Invest: Village of Wellington

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Palm Beach 2020 An in-depth review of the key issues facing Palm Beach County’s economy, featuring the exclusive insights of prominent industry leaders

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Village of Wellington: The Village of Wellington has established itself as not only the ‘Winter Equestrian Capital of the World’ but as a community built on achieving a balance between economic growth and remaining true to its family-oriented values. With a top-rated education system, premier parks and recreation programs, and one of the lowest crime rates in the country, the Village is renowned as a ‘Great Hometown.’

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Top rated: The Village of Wellington is known for its equestrian tradition but there’s much more to it — and the word is getting out. From just 100 people in the early 1950s, the Village of Wellington has grown to become a sought-after community known for its top-rated education system, parks and recreation programs, equestrian roots, and a burgeoning medical hub. A low-crime profile adds to the Village’s allure, bolstering its attractiveness as a premier location to raise a family and/or age in place. Recognized as the “Winter Equestrian Capital of the World,” Wellington has built a strong community with a high quality of life based on family-focused ideals, first-class educational institutions, desirable parks and recreational offerings, and an intentional balance between encouraging economic growth while remaining true to its identity. It’s a balance that has led entities like Money Magazine in 2010 and 2019, to recognize Wellington as one of America’s best places to live, a fact that is reflected in its other recognition as a “Great Hometown.” Landscape Covering an area of 45.4 square miles at the center of Palm Beach County and just west of the City of West Palm Beach, Wellington’s strategic location serves as an intersectional crossroads between pastoral and 28 | Invest: Palm Beach 2020 | VILLAGE OF WELLINGTON

urban land uses. The Village is now among the largest municipalities in the county with 65,398 residents. Although Charles Oliver Wellington originally purchased the several tracts of land that would later become known as Wellington in 1951, the master plan community was not officially incorporated until 1995. The area is primarily affluent, boasting a median household income of $91,088, which is almost 50% higher than the county average, coupled with a median property value of $417,865. The Village’s economy, which is composed of 2,147 business establishments employing 19,060 workers with total sales of over $3.2 billion, has created a strong economic base that has proven to be comparatively resilient to the COVID-19 pandemic. Horses are a big part of the local economy, with the equestrian sector among the leading economic drivers and employers in the Village. There is also a strong healthcare industry in Wellington as the Village has created its own medical hub, which is highlighted by recognizable names like Wellington Regional Medical Center, Joe DiMaggio Children’s Health Specialty Center, Cleveland Clinic, and Baptist Health. The Village also offers dynamic retail, education, accommodation and food services. ( )


VILLAGE OF WELLINGTON INTERVIEW

Know yourself Cooperation between local officials and residents has helped define Wellington and make it a go-to locale

Jim Barnes Deputy Village Manager – Village of Wellington How has Wellington developed in the last few years? Wellington, incorporated in 1995, has evolved into one of the larger municipalities in Palm Beach County, with approximately 65,000 residents, and after 25 years since incorporation it has realized that it has to change a little bit to stay the same and remain a Great Hometown. The Village is a young community even by Florida standards but the community itself had existed for many years before, initially just as a master-planned community. At a certain point, the decision was made that to get more control and a better say in our destiny, it was best to incorporate. Since then, not much has changed. If you look at the plans for Wellington as a master-planned community and what’s here now, there’s really very little in terms of new density approved and developed beyond what the master plan had. That being said, for the last 25 years we’ve been defining Wellington by how the government conducts itself, with the residents having a clear say in deciding what services and amenities are important. Ultimately, that all leads to people wanting to move out here and deciding on Wellington as the place to move their families and, eventually, also retire. Over the years, we’ve generally owned what we are, which is a bedroom community with limited nonresidential uses, be it commercial or industrial. That’s still fairly constant. What is behind the growth in the medical sector? We know we’re not the bio sciences area that the north of Palm Beach County has turned into. But medical has been something that has just happened organically. Wellington Regional had all this area that was ripe for development north of it and we tried, early on, to assemble the owners of that land and get some synergy within the property ownership and capitalize on the hospital and existing medical space. It didn’t work out as well as we had wanted but without a whole lot

