areas and facilities such as beaches, picnic areas, trails, ball fields, tennis and basketball courts, and playgrounds along with associated support facilities such as lighting, parking, restrooms and landscaping. https://floridadep.gov/lands/land-and-recreation-grants

Recreational Trails Program (RTP) The RTP is a federally funded, competitive grant program for projects that provide, renovate or maintain motorized and non-motorized recreational trails, trail heads and trailside facilities. https://floridadep.gov/lands/land-and-recreation-grants

Coastal Partnership Initiative Grant Program (CPI) This grant program was established to promote the protection and effective management of Florida's coastal resources at the local level. Grants support four program areas: Resilient Communities, Public Access, Working Waterfronts, and Coastal Stewardship. Eligible local governments are defined as Florida's coastal counties and all municipalities within their boundaries that are required to include a coastal element in their local comprehensive plan. Florida's public colleges and universities, regional planning councils, national estuary programs

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and nonprofit groups may also apply if an eligible local government agrees to participate as a partner. www.dep.state.fl.us/cmp/grants/

Florida Statewide Comprehensive Outdoor Recreation Plan (SCORP) The SCORP is developed by the Florida Department of Environmental Protection (FDEP) as the state’s official document regarding outdoor recreational planning. This document is a valuable reference regarding Federal and State funding sources, as well as exploring ideas for local collaborative partnerships. http://www.dep.state.fl.us/parks/outdoor/scorp.htm

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Florida Fish and Wildlife Conservation Commission

Florida Boating Improvement Program (FBIP) This program offers competitive grants for boating access projects and other motorized boating- related activities on coastal and/or inland waters of Florida. Counties, municipalities, and other governments are eligible. Eligible uses of program funds include boat ramps, lifts and hoists, marine railways, and other public launching facilities; piers, docks, and mooring facilities; recreational channel marking and other uniform waterway markers; derelict vessel removal; boating education; economic development initiatives that promote boating; or other local boating-related activities that enhance boating access for recreational boaters. https://myfwc.com/boating/grants-programs/fbip/

Boating Infrastructure Grant Program (BIGP) This grant program supports developing, renovating, and maintaining public boating facilities for recreational boats 26 feet long and larger. https://myfwc.com/boating/grants-programs/

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Triumph Gulf Coast

Triumph Gulf Coast, Inc. was created by the Florida Legislature to administer a program to assist with the economic recovery in the eight counties—Bay, Escambia, Franklin, Gulf, Okaloosa, Santa Rosa, Walton, and Wakulla Counties—affected by the 2010 Deepwater Horizon oil spill. Resulting

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from the settlement with British Petroleum and appropriated through the Gulf Coast Economic Corridor Act, Triumph Gulf Coast, Inc. oversees the expenditure of approximately $1.5 Billion, of which at least 5% of the first appropriation of $300 million (4% minimum for subsequent appropriations) must be for projects located in each of the disproportionately affected counties. Persons, organizations, and local governments may apply for an award to fund projects or programs that meet the priorities of economic recovery, diversification, and enhancement. www.myfloridatriumph.com/

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APPENDIX 1: WALTON COUNTY INDUSTRY ANALYSIS

An overarching goal of the Walton County Economic Development Strategy is to create economic resilience and industry diversification with efforts to grow the local economy. To do so, understanding the current industry mix and employment trends is important. Walton County’s many tourism-related industries and strong real estate development market contribute heavily to the area’s economic vitality, and that is likely to continue. It is therefore important to recognize and give retention-oriented support to the connected base of businesses on which this market depends.

Likewise, there will occasionally be fluctuations, sometimes extreme ones, in these sectors often because of circumstances external to the county. Being positioned to grow new future-oriented businesses across sectors and build upon unexploited local strengths begins with analysis of the same data, applied differently.

Location Quotients

Location quotients (LQ) help characterize an area’s business composition by comparing employment data to that of a larger area (region, state, or nation). LQ will identify export industries in an area (those industries producing more of a good or service than is needed to meet area demand) and import industries (those producing less than enough to meet area demand.) An LQ greater than 1 indicates an area has proportionately more workers than the

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larger comparison area employed in a specific industry sector. The concept underlying LQ is that if an area is producing more of a product than is consumed locally, the excess is available for export outside the area. An LQ of at least 1.25 is needed to consider classifying an industry as an export industry. An LQ greater than 1.25 does not necessarily mean that an area industry is exporting, however, because there may be greater than average local demand.

Identifying and tracking area export industries can be used to quantify the degree of industry specialization within an area. A high LQ in an area industry may indicate a competitive advantage exists for that industry locally, and opportunities may exist to build upon successful sectors. The presence of an existing skilled labor pool or other resources such as suppliers, facilities, or transportation assets in the region can be competitive advantages. Identifying concentrations, or clusters, of related industries in an area and understanding those industries’ dynamics and trends underpins most local Economic Development strategies.

An LQ significantly less than 1 may indicate an opportunity to grow businesses to meet local demand. Additional market data on leakage may be needed to understand how current gaps are being filled.

Establishment-based Largest Industries by Industry Sector in Walton County *

Walton County’s largest industry based on establishment-reported employment is Accommodation and Food Services (5,443), followed by Arts and Entertainment (4,042), Educational Services, Health Care and Social Assistance (3,917), and Retail Trade (3,825). These industries align with Walton County’s Tourism-based economy, recent population growth, and the strong real estate development market for prime coastal property locations.

Since 2010, the industries adding the most employment in the county were Professional, Scientific, Management, Administrative and Waste Services (+1,259 jobs), Retail Trade (+1,089), and Accommodations and Food Services (+891). Fastest-growing sectors include Real Estate, Rental and Leasing (76.7% growth), Professional, Scientific, Management, Administrative and Waste Services (56.4%), Transportation and Warehousing (47.8%), Retail Trade (39.8%) and Manufacturing (35.4%). Construction, still a dominant job sector, shows reduced employment, though there is demonstrated unmet demand locally for skilled construction workers.

Industries with an LQ >1.25 are Real Estate, Rental and Leasing (2.85), Utilities (2.71), Accommodations and Food Services (2.23), Construction (1.70), and Retail Trade (1.26), indicating that these industries have a higher share of employment in Walton County than what 45 | P a g e

would be expected by national averages. Understanding the local economic base, these industry sectors are largely driven by local demand rather than export factors.

*Industry data is collected by establishment and not by corporate entity. An establishment is defined as a single, physical location of economic activity. (For example, a company with corporate offices, manufacturing facilities, and warehouses in multiple locations would be counted as multiple establishments, each classified by type of activity.)

2010 2010-2016 2016 2016 JOBS JOBS 2010 2016 AREA CHANGE IN LOCATION U.S. WALTON EST. EST. JOBS QUOTIENT CO WALTON WALTON WALTON CO CO 2-DIGIT CO INDUSTRY 148,001,326 23,190 3,190 13.8% NAICS

Agriculture, 11 Forestry, Fishing, 2,843,703 293 -7 -2.4% 0.56 5 7 and Hunting

Mining, Quarrying, and 21 587,017 20 -9 -45.0% 0.11 7 4 Oil and Gas Extraction

22 Utilities 638,917 261 48 18.4% 2.71 14 15

23 Construction 9,256,637 3,398 -594 -17.5% 1.70 235 304

31 Manufacturing 15,316,355 888 314 35.4% 0.44 29 38

42 Wholesale Trade 3,993,420 519 -167 -32.2% 0.49 48 54

44 Retail Trade 17,027,853 2,736 1,089 39.8% 1.26 364 399

48 7,411,283 737 352 47.8% 0.82 29 32

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Transportation and Warehousing

