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[4. COMMENTS FROM THE PUBLIC Any person who wishes to comment may be heard at this time. Please limit your comments to three (3) minutes or less, as directed by the Mayor, as this section of the Agenda is limited to thirty minutes. The City Commission will not be able to take any official actions under Comments from the Public. Speakers will address the Mayor, Commissioners, and the Public with respect. Inappropriate language will not be tolerated.]
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>> ANYONE WISHING TO ADDRESS THE COMMISSION.
PLEASE COME FORWARD. >> CHARLIE HAYEK, [ADDRESS].
>> MADAM MAYOR, MEMBERS OF THE DAIS.
THIS COULD POSSIBLY BE THE MOST IMPORTANT MEALING WE HAVE EVER HAD AFFECTING TO YOUR DOWNTOWN AREA AND WE HAVE WAIT SO LONG FOR THIS TO HAPPEN. AND THIS VOTE IS VERY IMPORTANT.
EVER SINCE WE CAME TO FORT PIERCE OVER 25 YEARS AGO LIVING HERE FULL-TIME, THE ONE MAIN COMMENT WE HEARD WAS FORT PIERCE IS A WONDERFUL PLACE BUT IT COULD USE A NICE HOTEL DOWNTOWN.
WE ARE ON THE CUSP OF THAT NOW. THE MOST OF YOU COMMISSIONERS HAVE NOT BEEN PART OF THIS WHOLE PROCESS BECAUSE IT HAS GONE OVER 7 YEARS. SO I'M GOING TO BRING YOU UP TO SPEED ON WHAT HAS TRANSPIRED SO CAN YOU KNOW WHY IT'S TAKEN THIS LONG. FIRST, THE DEVELOPER WAS PROMISED A FREE AND CLEAR TITLE. IT WAS A SUBMERGED LAND LEASE THAT HAD TO BE CLEARED UP. SO, THAT TOOK A PERIOD OF TIME.
SECONDLY THE CITY WAS RESPONSIBLE FOR THE REMOVAL OF ALL DEBRIS THAT WAS ON THAT SITE.
THEY DID NOT DO IT, SO THE DEVELOPER DID IT.
IT TOOK THEM ABOUT A YEAR AND $1.5 MILLION TO CLEAN THAT SITE SO IT WAS READY FOR CONSTRUCTION.
COVID STRUCK ABOUT THE SAME TIME.
PEOPLE COULD NOT WORK. THE COST OF MATERIALS AND LABOR SKYROCKETED. SO, THAT AFFECTED A LOT OF THINGS. EVERY TIME THERE WAS A CHANGE IN THE PLANS, NOT ONLY DID IT HAVE TO GO TO THE COMMISSION FOR APPROVAL BUT IT HAD TO GO TO THE HISTORICAL PRESERVATION BOARD.
THAT WAS A PROCESS THAT TOOK TIME.
AND THERE WAS A NUMBER OF CHANGES.
I KNOW BECAUSE I SERVED ON THE HISTORICAL PRESERVATION BOARD.
AND THEN IT BECAME THE OPPORTUNITY FOR MARRIOTT TO HAVE A HOTEL AND EVERYTHING STOPPED. THE DEVELOPERS WENT AFTER MARRIOTT BUT THEY HAD THEIR OWN DESIGN FOR A HOTEL SO THAT PROCESS HAD TO START OVER AGAIN AND WE WOULD BE DELIGHTED TO HAVE MARRIOTT HERE. ALSO, PART OF WHAT THE CITY BENEFITED FROM WAS THE GRANT THAT WE GOT FROM THE STATE TO DO TALL THE ROAD WORK ON INDIA RIVER DRIVE AND THE BRIDGE AND EVERYTHING ELSE SO THAT WAS A BENEFIT THAT KINGS LANDING AND COMMISSIONER SADOWSKI, YOU REPORTED IN THE PAPER IT'S TIME TO TAKE THE PROPERTY BACK AND MOVE ON BUT I WISH YOU WOULD RECONSIDER THAT COMMENT AS YOU LOOK A WHAT'S GOING ON.
SIX MONTHS IS NOT THAT LONG WHEN YOU'RE LOOKING AT POSSIBLY GOING TEN YEARS WITH NOTHING ON THAT SITE.
>> MR. HAYEK, I'M SORRY. YOUR TIME IS UP.
>> APPRECIATE YOUR VOTE. >> THANK YOU VERY MUCH.
>> GOOD EVENING. MY NAME IS HOWARD DUNN, JR., [INDISTINCT] MARKET AVENUE, I'M A STEP PARTICULAR ENGINEER FOR FORT PIERCE COUNTY. I'M HERE TO DISCUSS KING'S LANDLORD. IF YOU DON'T KNOW ABOUT NOW WE
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ALMOST LOST THE PROPERTY BECAUSE THEY WERE THREE YEARS BEHIND IN PROPERTY TAXES. THEY JUST PAID THEM BACK IN MARCH. THEY CAN'T SEEM TO COME UP WITH THE HUNDRED THOUSAND DOLLARS A YEAR FOR THE PROPERTY TAXES BUT ARE WHINING ABOUT $15 MILLION. IT'S TIME TO KICK THEM TO THE CURB. IF IT'S ONE OF US WE HAVE BEEN KICKED TO THE CURB SIX MONTHS AGO.WE NEED TO DO NOTHING. WE DON'T NEED ANOTHER CRABBY'S.
IF YOU DON'T DO ANYTHING THE PROPERTY CAN SIT FOR EIGHT YEARS. I WOULD LOVE TO INHERIT THE PARKING SPOT THERE BUT IT'S TIME TO MOVE ON, THE CUT THE LOSSES, WE KEEP LOSING AND LIKE I SAID, WE NEED TO DO SOMETHING BESIDES THEY CAN'T PAY TAXES, [INDISTINCT].
>> ANYONE ELSE WISH TO GO ADDRESS?
>> GOOD, MADAM MAYOR COMMISSIONERS.
MY NAME IS JAMIE HEARST. I'M A FLORIDA NATIVE AND LIVED IN FORT PIERCE OVER 25 YEARS. I UNDERSTAND THE FRUSTRATIONS SURROUNDING THE DELAYS WITH KING'S LANDLORD.
I KNOW THERE'S BEEN PLENTY OF BLAME PLACED ON LIVE OAK AUDUBON AND MAIN SAIL BUT TONIGHT I WOULD LIKE TO ASK WE TAKE A MOMENT TO LOOK AT THE BIGGER PICTURE AND DURING THAT SAME PERIOD, OUR CITY HAS EXPERIENCED SIGNIFICANT TRANSITIONS, CHANGES IN OUR CITY MANAGER, POLICE LEADERSHIP, VACANCY ON OUR COMMISSION AND CHANGES WITHIN THE LEGAL LEADERSHIP AND DEPARTMENT. I'M NOT SAYING THOSE THINGS CAUSE THE DELAY. AND I'M CERTAINLY NOT CRITICIZING THE INDIVIDUALS INVOLVED.
MY POINT IS THAT THIS HAS BEEN A COMPLICATED PERIOD FOR EVERYONE INVOLVED INCLUDING THE CITY, AND THE RESIDENTS OF FORT PIERCE.
WE ALSO HAVE TO RECOGNIZE THAT WHEN MAJOR WATERFRONT PROPERTIES GOAD WRONG, THE ALTERNATIVE ISN'T ALWAYS SIMPLY, LET'S START OVER. LOOK AT FISHERMAN'S WHAUF.
WHAT BEGAN YEARS AGO IS TIED UP IN LITIGATION THAT WILL PROBABLY GO ON FOR YEARS SO TONIGHT I'M ASKING, LET'S LISTEN TO WHAT THEY HAVE TO SAY. SIX MONTHS IS NOT THAT LONG BASED ON WHAT WE HAVE HAD TODAY DEAL WITH THE I ITS THE CONCERN ABOUT THE FUNDING GAP AND I CONTINUE BELIEVED LIVE OAK SHOULD RECEIVE UNLIMITED TIME BUT I DO BELIEVE THAT SIX SMOS A REASONABLE, FINAL OPPORTUNITY. GIVEAWAY THEM A FIRM DEADLINE, GIVE THEM CLEAR EXPECTATIONS, HAVE THEM CONTINUE TO PROVIDE WITH US UPDATES AND THEN HOLD THEM ACCOUNTABLE.
IF THEY CAN SECURE THE PRIVATE FINANCING AND MOVE FORWARD, FORT PIERCE GETS THE BENEFIT OF FINALLY SEEING THIS IMPORTANT WATERFRONT PROPERTY DEVELOPED. IF THEY ARE UNABLE TO SECURE THE FINANCING WITHIN THAT TIME PERIOD, THEN THE CITY WILL KNOW THAT IT CAN TAKE WHATEVER ACTION IT BELIEVES IS APPROPRIATE AT THAT TIME. MY CONCERN IS THAT TERMINATING THE AGREEMENT TONIGHT COULD LEAVE US WITH SOMETHING MOCH WORSE, A VACANT PROPERTY, A NEAR RANDOM NEGOTIATION AND POTENTIALLY YEARS OF LITIGATION AND UNCERTAINTY.
WE HAVE WAITED THIS LONG. I BELIEVE FORT PIERCE DESERVES ONE FINAL CLEARLY DEFINED OPPORTUNITY TO GET IS KING'S LANDLORD ACROSS THE FINISH LINE. RATHER THAN RISK HAVING ONE OF OUR MOST VALUABLE WATERFRONT PROPERTIES TIED UP FOR YEARS IN THE FUTURE SO IS PLEASE LISTEN TO WHAT THEY HAVE TO SAY AND THINK ABOUT GRANTING THEM THIS TIME.
THANK YOU FOR YOUR TIME AND CONSIDERATION.
ANYONE ELSE? >> MY NAME IS [INDISTINCT] RICKSTER [INDISTINCT] IN LAND DOOR I'M WITH RMB HOMES VILLA SECTION OF KING'S LANDLORD. WE JUMPED INTO THE PROJECT ASSUMING THAT THE HOTEL WOULD START GOING UP, I THINK IN JANUARY OF NEXT YEAR, 2027. WHICH IS OBVIOUSLY NOT GOING TO HAPPEN. AT THE SAME TIME, FOR US AS THE DEVELOPER IT'S REALLY IMPORTANT TO HAVE THAT VISION IN PLACE, TO TELL OUR CURRENT BEARS AND OUR PROSPECTIVE BUYERS THAT THERE WILL BE SOMETHING THAT WILL BE A MARRIOTT HOTEL THAT WILL BE A CONDO AS OPENED TO PULLING THE PLUG ON THE PROJECT AND TELLING ME WE DON'T KNOW IT MAY BE YEARS BEFORE WE FIND OUT WHAT'S GOING TO HAPPEN SO SIMILAR TO THE SPEAKERS BEFORE I WOULD JUST ASK YOU ALL TO LISTEN REALLY CAREFULLY WHAT LIVE OAK HAS TO
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SAY THERE'S A REALISTIC PLAN TO RAISE THAT OR CLOSE THAT EQUITY GAP. I'D MUCH RATHER HAVE A SIX-MONTH WAIT AND HAVE THE PROJECT GO FORWARD THAN HAVING THE PLUG PULLED OUT OF IT AND MAYBE LITIGATION AND IF NOT LITIGATION IT'S GOING TO TAKE A LONG TIME TO FIND A NEW DEVELOPER.THEY HAVE TO GO THROUGH THE WHOLE PROCESS OF SITE ENGINEERING AND APPROVALS AND LOSE TIME WHICH IS NOT IN OUR BEST INTEREST IN RMB HOMES BECAUSE WE PUT 50 PERCENT IN THE PROJECT IN TERMS OF CONSTRUCTION.
WE WANT TO SELL THE HOMES AND FINISH THE CONSTRUCTION BUT WE NEED A VISION KING'S LANDLORD IS GOING TO HAPPEN AND NOT UNCERTAINTY WHICH IS JUST NOT A GOOD THING FOR US SO AGAIN ASK YOU TO LISTEN CAREFULLY AND HOPE FLID THERE'S A GOOD SOLD I HAD
PLAN IN PLACE AND THANK. >> THANK YOU SIR.
>> WHO IS NEXT? >> GOOD EVENING.
MADAM MAYOR, COMMISSIONERS AND STAFF, MY MARK IS BARBARA HARRIS WITH THE TEAM KELLER WILLIAMS EYE BEEN FOLLOWING THE KING'S LANDLORD PRONG SINCE THE FIRST MEETING IN AUGUST 2019 BECAUSE I TRULY BELIEVE IN WHAT THIS DEVELOPMENT CAN GRINNINGR BRING TO FORT PIERCE AND OUR COMMUNITY AS A WHOLE.
PART OF MOW PROFESSION, OVERSEE SALES FOR KING'S LANDLORD VILLAS BEING BILLED BY RMB HOMES AND ALSO BE INVOLVED IN THE SALES OF THE IS LUXURY CONDO'S DEVELOPED BY-OAK:ATTRACT TALKING.
EVERY WEEK I MEET WITH PROSPECTIVE BUYERS WHO ARE EEPGD TORE CALL KING'S LANDLORD. THE QUESTION IS WHAT IS THE STATUS OF THE HOTEL AND THE KING'S LANDLORD PROJECT.
UNFORTUNATELY THE HEADLINES SURROUNDING DELAYS AND SETBACKS CREATE UNCERTAINTY. BUYERS DON'T WANT TO PURCHASE A HOME OVERLOOKING AND UNFINISHED PROBABLE THEY WANT INSURANCE.
SOME ONE WHO WORKS DIRECTLY WITH BUYERS EVERY DAY I CAN TELL THURSDAY UNCERTAINTY AFFECTS DECISIONS AND FORT PIERCE HAS MADE PROGRESS THE LAST SEVERAL YEARS AND WE HAVE THE OPPORTUNITY TO BE CONTINUE WITH THE DEVELOPMENT TO COMPLEMENT OUR HISTORIC DOWNTOWN RATHER THAN COMPETE WITH IT.
THE LOOKS HI CONDOS AND HOTELS APPROXIMATELY 60,000 FEET OF RETAIL AND COMMERCIAL SPACE WILL CREATE NEW OPPORTUNITIES FOR RESIDENTS VISITORS AND LOCAL BUSINESSES.
IT REPRESENTS AN INVESTMENT NOT ONLY IN REAL ESTATE BUT THE FUTURE OF OUR CITY. A STUDY COMMISSIONED BY THE ST.
LUCIE COUNCIL PROJECTED THE HOTEL ALONE WOULD HAVE SIGNIFICANT IMPACT ON OUR COMMUNITY.