of guidance, it has just happened throughout the Village with existing commercial space that has been transformed into medical offices. What are the main challenges facing Wellington? We look at challenges as opportunities. It’s important to be able to own and know what you are and what you want to be. We know we are a residential community with some limited commercial and industrial areas. We are not an employment center. The challenge is that we are largely built out as far as the incorporated limits go. We have limited areas for new development and older housing stock, which equals tough competition from all the new communities that might be coming up around us. I think we have to look at providing a complete package of amenities that all these younger communities sprouting up all around us can’t provide. www.capitalanalyticsassociates.com

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VILLAGE OF CONSTRUCTION WELLINGTON OVERVIEW

( ) One area of the economy that requires attention is the poverty rate, which is lower than the county average, but still sits at 6.9%. This figure has not gone unnoticed by leaders in Wellington, which is an entitlement community in the U.S. HUD Community Development Block Grant (CDBG) Program. The CDBG distributions for Wellington are used to help support seniors and youth while helping income-qualified households with housing repairs. More recently, Wellington has also been working to assist with rent and utility payments by means of the CARES Act. One of the highlights of the community is its low crime rate. According to the areavibes.com real estate website, overall crime in Wellington is 46% below the national average, while violent crime is almost 70% below the countrywide average. It is safer than 68% of cities in the United States. The crime rate is also the lowest of all similarly-sized neighboring communities. “We see Wellington at the bottom of most categories, and where we are in the middle, it is a statistical tie,” said Councilman John McGovern in a report in the Town-Crier online community news publication in August. “People know if they come into the community to commit crime, they are going to be caught.” Budget for 2020-21 Two key components of Wellington’s long-term economic success have been its commitment to maintaining a stable millage rate for residents and the Council’s overall fiscally conservative approach. Despite the challenges presented by the pandemic, the finalized 2020-21 budget of $101.6 million has not swayed from the objective to continue to better the community from both a social and infrastructural standpoint. “This is an extraordinarily conservative budget, and I want to highlight some important funding that we will continue to provide in the FY 2021 budget despite these extraordinary times,” remarked Councilman Michael Drahos. “Most notably, we will continue Wellington’s commitment to supporting our 11 A-rated local schools with $400,000 in Keely Spinelli grant contributions for reading and math programs. This brings the total provided directly to our schools to $3 million. We are providing $56,000 for the Wellington Seniors Club, and funding for our Great Neighborhoods Grants.” The budget also allocates $15 million to $20 million annually in new capital expenditures, which averages approximately 15% per year for infrastructure projects. The two most notable ongoing infrastructure projects are the major utilities plant rebuilds and surface water management improvements. Wellington is also working with the Treasure Coast

Anne Gerwig Mayor Village of Wellington

How is Wellington tackling COVID-19’s impact on equestrian shows? By the Governor’s and the County’s standards, the venue would be able to open, although we would require social distancing and the compulsory use of masks. Federation Equestrian International (FEI) and the United States Equestrian Federation (USEF) are the two controlling entities that authorize these shows. They are allowing participants only, with no spectators at this point. January through March is our high season for show jumping, which is what most people want to see. It’s a fun experience, a night out for the community. We are hoping that as a vaccine becomes available, the USEF and FEI might change their minds and let shows open up again to the delight of the public. How do you balance economic growth with maintaining Wellington’s community feel? There are a couple of preservation parcels that are privately-owned by the mall and last fall it was suggested they go up for redevelopment and offset the preservation areas somewhere else to use these for restaurants and apartment complexes. The local community proved unfavorable to the project. Section 24 is three-quarters of a square mile of stormwatertreatment area. We put in walking and running trails as well as a six-story observation tower. We call it our mini-Everglades. What are Wellington’s top priorities for 2021? We are proud of how careful we have been with our finances. In the years I’ve served on this Council, since 2009, we have never been over-extended. We have always been careful about maintaining reserves. With the pandemic still raging, we are going to hit the pause button on the pipeline of ideas that were on the drawing board and focus on maintenance needs. Our property values are still quite high. We remain wellplaced to face these challenges. www.capitalanalyticsassociates.com

