PANAMA CITY — City commissioners gave potential marina developers a 10-day deadline to sign an agreement outlining the scope of work at the Panama City Marina.
“The document we worked on in December is basically the same document we approved four weeks ago,” Commissioner John Kady said. “This isn’t the Constitution; it’s not that difficult.”
Part of that deadline is the developers — HomeFed and Great South — have until the end of the week to express changes they want and work them out with City Attorney Nevin Zimmerman. Along with a signature, both developers need to supply $100,000 for collateral.
“God did it in seven days,” Mayor Greg Brudnicki said. “We’ll give them 10.”
But city officials did not attach any consequences for failing to meet the deadline. Brudnicki and Kady said the development will be discussed at the next meeting March 14. If one developer signs and the other does not, Kady suggested a penalty as onerous as eliminating the unsigned party from consideration.
“At that point, all options are on the table,” he said.
William Harrison, representative for HomeFed, said he is just waiting for the signed agreement, called a memorandum of understanding, and a check for $100,000 to arrive from California. Zimmerman believed Great South also is ready to approve the agreement.
Representatives of Great South could not be reached for comment Tuesday.
What originally spurred discussion of the marina was a continuing request by Kady to stop paying Burke, Blue, Hutchison and Walters, the firm of Zimmerman, special project consideration, $250 an hour, on top of Zimmerman’s normal attorney fees. As of Feb. 20, Burke Blue has racked up $55,245 in charges of the $160,563 the city has incurred this fiscal year. Harrison, Sale and McCloy, the firm of consultant Doug Sale, has received the second most, at $50,301.
The commission decided to do nothing on that request with the understanding that the consultants — including Real Estate Research Consultants, the firm of Owen Beitsch, that has received $35,838 — will now start working on the lease agreement.
“The most important thing for us is to craft a lease that the developers will accept and we can live with,” Brudnicki said.
Brudnicki, Kady and Zimmerman believe the framework of the lease agreement can be completed before a developer is selected after June 1.
“They can get the lion’s share of the lease done,” Brudnicki said.
Harrison has suggestions for what city commissioners can do before June 1:
- Declare they will relocate City Hall, clearing up any confusion for developers.
- Figure out whether to purchase additional property on Beach Drive or elsewhere.
- Conduct a study to determine the water and sewer capacity needs at the marina, where the connections need to be made and how it will affect surrounding areas.
- Determine a plan for how the tourist development committee will spend bed tax dollars.
“There is no shortage of things they could be doing,” Harrison said.
However, real negotiations will not begin until a developer is chosen, and the lease will be a primary point of contention. The negotiations are critical because the developers still have the opportunity to leave a deal on the table.
“If the financial burden is too great, the developers are not going to put money into it,” Harrison said.
In other business Tuesday, the commission:
- Approved a 4 a.m. alcohol sales end time to be permanently inscribed in the city ordinance.
- Approved giving Neal’s Temple Church the lot of 821 E.10th Court as a parking lot.