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HomeMy WebLinkAboutMinutes Watershore And Beach Advisory Committee - 01/09/2002 - Special Minutes Special Called Meeting Water/Shore Advisory Committee Meeting Joint Meeting with Park Advisory Board Wednesday, January 9, 2002 Members Present: Tom Anderson, Frank Beck, Alan Dinn (Chairman), Dr. Oscar Garcia (2), Dan Leyendecker (1), Steven Moody (Vice Chairman) (3), Dr. JoAnna Mott (1), Terri Nicolau(1) and Roy Pell Staff Present: George Noe, Deputy City Manager, Marco A. Cisneros Director of Park & Recreation, David Ondrias, Assistant Director for Operations, Peter M. Davidson, Marina Superintendent and Benita Brunner, Management Aide Call to Order: Chairman Dinn called the special called Water/Shore Advisory Committee, held jointly with the Park Advisory Board, to order at 5:02 p.m. in the Basement Training Room, City Hall. Presentations and/or Public Comment: Presentation on Marina R.F.P. Recommendations: Mr. Noe reported beginning the process of soliciting input/feedback regarding the Staff recommendation of a proposal received in response to the City's open- ended effort to obtain creative ideas for long term development, utilizing existing land as well as on-going development, in the Marina. The goals were to continue to improve the Bayfront;. continue to improve the Marina; offer new resident and visitor attractions; generate new commercial and/or entertainment opportunities; and to improve the Marina Fund Balance. The objectives were to provide for management of the Marina's daily operations, slip rentals, lease management, maintenance, marketing, fuel service, wastewater pump out service and security; fund and create additional Marina development, commercial/retail venues, restaurant venues entertainment venues, tourist attractions; and to incorporate Marina development into the Seawall Restoration Project. The RFP expectations were to receive response from experienced development teams with a clear vision for Marina development, previous waterfront project success, previous marina operations experience, the availability of financial resources and ultimate project elements (high quality environment; maximum long-term revenue generator for the development team and the City; win-win proposition for both parties; and development team committed to Corpus Christi and its success). Mr. Noe complimented the Marina Staff for their outreach efforts. More than 1,200 letter were distributed; sixty-nine packets were requested; seven of ten responses did not meet RFP requirements and the evaluation team selected three proposals (Corradino Group, Inc. - Houston, Texas; International Marina Group -Dallas, Texas; and Landry's Restaurants,Inc. -Houston,Texas)to continue through. the interview process. City Staff will continue negotiating separately with Leon Loeb on his South Wharf Project Proposal, as presented to the Water/Shore Advisory Committee and Park Advisory Board, which fits in with the proposals received in response to the RFP. Mr. Mr. Loeb is aware his project will require an election because in involves property under the City Charter. Mr. Loeb was not interested in any development apart from the South Wharf Project. Water/Shore Advisory Committee Meeting -1- January 9,2002 Corradino Group Proposal - The proposal title is "El Puerto de Corpus Christi" and is a very broad design group with a strategy for mixed use of restaurants, shops, hotels, offices, apartments, condominiums, boat sales, etc. on three land areas with distinct themes of entertainment/resort island/boardwalk, seaside urban village and maritime center. This would be a$72 Million project with the potential for 977 new jobs, salaries of$20 Million, sales of$49 Million and $3.5 Million in area taxes. The Corradino Group has no previous waterfront experience or previous marina operation experience. International Marina Group Proposal-The group operates marinas across the country. Their concept was for a mixed-use proposal with a future master plan. They have ideas about what they want to do but opted, instead of submitting a development proposal, to come back later to partner with someone. Their goals are to provide access for more/larger vessels, a fisherman's wharf, funding for a Columbus Ships exhibit and to provide family entertainment opportunities. This would be a $8.2 Million project to include a 400 space dry stack, 100 wet slips, restaurant/recreation area, Columbus Ships area, entertainment facility and fisherman's wharf. International Marina Group has 17 years experience with fresh/salt water marinas, own/operate nine company-owned marinas (four in salt water) and partially own/operate thirteen partnership-owned marinas (one in salt water). Landry's Restaurants, Inc. Proposal - The proposal title is "The Texas Boardwalk - The Freshest Catch in Family Fun" with an in-house company development team. Landry's in- house teams would perform the design and construction projects. The proposal is a combination of the existing Joe's Crab Shack, relocation of the Landry's facility and the addition of an Aquarium Restaurant and Rainforest Cafe with rides and amusements. The proposal includes three distinct land treatments offering a parking lot facility, restaurants/entertainment facilities and consolidation of Marina facilities. The estimated project construction cost is $37 Million. The proposal also calls or a water taxi service between the L/T-Heads, marina support facilities including restrooms and a potential future phase for development of a hotel. Landry's operates the Kemah Boardwalk and Marina in Kemah, Texas and has two years operating the Kemah Marina next to the Kemah Boardwalk. Proposal/Concept Evaluation: Marina Operations Development Waterfront Concept Concept Experience Funding Corradino Group Weak Strong None Weak International Marina Strong Weak Yes Weak