51 Information 3,131,838 276 34 12.3% 0.56 15 29

Finance and 52 6,336,795 297 -7 -2.4% 0.26 83 81 Insurance

Real Estate, 53 Rental and 2,111,418 606 465 76.7% 2.85 159 267 Leasing

Professional, Scientific, Management, 54 16,516,075 2,233 1,259 56.4% 1.19 182 249 Administrative, and Waste Services

Educational Services, Health 61 34,202,980 3,418 499 14.6% 0.64 9 14 Care, and Social Assistance

Arts and 71 14,316,298 3,475 567 16.3% 1.58 22 25 Entertainment

Accommodations 72 and Food 13,704,017 4,552 891 19.6% 2.23 224 224 Services

Other Services, 81 Except Public 7,275,839 1,375 -89 -6.5% 0.99 115 142 Administration

Public 92 6,977,436 1,612 -145 -9.0% 1.18 94 115 Administration

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APPENDIX 2: Walton County Community Profile

Early History

Walton County was established as a political jurisdiction in 1824 with land area negotiated from Escambia County. At that time the population was estimated to be around 1,207. In 1846, land was given by Walton County to found Washington County. A northeastern portion was offered in 1848 to form Holmes County, and in 1915, a portion of Santa Rosa County and Walton County was given to form Okaloosa County. After each of these surrounding boundaries were established, Walton County was still and remains today one of the largest counties in Florida in land area (1,238 square miles). Incorporated communities include the City of Defuniak Springs, the City of Freeport, and the Town of Paxton.

Early settlers were largely of Scottish descent, and crop farming was the occupation of most of the population. In later years, one of the principal agrarian-industrial advances of the county was the introduction of poultry farming. Opportunities in logging and the harvesting of pine gum and turpentine ultimately played a role in the continued growth of the area. In the late 1800s, towns were beginning to form, including Point Washington, located south of Freeport. Point Washington developed around a productive sawmill that exported lumber around the world. Along with farming, the sawmill became one of the economic drivers for the county.

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Population

Significant to its pressures and opportunities, Walton County is one of the largest and fastest growing counties in the . The County’s population increased by 19% between 2010 and 2018 to reach 65,599. It ranked 8th among Florida counties in growth from 1990-2000 and from 2000-2010, and 4th from 2010-2017 (BEBR). The U.S. Census Bureau ranked Walton County the 19th fastest growing county in the country in 2016. The dominance of the tourism economy, the surge of new coastal real estate development following the recent economic recession, and increased military deployments at Eglin Air Force Base and have contributed to rapid population growth for the county. Yet still Walton County's population density is about 5 times lower than the State average, with rural residents making up about 55% of the population.

Around 15% of Walton County’s topography is water, and roughly 20% of the County's land area is occupied by Eglin Air Force Base and its contained perimeter. Choctawhatchee Bay informally divides the County into areas simply known locally as “North Walton” and “South Walton.” North Walton covers about 790 square miles and contains Defuniak Springs, Freeport, and Paxton. South Walton covers about 118 square miles and consists of the unincorporated communities, which include 16 beach communities on the Gulf of Mexico south of the Bay.

Because of the County’s unique geography and resulting development patterns, the community profile characteristics of Walton County are in many cases described with these designations. The distinctions between the two areas are notable enough that approaches to local policymaking, community and economic development, and urban and rural planning issues are often different from one end of the County to the other. There is recognition, however, that implementing successful strategies to build a higher quality of life is a shared goal, requiring resources and participation from all corners.

Most of the County’s population lives in North Walton, as shown in Figure 1. The most populous city in Walton County is Defuniak Springs, which is the county seat and is centrally located in the county. Figure 1: Population (2000 – 2018) Walton Year North County 2000 30,864 9,737 40,601 15,982,378 2010 36,591 18,452 55,043 18,801,310 2018 41,674 23,925 65,599 20,875,686 2000-2010 Annual Growth 1.9% 9.0% 3.6% 1.8% 2010-2018 Annual Growth 1.7% 3.7% 2.4% 1.4%

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Source: 2000/2010 US Census Bureau, Esri 2019

Walton County’s natural beauty and proximity to military installations have made it a popular destination for both retirees and tourists, many of whom end up relocating once they visit. More people are moving to Walton County than due to natural increase, as 90% of growth between 2010 and 2017 was due to migration; only 10% was natural increase, according to Bureau of Economic and Business Research (BEBR) population estimates. South Walton experienced an exceptionally rapid annual growth rate between 2000 and 2010 (9.0%), and between 2010-2018 (3.7%).

Walton County’s population is comprised of 52% males and 48% females (See Figure 2). The largest age cohort countywide is 55-64, followed by the 45-54 age cohort. Walton County has a slightly higher percentage of prime workforce age population (35-54) than the State of Florida. The median age for the county is 44, with most of the older population residing in South Walton due to abundant retirement communities and diverse amenities.

Figure 2: Population by Gender and Age (2018) Walton Planning Area North South Florida County Total Population 41,674 23,925 65,599 20,875,686 Males 52.1% 49.1% 51.0% 48.9% Females 47.9% 50.9% 49.0% 51.1% 0 - 4 5.8% 4.8% 5.4% 5.3% 5 - 9 6.0% 5.2% 5.7% 5.4% 10 - 14 5.9% 5.1% 5.6% 5.6% 15 – 24 10.7% 8.3% 9.8% 11.9% 25 – 34 13.2% 12.0% 12.7% 13.2% 35 – 44 12.1% 12.6% 12.3% 11.7% 45 – 54 13.2% 13.2% 13.2% 12.7% 55 – 64 14.5% 16.7% 15.3% 13.6% 65 – 74 11.7% 13.9% 12.5% 11.5% 75 – 84 5.4% 6.0% 5.6% 6.3% 85 + 1.7% 2.2% 1.9% 2.7% 18+ 79.1% 82.5% 80.3% 80.5% Median Age 42.0 46.6 43.7 42.3 Source: Esri 2019

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Educational Attainment

15 % 32% No High Some School College/Associate Diploma 26% s Degree 27.4%

GED/High Bachelor’s/Grad/ School Professional Degree

Of the 25 and older population in Walton County, 32% has some college experience or an Associate degree, which is higher than the State of Florida (See Figure 3). 27% of Walton County’s 25 and older population has a Bachelor’s, Graduate or Professional degree, slightly lower than the State of Florida. Most of Walton County residents with Bachelor’s, Graduate or Professional degrees live in South Walton.

Figure 3: Population 25+ by Educational Attainment (2018) Walton Area North South Florida County Total Population 25+ 29,856 18,344 48,200 14,984,858 Less than 9th Grade 5.9% 1.0% 4.0% 5.1% 9th - 12th Grade, No Diploma 14.8% 4.2% 10.7% 7.4% High School Graduate (includes 33.1% 14.6% 26.0% 28.6% equivalency) Some College, No Degree 23.0% 24.9% 23.7% 20.0% Associate Degree 7.2% 9.2% 8.0% 9.8% Bachelor's Degree 10.1% 32.2% 18.5% 18.4% Graduate/Professional Degree 5.9% 13.9% 8.9% 10.6% Source: Esri 2019

Labor Force

Walton County has a tourism-based economy, which accounts for most of the job supply in the county. The county has a labor participation rate of 97%, which is defined as the working population between the age group of 16-64. Most of the working population are employed in the Services industry, followed by Retail Trade then Construction, as shown in Figure 4. Due to the 51 | P a g e

lack of economic sector diversity and jobs in the North Walton area, Retail Trade then Services are the top industries.

