HomeMy WebLinkAbout2008 08 11 Referenced by Commissioner Miller During Discussion of Informational 103Date: August 11, 2008
The attached was referenced by Commissioner
Robert S . Miller during the discussion of
Informational Agenda Item "103" during the
August 11, 2008 City Commission Regular
Meeting.
ROBERT S. MILLER
Commissioner, District One
City of Winter Springs, Florida 32708
11 August 2008
SUBJECT: Serious concerns regarding Winter Springs $200,000 UCF grant of
July 23, 2007, regarding Vista Willa Office Center I and II.
Information Item 103 before us tonight (August 11, 2008) is: "Responding to
Commissioner Brown's Inquiry Regazding Vista Willa Office Center. Inc. Phase II.
I am deeply concerned that this item is coming before us again as it is. I am even more
concerned about the manner in which it is phrased so as to conceal facts, which were
already appazent a yeaz ago when it was approved, but either ignored accidentally or
deliberately by those who supported it at that time.
Were $200,000 of Winter Springs taxpayers money not involved in this developer bailout
I would not be as concerned as I am. This City, its Commission and City Manager need
to be more cazeful about such highly irregular activities in the future. The fact that item
103 is again before us tonight and with recommendations that the City consider a further
bail-out of this developer, borders on negligence. An investigation into the facts since
last yeaz is clearly called for. For the record, this Commission's 2/2 tie-vote a yeaz ago on
July 23, 2007, was broken by the Mayor who voted in favor of it. Subsequent events
clearly indicate that those in favor did not have all the facts, chose to ignore them, or had
other motives for supporting it.
On the night in question only Mr. Thomas Corkery, a resident of Tuskawilla appeazed,
asking for this Commissions approval of either a 200,000 or 400,000 dollar grant of
taxpayers funds from the City's General Fund... for use in renting space in Mr.,
Corkery's office building by the UCF incubator. It is also noteworthy that on that night
no one from UCF or its business incubator appeared before this Commission, only Mr.
Corkery, who obviously stood to benefit from UCF occupying his office space. When I
asked why no one from UCF or the UCF incubator was present, my question was ignored
by Mr. Corkery and Mayor Bush. .
It was then, and still am troubled now, by the fact that the UCF incubator had already
informed Mr. Corkery before his July 23, 2007 request for $200,000, that they had
already committed to take 6,500 squaze feet of office space in his building. But there was
a problem for Mr. Corkery, he needed them to take more space but they had insufficient
funds with which to do so. Mr. Corkery knew he could not secure private bank financing
to start a second building right away -unless the City Commission of Winter Springs
approved a grant to UCF for them to occupy more space in his empty building. Mr.
Corkery needed a 92 percent rental occupancy before his bank would extend funds to
start a second building.
i
In retrospect the public should listen to the tape of the above Commission meeting. For
those who care to listen to the July, 23, 2007 meeting, Corkery in his own words
repeatedly makes it clear that his first building is already in trouble with inadequate rental
clients, and that what he needs is, for the UCF incubator to take not 6,500 but 10,000
square feet in his first building. If they do Mr. Corkery then reaches the 92% rental
occupancy, which then frees up new construction loans for his second building.... and -
he informs the Commission that in return for the $200,000 to UCF he commits to start the
second building within four to six months.
While several Commissioners and the Mayor spoke in favorable terms about approving
the developers request, Corkery himself again repeatedly assured the City Commission
that his present leased space is 65%, and that without the $200,000 of City taxpayers
money he will still be fine but he will not commit to start a second office building. But
with the $200,000 he will start construction within six months -because, with it, he gets
already pre-arranged Bank `take-out loans'which provide funding for his second
building. With the city commitment he promises his second building would be up and
running (again in Corkery's words) within 14 months. Mr. Corkery stated that his
proposal to get the $200,000 was such a good deal for the City of Winter Springs, "that it
was unfathomable that anyone would vote against it and not support it." Taxpayers of
our city might notice that Mr. Corkery's second building today, a year later, is still an
empty field.
In retrospect Mr. Corkery got a major new tenant a year ago that is able to pay a reduced
rental fee to him in his building for several more years, and at Winter Springs taxpayers
expense. He has failed to keep his commitment to start the second office building and
some might advocate he get waivers for pending fines?
Why did Mr. Corkery not start the second office building as he committed too. The two
Commissioners who voted for the 200,000 UCF grant last year, recently criticized City
Staff only two weeks ago during a Commission meeting, alleging Staff was holding up
another Corkery project in Tuskawila with too many questions and details? In retrospect
it now appears many of the delays on this other project are not related to city staff at all.
Events leading up to the Commission decision of July 23, 2007 needs to be seriously
investigated further to determine why the city supported a developer with taxpayers funds
who then failed to comply with his commitment to this city. I urge this commission to
undertake such an investigation by a neutral party and report back to this Commission.
~'
Robert S. Miller
Commissioner