Application for use of Ocala railroad and manufacturing center approved

The Marion County Commission approved a special use permit for Advanced Drainage Systems to manufacture plastic piping at the Certified Grocers site and utilize the Florida Northern Railroad. [Bruce Ackerman/Ocala Gazette] 2024.

The Advanced Drainage Systems company will be taking over the former Certified Grocers site to manufacture plastic piping and distribute it through the adjoining railroad that runs through Ocala, after the Marion County Commission on Tuesday approved its special use permit.

The unanimous decision was made after over three hours of discussion at the county Planning & Zoning board meeting, where representatives from the city of Ocala and the Marion County School Board spoke in opposition of the permit’s approval out of concern for disruption from increased rail traffic and support of the competing proposal of someday converting the corridor to a multi-use trail.

Business owners, nearby residents and other stakeholders spoke either in favor of the economic opportunity the center would create, or in opposition of the company’s use of the Florida Northern Railroad.

ADS was approved to use the Certified Grocer site at 6026 SE 83rd St. as a manufacturing center, which will utilize the railroad that runs through downtown Ocala, through residential southeast Ocala neighborhoods, behind Forest High School, residential neighborhoods in Silver Springs Shores and ends at Lake Weir High School.

ADS is represented by attorney Rob Batsel Jr., who also represents the city of Ocala in two matters—the real property transaction associated with the SW 44th Avenue project, and the real property transaction associated with the acquisition of the Mount Moriah property for the Parking Garage 2 project, said City Attorney William Sexton.

Batsel’s presentation to the commission described how the 450,000-square-foot Certified Grocer facility will be used for manufacturing plastic polypropylene, polyethylene pipe and products, which could create up to 300 new jobs by the year 2031.

The site was formerly zoned as Heavy Business, and the special-use permit approval changes the zoning to Heavy Industrial, on the condition that an 8-foot barrier wall be built to reduce noise. ADS will construct 36 silos on the site, each 60 feet tall, for storage, which will be served by expansions made to the existing rail spurs.

The train now runs four to five cars, but ADS anticipates that it could run up to 48 rail cars, based on current market forecast and rail availability. The trains run three to four times a week, typically from the hours of 7 a.m. until 4 p.m. on weekdays. With the additional cars, crossings at a number of major roads will take about three minutes.

No analysis of the potential traffic impacts was conducted, nor any analysis of impact to response times for first responders. The county said it did not feel these analyses necessary, as ADS’ application only showed intent to increase the number of cars on each train, not the amount of trips taken.

Ocala Chief of Staff Christopher Watt expressed concerns on behalf of the city about the potential negative impact that the rail traffic will have on downtown businesses and residents near the rail.

“The disruption caused by these trains affects our residents’ daily lives and impacts our downtown businesses. The increased train traffic associated with the proposed manufacturing facility will lead to more frequent interruption, longer delays and safety hazards for pedestrians, cyclists and motorists while attempting to navigate downtown Ocala,” Watt said.

Discussions of an alternative plan to one day convert the rail corridor into a multi-use trail have been brought up to the city and county for the past few years, and the school board emphasized its support for a project like that, rather than assuring the continued use of the railroad for years to come.

Jon Barber, a real estate broker who is the driving force behind the rail-to-trail proposal, has brought up the plan with city, county and state officials to suggest purchasing the railway from CSX Transportation to make the idea a reality.

“Trails in communities across Florida, across the country, across the world, give people an opportunity to travel to places without cars,” Barber said. “Imagine a linear park with a trail connecting Tuscawilla Park to downtown Ocala, past the S-Curve to Brick City Park then on to Forest High School, the Rotary Sports Complex, the Cross Florida Greenway, Baseline Trailhead and Lake Weir High School. That’s a transformational change for our community that cannot happen for the foreseeable future if the county commission approves that application.”

Ted Schatt, an attorney and board member of Ocala Main Street, coordinated with Barber to begin scheduling conversations with city and county officials in May until the competing proposal from ADS halted their progress.

“The question is whether the next 30 years of our history is going to be with rail in this location, or whether we’re going to have an alternative. This is a remnant of our past, and I’m asking you not to make a part of our future,” Schatt said to commissioners before the vote.

In a letter from the Trust for Public Land, written by Southeast Region Conservation Director Doug Hattaway and addressed to Marion County Transportation Planner Kenneth Odom, TPL expressed its view that an article in the “Gazette” misrepresented the foundation’s stance on the issue.

