NO business case has been advanced as to why the County would sell its Convention Center.
NONE of the five all-Republican County Commissioners asked questions or discussed my concerns, reported in the St. Augustine Record and Times-Union.
Ask questions.
Demand answers.
Expect democracy.
Enough corporate welfare.
By Jake Martin
Posted Jun 22, 2018 at 9:12 PM
Updated Jun 22, 2018 at 9:12 PM
St. Augustine Record
St. Johns County commissioners on Tuesday voted unanimously in favor of entering into negotiations for the potential sale of the St. Johns County Convention Center at World Golf Village. A deal would pave the way for Atrium Hospitality to make extensive improvements to the property.
As part of an improvement plan necessary to secure another 20-year license agreement for the Renaissance Hotel from Marriott, Atrium is seeking to acquire a fee simple interest in the parcel underlying the hotel and convention center, as well as the convention center building itself.
The county owns most of the 10-plus acres on which the hotel and convention center sit, with the exception of some easements in the parking area, as well as the convention center itself. Atrium already owns and operates the hotel.
Atrium’s plan includes a capital investment of about $18 million to $20 million to renovate the hotel by adding resort-style amenities, water features, food and beverage facilities and a spa.
The company maintains that the influx of capital is necessary to ensure the long range viability of the hotel and that the capital investment is not viable without its acquisition of the fee simple interest in the property.
A sale of the land and convention center building would also include termination of the current operating agreement for the center.
Commissioners signed off on spending up to $50,000 out of General Fund reserves to complete a preliminary appraisal of the land, improvements, air rights and other real and personal property interests in order to facilitate the negotiations. A final purchase and sale agreement will come back to the board for consideration following those negotiations.
The current Renaissance license agreement with Marriott terminates July 31, 2020.
Atrium informed the county in an April 18 letter that the loss of the Renaissance brand would have “considerable impact on property performance and valuation” for the hotel and surrounding properties.
The company forecasts a reduction in total revenues of over 45 percent in 2020, increasing to over 53 percent in 2021 and beyond, if the hotel must operate as an independent property without the Renaissance brand.
Gail Oliver, the county’s land management systems director, told commissioners that the county, during the planning phase of World Golf Village in the early 1990s, had identified a need for a public convention center “to promote economic growth and development.”
In 1996, the developers of World Golf Village and the hotelier preceding Atrium worked with the county to build the convention center, which was funded by the county through a $16.9 million bond. A current balance of about $4.2 million will be paid off in December 2020.
Atrium proposes entering into a purchase and sale agreement to be executed at the maturity of the bond. This would include a $1 million purchase price for the hotel and convention center land and a to-be-determined price for the convention center.
Oliver said determining the value of the property will be a “complex undertaking” requiring a multi-phase approach. She said an appraiser will have to consider operations, review income and expenses, look at comparisons, and look at cost of construction and appreciation of the building.
Resident Ed Slavin said the whole arrangement sounded to him like “corporate welfare on the front and corporate welfare on the back end” and that he hadn’t heard a good policy reason for the county to let go of the property.
″[The hoteliers] should have paid for it in the first place but we did, it’s ours, we own it,” he said.
There was no discussion among commissioners regarding pros or cons of selling the property.
Sea level rise
Commissioners also approved transmittal of six Comprehensive Plan amendments necessary to put the county in compliance with Florida Statutes requiring that such plans address “development and redevelopment principles, strategies, and engineering solutions that reduce the flood risk in coastal areas which result from high-tide events, storm surge, flash floods, stormwater runoff, and the related impacts of sea-level rise.”
Jan Brewer, the county’s environmental division manager, told commissioners some changes reflect actions the county has already been taking while others address areas where the county has had some issues related to coastal areas and low-lying areas along the St. Johns River.
Among the changes are restrictions or limitations the county shall put on certain activities in high-risk coastal zones.
For example: “When considering new development, redevelopment and requests for increased density the County may consider the implications of potential rise in sea level and the hazards of developing seaward of the Coastal Construction Control Line.”
