Real Estate Blog

Florida TaxWatch, a nonprofit and nonpartisan government watchdog, and taxpayer research institute released their report titled “If You Build It, He Will Come: Florida TaxWatch Looks at the Tampa Bay Rays Ballpark Proposal” on April 9. The report was created after St. Petersburg councilmember Lisset Hanewicz requested it be made. The report examines the plan to build a new Tampa Bay Rays’ stadium that will be surrounded by nearly 8 million square fer of mixed-use development. The report identified several risks and offers suggestions to mitigate risk for the city. The St. Pete City Council and Pinellas County Board of Commissioners are expected to vote in the coming months, with City Council holding their first discussion of the deal on May 9. With he current terms of the deal, public money would pay for nearly 50% of the ballpark with the city slated to pay $287.5 million, the county paying $312.5 million, and the Rays’ paying the remainder. Hanewicz says she requested the report to have the perspective of an independent, nonpartisan organization on the deal. The report itself finds that “regardless of who is paying,” the new ballpark will “generate considerable consumer satisfaction.: However, there were three recommendations made to “mitigate risk and balance the interest” of the Rays and local taxpayers. Those recommendations were: - Having the development agreement include “clawback provisions” to give taxpayers some level of “money back” protection if projected fiscal and economic benefits do not materialize. - The ballpark lease should contain provisions that state revenues generated using the ballpark should be split between the Rays, city, and county. - The ballpark lease should include provisions that will deter the Rays from relocating. Florida TaxWatch executive VP, CEO, and general counsel Jeff Kottkamp said the group was not drawing to conclusions as to if the proposal was good or bad, but to outline important factors and major risks they believe should be considered to determine if the plan is in the best interest of Tampa Bay area taxpayers. “Concerns presented by Florida TaxWatch include that the deal’s total costs to the city and county would be nearly $2.4 billion, rather than the estimated $600 million, when accounting for actual and opportunity costs, and neither the city nor the county currently has the funds to pay its respective share, which could create a fiscal loss,” the report reads. The Tampa Bay Business Journal provided the following breakdown of costs for the City of St. Petersburg and Pinellas County: City of St. Petersburg — $1.6 billion $704 million: The city’s share of building the new stadium and supporting infrastructure (including interest) $411 million in lost ad valorem (property) taxes from keeping the 22-acre site in the public domain and not allowing private development. $545 million in “lost city revenue from the sale of 64 acres to the Rays’ ownership team at a below-market price of $105 million.” Pinellas County — $809 million $587 million: The county’s share of building the new stadium and supporting infrastructure (including interest) $222 million in lost ad valorem (property) taxes from keeping the 22-acre site in the public domain and not allowing private development. The report does say that the cost-sharing strategy between the Rays and city and county is fair and reasonable. One aspect that Hanewicz has been thinking about is the risks that the projections on tax revenue for the next 30 years may not tell the full story. If projected numbers don’t materialize, the city could be in a bad position. “We’re putting money in the front end, we’re taking out those bonds in the front end, and we’re going to borrow, and we then have to pay interest for 30 years,” Hanewicz said. “The cost of our bonds is going to be between $22 million and $29 million. What is it in the future we’re getting back in cash flows?” Regardless of how development unfolds, the city will be expected to pay back bonds. She expresses hope that when a finalized contract is presented to the council, there will be more detail on final requirements tat will help protect taxpayers and secure steady revenue for the city. The report also pointed to 35 years of research that found little to no tangible impacts of sports teams and facilities on local economic activity. The level of stadium subsidies typically provided to build stadiums “far exceeds observed economic activity”. Though, in some circumstances, there was evidence of “important intangible social benefits.” “At the end of the day, fulfillment of the deal will require hundreds of millions of local taxpayer dollars — which could be used to pay for other needed services and improvements in the community — and therefore, we believe it should receive close and careful scrutiny before a decision is made,” Kottkamp said in a release. The full proposal from Florida TaxWatch can be downloaded here.