Figure 4: Civilian Employed Population 16+ by Industry (2018) Walton Area North South Florida County Total Civilian Employed 16,939 14,275 31,214 9,428,446 Population 16+ Agriculture/Mining 1.7% 0.3% 1.1% 1.1% Construction 11.6% 12.8% 12.1% 7.4% Manufacturing 4.6% 3.7% 4.2% 4.9% Wholesale Trade 0.7% 1.4% 1.0% 2.5% Retail Trade 14.8% 12.0% 13.5% 12.7% Transportation/Utilities 5.1% 2.1% 3.7% 5.3% Information 1.3% 0.7% 1.0% 1.6% Finance/Insurance/Real 4.3% 10.5% 7.2% 7.7% Estate Services 49.2% 54.1% 51.4% 52.5% Public Administration 6.7% 2.3% 4.7% 4.4% Source: Esri 2019

Walton County’s average unemployment rate for 2018 was 3% (See Figure 5), lower than the State of Florida (3.6%) and the U.S. (3.9%). The average unemployment rate has slightly decreased from 2017, which was 3.6%.

Figure 5: Unemployment Rates (2018)

Source: Bureau of Labor Statistics 52 | P a g e

Income and Spending

As shown in Figure 6, households in Walton County earn a median household income of $51,246, comparable to the State of Florida’s median household income ($52,098). Incomes in South Walton are substantially higher than the rest of the county, which skews representation for the remaining population, as a significant proportion of the population has an income of less than $30,000. Walton County has a poverty rate of 17% according to the 2017 American Community Survey (2017).

Figure 6: Households by Income (in 2017 Inflation- Adjusted Dollars) Walton Area North South Florida County Households 16,045 10,456 26,501 8,152,474 <$15,000 14.8% 5.3% 11.1% 11.7% $15,000 - $24,999 12.7% 6.4% 10.2% 10.6% $25,000 - $34,999 13.0% 10.6% 12.1% 10.7% $35,000 - $49,999 16.5% 13.2% 15.2% 14.7% $50,000 - $74,999 20.3% 18.2% 19.5% 18.7% $75,000 - $99,999 9.4% 13.8% 11.1% 11.9% $100,000 - $149,999 9.1% 15.2% 11.5% 12.1% $150,000 - $199,999 2.5% 7.7% 4.6% 4.5% $200,000+ 1.7% 9.4% 4.8% 5.1%

Median Household $42,363 $68,118 $51,246 $52,098 Income Source: Esri 2019

Walton County residents spend most of their earnings on shelter, health care, groceries, dining out, and entertainment/recreation. In North Walton, residents spend over 35% of their income on housing expenses due to high median home values and low wages (See Figure 7). Consistent

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with the tourism-based economy, seasonal population, and retirement lifestyles, most residents in South Walton spend most of their earnings on shelter, health care, groceries, dining out and entertainment and recreation.

Figure 7: Average Annual Household Consumer Spending (2018)

Area North South Walton County Florida Shelter $10,809 $19,396 $14,153 $15,189 Health Care $4,410 $7,374 $5,616 $5,303 Groceries $3,682 $6,044 $4,657 $4,606 Dining Out $2,422 $4,154 $3,115 $3,203 Entertainment/Recreation $2,328 $3,974 $2,989 $2,926 Support Payments/Cash $1,772 $3,124 $2,303 $2,267 Contributions/Gifts in Kind Apparel & Services $1,477 $2,511 $1,894 $1,961 Travel $1,374 $2,625 $1,846 $1,925 Household Furnishings & $1,460 $2,555 $1,893 $1,908 Equipment Education $832 $1,569 $1,111 $1,237 Vehicle Maintenance & $790 $1,322 $1,007 $991 Repairs Personal Care Products & $572 $1,003 $742 $761 Services Source: Esri (Based on 2015/2016 Consumer Expenditure Surveys, Bureau of Labor Statistics)

Housing

There are 55,578 housing units within Walton County, with 32.6% reported as owner-occupied and 15.1% renter-occupied (see Figure 8). The remainder are recorded as vacant, corresponding to the substantial number of seasonal homes in South Walton County. The median home value in Walton County is $222,725, slighty higher than Florida’s median home value of $212,954. In South Walton, the median home value is $397,215, while the median home value in North Walton is $153,052. $222,725

Taking into consideration the median household income for the county and Median Home Value median home values, residents can be priced out of the market or are considered cost-burdened if spending over 30% of their income on housing expenses

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Figure 8: Housing Unit Summary (2000 – 2018) Area North South Walton County Florida 2000 Total Housing Units 14,613 14,470 29,083 7,302,947 Occupied Housing Units 82.3% 31.2% 56.9% 86.8% Owner Occupied 65.6% 24.1% 45.0% 60.8% Renter Occupied 16.7% 7.1% 11.9% 26.0% Vacant Housing Units 17.7% 68.8% 43.1% 13.2% 2010 Total Housing Units 18,185 26,947 45,132 8,989,580 Occupied Housing Units 77.4% 30.5% 49.4% 82.5% Owner Occupied 58.2% 20.8% 35.9% 55.6% Renter Occupied 19.2% 9.7% 13.5% 26.9% Vacant Housing Units 22.6% 69.4% 50.6% 17.5% 2018Total Housing Units 21,113 34,465 55,578 9,790,195 Occupied Housing Units 76.0% 30.4% 47.7% 83.2% Owner Occupied 54.2% 19.4% 32.6% 53.0% Renter Occupied 21.8% 11.0% 15.1% 30.2% Vacant Housing Units 24.0% 69.7% 52.3% 16.7% 2000-2010 Annual 2.4% 8.6% 5.5% 2.3% Growth 2010-2018 Annual 2.0% 3.5% 2.9% 1.1% Growth 2018 Median Home $153,052 $397,215 $222,725 $212,954 Value Source: 2000/2010 US Census Bureau, Esri 2019

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APPENDIX 3: Existing Assets Inventory

Walton County benefits from high residential and visitor demand related to the county’s location, amenities, and high-ranked quality of life. There is a beautiful natural environment and associated recreational opportunities, as well as a distinctive character among its coastal communities and historic towns. Identifying Walton County’s existing assets can be the foundation for creating plans and growth strategies that align with the county’s competitive advantages and goals.

ASSET 1: Transportation

Roads

The main vehicular transportation corridors in Walton County are Interstate 10, U.S. Highway 90, U.S. Highway 331, State Road 20, and U.S. Highway 98. Interstate 10, traversing Walton County, serves the southern tier of the U.S. as the main east-west link for truck transport to and from California and Jacksonville. Exits from Interstate 10 are located at DeFuniak Springs and at Mossy Head Industrial Park. U.S. Highway 331 is the main north-south route through the County. U.S. Highway 331 is currently being expanded from a two-lane undivided roadway to a four-lane divided roadway. Construction is being completed in phases from south to north. The segment of U.S. 331 that is north of I-10 is undergoing the Project Development & Environment Study (PD&E) phase of the process to determine future capacity and mobility needs. There is also a

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PD&E Study being conducted on State Road 20, the east-west connection just north of Choctawhatchee Bay.

