CRESTVIEW— The City Council will try to jump-start the Crestview Power Center, a 144-acre retail project on hold after the landowner demanded more than the $1.25 million impact fee relief officials had provided.
The council agreed recently to host a workshop June 4 to try to resolve the impasse.
The proposed mall is part of an agreement approved in August 2011 between the city, landowner Beach Community Bank and developers of the Redstone Commons residential development and Bishops Landing assisted living facility.
The partnership would fund a new sewer line and lift stations to replace an existing line that is at capacity and precludes any growth in the area north of Interstate 10.
The city turned to Beach Community Bank for easements on the property north and east of Lowe’s to complete the project.
As the project began last August, the bank’s engineer, Darrell Barnhill, sent Public Works director Wayne Steele an email stating the bank’s impact fee of $1.04 million would be a “deal killer,” according to Steele.
The fees, calculated by the bank, were nearly the same as the cost of improvements to State Road 85 mandated by the Florida Department of Transportation, Steele said.
In February, the bank requested a waiver of $554,730 in city sewer utility impact fees. However, those fees could not legally be waived, Steele said.
“It is my opinion that Beach Community Bank or Mr. Barnhill is now using the easements as leverage because they overlooked the cost associated with DOT.-required improvements to Highway 85,” Steele wrote in a report to the council.
“This is just my opinion, but I find it interesting that the DOT requirements are almost the exact same amount as their water and sewer impact fee total.”
Redstone Commons and Bishops Landings have met their obligations under the agreement and deserve city water and sewer service, Steele said.
If the bank can’t work out an agreement with the city, Steele said an alternative plan would be a $585,000 upgrade to another existing line using city-owned easements.
Council members have sought ways around the impasse.
Mayor David Cadle and Fire Chief Joe Traylor said public safety impact fees could be reduced if the Power Center’s fire suppression systems reduced the impact on Traylor’s department.
“This is something the city has been looking for for years,” Councilman Mickey Rytman said. “Over the long term, the tax base from retail sales is going to even out” losses in impact fees.
“I don't think any member of our council or any city representation is opposed to this project,” said Council President Robyn Helt, who added that the current and previous City Councils worked diligently to see the project through to fruition.
“I think the council’s willingness to put a moratorium on traffic impact fee to the tune of more than $1 million show out commitment to the project,” Helt said.
Although his department has an alternative plan in case an agreement isn’t reached, Steele said his recommendation is to work with the bank, obtain the needed easement and “move forward.”
“We do want to find a happy medium for this easement,” said Scott McCormick, senior vice president for Beach Community Bank.
WANT TO ATTEND?: The Crestview City Council will discuss the project at a workshop at 4 p.m. June 4 at City Hall.
Crestview News Bulletin Staff Writer Brian Hughes can be reached at 850-682-6524 or brianh@crestviewbulletin.com. Follow him on Twitter @cnbBrian.