Darryl Shaw’s vision for downtown Tampa’s Waterfront, dubbed “Ybor Harbor” has gotten the first approval from Tampa City Council on Thursday. Council has approved a comprehensive plan amendment and rezoning request that will make way for the project. Ybor Harbor will span around 33 acres south of Adamo Drive, east of Channelside Drive, and east on N. 19 th Street on the Ybor Channel. The property was previously pitched to be a site for a new Tampa Bay Rays stadium, however Shaw filed new plans last January that did not include a baseball stadium. Shaw told City Council that he envisions multiple interconnected neighborhoods, and that as Tampa sees a growing population, and demand for goods through Port Tampa Bay increase, he believes the dynamics can coexist. "Ybor Harbor does that in a very thoughtful, material way, and it's not without its nuances and intricacies. It is truly threading the needle," Shaw said. "The maritime community is very significant and active. The population that is moving to Tampa, that exists in Tampa, wants to experience the waterfront. They want to experience walkability and transit-oriented development. They’d like to have the opportunity not to utilize their car. The waterfront will be the crown jewel of the development, which Shaw would like to have open to the public. Shaw has said he will work with Port Tampa Bay to open the waterfront and his plans include 100,000 SF of open space that will include a boardwalk lined with restaurants, retailers, piers, boat slips, floating docks, and green space. In total the development includes: - 500,000 SF of office space - 800 hotel rooms - 150,000 SF of street level retail space - 4,750 residential units, 10% dedicated to affordable housing The project team includes engineering firm Stantec, transportation consultant Randy Coen of Coen & Co., legal representatives Tyler Hudson and Alex Schaler of Gardner Brewer Hudson PA, and arborist Ricky Peterika of Dark Moss. Two placemaking firms have also been hired as consultants on the project – East and Main CEO James Nozar and Of Place, both of whom worked on Water Street. The rezoning request was passed unanimously, and the comprehensive plan amendment passed 6-1, with Lynn Hurtak being the sole “no” vote. A second hearing on the project will be held on May 2. Hurtak and Bill Carlson expressed concern that the development may encroach on maritime land and jobs, but Carlson ultimately voted in favor for both the rezoning and amendment, citing a 2007 rezoning of 26 of 33 acres to make way for the mixed-use development by Clearwater-based Gibraltar Development Corp., whose plans for development fell through during the global financial crisis of 2007-2008. Hurtak emphasized her desire for a fire station to be included in the rezoning request for the Ybor Harbor and Gasworx area. With the addition of over 9,000 units between the Channel district and Ybor City upon completion, she expressed concern about the lack of infrastructure planning to accommodate such growth. Hurtak pointed out that while large-scale developments continue to emerge, essential infrastructure needs are being overlooked, with no apparent contribution from these developments to address the city's pressing requirements.

The Sugar Hill Group that wants to redevelop the city-owned Tangerine Plaza shopping center has released their third iteration of plans since they won the bid for the project nearly four and a half years ago. They were first selected by former Mayor Rick Kriseman for the project. Tangerine Plaza was formerly home to a Walmart Neighborhood Market that closed back in 2017. The plaza is on the 1700 block f 22 nd Street S in South St. Petersburg. New plans unveiled on Tuesday include a 10,000+ SF grocery store and 115 units of affordable housing. Roy Binger and Rev. Louis Murphy of Sugar Hill held a press conference on Tuesday to drum up community support prior to their pitch in front of city council which can be expected in the next few weeks. Sugar Hill announced that they have secured a partnership with New Urban Development, the real estate development affiliate of the Urban League of Greater Miami. New Urban Development has delivered over 1,300 affordable housing units through various partnerships and has over 1,500 units in its “current and active pipeline” per the company website. Binger and Murphy, both say it is crucial for the team to receive site control to move forward with securing a grocer for the space. The area was declared a food desert after Walmart closed in 2017. Murphy says they are in negotiations with several grocers for the space, but declined to name them until agreements are finalized. He says the area has many issues, and they want to find a tenant who wants to come to the community. Binger says they are leaning on New Urban Development to finance the affordable housing units, and also mentioned Community Redevelopment Area funds and local and state housing funding could support the project. He mentions site control will be needed before they can assemble a package for the units. Mayor Ken Welch has voiced support for Sugar Hill, but some city Council members have expressed concerns as to how long the project has taken to get started and doubt over whether a 10,000 SF space could secure a long-term grocery tenant. “What we really need you to do is to call city council folk,” Murphy said. “There’s a few on city council that don’t want us to be here, truth be told, but we know we’re going to be here because we believe this is something that is divinely given, and certainly this vision will feature the future of our community.”