The Okaloosa-Walton Transportation Planning Organization’s (O-W TPO) 2040 Long Range Transportation (LRTP) also includes projects such as express transit routes between DeFuniak Springs and CR 30A in South Walton and the 6-laning U.S. 98 from Mack Bayou Road to U.S. 331. The O-W TPO’s 2040 LRTP is composed of the Needs Plan and the Cost Feasible Plan. The Needs Plan includes all projects needed by the year 2040. The Cost Feasible Plan is financially constrained to the revenues the TPO expects to receive and is comprised of the projects the TPO expects to fund by the year 2040. The first Needs Plan amendment in December 2017 included two projects in Walton County: a pedestrian underpass at U.S. 98 and CR 30A East in Santa Rosa Beach and a flyover interchange at U.S 98 and U.S. 331 in Santa Rosa Beach. The TPO then requested an amendment to the Cost Feasible Plan for the PD&E and Design phases for these two projects. Annually, the TPO prioritizes the Cost Feasible Plan Projects to send to FDOT. The current adopted Project Priorities for the Okaloosa-Walton TPO was adopted July 20, 2017 and include:

• Area-Wide Traffic Signal System • SR 20 from Okaloosa County Line to Washington County Line o PD&E Funded FY 17/18 o The Priority request is for the next unfunded phase (Design) • Alternative Fuel Stations Program (not exclusive to Okaloosa or Walton County) • Public Transportation Capital Improvements Flex Funds (not exclusive to Okaloosa or Walton County) • Park and Ride Lot at SR 20 and East Bay Loop Road in Freeport • US 98 from Mack Bayou Road to CR 30A – Widen to 6 lanes o PD&E Complete o Design – Underway o The Priority request is for the next unfunded phase (Construction) • US 331 from US 90 to South of Holley King Road – Widen to 4 lanes o PD&E – Underway o Design – Funded in FY 20/21 o The Priority request is for the next unfunded phase (Right-of-Way) • US 331 from South of Holley King Road to North of Middle Creek Bridge – Widen to 4 lanes o PD&E – Underway o Design – Funded in FY 20/21 o The Priority request is for the next unfunded phase (Right-of-Way) • US 331 from Coy Burgess Road to US 90 – Widen to 4 lanes o PD&E – Underway o The Priority request is for the next unfunded phase (Design) • US 98 at CR 30A West – Intersection Improvement o The Priority request is for the first phase (PD&E) 57 | P a g e

County Road 30A is a heavily traveled two-lane roadway that connects the populous South Walton coastal communities of Seaside, Grayton Beach, Rosemary Beach, and Blue Mountain Beach. The roadway is subject to severe traffic congestion, especially during the peak season. The area surrounding 30A is substantially developed, allowing little room to expand. The Seaside Institute is engaged in leading public discourse and research on sustainable alternatives. The favored long-term solution is to introduce remote parking design (Park & Ride lots) and promote autonomous vehicles as a viable substitute for personal vehicles. Until autonomous vehicles advance beyond safety prototyping to road-readiness, a strategy of broadening use of conventional public transportation services to reduce congestion and parking demand along 30A will be endorsed.

WALTON COUNTY has three voting members on the 19-seat

OKALOOSA-WALTON TRANSPORTATION PLANNING ORGANIZATION

The TPO is the local, intergovernmental transportation policy board for Okaloosa and Walton counties in Florida. The board is comprised of local government officials who make decisions regarding transportation at the regional level. The Okaloosa-Walton TPO is required by federal and state legislation to establish a continuing, cooperative, and comprehensive planning process. The TPO also works to increase safety, security, accessibility, mobility, and connectivity for people and goods.

The TPO prioritizes how transportation dollars are spent in the region. These transportation dollars are traditionally from federal and state fuel taxes. Local governments can increase these funds by using other revenue sources, including first local option gas tax, second local option gas tax, Ninth-Cent gas tax, Local Government Infrastructure Surtax, Toll Revenues, Bond Issues, Impact Fees, Municipal Services Taxing Units, Transportation Outreach Program, and County Incentive Grant Program.

Railroad

CSX Transportation has recently negotiated the sale of its rail mainline that runs through Walton County, linking with Jacksonville. RailUSA will purchase 373 miles of track spanning northern Panhandle routes and will lease to Florida Gulf & Atlantic as operator. Amtrak passenger service ceased using the rail in 2005 when portions were damaged by Hurricane Katrina. The line was rebuilt, but routes east of New Orleans were not resumed.

A rail spur in Mossy Head was once established to provide service to Eglin Air Force Base; however, it is not utilized. The potential sale may mean an opportunity to work with a shortline 58 | P a g e

Class III carrier to deliver service scaled to local businesses with an interest in rail shipments. CSX retains trackage rights to access the rail in case of an emergency or natural disaster. Port

Walton County benefits from a barge port located on Freeport’s LaGrange Bayou, which has access to the Choctawhatchee Bay in Walton County. The port connects the City of Freeport with the Northern Gulf Intracoastal Waterway, which stretches 1,300 miles from Brownsville, Texas, east to St. Marks, Florida. The port houses privately-operated facilities that handle dry and liquid bulk cargo. In 2013, it moved 262,319 tons of cargo, and petroleum and petroleum products were the top commodities. Airport

The DeFuniak Springs Municipal Airport is the public airport in Walton County and is owned and operated by the City of DeFuniak Springs. The airport is situated on 343 acres of land located approximately 2.5 miles west of the City's Central Business District. With its two runways, the longest of which is 4,146 feet, the airport can accommodate multi-engine and small general aviation business jet aircraft. In addition to private and recreational flying, the airport also supports business and corporate aviation. The airport’s tenants include Emerald Coast Aero, which provides helicopter sales and service, and Monarch Aviation, which provides aircraft maintenance services. ONVOI Global Services, which provides aviation service to government agencies, recently established corporate headquarters in DeFuniak Springs.

ASSET 2: Infrastructure

Utilities

Electricity in Walton County is provided by Gulf Power or CHELCO. Natural Gas is provided by Okaloosa Gas District or the City of DeFuniak Springs. Water is provided by the City of Paxton, City of DeFuniak Springs, City of Freeport, South Walton Utility Co., Regional Utilities, Mossy Head Water Works, and Argyle Water District. As shown in Figure 9, Wastewater Treatment is provided by Walton County, City of DeFuniak Springs, City of Freeport, Regional Utilities, or South Walton Utility Co.

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Figure 9: Walton County Utility Services Areas

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Regional Utilities serves areas in Walton County south of Choctawhatchee Bay. Water and wastewater services extends east-west approximately from the Rosemary Beach area to the Sandestin Resort. Regional Utilities has been a franchised operator for the County since 1985. Regional Utilities operates three wastewater treatment plants and multiple well sites, including a sub-aqueous water line connecting South Walton to the Rock Hill wellfield north of the City of Freeport. Regional Utilities seeks to construct an 11-mile expansion of the 30-inch main water line along U.S. Highway 331 from Choctawhatchee Bay to the existing Owl’s Head well-field north of the City of Freeport.

Not attaining appropriate levels of service for each utility will restrict the safe and sanitary growth of a community. Potential new industries and businesses will be dissuaded from locating in a community if the infrastructure is aging, currently inadequate, or projected to be inadequate in the future.

Limited water supply and increased water use were listed as forces of change in the 2016 Community Health Needs Assessment for Walton County conducted by Sacred Heart Health System and Florida Department of Health (FDOH) – Walton County. Although the water supply is currently described as “good,” which allows people to continue living in outlying areas, the limited water supply could eventually mean a shortage of water in Walton County. There is need to educate the public and policy makers on the importance of water conservation efforts.

Increased sewage was also listed as a force of change. As the population increases, the corresponding increase in demand for more septic tanks and more treatment plants could cause strain on sewage systems, amplified by risk of flooding and other storm related events. There is a need to develop sewer systems in areas that have a high potential for generating negative health impacts from wastewater contamination as well as educating residents and revising rules and regulations.

The challenge persists to greatly expand and improve water and wastewater services to both protect the environment and to encourage economic development. Walton County is in the Choctawhatchee Bay Watershed and the portion of the county south of and including the City of Freeport is in a Water Resource Caution Area (WRCA). WRCA’s have been established by the Northwest Florida Water Management District to protect the area's water resources from depletion, salt water intrusion or man induced contamination, or from any other activity which may substantially affect the quality or quantity of the area's water resources.

Broadband

Today, communication and information networks are paramount to fostering a competitive business environment and improving quality of life for residents and visitors. Business, health

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care, and higher education institutions simply cannot thrive without it. Broadband provides residents open access to teleworking options, education, entertainment, and information.

Private telecommunications providers have in fact invested millions of dollars to expand the availability of high-speed internet and broadband services to business hubs in municipalities throughout Walton County. However, as is true many places, Walton County’s rural communities face a disadvantage when it comes to internet accessibility and affordability. The lack of market viability for fiber deployment in sparsely populated areas is a barrier that often requires local, state, or federal policy and funding intervention strategies.

