Performing Arts Center pact faces another delay

Seeking the green light to advance to the next design phase for a new Sarasota Performing Arts Center, the status of the public-private joint venture remains decidedly yellow.

The delayed and oft-revised implementation agreement between the city and the Sarasota Performing Arts Foundation remains under revision as the Sarasota City Commission has parsed the language of the document that obligates both parties beyond the conceptual phase provided by project architect Renzo Piano Building Workshop.

As evening loomed near the end of a lengthy meeting with a complex hearing remaining, Monday’s discussion concluded with no resolution other than requested changes to make to the agreement to be brought at a special meeting to be held prior to the May 5 City Commission meeting.

Much of the discussion focused on the cost of the project — now estimated at $365 million, $407 million including escalation — split equally between local government and the Foundation. Whether the local government involvement includes Sarasota County remains to be seen.

Of the total project cost, 50% is in public dollars, mostly revenues derived from the tax increment financing district around and near The Bay park, where the new SPAC would be located. Other public sources include penny tax revenue and local, state and federal grants. Should the county, which it has thus far, demonstrated little interest, choose to participate in the project, the city and county would each cover 25%. 

The interlocal agreement between the city and county dedicates the TIF revenue to The Bay park improvements and capital projects within it, as well as improvements to streets and accessibility around the park, making the SPAC eligible for that funding.

At current projections based on 2024 property taxes collected, the TIF would generate $376 million combined city and county revenue through its expiration in 2049. If the city has to go it alone, it would have $188 million, not including its remaining obligation to fund its portion of The Bay park build out. That is currently in the second of three, perhaps four, phases. The city’s total obligation to the SPAC, minus the county, projects at upward of $383 million — $160 million in financing costs — including construction of parking facilities and site work.

The financing model shows $27 million in revenue from a $5 ticket surcharge to apply toward revenue bonds with parking revenue, which would be applied to a parking bond, to be determined. 

The TIF revenue, though, is based on current tax value within the district. Foundation financial consultant Alex Stokes of HR&A Advisors, though, projects the TIF will generate $775 million by 2049, $387.5 million collected by the city. That estimation includes improvements as residential towers in The Quay either under construction or approved, the redevelopment of the Hyatt Regency and multiple other projects within the TIF district.

Taxes collected on the improved value of the properties, benchmarked against 2019 assessed value, is for The Bay park capital improvements.

“What we look at, and always have looked at from the beginning, are individual built property sites within the TIF district, what the city has approved, what's under construction, what's on the tax rolls that just started paying but wasn't in the last year's model,” said Bill Waddill of project consultant Kimley-Horne. ”It's a very detailed analysis of what the city has already approved and is either under construction or about to be under construction.”

As for the philanthropic half of the financial equation, Foundation CEO Tania Castroverde Moskalenko told commissioners the organization cannot begin to raise funds until the city demonstrates its commitment to the project.

“They're hesitant to make a commitment, whether it's $50,000 or $10 million without seeing a commitment from the city,” Castroverde Moskalenko said of donors. “This is one of the reasons why we are eager to get an approval of the implementation agreement, even if it is a conditional approval or a two-step approval, where we come back to you with an alternate design — an alternate site — so that we can start working on that philanthropic campaign.”

That “alternate site” is a location south of the 10th Street boat basin. The current design places the main, 2,700-seat theater on a portion of the boat launch parking lot at Centennial Park and a multi-purpose building hovering above the canal. To move the complex south, either resolve a view corridor restriction for two condominium buildings across Tamiami Trail or lower the building to remain below the 90-foot height restriction on any new structure on the current Van Wezel parking lot. 

During discussion, Vice Mayor Debbie Trice sought assurances, before the city signs off on the next phase of design, to keep the functionality plan of the new facility.

“Ultimately, the reputation of this design team, our careers, rest in delivering functional and beautiful buildings,” said Cortez Crosby of project consultant The Paratus Group, which specializes in delivering cultural spaces. 

Throughout the hearing, Renzo Piano architect-in-charge of Kerry Joyce, here from his home office in Genoa, Italy, sat in the audience listening to the machinations of American local government at work. Invited by Castroverde Moskalenko to make a few remarks before returning home, he offered the assurance sought by Trice.

“I wanted to address some of the points you made earlier, vice mayor, and assure you that design is not a linear process,” Joyce said. “You've seen this in The Bay park Phase 1. It's not that the very first design on paper is what we see. It's a process that's informed by many factors on the site, and we wouldn't be good architects if we didn't come here and ask questions. 

“We asked questions of the city commissioners. We asked questions of our clients, both on the city side and the foundation side,” he continued. “We’ve done this process. It happens on every project we do across the world. All the concerns that you raised will be addressed, and we will continue to study them in this next phase.”