DURING ITS FIRST YEAR OF OPERATION IT'S ESTIMATED TO GENERATE MORE THAN $20 MILLION IN ECONOMIC ACTIVITY, WITHIN FIVE YEARS THE PROJECT IS EXCEED $20.
WHILE BUSINESSES FACE ECONOMIC CHALLENGES THIS PROJECT HAS THE POTENTIAL TO INCREASE TOURISM SUPPORT SMALL BUSINESSES CREATE JOBS A STRENGTHEN OUR LOCAL ECONOMY.
I ASK THAT YOU CONSIDER THE EXTENSION BEING REQUESTED TO ALLOW THE DEVELOPER TO SECURE THE CAPITAL NECESSARY TO COMPLETE THIS IMPORTANT COMPONENT OF THE PROJECT.
I BELIEVE KING'S LANDLORD IS MORE THAN A DEVELOPMENT.
IT IS AN INVESTMENT IN FORT PIERCE FUTURE AND CONTINUED GROENLTH OF DOWNTOWN. THANK YOU FOR YOUR
CONSIDERATION. >> THANK YOU VERY MUCH.
ANYONE ELSE. [INDISTINCT] 7 ORANGE AVENUE.
I WASN'T SUPPOSED TO BE HERE BUT THREE MINUTES ISN'T ENOUGH EITHER AND I WANT TO DRAUP ATTENTION TO OTHER ITEMS AND ONE, I DON'T THINK AUDUBON SHOULD HAVE BEEN AWARDED THE PROJECT. THEY SHOULD NEVER HAVE MADE IT PAST THE RFQ FINANCING IN PLACE, THERE IS MISTRUTH AND WHAT THEY WERE THE TALKING ABOUT THE FEELS BUILT STUDY I WOULD LIKE THAT LOOKED AT AND THE WTLA MEMO PART OF THE AGREEMENT HAS NEVER BEEN ADDRESSED AND ANSWERED ABOUT THE FINANCING AND PRO FORMA.
WE WOULD LIKE TO KNOW WHERE THE DEPOSITS ARE AND HOW THAT TRANSFERS OVER IF IT MOVES FORWARD.
I DON'T THINK THE TRIBUTE IS THE CORRECT BRAND FOR THE CITY I'M THAN A MARRIOTT TRAVEL ON HIGHEST ELITE LEVEL SO I'M CAN FAMILIAR WITH THE BRAND MUCH AS I LIKE AUDUBON CONTRIBUTE I DON'T THINK WE ARE READY FORWARD ONE YET ALSO ON THAT ASPECT THE
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QUESTIONS THAT AREN'T BEING ASKED WHAT DO WE HAVE FROM MARRIOTT TODAY? HAS MARRIOTT APPROVED THE EXACT HOTEL AND SITE PLAN? THE SITE PLAN WAS MOVING THROUGH THE CITY WHILE THE MARRIOTT FRANCHISE WAS B AND PROCESS WERE UNDERWAY, I WANT TO UNDERSTAND WHY MOVE FORWARD WITH THE SITE PLAN BEFORE MARRIOTT FINISHED DETERMINING WHAT IT WANTED.IF MARRIOTT REQUIRES CHANGES AFTERWARDS WHAT HAPPENS.
THE TRIBUTE HOTEL I DON'T THINK WE CAN SUPPORT, AND THE $15 MILLION THEY'RE TRYING TO RAISE, DOES THAT INCLUDE THE FRANCHISE, AGREEMENT, AND ARE YOU FAMILIAR WITH THE FRANCHISE FEES AND ACROSS THE BOARD OF THE OTHER BRANDS, MARRIOTT HAS OVER 35 BRANDS. IVE SUPPORTED AND SAID WE SHOULD HAVE A CO-BRANDING EXTENDED STAY BELOW AND DELTA OR ANOTHER BRAND UP TOP THAT WAY SUPPORT THE MARINA WITH LONG-TERM STAYS AND I DO TRAVEL LOGISTICS FOR A LIVING WE HANDLE A LOT OF BANDS IMPERADOR ATHLETES AND SUCH AND OUR GUYS DON'T GO STAY AND THE HYATT HOTELS, I'VE GOT CREWS BETWEEN 10-30 HEADLINERS OF DIFFERENT VENUES AND WE STAY IN SELECT TYPE HOTELS SO WHEN EVERYBODY SAYS WE NEED A FANCY HOTEL FOR HEADLINERS THAT'S NOT ACCURATE AND WE NEED TO SUPPORT THOSE TO GET THE BETTER ACTS FOR TWO NIGHT STAYS.
ASKED TO GO THROUGH THAT AND THE FRANCHISE FEES AND IF THIS IS THE RIGHT HOTEL FOR US. AND IF WE GOT SOMEBODY THAT IS ACTUALLY QUALIFIED TO DO THIS, THEN WITH WE WOULD BE FURTHER AHEAD. RIGHT NOW THIS ALL STARTED WAY BACK IN THE DAY AND WE SHOWED THEM THE MISTRUTH AND FRAUD AND IT GET SWEPT UNDER THE RUG SO I WOULD LIKE YOU TO LOOK AT THAT.
>> WTLA AGREEMENT. >> THANK YOU, MA'AM.
WHO WOULD LIKE TO GO NEXT? >> GOOD EVENING MADAM MAYOR, COMMISSIONERS MIGHT NAME IS JOHN LA BOW, I REPRESENT PROVIDENCE INVESTOR THAT SPECIALIZES IN WATERFRONT STERES.
>> YOUR LAST NAME AGAIN, PLEASE. >> LEPEAU.
>> PLEASE GET CLOSER TO THE MIC ZONE EVERYBODY CAN HERE.
>> OUR FIRM SPECIALIZES IN WATERFRONT COASTAL DEVELOPMENT THROUGH THE EAST COAST EMERGING FUND TWO YEARS OLD NOW, I'M A 33 YEAR RESIDENT OF FLORIDA ALTHOUGH I ADOPT RESIDE IN FORT PIERCE. THIS STORY CAUGHT MY ATTENTION.
THERE'S ONE THING I WOULD LIKE TO BRING TO THE ATTENTION OF THE PUBLIC AND THE CITY. IF IT'S BEEN MISSED AND IF IT HASN'T, FORGIVE ME. THE BUILDERS' CURRENT WEB SITE AT THIS MOMENT IS ADVERTISING AN ANTICIPATED COMPLETION DATE OF THE VILLAS OF DECEMBER 26. MY QUESTION IS, WHAT IS THE ACTUAL BASIS FOR THAT ANTICIPATION? AND IT'S OBVIOUS, TO ME, AND I THINK THE PUBLIC AND THE CITY THAT'S MISLEADING BECAUSE IT'S NOT GOING TO HAPPEN AND ANY WEB DEVELOPER ARE EVEN IF YOU'RE NOT A DEVELOPER CAN YOU CHANGE THAT AND UPDATE THAT IN FIVE MINUTES. SO WE HAVE A MISLEADING STATEMENT THAT IS EASILY FIXED BUT HAS NOT BEEN FIXED AND I THINK THAT SHOULD QUESTION THE CREDIBILITY OF THIS BUILDER THE DEVELOPER AND THEIR COMMENTS TODAY.
ERIC BODINE, LAW FLOERSZ OF GLORIA BODINE.
WE KNOW DOWN FORT PIERCE. WE WILL LIVE HERE.
WE WORK HERE. WE HAVE AN IS OFFICE HERE.
WE ARE OPEN 7 DAYS A WEEK AND KNOW WHAT'S GOING ON AS FAR AS TRAFFIC AND WHO IS AVAILABLE TO DO THINGS.
WE ARE BUILDING OURSELVES ACROSS FROM KING'S LANDLORD, AND IT IS HARD TO FIND MONEY. IT IS NOT A SIMPLE THING ANYMORE. THERE'S A LOT OF PROJECTS GOING ON AND MONEY IS TIGHT. YOU MAY NOT THINK IT IS BUT IF THE CITY OF FORT PIERCE WANT TO CONTRIBUTE $15 MILLION I'M PUTTING MY HAND OUT. I'LL TAKE SOME ALSO.
PLEASE CONSIDER CAREFULLY HOW MUCH MONEY IS GOING TO SPENT AND ARE WE GOING TO RECOVERY AND THEY HAVEN'T BEEN ABLE TO PROCEED YET SO WHAT GUARANTEE DO THEY HAVE THEY'RE GOING TO BE
ABLE TO PAY THE MONEY BACK? >> THANK YOU, SIR.
[A. King's Landing Update Presentation by Live Oak Holdings Group]
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ANYONE ELSE? ANYONE ELSE? ALL RIGHTY. I THINK WE WILL MOVE ON.>> THE FIRST I'LL TIM ON THE AGENDA IS KING'S LANDLORD UPDATE PRESENTATION BY LIVE OAK HOLDINGS GROOG.
>> MR. CHESS. >> MR. REYES IS GOING TO GIVE A QUARREL UPDATE I BELIEVE. ANYTHING ELSE? YES. FINE.
>> LIVE OAK, JACKSONVILLE, FLORIDA, GOOD AFTERNOON COMMISSIONERS, IT'S GOOD TO SEE YOU ALL AGAIN.
THANK Y'ALL FOR THE OPPORTUNITY TO BE HERE AND TO PRESENT OUR REQUEST FOR YOUR CONSIDERATION OF GRANTING LIVE OAK A DA 180 DAY PERIOD WITHIN WHICH LIVE OAK WILL PROCURE AN EQUITY COMMITMENT NECESSARY FOR THE FINANCING OF THE MARRIOTT TRIBUTE HOTEL AND SITE INFRASTRUCTURE DEVELOPMENT AS DEFINED AS PHASE ONE IN OUR AMENDED AND REENTERTAINMENT OF AGREEMENT FOR DEVELOPMENT. WE APPRECIATE.
THIS IN RECOGNITION OF THE GRAVITY OF THIS REQUEST, JOINING ME TODAY ARE MEMBERS OF OUR ENTIRE DEVELOPMENT TEAM.
EACH AND EVERY TEAM MEMBER HAS MATERIALLY CONTRIBUTED TO THE SIGNIFICANT PROGRESS OF OUR DEVELOPMENT PLAN, FOR WHICH WE ARE EXTREMELY GRATEFUL. WITH ME TODAY, ARE PAUL BERTOZZI FOUNDER CEO OF LIVE OAK, JOE COLLIER, FOUNDER AND SOCIEDAD OF MAIN SAIL LODGING AND DEVELOPMENT, GEORGE GARCIA, FOUNDERED AND CEO OF GARCIA STROMBERG ARCHITECTS, JEFF HARDEN OWNER CEO OF STRATICOM CONSTRUCTION.
DAVID, I THINK YOU ALL KNOW DAIVEND I THINK THAT COVERS IT.
FOR THE THE APPROPRIATE CONTEXT TODAY FORWARD OUR DISCUSSION I'M GOING TO PROVIDE A BRIEF AND CONCISE HISTORY OF THIS PROJECT.
AS I KNOW IT WEIGHS HEAVY INTO YOUR CONSIDERATION.
IN DECEMBER, 2019, APPROXIMATELY 7 YEARS AGO, THE CITY AWARDED THE WINNER OF ITS THIRD RFP FOR THIS PROPERTY.
COVID HIT, SOON AFTER THE 2019 AWARD, AND THE PROJECT WAS EFFECTIVELY TOLD THROUGH 2020. KMENGSING THROUGH 2021 APPROXIMATELY FOUR YEARS OF DUE DILIGENCE, PREDEVELOPMENT WORK PHYSICAL AND ENVIRONMENTAL SITE CLEANUP, A SUCCESSFUL COLLABORATION WITH THE CITY, AND THE ST. LUCIE ECONOMIC DEVELOPMENT COUNCIL ON PROJECT INCENTIVES AND IN PERSON CONFIRMATION FROM KYLE GAGNEY WITH MARRIOTT OF ITS INTEREST IN THE PROJECT WITH JOE COLLIER AND MAIN SAIL LODGING AND DEVELOPMENT. AND ULTIMATELY, A CITY-APPROVED MASTER SITE PLAN ALL ENSUED AND WAS ACCOMPLISHED.
HOWEVER, THROUGH THIS PROCESS, THE RELATIONSHIP BETWEEN THE CITY AND THE AWARDED DEVELOPER BECAME SEVERELY STRAINED, WITH BOTH SIDES POISED FOR LITIGATION.
MAIN SAIL INTRODUCED NEED TO KING'S LANDLORD WHILE I WAS DEVELOPMENT VP WITH HARBOR REALLY SERVICES.
IN AUGD OF 2024, UPON CITY APPROVAL OF THE SECOND AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT FOR DEVELOPMENT HARBOR BECAME A DWP PARTNER WITH THE AWARDED DEVELOPER.
ON BEHALF OF HARBOR, I COMMENCED AND CONDUCTED A THOROUGH DUE DILIGENCE EFFORT ON THE PROJECT. DURING THIS PERIOD, I HAD SEVERAL VERY PRODUCTIVE MEETINGS WITH THE CITY'S PLANNING AND DEVELOPMENT CONSTRUCTION DENTS ON THE APPROVED SITE PLAN ONCHY PROPOSED SEVERAL BENEFICIAL CHANGES. THE DEATHS RESPECTIVELY ACKNOWLEDGED THE MERIT OF THESE CHANGES AND ADDED A FEW OF THEIR OWN, DERIVED FROM OUR MUTUAL INTEREST AND COLLABORATION.
WE THEN COMMENCED A REDESIGN OF THE SITE PLAN ACCORDINGLY.
DURING THIS EFFORT FROM AUGUST OF 2024, I TRANSITIONED EMPLOYMENT FROM HARD BERT TO LIVE OAK IN DECEMBER, 2024 AND
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CONTINUED THE CITY WITH THE AMENDED SITE PLAN.IN APRIL, 2025, FOUR MONTHS LATER, RESPONSIBLE CITY APPROVAL OF THE THIRD AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT FOR THE DEVELOPMENT LIVE OAK WAS APPROVED TO REPLACE HARBERT, I HIGHLIGHT THAT PAUL ALLOWED ME TO CONTINUE MY EFFORTS IN THE FOUR MONTHS AFTER MY TRANSITION AND PRIOR TO LIVE OAK BEING APPROVED BY THE CITY IN THE THIRD AMENDMENT IN APRIL OF 2025. ACKNOWLEDGEMENT OF THIS HISTORY, UP TO APRIL OF 2025 A SPAN OF MORE THAN TEN YEARS OF SEVERAL RFP AND PROJECT AWARD ACTIVITIES, I RESPECTFULLY REQUEST THAT WE NOT BE HELD CAPTIVE OR ACCOUNTABLE FOR THIS TEN-YEAR PLUS PERIOD OF TIME AND PRIOR TO LIVE OAK BEING APPROVED IN THE APRIL, 2025 THIRD AMENDMENT, ONLY 16-17 MONTHS AGO. SINCE THE APRIL 20235 CITY APPROVAL OF THE THIRD AMENDMENT SIGNIFYING LIVE OAK'S COMMENCEMENT AS THE DEVELOPMENT PARTNER OF THE PROJECT ONLY ONE AND A HALF YEARS AGO, LIVE OAK DELIVERED ON ITS INITIAL REQUIREMENT PROVIDEED IN THE AGREEMENT THE THIRD AMENDMENT REQUIRED ITS TO EXPEDITE AND SUBMIT OUR PROPOSED AMENDED SITE PLAN TO THE CITY ON OR BEFORE MADE 30, 2025.
