P.C. Marina proposals vary widely

PANAMA CITY — Six developers submitted widely varying proposals for redevelopment of the Panama City Marina, ranging from a $305 million waterfront makeover to a more modest plan with a price tag of almost $46 million.

Now city commissioners will examine details of each proposal and return at 2 p.m. Monday to discuss how to proceed. City officials said they likely will rank the best two or three proposals and then try to acquire more specifics about each plan.

At a meeting Tuesday, the commission requested a report from staff — primarily attorneys Nevin Zimmerman, Doug Sale and Mark Mustain, and interim City Manager Jeff Brown — about the six proposals.

City officials have long viewed the future of the marina as key to the future economic health of downtown Panama City. Originally the city planned to create a park-like area with a lighthouse, but later decided to invite private developers to submit proposals.

“I’m very encouraged with the people that have taken an interest in this,” Commissioner Billy Rader said. “Major developers, people who will invest in our community.”

Financing the project is the key concern for the commission, particularly finding out which of the six development companies is best suited to carry out the large-scale project.

The most expensive plan is MCM-BAP’s $305 million proposal. Others were Great South Development’s proposal for $141,536,000 and Blue Water Development Group’s $45,975,000 bid.

The other three proposals from Smith Equity Builders, HomeFed and Live, Work, Learn, Play do not provide a cost estimate.

“You should pick who you want to work with and then jointly develop the project,” Sale said.

Part of that joint development will include how much the city will invest. Most of the proposals are not clear about a contribution expected from the city. The Great South proposal does ask for direct funding of $17 million, with another $15 million in tax-increment financing.

“We have a lot of potential tools available,” Commissioner John Kady said.

Different options

The proposals vary in the type of development, but the plans all include a new City Hall, convention center, parking structure and hotel. Most include residential complexes: the Great South Development has eight different plats specified as residential.

Commissioner Mike Nichols said it was always understood that residential structures would be included because that would be one of the ways for the developer to make money.

The commission agreed hiring an independent real estate consultant would be beneficial but took no action Tuesday toward a hire.

Acting as the Community Redevelopment Agency (CRA), the commission discussed applying for a New Markets Tax Credit on the marina project. Panama City was one of 300 entities to submit applications last year but was not awarded the tax credit. Congress established the tax credit in 2000 to spur investments in projects in low-income communities.

Marina proposals at a glance

Here is a short summary of each of the six proposals for Panama City Marina redevelopment.

— Live Work Learn Play Inc. is based in Montreal, Toronto and Nashville. Recent projects include Seminole Boosters College Town in Tallahassee and the Marina District in Riviera Beach. Highlights of its proposal include a hotel/parking structure, a park, retail space, condos, civic center, lighthouse on the water and splash pad. Future development sites are located at the marina entrance near Harrison Avenue and a manmade reef to the west of the dock. The plan does not include an estimated cost and does not explicitly ask for public funding.

— MCM-BAP’s proposal is a joint venture between Munilla Construction Management and Bermello, Ajamil and Partners Inc., both based in Miami. The companies show coastal development experience with Bahia Mar in Fort Lauderdale and Harry S. Truman Presidential Park in Key West. Highlights of its proposal include a convention center connected to a 300-room hotel, four retail pads, a new City Hall, parking garage, 2,500-seat performing arts center, library, a plaza with a monument fountain at the entrance facing Harrison, a lighthouse and two parks along Harrison. The project is split into two phases. Phase one is estimated to cost $150 million. The proposal states that BA/Merrill Lynch has expressed interest in funding all of phase one. Phase two has an estimated cost of $155 million and suggests a municipal funding option of fixed-rate, tax-exempt bond financing procured through MCM-BAP’s financial adviser Dunlap and Associates. The proposal is based on a 30-year lease, with Panama City taking 80 percent of annual land rents.

— Smith Equity Builders Inc. is based in Tarpon Springs, with experience on a marina project in Honolulu and a resort in the Bahamas. The marina proposal does not include a map with planned structures, but does provide a list of targeted usages, including an “educational incubator” in partnership with Gulf Coast State College, Florida State University or the University of Florida, commercial locations, hotel, civic center, marina park and parking garage. The proposal does not include an estimated cost.

— Great South Development Group LLC is based in Norcross, Ga. Highlights include an office/City Hall, retail/restaurant, convention hotel, residential, marina park and a civic center face-lift. The cost is estimated at $141,536,000. In that amount, Great South includes $15 million in tax-increment financing and $17 million in direct funding from the city. The map includes five residential plats laid out facing south on the water, with another on the water facing west. The plan also includes a shuttle between the marina, Shell Island, St. Andrews State Park, Grand Lagoon and St. Andrew Bay. Great South did not list experience working on coastal developments but did have several projects in Georgia.

— HomeFed, based in Delaware, shows experience on six continents, including coastal projects Hyatt Regency Ayla Marina Village in Jordan and Lustica Resort in Montenegro. HomeFed is the current developer of SweetBay in northern Panama City. The marina proposal does not identify a list of structures it wants to put at the marina, but it includes a plan already written by the company AECOM, with the comment, “It’s good.” The AECOM plan features City Hall, a civic center, a park and a lighthouse. The HomeFed proposal does not provide a cost estimate.

— Blue Water Development is based in Panama City. The proposal includes a lighthouse, marina park, pavilion and splash park, Harrison Avenue improvements, parking, craft brewery, 57,800 square feet of retail space, water view and waterfront offices, multifamily residential up to 200 units, civic center, new City Hall and hotel with a conference center. The proposal suggests tax-increment financing and waiving city impact fees. The total cost estimate is $45,975,000. Blue Water did not provide previous coastal developing experience. 

READ THE PROPOSALS

In other action Tuesday, the commission:

- Approved the sale of city owned property at 708 E. 13th St. for about $14,000 to the Church of Christ, which is next door; funds from the sale to go to the Community Development Department.

- Approved classifying property in the 600 block of East Elm as surplus to be put out for bid.

- Approved an ordinance prohibiting outdoor burning within the city limits.

- Approved CRA grants: $900 for Frances Markham at 329 East Ave., $804 for Robert Moore at 223 W. Sixth St. and $2,100 for Richard Yesecuige at 2017 E. Fifth St.

- Heard the first reading of an ordinance allowing bars in the St. Andrews entertainment district to be within 500 feet of a church or school. The ordinance mirrors an ordinance already passed for downtown Panama City.