For months, opponents of All Aboard Florida (AAF) including Citizens Against the Train (CATT) and Citizens Against Rail Expansion (CARE) have made the case against the high-speed rail project, covering government financing, noise, environmental impact and safety concerns -- and the latest volley touches on property values.
Opponents of AAF insist local property values are dropping and will continue to plummet when the train comes through. In Martin County, County Property Appraiser Laurel Kelly asked the County Commission for $60,000 to conduct a study showing the impact of AAF on property values.
In truth, there is already one on the books. Last month, Jesse Saginor from Florida Atlantic University released a study on how AAF impacted property values in Martin County.
The study addressed housing values within 400 feet of the current FEC railroad tracks and those from 400 to 1,000 feet of the tracks. According to the study, smaller homes and some larger homes saw their values drop when AAF announced the rail expansion in 2012. The study finds property values declined after AAF announced plans for its project.
CATT and CARE insist the study proves AAF is undermining property values and that trend will continue. But the study shows inconsistencies. The report shows homes within 400 feet of the rail tracks saw their value drop as early as from 2005 to May 2012, before the AAF announcement. These drops continued from May 2012 through February 2015.
“Between 2009 and 2011, real estate sales prices bottomed out, slowly rebounding before May 1, 2012, with a slight drop again between May and December of 2012,” the report noted. “In 2013 and 2014, the sales prices continued to rebound.”
The study indicates housing prices dropped in Martin County in 2012 just after the AAF announcement and notes property around rail bridges were already on the decline before the announcement.
Other counties impacted by AAF are seeing an increase in property values. In 2015, Palm Beach County is showing property values increasing by 10 percent. Other counties are seeing smaller increases: Brevard County at 5.9 percent; Indian River County at 7.1 percent; St. Lucie County at 4 percent.
According to Zillow.com, Martin County home values have gone up 6.8 percent over the past year and Zillow predicts they will rise 3.5 percent within the next year.
Keith Kite, a local developer in Indian River County, said AAF foes were off the mark by insisting the rail project was hurting property values.
“The opponents’ false claim on property values going down is another shot in the dark,” Kite said.
Kite, the developer and owner of the Springhill Suite by Marriot in Vero Beach, points out that his hotel is within the 1,000 feet of the rail track expansion and his property value is going up. Noting that the Florida East Coast train tracks have been here for more than 100 years, Kite said industrial and commercial business value has gone up. He also said that with an additional two tracks, commerce will see a boost, bumping up local property values.
All Aboard Florida won preliminary approval from the U.S. Department of Transportation in December to issue $1.75 billion in tax-exempt bonds to help pay for its Miami-Orlando express-passenger rail line. The company has been given until Jan. 1 to sell the bonds to private investors.
But before it can move forward with the sale, All Aboard also needs the blessing of the Florida Development Finance Corp.
AAF President Michael Reininger said the meeting, set for Aug. 5, marks a key milestone for the $2.9 billion express rail project.
The meeting begins at 1 p.m. at the Double Tree By Hilton, 60 South Ivanhoe Blvd., 2nd Floor, Orlando, 32804.
Ed Dean, a senior editor with SSN whose talk-show can be heard on radio stations across Florida, can be reached at ed@sunshinestatenews.com. Follow him on Twitter: @eddeanradio.