BECAUSE OF THE CONTINUED TIME AND EFFORTS EXPENDED IN THE FOUR MONTHS FROM DECEMBER 2024 TO LIVE OAK'S FORMAL CITY BROOUFL ON THE A DEVELOPMENT PARTNER IN APRIL OF 2025 AND IN GOOD FAITH AND AGAIN PAUL'S COMMITMENT WE SUCCESSFULLY ACCOMPLISHED THIS BID A COMMITTED AND CONTINUED DILIGENCE AND COLLABORATION WITH THE STUDY AND OUR DEVELOPMENT TEAM FOR WHICH WE ARE MOST GLAIFL. IN SEPTEMBER, 2025, FOUR MONTHS FROM THE MAY 31 SUBMITTAL THE CITY APPROVED THE SITE PLAN, DATED SEPTEMBER 152025 WAS APPROVED AND RECORDED AND MARKS THE DATE THAT LIVE OAK OFFICIALLY RECEIVED ITS FINAL APPROVALS FROM THE CITY AS TO ONE, BEING THE MASTER DEVELOPER OF KINGS B KING'S LANDLORD, TWO, ITS PURCHASE AND SALE AGREEMENT FOR THE PURCHASE OF THE LAND FROM THE AWARDED DEVELOPER IN LIEU OF THE PREVIOUSLY CONTEMPLATED PARTNERSHIP, AND THREE, A NEWLY CONCEIVED MASTER SITE PLAN, DERIVED FROM A PRODUCTIVE AND SUCCESSFUL COLLABORATION WITH THE CITY'S PLANNING AND DEVELOPMENT DEPARTMENT, AND ENGINEERING AND CONSTRUCTION DEPARTMENTS. THAT WILL SERVE TO BE FAVORABLY EFFICIENT PEDESTRIAN FRIENDLY AND HIGHLY MARKETABLE AND HAVE CONTINUOUSLY PROCEEDED DILIGENTLY ON OUR DEVELOPMENT PLAN. THIS IS ONLY ONE YEAR AGO, 12 MONTHS. IN JANUARY, 2026, FOUR MONTHS LATER, WE COMPLETED AND SUBMITTED 100 PERCENT CIVIL ENGINEERING PLANS OF OUR MASTER SITE DEVELOPMENT PLAN INCLUDING ALL THREE FACES OF THE ENTIRE PROJECT, NOT JUST PHASE ONE.
EARLY AUGUST, 2026, APPROXIMATELY 30 DAYS AGO, WE RECEIVED FINAL CITY DCPR APPROVAL OF THESE PLANS AGAIN FOR THE ENTIRE PROJECT. WE ARE NOW POSITIONED TO COMMENCE SITE DEVELOPMENT AND WILL DO SO WITH THE CONJUNCTION OF THE CLOSING ON OUR PHASE ONE CONSTRUCTION LOAN.
FURTHER, OUR OVERALL MASTER DEVELOPMENT PLAN PROGRESS ALSO NOW INCLUDES THE RECENT COMPLETION OF 14U7B PERCENT OF SCHEMATIC DESIGN PLANS OF THE MAIN BUILDING THAT WILL HOUSE
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106 RESIDENTIAL CONDOMINIUMS RETAIL AND RESTAURANT SPACE AND A 5 STORY, 485 CAR PARKING GARAGE.WHILE OUR MASTER SITE PLAN CITY DCPR APPROVAL WAS ONGOING FOR JANUARY 2026 JOE COLLIER AND HIS MAIN SAIL TEAM WERE WORKING THROUGH ALL THE MARRIOTT APPROVAL REQUIREMENTS.
IN LATE FEBRUARY, ONLY 7 MONTHS AGO WE RECEIVED FINAL MARRIOTT APPROVAL OF THE HOTEL PROJECT. MAIN SAIL HAS TAKEN THE PROJECT THROUGH THE LONG MARRIOTT FRANCHISE APPROVAL PROCESS AND THE PROJECT IS APPROVED AS TRIBUTE PORTFOLIO BY MARRIOTT IN THE UPPER UPSCALED CATEGORY OF FULL SERVICE HOTELS.
AS A CONDITION OF THIS APPROVAL, MAIN SAIL WILL BE REQUIRED TO SIGN A FINANCIAL GUARANTEE ON THE 25 YEAR AGREEMENT.
I'M GOING TO PAUSE HERE FOR JUST A MINUTE.
TIMELY. AND IN THE ESSENCE OF TRANSPARENCY, AS I'VE ALWAYS BEEN WITH Y'ALL, ACKNOWLEDGE THAT NOTWITHSTANDING ALL THIS PROGRESS IN THE APPROVALS WE ARE CURRENTLY TECHNICALLY IN DEFAULT OF THE THIRD AMENDMENT AND ESPECIALLY THE EXHIBIT A SCHEDULE THERETO.
HOWEVER, PLEASE UNDERSTAND THE REASON FOR THIS IS THAT THE EXHIBIT A SCHEDULE PROVIDES FOR US TO HAVE SUBMITTED 100 PERCENT COMPLETED HOTEL ARCHITECTURAL AND CIVIL PLANS TO THE CITY ON FEBRUARY 252026. JUST DAYS LATER IN THE SAME MONTH IN WHICH WE JUST RECEIVED FINAL APPROVAL FROM MARRIOTT FOR THE HOTEL DEVELOPMENT, INCLUDING ITS LIMITED CONCEPTUAL DESIGN.
NOTWITHSTANDING OUR TREMENDOUS PROGRESS AND ALL THE RECENT APPROVALS THIS SUBMITTAL DATE, SUBMITTAL DATE IN THE SCHEDULE PROVED TO BE PREMATURE. I'LL CONTINUE.
UPON NOTICE OF APPROVAL FROM MARRIOTT, MAIN SAIL MOVED FROM CONCEPTUAL TO SCHEMATIC DESIGN. I THEN MADE MY IN PERSON QUARREL REPORT TO THE COMMISSION ON APRIL 14 TWOIRKS.
INCLUDED WITHIN THE REPORT WAS AN ACKNOWLEDGEMENT OF MARRIOTT'S APPROVAL AND THE COMPLETION DATE OF THE WHO TELL REMAINING ATTAINABLE. ALSO DISCUSSED AND COMING FROM THIS MEETING WAS AN AGREEMENT FOR US TO WORK WITH THE CITY ON A FOURTH AMENDMENT AND SPECIFICALLY, ON A NEW REALISTIC EXHIBIT A SCHEDULE OF THE TIMELINE IN THE AGREEMENT AND SPECIFICALLY, ON A NEW REALISTIC EXHIBIT A SCHEDULE GIVING MARRIOTT GEB 2026 APPROVAL. WE PROCEED WITH THIS WITH THE CITY ATTORNEY'S OFFICE. OUR LAST CORRESPONDENCE WITH THE CITY ON THIS WAS EMAIL TO THE CITY AND MAY 29, 2026 WHERE IN WE HAD ATTACHED A PROPOSED RED LINE TO AND ON GOING DRAFT OF THE FOURTH AMENDMENT BETWEEN OUR OFFICES.
THIS COLLABORATION HAS BEEN EFFECTIVELY TOLD PENDING APPROVAL OF OUR REQUEST TODAY. DURING THE 60 DAYS FOLLOWING MARRIOTT'S APPROVAL IN FEBRUARY, MAIN SAIL CONTINUED ITS DEVELOPMENT ORIENTATION AND JOE COLLIER REACHED OUT TO ITS INVESTORS TO ADVISE THE PROJECT FINALLY A REAL I HAD THE AND LEARNED HIS INVESTOR GROUP HAD MODIFIED THEIR INVESTMENT CRITERIA AND THE PROBABLE NO LONGER MET THE NEW REQUIREMENT THRESH HOLD'S. AS I STATED IN MY NEXT MEETING UPDATE ON JULY 14,2026 I WAS ADVISED BID THIS BY JOE AT THE END OF APRIL AND POST MY IN PERSON APRIL 2026 QUARTERLY REPORT. AS YOU CAN IMAGINE, THIS IT WAS QUITE A SETBACK FOR US. IN THE ESSENCE OF TIME, AND A HIST HIST HISTORICAL SUCCESS RATE, JOE COLLIER CONSIDERED WE SUGGEST
[00:35:03]
APPROACHING THE CITY WITH THE CONCEPT OF A BOND ISSUE A PARTNERSHIP THIS CONCEPT WAS PRESENTED IN MY MEETING ON JULY 24TH 2026 FOR DISCUSSION AND IT WAS DETERMINED BID THE CITY NOT TO BE AN AVAILABLE OPTION. THE COMMISSION ALTERNATIVELY REQUESTED THAT I SUBMIT WITHIN TWO WEEKS OF THE DATE OF THIS MEETING THE AMOUNT OF TIME DEEMED NECESSARY FOR LIVE OAK TO FULFILL THIS EQUITY NEED. I RESPONDED VIA EMAIL IN TEN DAYS ON JULY 24 WITH A REQUEST FOR 180 DAYS.THUS, WE ARE NOW HERE TODAY HAVING MADE CLEARLY SIGNIFICANT AND PREREQUISITE PROGRESS OVER THE LAST 12 MONTHS, RESPECTFULLY REQUESTING YOUR APPROVAL OF A PERIOD OF TIME DEEMED SUFFICIENT FOR LIVE OAK TO CONTINUE OR PROGRESS ON THE DEVELOPMENT PLAN PTHAT NOW INCLUDES ASSISTANCE WITH PROCURING AN EQUITY COMMITMENT NECESSARY FOR THE FINANCING OF THE HOTEL.
WE HAVE COMMENCED THE PROCESS OF PREPARING THIS EFFORT AND HAVE A FAVORABLE LEVEL OF CONFIDENCE OUR ABILITY TO DO SO.
WITH MILLIONS OF DOLLARS INVESTED THUS FAR AND AN ENORMOUS AMOUNT OF TIME, WE'RE EXTREMELY MOTIVATED TO SEE THIS THROUGH TO A SUCCESSFUL COMPLETION.
IN CLOSING, I TRUST YOU ACKNOWLEDGE AND APPRECIATE ALL THAT HAS CLEARLY BEEN ACCOMPLISHED OVER THE LAST 12 MONTHS WITHIN WHICH LIVE OAK WAS OFFICIALLY MASTER DEVELOPER OF THE PROJECT. WE THANK YOU FOR YOUR PART IN PROGRESSING OUR APPROVALS. WE NOW HAVE CITY APPROVAL OF OUR COLLABORATIVE, AMENDED MASTERED SITE PLAN.
WE NOW HAVE CITY APPROVAL OF OUR ENSIRE SITE DEVELOPMENT CIVIL PLANS FOR ALL THREE PHASES AND WE HAD NOW HAVE FORMAL MARRIOTT REAL STATE DEVELOPMENT COMMITTEE APPROVAL OF OUR TRIBUTE HOTEL.
ALL THREE OF WHICH ARE PREREQUISITES AND MANDATORY FOR SECURING OUR PHASE ONE FINANCING COMMITMENT.
WE'RE NOW POISED FOR SUCCESS WITH YOUR APPROVAL TODAY.
THANK YOU. >> THANK YOU MR. WARE.
ARE WE HAD GOING TO HEAR FROM ANY OTHER MEMBERS OF YOUR TEAM?
OR QUESTIONS FIRST I THINK. >> YEAH.
>> ALL RIGHT. QUESTIONS OF MR. WARE.
>> OR ANY OF THE TEAM. >> YES.
>> I HAVE A FEW QUESTIONS TO START AND WILL HAVE FOLLOWUP.
BILL WHAT IS YOUR INVESTMENT IN THE PROJECT TO DATE?
YOU INDICATED MILLIONS. >> PUSHING TWO MILLION.
>> THAT'S IN SOFT CAUSE FOR DESIGN.
>> RIGHT. >> ARCHITECTURAL ENGINEERING.
>> LAND CONTRACT ET CETERA. >> CAN YOU HAVE GIVE AN UPDATE I KNOW YOU TOUCHED ON THE STATUS OF KURGD THE 15 MILLION WHAT'S BEEN THE MARKET REACTION TO YOUR REQUEST?
>> AGAIN WE ARE PREPARING FOR THAT PROCESS COMMISSIONER.
INGTY GROUPS, WON'T SPEND TIME AND RESOURCES NOT KNOWING THAT THE PROJECT IS GOING TO BE AN OPPORTUNITY FOR THEM TO LOOK AT OR NOT. SO PENDING TONIGHT'S APPROVAL, WE WILL HAVE THOSE CONVERSATIONS THEN.
I'LL STOP THERE. I HAVE A BUNCH OF OTHER QUESTIONS LATER. ALL RIGHT.
OTHER COMMISSIONERS? ANY OTHER COMMISSIONERS.
THANK YOU MR. WARE FOR THE UPDATE.
>> YES SIR. >> AND THANK YOU FOR BEING HERE TODAY, SOME OF WHICH IN YOUR NARRATIVE YOU'VE ANSWERED SOME OF THE CONCERNS FROM THE PUBLIC, AND I WANT TO THANK YOU FOR.
I HEARD SOME THINGS REELED CLEAR THERE, I CAN APPRECIATE THE PROGRESS UVA MADE AS FAR AS THE SEQUENCES OF TAKING IT THROUGH PLANNING PD ZONING ALL THOSE THINGS, SOUNDS LIKE ALL THAT IS APPROVED ET CETERA YOU HAVE APPROVED SITE PLAN READY TO GO.
MY ONLY SIMPLE QUESTION IS WHEN DOES THE DATE START FOR THIS SIX MONTHS? IF IT'S APPROVED TONIGHT YOU
HAVE SIX MONTHS FROM TODAY. >> AGAIN, I'M NOT AN ATTORNEY BUT I WOULD SAY AS SOON AS IT BECOMES OFFICIAL.
>> OKAY. >> WHENEVER THAT DOCUMENT IS DONE BY THE CITY ATTORNEY'S OFFICE.
