Thursday, August 31, 2006

Parking Garage Plan Put in Drive

Winter Haven votes to assume contracts to purchase downtown property.

By JOY COCHRAN
The Ledger

WINTER HAVEN -- For years, merchants and shoppers have complained about the lack of convenient parking downtown.

The days of hearing those complaints may soon end.

City officials have taken initial steps toward the purchase of property along a block of Central Avenue with plans to build a two-story parking garage with a minimum of 200 parking spaces.

"This is a huge step forward for Winter Haven investing in downtown," City Commissioner Jeff Potter said at Monday's commission meeting when the plan was announced. "It shows our commitment to downtown."

Ronni Wood, director of Main Street Winter Haven, agreed.

"If the city and Main Street do everything to revitalize downtown, the parking garage is essential," Wood said. "We're very pleased with the progress of the revitalization effort and the community's shared vision."

The total cost of buying the land and constructing the parking facility will not be known until all the land is purchased and a final design is approved for the structure.

"This is a very preliminary step to bringing a parking facility to fruition," City Manager David Greene said. "We need to put funding in place."

Initial designs for a parking facility include retail and office space along the street level. That space would be leased once the facility is constructed.

Two properties adjacent to the Ritz Theatre that are involved in the deal are owned by C Brown 2 LLC and ZAB Inc. Buildings on the properties are occupied by the Social Security office, Delta Mortgage Group and Real Estate Title Inc.

Commissioners unanimously approved the city assuming contracts held by the 6/10 Corp. of Winter Haven to purchase the property for $2.54 million, plus all costs associated with the due diligence on each property. The cost for the Brown property is $1.44 million and the ZAB property is $1.1 million.

Acquisition of a third property, owned by Bhola Ramkhalawan that has been vacant after a fire several years ago, is crucial to construction of the parking facility, Greene told commissioners. "There has been no communication with the property owner yet," said Pete Chichetto, strategic initiatives director.

The city is planning to pay for the project through bonds and federal grants.

For the bonds, the city is conducting a debt feasibility study to determine how much can be borrowed for this and other capital improvement projects. The study is expected to be completed within 45 days.

"The (property) purchase can be funded initially through an internal borrowing from the water and sewer fund, as well as the rents that can be expected from the various tenants," Chichetto wrote in the City Commission fact sheet. "The Community Redevelopment Agency will pay the debt payments as part of a long-term public improvement bond."

A CRA allows the city to use tax increment financing to produce revenue to renovate deteriorating areas. Under that system, property values are frozen for the purpose of city and county taxes. When the value of property rises in the district, revenue representing the difference between the frozen values and the new values goes to the CRA.

And city officials hope part of the funding will come from federal sources.

The city applied for $6 million in federal transportation funds last year. They received only $247,000. That money is being applied to the expansion of the Third Street streetscape project, Chichetto said.

Owning the site should count in the city's favor when federal funding is sought for the parking garage, Greene said.

"That should further strengthen our application," he said.

Once the city acquires all the property, current leases will be transferred to the city, according to the fact sheet.

"We may look into terminating the leases early," Greene said, "or it may be best to let them run."

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