PANAMA CITY — The City Commission is taking a cautious approach in selecting a marina developer with certain worst-case scenarios in mind.
For City Manager Jeff Brown, that scenario is half-built structures, with the project languishing in limbo because the chosen developer ran out of money.
“Bonding for me is going to be very important. If the company is going to be bonded, that type of thing shouldn’t happen,” Mayor Greg Brudnicki said. “It’s very touchy. We don’t want to screw it up.”
To aid the vetting process, the commission sent four pages of questions to each of the six developers who presented plans for the marina. Two of the first three questions deal with finances — queries like: “Who are the likely general and limited partners on the venture as you anticipate it? What is the current financial condition of the general partners? What are the reasonable expectations at this point for the sources of debt and equity?”
“The biggest thing is that we want to find the right development partner,” Commissioner John Kady said.
The questionnaire, sculpted in part by real estate consultant Owen Beitsch, is not due back until Monday. Brown does not project interviews with developers, whether that be all six or a select two or three, to take place until the end of October. Brudnicki expects a workshop meeting with Beitsch sometime soon, but a date has yet to be set.
The six marina project proposals — from Live, Work, Learn, Play; MCM-BAP LLC; Smith Equity Builders; Great South Development; HomeFed and Blue Water — offer different features and vastly different price tags, from a few million to a few hundred million dollars. Three elements where the commission tends to agree are a hotel, improved civic center and some type of retail presence.
Kady and fellow commissioner Mike Nichols still want a public element, possibly a park along with boat slips.
“I want the marina to be accessible to all citizens,” Nichols said.
Great South and MCM-BAP’s plans emphasize residential development — condos and apartments along the water. Brown said a residential presence likely will be crucial to allow a developer to make money.
“They’re going to need it for any restaurant or retail business,” Brown said. “It will be an easy sell.”
Brudnicki wants to see residential development, but outside of the marina area. He pointed out tracts on Beach Drive behind the Paul Brent Gallery and Hawk’s Nest as viable sites.
However, Brudnicki, Kady and Commissioner Kenneth Brown all said they are willing to be flexible with the desires of a developer who has their finances ready.
“I really don’t think it’s time to dictate what we want,” Kenneth Brown said.
While it is the commission’s prerogative to properly analyze each applicant, costs are piling up. The city already has spent $741,817 on the AECOM plan it is using as a guide. The commission approved contracts with attorneys Nevin Zimmerman (also the city attorney), Doug Sale, Mark Mustian and Beitsch for between $150 and $250 an hour for the time spent working on the marina project. Jeff Brown said the city has yet to receive a bill for those attorney services, but it’s only a matter of time.
“We’re going to scrutinize all of those bills,” Brudnicki said.
Regardless those costs will be worth it if the commission makes the right decision, commissioners said.
“The redevelopment of the marina is one of the most important decisions this commission has faced in the last 30 or 40 years,” Kady said.