YOU MENTIONED SOMETHING IN YOUR COMMENT ABOUT THE ACTUAL DATES,
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SUBMITTAL DATES PART OF THE PLAN THERE'S BEEN A BREACH WITH THAT BASED ON WHAT WAS SUBMITTED PREVIOUSLY SO I'M ASSUMING THIS FOURTH AMENDMENT WOULD ADDRESS THAT CONCERN AS FAR AS THE TIMELINE AND BE SEQUENCES GOING FORWARD.>> THAT'S CORRECT. >> AND THAT HAS BEEN SUBMITTED
>> YES, SIR. >> YOU CAME INTO TOWN, I TALKED TO YOU DIRECTLY, AND I SAID I'M GOING TO TRY AND DO WHATEVER I
>> I DON'T THINK IT'S ON. IS IT ON?
>> IT'S ON. >> I DON'T HAVE A RED LIGHT.
AND THE CHALLENGE THAUF I HAVE IS NUMBER ONE, 52 DAYS AGO YOU CAME BEFORE US AND TALKED ABOUT $15 MILLION GAP.
YOU JUST SAID JUST NOW, THAT WELL, NOBODY WANTS TO TALK TO US BECAUSE WE DON'T HAVE ANY APPROVAL BUT WERE YOU GIVEN A BREAK AT THAT POINT TO GO OUT AND FIND INVESTORS WHO WOULD BE INTERESTED IN MOVING THAT FORWARD.
HAD YOU COME IN HERE TONIGHT AND SAID, HEY, WE HAVE INTEREST BECAUSE WE HAVE ALL THESE SITE PLANS, WE HAVE THE ENGINEERING, WE HAVE ALL THESE ELEMENTS THAT ARE A PART OF THE OVERALL PLAN.
THE HOTEL, IS REALLY NOT PART OF THAT IN REGARD TO THE SITE PLAN.
YOU HAVE ALL THE OTHERS. YOU HAVE THE CONDOS, YOU HAVE ALL THE OTHER ELEMENTS, YOU HAVE THE ENGINEERING PLANS WITHIN THE MAYOR SAID IT EARLIER THAT HEY, WE WERE ABLE TO GET A GRANT FOR SEVERAL MILLION DOLLARS TO ACTUALLY PROVIDE THE UTILITIES AND ROAD SERVICES SO ON SO FORTH SO THE CITY HAS BEEN PUTTING IN THEIR PART FQA HAS PUT IN THEIR PART SO THERE'S BEEN A LOT OF HELP AND A LOT OF PEOPLE INTERESTED IN SEEING SUCCESS.
>> MM-HMM. >> I IT WAS HOPING TO HEAR THAT A COMMITMENT FROM, WELL, V.C. VENTURE CAPITALIST OR BANKS OR MARRIOTT CORPORATION, ANY NUMBER OF OPPORTUNITIES WHEN YOU STOOD HERE BEFORE US LAST TIME, I SUGGESTED THAT YOU KNOW A HOTEL CONDO HOTEL PROVISION WOULD BE AVAILABLE SO YOU COULD SELL THE HOTEL ROOMS UP FRONT TO HELP FUND A PORTION.
HOTEL. HAD YOU LOOKED INTO ANY OF THAT OPPORTUNITY? BECAUSE IT HAPPENS IN VEGAS ALL THE TIME. IT HAPPENS IN CALIFORNIA.
IT HAPPENS IN PENNSYLVANIA. IT HAPPENS IN FLORIDA.
THAT'S A FUNDING SOURCE. DID YOU LOOK INTO ANY OF THAT
AND WHAT WAS THE RESULT? >> I HAVE NOT LOOKED INTO A CONDO HOTEL AND THE HOTEL COMPONENT OF THIS PROJECT IS LED BY JOE COLDIER MAIN SAIL LODGING AND DEVELOPMENT.
IT'S WHAT THEY DO. SO, WE ARE RELYING ON JOE TO GUIDE US IN THAT DIRECTION. WE BELIEVE THAT WE HAVE THE RIGHT DIRECTION. WE BELIEVE THAT THE MARRIOTT TRIBUTE IS THE RIGHT HOTEL. AND AGAIN, JOE CAN SPEAK TO IT IN SPADES I'M SURE BUT A COUPLE OF THINGS I JUST WANT TO CLARIFY OF COMMENTS THAT YOU MADE THAT THE SITE PLAN, THE SITE PLAN DOES INCORPORATE THE HOTEL SO WITHOUT THE SITE PLAN THE HOTEL DOESN'T HAPPEN. THE INFRASTRUCTURE, SAME.
ALL THE SITE CIVIL ENGINEERING, FROM A INFRASTRUCTURE STANDPOINT WE CAN'T HAVE A HOTEL WITHOUT THE INFRASTRUCTURE SO IT'S ALL PART AND PARCEL. WHAT WE HAVE NOT DONE JUST YET, AGAIN PENDING APPROVAL BY MARRIOTT, IS TO THE VERTICAL PLANS FOR THE HOTEL AND THAT REMAINS TO BE DONE.
>> SO, MARRIOTT IS IS A HUGE CORPORATION.
IT'S UNDERSTANDABLE MANY OF THE OPERATIONS ARE INVESTORS.
THEY'RE NOT OWNED BY THE CORPORATION.
>> THAT'S CORRECT. IN FACT, I BELIEVE NOT MANY ARE.
>> SO, WHERE IS MAIN SAIL IN THE FACT THAT THEY ARE SUPPORTING THIS, SAYING THAT WE CAN GO FORWARD WITH THIS THING? AND IF THIS IS A CHALLENGE RIGHT NOW, WHERE IS MAIN SAIL GOING TO BE IN SIX MONTHS? I HAVE A CHALLENGE WITH THAT.
NO, I WILL. >> THE OLD HOTEL GUY.
>> IDENTIFY YOURSELF FOR US PLEASE FOR THE RECORD.
>> COLLIER, MAIN SAIL LODGING AND DEVELOPMENT TAMPA.
YOU KNOW, I HAD BEEN LISTENING TO THIS AND I UNDERSTAND EVERYBODY IS SORT OF TREPIDATION ABOUT HOW THIS IS GOING.
THE HOTEL UNFORTUNATELY IS THE HARDEST PART OF THE DEAL.
IT'S THE BIGGEST RISK, AND WE HAVE FACED THIS IN NUMEROUS TOWNS. YOU KNOW, WHEN WE PROPOSED THE $15 MILLION DEAL IT WASN'T MEANT TO BE A GIVEAWAY OR ASK.
IT WAS SIMPLY THAT WHEN DO YOU A DEAL LIKE THIS LIKE WE HAVE DONE IN OTHER TOWNS AND BY THE WAY WE HAVE GOT THREE OF THESE
[00:45:01]
COUNSELED INSTRUCTION SO WE HAVE $300 MILLION OF THESE HOTELS UNDER CONSTRUCTION, SO WE ARE FULLLY CAPABLE OF GETTING THESE DEALS DONE. I LOVE THE KING'S LANDLORD PROJECT, I LOVE FORT PIERCE. I'M A FLORIDIAN.MY COMPANY IS CALLED MAIN SAIL. I GET MARINAS AND BOTH AND HOW THAT CAN BE A ECONOMIC DRIVER. I THINK TO ANSWER A COUPLE OF QUESTIONS IF YOU WANTED TO DO A RESIDENCE OR FOUR POINTS OR COURTYARD BY MARRIOTT I COULD FACILITATE THAT.
YOU KNOW. THAT'S NOT THE KIND OF HOTELS WE TYPICALLY DO BUT WE COULD PROBABLY FACILITATE THAT HAND YOU COULD HAVE THAT KIND OF HOTEL.
THE TYPE OF HOTELS WE DO FULL SERVICE HOTELS HIGHER VERTICAL CONSTRUCTION, YOU KNOW, A WHOLE LOT MORE OPERATING EXPENSES FULL SERVICE HOTEL BANQUETS ROOM SERVICE BARS AND RESTAURANTS THOSE TYPES OF THINGS IT'S DIFFERENT IN THOSE TYPES OF HOTELS SO IN THESE OTHER TEAMS LIKE FORT PIERCE OR EXCUSE ME LIKED FOR THE MYERS, LIKE MACON GEORGIA, NOT A SPRAWLING MEE EGALOPOLIS, WE HAD TO GO FORWARD AND ASK TO MAKE THE DEAL HAPPEN IN THE CASE OF MAKING THE CITY ISSUED BONDS AND THEY DID A CHEAP LOAN. BUT WE HAD TOOK AN OLD BUILDING IN THIS CENTER OF THEIR TIME AND WE SPENT EDWARD 35 MILLION-DOLLAR AND RENOVATED THAT OLD BUILDING AND TURNED IT INTO A TRIBUTE BID MARRIOTT WHO TEMPTED AND NOW IT'S GOT A ROOFTOP BAR AND RESTAURANT AND WAS A CATALYST FOR OTHER THINGS IN THAT TOWN. FORT MYERS SAME THING N. THAT PARTICULAR CASE THE CITY HAD TRIED.
THEY STUBBED THEIR TOE WITH MULTIPLE DEVELOPERS HAD EGD ON THEIR FACES LIKE FIVE DIFFERENT TIMES FROM GROUPS THAT TRIED TO DO A HOTEL IN DOWNTOWN FORT MYERS AND COULDN'T DO IT.
WE SHOWED UP AND WE GOT IT DONE. CITY HAD TO HELP US BUT IF THERE'S A WILL THERE'S A WAY. WE GOT IT DONE.
SO I JUST WANTED TO CLEAR UP THAT WE WEREN'T LOOKING FOR A HANDOUT FROM THE CITY JUST LOOKING FOR THE CITY TO BE OUR PARTNER SO THE RETURN THRESHOLD YOU GUYS PROBABLY WANT THE HOTEL MORE THAN ANYBODY ELSE. YOU ASSISTANT TO SERVE THE BEST INTERESTS OF YOUR TOWN HAVING THIS TYPE OF HOTEL.
SO, BUT WHEN WE WENT TO OUR NORMAL GROUP OF INVESTORS THAT ARE INVESTING IN THESE TYPES OF PROJECTS, THREE THINGS, CONSTRUCTION COSTS HAVE GONE UP, INTEREST RATES HAVE MOVE THE WRONG DIRECTION AND THE WORLD HAS JUST CHANGED A LITTLE BIT OVER THE COURSE OF THE LAST FEW YEARS AND FORT PIERCE UNFORTUNATELY IS A TERTIARY MARKET AND YOU DON'T HAVE A HOTEL LIKE THIS AND THERE'S A REASON YOU DON'T HAVE A HOTEL LIKE THIS IT'S NOT BECAUSE I DON'T LOVE THE CITY IT'S A GREAT LITTLE TOWN IT'S JUST TOUGH SO THE FIRST THING THE LENDER SAYS TO NEED SHOW ME THE COMPS SHOW ME WHAT OTHER FULL SERVICE HOTELS YOU'VE GOT IN DOWNTOWN FORT PIERCE AND I'M UNFORTUNATELY NOT ABLE TO DO THAT SO JUST LIKE FORT MYERS AND MACON AND WE HAVE A $85 MILLION HOTEL HAD UNDER CONSTRUCTION IN CARY NORTH CAROLINA AND IT'S A TRIBUTE PORTFOLIO HOTEL SO I DO THINK IT'S A RIGHT BRAND, I BELIEVE IN THE BRAND.
MARRIOTT IS MAKING AN INAS PART OF THIS FRANCHISE AGREEMENT.
NOT ALLOWED TO TALKED ABOUT THAT PUBLICLY IN TERMS OF THE NUMBER BUT THEY ARE AS PART OF THE FRANCHISE AGREEMENT, THEY'RE PUTTING A FOOT FORWARD. THEY WANT TO GET THE DEAL DONE TOO. SO THEIR PUT PUTTING IN INCENTIVE AMOUNT OF MONEY FORWARD TO TRY TO GET IT DONE.
SO I THINK BILL IS ONE OF THE MORE EARNEST GUYS YOU'RE GOING TO MEET. ALL THAT OTHER STUFF FROM THE OLD DAYS, THAT'S NOT BILL'S PROBLEM.
YOU KNOW, THE OTHER STUFF, YOU KNOW, AND YOU NEVER WANT A PROJECT TO TAKE THIS LONG AND I UNDERSTAND THE DOUBTING PUBLIC SAYING, TAKE IT BACK OR THAT DOESN'T SOUND LIKE A PLAN.
THAT SOUND LIKE YOU KNOW YOU'RE GOING TO TOIL AND HAVE TO GO THROUGH THIS PROCESS AGAIN, AND IS GOING TO HAVE THE SAME UNDERWRITING CRITERIA I DO THIS FOR A LIVING.
CALL MARRIOTT. ASK THEM ABOUT US.
WE ARE CURRENTLY RATED NUMBER ONE MANAGEMENT COMPANY IN THE MARRIOTT SYSTEM. SO, WE KNOW WHAT WE ARE DOING.
IF THE DEAL CAN GET DONE, WE CAN GET IT DONE, BUT WE GOT TO GO A DIFFERENT ROUTE AND THAT MEANS PROBABLY, YOU KNOW, INSTEAD OF RAISING $20 MILLION OFFIC EQUITY FROM FIVE OR SIX DIFFERENT PEOPLE WE ARE PROBABLY GOING TO RAISE IN IT A DIFFERENT WAY.
IT'S PROBABLY GOING TO BE MORE LOCALIZED.
IT'S GOING TO BE SOME PEOPLE THAT CARE ABOUT THIS COMMUNITY THAT MAYBE THEIR RETURN THRESH HOLDS ARE A LITTLE BIT DIFFERENT. MAYBE, I MEAN, AND BID THE WAY, I STILL BELIEVE IN THE PROJECT I THINK WILL MAKE MONEY ON IT, BUT, THERE IS A LOT OF RISK AND SO I WAS TRYING TO MITIGATE THAT RISK AND QUICKLY GET TO THE FINISH LINE FOR YOU WITH THIS OTHER JUST EMPLOYING SOME OF THE SAME DEALS THAT WE HAD DID IN
[00:50:03]
SOME OF THESE OTHER MARKETS. THAT'S ALL I HAD GIVEN BILL WAS THE TOOLS TO DO THAT SAYING LOOK WE CAN GET THERE, IF THE CITY WANTS THIS THING WE CAN GET THERE AND BY THE WAY KEEP IN MIND THE HOTEL IS ABOUT $65 MILLION SO PUTTING FORTH SOME AMOUNT OF ASSISTANCE FROM THE CITY IS NOT PAYING FOR THE HOTEL. THERE'S STILL GOING TO BE A DA $35-40 MILLION SENIOR LOAN I'M GOING TO HAVE TO PERSONALLY GUARANTEE. THERE'S A 25 YEAR FRANCHISE AGREEMENT THAT IS THE MOST ONEROUS DOCUMENT YOU'VE EVER SEEN THAT I HAVE TO PERSONALLY GUARANTEE SO IT'S LIKED NOT WE ARE SOME SHYS TERS ROLL IN WITH CARPET BAG AND SAY GIVE ME SOME MONEY MAYBE IT WILL WORK MAYBE IT WON'T WE WILL HAVE MORE SKIN IN THE GAME THAN ANYBODY IN THIS ROOM THE CITY INCLUDED, AND THE DEAL WE HAD OFFERED WAS THE CITY WOULD GET THEIR MONEY BACK FIRST ANYWAYS SO I WANT TO MAKE SURE THAT WAS CLEAR.NOW IF WE HAVE MOVED PAST THAT AND THAT'S NOT ON THE TABLE WE ARE GOING TO GET IN THE TRENCHES WITH BILL AND HELP HIM RAISE THE MONEY A DIFFERENT WAY BUT WE HAD NEED TIME TO DO IT BECAUSE THE DICHOTOMY OF THE DEAL HAS CHANGED.