Mickey Thomason, former manager of the Marjorie Harris Carr Cross Florida Greenway, advised Barber and Schatt on the rail-to-trail proposal. Thomason and Barber told the “Gazette” that they recalled conversations had between CSX and TPL, where CSX expressed open-mindedness toward the idea of selling the rail corridor if there ever came a time where the rail was ever to be decommissioned.

“When you look at the letter from CSX and Florida Northern, those entities have a financial interest in seeing 48 more cars on their line. Of course, they’re going to tell you they have no interest in rail-to-trail,” Schatt said.

CSX and the Florida Northern Railroad each individually expressed to the county that there was no intent to decommission or sell the rail, and that the line will continue to serve its customers.

TPL did not take a stance on whether the ADS special use permit should be approved and said that even if it is denied that there would be no discussion of rail-to-trail as long as the line is active.

“TPL hasn’t a position regarding the request; however, even if the request is denied, the line remains active, still precluding any discussion for a rail trail,” wrote Hattaway. “Perhaps one day in the future, economic conditions will change allowing for rail-trail discussions, but this is not that time for the Ocala line.”

Schatt described any discussions about the viability of the rail-to-trail proposal in connection to the ADS permit as a “red herring,” urging the commission not to approve the competing application and ensure continued rail traffic, taking away the possibility of the line being decommissioned for several decades.

“Talking about the (Trust for Public Land) letter, if you read it, it says as long as there is rail traffic on this line, we can’t touch it. Should there ever be a time where there’s not rail traffic on this line, we will be the first one to the table,” Schatt said.

Mathew Shereen, vice president of operations for Florida Northern Railroad, attended the meeting to answer commissioners’ questions about the status of the line, the standards of inspection it is subject to, and the changes that would occur with the approval of the ADS permit.

“We have current customers on that rail spur, under 20 current active customers on our Ocala rail line. We have a federal obligation to serve those customers when their traffic is presented to us, and we have a full-time marketing team that is working in conjunction with CSX, in conjunction with our online communities to bring new customers,” said Shereen.

The areas of downtown and midtown are supported by the Downtown Community Redevelopment Agency, a city-run revitalization effort funded by a budget generated by the increase in property taxes within the areas.

Wendell Landry and Joel Gibson spoke on behalf of their complex, the Forge, a midtown entertainment center in the making that will house five restaurants, six bars, a microbrewery, containers and kiosks. Both expressed concerns about the increased use of the rail that runs right behind the complex.

“If that continues, then with the $8 million that Wendell and I are spending on this project, trying to bring Midtown to some level of influence, it’s really going to be detrimental to us,” Gibson said.

The Ocala Metro Chamber & Economic Partnership, represented by President and CEO Kevin Sheilley, expressed support for the ADS manufacturing and use of the rail.

The CEP’s Board of Directors is made up of a number of officials with involvement in the issue, including Batsel, City Planner Pete Lee, County Administrator Mounir Bouyounes, and MCPS Superintendent Diane Gullett.

When asked how the CEP handles conflicts of interest when deciding whether to support an issue, Sheilley said it will “work in conjunction with partners both public and private. That does not mean we will always agree.”

“When the CEP board takes a position of support, it follows action directed by the board. In reference to your question regarding ADS, the board’s discussion, and ultimate action in support of the ADS permit, included Mr. Batsel’s declaration of a conflict and Mr. Bouyounes’ abstention from the vote. The consensus discussions by both council and the school board occurred after the CEP had already issued its letter of support,” Sheilley wrote.

He said the CEP focuses on items of agreement for most members rather than items of disagreement for a minority of members.

Additionally, Commissioner Craig Curry’s home and Commission Chair Michelle Stone’s business with her husband, Charlie Stone, Stone Petroleum, both abut the railroad tracks.

“(The Stones’) property will continue to border a rail line in the event they desire to utilize rail service now or in the future,” Schatt said.

Even without the rail-to-trail conversion option, Ocala revitalization advocates and community members still emphasized concerns that without a traffic analysis and other studies conducted, there is no way to know how the increase in rail use will impact the area.

“County staff did not perform or require an evaluation of the impact of the added rail traffic on our arterial roads or emergency response times. My understanding of the statements from the county commission is the county did not feel it could consider the impact of added rail traffic in this process,” Schatt said. “Consequently, we will all discover the extent of those impacts in real time as the rail traffic increases.”