City sets plan for marina proposals

PANAMA CITY — The Panama City Commission on Monday set a strategy for deciding which of six proposals it will select to redevelop the city marina.

The first step is sending each developer a series of questions designed to assess the abilities, experience and financial strength of each developer.

“The focus is on the ‘who’ rather than the ‘what,’ “ City Attorney Nevin Zimmerman said.

After the responses are received, the commission will select one to three developers to interview. Attorney Doug Sale, retained by the city to help with the project, said the commission should reach this step by the end of September.

The third step would be a written agreement, which will outline the basic terms and conditions of what the developer will bring to the project and what the city would consider providing in terms of infrastructure and financing.

“I look at it like a romance,” Sale said. “We’ve been doing speed dating at this point. Then we pick a couple to get more serious with and then pick one to go steady with. Once you reach the (written agreement), it could go fast or slow because the devil is always in the details. You’re not married yet but you’re committed.”

Attorney Mark Mustian, another lawyer hired by the city, said the city might entertain potential stormwater and sewer infrastructure improvements at the marina. He also went through several public financing options: a special tax assessment, increasing the business tax, currently at 1 percent of gross revenues; tax increment financing and using bed tax funds for the marina. Mustian also suggested using a new market tax credit for which the city is planning to apply with the federal government as a supplemental source of funding.

The commission said it will consider a real estate consultant at its next commission meeting July 22. Sale suggested Owen Beitsch who owns Real Estate Research Consultants based out of Orlando. Beitsch has experience working on Pier Park in Panama City Beach.

Sale said a consultant’s expertise would be valuable in negotiations, stating the only focus of the developer is getting an adequate return on investment.

“We have to get a return on our investment too,” Mayor Greg Brudnicki responded.

The city’s return might include taxes from property and sales of any retail businesses. The bed tax also would apply to a hotel at the marina, a component of most proposals. However, it could also recoup costs from a long-term lease that could be a percentage of revenues.

“What we need to be looking at from a staff perspective: is this project overall worth it to city and community?” interim City Manager Jeff Brown said. “Is this development going to help pay for itself?” 

READ MORE ABOUT THE PROPOSALS