>> I'LL AGREE WITH THAT LAST ENTERTAINMENT.
FROM THE TIME THE RFP WENT OUT TO TODAY IT'S VERY DIFFERENT FROM THOSE WHO MIGHT HAVE BEEN ABLE TO BE ON THE PROJECT AND BE SECURED FROM ANOTHER AGENCY OR GROUP OF PEOPLE.
THE ONE THING THAT IS IMPORTANT TO ME AND CERTAINLY THOSE I REPRESENT IN THIS COMMUNITY, IS THAT'S A CITY OWNED PROPERTY.
IT WHAT'S WORTH ABOUT $2.5 MILLION BACK IN THE DAY 7, 8, 9 YEARS AGO WHEN IT WAS BEING CONSIDERED AS INCENTIVE.
TODAY IT'S PROBABLY CLOSE TO $8MY GIVE OR TAKE GIVEN THE FACT THAT WE HAVE THE MARINA FRONT PROPERTY, WE HAVE HAD THE ROADWAY SYSTEM THAT SUPPORTS TOURISM, THE AIRPORT IS A PART 139 COMMERCIAL AIRPORT READY TO BE PASSENGER SERVICE AND CARGO.
WE HAVE PURSUIT BOTH AND MAVERICK BOTH THAT HAVE THEIR PEOPLE COME INTO OUR COMMUNITY AND VISIT THEIR BOTH AS THEY'RE BEING CONSTRUCTED. THEY HAD NEED A HOTEL TO STAY IN. WE HAVE A FIRST DAY ATTRACTION IS NAVY SEAL MUSEUM AND THEY HAVE A NUMBER OF MILITARY EVENTS IN WHICH PEOPLE COME IN FOR REUNIONS.
FIRST DAY ATTRACTION. OF COURSE WE HAVE THE BEACHES.
ALL THOSE THINGS ARE TOUR ILLS RELATED AND OPPORTUNITY FOR AN AREA THAT DOES NOT HAVE THE HOTEL ROOMS AVAILABLE TO IT.
EVEN WHEN WE HAVE THE SUNRISE THEATER ACTS US, WE HAVE TO PUT THEM OUT OF TOWN BECAUSE WE DON'T HAVE ONE CLOSE ENOUGH THAT IS OF QUALITY WITH A QUALITY UPDATE OF ACTS, LET NEED MAKE SURE OUR OTHER HOTELERS KNOW IT'S NOT DISPARAGING THEIR PROPERTY. I THINK THAT'S PROTESTOR M IMPORTANT. THE LAST FACTOR IMPORTANT TO ME, THIS IS PUBLIC PROPERTY AND WE HAVE BEEN THREE THROUGH ITERATIONS. I'VE ASKED A DIRECT QUESTION OF OUR FORMER CITY ATTORNEY, AND BILL, YOU SAID IT VERY CLEARLY AND I APPRECIATE YOU SAYING IT OUT LOUD THAT THIS IS A MATERIAL BREACH AND BEING A MATERIAL BREACH IN ORDER FOR THE CITY TO GET BACK THIS PROPERTY, MY OPINION AND BASED ON THE LEGAL REVIEW OF THIS, IS THAT WE NEED TO STOP NOW.
BECAUSE IF WE DO ANOTHER AMENDMENT IT CONTINUES TO WEAKEN US AND MORE DIFFICULT TO GET THE PROPERTY BACK.
THAT'S MY ISSUE. I THOUGHT WE HAD WERE GOING TO HAVE A DIFFERENT CONVERSATION BUT I'M GOING TO STOP THERE AND MAYOR ASK FOR A FEW MINUTES HANDOFF WE ARE DONE DELIBERATING BECAUSE I WANT TO GET SOME THINGS ON THE RECORD AND FOR THE REPORT, WHATEVER THE OUTCOME MAY BEEB.
>> COMMISSIONER GAINES. >> SO.
>> I GOT A COUPLE OF THOUGHTS. GO AHEAD.
>> I JUST WANTED TO SAY THANK YOU FOR MAKING THAT REALLY CLEAR ABOUT THIS IS REAL BUSINESS HERE YOU'RE TALKING ABOUT.
AND SOMETIMES, GOVERNMENT DOESN'T GET BUSINESS.
SO YOU NEED TO TALK STRAIGHT TO US AND I APPRECIATE YOUR DOING THAT. I'M GLAD YOU BROUGHT UP THE FORMER RFP'S THE REASON WE WENT THROUGH THIS TWICE AND DIDN'T CHOOSE ANYBODY AND THE REASON IS BECAUSE THIS ROOM WAS FULL OF PEOPLE THAT SAID THIS HOTEL WHAT YOU'RE DOING IS NOT GOING TO BE GOOD ENOUGH FOR WHAT WE WANT. AND SO, THE LAST RFP WE ISSUED WE TOOK TO IT HEART SAYING THE PEOPLE IN FORT PIERCE WANT A QUALITY HOTEL IN DOWNTOWN FORT PIERCE SO WE WANT TO GET THERE, WE WANT TO GET THERE, AND THAT IS WHY I THINK THAT WE ARE WHERE WE ARE TODAY, WHY YOU'RE OFFERING THE TRIBUTE.
I KNOW I'VE STATED THE LUMINARY IN FORT MYERS, I KNOW THE
[00:55:05]
QUALITY OF THAT HOTEL AND I ALSO NODE WHAT A STRETCH IT IS FOR YOU FOR FORT PIERCE BECAUSE IT'S A SMALLER TOWN.IT'S HAS AN AL CULTURAL BACKGROUND, IT HAS A LOT OF WONDERFUL, WONDERFUL, NATURAL AMENITIES AND HONESTLY MANY OF OF OUR PEOPLE WANT TO KEEP THOSE SECRET.
SO CAN I SEE WHY I UNDERSTAND WHAT YOU'RE TALKING ABOUT WHEN YOU'RE TALKING ABOUT RISK AND ALSO THAT YOU HAVE NO COMPS.
THERE'S NO COMPARABLE. SO I UNDERSTAND THAT BUSINESS AND I WILL HAVE TO SAY ON THE RECORD I'M INCLINED TO GIVE YOU THE 180 DAYS AND BECAUSE OF ALL THE ACCOMPLISHMENTS THAT YOU'VE DONE MR. WARE AND MR. COME YERD AND I REALLY APPRECIATE YOUR GOING THROUGH BECAUSE REALLY UP UNTIL JUST 18 MONTHS AGO YOU WEREN'T IN THIS BUSINESS. SO, THANK YOU VERY MUCH.
COMMISSIONER BROAD RICK, WOULD YOU LIKE TO GO HEAD?
>> THANK YOU. FIRST I WANTED TO MENTION I APPRECIATE YOU BEING HERE. BILL DO YOU HAVE APPROXIMATE BALANCE OF THE CONSTRUCTION COST OUTSIDE OF THE HOTEL?
[INAUDIBLE] >> SO WE ARE LOOKING AT $215 MILLION $6, $200 MILLION PROJECT.
THIS SIZE OF TRANSACTION, MIGHT COMPANY IS NOT INVOLVED IN THIS SIZE TRANSACTION. THESE TYPE OF COMMERCIAL REAL ESTATE TRANSACTIONS RUN INTO THESE TYPE OF SPEED BUMPS, CONTINUOUSLY. JUST SO HAPPENS TO BE HERE, IT'S NOT IN THE SOFT AREA OF THE DEVELOPMENT PHASE IT'S THE FINANCING END WHICH COULDN'T BEEN UNDERTAKEN INTO THE MARRIOTT WAS APPROVED MONTHS AGO.
I WANTED TO COMMENT THEN SECONDLY ON BILL'S COMMENT ON TEN-YEAR BREAK DOWN TIME. MY GUESS IS THAT LITIGATION WILL TAKE THREE YEARS TO WRAP UP. OUTCOME OF THAT IS UNKNOWN.
WE DON'T KNOW WHO IS GOING TO PREVAIL OR OWNING THE PROPERTY BECAUSE THE CITY DOES NOT OWN THIS PROPERTY.
IT WAS MENTIONED THE CITY OWNS IT.
THE CITY DOESN'T OWN IT IT'S OWNED BY AUDUBON.
SO THREE YEARS HIT GAIGS OUTCOME UNKNOWN TWO YEARS RFP WORK TWO YEARS AFTER THE RFP AWARDED AND IT COULD BE 10-12 YEARS BEFORE THIS IS RESOLVED. CITIZENS OF FORT PIERCE DON'T WANT TO WAIT 12 YEARS TO HAVE THIS PROPERTY PRODUCING SO I SUGGEST THIS COMMISSION GRANT THE 180 DAY EXTENSION, SIX MONTHS IS NOT EXTENSIVE AMOUNT OF TIME TO LAND $15 MILLION OF FINANCING. FINANCING MARKETS HAVE CHANGED.
I SEE THAT GOING OUT TO FAMILY OFFICES AND TAKING A SECONDARY MORTGAGE THAT'SY SUGGEST YOUR SOURCES OF FUNDING BECOME MORE NUMEROUS EVERY YEAR. BUT YOU GUYS KNOW WHAT YOU'RE DOING. I THINK THIS COMMISSION WOULD BE IRRESPONSIBLE IF WE SET THE CITY UP TO SAY WE ARE JUST GOING TO TAKE THE PROPERTY BACK BECAUSE THAT'S NOT A SIMPLE ANSWER.
IT'S GOING TO BE YEARS OF LITIGATION, HUNDREDS OF THOUSANDS OF DOLLARS OF LITIGATION KOCHTS AND OUTCOME THAT IS UNKNOWN. YOU GOT MULTIPLE PARTIE INVOLVED. WE HAVE THE ORIGINAL DEVELOPERS LIVE OAK ANTD CITY AND WE ARE GOING TO BE DEAD FENDING MULTIPLE LAWSUITS. HAVING SAID THAT I SUPPORT THE 180 DAY EXTENSION AND I WOULD LIKED TO ASK OUR CITY MANAGER MR. CHESS I KNOW YOU'VE HAD MULTIPLE DISCUSSIONS WITH LIVE OAK. WHAT IS YOUR POSITION? YOU'RE A FINANCE GUY. WHAT IS YOUR POSITION REGARDING
>> OH YES, CUT TO THE CHASE, SIX SMOS A REASONABLE TIME, BUT MIGHT BIGGEST CONCERN IS THAT THE REVERSIONSRY CLAUSE MENTIONINGS WE ARE NOT COVERING DEFAULT AND BREACHES AND IF WE DO, EXTEND IT, WHAT DOES THAT, DOES THAT SET THE TABLE OVER AGAIN? AND IF YOU DO DEFAULT THE NEXT SIX MONTHS DOES REVERSIONARY CLAUSE KICK BACK IN AND YOU GOALS WAIVE RIGHT TO SUIT BECAUSE OF THE EXTENSION? MY CONCERN IS WHAT'S THE CITY LIABILITY AND OUR RISK.
IF YOU DON'T GET THE $15 MILLION DOES THAT REPRESENT A MAJOR BREACH AND THOSE REVERSIONARY CLAUSES IN THE AGREEMENT DO THEY KICK IN HAND DO WE HAVE THE ABILITY TO GET THE PROPERTY BACK WITH LAWSUITS OR YOU'RE DEMARY DETERMINING THERE'S NO LAWSUITS BECAUSE YOU GAVE US EXTRA TIME? SO IT'S THE RISK LIABILITY THAT WE HAVE GIVEN THE EXTENSION OF THOSE COVERING BREACHES AND DEFAULTS WAIVED AND IF THEY ARE GOING FORWARD IF YOU DON'T MEET
[01:00:03]
OR COLLECT THE $15 MILLION DOES THE REVERSERY CLAUSE KICK BACK IN AND YOU GUYS GIVE UP THE RIGHT TO SUIT BECAUSE YOU GAVE UP THE OPPORTUNITY? THOSE ARE THINGS I WOULD BELOOKING AT. >> THE QUESTION ON THAT THEY DON'T OWN THE PROPERTY. AUDUBON IS INVOLVED.
THAT'S HOW COMPLICATED IT IS. >> WE DO HAVE CLAUSES IN OUR AGREEMENT ABOUT THE PROPERTY BASED ON IT NOT BEING DEVELOPED.
I'M NOT THE ATTORNEY BUS JUST SAYING THAT'S WHERE I AM.
FANCY THE QUESTION SIX MONTHS, WE WILL BE IN THE SAME PLACE SIX MONTHS IF THEY DON'T RAILS THE $15 MILLION.
I THINK THE CITY WOULD HAVE GONE FAR AND BEYOND THE CALL OF DUTY TO GIVE THE EXTRA TIME BUT GIVE THE EXTRA TIME DON'T RAISE THE FUNDS WHERE DOES THAT PUT US IN HAVING INTEREST OF WHAT'S TAKING PLACE PROPERTY WISE LIABILITY WISE RISK WISE.
>> ONE FINAL COMMENT CURRENTLY CITIZENS OF FORT PIERCE DON'T WANT TO WAIT ANOTHER DECADE TO HAVE THIS PROPERTY DEVELOPED.
MY PREFERENCE IS GIVE THEM THE TIME RAISE THE MONEY CLOSETH OUT GET SHOVELS IN THE GROUND GET GOING.
THE TAX REVENUE ON THIS PROJECT IS GOIGD TO GO EXTENSIVE WE HAD NEED TO FILL THAT GAP WHAT'S HAPPENING ON AMENDMENT 3 SO HAVING SAID THAT THE SIX MONTHS SEEMS LIKES A REASONABLY SHORT TIMELINE TO SECURE THAT FUNDING AND BASICALLY BOX THIS THING AND WRAP IT UP WITH ABODE AND GET IT UNDER WEIGHED FROM MY PERSPECTIVE. I'LL END THERE.
