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Lakeland city commissioners are edging closer to a deal to sell three Mass Market-area buildings to their current tenants at discounted rates.
They plan to vote Dec. 15 on the Community Redevelopment Agency’s plan to sell 820 and 830 N. Massachusetts Ave. and 310 Plum St. to the businesses operating there — Haus 820, DOU Bakehouse and Market Lofts Apartments.
However, a unanimous final decision is unlikely. Commissioners spent 1 hour and 34 minutes of a nearly seven-hour meeting Monday debating how much of a discount tenants should receive for past rent, previous improvements and planned upgrades.
City to draft new deals
During the meeting, Mayor-elect Sara Roberts McCarley won a 4–3 vote to have city staff draft three separate sale agreements that give tenants 100% credit for past rent paid and 100% credit for prior capital investments.
Commissioners Guy LaLonde Jr. and Bill Read opposed the 100% credit for past rent. LaLonde called full rent credit “over and above,” saying he might support 20–30% credit.
The sale terms also address future expenses. In the new agreements, McCarley and Mayor Bill Mutz asked that the costs of future improvements be split into pending required repairs, like those for hurricane damage, and future business expansion.
Commissioners agreed that the CRA has a duty to cover Hurricane Milton-related damage by restoring the buildings or giving the buyers credit for the cost of repairs.
But commissioners Mike Musick and Chad McLeod had reservations about subsidizing future improvements or remodeling.
Stephanie Madden opposed reopening the terms and said she supported giving full credit for everything. She said the rent credit was “very minimal.”
‘I feel rushed’
Commissioners agreed that the businesses have greatly improved a formerly-blighted area, and the city wants to see them succeed. However, some are concerned that they’re moving too fast.
“I feel rushed,” Musick said. “Do they have to have this deal today? We’re still talking about parking, we’re still talking about appraisals. There’s so many things that we have to do.”
Musick said that although the tenants and CRA have been discussing the sales for several years, the commissioners have had only two weeks to consider the terms.
“What I don’t like is I feel like I’m backed into a corner because this came up quickly for me,” Musick said. If pressed to vote Monday, he said he’d vote “no.”
CATCH UP ON THE DEBATE
Lakeland Commission to Consider Selling Mass Market Properties at Steep Discounts
Proposed deal would give Haus 820, DOU Bakehouse and Market Loft Apartments six-figure credits for past rent and improvements
Lakeland Commission Splits Over Mass Market Property Discounts
City staff is asked to revise property deal for Dec. 1 meeting as debate reveals wide divide on incentives.
What’s next
On Nov. 17, commissioners asked city staff to get updated appraisals for the Haus 820 and DOU Bakehouse properties, subtracting nearby lots for parking. The city plans to lease the lots, not sell them, because consultants have flagged the parcels as potential sites for a future parking garage.
Community and Economic Development Director Brian Rewis said the appraiser was unavailable during the two-weeks since the Nov. 17 meeting, which included the Thanksgiving holiday. He anticipates updated figures by the next meeting.
City staff is expected to bring three separate sale contracts to the Dec. 15 meeting. The deals will include:
- Adjusted property values without the parking lots
- A guarantee that the city will provide parking for the businesses to lease
- Full credit for past rent and past improvements
Everything else — including how to treat future capital improvements — is likely to be debated again before a possible final vote.
The Dec. 15 meeting will be the last for Mutz and Read. New commissioners Ashley Troutman and Terry Coney will be sworn in Jan. 5.
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