As a part of the Walton United Broadband Initiative, which is a means to find solutions to address the lack of broadband in the under-served areas, the county seeks to construct a 6-mile Wi-Fi radius around libraries and institutions. The County is starting off with a pilot project of 3-mile radiuses around the Walton County Coastal Branch Library in Santa Rosa Beach and the Gladys N. Milton Memorial Library in Paxton. This project will build off the existing fiber optic infrastructure which will provide citizens and tourists with the ability to connect to the internet. By utilizing libraries and community centers, the intent is to provide free Wi-Fi access to majority of the county.

Walton County has also engaged Connected Nation to prepare a feasibility study to assess the current broadband infrastructure. Connected Nation is a non-profit organization that works with communities to develop and provide tools, resources, and methods to help create and implement solutions to broadband and digital technology gaps. Ultimately, the study will lead to the preparation of a Broadband Technology Action Plan.

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Figure 10: Existing Fiber Infrastructure Completed

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Critical Facilities

Critical Facilities are the essential resources and services that ensure community wellbeing, continuity of public health and safety protections, coordinated operations, and official civil communications. Shelters, emergency operations and disaster recovery centers, public health, public drinking water, sewer and wastewater facilities are examples of critical facilities. Appropriate capacity of critical facilities plays a significant role in the resiliency of a community.

Hospitals and care facilities; educational institutions; emergency operations centers; communications resources; water, wastewater, and landfills; and public evacuation shelters are depicted on the respective maps from the Statewide Regional Evacuation Study (2010). Most of the facilities are located near areas of denser population in South Walton and the Cities of Freeport, DeFuniak Springs, and Paxton.

Two major medical complexes serve the residents and businesses of Walton County. Healthmark Regional Medical Center is located south of DeFuniak Springs and serves the northern and central portions of Walton County. Sacred Heart Medical Center of the Emerald Coast is situated in Santa Rosa Beach, serving all the South Walton beach communities as well as portions of Okaloosa County. The Florida Department of Health (2016) reports that Health and Human Services Organizations have indicated that the following healthcare services are difficult to get in the County: specialty medical care (specialist doctors), primary medical care (primary care doctor/clinic), alcohol or drug abuse treatment, mental health services, services for the elderly, alternative therapies, and preventative healthcare. The report also identified dental care as deficient in the County. Perceptions of lack of access to healthcare services may arise for several reasons, including absence of or too few resources, or lack of awareness of their existence or how to access them.

The Walton County Sherriff’s Office has five districts and bureaus: Walton County Sherriff’s Office in DeFuniak Springs, South Walton Substation in Santa Rosa Beach, Freeport Substation, Paxton Substation in Laurel Hill, and Mossy Head Substation.

Walton Fire-Rescue is a 100-member, career fire-rescue organization that responds from 10 stations and serves a population of approximately 30,000 residents living within 738 square miles. Walton Fire-Rescue provides automatic and mutual aid to four other fire districts within Walton County and is the primary provider for Advanced Life Support Emergency Medical Services in all areas north of Choctawhatchee Bay. The South Walton Fire District (SWFD) is a fire- rescue agency located in the southern portion of Walton County. The SWFD is responsible for Fire Protection, Emergency Medical Service Transport, Beach Lifeguards, Hazard Mitigation, Public Education and Prevention, as well as 911 Communication activities for 84 square miles. 64 | P a g e

ASSET 3: Available Land

Land availability and access are key factors in achieving economic growth and sustainable development. The efficient use of land focuses public and private investment in areas where it can take advantage of past infrastructure investments to create economic value by generating higher property tax revenue, reducing costs of infrastructure, and providing redevelopment and reuse opportunities. The focused investment can also spur business activity and job creation in these locations.

A significant amount of vacant land is available in the north that is suitable for a wide range of productive uses; however, infrastructure is not available for many of those properties to be considered shovel-ready. The amount of vacant developable land in the southern areas of Walton County is very limited, as demand has been high for some time and most of the remaining available land tracts are wetlands. Inventorying, assessing, and preparing suitable sites for development is an ongoing strategy. Upon widening U.S. 331, the provision of water and sewer along the corridor, and development of catalyst projects such as the Veterans Lodge and Owl’s Head, it is anticipated that the increased infrastructure capacity, jobs, and services provided from these developments will spur economic growth in North Walton.

Several sites in Walton County contain abandoned structures that may be viable for redevelopment or may require demolition. An example is the former Perdue poultry processing plant in DeFuniak Springs, located along U.S. Highway 90. The plant closed in 2004 and the site contains abandoned, derelict structures that have been unoccupied for over a decade. Subject to the needs of a particular business, vacant land or a new, modern shell building may be preferable. Existing buildings may have functional use limitations or structural issues, and the cost of rehabilitation and retrofitting may be more than the cost to build from scratch. Redeveloping neglected or abandoned properties can provide businesses and local government with new economic development opportunities in the existing development footprint. Reusing historic buildings can preserve a neighborhood or downtown character, making it a more attractive place for businesses and people to locate. In addition, redeveloping properties already served by infrastructure and utilities not only saves communities and developers the costs of new infrastructure, but also takes advantage of past investment. The increase in surrounding property values that occurs when blighted properties are addressed enhances the tax base and public revenues.

DeFuniak Springs Industrial Park is located within the Defuniak Springs Municipal Airport and has access to major federal and state highways. The 296.8-acre park is owned and operated by the City of Defuniak Springs. The industrial park is also a Florida First Certified Industrial Park with two site certifications. Florida First Sites is a regional site certification program established

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by Gulf Power that ensures that sites are ready for development. Targeted industries for the development are Aerospace, Defense, Manufacturing, and Aviation.

Walton County Industrial Park at Freeport is approximately 100 acres and is owned by the Walton County Economic Development Alliance. The park has been developed in phases with improvements to infrastructure, such as roadways and the storm water system, to attract businesses. The park has been successful in filling vacancies and currently has no space available. The county is looking at acquiring nearby parcels to expand the park.

Mossy Head Industrial Park is 350 acres and has access to Interstate 10 from State Road 285, as well as a dedicated spur track. Several sites in the park are developed with retail and industrial uses. The intended use of the property is to develop a mixed-use commercial and industrial park. Several parcels are also available for future development.

Paxton Industrial Park is a 23-acre site located and owned by City of Paxton. Currently developed on site is a 10,000 square foot distribution building. The site also contains a water tower which limits the development potential of the industrial park due to the setback requirements from the tower.

Walton County Commerce Park is 134 acres and is situated along Scenic Highway 98 in Santa Rosa Beach. The Walton County Commerce is privately owned by St. Joe Company, a land development company. The commerce park is a component of a 50-year plan to develop a traditional neighborhood development. Therefore, the types businesses and industries allowed in the park are restricted to uses that would be compatible with the community.

ASSET 4: Tourism

Walton County has a flourishing tourism economy. There are sixteen distinct beach communities in South Walton that extend along County Road 30A, a once-unassuming corridor that today has an international following, year-round visitors, and its own recognized up-market branding. Seaside is one of the first and most renowned examples of a master-planned, mixed use, walkable community designed based on New Urbanism principles. Rosemary Beach is another destination community, modeled after the architectural influences of the Dutch West Indies and blend of other styles. All of these linked communities offer 30A historical and cultural festivals, shopping, dining, and lodging choices that retain a unique flavor, though other developments since have emulated their stylistic influence. There are opportunities and plans to expand tourism in the

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nearby inland communities of Freeport and DeFuniak Springs as well, with a focus on history, sport parks, hiking trails, and kayaking streams unique to those places.