BayCare Health Systems has revealed construction plans for a new $548 million hospital – the first one for the Health System in Manatee County. The facility will have 154-beds and is planned to be on Moccasin Wallow Road, a growing area north of the intersection of I-75 and I-275, making it accessible to residents in southern Pinellas County. BayCare Hospital Manatee will have an emergency room and facilities for orthopedic and specialty surgery, urology, gastroenterology, cardiology, diagnostic and interventional imaging, obstetrics, and neonatology according to a press release. Additionally, there will be a 45,000 SF building with outpatient services and offices for physicians. Construction is slated to begin in October. “At BayCare, our mission is to serve the community’s health and we are so excited to be deepening our commitment to the residents of Manatee County,” said Stephanie Conners, BayCare president and CEO in a statement. “As West Central Florida continues to grow and thrive, we are committed to investing in our communities to bringing high-quality and compassionate care closer to our communities.” The new hospital will be the first in Manatee County built north of the Manatee River, an area that has been seeing lots of development in the past two decades. It will also be the first non-profit owned hospital in the county. BayCare says the hospital shows signs of commitment of the Health Care System to meet the needs of fast-growing communities in and around Tampa Bay. Source: TBT Thank you for your interest. If you need Appraisal & Valuation services in the Sarasota-Manatee area, contact: Mike Cliggitt, MAI, MRICS, CCIM 813.405.1705 - Direct Line findvalue@cliggitt.com

Fort Lauderdale-based BBX Logistics Properties and Jacksonville-based FRP Development have formed a partnership to build a new 213,500 square-foot industrial park off Interstate 4 in Lakeland. The industrial park will be located on 22.5 acres of land at 8255 State Road 33 N., north of the interstate and close to an Amazon facility. The land was purchased for $2.8 million last month to an LLC that shares an address with BBX. Previously, it was purchased in 2008 for $1.35 million. The deed shows that the sale included 5 parcels, as well as a portion of a sixth. Business Observer Florida is reporting that the parcel with the address of 8255 N State Road 33 will contain the industrial park. A copy of the deed can be downloaded here. A news release for the park did not provide many details but described the project as a “state-of-the-art logistic” facility. A spokesperson has said the estimated development cost for the project is around $25 million. Despite the vast expansion of industrial areas along the I-4 corridor connecting Tampa and Orlando, a report from CBRE in October revealed that East Polk County saw the delivery of 897,000 square feet of industrial space in the third quarter. However, the construction pipeline remained largely stagnant, with only one 80,000 square foot rear load building breaking ground. CBRE is set to handle leasing for the project once it is completed. BBX Logistics is a division of BBX Capital Real Estate and was founded in 2021. The company has described itself as specializing in “high-barrier, infill locations with direct proximity to ample labor pools, highways, port and airport infrastructure, and densely populated areas.” FRP Development has offices in Jacksonville, FL and just outside of Baltimore, Maryland. FRP’s website says the company specializes in “investment, development, management and disposition of mining, industrial, office, flex, mixed-use and residential real-estate along the Eastern Seaboard of the United States.” Source: Business Observer