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Sorting Through The Options

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By JOYCE McKENZIE, The Tampa Tribune

Published: November 28, 2007

Updated: 11/26/2007 08:11 pm

TEMPLE TERRACE - Content with the site plan they approved this year, most city council members had their sights set on sealing the deal soon on a redevelopment project that has been in the works for almost a decade.

Developer Ram/Pinnacle's plan to revitalize a 23-acre blighted retail site southeast of 56th Street and Bullard Parkway was approved March 20. In addition to new office, restaurant and retail space, it called for two parking decks, 53,500 square feet of combined living/working space, a 21,000-square-foot arts education center and 50 riverfront town homes. It also showed an additional 22,000 square feet of live/work space that would become available at the northwest corner of the project when Burger King's lease runs out in about five years. The city's asking price for the property was $16.9 million.

However, on Nov. 6, Temple Terrace's elected officials were thrown a curveball when Ram/Pinnacle surprised them with three new plans to redevelop the same parcel of land, minus the riverfront property.

In an effort to sort through their latest options, the Temple Terrace City Council, acting as the Temple Terrace Redevelopment Agency, met Nov. 20.

Plan 8A shows a 19-acre site, with no arts education center, no parking decks, Burger King moved east on Bullard Parkway and a bank in the fast-food restaurant's space. It also calls for 25,000 square feet of live/work space. With the elimination of the 4-acre riverfront parcel, the developer would be willing to pay $14.9 million for the property.

The 8B plan includes a 17.5-acre site, with space for a 20,144-square-foot arts education center, 37,500 square feet of live/work space, a parking garage at the eastern edge of the property, the relocation of Burger King and two banks. Ram/Pinnacle would pay $14.9 million for the property and, in return, is asking $1 million for the arts education center space. The city would be responsible for its construction.

The third plan, 8C, is also a 19-acre project, with no arts education center, no parking decks and Burger King in its current location. The live/work space would be 25,000 square feet. Developers would be willing to pay $14.9 million for the property.

In addition, Ram/Pinnacle has requested $1.8 million to subsidize what it says is a downturn in retailers' expansion plans and lease rates because of market conditions.

Councilman Ken Halloway said he would not support any of the new plans.

"I thought we turned the corner when Ram/Pinnacle presented a plan ... that council approved in a 5-1 vote on March 20, with the expectation that contract negotiations would be approved early next year," he said. "The best thing I can figure out is that Ram/Pinnacle cannot deal with what we approved. We owe our citizens something better than what is being presented tonight."

Although Councilman Mark Knapp said he had no "issues" with the plans, he did have concerns about their financial factors.

"I'm not in favor of the purchase price that was already set in stone. We've already taken $2 million off for the riverfront property," he said. "You want to pay $14.9 million for the property and then take $1.8 million off of that. I'm not in favor of that."

Pinnacle's manager partner, Skipper Peek, said the decision was made as a result of a market study.

"Our bottom line is 9 percent, and at the time of the RFP request for proposal, it was 9.4 percent," he said.

Councilman Frank Chillura said he needed to take a realistic approach in his decision-making process. Ideally, he prefers plan 8B, but he is concerned about the city's financial obligation to build the arts education center.

On the other hand, Councilman Ron Govin, who has acted as the council liaison in negotiations with the developer and staff, thinks the 8B plan is doable.

"As for the debt, you're looking at about $2 million spread out over 20 years," he said "We believe Masque Community Theatre could handle some of that, and the city is going to have to pay for the recreation programs. If we don't have it there, it would be somewhere else."

Mayor Joe Affronti is also in favor of building the arts center.

"We'll go out and get money to build the arts center. It's something to offer our citizens that we don't now have," he said.

Councilwoman Alison Fernandez agreed.

"Yes, there is a cost to that, but it adds value to our city," she said. "It would bring people there for a reason, even from outside our city."

All council members with the exemption of Govin objected to the developer adding $1.8 million to the project's cost. Peek, however, said the costs are justified.

"Either our rents are reasonable and our costs are reasonable or they are not. We're open-book on this," Peek said. "The reason I'm talking is that if you're not willing to accept the $1.8 million, that would amount to killing the deal."

The redevelopment agency voted to continue the discussion Dec. 4, prior to the city council meeting.

Reporter Joyce McKenzie can be reached at (813) 865-4849 or jmckenzie@tampatrib.com.

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