Effort to redevelop Bradenton's 14th Street West project recommended to continue

BRADENTON -- The Bradenton Downtown Develop Authority will recommend the Bradenton City Council, acting as the Community Redevelopment Agency, continue to work with Sarasota-based Beneficial Communities to redevelop the old Manatee Inns site on 14th Street West into an 80-unit live-and-work community.

The council will hear from Beneficial next week before making a decision.

Beneficial has failed to get tax credits through the Florida Housing Assistance for the affordable housing project, but the company isn't willing to give up just yet.

The tax credit application is a very competitive process and it's not uncommon for developers to even compete against themselves by submitting multiple projects. Beneficial is no exception. According to the FHA website, WOB Beneficial Development 16 LLC submitted tax credit applications for seven other projects besides the Manatee Inns site, dubbed Village Lofts. They include two projects in Pasco County, two in Volusia County, and additional projects in Sarasota, Escambia, Monroe and Hernando counties.

The Manatee Inns site also was competing with five other Manatee County projects, including the Bradenton Housing Authority's attempt to redevelop its oldest public housing units in the Sugg Development. A resubmittal in October will likely pit the Manatee Inns site against many of the same projects vying for tax credits.

One more could be added to that list as the Central Community Redevelopment Agency plans to submit an application through North Star Development to redevelop the Love Apartments and the Martin Luther King Jr. mixed-use project.

Still, Beneficial developer Ken Bowron Jr. and Beneficial attorney Casey Colburn said, the Manatee Inns site is getting its share of focus. Bowron said this week Beneficial has "worked really hard" and wants the city to give them anoth

er chance to obtain the tax credits. Bowron said the most viable success route is the tax credit process, "but in order to do so, we will need a year extension."

DDA board member Mike Carter said it's risky to invest another year into a property sitting vacant while the DDA still owes $617,000 on the 3 acres. The DDA "could spend two years with this attempt and still come away with nothing," he warned.

Colburn said they are willing to offer a concession in the amended contract that, if the city receives a cash offer, Beneficial would step aside.

"We can't stand in the way of you having a cash offer from someone ready to perform," said Colburn.

The city received a cash offer last week for $500,000 from Tapestry Properties LLC, of which downtown investor Vincent Crisci is a member. Crisci said the offer was made in light of Beneficial's failure, but would prefer the city continue its relationship with the developer. He said he has no immediate plans for the property. However, if he were to buy it, he would be a private investor with his own money at stake. That, he said, is motivation to find the best option and he "might be able to accomplish much by actively and passionately pursuing a wide variety of development ideas."

The council has voiced several reservations with Crisci's offer.

Colburn said he also is in discussions with a new group of investors who "have an X amount of dollars that they want to deploy in this area. My previous dealings with these folks is that they are pretty impressive and resourceful."

Bowron said he doesn't see it happening. Based on the margins to make the project affordable and viable, any other option than tax credits isn't likely to work, he said. The cost of rent on a private development would far exceed what the city hopes to see in a development that is designed to attract millennials straight out of college and new artists for the Village of the Arts.

"From a developer standpoint, in the real world, I don't know how well that option will work," he said. "I know a tax credit deal will."

Carter said a favorable recommendation from the DDA should include an increase in the purchase agreement from $700,000 to $800,000 to make up for a year's loss in property value increases. Bowron agreed with one stipulation. He said the city can still market the property to a cash buyer, but establish a Sept. 1 cutoff date in anticipation of Beneficial entering the next round of tax credit applications in October. Bowron said that would at least protect Beneficial once the tax credit process begins. The DDA board agreed to make that recommendation.

Mark Young, Herald urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter @urbanmark2014.

This story was originally published April 5, 2016 at 8:32 PM with the headline "Effort to redevelop Bradenton's 14th Street West project recommended to continue ."