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The City Council votes to sell 1.25 acres of waterfront land for a 25-story tower that outgoing Mayor Dick Greco lauds as the catalyst for an economic upswing.
By DAVID KARP, Times Staff Writer
© St. Petersburg Times, published March 28, 2003
TAMPA -- Mayor Dick Greco closed one last deal Thursday in his final days in office.
In an agreement Greco wanted, the City Council approved the sale of 1.25 acres to a developer with plans to build a 25-story residential tower downtown.
The city should get at least $2-million in the deal and a promise to build condos on the downtown waterfront next to the new Tampa Museum of Art.
The 25-story tower proposed by the Byrd Corp. of Clearwater would anchor the cultural arts district that Greco launched in his second term as mayor.
Once the project goes up, Greco predicted, it will lead to a building boom downtown around the $52-million art museum.
The Council voted 6-0 for the deal with council Chairman Charlie Miranda, who didn't like the terms, absent for the vote. He later said he would have voted against it.
Miranda compared it to the deal to build Raymond James Stadium for the Tampa Bay Buccaneers. Miranda wore black for months to protest the Bucs deal, saying it didn't protect taxpayers.
During the discussion Thursday, Miranda didn't like the condo deal's financing structure, purchase price or the idea that the developer might eventually control docks on the Hillsborough River. He asked a series of questions that exasperated some city staff.
At one point as Miranda read from the agreement, Donna Feldman, an attorney for the developer, turned her back to the council and sighed.
Miranda asked whether there had been any discussions about allowing the developer to control docks. Miranda has opposed such deals, arguing that the riverfront should not be leased to private companies.
The company leased public docks on Garrison Channel for the 19-story Grand View residential tower on Harbour Island, developer Robert Byrd said.
"Our vision is an urban waterfront," he said.
Any future lease agreement would have to go back before the Council, mayoral aide Ron Rotella assured members.
Miranda also questioned the purchase price: Byrd agreed to pay about $2-million.
Unlike an ordinary land sale, almost all of the money will likely flow to the city as condo units sell. Ordinarily, the city would get money for the land upfront.
But under the terms approved Thursday, the city is expected to get between $20,000 and $25,000 as each unit sells, depending on the prices set by the developer.
"We felt it was a pretty savvy business deal for the city," Rotella said.
City officials said an appraisal that put the value of the land at $5-million was too rosy.
They noted that the deal would bring the city $1-million more than the price other developers were willing to pay upfront for the land.
If the condos don't sell well, city taxpayers are still protected, Rotella said. After 31/2 years, the developer will pay the remaining balance of the $2-million, regardless.
As an incentive, the city will also waive fees normally assessed to developers for green space.
City staff said the incentives would help the developer accomplish one of the mayor's longtime goals.
"The focus we need is residential downtown," Rotella said.
Fernando Noriega, the city's development administrator, said the tower would add to the tax base and spur more residential building.
"The profit to be made is not as important as having residential downtown," he said.
-- Staff writer John Balz contributed to this report.