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Tanya Siskind Vice Mayor Village of Wellington

What are Wellington’s economic characteristics and main draws in terms of growth? Our schools are our main attraction. Everybody I know with kids moved here because of the school system. Wellington understands the value of its A-rated schools and we make it a priority every year to continue investing in supporting our schools. We are also known as the winter equestrian capital of the world. Our equestrian component is something that makes us unique. Not a lot of communities have that. We are the epicenter for shows and different equestrian disciplines, which sets us apart. It also attracts worldwide participants. People come from all over the world to watch these shows and to participate, which obviously stimulates our economy. What are the main challenges facing Wellington in terms of economic development? One of our biggest challenges, besides COVID, is the fact that we are nearly built out. We don’t have a lot of space and land to build so new developments are going to have to be more about reinvestment and redevelopment of what we already have. That’s our biggest challenge. It really is about reinvesting in the community. We did just approve a rezoning for a high-end condo project. It’s a really neat development. Not everyone here supported it as there were concerns about height, but it’s a beautiful project that everybody voted on, and it’s the kind of project that’s going to attract people to this area. We try to keep a balance. We completely understand some residents’ concerns about not wanting a lot of traffic and congestion and not wanting to change their way of life. There are people who lived here when it was all dirt roads, and there are people who would like to see a hotel or apartments. You have to find that balance to remain unique. It’s about smart growth. I’d like to see us recover from this pandemic as soon as possible. We haven’t had to change too much regarding our operations, and we want to be sure that in the case of another disaster on the heels of this one, that we are in as good a shape as we are now. 32 | Invest: Palm Beach 2020 | VILLAGE OF WELLINGTON

Regional Planning Council to analyze the market and economic conditions currently impacting The Mall at Wellington Green and the State Road 7 corridor in order to develop a reinvestment strategy. This project is in its initial phase and will take 9 to 12 months to complete. Ongoing development Housing is also top of mind in the community. Over the last year, Village of Wellington home values have gone up 5.1% and according to a forecast by the real estate website Zillow, they will rise 7.2% in the next year.This is the continuation of a seven-year trend of year over year increasing property values. Commensurate with the increase in home values and ongoing population and economic growth, there has been significant movement in the Village toward upgrading and increasing both commercial and residential options. One such development is the Lotis Wellington project, a 64-acre, mixed-use project that will look to introduce a variety of new spaces for restaurant, retail, office, including medical offices, and residential, both multifamily homes and senior living. The project, located just north of Wellington Regional Medical Center, would be completed in three phases and would include 191 new multifamily units, 16,700 square feet of professional office space, a Congregate Living Facility (CLF) with independent living units and assisted living beds and an open space inclusive of a lake, cypress preserve, dog park and greenway with a multiuse pathway open to the public. Just north of the Lotis Wellington project, in unincorporated Palm Beach County, there is an approximately 50-acre property that is requesting to be annexed into Wellington. The property owners intend to develop a mixed-use project that would bring another 90,000 square feet of office space and 300 new multifamily residential units into the Village. With the current lack of available land for development, community and business leaders have turned their attention to alternative means in the form of “dead” golf courses. Multiple closed courses in Wellington are now being considered as possible redevelopment opportunities, including Polo West, which is expected to be considered for conversion to a single-family home development in the near future. Education With all 11 of the schools in Wellington ranked as A-rated institutions, one of the cornerstones and biggest draws for the Village is its first-class education sector. Compared with national and county averages, Wellington’s residents are well-educated. Almost 30%


