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Tropicana Field Developer OK'd

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By CARLOS MONCADA

The Tampa Tribune

Published: June 20, 2008

ST. PETERSBURG - The city council Thursday approved Mayor Rick Baker's recommendation to select an Arlington, Va.-based company for the potential redevelopment of Tropicana Field.

The council voted 6-1 to authorize city staff to negotiate by Aug. 1 a memorandum of understanding with Archstone-Madison, one of two finalists who submitted bids to transform the 86-acre Tropicana site into a mixed-use community of shops, restaurants, offices, hotels and residences.

Council member Leslie Curran voted no. Council chairman James Bennett was out of town.

The council already has started the process for scheduling a Nov. 4 referendum on the Tampa Bay Rays' proposed $450 million downtown waterfront stadium and is to take final action Aug. 7.

Baker said he was sticking with his recommended developer despite a protest from competing developer Hines Interests, which the Rays retained last year as a consultant.

"We spent several hundred thousand dollars and thousands of man-hours pursuing this project and are extremely disappointed by a recommendation that is simply not supported by facts or a fair process," wrote Michael T. Harrison, Hines' senior vice president in Atlanta, in an e-mail to the city. "It does little to encourage Hines or other developers to pursue City sponsored projects in the future."

Baker and City Attorney John Wolfe said the protest did not constitute a formal appeal, which would have to be made in circuit court.

"It's a tough choice," Baker said. "I think they're both strong developers. I really didn't think we'd go wrong with either of them. In the case of Archstone-Madison, it was a more dense proposal which translates into more jobs and taxes and activity in the downtown core."

Archstone-Madison is a wholly owned subsidiary of troubled investment bank Lehman Brothers. Council members questioned whether that relationship would affect Archstone-Madison's $800 million line of credit with several major banks.

"They have provided us information that the situation with Lehman Brothers will not affect their ability to continue to operate and do business as a real estate development company," said Dave Goodwin, St. Petersburg economic development director. "We accept that explanation at this point, but we will continue to look into that through the negotiating process."

Among the four key points that staff members will negotiate with Archstone-Madison: a minimum of 4 million to 5.5 million square feet of development; a 1.2 million-square-foot commercial component that would include unique retail destinations; upping the company's $65 million purchase offer for the Tropicana site to between $70 million and $75 million; and starting the Tropicana project before construction would begin on the new downtown stadium, which would open in 2012.

Reporter Carlos Moncada can be reached at (727) 451-2333 or cmoncada@tampatrib.com.

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