Economic Impact of Tourism

The Accommodation & Food Service and Arts, Retail Trade and Entertainment & Recreation industries are the primary drivers for Walton County’s economy and directly serve the tourism industry. According to Esri, 33,759 people were employed in Walton County, of which 23.4% were in Accommodation & Food Services and 15.6% were employed in Retail Trade. 11.4% were employed in Arts, Entertainment, & Recreation. Most of those jobs are located in the southern part of the county. Accommodation & Food Services accounted for 6.8% of businesses and 9.3% of employees in North Walton compared to 13.4% of businesses and 29.3% of employees in South Walton.

The Tourist Development Council has developed a professional and successful strategy to keep visitors coming. The TDC oversees expenditure of revenue from a Tourist Development Tax (TDT), which is a local sales tax on transient rentals that applies to properties south of the Intercoastal Waterway and all of Walton County’s beaches south of Choctawhatchee Bay. Revenue from the TDT is restricted in use, and is primarily expended on marketing, promotion, and beach maintenance. TDT collection ranges greatly between low season and peak season.

South Walton’s Economic Impact of Tourism 2017 Report indicated that there were 4,010,500 visitors in 2017, an 8.6% increase from 2016. The report also showed that tourism has a greater than $4.408 billion impact on the local economy. This number included $2.978 billion in direct impacts; $749,461,100 in induced impact attributed to increased business spending; and $680,354,700 in indirect impact attributed to household spending resulting from tourism dollars. Visitor spending in 2017 led to 21,900 direct jobs, and the total economic impact including indirect and induced visitor spending resulted in 28,400 jobs. The report indicated that visitors accounted for 65.6% of Walton County’s government revenues in 2017.

Environmental and Economic Resilience

The positive impact of tourism cannot be overstated as an economic and quality of life benefit to the area. However, there are increasing questions from citizens about how the County can or should keep up with infrastructure capacity demands. Also, the reliance on the jobs and tax base created by tourism-related services has been countered with calls to focus on growing other higher-wage industry sectors to support the community. Visible crisis points such as the BP Horizon oil spill and its after-effects, the economic downturn affecting housing development and 67 | P a g e

disposable incomes, and recent hurricanes have driven the discussion to the forefront of policymakers’ agendas.

Due to most of the current Tourism and Hospitality industry being near the coast, Walton County is naturally at risk of economic disruption from natural hazards, such as hurricanes, floods and storm surges. Diversification of industries farther away from areas vulnerable to hazards would improve the County’s economic resiliency. In addition to the Walton County Hurricane and Storm Damage Reduction Plan (Beach Nourishment Project), coastal management practices intended to preserve natural resources and human life will also protect property values and businesses in south Walton County.

There are opportunities to invest in the preservation and enhancement of the natural resources on which much of Walton County’s tourism and quality of place relies. Much of the County is within the Choctawhatchee River and Bay Watershed, which flows into the Choctawhatchee Bay and ultimately the Gulf of Mexico. The Choctawhatchee Basin Alliance (CBA) has monitored the health of the bay and promoted water stewardship since 1996. Recently the CBA has partnered with Northwest Florida State College, local governments including Walton County, and numerous local stakeholders to promote the potential for an Estuary Program to enhance this area of recreational activity, scientific study, and aesthetic enjoyment.

ASSET 5: Military

Northwest Florida is home to a significant concentration of Air Force and Navy installations across the panhandle, including Eglin Air Force Base (AFB). Eglin AFB is the largest military installation in the country, spreading over Okaloosa County and occupying a significant portion of Walton County. Eglin AFB is the focal point for all Air Force armaments including development, acquisition, testing, deployment, and sustainment of air-delivered non-nuclear weapons. Units on the base conduct test and evaluations of armament, navigation and guidance systems, and command and control. Additionally, the McKinley Climatic Laboratory conducts severe weather testing on aircraft and other equipment. Other installations are also located in neighboring counties, such as Hurlburt Field in Okaloosa County and in Bay County.

Walton County is home to approximately 5,905 veterans according to the 2013-2017 American Community Survey. The regional economic impact of military installations in the northwest Florida region is $22.1 billion, and Eglin AFB and Hurlburt Field in Okaloosa County are linked to 72,097 jobs. The northwest Florida region is also home to several other large military installations including the Naval Air Station in Pensacola, Hurlburt Air Field in Okaloosa County, and Tyndall AFB in Panama City.

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Surrounding communities have had a long history of collaborating with Eglin AFB, which was originally established as the Valparaiso Bombing and Gunnery Base in 1935. More recently, Walton County is a community partner of the Tri-County Community Partnership Initiative (TCPI) which was created by Okaloosa County Economic Development Council (EDC) in 2013 to formally work in tandem with the Air Force and local installations’ Community Partnership Program Initiatives (CPP). Collaboration enables both the communities and military installations to leverage capabilities and resources to reduce costs and risks by finding shared values.

Preceding the TCPI, the Defense Support Initiatives (DSI) Committee was established in 1996 as an ongoing military issues advocacy group to support and promote the local military installations, missions, and their positive economic contributions to the tri-county region. The EDC of Okaloosa County is the lead agency, and County Commission representatives from Walton, Okaloosa, and Santa Rosa Counties are committee members along with several military representatives. Opportunities exist for Walton County to increase involvement in working groups and steering committees. Throughout the years, various partnerships have developed several studies including the Joint Land Use Study (2009), the Tri-County Growth Management Plan (2010), and the Tri-County Small Area Studies (2012) which provided recommendations for Walton County, specifically the Mossy Head area, regarding future land use and guidelines for compatibility with the Eglin AFB mission.

Existing/Potential Support Industries

Supply chain and support service attraction strategies remain important. Examples of industries that directly serve local military installations are utilities, housing partnerships, environmental remediation, technology-based contracting, and outsourced services. For example, in 2017, Choctawhatchee Electric Cooperative (CHELCO) took over full operations of a 50-year contract valued at more than $360 million to own, operate, and maintain the entire footprint of the electrical infrastructure on Eglin AFB including the substation, transmission, and distribution assets. CHELCO is a non-profit electric distribution cooperative employing more than 150 people and serving more than 50,000 accounts in Walton, Okaloosa, Holmes, and Santa Rosa Counties. CHELCO is headquartered in DeFuniak Springs and has five additional offices, two of which are in Walton County (South Walton and Freeport).

Veteran Workforce Capture

A survey administered by CareerSource Okaloosa-Walton from 2011-2016 to personnel separating from the military revealed that 25% of respondents were leaving the region due to

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lack of job opportunities. Okaloosa-Walton CareerSource is conducting a Department of Defense Skillbridge survey which links the skills developed in the military to the needs of the local labor market. If local firms can access existing talent and provide second-career opportunities, more high-skilled retired military personnel may choose to continue their civilian life in Walton County. Regionally, Economic Development groups are working together to address this opportunity. Opportunities and Risks

Because the military installations are such a large part of the economy in northwest Florida, the economic returns to the area cannot be taken for granted despite recent personnel increases and investment in new programs. All military communities face the risk of base realignment and closure procedures, and as such the U.S. Department of Defense encourages local and regional economic diversification strategies to prepare for possible disruptions.

ASSET 6: Educational and Workforce Development

Post-secondary or supplemental educational opportunities are critical for those who are new to the workforce, those who are unemployed or underemployed, or those who are changing careers or returning to the workforce. A capable and prepared workforce will encourage businesses to expand or relocate to Walton County. Competitive schools and vocational training not only support the local population but also attract businesses and industries that require a ready workforce and seek to provide top quality family services and quality of life for their employees. State and regional plans place emphasis on talent supply and identify target industry clusters. Stakeholders in Walton County including the Walton County School District and CareerSource are making strides to identify occupational demands. Additionally, the presence of the military installations in the region provides challenges and opportunities in terms of the number of veterans and their family members who are seeking career pathways.