VILLAGE OF WELLINGTON OVERVIEW

of residents have a bachelor’s degree, while 17.6% have a graduate or professional degree. This compares with 21.5% and 12.7% for Palm Beach County. Nationally, only 18% of adults over the age 25 have a bachelors and 11% have a graduate or professional degree. With a Village leadership that understood the importance of investment into the local education system, the Keely Spinelli Education Grant was created in 2013. The grant, whose namesake is the late Binks Forest Elementary School Principal Keely Spinelli, is a $400,000 grant program that is available to the Village’s 11 schools. They are eligible to access a maximum of $36,363 in annual funding. This additional funding must be used to assist students in achieving elevated reading skills, insure high-school readiness, promote high-school graduation and/or cultivate post-graduate success. Aside from being the only municipality in Palm Beach County to set aside funds annually, cumulatively through this program Wellington has provided $3 million in direct funding to the schools to help students. The investment in education is also present in the Wellington High School Sports Complex Project. The large-scale development that recently completed a stunning, world-class shared-use stadium field, which is phase one of four, is a joint project with the Palm Beach County School District. Funded by Wellington, it consists of the planning, design and construction of five artificial turf fields, three basketball courts, eight tennis courts, an improved student drop-off loop, a maintenance building and a concession stand, all within the boundaries of the Wellington High School property. The goal is to complete the project by summer 2021. Equestrian The history of the equestrian industry in Wellington dates back to 1977 when Polo was first brought to the

area. Soon thereafter, the Village became the host of the Polo World Cup. This in turn resulted in the Winter Equestrian Festival and Olympic Jumping Team Qualifying Trials calling Wellington home. Today, there are more than 580 farms in Wellington that serve a variety of equestrian disciplines. With 140 businesses that are directly involved in the equine industry, the Village of Wellington has appropriately been dubbed the Winter Equestrian Capital of the World. These businesses employ 1,145 full-time employees with total direct sales over $130 million. The equestrian community in Wellington produces a combined impact of more than $160 million to Palm Beach County’s economy annually. While the equestrian season runs from November through April, economic activity peaks in Wellington during the Winter Equestrian Festival (WEF), which draws an estimated 200,000 spectators over 12 weeks from January through March each year. The festival, which was cut short by two weeks in 2020 due to the COVID-19 pandemic, still brought in almost $290 million and more than 3,000 jobs. Despite many international competitions canceling equestrian events for the foreseeable future, Equestrian Sports Productions, the company behind the production of the Winter Equestrian Festival, remains committed to moving ahead with the 2021 festival. Its plans include reengineerings and development of three of the arenas at the Palm Beach International Equestrian Center as well as an additional week added onto the traditional 12-week schedule and an incorporation of all CDC recommended COVID-19 guidelines. Healthcare Shortly after the 2008 recession, Wellington began to experience a conversion of retail space into medical office space. Since then, nearly 200,000 square feet of ( )

Lisa Banionis President – Wellington Chamber of Commerce The health and wellness sector really has taken over. We started with one or two medical buildings, but now when you travel throughout the community, there are many medical, health and wellness businesses. Years ago, patients needed to travel to see a specialist. Today, they can find a specialist in the community. There are specialists for mostly everything. The health and wellness sector has increased tremendously over the last couple of years.

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®

oundtable:

Evolution Village of Wellington councilmen discuss balancing growth and resident expectations as well as challenges outside the pandemic.

