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DAVID KARPUnder his plan, the authority and developers would be partners in a deal worth millions.
TAMPA - Former Olympic promoter Ed Turanchik laid out a deal Monday to get control of the Central Park Village housing project:
His company would take over the 28-acre housing project that's at the center of plans for a new upscale development downtown.
And in return, the Tampa Housing Authority would get five properties inside the upscale community where they could house the poor next to residents paying premium rates.
The authority would also get 200 other lots near Central Park - where they could build low-income homes by buying units from another Turanchik company.
Housing officials left a four-hour meeting Monday pleased with the concept.
"This has the potential to be a tremendous public-private partnership," said Jerome Ryans, the authority's executive director.
His staff promised to work around the clock to scrutinize the deal and introduce it to public housing residents, who would be moved from their homes.
The deal offers the housing authority a couple of possible benefits. For one, the authority would move from being a landlord of the poor that depends on federal dollars to being a developer, which could generate revenue to pay for programs.
Essentially, the authority and private developers would get in bed together.
Turanchik would get control over the Central Park housing project. He can't build his upscale subdivision without the strategically located property.
The authority would get a piece of Turanchik's upscale project, which would allow it to make more money on rents.
The housing authority's five buildings would include subsidized and public housing, but also units that sell at market rates.
As part of a nicer, bigger neighborhood, the authority could charge higher rents - and earn as much as $41-million more through higher rents over 15 years.
Right now, the authority concentrates more than 2,000 poor residents on a single campus. By partnering with Turanchik, they would be spread over five sites from downtown to Ybor City.
The five sites would include a 17-story high-rise across from the Floridan Hotel in downtown; a four- to eight-story complex on Nebraska Avenue, a four- to eight-story complex on Central Avenue, and two buildings near Ybor City. One of the Ybor City sites would be a six-story center for seniors.
Under Turanchik's plan, the authority would get land from developers and construction funds from a $20-million Hope VI federal grant. Turanchik would work to help the authority win the grant.
By partnering with Turanchik, the authority might be able to tap into the area's new wealth to get funds for programs.
Developers would charge new tenants of the swanky townhomes a 1 percent fee whenever they sell units. The millions would pay for community events such as concerts, but could also go to low-income housing programs.
The authority might also benefit from a tax increment financing district, which would direct a part of new property taxes in the area back to Central Park. Turanchik expects the development will create more than $25-million in new property taxes.
He wants at least $14-million, or 56 percent, to pay for capital projects in Central Park. He wants the city to spend some of those funds on operating costs for affordable housing programs.
Outside of Central Park, the authority would also get 200 lots scattered across the inner city. Residents who live in Central Park could choose to move to one of these lots in east Tampa, Tampa Heights and West Tampa.
Turanchik would not only provide the lots; he would supply the homes. Turanchik's investors plan to open a factory in East Tampa to manufacture steel parts for low-cost homes called "Renaissance Homes."
Turanchik says the factory will bring about 100 new jobs to the city and will produce a nice, low-cost home.
His deal with the housing authority also creates an automatic customer base for his new plant. He wants the authority to buy his Renaissance Homes at a 15 percent markup.
Turanchik hasn't provided models of the homes yet or a guarantee that the houses will have better qualities than other units on the market.
Turanchik has yet to disclose where the 200 lots are located.
"I not only want a property list, I want to walk the properties we are talking about," said Toni Riordan, a housing authority board member who attended Monday's meeting.
The housing authority may also want a member to sit on Turanchik's private board of investors, she said.
Turanchik will need some guarantees from the housing authority too. His company would require the authority to build and maintain five top-notch projects that match design standards of pricey townhomes.
If the authority's five buildings decay, Turanchik's upscale townhomes would suffer.
"What an unbelievable thing we are trying to work on," Riordan said. "A deal where the poorest of the poor and the richest of the rich have to work together."
- Times staff writer David Karp can be reached at 226-3376 or karp@sptimes.com