Landry's Restaurants Weak Strong Yes Strong Mr. Noe reported that process from here is to select a preferred development team,negotiate a memorandum of understanding (MOU) with the team and to develop the lease and legal documents with the development team using the MOU as the basis for a future development agreement with the development team., The MOU is the formal document that lays out the specific points that each party will seek to provide; is used as a basis for future negotiations between the parties; is used as a framework for the development of a future contractual Water/Shore Advisory Committee Meeting -2- January 9,2002 agreement; seeks to be a goodwill, non-binding document that sets out what each party hopes to accomplish. City Marina Lease Timetable: City Council Executive Session 01/08/02 Public Presentations 01/09/02-03/26/02 City Council Presentation 03/26/02—(now changed to 03/19/02) Development Team Selection 03/26/02 MOU Negotiations 03/26/02-05/28/02 MOU Approval 05/28/02 Lease Documents Negotiations 05/28/02-09/24/02 Lease Documents Approval 09/24/02 City Advisory Committee review are included during this time period. Mr. Noe reported the Staff recommendation is to select Landry's as the preferred development team with whom to negotiate the MOU. He added that City Staff would continue to negotiate simultaneously and separately with Mr. Loeb on the South Wharf Project. Mr.Noe offered to answer questions regarding his presentation. Jerry Vaughn commented about having been a Marina tenant for approximately 16 years; adding his name to the waiting list at Port Aransas Marina; boaters/boating interests not being considered (inadequate parking or easy access to piers); the Bay Yacht Club could be destroyed or forced to move; parking not being available for the 200+ attending the Navy Regatta registration party; expressed concern that the T-Head might become an amusement park instead of a place for boating interests; that Landry's does not care about boaters; - strongly suggested that someone visit with Kemah tenants whom are reported to be extremely unhappy with Landry's management; commented that occupancy might suffer another mass exodus. He extended an open invitation for the Corradino Group's presentation at the BYC at 6:30 p.m. on Thursday, January 10, 2002. • Gilbert L. Welch with International Marina Group stated he was available to answer questions regarding his company's proposal. Mr. Welch commented that his group has many years of marine experience; is currently involved with marinas throughout the United States; owns property valued at$120Million; and could finance the project in-house without support from the financial community. They were rated weak on terms of development but, not being a local company, they felt they did not have a good enough feel for the city; that they needed input to determine proper development that would best serve the city. He expressed concern about developing large scale projects in the Marina that would block the view of the city and take up land available for tenant use; that adequate land was available in close proximity to the Marina for hotel/condo buildings. He was concerned that the suggested shuttles would make it difficult to enjoy the Marina; commented the Marina has the capacity to grow and about the importance of concentrating on marine related amenities (boat sales, dry stack, etc.)to better serve the boating public. Henry Berryhill recalled having fell in love with the city upon first seeing the view along the bayfront; commented that no other city has a bayfront that could equal that of this city; Water/Shore Advisory Committee Meeting -3- January 9,2002 . commented that a ferris wheel in the downtown area was tacky; and expressed reservations about locating multi-story buildings along the bayfront given FEMA concerns and the fact that numerous tracts of land currently for sell in the downtown area. Discussion followed regarding the City Staff recommendation being in support of the Landry's proposal; Dunn & Bradstreet performing financial background checks on each ' proposer; if MOU fails with Landry's, City Council will have to decide how to proceed (selector another; back off or take different direction); concept was that commercial development could provide funding and capitol investment to support the long-term infrastructure needs of the Marina facility because the current operation does not generate sufficient capitol to do so; the City will contribute nothing toward infrastructure development/improvement during the project; City recognizes the market value of the facility and the goal is to receive market compensation; interest in maximizing economic benefit to the marina community of the facilities in the Marina; requirement to honor terms and conditions of existing leases with the City; suggestion that Marina tenants/interested parties be surveyed regarding their comments/suggestions; concept for creating TIF to support infrastructure via project building on Lawrence Street and leaving City to handle boat slips; timetable; presentations to interested parties being same as presented at today's meeting (until the 3/26/02 [now 03/19/02] presentation which will include any modifications requested by various boards/committees); and effect of/impact by Seawall Restoration Project. Chairman Dinn ended discussions in order to allow the Park Advisory Board to conduct its business. He extended an open invitation for public comments regarding the three proposals to occur at the Water/Shore Advisory Committee meeting scheduled to be held at 5:30 p.m. on Thursday, February 7, 2002 in the Basement Training Room of City Hall, 1201 Leopard. Adjournment: As there was no further busines the meetin: was adjourned at 6:06 p.m. 9 r Peter M. Davidson Marina Superintendent Water/Shore Advisory Committee Meeting -4- January 9,2002