>> JUST ONE QUESTION. SO, IN SIX MONTHS, IF THE FUNDS AREN'T RAISED WHAT'S YOUR POSITION? COME MARCH, WHERE ARE WE WITH THE PROJECT?
>> HOUR NOT GOING TO HEAR ME TALKING ABOUT LAWSUITS.
>> IF YOU CONTINUE RAISE THE $15 MILLION WHAT'S YOUR POSITION AT THAT TIME? INVESTMENT-WISE? YOU SAID YOU INVESTED EDWARD 28 MILLION.
THE INVESTMENT WISE WHAT'S THE COMMUNICATION WITH THE CITY IF
THE MONEY IS RAISEED. >> I CAN'T ANSWER THAT SITTING HERE RIGHT NOW. I GUESS IT WOULD DEPEND ON THE CIRCUMSTANCES THAT WE HAD FIND OURSELVES IN AT THAT TIME AND HOW WE GOT THERE AND WOULD OBVIOUSLY TALK TO MY BOSS, PAUL AND OUR COUNSEL AND DETERMINE WHAT OUR NEXT STEPS IN TERMS OF POSSIBILITIES R. I DON'T KNOW HOW ELSE TO ANSWER RIGHT NOW.
>> COMMISSIONER JOHNSON INTO THAT'S THE QUESTION.
I'M OKAY WITH THE SIX MONTHS BUT THAT CLIFF IS $15 MILLION.
THAT'S ON YOU. YOU'RE ASKING FOR THAT AND THAT OPPORTUNITY TO RAISE THAT AMOUNT OF MONEY SIX MONTHS SO THE CLOCK IS GOING TO START AT SOME POINT HAT SIX MONTHS AT SOME POINT LEADING UP TO THAT, WE SHOULD HAVE A REALLY GOOD UNDERSTANDING IF YOU'RE GOING TO HIT THIS TARGET IN SIX MONTHS AND SO FROM MY PERSPECTIVE THEN AND I'M NOT A CONTRARYIAN, SO FOR US TO UNDERSTAND FROM A HELD STANDPOINT WHAT IS IN HERE BECAUSE WE DO HAVE REVIRGS. I JUST HEARD SOMETHING ABOUT AUDUBON AND I NEED TO CLEAR SOMETHING UP, BECAUSE YOU GUYS CAME IN AND I THOUGHT ACQUIRED WHAT WAS THEIR --
>> PROPERTY IS NOT TRANSFERRED YET.
>> WAIT A MINUTE. THAT'S THE BREACH OF THE FAULT A MAJOR BREACH IN THAT IS SUPPOSED TO BE, THEY'RE EXPOSED TO BE SOME TYPE OF PRECLOSING AND THE CLOSING OUT OF JULY 15 WHICH DIDN'T HAPPEN SO THE AGREEMENT WITH AUDUBON DID NOT COMMENCE BECAUSE THEY DIDN'T CLOSE ON THE DEAL.
TECHNICALLY AUDUBON STILL HAS THE PROPERTY.
>> CORRECT. >> WHEN WOULD THAT BE CURED?
>> HIP ME GET OVER THAT INDIGESTION I JUST HAD.
SO WE DON'T HAVE TO DEAL WITH THE "A" WORD ANYMORE.
>> OUR INTENT WOULD BE TO CLOSE ON THE PURCHASE OF THE LAND WHEN WE GET OUR HOTEL FINANCING IN PLACE.
>> OKAY. >> BECAUSE IT WOULD INCLUDE NOT JUST THE HOTEL BUT ALL THE INFRASTRUCTURE AND ALL THE INFRASTRUCTURE ENCOMPASSES ALL THE LAND SO OUR LENDERED WOULD NEED A FIRST MORTGAGE ON THE ENTIRE PROPERTY IN THAT MAKES
SENSE. >> HAND THAT CONSTRUCTION LOAN YOU MENTIONED EARLIER THAT WAS IN PLACE OR CLOSE TO BEING IN
PLACE? >> I KNOW FROM A PERMANENT POINT, OUR PLANS ARE PERMITABLE BUT WE KNOW TO GO SECURE OUR FINANCING ON THE HOTEL AND THE INFRASTRUCTURE.
>> OKAY. >> ON THE ENTIRE SITE.
APPROVALS THAT WE HAVE HAD IN PLACE TODAY, HAVE A SITE DEVELOPING THE ENTIRE SITE CLOSING ON THE LAND TO DO THAT
AND BUILDING THE VERTICAL HOTEL. >> OKAY.
WELL, I'VE HEARD FROM CITIZENS HERE.
RIGHT, AND I TOO AM NOT IN SIX MONTHS IS NOT A BIG CONCERN FOR ME. RIGHT.
I CAN DO SIX MONTHS. MY CONCERN IS AS WE HAD GET
[01:05:04]
CLOSE TOWARD THAT CLIFF OF SIX MONTHS WHERE WE ARE, AND AS WE GET CLOSER, I'M GOING TO BE DEALING WITH THE ATTORNEY HERE TO UNDERSTAND THAT AND I ALSO WANT TO KNOW WHERE WE ARE IN POSITION OF GETTING THE OTHER THIRD PARTY OUT.SO WE ARE DEALING WITH MAIN SAIL AS OPPOSED TO COMING BACK WITH THE OTHER ENTITY THAT WAS ORIGINALLY HERE.
SO, SIX MONTHS, SIR? >> YES, CERTIFIED AND IF I MAY, TO YOUR POINT, I'LL CONTINUE MY MONTHLY EMAIL UPDATES, BUT I'LL ALSO CONTINUE MY QUARREL IN-PERSON UPDATES SO I'LL BE HERE AGAIN IN THREE MONTHS WHICH IS HALFWAY THROUGH THE SIX
MONTHS BUT WITH AN UPDATE. >> UPDATE FOR THE PUBLIC SO BUT
>> I HAVE A QUESTION. >> CAVEAT IS WHEN IS THE
AGREEMENT SIGNED. >> OBVIOUSLY.
SO OBVIOUSLY IS YOU HAD MAKE A POINT.
THAT'S WHY I ASK, WHENEVER WE GET THE AGREEMENT DONE IT'S SIX
MONTHS FROM THAT POINT. >> YES, SIR.
>> I GOT THAT PART. >> YES, SIR.
>> I DON'T KNOW HOW LONG IT TAKES.
>> THE CONCERN IS WHEN WILL IT CLOSE WITH AUDUBON? THAT'S OUR CONCERN. WILL THE $15 MILLION BE NEED FOERD THE PROJECT OR ALLOW US TO CLOSE THE DEAL WITH AUDUBON SO
WE HAD CAN MOVE ON? >> THEY'RE ONE AND THE SAME.
THEME HAPPEN AT THE SAME TIME. >> SO WHEN THE $15 MILLION ARE RAILED ALL BE ABLE TO CLOSE ON THE --
>> LET NEED BE CLEAR. WHEN WE HAVE OUR CONSTRUCTION LOAN CLOSING, ON PHASE ONE PURSUANT TO THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT WHICH INCLUDES THE HOTEL AND THE MASTER SITE INFRASTRUCTURE AT THAT CLOSING WE WOULD BUY THE LAND FIRST AND CLOSE ON OUR CONSTRUCTION LOAN.
>> WELL, WOULD THAT HAPPEN IN SIX MONTHS?
>> NO. >> SO WHEN WILL THAT TIMELINE BE? BALLS WE ARE GETTING SIX MONTHS TO RAISE THE 15 MILLION SO FROM THIS PERSPECTIVE WHEN WOULD THE
CLOSING HAPPEN? >> WELL WE STILL HAVE TO DESIGN THE HOTEL. SO WE GOTTING TO GO THROUGH DESIGN SCHEMATIC DEVELOPMENT AND CONSTRUCTION DRAWINGS AND PERMITTING HERE AT THE CITY SO AGAIN IT'S IN THE SCHEDULE IN THE FOURTH AMENDMENT BUT I DON'T RECALL IT OFF THE TOP OF MY
HEAD. >> BUT ULD BE DOING THAT ALL
>> IT'S NOT GOING TO WAIT UNTIL FOR SIX MONTHS?
FOR DESIGN. >> THE DESIGN OF SKE MAT EXHAVE HAD BEEN UNDERWAY FOR A WHILE. WE HAD TO HAVE A WHOLE LEVEL OF THAT TO SUBMIT TO MAYOR YOMT TALK ABOUT FULL ON CONSTRUCTION LOANS WE HAVE TO HAVE THAT SO WE CLOSE ON THE LOAN SAME TIME.
>> YOU'RE SAYING THE LOAN CANNOT BE CLOSED UNTIL YOU FINISH THE
DESIGN FOR THE HOTEL ET CETERA? >> CORRECT.
>> STICKS MONTHS THEY HAD RAISE THE MONEY BUT DOES THAT MEAN WE WILL HAVE A CLOSED WITH AUDUBON? I'M THINKING IN SIX MONTHS WE WILL $15 MILLION TO CLOSE WITH AUDUBON WE MOVE FORWARD WITH THEM. IT'S NOT GOING TO HAPPEN LIKE THAT THEY'LL RAISE THE $15 MILLION.
THEY'LL GO THROUGH THE DESIGN AND CONSTRUCTION FOR THE HOTEL AND DESIGN I SHOULD SAY AND THEN AT SOME POINT YOU'LL CLOSE OUT ON THE LOAN ONCE THE DESIGN IS APPROVED FROM THE CITY.
>> CORRECT. >> PLANNING BUILDING WHAT HAVE
>> UNDERSTOOD. >> QUESTION ON THAT BILL SO ON THAT SEGMENT OF FUNDING, MY NEXT COMMENT IS IT CORRECT LIGHTS LIKE A DRAW SCHEDULE. YOU GET YOUR APPROVAL AND START DRAWING FUNDS WHEN YOU'RE READY TO BUILD?
>> THAT'S CORRECT. >> THEY'RE CHARGING YOU SOME BASELINE FEE ANY TIME YOU HAVE MONEY OUTING YOU'RE PAYING
>> THE MINUTE YOU CLOSE ON THE CONSTRUCTION LINE IF IT'S SIMULTANEOUS CLOSING ON THE LAND YOU'RE GENERATING INTEREST
>> THE CLOCK IS TICKING ON THAT AS WELL.
IT'S COSTING THEM MONEY TO GET PERMITTING IS THAT A FAIR
ASSESSMENT? >> I'M NOT SURE I UNDERSTOOD
WHAT YOU JUST SAID. >> IT'S COSTING YOU MONEY EVERY DAY TO GET PLANS SUBMITTED TO THE BUILDING DEPARTMENT SO CAN YOU GET SHOVELS IN THE GROUND. IT'S COSTING YOU MONEY EVERY
>> THANK YOU. THE ACQUISITION PRICE THE CLOSING SIMULTANEOUS WITH THAT FUNDING MECHANISM SO YOU START INCURRING INTEREST AND PRINCIPAL COSTS IMMEDIATE LID.
>> WHEN WE CLOSE. >> WHEN YOU CLOSE.
>> MR. GAINES. >> COMMISSIONER GAINES.
>> I'M TRYING NOT TO JOIN THIS PARTY BUT I HAVE TO JOIN THIS PARTY NICE TO SEE YOU MR. WARE. YOU ALREADY KNOW WHERE I STAND.
I JUST WANT TO BE CAN CLEAR FROM WHAT I'M HEARING.
I NODE YOU GUYS KNOW YOUR INDUSTRY JUST LIKE I TALKED TO MR. BROAD RIGGED, BUT I KNOW WHERE MY ATTORNEY IS AT.
THAT'S WHERE I'M AT RIGHT NOW. SIX MONTHS.
[01:10:05]
SIX MONTHS DOWN THE ROAD. WE COME DOWN HERE AND YOU LOOK ALL OF US IN THE FACE AND YOU SAY I DIDN'T GET THE $15 MILLION WHO ARE I DID GET WHATEVER MONEY I NEED.NONE OF US KNOWS BUT THAT COULD HAPPEN.
AT THAT JUNCTURE, YOU COULD AT THAT POINT WALK AWAY AND SAY, PROBABLY WON'T GET A PILE OF MONEY BUT YOU COULD.
MY CONCERN IS IF YOU COME BACK HERE IN SIX MONTHS AND THIS FALLS APART, WHAT I JUST HEARD, NOW I HAVE TO DEAL WITH AUDUBON AGAIN BECAUSE AUDUBON OWNS THE LAND, AND AUDUBON HAS NOT BEND HERE DEALING WITH ALL THIS SIX MONTHS AND WHATEVER SO THEY CAN COME IN AND SAY, WILL ALL OF A SUDS HAD NOW, GIVE ME SIX MONTHS, LET ME GOAD TRIED TO FIND SOMETHING NEW BECAUSE YOU GUYS WOULD BE OUT OF IT AND I'M DEALING WITH AUDUBON WHEN I ALREADY THOUGHT AUDUBON WAS ALREADY OUT OF IT.
SNACK DAB IN THE MIDDLE. >> WITH A DEED TO THE PROPERTY.
>> SO, RIGHT NOW FROM WHAT I'M HERDING, FROM WHAT I'M HEARING IT'S ALMOST LIKE MY HANDS ARE TIED BECAUSE IDLE BE HONEST WITH YOU MY HAND ARE TIED BECAUSE WE GOT TO SEE IN SIX MONTHS IF WE COME UP WITH THIS, IF WE DON'T COME UP WITH THIS MONEY
[INDISTINCT]. >> JUST SO I'M UNCLEAR, FOR EVERYBODY'S BENEFIT, AUDUBON OWNS THE LAND TODAY.
>> RIGHT. BUT EYE UNDERDARK I UNDERSTAND.
>> AND IT'S OUR INTENT AS I SAID IN MY PRESENTATION TO NOT PARTNER WITH AUDUBON MOVING TOWARD TO BUY THEM OUT THROUGH A PURCHASE AND SALE AGREEMENT. AND THAT'S IN PLACE.
AND, AGAIN, I'M NOT AN ATTORNEY EITHER AND I STAND TO BE CORRECTED BUT I WANT TO SAY THE ATTORNEYS IN DRAFTING THE PSA, PUT LANGUAGE IN THERE AS IT RELATES TO THE REVERTER THAT REDUCED OR OTHERWISE ELIMINATED OR SET ASIDE -- AGAIN I'M NOT AN ATTORNEY SO I CAN'T SPEAK TO IT. BUT I WOULD SUGGEST THAT YOUR OFFICE LOOK AT THE LANGUAGE IN THE PSA TO GET COMFORTABLE WITH
WHAT THE RIGHTS REALLY ARE. >> LET ME -- ALL RIGHT.
