PANAMA CITY — Commissioners approved Tuesday the document that will serve as a blueprint for redevelopment of the Panama City Marina.
The approval was pending any last second changes requested by the developers. Representatives Dwight Hicks for Great South and William Harrison for HomeFed and Leucadia said they still were seeking final approval from home offices but that they did not foresee substantial changes.
City Attorney Nevin Zimmerman had made two changes Monday based on concerns from Great South. One was a clarifying statement that most of the agreement — called a memorandum of understanding — is nonbinding. Zimmerman said an exception was the $100,000 commitment required of both developers once they accept the document. After the agreement is accepted, the developers lose the $100,000 if they choose to back out of the deal without submitting a final plan on June 1, the deadline for final plans. The city then has to select a developer within 45 days.
--- DOCUMENT: READ THE AGREEMENT»»
Great South head Jason Lewis expressed reservation about the city’s expectations. The agreement makes requests for detailed financial information and plans, but Lewis said some of that detail would be impossible to provide until a single developer was selected; tenants — like a national hotel chain — would have their own requirements for the space.
“The engineering, the architecture, the project cost — these are things that can only be estimated once you go through design,” Lewis said. “No developer could afford to bring to the table the full set of construction plans.”
The other major change Zimmerman made, per Great South’s request, was adding a clause that the city would pay the losing developer $50,000 for planning elements if those elements are part of the final plan.
One of the details the commission is looking to negotiate after the final proposals are submitted would be financial support provided by the city.
“If the developer concludes that the potential return on investment in the marina does not justify the risk, the developer may request, in its plan, financial support from the city. The developers understand that the city intends for the project to outgrow the need for that support,” the agreement states. “Any financial support requested from the city must be limited to some aspects of the new revenues generated by the marina redevelopment project itself, and potentially the net operational and routine maintenance costs of the marina currently being subsidized by the city. The project must be self-supporting.”
Those new revenues include tax-increment financing, a city sales tax waiver or a lease agreement where the developer may not pay for certain period. Because of tax-increment financing is involved, the Community Redevelopment Agency Board — made up of the city commissioners — also approved the agreement.
--- DOCUMENT: READ THE AGREEMENT»»
In a separate item, Commissioner John Kady proposed stopping special rate payments to Zimmerman in addition to his normal rate now that the agreement has been approved. While the city has spent $129,289 in attorney fees this fiscal year, Budget Director Brandy Waldron said more bills are coming for work completed in December and January, two of the busier months for the group of attorneys that includes Zimmerman, Doug Sale and Owen Beitsch. The marina consulting charges are coming out of the city’s normal legal budget, $575,000. Included in the budgeted amount is the $240,000 to pay for a $20,000 retainer charge every month for Zimmerman, who works for the Burke Blue law firm.
Waldron echoed comments from Zimmerman and the commission that the city is hoping the eventual marina developer will repay consulting fees. Mayor Greg Brudnicki and Zimmerman have both said it is a usual part of negotiations with a developer.