March 5, 1990

Developers’ Censure Sour Grapes

Sour Grapes!

According to out-of-town newspaper reports, a group of unidentified local developers have criticized a proposed contract between the City of Punta Gorda and Classic Properties of New Orleans for construction of a 32.6-acre, public-private downtown waterfront complex.

Final reading of a proposed building height variance-sought by Classic as essential to the project-will take place at the council’s regular meeting Wednesday.

The variance and conceptual approval of the 203-page contract received unanimous support of the council two weeks ago.

Principal complaint seems to be that the city’s Park Use Study Committee, a negotiating expert, and the five council members have made concessions not usually granted developers.

Right.

And for very good reasons.

The city insists on a “mix” of uses for the waterfront: resort hotel, marina, restaurants, retail stores, condos, offices, public park and a “river walk” open to the public.

Developers who buy property outright tend to scalp the land and pack in ticky-tacky boxes with high profit but low community value.

Punta Gorda has insisted on a rare public-private contract wherein the city sells 6.9 acres for the condos and retains ownership of the remaining 25.7 acres through long-term leases.

This arrangement gives Punta Gorda power to control the project’s style, quality, financial guarantees and pace of development.

Local developers were given an opportunity twice to bid on the project, but were not interested in meeting the city’s requirements.

The anonymous critics contend the city’s $15,000 minimum share of condo price is less than the average $20,000-per-unit land cost of condos in Punta Gorda Isles.

You better believe it. Condo apartments in the heart of a commercial center are a lot less desirable than those in a private up-scale, residential neighborhood.

As with all leases and joint-use contracts, each side had to make concessions. For example, the city will spend $30,000 to clear the property, $114,000 to widen intersections and repair sea walls, and $75,000 to its contract negotiator.

It also will sell the condo property at a price critics consider less than that in Punta Gorda Isles. In all, the city will have about $220,000 of out-of-pocket expenses.

In return, Classic will pay $120,000 outright for the condo wrought-iron fencing around the residential area.

At the end of the 94-year lease, leased property and all on it, will revert to the city.

Some Punta Gorda residents object to raising building heights of the condos to 60 feet and the hotel to 70 feet. However, the buildings have to be raised 10 feet to meet flood restrictions.

The city wants the top 10 feet to be a false roof line concealing air conditioning and elevator equipment. Space underneath both types of structure will be used for parking cars.

The major concession made by the city is allowing the river walk to detour 770 feet around the condos.

After studying traffic and security problems in the area, Classic insists on acreage plus at least $120,000 on condo sales, $120,000 for the marina lease, $1 million for public improvements, including the botanical garden and river walk, pay city impact fees, $300,000 for district regional permits, guarantee lease from stores and hotel and pay penalties if all the property is not developed as planned.

It is estimated that Classic and other leaseholders will invest $58 million in the project over a 10-year period.

Over the same period, the city will gain about $5.4 million, plus an equal amount in increased taxes on the site.

More importantly, the increased value of other downtown properties as a result of downtown revitalization also will bring in more tax revenue indefinitely.

The arrangement has become common throughout Florida, including the private park where most of the former mobile home owners moved.

The Punta Gorda Revitalization Committee has recommended that part of the new revenue generated by the waterfront development be used to purchase three-fourths mile of waterfront property to the east and create additional park and river walk.

To this end, the county commission - to its great credit - has consented to waive its share of increased property taxes in the area on the condition all increased revenues will be used for public improvements.

Last-minute objections by developers are self-serving. Considering the source, their criticism represents the best endorsement for the project as now devised.

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist