by J. Brooks Terry
Staff Writer
The City Council may take emergency action next week authorizing the City to transfer ownership of three historic buildings downtown to the Police and Fire Pension Fund.
Council auditors said the Fund wants to get the Bisbee, Marble Bank and Florida Life buildings on their books before the end of the fiscal year.
In exchange, Fund administrator John Keane said the building’s estimated $3 million value will count toward the City’s future pension fund contributions and ultimately “reduce its long-term debt.”
The Council’s Finance and Recreation & Community Development committees unanimously supported the deal this week, but not without expressing concerns about the building’s future use and who would pay to renovate them.
“We’d like to see the buildings restored,” said Council auditor Richard Wallace, “but history tells us that to return buildings like these to their original condition is a very, very expensive endeavor.”
The Fund previously announced plans to convert the buildings for mixed-use residential purposes.
“Looking at the Roosevelt Hotel, the City put about $17 million into a building that when it’s finished will be worth about $9 million,” said Wallace. “That’s the kind of thing we need to consider.”
The Fund’s Richard Cohee admitted redevelopment efforts would be costly, but the Fund was open to discussing different financing options, including a matching program.
“Ideally, we would take a two-phase approach to this,” Cohee told the Council. “After we remove hazardous materials and move into our preliminary construction, that’s when we would begin looking for City appropriations.”
Cohee didn’t mention a specific dollar amount.
Council members were still concerned the buildings may be too expensive to restore.
“The biggest concern I believe we have is the overall cost of this project,” said Sharon Copeland. “We don’t know what we’re getting into, what we’re creating, and this may turn out to be a bottomless pit. Obviously we want to avoid something like that.”
Temporarily quelling those fears is an out-clause available to both parties. If, by December 2005, the City and the Fund are unable to agree on an incentive package, either side can terminate the deal.
“That option provides everyone involved a little more security,” said Copeland. “It will also help us determine if those buildings are in fact a good investment. Within 15 months we’ll know if this project can create a return on our investment or that it is simply too cost prohibitive for anyone to pursue.”