John McGovern

Councilman Village of Wellington

What do you believe are Wellington’s larger challenges, outside of the pandemic? I think that the challenge for Wellington, both in the short term and the long term, is working to make sure that we are and remain both relevant and the crown jewel community of western Palm Beach County. My parents came to Wellington 35 years ago because this was the place where you could buy a new home, more land, have access to first-class schools, and a growing parks and recreation system. Those are still the reasons why people come here. But the concern that I have, and that our community should have as a whole, is how do we modernize what is now 25 years as a Village, but 40 years as a community, as a planned unit development, while staying true to ourselves? We have to remain laser-focused on making sure that our schools stay A-rated, that our community stays pristinely kept, that our roads are re-milled and overlaid so that they are in top shape, that our code enforcement standards stay at the highest level, so that Wellington remains what it’s always been. We need to modernize while staying the same. The pandemic makes this even more important. What is the Village doing to improve its infrastructure and services? We’ve done an absolutely massive reinvestment and modernization of our entire utility system, including the water plant and the waste-water plant, to put us on solid footing for decades to come. That’s been the signature accomplishment of this Council for these last four years. There’s nothing sexy or glamorous about that but it’s something that will pay dividends for all of our residents. 34 | Invest: Palm Beach 2020 | ECONOMY

Michael Drahos

Councilman Village of Wellington

How do you balance economic growth with community concerns? There is a recurrent dilemma between doing what we believe is in the best interest of the community, even if it potentially faces resistance from residents who may not be in agreement, and considering the job of a public official to follow the bidding of your constituents even if you personally believe that it may be a missed opportunity by not pursuing it. To solve the conundrum, we always make a point of encouraging communication. We always ensure that for any project we wish to undertake, information is facilitated in a consistent and reliable manner to everyone. What are the greatest challenges to Wellington’s overall growth? Wellington is grown out. We have built within the space we have. It is important that we continue to stick to what has made Wellington successful while also keeping the door open for any further opportunity for redevelopment. We will continue to be creative in attempting to attract redevelopment initiatives such as the Coach House project. It is a large, equestrian-themed community that is directly targeting the seasonal residents who come for equestrian season. What are Wellington’s top priorities for 2021? Stability is the key. We look to provide a stable form of local government with a keen eye on what residents want and do not want. We want to be local government in touch with its residents and that knows when and how to communicate with them on critical issues.


VILLAGE OF CONSTRUCTION WELLINGTON OVERVIEW

Pam Tahan CEO Wellington Regional Medical Center

Joe Kernen Michael Napoleone Managing Partner Councilman Philadelphia Village of Wellington DLA Piper

What is Wellington’s development outlook, and how has it been affected by the pandemic? We are almost built out, so we haven’t been looking at massive development projects. Instead, we’ve been looking to preserve and enhance what we have, and I don’t know that the pandemic, other than causing a financial hit, has really derailed many of those plans. We had plans in the works to continue looking for ways to enhance and improve our town center area. We finished the promenade this year, and we are looking at expanding the amphitheater. That’s good because once we can have crowds again, we can have more events, and if we can’t have crowds again, we can space people out. It will work either way with the expanded amphitheater. How do you strike the balance between economic growth and reflecting residents’ concerns? The culture and quality of life in Wellington is always at the top. People came here for a certain reason and stayed here for a certain reason. We want to make sure that whatever we do enhances that. People have a wide variety of opinions on a multitude of topics but it’s important to listen. If you’re planning a project, it has to benefit the people who are paying for it. I try to reach out to people. I try to publicize information through my Council Facebook page about what’s going on, and when people have concerns about topics that are more controversial, I like to put together a longer piece explaining what’s happening, what we are looking at, so people can be informed and comment on them.

How did you handle the pandemic when it took hold and afterward? When I look back on the COVID-19 pandemic, I think I am the most proud about how our entire team at Wellington Regional came together for the benefit of our patients and for each other. Not only did we need to develop protocols for the influx of COVID-19 patients through the ER, but we also had to ensure the other patients with medical emergencies, such as stroke and chest pain, were also safe. Once we learned that three of the first five COVID-19 patients in Palm Beach County came to our hospital, we focused on educating the public by working directly with the Village of Wellington on safety protocols and preventative strategies through a series of Public Service Announcements. How did the postponement of elective surgeries impact the hospital’s bottom line? Above all else, our focus has always been on patient quality. Like many other businesses in the Wellington area, we have been hurt financially, but we are perfectly comfortable with that reality because our most important commitment is the ability to serve the community and keep our staff safe. When the ban was lifted, we determined how to safely continue surgeries and to this day we still adapt to safety protocols. How has telemedicine changed during COVID-19? We are very fortunate as a community that people have access to telemedicine. In the early days of the pandemic when there was so much uncertainty, this technology enabled physicians to continue seeing patients. For us, it was a blessing because it gave us time to evaluate the appropriate safety measures while still providing care for our patients. Telemedicine has really transformed how we see medicine and I believe patient treatment options will continue to evolve going forward. Before the pandemic, we used telemedicine for stroke patients and psychiatric patients, but this has definitely boosted the adoption of the technology. www.capitalanalyticsassociates.com

