PANAMA CITY — Royal American pulled out all the stops to try to get a deal done on the Marie Hotel property, but it wasn’t enough as the Panama City City Commission on Monday night voted against the development order 5-0.
Royal American had proposed to develop a 44-unit senior affordable housing complex where the historic but long-vacant Marie Hotel now stands.
Owner Joey Chapman offered to build a two-level parking garage on the west side of Luverne Street. The senior residents would park on the top level and traverse a walkway to enter the apartment building. The garage would have included 55 spaces for public use.
“Would you have to tow residents for parking in public spaces?” Commissioner John Kady asked.
Royal American then offered to lease the lot at the corner of Fifth Street and Magnolia Avenue to the city to use for parking. This lot was the subject of the commission’s denial. Planning Director Mike Lane reversed his previous stance and said that because the lot was not abutting, separated by two city right of ways, that the project did not meet density requirements. Lane was influenced by the opinion of attorney David Theriaque, hired as an expert.
“Abutting does not appear in the (site plan) definition,” Lane said under cross examination from Royal American attorney Doug Smith. “Planning staff never identified this issue until today.”
Royal American’s Derrick Bennett even implied that Chapman was open to the idea of cutting down to 31 units from 44, meeting the requirements with just the two parcels.
“We would allow 31 units with a two-story garage,” Commissioner Billy Rader said before making a motion to that affect.
However, under the guidance of city attorney Nevin Zimmerman, the commission decided it could only vote on the development order as proposed. The commission agreed that the abutting issue made 44 units untenable.
“It’s clear that if we approved this, we’d be violating our own code,” Kady said.
Mayor Greg Brudnicki is hoping that Royal American will come back with a development order for 31 units.
“One of two things will happen — they’ll either come back with a proposal or a lawsuit,” Brudnicki said.
Smith alluded to this reality in his closing remarks, honing in on a phrase continually repeated by Lane — that the city land development regulations and comprehensive plan are filled with grey areas.
“The circuit court will decide whether these areas are grey or not,” Smith said.
Chapman declined to comment after the meeting.
Other action
In other business, the commission approved:
-The first phase of constructing a $1.7 million natural gas filling station starting in late 2014. Public Works vehicles would be the main fleet to be modified to run on natural gas. Public Works Director Neil Fravel said natural gas will be cheaper and cleaner burning, adding that if the city opens up the station to public use, it will quickly make back the large starting costs.
-A loan of $55,000 with 1 percent interest to the Downtown Improvement Board. The DIB is responsible for monthly payments of $500. The commission added the requirement that if the DIB wants to borrow money, even from a different source, it must ask the commission.
-The 2014-15 city budget, including a millage of 3.85 mills, down from3.87 mills in 2013-14.
-Accepted three grants: $18,600 from the Florida Department of Transportation, $25,000 from the Department of Homeland Security and $10,132 Justice Assistance Grant.