UWF drops out of Maritime Park…for now

TO: Mayor and City Council
FROM:Alvin G. Coby
DATE: 3/12/10
SUBJECT:Alternate Option for the UWF Maritime Museum

The University of West Florida (UWF) and Capital Trust Agency (CTA) has notified the City of Pensacola that with current State funding prospects and the difficulty of meeting all requirements of New Market Tax Credits (NMTC’s), that it may be in the best interests of the Community to apply the NMTC funds to alternate projects. It is proposed that the tax credit funds be used by the CMPA for overall park infrastructure and UWF would postpone its participation in the tax credit transaction until a later time.

In order to consider the new proposal, it may be necessary to schedule a special
meeting of the City Council jointly with the Community Maritime Park Associates. If a special meeting is necessary, it will be held either Monday, March 15, 2010 at 3:30 p.m.

Note from UWF President Judy Bense:
“However, despite intense work by all the partners, the CMP A, City of Pensacola, UWF and the Master Developer, it is becoming increasingly clear that it may not be possible to accomplish all the requirements in the time frame required for tax credit funding. In fact, it appears that prospects of the first option are dimming if not impossible. We also have become painfully aware that the state sources traditionally available for funding public projects such as the museum are non-existent. The NMTCs enabled substantial construction dollars to be generated, but not operational funding once the facility is ready for opening it to the public. In light of this situation, we have developed a second Option for the CMPA Board to consider.”

Here is the option – in conjunction with Ed Gray of Capital Trust Agency:
“It is proposed here that the tax credit funds be used by the CMPA for overall park infrastructural development and include the MMRC site preparation requirements. UWF would postpone its participation in the tax credit transaction until a later date, hopefully using tax credit funds procured at that time. It must be understood that with Option Two, it will still be necessary to fashion an acceptable lease with UWF that meets its terms explained in UWF’s Final Offer, for without that it would not be possible for UWF to proceed even with a second tax credit issuance or with fundraising and State Courtelis matching funds 3-5 years from now. The lease remains key.”

Proposed use of NMTC:
Planned site improvements currently budgeted: $40,000,000

UWF subcontracted components from NMTC proceeds:
Amphitheatre Construction $1,800,000

Other added components from NMTC proceeds:
Enhanced Streetscapes and landscaping for public areas 1,100,000
Playground Improvements 300,000
Multi Use Stadium enhancements 1,250,000
Museum site enhancements, necessary structures for future building 500,000
Dredging 350,000
Museum design and feasibility planning 250,000
DeVilIiers Wharf Boardwalk 1,200,000
Breakwater and Marina slips 3,350,000
Total before GC Profit and Contingency $8,300,000

GC Profit $249,000
Contingency $660,000

Total $9,209,000

Net anticipated NMTC benefit $11,009,000

Total Project Fund $51,009,000