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VILLAGE OF WELLINGTON OVERVIEW

Michael Stone President– Equestrian Sports Productions

The difference with us is that we run for 12 weeks. This year, it’ll be 13 weeks to compensate for the week we lost last year. Most of the big shows run from Wednesday to Sunday, and they spend the whole year just doing that five-day show. The only one that is comparable to us is Spruce Meadows in Canada. They run an operation in the summertime, similar to ours. We show 2,500 horses, on average, every week, whereas a big show in Europe will be 600 to 700 horses.

( ) retail space has been converted for medical uses. The medical sector growth over the last 10 years has created a medical hub that employs over 3,000 people in over 300 facilities. This hub is a major economic driver for the Village, generating nearly $550 million in sales annually, as reported by an economic study done by FIU in 2018. Anchored by Wellington Regional Medical Center, the healthcare sector in Wellington is also home to renowned healthcare institutions like Palms West Hospital, Cleveland Clinic Florida, Bethesda Physicians Group, and Baptist Health South Florida. The strength of the healthcare sector in the Village has also been evident in the community’s response to the COVID-19 pandemic that has savaged economies around the world. Local partnerships have helped to handle the effects of the virus, including the Village of Wellington’s partnership with Premier Family Health to provide free walk-up COVID-19 testing for residents aged 12 and over at the Wellington Community Center.

The Village is also seeking to capitalize on the opportunities present within the ongoing challenges to retail. The loss of retail space in existing commercial properties represents an opportunity to re-purpose these properties. To date, approximately 200,000 feet of retail space has been converted for use in the healthcare segment, including offices. Wellington is also taking a forward look at reinvesting and redeveloping the Mall at Wellington Green to best fit the current needs of both residents and the local economy. In recent years, the Mall has fallen victim to the same struggles most retail is facing, seeing a value drop of almost $70 million in 2019. The repurposing and redevelopment opportunities for the 1.5 million square feet of land at the Mall has culminated in a partnership between the Treasure Coast Regional Planning Council and Wellington to analyze the economic conditions impacting the Mall in the hopes of developing an intuitive reinvestment strategy.

Retail At the end of the day, most communities depend on their small businesses. These are the companies that often give a place its character. In Wellington, most of these businesses are in the retail sector. Overall, 1,852 establishments in the Village are single-location businesses as opposed to big box retailers or chain locations. This accounts for 84% of all business establishments in the community. Like in other cities and communities across the country, retailers in Wellington have suffered the effects of the rapid growth of e-commerce and, more recently, the devastating impact of the COVID-19 pandemic. The leadership in Wellington has recognized the challenges that retail is facing and is working to assist the local business community through various means.

Looking ahead Since being officially incorporated in 1995, the Village of Wellington has worked to establish itself beyond its celebrated equestrian roots. It has done so on a base built on achieving a meticulous balance between encouraging economic growth while remaining true to its values and character. While the challenges of the ongoing COVID-19 pandemic and resulting economic slowdown have hurt many communities, Wellington’s conservative approach to budgeting has kept it in a sound position both during the pandemic and going forward. The Village remains committed to reinvesting in its community. As it looks toward an uncertain 2021, there is a shared confidence that the Village of Wellington and its economy will remain resilient amid efforts to rebuild and strengthen.

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