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City picks new firm to pilot redevelopment plan

The City Council picks a local firm over a staff recommendation for the long-standing project.

By LIDIA E. KELLY
Published October 15, 2006

TEMPLE TERRACE - Disregarding the recommendation of the city staff, the Temple Terrace City Council on Thursday night chose Pinnacle Realty Advisors of Tampa to be the next developer in command of the town's revitalization project.

"It's been a lot of work, so I am very, very happy the city has picked us," said Skipper Peek, managing partner of Pinnacle Realty, who will work on the redevelopment in a partnership with Ram Development, of Palm Beach Gardens, and the architectural firm Cooper Carry, of Atlanta.

Four companies had vied for the job to transform the depressed southeast corner of 56^th Street and Bullard Parkway into a high-density walkable downtown. However, when it came to the final 4-1 vote, support was divided between two contenders: the Georgia-based joint venture of the Vlass Group and MJ Lant Developments, an outsider who won the hearts and minds of the Temple Terrace city staff; and Pinnacle Realty who seemed to have the support of most everyone else, including a local pastor.

The other two applicants were hardly mentioned during the two-hour special council meeting.

The previous week, all four applicants had made public presentations of their plans.

Kenneth Tozier, who is running for City Council in the upcoming election, attended the presentations but not the Thursday meeting.

"Oh, they were delicious," Tozier said. "It's like going into a candy store. They all had potential but lacked in substance."

The city staff and council members, however, praised the developers for their work.

Ralph Bosek, the city's redevelopment director, together with the city manager, the city attorney and four other staff members of the city search committee, found unanimously that the Vlass Group had the soundest financing and the most expertise in town center development.

"They are the most competent," Bosek said.

Council members, however, criticized the group for submitting a vague response to the city's request for qualifications and for lacking a local connection.

"I don't feel comfortable with that," said council member Ken Halloway.

Mike Vlass, of the Vlass Group, said his company wanted to listen to the city's concerns and desires and would come up with a detailed plan within 60 days.

This strategy misfired as the council decided to go with Pinnacle Realty, the local developer who presented the most thorough proposal.

"Your RFQ (request for qualifications) response was the most specific and most detailed," council member Frank Chillura told Peek.

"It was a Skipper (Peek) love fest," council member Glenda Venable, who cast the sole dissenting vote, said. "It was politicking hard, lobbying fast."

City Mayor Joe Affronti also recommended Pinnacle Realty.

"They have a vested interest in making this project a success," Affronti said.

Peek, who coaches youth football and has the mayor's grandson on the team, said he has been thinking of the redevelopment for a few years now, but decided only a few months ago to get involved.

Bosek said he feared that the low-density site plan Peek's company presented would not recoup the city's investments.

And finances seem to grow in importance in this prolonged project. The city has spent about $22-million on 35 acres of the 38-acre parcel, mainly through interest-capitalized loans. First payments of the loans are due in two years, and so far there have been no returns.

The original plans called for a mixed-use boutiquelike downtown that would include apartments, offices and plenty of little shops. The plans however, did not take under consideration Sweetbay/Kash n' Karry, which is a tenant of more than 42 percent of the plaza and has a lucrative lease expiring in 2044.

The Orlando-based Unicorp National Developments, the first master developer of the project, failed in its negotiations with the grocer. In July, the city of Temple Terrace terminated its relationship with Unicorp for failing to meet deadlines, hence, the need for a new developer.

These days, however, in addition to renegotiating the grocer's lease, Pinnacle Realty has to deal with a sluggish housing market. Whatever the company proposes, the priority will go to developing commercial space, which can bring faster returns.

Tozier said the speed with which the city has moved to select a new developer is nothing but a pre-election tactic.

"I think this is a beauty contest," he said. "They're doing it for political reasons and not in the best interest of the city."

Council member Chillura had proposed to wait on making the selection until after the election, but his suggestion met harsh criticism.

"To stop doing city business now because of the upcoming election would be irresponsible and ludicrous," Affronti said. "It's time to move forward now."

[Last modified October 14, 2006, 21:57:51]