5-minute read
Lakeland city commissioners spent nearly two hours Monday wrestling with how much of a discount — if any — should be offered to three businesses hoping to buy the Midtown properties they currently lease from the city’s Community Redevelopment Agency.
The discussion grew tense at times as commissioners questioned whether steeply reduced sale prices for Haus 820, DOH Bakehouse and Market Lofts Apartments would be fair to taxpayers or would set a precedent for other businesses seeking similar treatment.
In the end, the board voted 5-2 to send the proposal back to staff for revisions and return with an updated version on Dec. 1. Commissioners Bill Read and Guy LaLonde Jr. were opposed, saying more time was needed to fully review the plan.
Community & Economic Development Director Brian Rewis cautioned that the quick turnaround may be difficult with the Thanksgiving holiday approaching. “Two weeks is going to be tight,” he said, “but we’ll do our best.”
Parking parcels removed; credits to be itemized
Commissioners asked city staff to break down the proposed credits in greater detail — separating past improvements from future promises, and necessary repairs from business-related customizations. They also asked them to leave two parcels intended for parking out of the sale.
Haus 820 and DOU Bakehouse were slated to buy parcels at 830 and 902 N. Kentucky Ave., respectively. However, Rewis advised that selling the land outright would relegate the parcels to surface parking “in perpetuity,” which is “about the very worst use of dense urban real estate.”
If the city retains ownership of the land and leases it to the businesses, Rewis said it could build a parking structure in the future if a developer transforms the nine-block Mass Market area into a busy mixed-use center.
Tenants make their case
Representatives from all three businesses spoke, urging commissioners to recognize their investments and long-term commitments to Midtown.
Haus 820 owner Laura Shannon became emotional, describing the financial strain and stress of continuing to serve clients despite substantial damage from Hurricane Milton.
“We lost the ability to offer and then market the amenities that are vital to our business plan,” including private suites, she said. “We are still operating out of a building with half-finished walls.”
She said the potential purchase and CRA support were crucial to staying viable.
Commissioners were sympathetic but split on how far to go.
Debate over ‘how much is too much’
Some commissioners said the CRA’s goal is to spur redevelopment — not make a profit — and helping established businesses transition from tenants to owners would bring stability to an area that is still blighted.
Others pushed back, saying the current discount levels — as high as 65% for DOU Bakehouse — are too steep.
- Commissioner Chad McLeod raised concerns about creating an expectation that other CRA tenants will receive similar deals. “Are we prepared, if we were to do this deal, to offer the same types of terms to other properties? What does that mean?”
- Commissioner Stephanie Madden empathized with tenants who were still dealing with hurricane damage and said the CRA should have been a better landlord. She also said it was important to be fair. “This is tricky … In my personal opinion, I wish we would have done more for The Well.”
- Commissioner Mike Musick said the commission’s job should be oversight — making sure deals protect public interests — not hammering out the fine print in public view. “What I don’t want is commissioners being thrown into the role of negotiator from behind this dais,” he said.
- Commissioner Guy LaLonde Jr. said he supports the businesses, but between capital investment and operating subsidies, the CRA invested $8.23 million in the properties in question. “Under this proposal, taxpayers would only get back $2.31 million … 28 cents on the dollar.” He said he would be willing to credit a portion of the tenants’ past rent, but not 100% of it. “Every business pays rent; and it’s already at a modified rent price below market value.”
- Mayor-Elect Sara Roberts McCarley said she didn’t want to slow things down further, because “the business owners are hemorrhaging money every day.” But she said she was frustrated by a process that was “muddy” and “wasn’t as thoughtful” as it should have been.
- Commissioner Bill Read said he was strongly opposed. “The numbers that we got from our fellow commissioners are staggering, what we’re going to give away. … If we set a precedent like that, we’re going to eat it for years and years and years to come.”
- Mayor Bill Mutz said it was important to craft a deal quickly, for the business’s sake. But recognizing the commissioners’ concerns, he said he wasn’t pushing for an instant decision. He rallied the group to have staff rework the proposal.
Rewis said he was eager for guidance from the commission. “If there’s feedback you can provide, I know my staff would welcome it. Heck, we long for it.”
He also said that, while the discounts might not create a legal precedent, “It absolutely creates expectation among others who’d like the same treatment.”
What’s next
The revised proposal is expected to return to the City Commission on Dec. 1.
Commissioners emphasized that the new version must clearly show how each credit was calculated so they can strike what they repeatedly called “the right balance” between supporting longtime Midtown businesses and safeguarding public assets.
Read noted that he and Mayor Mutz only have two more meetings on Dec. 1 and Dec. 15 before Terry Coney and Ashley Troutman take their places on Jan. 5. If the issue isn’t resolved by the end of the year, they won’t be part of the decision.
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Cindy, glad you are on board. My thought was why isn’t the story about 122 children being rescued around the Central Florida area not being blasted as big news and make sure it gets on the National News. That could replace this government crap.