If you hate math, avoid today’s city council debate over Boca Raton’s proposed downtown redevelopment plan.
Beyond all the impressive renderings and impassioned debate is this question: Would Terra/Frisbie’s plan be a good deal for the city? And that depends on math.
Before the council for its 10 a.m. meeting are final versions of the master partnership agreement with Terra/Frisbie and the lease for 7.8 acres of land west of Second Avenue. The basics have not changed, but to review:
East of Second Avenue, Terra/Frisbie would build 765 apartments, 182 condos, a 180-room hotel, 85,000 square feet of shops and restaurants and 120,000 square feet of office space. A grocery store is planned for the ground floor of the office building. Also on the east side would be a $30 million parking garage that the city would pay for.
West of Second Avenue would be a new city hall, community center and police substation, with the headquarters moving to Spanish River Boulevard. There also would be 15.6 acres of parks and recreation facilities—tennis and basketball courts and a playground. That’s more than double the space for the current tennis center, softball fields and skate park.
Supporters, who include four of the five council members, say the project would create a dynamic downtown gathering place and destination and benefit the city financially. Opponents, notably Save Boca, believe that the project is too risky and that the terms are too favorable to Terra/Frisbie.
Which brings us to the math.
The city would get direct revenue from rent, property taxes, revenue sharing, impact fees—which developers pay to help offset the cost of public services—and the sale of any private property. The city would get direct economic benefit from construction and jobs.
But as both sides would acknowledge, projections over the 99 years of the lease are nothing more than best guesses. And the terms are very complex. Example: Rent for multi-family development would be calculated at “value per unit x 5 pct. Rent factor.” Revenue sharing would be based on “10% of the difference between actual gross revenue and revenue above target yield on cost.”
Then there’s the much-discussed “discount rate.” Though Terra/Frisbie and the city often cite the figure of $4 billion in projected revenue, that doesn’t account for inflation and other costs. The discount rate does.
PMF, the city’s consultant, has used a rate of 5%. Critics, among them city council candidate Michelle Grau—an accountant—argue that the number should be higher. If it were, they say, the deal projects as a big loser for the city. PMF representatives have defended their calculation, citing municipal and federal accounting standards.
Another point of contention is the nature of this public-private partnership, or P3. Normally, the private developer pays for construction of public facilities. In this case, Boca Raton would finance that cost upfront, with revenues supposedly reimbursing the city.
Construction of private development, though, isn’t projected to start until 2029. Would the city—using its top-tier credit rating—be subsidizing Terra/Frisbie? And what if the private development didn’t happen?
Much in the documents tries to anticipate such scenarios. Boca Raton would retain oversight of expenses, and approval of site plans and other aspects of the private development.
After months of Save Boca seeking to dominate the debate, Terra/Frisbie created a website called One Boca. Mailers have emphasized Terra/Frisbie’s changes to its plan, based on community input. The project, one mailer said, represents “a shared vision for the future of Boca Raton.”
Last week, One Boca issued a long news release touting the project and responding to recurring complaints.
Regarding design, there are three potential architectural styles: “modern mediterranean,” “modern mid-century modern” and “modern Mizner.”
Regarding safety, “Protected bike lanes, shaded sidewalks and active plazas will prioritize walkability and accessibility.”
Regarding math, Terra/Frisbie “delivered the highest value on a per-density basis” of all four proposals. PFM “concluded that the rental payments to the city exceed the underlying value of the land. As a result, the city is able to revitalize the civic campus and enhance Memorial Park while receiving above-market value for the 7.8 acres—without selling the property.”
Barring something surprising, the council will approve the agreement and lease, 4-1, with Andy Thomson the only dissenter. After today, the project moves to a referendum on March 10. Once the documents are final, I will have a detailed breakdown before the election.
Boca Raton City Attorney clarifies referendum vote
Two weeks ago, a minor controversy arose when City Attorney Josh Koehler changed language regarding the referendum. Failure to hold it, Koehler wrote, would not amount to a rejection of the project.
Koehler said he was responding to threats of a lawsuit from Save Boca over the referendum language. Thomson, while saying that took Koehler “at this word,” proposed a version to make clear that the referendum would take place at some point.
The new version goes even further. It says: “If the referendum is cancelled, postponed, delayed or otherwise rescheduled for any reason … it shall be conducted at the next available (sic). Further, the city and [Terra/Frisbie] represent that they have no desire to cancel, postpone, delay or otherwise reschedule the referendum, and shall not take any action, or fail to take any action, that would have the effect of doing so.”
Delray Beach commissioners to discuss revenue opportunity
Delray Beach city commissioners have been casting about for ways to raise revenue. They will discuss a major one at today’s workshop meeting.
The city currently assesses impact fees only to offset the cost of parks. A consultant is recommending that the city add fees toward the cost of police, fire, water, sewer and flood control. Fees would depend on the type of development—residential, retail, hotel, office or industrial.
According to the consultant’s report, the city would determine how much is necessary to finance public facilities “at levels identified as appropriate for new development or based on current level of service.” New development then would be paying “it’s fair share.”
Delray Beach commissioners to discuss contract for public golf courses
On the agenda for today’s regular commission meeting is a contract with Affinity Golf Partners to run Delray Beach’s two public golf courses.
The contract would pay Affinity $375,000 a year for four years with an option for an additional year. The city is using a revenue bond to finance a $27 million renovation of the 18-hole, par-72 main course. Affinity also would run the par-60 Lakeview Golf Club.
In his Jan. 9 information letter to the commission, City Manager Terrence Moore said the city has hired Fort Lauderdale-based WZA Architects to design a renovated clubhouse at the main course. It would reopen in November, about when the course is set to reopen.
Florida Rep. Rob Long seeks funding for local American Legion post renovation
In his new role as a Florida House member, former City Commissioner Rob Long is seeking $200,000 from the state toward renovation of Delray Beach’s historically Black American Legion post.
Long made the announcement Monday. In June, Long joined the majority in approving a settlement of the lawsuit against the city by Sherman Williams Post 188. Members had claimed that the city wrongly evicted them from the post’s city-owned property.
Under the settlement, the post has three years to raise enough money to safely reopen. Otherwise, the property at 196 N.W. Eighth Ave. goes back to the city.
FAU basketball team leads AAC
With one-third of the season done, Florida Atlantic University men’s basketball team is leading the American Athletic Conference.
Under second-year Coach John Jakus, the Owls are a half-game up on Memphis, with a conference record of 5-1. They are 13-6 overall. On Wednesday, FAU hosts Tulane, which gave the Owls their only loss.
FAU is three years removed from its magical run to the Final Four of the NCAA Tournament. That happened under former Coach Dusty May. In his second season at Michigan, May has the Wolverines at 16-1 and third-ranked nationally.
