PANAMA CITY — City officials discussed the fate of City Hall on Tuesday, with the two potential developers of the Panama City Marina agreeing on the need to move but differing on the timetable.
After City Attorney Nevin Zimmerman confirmed both developers got the signed memorandum of understandings in by the March 6 deadline — although Great South’s $100,000 wire deposit was not finalized until Monday — Dwight Hicks, who is Great South’s local representative, talked about City Hall.
“The first thing that has to happen on the marina is that City Hall has to be moved,” Hicks said. “We want y’all to take the lead on City Hall.”
Moving City Hall is a crucial component of both Great South and HomeFed’s plan for the marina. Hicks repeated the statement from Great South president Jason Lewis that the City Hall parcel is the most valuable piece of the entire project.
“We have 23 acres,” Hicks said. “That’s the only large piece to build on.”
Mike Duncan, William Harrison’s law partner — who has represented HomeFed — said that piece of property is essential to the deal. Harrison previously has expressed that he would like a commitment — although not necessarily financial — from the city to move City Hall. However, Duncan said HomeFed is willing to wait to see how the process develops leading up to June 1, when final proposals are due. The commission plans to select a developer within 45 days of the June 1 deadline.
Hicks maintains the city going ahead and building a new City Hall would save about 25 percent of the cost of the developer working on that piece of the project. Plus, the city going ahead with City Hall could shave considerable time when development is ready.
“It’s going to take two to two-and-a-half years to move City Hall,” he said, adding, “There’s going to be a lot of yays and nays involved in moving City Hall. The developer does not need to be involved in politics.”
Mayor Greg Brudnicki responded that the city would prefer to wait on making any commitment on City Hall until after the final marina proposals are in June 1.
“My philosophy has been to create a revenue stream to offset an expense,” Brudnicki said. “What revenue stream will that create? I don’t know how we could do it ahead of time.”
Commissioner John Kady hammered home that the city is expecting the developer to pick up the cost of moving City Hall. This was clear to Hicks and Duncan, as well.
“Both developers just signed an agreement saying it was a huge part of their responsibility to say how they were going to move City Hall,” Kady said.
As far as the corresponding revenue stream, Brudnicki is referring to merchant taxes or property tax increases that could come from the tenants at that location, which could then pay for a new City Hall after the fact. HomeFed has proposed a hotel surrounded by residential in that location. Great South has proposed a mixed-use residential area.
Great South and HomeFed are not in agreement with a new City Hall location. Hicks said Great South’s ideal location for a new City Hall is at Fifth Street and Harrison Avenue, where Trustmark Bank is now. However, it would require Trustmark leaving that location and selling the property.
HomeFed previously has talked about Sixth Street and Harrison on an empty lot currently owned by First Baptist Church.
In other business at Tuesday’s meeting, the commission — acting as the Community Redevelopment Agency Board: Approved the purchase of 5,600 square feet of a commercial lot at 712 E. 10th St. for $3,900, plus the payment of tax certificates. The property is intended to be part of the Martin Luther King Jr. Boulevard Tourist Development District.
Accepted the donation of 10,039 square feet of a commercial lot at 551 E. Sixth St. from Pilcher Development Group. The lot is close to Bay Medical Center Sacred Heart Health System and is intended for economic development, City Manager Jeff Brown said.