FELT OH COMMISSIONERS MADAM MAYOR LET ME JUST SAY THIS.
MADAM ATTORNEY, YOU CAN TELL ME TO BE QUIET AND I'LL JUST SIT BACK, WHICH IS FINE. WHEN YOU HAVE CONTRACTS AND YOU HAVE CLAUSES THAT ARE BREACHED, AND YOU DON'T ADDRESS CLAUSE WAS BREACHED THAT WOULD BE DEEMED IT WAS ACCEPTED AND WE MOVE ON AND I DON'T WANT TO GET IN A SITUATION WHERE WE COME BACK IN AND SAY YOU KNOW WHAT WHEN YOU SHOULD HAVE SAID SOMETHING ABOUT HAD A BREACH AND YOU DIDN'T AND I ASSUME ALL THAT WAS WAVED.
I'M SPEAKING 8:30 IN THE MORNING BASIC CONTRACT LAW 101, THE PARTS I REMEMBER 8:30 IN THE MORNING I REMEMBER CONTRACT LAW HAND YOU CAN CORRECT ME IF I'M WRONG MADAM ATTORNEY BUT IF YOU CONTINUE ACT ON YOUR BREACHES OR PUT SOMETHING IN WRITING TO SAY WHY YOU DIDN'T ACT TO ME IS DEEMED WAIV AEDAN WE ARE GOING TO BE IN A WORLD OF TROUBLE IF THIS HAPPENS.
YES WE HAD CAN LOOK AT THE MY IN THE SKY AND STAYED THEY'RE GOING TO GO GET THE MONEY. I DON'T KNOW.
I KNOW HOW THE ECONOMY IS GOING ALL AROUND THE WORLD RIGHT NOW.
I TRULY UNDERSTAND. I WOULDN'T WANT TO BE IN YOUR POSITION ANYBODY IF YOU'RE TRYING TO BRING A MAJOR HOTEL INTO DOWNTOWN FORT PIERCE WHERE WE ALL THE MAJOR HOTELS MY FAMILY BEEN HERE SINCE '28. ONLY HOTEL WE GREW UP AND KNEW WAS THE RADISSON ON THE NORTH BEACH.
THAT WAS IT AND AS A LITTLE KID, IF YOU HAD TOLD ME BACK THEN, AS I UNDERSTAND I'D HAVE TOLD YOU THAT WAS A AUTOGRAPH HOTEL AND RADISSON ON THE BEACHED AND EVERYBODY HAD THEIR BANK WEDNESDAYS THERE, EVERYBODY DID EVERYTHING AT THE RADISSON SO I UNDERSTAND THE DIFFICULTIES YOU HAVE IN TRYING TO BRING THIS BUT I ALSO HAVE TO PUT ON MY ATTORNEY HAT AND JUST STAYED HEY, I HAVE TO WEIGH BOTH OPTIONS.
SO I GOT TO ASK COMMISSIONER JOHNSON SAYS INDIGESTION NOT KNOWING AUDUBON, I PUT THAT ON ME.
MAYBE I MISSED THAT PART. I THOUGHT THAT WAS A DONE DEAL.
[01:15:04]
BUT NOW I KNOW IT'S NOT. SO, I'M CONFLICTED RIGHT NOW.BECAUSE WHEN I SAW THIS, I SAID, WE ARE THIS FAR.
WHAT'S ANOTHER SIX MONTHS? IF THEY DON'T DO IT WE ARE GOING TO BE RIGHT WHERE WE ARE RIGHT NOW.
BUT MY HEAD IS GOING ONR AROUND AND LIKED YOU MR. WARE I WASN'T HERD IN TEN YEARS, 2019 AND SOME OF ALL THE OTHER AMENDMENTS THAT WERE SIGNED SO MY CONCERN RIGHT NOW IS IF THIS FALLS THROUGH IN SIX MONTHS, HAVE WE LOST HAS THE CITY OF FORT PIERCE LOST AN
AVAILABLE PIECE OF PROPERTY. >> COMMISSIONER GAINES I HAD A
FOLLOWUP QUESTION FOR. >> THAT'S WHERE I'M AT RIGHT
NOW. >> IT WOULD SATISFY YOUR QUESTION IF THE TECHNICAL DEFAULTS WERE NOTICED NOW MEMORANDUM TO THEM WITH HAD A SIX-MONTH EXTENSION TO CURE?
>> COMMISSIONER BROAD RICK, TO PROTECT THE RESIDENTS OF FORT PIERCE, WE HAVE TO GET SOMETHING IN SOME TYPE OF WRITING AND?
TYPE OF AGREEMENT. >> FOURTH AMENDMENT.
>> RIGHT. >> WE HAVE TO HAVE EVERYBODY SIGN OFF THAT. THERE IS A BREACH AND WE ARE, THIS IS HOW WE ARE DEALING WITH IT.
NOT SAYING THEY DON'T HAVE TO SAY THEY'RE IN BREECHL OR WHATEVER, BUT WE HAVE HAD TO HAVE SOMETHING IN WRITING.
>> I AGREE WITH YOU. >> TO SAY THIS IS WHERE WE ARE.
WE HAD CAN EXPLAIN WHAT HAPPENED.
THEY EXPLAIN WHAT HAPPENED AND GIVE US A WHOLE TIME LINE BUT WE DON'T KNOW, YOU KNOW, WE DON'T KNOW YOU OR I ARE NOT PROMISED TOMORROW. YOU KNOW WHAT I MEAN? WE ARE NOT. SO THERE COULD BE SOMEBODY ELSE SITTING HERE AND LOOKING AT US JUST LIKE WE HAVE LOOKED AT A WHOLE LOT OF CONTRACT YOU SAY EVERY DAY A WHOLE LOT OF CONTRACTS LIKE WHY DID WE GET INTO THIS.
>> RIGHT. >> I'M TRYING TO PREVENT THAT GOING SO COMMISSIONER [INDISTINCT] SAID LET'S GO BACK AND LOOK AT THIS STUFF. IT LOOKS LIKE YOU MIGHT HAVE BEEN THE ONLY ONE UP HERE SO MAYBE IT'S NOT JUST ME.
WE THOUGHT AUDUBON WAS GONE. MAYBE THAT IS ON ME.
I PUT THAT ON ME. THAT'S WHAT I HEARD THAT WE ARE GOING TO SIGN OFFERED AND EVERYTHING WAS GONE.
>> I AGREE WITH YOU ON THE TECHNICAL DEFAULTS THIS NEEDS TO BE COVERED IN THE FOURTH AMENDMENT IN SOME CAPACITY.
I'M JUST NOT SURE HOW AT THIS JUNCTURE.
THAT'S UP TO THE LAWYERS TO FIGURE OUT.
BECAUSE I AGREE WITH YOU SO TECHNICAL DEFAULTS ARE CRITICALLY IMPORTANT AND THEY HAD INTO TO BE MEMORIALIZED IN THE FOURTH AMENDMENT IN SOME CAPACITY.
THAT'S UP TO THE LEGAL MINDS TO FIGURE OUT.
>> SO, COMMISSIONER GAINES I WAS FOLLOWING ALONG AND THINK I I WAS GOING TO GET TO THAT CONCLUSION.
WHAT I'M HEARING IS WE NEED TO HAVE SOMETHING IN WRITING TO PROTECT THE CITY WHEN IT COMES TO THIS BALLS WE ARE REDOING
ANOTHER AMENDMENT, NUMBER 4. >> NOT TO CUT YOU OFF COMMISSIONER JOHNSON NOT TO BE RUDE IT'S NOT REALLY TO PROTECT THE CITY. IT'S TO PROTECT EVERYBODY RIGHT HERE TONIGHT. BECAUSE AUDUBON IS NOT HERE.
>> RIGHT. >> AUDUBON IS NOT HERE, AND AUDUBON HAS THE DEED TO THE LAND.
>> RIGHT. >> SO WE NEED TO PROTECT EACH OTHER BECAUSE IT COULD, I KNOW LITIGATION.
WE COULD ALL BE ON THE SAME SIDE OF LITIGATION SITTING ACROSS FROM AUDUBON SO LET'S PROTECT EACH OTHER.
LET'S MAKE SURE WE ARE PROTECTING, LET'S MAKE SURE WE PROTECT THE RESIDENTS KEEP IT OUR LAND.
>> RIGHT. >> AND THEN MOVE FORWARD.
LIKE I SAID, SIX MONTHS I'VE BEEN ON HERE, I TELL THE STORY, YOU ALL KNOW WHAT I'M ABOUT TO SAY MR. COLLIER YOU MIGHT NOT HAVE HEARD IT. THE DAY I SAT IN THIS SEAT THE AUDIENCE WAS FULL STANDING ROOM ALL AND I'M LIKE ALL THESE PEOPLE COME TO SEE ME ON MY FIRST DAY.
THAT'S HOW I FELT. I DIDN'T KNOW.
I HAD READ THE STUFF, AND IT WAS A AUDUBON MEETING.
IT WAS A KEYS LANDING MEETING AND THE TWO SIDES, I WAS OH, THEY'RE NOT HERE TO SEE ME. SO I TOLD YOU THAT BEFORE.
SO I KNOW THE PASSION OF EACH SIDE.
I KNOW THE PASSION OF EACH SIDE. I KNOW WHAT IT WOULD DO FOR DOWNTOWN FORT PIERCE. I GET IT.
BUT, I'M HEARING A LOT OF STUFF AND MY LAWYER HAD THIS AND MY MIND IS BACKED HERE GOING A THOUSAND MILES AND HOUR A MINUTE. I'M GOING TO SIT BACK.
I PUT ON THE RECORD THAT IF WE ARE GOING TO DO THIS, IF WE ARE GOING TO DO THIS, WE NEED TO HAVE SOMETHING IN WRITING TO PROTECT ALL SIDES, BECAUSE WE ARE TALKING ABOUT TWO PARTIES HERE TONIGHT, BUT IT'S ACTUALLY STILL A THIRD PARTY IN THIS
[01:20:01]
ELEPHANT IN THE ROOM SO TO SPEAK HAND I WANT EVERYBODY TO PROTECT IT BECAUSE I DON'T WANT TO GET BIT DOWN THE ROAD.>> AND I AGREE WITH YOU COMMISSIONER SO I WANT TO CONCLUDE MY COMMENTS SAY I AGREE WITH AND I DON'T KNOW HOW TO BE EXPLAIN TO THE PUBLIC SO IT SOUNDS LIKE SOMETHING BETWEEN OUR CITY ATTORNEY'S OFFICE AND YOUR ATTORNEY.
>> THIS DOCUMENT THAT YOU'RE REFERRING TO IS ALREADY DONE.
AND I SAY IT'S ALREADY DONE BECAUSE THE PURCHASE AND SALE AGREEMENT THAT WAS BLELSED AND APPROVED BY THE CITY ATTORNEY WITH OUR COUNSEL IS PART OF THE THIRD AMENDMENT THAT WAS APPROVED. SO, THAT DOCUMENT THAT YOU'RE HOPING FOR IS ACTUALLY ALREADY IN EXISTENCE TODAY.
>> OKAY. >> I CAN'T SPEAK TO IT AS AN ATTORNEY BUT I KNOW THAT THE CITY HAS BLESSED THAT PSA, THIS ATTORNEY CITY'S OFFICE, SO TO THAT EXTENT, TWHAVRD COMFORT THAT BRINGS YOU IS GOING TO BRING YOU COMFORT.
>> NOT TO CUT YOU OFF. >> I KNEW WE HAD THE DISCUSSION
ABOUT THIS THIRD AMENDMENT. >> YES, SIR.
>> SO THE THIRD AMENDMENT WE HAD TO WAIT FOR YOU GUYS TO SIGN
>> THE FOURTH ONE IS THE ONE WE ARE WORKING ON.
>> COMMISSIONERS I'M SORRY. >> YEAH, ACTUALLY I WAS GOING TO CALL ON YOU NEXT. SO THANK YOU.
PLEASE, MS. WALLACE. >> I'LL DO MY BEST AND I'VE ONLY BEEN INVOLVED FOR A FEW HOURS IN THIS POSITION AND AS I HAVE HAD OPPORTUNITY TO REVIEW THE DOCUMENT, MR. WARE IS CORRECT IN THAT THE THIRD AMENDMENT DID REFLECT THAT THE CLOSING DOCUMENT WAS APPROVED. IT ALSO SAID AT THE SAME TIME WHICH WAS JULY 15TH OF 2026, THAT THE PARTIES WERE TO USE THEIR BEST EFFORTS IN GETTING HOTEL FINANCING SO THAT DEFINITELY WAS A MAJOR PORTION OF THE THIRD AMENDMENT.
THERE'S A FOURTH AMENDMENT THAT I SAW WAS FLOATING AROUND AROUND MAY OF THIS YEAR. OBVIOUSLY IT HASN'T BEEN FINALIZED AND IT JUST ADDRESSED THE HOTEL FINANCING AT THIS POINT TO THE ANSWER COMMISSIONER GAINES' QUESTION IN REGARDS TO DEFAULT AND IF YOU'RE SILENT YOU WOULD WANT YOUR AGREEMENT TO ADDRESS ALL THE DIFFERENT TYPES OF SCENARIOS THAT YOU CAN THINK OF, OF COURSE THERE CAN BE MANY THAT YOU DON'T, BUT A GOOD AGREEMENT IS GOING TO ADDRESS STAIR -- SCENARIOS LIKE BANKRUPTCY AND CERTAIN MATERIALS SUCH AS THE HOTEL FINE ABLGSING COULD BE CONSIDERED A MATERIAL BREACH OF THE AGREEMENT SO YOU WANT IN YOUR CONTRACT TO REFLECT THOSE PARTICULAR SCENARIOSES AND YOU CAN ALWAYS HAVE A CATCH ALL PHRASE SWEMD AND IF YOU CONTINUE ACTUALLY HAVE THAT YOU RUN THE RISK OF GOING TO COURT AND THEN YOU KNOW NOT TO GET INTO LEGALED SE BUTT PAROL EVIDENCE IS WHAT YOU HAVE WHEN YOU DOWN HAVE EVERYTHING IN WRITING SO THAT'S WHAT THE CITY RISKS IF WE DON'T MEMORIALIZE WHAT IT IS WE HAD WANT. I WANT TO REMIND THE COMMISSIONERS THAT BACK IN 2025, THE CITY AND FPRA DID APPROVE THE RELEASE OF REVERTER AS TO THE VILLAS ONLY, SO THAT IS THE ONLY PART OF THIS, WHAT DO YOU WANT TO CALL IT NOT PROJECT BUSINESS DEAL THAT HAS ACTUALLY BEEN RELEASED AT THIS POINT.
