Palm Bay Council Endorses Ambitious Redevelopment Plan for The Compound

Palm Bay, FL. — City leaders on Thursday night unanimously approved the Compound Redevelopment Action Plan, signaling the most serious push in decades to transform the long-troubled southwestern area into a business and industrial hub.

Prepared by consultant firm Vita Nuova under a U.S. Environmental Protection Agency grant, the five-phase plan outlines a vision for turning a portion of the 2,784-acre area, long plagued by illegal activity and safety concerns, into nearly one million square feet of new commercial, industrial, and research space over the next eight years. The City projects the full buildout could generate up to 2,500 new jobs and nearly $2 million in annual property tax revenue.

“This is a plan. And for years, leadership hasn’t even looked at this area,” Mayor Rob Medina said during the meeting. “This is a vision. Without a vision, we’re going to perish.”

Known as “The Compound,” the site was originally developed by the General Development Corporation in the 1980s but was largely abandoned after the company’s 1991 bankruptcy. While zoned for residential use, the area has gained a reputation as a hotspot for off-roading, illegal dumping, and even violent crime.

Under the EPA-funded proposal, Phase One would begin in Unit 53, a 30-acre city-owned parcel seen as the area’s “low-hanging fruit.” The plan proposes 380,000 square feet of business and industrial flex space, with later phases expanding development eastward. A future substation is also proposed to meet long-term energy needs.

However, consultants and city officials acknowledged several hurdles to realizing the plan, including the area’s fragmented ownership, with over 2,700 individual property owners, limited infrastructure, and no immediate access to major highways. Many speakers stressed that the long-stalled extension of the St. Johns Heritage Parkway must be completed before any serious investment can take place.

“I don’t think anything’s going to work out there unless the parkway’s in,” said Deputy Mayor Mike Jaffe. “Industrial wouldn’t even go out there unless they had quick access to I-95.”

City staff also floated the idea of land swaps with Bombardier Recreational Products (BRP), which owns adjacent land but has expressed interest in maintaining buffers for security. Additionally, Palm Bay is considering using special assessments and applying for federal economic development grants to help fund road and utility expansion, though such grants require identifying committed end-users.

The plan also recommends rebranding the area with a new name to shed its negative reputation.

“I’ve been hearing about The Compound since I was 16 years old, and it was always a warning,” said Councilman Mike Hammer. “This is a huge step forward.”

The council ultimately voted to accept the action plan and directed city staff to return with a prioritized implementation strategy, including cost estimates, a phased timeline, and potential funding sources.

“This is how you eat an elephant — one bite at a time,” Mayor Medina said. “And this is a great bite.”