JOINT WORKSHOP OF THE CITY COUNCIL AND TOWN CENTER CRA

MINUTES

COUNCIL CHAMBERS – CITY HALL

1000 CITY CENTER CIRCLE

JUNE 11, 2013

 

THE SPECIAL CITY COUNCIL MEETING of the City of Port Orange was called to order by Mayor Allen Green at 5:30 p.m.

 

Pledge of Allegiance

 

Silent Invocation

 

Roll Call:                    Present:                     Ben Talluto

                                                                        Suzette Blahnik

Councilman Bob Ford

                                                                        Councilman Drew Bastian

Councilman Dennis Kennedy

                                                                        Vice Mayor Donald Burnette

                                                                        Mayor Allen Green

 

                                    Also Present:            Gregory A. Kisela, City Manager

                                                                        Margaret T. Roberts, City Attorney

                                                                        Robin Fenwick, City Clerk

 

DISCUSSION/ACTION

 

4.    Update on Riverwalk Property Swap

 

Greg Kisela, City Manager, provided details of the proposed land swap. Maps depicting the options were provided and discussed. The proposal provides for 221,450 sq. feet of City/CRA property to be transferred to the Developer and 88,301 sq. feet of Developer property to be transferred to the City/CRA. The Developer understands that the appraisals would most likely determine that there would be a cash transaction as well. There have been opinions of value used but the appraisals will show the actual values to be used in the property swap. The Developer proposed this swap but has also said the adult center parcels do not need to be included. This proposal includes an incentive of 25% of the tax increment, as well as 25% to be used for infrastructure, 25% to fund the park, and 25% to fund existing or new debt. More discussion was held regarding the anticipated tax increment amounts and the effects of doing nothing. The proposal will allow the CRA to pay back every dollar to the general fund. Doing nothing will result in the CRA owing the general fund $8.5 million at the end of 2036. Mr. Kisela’s recommendation is to not include the adult center parcels. This proposal shifts the City/CRA away from a master developer type agreement into a more fragmented approach. It gives the City/CRA more control and gives the City/CRA an opportunity to move forward.

 

Member Talluto explained that he wants the City/CRA to receive all parcels south of Herbert and he would agree with the developer receiving the trailer park properties. Mr. Kisela advised that the gray properties are in private ownership and are out of the control of the City/CRA and the developer. Member Talluto would propose giving the Developer 90 days to provide a counter offer then put the City/CRA property up for sale.

 

Councilman Ford is not happy with the “park” area. He doesn’t believe there is room for citizens to gather.  He doesn’t believe there is a park if there are no common areas. He believes it is inequitable. He suggest making a counter offer of the three properties north of Herbert and the City/CRA can pay him if the appraisals show a difference in value. He doesn’t agree with the offer of TIFF incentives. He is willing to work with a developer who provides a good product for the citizens.

 

Vice Mayor Burnette sees potential for the park. He doesn’t want any deed restrictions. He is not opposed to having incentives for the developer but he has a problem with using percentages. He’d like to see a cap on the percentage. He asked for a better idea on the amount to be spent on infrastructure. Mr. Kisela explained why Staff used $150,000 for the price of the condo units.

 

Councilman Bastian doesn’t agree with giving away the trailer park or the adult center. He is in favor of closing Halifax south of Herbert to help with the park.

 

Councilman Kennedy believes the corner lots at Herbert and Halifax give the City good common areas for the park. He believes Option 2 Map is workable. He believes movement is needed in this area to help save the Ridgewood Corridor.

 

Member Blahnik agrees with Councilman Kennedy. She believes the plan is a good one. As a business owner, she wants to see movement in the area.    

 

Mayor Green wants to see the trailer park area stay with the City. Mr. Kisela explained some of the properties. He advised that the Developer is not interested in not including the trailer park in the land swap.

 

Member Talluto wants to start with controlling both ends of the Riverwalk properties and the Developer owning the middle section.

 

Councilman Ford still concerned with the lack of common areas. He doesn’t agree with giving away TIFF incentives. He asked the City Manager to swap any lands but ensure there are common areas and doesn’t give away TIFF.

 

Vice Mayor Burnette wants to see cash at closing for the land swap. He believes the cost of doing nothing is too high and growing every year.

 

 Mayor Green suggested offering the three sections to the Developer. Ocean Avenue to the north is one section, Ocean Avenue to Herbert St. is another section, and Herbert St. to Dunlawton is the third section. He wants to get the property straight without any TIFF incentives.

 

Councilman Bastian has a real problem giving up the trailer park.

 

Councilman Kennedy agrees with Mayor Green’s solution but it’s just another idea. He is in favor of presenting Mayor Green’s idea to the developer. He doesn’t agree with the TIFF incentive at this time because the amount is unknown. Parking is also an issue. He agrees the cost of doing nothing is too high but there are also issues to work through with this proposal.

 

Member Blahnik agrees there are parking issues. She wants the City/CRA to figure out a way to work this out so the citizens and businesses can benefit.

 

Mayor Green believes a decent park can be accomplished. He doesn’t want to offer any TIFF incentives at this time.

 

Member Blahnik prefers to retain the trailer park but it is negotiable. Councilman Kennedy agrees with retaining the trailer park. Vice Mayor Burnette agrees with Member Blahnik.

 

Corey Berman, citizen, asked why the City would put the infrastructure in for this developer when the developers usually are responsible for that.

 

Ted Noftall, citizen, asked for clarity regarding the map Mayor Green was referring to. Mayor Green explained the three sections he was suggesting. Mr. Noftall doesn’t understand the TIFF incentives being offered to this Developer. He was not offered those TIFF incentives when he developed his property in Eastport CRA.

 

Councilman Ford wants TIFF discussion gone. He wants a common area. Mayor Green said consensus is TIFF is off the table. Councilman Ford would also like to see a common area. He wants to retain the trailer park. He would counter suggest the lands between Herbert and Ocean to the Developer in exchange for the Developer transferring the two mangrove swamps and pieces he owns between Herbert and Dunlawton and the City/CRA will pay cash for any difference.

 

Consensus of all members is they like Mayor Green’s suggestion of three sections. Mayor Green wants Mr. Kisela to invite the developer to a Council meeting for negotiations.

 

Joe Corey, citizen, thanked the CRA members for their work on this area. He suggested they not do nothing. He thanked Mr. Kisela for his efforts in working out a land swap with the Developer and making a recommendation to the City Council and CRA.

 

ADJOURNMENT:    6:50 p.m.

 

                                                                                                                                               

                                                                                    Mayor Allen Green

Attest:

 

 

                                                                       

Robin L. Fenwick, City Clerk