I received an email recently from a resident outside of my district who is against the Maritime Park. Always has been and always will be. While I am NOT happy as many with how long this project has taken and how little we are getting for the money, I believe we need this project to move forward. It does bring jobs. It will bring new business to downtown. Let me address the issues the citizen proposed and offer some additional thoughts. (Editorial Note I have edited the Citizens comments but have tried to capture the issue.)
Citizen:
The Master Developer says that we should start the project and that he will get the funds from the US Government. From what I understand, that is 14,000,000 dollars. My question is who funds this development if he fails?
Response:
The MD is planning on using his lobbying firm in January to start that process. If he is unsuccessful in obtaining the funds, obviously that will reduce the planned scope of the initial project. I believe it is essential to move forward with remediation, clearing and prepping the land NO MATTER WHAT. Of the $40 million, it appears that $25 million will be required just to remediate, clear, and turn the site into a green space (no buildings at all). Every single person I have ever met on this issue wants SOMETHING on this site. Some a park only, some a stadium. So regardless of your beliefs as to what, the $25 million is a sunk cost. So take it off the table. We ALL want something more than 23 acres of weeds and thats the cost, period! If we dont get the money, there are many alternatives that cost the taxpayers of Pensacola NOTHING MORE.
Citizen:
The Maritime Museum is from what I understand around $9,000,000 underfunded and the State is several billion in the red. The legislature will be meeting in January to determine what needs to be cut in order to balance, I am assuming non-essential projects like this could top the list. Furthermore, when the park plan was first presented the Museum was a "Must" before anything else, however, that is not how it is sounding now. What changed?
Response:
The Maritime Museum is a must for me even ahead of the stadium. The funding for it is a match between the State and private donors. From all I have heard the private portion is close to securing its half. I believe the State will continue to match investments of private donors, as it is a great leverage of tax payer funds (otherwise, many projects fall 100% on the State...a worse option). If there is anything I am sure of in this project is that Nancy Fetterman will stand in the doorway of the John H. Fetterman Museum and cut the ribbon. The lady does not know how to fail. I will do anything I can to help this aspect of the park succeed.
Citizen:
The original plan for the Maritime Park was for a commercial development at a much larger scale than the current plan. The commercial developments leases were to help pay for the park. In the current Master Development Agreement these developments will not be until some later phase for which there is no guarantee that they must be built. With that being said, the business model for profitability has changed and the park will make less money. Therefore, who will be responsible for the deficits from the reduced leases? My obvious concern is without a viable anchor, there will be nothing to draw visitors to the park on a daily basis, but only on days of games and other usage throughout the year.
Response:
The private development is unknown at this time. Would you sign a lease or commit to a project that has taken over 2 years to get to the STARTING LINE. The only private development commitment to date is the $12,000,000 Studer office building 100% funded by Studer. This is a significant commitment that many people conveniently forget in addition to the stadium lease, the $2.25 million to the museum, the $1,250,000 committment to the CMPA over 5 years. As the project progresses, the private development will come. I know of a 100 room hotel project interested in the site that already has preliminary financials done and a flag identified. I can't help but chuckle that the people that want the site to remain a vast $25 million open space with picnic tables 100% cared for by City Parks and Recreation on the public dollar are all the sudden concerned that we don't have enough private development. BTW private development is funded by private dollars just to be clear.
Citizen
The Baseball Stadium / Multi-Use stadium is by far the most controversial part of the park. Everywhere and everyone that I talk to expresses the least support for this park feature. Mr. Studer's lease is for him to pay 175,000 per year for the stadium which amounts to 1.2% of the overall cost of the stadium alone. That barely pays 25% of the interest on the note and that is before anyone ever turns on a light, pays for insurance or maintenance at the stadium. We hear that the stadium will compete with the Wharf, however, the Wharf has 10,000 seats and ample parking. The Maritime Baseball Stadium has 3500 seats and 300 parking places with the nearest parking 2500 feet away. Furthermore, if you were a manager for an artist, where would you play, 10,000 seats or 3500 -- it is pure scale of economics. Also, other uses for the stadium such as local baseball, etc could never cover the lease payments that would make this a viable entity.
Response:
The stadium is the draw to bring people downtown in large numbers. I'm encouraged even more that Dr. Bense and UWF are now considering football. The stadium will eliminate the need for the University to pay for a stadium and will accomodate football and seat at lease 8,000 people for it. (see the design criteria) The stadium will seat more than 3,500 for concerts when the field is considered. It will compete with the Wharf and be the middle ground between the Saenger and the civic center. Managers don't chose venues. Private promoters pay acts to show up and play whether for $1 or $100,000. They then charge admission. Would you rather go hear a concert on the bay in an urban environment or by a ditch. With a hotel adjacent to the stadium, high school, college and recreational tournaments in many sports will also be attracted in addition to festivals and community activities. Movie nights also are popular in similar parks. Once again there are many additional funding possibilities that cost the citizens of Pensacola nothing extra.
Citizen
It is widely known that the Park is being paid for using CRA funds. However, we are facing a housing and real estate correction or collapse. What risks are there to the funds generated by the CRA. What I am saying is the CRA is based on the tax amount above a certain level. But, if property values drop below that level then the funds of course will dry up as well. What then?
Response:
In no way do I see CRA values falling to a point where this project is outside its capacity to cover. Simple math.
Citizen
My largest concern is that when advertised the CMP developed what has come to be known by many as "The Fantasy Renderings" which are the artist concept of the park. The current plan shows a great lawn and the stadium and parking. I can still remember the drawings with the kids eating ice cream on the boardwalk along a waterfront maritime exhibit with the Maritime Museum at the end of the boardwalk in the background. The next drawing I saw was people shopping in what looked like 4 story buildings with a road which looked like Palafox street. No waterfront dining or shopping and now the latest has nothing in it.
Response:
The private development depicted is not included in what the CMPA is paying for. The current drawings show just what has been committed to by the master developer. Other features are not cancelled, just funding has not been identified to date.
Please keep the comments coming. My priority in 2009 is cleaning, clearing and preping the site while we watch closely how the master developer performs. I will make sure the peoples money is not at risk and that we get what we are paying for as promised.