State and Regional Emphasis on Talent Supply

Several state and regional plans and initiatives — namely the Florida Department of Economic Opportunity’s Strategic Plan for Economic Development 2018-2023, Florida’s Great Northwest’s Northwest Florida FORWARD (2017), and the West Florida Regional Planning Council’s 2018-2022 Comprehensive Economic Development Strategy (CEDS) — emphasize the importance of developing a ready workforce to attract and support new and expanding businesses.

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Talent and Supply is the first pillar of Florida’s plan, and strategies focus on (1) aligning education and workforce development programs, (2) providing comprehensive pre-K through post- secondary education, (3) increasing and retaining the number of graduates in high-demand fields such as science, technology, engineering, mathematics (STEM) and health, (4) expanding recruitment for and access to education and training programs in underserved areas and populations, and (5) engaging the talent of veterans, exiting military, and military spouses. Northwest Florida FORWARD builds on the state strategies for the 13-county region of the . Additional strategies include creating a regional workforce training and development initiative, exploring an employer-driven workforce training initiative, developing a regional talent recruitment program, and expanding work-based learning and career exploration opportunities for students.

Aligning with the state and regional plans, the CEDS focuses on strategies for the western-most 7-county region of the northwest Florida Panhandle including Walton County, and it introduces the goal of connecting the talent of west Florida to key industry clusters and ensuring a dynamic and diverse workforce for new and growing businesses. A key strategy is to create a regional workforce training and development initiative designed to meet the needs of large employers relocating or expanding in west Florida. The CEDS emphasizes creative education models with educational enrichment courses, STEM curricula, and project-based learning beginning at middle- school levels and younger. More customized programs promoting career pathways equitably among students will help ensure students of all socioeconomic levels can achieve their highest potential. Rural areas particularly struggle to retain younger populations as they leave for outside opportunities. This underscores the value of programs that build avenues for young professionals to return to raise families and contribute to their home community.

Walton County School District

Walton County School District (WCSD) has six elementary schools, three middle schools, three high schools, one K-12 school, two alternative education schools, three charter schools, and a career development center school. WCSD also offers alternative learning through Walton Virtual Schools and Walton Learning Center.

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Figure 11: Walton County School Performance Grades

School Name 2016 2017 2018 WEST DEFUNIAK ELEMENTARY SCHOOL B B B PAXTON SCHOOL B A B FREEPORT SENIOR HIGH SCHOOL A A A FREEPORT MIDDLE SCHOOL C B B VAN R. BUTLER ELEMENTARY SCHOOL A A A EMERALD COAST MIDDLE SCHOOL A A A SOUTH WALTON HIGH SCHOOL A A A BAY ELEMENTARY SCHOOL B A C WALTON MIDDLE SCHOOL B B B MOSSY HEAD SCHOOL C B C WALTON HIGH SCHOOL C C B MAUDE SAUNDERS ELEMENTARY SCHOOL C D C FREEPORT ELEMENTARY SCHOOL B C C SEASIDE NEIGHBORHOOD SCHOOL A A A Source: Florida Department of Education

The Florida Department of Education’s (FDOE) School Performance Grades range from A to C for public schools in Walton County in 2018. School Performance Grades provide a measure that can be used to understand how well each school is serving its students.

In addition to traditional coursework, the Walton County School District is working to develop partnerships with local employers and higher educational institutions to give students the opportunity to build a wider network of resources for success after graduation. Several schools also offer Career and Technical Education (CTE) programs specifically designed to launch students into high-demand career tracts.

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WALTON COUNTY SCHOOLS CAREER & TECHNICAL EDUCATION PROGRAMS CURRENTLY OFFERED

Freeport High School South Walton High School • Administrative Office Specialist • Administrative Office Specialist • Advanced Manufacturing Technology • Accounting Applications • Criminal Justice Operations • Applied Robotics • Business Management and Analysis Paxton (High) School • Digital Design • Administrative Office Specialist • Nursing Assistant (Acute & Long-Term Care) • Aerospace Technologies • Web Application Development & • Agrotechnology Programming

Seacoast Collegiate High School Walton Learning Center • Administrative Office Specialist • Building Construction Technology

Walton High School TECHNICAL DUAL ENROLLMENT • Administrative Office Specialist • Emerald Coast Technical College - Early • Aerospace Technologies Childhood Education • Culinary Arts • Early Childhood Education

Post-Secondary Education and Vocational Programs

Emerald Coast Emerald Coast Technical College

Walton County School District’s Emerald Coast Technical College (ECTC) in DeFuniak Springs offers high school-college dual enrollment, career education and Post-Secondary Adult Vocational (PSAV) programs, Adult Education/GED prep, and short term, customized training for local businesses and community members. ECTC’s programs are also regularly tailored to the Regional and Statewide Demand Occupations Lists developed by the Department of Economic Opportunity to identify high skill/high wage labor market needs of the business community.

In 2017-2018, ECTC offered programs in Information Technology, Construction Technologies, Automotive Services Technologies, Cosmetology, Nursing and Health Sciences, and Welding Technologies. Programs that were eligible for Workforce Innovation and Opportunity Act (WIOA) assistance included A/C Refrigeration & Heating, Administrative Office Specialist, Cybersecurity, Automotive Service, Building Construction Technologies, Computer Systems & Information

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Technology, Electricity, Medical Administrative Specialist, Network Support Services, Patient Care, Pharmacy Technicians, Practical Nursing, Web Application Development & Programming, and Welding Technology. In 2017, ECTC had a completion rate of 88%, a licensure rate of 77%, and a placement rate of 85%.

ECTC is represented on the Economic Development Committee of the City of DeFuniak Springs and as a CareerSource board member. These partnerships help ECTC to identify workforce needs. Business partnerships with CHELCO and the Tennessee Valley Public Power Association enabled ECTC to support and expand capacity to provide career education opportunities through electrical line worker training. Another recent successful program is that of a partnership with Walton County Sheriff’s Department for Jail Training Programs like OSHA 10, a program that teaches workers about common safety and health hazards on the job. This program extended ECTC’s training opportunities to populations with historically limited access. ECTC also has agility to respond to short-term training needs like providing OSHA 30 for electrical contractors or therapy classes that earn continuing education credits.

Nearby Post-Secondary Institutions

Several institutions are located in, or have branch campuses in, neighboring Okaloosa and Bay Counties. The University of Florida Engineering Education Facility and a satellite campus of the University of West Florida are located in Fort Walton Beach, as is Okaloosa Technical College. Florida Agricultural and Mechanical University’s (FAMU) College of Pharmacy and Pharmaceutical Sciences has a site in Crestview. Gulf Coast State College and a satellite campus of Florida State University are in nearby Panama City.

Northwest Florida State College

Northwest Florida State College (NWFSC) has six campuses or centers in the Okaloosa-Walton area, two of which are in Walton County: the Chautauqua Center in DeFuniak Springs and the South Walton County Center in Santa Rosa Beach. NWFSC offers programs in Business; Education; Health Sciences; Public Safety; Industry, Manufacturing and Construction; Humanities, Arts, Communication and Design; Science, Technology, Engineering and Mathematics; and Social and Behavioral Sciences.

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CareerSource Okaloosa-Walton

CareerSource Okaloosa-Walton is a non-profit organization that offers services including scholarships and training opportunities to employers, career seekers, veterans, and youth. CareerSource has offices in DeFuniak Springs in Walton County and in Fort Walton Beach in Okaloosa County, as well as a mobile center in Fort Walton Beach and a satellite office on Eglin Air Force Base. Individuals seeking employment can obtain job search assistance and skills training. CareerSource also assists employers with recruitment, talent acquisition, and training.

