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Seeking signs of good news in Florida

Dante Chinni

Posted: 03.27.2009 / 7:47 AM PDT

CLERMONT, FLA. – The question of “what’s next?” for the economy is on everyone’s lips, but it has special resonance in places like this central Florida community.

Clermont, our aging “Emptying Nest” community, has taken its share of blows in the downturn.

First, the construction economy dried up here in 2008, leading to a spike in joblessness. The unemployment rate is about 9 percent now in surrounding Lake County.

Second, the foreclosure mess has been acute here: Foreclosures in Lake were up 175 percent in February 2009 over February 2008.

And third, the stock market’s gyrations have weighed heavily on the area’s retirees and near retirees. Conventional wisdom is that those near retirement probably don’t want to be in the stock market, but the growing reliance on 401(k) funds has left some in a difficult position.

“A lot of them stayed in the market simply because they needed the money,” says Grant Tribble, a financial adviser in Clermont.

Back to work

Lake County is nowhere near Florida’s coastline. About 30 miles west of Orlando, it has attracted a different kind of resident. Many came from the industrial Midwest.

For the most part, the area is not home to wealthy retirees, but rather people who did well enough in life financially to go someplace warm but not extravagant. There are also longtime residents here.

Many are now trying to find ways to hold on to their dreams of sunny golden years.

“There are a lot of people sacking groceries and doing what they can,” says Ray Goodgame, a member of the Clermont City Council. It’s “some kind of job to help with the bills.”

These days, residents are spending less money eating out and shopping, which means that local tax revenues are taking a hit as well. The size of the hole will be better known in April, when property-tax bills come due. Most are expecting a good-sized deficit.

But there are some positive signs here. Commercial real estate growth has not stopped yet. A 110,000-square-foot BJ’s Wholesale Club is moving into a shopping development, and a 16-screen movie theater will be nearby.

Quietly, though, people in banking and real estate in the area say they are seeing signs of a second dip in the economy for Clermont and its surroundings.

Politics

Clermont and the “Emptying Nests” group it represents were not Obama territory in the 2008 election, and they aren’t likely to change their minds anytime soon. Most here will tell you the area is very conservative and not quick to embrace change.

There are not a lot of positive words about the new administration at the Kiwanis and Lions club meetings that play a large role in community life. And tough issues are ahead.

One of the flash points for places like Clermont in the coming months may well be the healthcare debate, which concerns a lot of older people dealing with visits to the doctor.

Many retirees have good healthcare as part of their pension plans, and they aren’t eager to see those plans altered. As Washington digs into the healthcare issue, expect Clermont and other “Emptying Nests” communities to make their voices heard loud and clear.