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Panama City, Fla., Board Explores Depot Options

Posted on: Thursday, 8 September 2005, 00:00 CDT

Sep. 7--PANAMA CITY -- A new redevelopment proposal for the Bay Line Railroad train depot property offers an option for the City of Panama City to purchase the depot's two-story building and restore it, if the city wishes to take on restoration costs.

The Downtown Improvement Board directed Executive Director Debbie Glick on Tuesday to negotiate a train depot redevelopment agreement with 450 6th Street LLC, a development group led by managing member George Kingston. By a 4-1 vote, with Edward Hutchison abstaining, the DIB asked Glick to bring a contract to the DIB's next meeting for a vote. Board member John Bozarth cast the lone dissenting vote.

The Kingston group's proposal was one of three considered by the board. Harrison, Sale, McCloy & Thompson and the Focus Group/Investments & Realty also submitted proposals.

"Kingston, far and away, to me had the best proposal," said board member Bayne Collins, although he questioned why none of the proposals matched the 11-acre property's appraised value of $1.8 million.

In its proposal, the Kingston group offered an "as is" purchase price of $1.1 million for the 11-acre property. The group's project emphasizes both residential and commercial development, but excludes restoration of the existing train depot building.

For an option price of $10, the City of Panama City can acquire the two-story Bay Line Railroad train depot building, provided the city exercises the option within a year of the sale.

According to the proposal, the option term would allow the city time to finalize plans for restoration of the train depot building and secure appropriate financing and/or grant sources.

If the city acquired the train depot building, it would assume all environmental remediation responsibilities for the structure. Should the city decline to exercise the option, Kingston would be responsible for the building.

The development group states in its proposal that it would "probably be economically not feasible for a private developer to save it," referring to the train depot building.

At the DIB's Aug. 26 meeting, Board Chairman Dwight Hicks said a contractor who looked at the building told him it would cost about $1.5 million to bring the building up to code, because of asbestos, lead paint and roof problems.

Attached to Kingston's proposal was a preliminary cost estimate for the property's environmental cleanup, conducted by Environmental Planning Specialists of Douglasville, Ga.

The company put the cost at $351,000 to $421,000, based on on-site information already compiled by Southern Earth Sciences and the Florida Department of Environmental Protection.

Kingston's group said it was willing to put $421,000 into escrow for cleanup purposes. Any monies not spent for that purpose would be turned over to the DIB upon cleanup completion.

If cleanup comes to more than $421,000, Kingston would assume any remaining costs.

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Copyright (c) 2005, The News Herald, Panama City, Fla.

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Source: The News Herald

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