The workforce Innovation and Opportunity Act (WIOA) requires each local workforce development board to create a comprehensive four-year plan in partnership with local chief elected officials. In conjunction with a designated commissioner from both Okaloosa and Walton County, CareerSource Okaloosa-Walton developed a Two-Year Modification Plan for 2018-2020. The Plan describes ways in which CareerSource Okaloosa-Walton ensures the needs of the region will be met through a Business Services Team and an Account Management Model. The Business Services Team meets with employers and training institution advisory boards as well as ad hoc groups to identify needs and solutions. The Account Management Model guides account managers to become more specialized and knowledgeable on specific talent needs of critical industry sectors.

The identification of trends allows CareerSource Okaloosa-Walton and its partners to design training and development programs that will be most relevant to future job-seekers. CareerSource tracks occupations in terms of fastest-growing percentages as well as those projected to have the newest job opening trends. CareerSource projects employment in the area to grow 1.3% over the next ten years. It is anticipated that employment in the two counties will grow by 1,509 jobs over the next year, with Health Care and Social Assistance (+2.2% annual growth rate), Educational Services (+2.0% growth), and Professional, Scientific, and Technical Services (+1.7% growth) as the fastest rising sectors. Careers requiring higher levels of education will trend upward in this region. However, the largest increase by number of jobs is the Accommodation and Food Services sector, with an anticipated increase of 267 jobs.

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ASSET 7: Housing

Walton County has Figure 12: Walton County Housing approximately 55,578 housing Demographic 2010 2018 units, with a median home value Population 55,043 65,599 of $222,725. As shown in Figure Households 22,301 26,501 15, the area median income Area Median Income $51,000 $60,400 (AMI) has trended upward, and Median Home Values $199,800 $222,725 the median home value Median Gross Rent $889 $931 increased by 11% from 2010 to Total Housing Units 45,132 55,578 2018. Owner-occupied units 16,202 18,118 Especially along the South Renter-occupied units 6,093 8,392 Walton coast, home values can Source: HUD, Esri 2019 be extremely high, reflecting high land costs and continuing demand for primary and secondary residences in the area.

In the growing rental economy, however, a significant number of households are “cost- burdened” by housing expenses, defined as spending more than 30% of combined income for housing. As a result, they may have difficulty affording necessities such as food, clothing, transportation, and medical care.

In 2016, 43.53% of households in the Figure 13: county earned at or less than 80% Household Income (2016) AMI. However, income levels were Income Range # Households % much lower for households that 30% AMI or less 3,452 13.34% rented their homes. More than 56% 30.1-50% AMI 2,941 11.37% of renting households were low- 50.1-80% AMI 4,869 18.82% income, with 36% designated as very 80.1-120% AMI 5,732 22.15% low or extremely low-income. more than 120% 8,883 34.33% Between 2010 and 2018, Walton County had a 19% increase in its TotalAMI 25,877 100.00% Source: Shimberg Center for Housing Studies population. During that same period, the number of jobs also increased. While the county’s job growth rate has been strong and is projected to remain high, many of the occupations that are growing are those most vulnerable to high housing costs. Retail sales, combined food prep workers, and wait staff were the top three growing occupations.

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Depending on family size and the number of earners in the household, these occupations may be more likely to place households into low or very low-income categories.

Walton County Housing Agency

The Walton County Housing Agency administers funding from the U.S. Department of Housing and Urban Development to offer housing assistance to low and very low-income households in the County. The agency offers rental assistance in the form of Section 8 rental subsidy vouchers, financial counseling programs for self-sufficiency, and fair housing education. The Housing Agency does not own or operate public housing developments directly, and instead works with private property owners to secure appropriate housing options for eligible households. State Housing Initiatives Partnership (SHIP)

For families with low and moderate incomes in Walton County, there are local, state, and federal housing assistance strategies to help with purchase, repair, replacement, or rehabilitation of owner-occupied housing.

Every Florida county is required by Florida Statute to have an approved Local Housing Assistance Plan (LHAP). The LHAP is designed to detail how each county will expend the State Housing Initiatives Partnership (SHIP) funds allocated to them each fiscal year. The West Florida Regional Planning Council coordinates the SHIP program for Walton County and assists in the development of the required LHAP. A partnership coalition Walton County has created, the Walton County Affordable Housing Advisory Committee (AHAC), is responsible for reviewing planning documents and making recommendations to the Board of County Commissioners for incentive strategies as part of the LHAP. The following strategies are currently approved and being implemented, with waiting lists for participation:

Substantial Rehabilitation: addresses homeowner needs such as roofing, electrical, plumbing, sanitary disposal, or structural deficiencies

First Time Homebuyer Assistance: provides funds to support down payment and/or closing costs for the purchase of a home

Replacement Housing: provides funds to underwrite the costs of constructing affordable replacement homes for families living in unsafe conditions

The LHAP is updated and submitted to the Florida Housing Finance Corporation for review every three years.

Workforce Housing

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Nationally, wage stagnation, rising construction costs, and the limited supply of workforce housing has increasingly driven the need for new approaches to implementing effective affordable housing policies and programs. Existing federal housing assistance programs, particularly those provided by HUD, have traditionally targeted those with the greatest need. These are typically extremely low-income families, those who earn less than 30% of AMI, and low-income households who earn less than 60% of AMI.

“Workforce housing” is Figure 14: Maximum Affordable Rent and commonly defined as housing for Purchase Price in Walton County individuals that earn between 60- 120% of AMI, which can be in Income Limit Purchase Income Rent short supply in many areas. As Range Price shown in Figure 14, it is more 60% $36,240 $906 $54,628 affordable to rent than to purchase a home in Walton 80% $48,320 $1,208 $98,851 County. Workforce households 100% $60,400 $1,510 $144,310 are considered by HUD 120% $ 72,480 $1,812 $189,151 standards to earn too much to County $931 $222,725 qualify for housing subsidies yet Median may be unable to afford Source: Estimates based on WFRPC Calculations adequate housing. Additional attention is being paid to the growing issue by HUD and other national housing nonprofits like Local Initiatives Support Coalition (LISC). Walton County is experiencing a shortage of workforce housing, and wage earners are either faced with long commutes or elect to live elsewhere. Much of this group is likely to be cost-burdened by their housing. These may be the critical or supportive service providers of the community -- firefighters, police officers, social workers, teachers and nurses who cannot afford to live in the communities that they assist. In Walton County, this population represents most hospitality and retail staff on which the industry depends. These jobs contribute to a community’s quality of life; yet there is mismatch between wages and cost of living. Over the past decade, the cost of housing in Walton County has increased significantly, whereas wages have not increased at the same rate. Shelter makes up the largest share of most households’ spending, and budgeting for higher housing costs forces less income available for food, health care, utilities, and other necessities.

Commonly, social and regulatory barriers to development of this type exist. Some of the more difficult barriers to overcome within many communities are socio-political. New development plans may be countered with citizen concerns or prejudices about siting, traffic, building materials, aesthetic viewpoints, and property value impacts. Regulatory barriers and government

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policies, statutes, or ordinances can often increase the cost and delivery timeframe of new construction without making the intended improvements to public health or safety. Limiting the amount of available land for workforce and/or multifamily housing development, density caps for new development, impact fees, zoning, and large-lot subdivision requirements all have a direct impact on housing production costs, which affects private market feasibility. These regulations may serve other public policy objectives that will bear evaluating against the urgency of the housing needs of a community and the long-term impacts of such a shortage.

The cost of housing affects an individual’s well-being, a community’s quality of life measures, and a region’s economic competitiveness. Working families are not the only ones impacted from the shortage of affordable housing in high cost and high growth areas. In Walton County and elsewhere, existing and prospective employers have expressed the lack of skilled workforce and quality housing to attract and retain employees. Employers report having a difficult time hiring and meeting the salary demands of employees with high living costs. In this way, shortages of affordable workforce housing options inhibit many job creation strategies and development prospects. ______

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