Katie Cole, an attorney representing Gotham and DeNunzio, said the city had not shared the consultants’ draft findings as of Monday so she could not answer whether the team would be amenable to the counter offer. If the developers reduce expensive underground parking or move some offsite, they could bring back the 500 units, the consultants said. They said a revised contract should require the developers to assume all future risk and cover any cost overruns without being able to ask the city for more money. HR&A said its estimates for operating expenses were lower than what Gotham projected, meaning the extra $4 million in city subsidy the developers requested could be reduced.īut the developers may have also underestimated construction costs, the consultants said, meaning any savings could be negated by increases in what it takes to build the apartments.
The developers’ revised terms would result in the city making between $3.8 million and $8.2 million a decade out after having to pay $22 million in subsidy upfront, according to the memo. Under the original deal, Clearwater would have received north of $24 million over 30 years from the sale of the land and tax revenue after accounting for incentives it would pay, according to HR&A. 25, HR&A recommends that Clearwater make a counter offer to bring back some apartment units while also adding safeguards to protect the city’s interests. Instead of building two 27-story towers with at least 500 apartments on the old City Hall site on Osceola Avenue, the developers in April proposed one tower with 400 units while asking for $4 million more in public subsidy.
The original concept pitched last summer by Gotham Organization of New York and The DeNunzio Group of Pinellas County is no longer feasible due to borrowing and insurance costs that skyrocketed, the developers say. The firm’s final recommendation is expected soon. Their preliminary analysis is in, according to a new memo obtained by the Tampa Bay Times through a public records request.Ĭonsultants from HR&A Advisors say Clearwater officials should consider reducing the city’s risk on the project, which now would require a larger up-front public investment for less in return. Earlier this year, when developers asked to scale down a voter-approved plan to build apartments on the downtown bluff, the city hired outside experts to study whether it would still be a good deal for Clearwater.
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