The Pensacola City Council unanimously approved three, six-month lease options Thursday night for the proposed West Main Master Plan developers at Community Maritime Park.
The approval gives Pensacola Mayor Grover Robinson more time to negotiate a final lease agreement with the three development groups, provided that the key development group of Silver Hills and Edwards Communities Development Companies pays its past due $16,500 lease option payments to the city by March 31.
The three development groups are paying the city slightly more than $7,500 a month for the lease option. The lease option isn’t a lease agreement, but rather gives a company the exclusive right to negotiate a lease with the city.
Development’s long history:Fate of Community Maritime Park once again at center of Pensacola politics
Before the council’s vote Thursday, the lease options were set to expire March 31.
In 2018, Studer Properties and the city entered a lease option to create the West Main Master Plan that would create a downtown waterfront district tying Community Maritime Park to Bruce Beach and the Studer-owned, 19-acre parcel across West Main Street.
In October, Studer Properties selected the three development groups after a nationwide search for proposals that would follow the West Main Master Plan, and the City Council approved the transfer of the lease option from Studer Properties to the three developers.
Inspired Communities of Florida LLC and EJ Smith Enterprises LLC took over four of the parcels as master developers of executing the West Main Master Plan. They plan to build a 234-unit, mixed-income apartment development on the 19-acre property across the street from the Community Maritime Park.
Valencia Hotel Group of Austin, Texas, is proposing to build a 180-room upscale hotel on one of the parcels along the waterfront next to Nick’s Boathouse restaurant.
However, city officials say the most crucial development is the proposal by Silver Hills and Edwards Communities Development Companies to build between 375 and 450 apartments, 10,000 square feet of retail space and a 1,050-car parking garage on two of the parcels at Community Maritime Park.
The parking garage, officials say, will make the other developments at Community Maritime Park feasible, and without it, the other developments won’t move forward.
Under the proposal, the city would grant a 99-year lease to Silver Hills in exchange for the developers building a $19 million parking garage, which is $10 million more than needed for their development. The city would count the extra $10 million of value in the garage as a payment for the lease.
Silver Hills would also be granted a property tax break for the first 10 years of the lease.
Council members have questioned the financial arrangements of the proposal, and in February, they dealt Robinson a defeat by rejecting his proposed contract for a real estate broker Andrew Rothfeder.
Robinson said earlier this week that he viewed Thursday’s vote as a signal from the council members on whether they want him to keep negotiating the leases on the project.
The only questions raised Thursday night were if the three companies had made their monthly payments for the previous six months. Inspired Communities and Valencia had made their payments.
However, Silver Hills had only made one payment for the previous six months. That payment was made Thursday morning by credit card, and the developers still owed the city about $16,500.
Robinson told the council he was surprised the developers hadn’t paid after meeting with them Wednesday.
“We had that discussion very clearly with them yesterday, and we told them that,” Robinson said. “And I expected them to pay.”
The council approved the Silver Hills’ lease option with the provision that they make all of their past due payments by March 31.
Silver Hills’ lease is expected to come before the City Council in April.
Jim Little can be reached at jwlittle@pnj.com and 850-208-9827.
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