News
TARPON SPRINGS — City commissioners decided this week to charge a developer the previously contracted price to buy land next door to Helen Ellis Memorial Hospital, even though the developer showed up with a new appraisal that sets the land's value at almost $200,000 less.
The decision means plans for a new medical office building and parking lot — and a citywide referendum — can proceed after a long delay.
In 2007, the city agreed to sell two pieces of public land beside the hospital to developer AG Armstrong.
The agreed-upon price for a 7.2-acre piece was $570,000, and a smaller 1.6-acre parcel would go for $45,000.
AG Armstrong planned a phased, mixed-use development called Meres Crossing that would include retail shops, apartments, an assisted-living facility, a parking garage and a medical office building on 16 acres along Alt. U.S. 19 north of the hospital.
The developer needed the city's two parcels, along with a third 0.62-acre piece owned by the hospital foundation, to complete the medical building and parking garage.
While the shops and a Sweetbay supermarket have opened, the souring economy and other factors kept the city land sales and remainder of the project from proceeding.
The developer — CRP II-Tarpon Springs, successor to AG Armstrong — wants to move ahead now with a scaled-down medical building of 60,000 square feet and a surface parking lot rather than a garage. On Tuesday, city commissioners were preparing to approve resolutions immediately authorizing the land sales, when they were presented with a new appraisal.
That appraisal placed the value of the 7.2-acre parcel at $370,000 — $200,000 less than the price agreed on in 2007 — and raised the value of the 1.6-acre parcel to $50,000, which is $5,000 more than the 2007 contract price.
According to CRP II, the 7.2-acre value changed, in part, because of a mistake made on the 2007 appraisal. But if the developer was looking for a fire sale price Thursday night, he didn't get it.
After some awkward back-and-forth between the developer and commissioners, during which commissioners were clearly irritated about being handed the new appraisal so late, city leaders refused to haggle.
"You can't sit here after all these years and then at the last minute try to lower the price," said City Manager Blaine LeCouris.
In the end the City Commission unanimously approved resolutions to sell the 7.2-acre parcel for the original $570,000 price, and the 1.6-acre piece for the $50,000 shown in the new appraisal. The city charter prevents the commission from selling city land for less than its appraised value.
Although the developer asked for an opportunity to justify a price change, "As far as I'm concerned, we have a deal," Mayor David Archie said Friday.
The commission also approved ballot language for a city referendum Jan. 31 on the sale of the hospital foundation's 0.62-acre parcel to CRP II. Voters approved that sale several years ago, but the ballot question then mentioned the developer's plan to build a parking garage next door to the hospital. Now that the developer plans to build only a surface parking lot, another referendum is required.
If voters approve the sale, CRP II will pay the hospital $500,000 for the parcel and also improve the existing parking lot at Helen Ellis.
Diane Steinle can be reached at dsteinle@sptimes.com or (727) 445-4184.
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