SO THE HOTEL IS STILL PART OF THEORY LEASE OR REVERTER OF THE ORIGINAL AGREEMENT. WHETHER IN FACT THAT WE DO A FOURTH AMENDMENT AND HOW DOES THAT IMPACT THE RELEASE OR COM CONCERNED ABOUT I WOULD HAVE TO DO RESEARCH TO FIGURE THAT OUT FIRST. I CAN'T GIVE YOU AND AINS.
>> YOU HAD HEARD OUR DISCUSSION AND YOU KNOW WHAT WE WANT
PROTECTION FOR THE CITY. >> YES, MA'AM.
>> AND I THINK AT LEAST A FEW OF US WANT TO GRANT THE 180 DAYS AND WE HAD WANT TO GIVE THIS PROJECT AS MUCH CHANCE TO SUCCEED. WE WANT TO IT SUCCEED.
THEY WANT IT TO SUCCEED. THEY'VE INVESTED IN IT.
WE HAVE INVESTED IN IT. SO YOU'VE HEARD THE DISCUSSION
AND THE FRUSTRATION UP HERE. >> YES, MA'AM.
>> SO ANY OTHER DISCUSS? >> QUICK FOLLOW UP.
CITY ATTORNEY HOW MUCH TIME DO YOU THINK WOULD IT TAKE TO
[01:25:01]
REVISE THE FOURTH AMENDMENT? >> FOR ME PROBABLY NO MORE THAN A FEW DAYS. I HAVE A SHELL TO WORK WITH SO I CAN GET STARTED ON THAT. [INDISTINCT].
>> THAT WOULD BE PLENTY OF TIME. >> 30 DAYS TO REVISE THE
>> THE FOURTH AMENDMENT. >> I BELIEVE ALSO YOU SPOKE TO HOTEL FINANCING, AND IF IN FACT HOTEL FINANCING IS A PART OF THE FOURTH AMENDMENT WE WON'T HAVE THAT.
THAT'S WHAT WE ARE USING THE SIX MONTHS FOR, TO PROCURE THE EQUITY NECESSARY TO ALLOW US TO GET TO A CLOSE.
>> THAT IS THE FOURTH AMENDMENT. I'M SAYING JUST A DRAFT OF THE
FOURTH AMENDMENT, 30 DAYS. >> OH FOR SURE.
IT'S ALREADY IN PROCESS. >> IT'S ALREADY DRAFTED.
>> FOR SURE. >> I DON'T WANT TO PUT SOMETHING OUT THAT'S IS NOT GOING TO BE FEASIBLE.
>> I WANT TO ASK FOR TIME AFTER MY COMMENTS.
I WANT TO COUNT TO THREE AND PLACE IMPORTANT FACTS IN THE RECORDS AND INFORMATION PROVIDED BY STAFF SINCE I BECAME A MEMBER OF THE COMMISSION IN FEBRUARY 2026, KING'S LANDLORD HAS NOW BEEN GOVERNED BY DEVELOPMENT AGREEMENTS BETWEEN THE CITY OF FORT PIERCE AND THE FORT PIERCE REDEVELOPMENT AGENCY FOR APPROXIMATELY 7 YEARS. THE ORIGINAL AGREEMENT WAS EXECUTED IN 2019. IT WAS FOLLOWED BY AMENDMENT IN 2020 AMENDED RESTATED AGREEMENT IN 2022.
ANOTHER AMENDMENT LATER IN 2022. A SECOND NET IN 2024, AND A THIRD AMENDMENT IN 20256789 EACH AMENDMENT REPRESENTED ANOTHER OPPORTUNITY FOR THE DEVELOPER TO PERFORM.
COLLECTIVELY THESE AMENDMENTS ALSO MOVED THIS PROJECT INCREASINGLY FURTHER FROM THE PROPOSED ORIGINAL SELECTED THROUGH THE CITY'S COMPETITIVE PROCESS.
THAT RAISES A QUESTION WHETHER THE CITY IS STILL RECEIVING THE PROBABLE AND PUBLIC BENEFIT FOR WHICH THIS PROPERTY WAS ORIGINAL AWARDED. THE THIRD AMENDMENT IS ESPECIALLY IMPORTANT BECAUSE IT'S NOT A ROUTINE EXTENSION.
THE PARTIES EXPRESSLY ACKNOWLEDGE THE CITY COULD HAVE PROCEEDED ON DEFAULTS OR BREACHES EXISTING AT THAT TIME.
NEVERTHELESS, THE CITY AGREED NOT TO PURSUE THOSE EARLIER DEFAULTS AND GRANTED THE DEVELOPER ANOTHER OPPORTUNITY TO COMPLETE THE PROJECT. IN EXCHANGE THE THIRD AMENDMENT IMPOSED CLEAR REQUIREMENT YOU HEARD IT FROM THE PUBLIC THAT PUT THINGS IN WRITING. LET'S PUT THINGS AND MAKE SURE THERE'S CLEAR MESSAGES AS TO WHAT WE ARE GOING TO DO.
IT STATES THAT TIME IS OF THENS. IT REQUIRES STRICT AND TIMELY COMPLIANCE. IT ESTABLISHES A JULY 15, 2026 DEADLINE RELATING TO THE HOTEL PARTNER SHIP AND PUMPED AND FINAL CLOSING OF THE HOTEL FINANCING.
THAT'S WHAT WE ARE TALKING ABOUT COMMISSIONER.
IT PROVIDE THAT A FAILURE TO COMPLY PROVIDE A MATERIAL BREACH. ALSO REMEDIES AND RIGHTS OF REVISION THEREOF THE QUESTION BEFORE US IS NOT WHETHER THIS COMMISSION SUPPORTS RESPONSE RED DEVELOPMENT BECAUSE I DO BUT THE QUESTION IS WHETHER THE DEVELOPER COMPLIED WITH THE AGREEMENT AND WHETHER THIS COMMISSION WILL ENFORCE IT.
EXCUSE ME. I'M LIKE THE LIMITED AUTHORITY AVAILABLE TO US UNDER LOMD ACT, THIS COMMISSION HAS DIRECT CONTRACTUAL AUTHORITY AND RESPONSIBILITY CONCERNING KING'S LANDLORD. THAT'S WHY WE MUST EXERCISE THE AUTHORITY CAREFULLY AND TO PROTECT THE PUBLIC INTEREST.
MY POSITION IS THIS COMMISSION SHOULD NOT GRANT ANOTHER EXTENSION BASED ON PERSONALITIES ACCUSATIONS, PRIVATE INSURANCES OR OTHER PROMISE OF FUTURE PERFORMANCE.
WE SHOULD DECIDE THIS MATTER BASED ON THE WRITTEN AGREEMENT AND THE DOCUMENTED FACTS. DID THE REQUIRED POSESR TELL PARTNERSHIP HANDFUL AND FIND CLOSING OF THE HOTEL FINANCING OCCUR ON JULY 13,,, 2026 THE ANSWER IS NOW.
DID THE DEVELOPER COMPLY WITH THE THIRD AMENDMENT.
NO. HAS A MATERIAL BREACH OCCURRED? I SUGGEST AND YOU COMMITTED THAT YES, YOU ARE.
WHAT DEFAULT TERMINATION AND REVERSION REMEDIES ARE NOW AVAILABLE TO THE COMMISSION? THAT'S WHAT WE ARE TALKING ABOUT TRYING TO FIGURE OUT HOW DO WE MAKE SURE THAT THIS CITIZENS' PROPERTY IS PROTECTED EVEN THOUGH IT'S IN A QUANDARY AS WE HAVE LEARNED TO AGAIN TONIGHT. WOULD ANOTHER EXTENSION PRESERVE THE PUBLICS RIGHTS OR WAVE WEEK ENOR POSTPONE THEM AGAIN? I'VE HEARD FROM MY COLLEAGUE TO MY RIGHT THAT WOULD BE ABSOLUTELY TRUE. WOULD A FOURTH AMENDMENT REQUIRE THE CITY TO SURRENDER REMEDIES IT ALREADY POSSESSES? THAT'S A CONCERN AND THAT NEEDS TO BE FINKED OUT IF THERE'S A MOVE TO GET TO IT ON THE FOURTH AMENDMENT.
[01:30:04]
MOST IMPORTANTLY AFTER APPROXIMATELY 7 YEARS AND MAKEUP AMENDMENTS WHAT MATERIAL EVIDENCE EXISTS TODAY THAT WAS NOT PRESENTED WITH THE PREVIOUS REQUEST FOR ADDITIONAL TIME.THE CITY HAS ALREADY GRANTED REPEATED OPPORTUNITIES, THIRD AMENDMENT WAS NOT ANOTHER INFORMAL PROMISES.
IT IT WAS A NEGOTIATED AGREEMENT THAT RECOGNIZED EARLIER DEFAULTS, BEGAN ANOTHER OPPORTUNITY, IMPOSED NEW DEAD LINES, REQUIRED STRICT COMPLIANCE DECLARED THAT TIME THE DEVELOPER WAS GIVEN A FINANCED PATH FORWARD AFTER THE COMMISSION DID NOT SUPPORT THE REQUEST FOR APPROXIMATELY $15 MILLION IN CITY PARTICIPATION. WE ARE NO LONGER DECIDING WHETHER TO GIVE THIS DEVELOPER AN OPPORTUNITY.
THE HISTORICAL RECORD ESTABLISHES THAT THE CITY HAS DONE SO REPEATEDLY. WE ARE DECIDING WHETHER THE DEVELOPER HAS PERFORMED. MY OPINION, THEY HAVE NOT.
PUBLIC WATER FRONT PROPERTY HAS BEEN CONTROLLED UNDER THIS DEVELOPMENT ARRANGEMENT FOR APPROXIMATELY SEVEN YEARS, THE PROMISE HOTEL HAS NOT BEEN DELIVERED BASED UPON THE RECORD PRESENTLY AVAILABLE TO ME. THE REQUIRED HOTEL FINANCING DID NOT EXIST ON JULY 15TH AS PROMISED THE CITY HAS ALREADY EXTEND AMENDMENT MULTIPLE TIMES AT SOME POINT THE EXTENSION CEASES TO BE A KOOFNTION AND REFUSAL TO ENFORCE THE AGREEMENTS. SO I'M GOING TO MAKE A MOTION, AND ACCORDINGLY, SUBJECT TO CITY ATTORNEY CONFIRMING THE PRECISE NOTICE AND PROCEDURAL REQUIREMENTS I MAKE THE FOLLOWING MOTION: I MOVE THAT THE CITY COMMISSION AND THE FORT PIERCE AGENCY DETERMINE BASED UPON THE CONTRACTUAL RECORD THAT AUDUBON INC. AND LLC FAILED TO SATISFY THE APPLICABLE REQUIREMENTS AND THE JULY 15TH, 2026 DEADLINE ESTABLISHED BIT THIRD AMENDMENT THAT THE CITY AND FPR DECLINED TO EXTEND APPROVE A FOURTH AMENDMENT AND THAT THE CITY ATTORNEY BE DISTRICTED TO ISSUE ALL NOTICES REQUIRED BY THE GOVERNING AGREEMENTS AND TAKE ALL LEGALLY AUTHORIZED STEPS NECESSARY TO DECLARE DEFAULT, TERMINATE THE DEVELOPMENT AGREEMENT ENFORCE THE CITY VIABLE REM DAINS PURSUE REVERSION AND RETURN KING LANDING TO THE CITY OF FORT PIERCE THAT DIRECTION SHALL PRESERVE ALL RIGHTS AND REMEDIES OF THE CITY, THE FPRA AND SHALL NOT EXIST BREACHING OR RIGHT OF REVERSION.
>> THERE'S A SECOND. >> NO SECOND -- GUYS FOR LACK OF SECOND? IS THERE --
>> MAKE ANOTHER MOTION. >> YES, SIR.
>> APPROVE THE SIX MONTH EXTENSION SUBJECT TO ACCEPTABLE FOURTH AMENDMENT DRAFTED BETWEEN OUR CITY ATTORNEY AND THEIR ATTORNEY, AND SUBSEQUENTLY APPROVED BY THIS COMMISSION, AND
>> SECOND. >> HOLD ON I'LL ADD ONE OTHER
SECOND. >> 30-DAY PROVISION TO GET THAT
DRAFTED AND READY FOR SIGNATURE. >> OKAY WITH THAT.
>> MADAM, I HAVE ONE QUESTION AND THIS -- FOR YOU DIRECTION TO THE CITY ATTORNEY AND ASSURE THERE'S A FOURTH AMENDMENT WE ADDRESS THE TECHNICAL DETAILS OF THE BREACH
COMMISSIONER GAINES MENTIONED. >> GOT TO BE ACCEPTABLE.
LEGAL -- AND ALSO GOING FORWARD IN THAT AMENDMENT, IF THERE IS A MAJOR BREACH IT NEEDS TO BE DETERMINED WHAT THAT IS AND WHAT OUR REMEDIES ARE, AND ALSO WE CAN ADDRESS THE AUDUBON LIVE OAK PURCHASING SALE AND ANY REVISIONS THAT WOULD GO BACK TO LIVE OAK PERHAPS THEY CAN GO BACK TO THE CITY. JUST THOSE ARE MY THOUGHTS.
I DON'T KNOW HOW THAT WORKS OUT% BUT CERTAINLY WE NEED TO ADDRESS THOSE BREACHES. TECHNICAL BREACHES.
>> GOT TO BE -- LEGAL COUNCIL HAS TO GET THIS
STRAIGHTENED OUT BASED ON -- >> YOU'VE HEARD THE DISCUSSION OF THE COMMISSION AND I THINK YOU KNOW OUR CITY WE WANT OUR CITY PROTECTED AND MS. WALLACE AND OUR STAFF MS. HARNAGE AND
YOU, YOU'VE HEARD WHAT WE WANT. >> YOU'VE HEARD OUR COMPLEXITIES AND THE FINAL DRAFTING OF THE FOURTH AMENDMENT OUR CONCERNS NEED TO BE ADDRESSED IN THAT DOCUMENT.
>> UNDERSTOOD. >> OR IT'S NOT GOING TO GET
APPROVED. >> I WON'T UNLESS IT IS
ADDRESSED BY THE CONCERNS. >> EVERYBODY CLEAR ON WHAT WE'RE
>> YEP. >> CALL THE ROLL PLEASE.
>> THANK YOU ALL VERY MUCH. THANK YOU VERY MUCH.
>> WE HAVE NO FURTHER BUSINESS. I THINK WE ARE ADJOURNED.
[01:35:01]
WE'LL -- PLEASE EXIT THE CHAMBERS.WE'LL BE TURNING OUT THE LIGHTS YOU WANT TO TALK TO ANYBODY.
YOU CAN TALK TO THEM
* This transcript was compiled from uncorrected Closed Captioning.