Boat ramps
During closing comments, Commissioner Paul Waldron secured consensus from fellow commissioners to have staff look into some possibilities to provide more public boat ramps.
He said he’s heard a lot of public outcry about the need to expand existing ramps or look for new ramp locations.
He said having 14,000-plus registered boaters but parking for only a fraction of that number if they show up at any of the existing ramps is a recipe for disappointment.
Commission Chair Henry Dean agreed.
“One of the most outstanding things about St. Johns County are our waterways, and recreational and commercial fishing, and boating,” he said. “And here we are with all these registered licensed boats, and very few places to get them in and out of the water, and very few parking spots. I think it should be a very high priority.”
Commissioner Jeb Smith said he was also on board if the county can get grant dollars to construct the ramps and maintain them with user fees.
Comment
Edward Adelbert Slavin
21 hours ago
This is so wrong. Watch item 12 on video here: http://stjohnscountyfl.swagit.com/play/06192018-625
By Jake Martin
Posted Jun 23, 2018 at 6:19 PM
Updated Jun 23, 2018 at 6:19 PM
Jacksonville Florida Times-Union
St. Johns County commissioners last week voted unanimously in favor of entering into negotiations for the potential sale of the St. Johns County Convention Center at World Golf Village. A deal would pave the way for Atrium Hospitality to make extensive improvements to the property.
As part of an improvement plan necessary to secure another 20-year license agreement for the Renaissance Hotel from Marriott, Atrium is seeking to acquire a fee simple interest in the parcel underlying the hotel and convention center, as well as the convention center building itself.
The county owns most of the 10-plus acres on which the hotel and convention center sit, with the exception of some easements in the parking area, as well as the convention center itself. Atrium already owns and operates the hotel.
Atrium’s plan includes a capital investment of about $18 million to $20 million to renovate the hotel by adding resort-style amenities, water features, food and beverage facilities and a spa.
The company maintains that the influx of capital is necessary to ensure the long range viability of the hotel and that the capital investment is not viable without its acquisition of the fee simple interest in the property.
A sale of the land and convention center building would also include termination of the current operating agreement for the center.
Commissioners signed off on spending up to $50,000 out of General Fund reserves to complete a preliminary appraisal of the land, improvements, air rights and other real and personal property interests in order to facilitate the negotiations. A final purchase and sale agreement will come back to the board for consideration following those negotiations.
The current Renaissance license agreement with Marriott terminates July 31, 2020.
Atrium informed the county in an April 18 letter that the loss of the Renaissance brand would have “considerable impact on property performance and valuation” for the hotel and surrounding properties.
The company forecasts a reduction in total revenues of over 45 percent in 2020, increasing to over 53 percent in 2021 and beyond, if the hotel must operate as an independent property without the Renaissance brand.
Gail Oliver, the county’s land management systems director, told commissioners that the county, during the planning phase of World Golf Village in the early 1990s, had identified a need for a public convention center “to promote economic growth and development.”
In 1996 the developers of World Golf Village and the hotelier preceding Atrium worked with the county to build the convention center, which was funded by the county through a $16.9 million bond. A current balance of about $4.2 million will be paid off in December 2020.
Atrium proposes entering into a purchase and sale agreement to be executed at the maturity of the bond. This would include a $1 million purchase price for the hotel and convention center land and a to-be-determined price for the convention center.
Oliver said determining the value of the property will be a “complex undertaking” requiring a multi-phase approach. She said an appraiser will have to consider operations, review income and expenses, look at comparisons, and look at cost of construction and appreciation of the building.
Resident Ed Slavin said the whole arrangement sounded to him like “corporate welfare on the front and corporate welfare on the back end” and that he hadn’t heard a good policy reason for the county to let go of the property.
″[The hoteliers] should have paid for it in the first place but we did, it’s ours, we own it,” he said.
There was no discussion among commissioners regarding pros or cons of selling the property.
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