TAMPA — The Jeff Vinik-Cascade Investment partnership is poised to gain control of another 3.4 waterfront acres just west of Channelside Bay Plaza for its massive Water Street Tampa redevelopment project.
The land is owned by Port Tampa Bay, and a Vinik-Cascade company, CBP Development, is looking at putting an estimated 362,000 square feet of mixed-use development on the site, known as the Garrison parking lot.
If port authority’s board approves the deal on Tuesday, developers anticipate spending the next 18 months fleshing out and securing approvals for what is now a conceptual plan.
"We have not fully decided (the project’s details) at this point, but probably residential will be a significant component of it," Vinik said Monday. "That would make sense."
As proposed, CBP Development would pay the port:
• $9.87 million over a 10-year period for 20,000 square feet of the parking lot, which is between Channelside Bay Plaza and the intersection of Channelside Drive and Beneficial Drive. That’s $493 per square foot. An appraisal done for the port of the parking lot and Channelside Bay Plaza together put the value of both properties at $120 per square foot.
• Rent starting at $517,667 per year for the remaining 120,000 to 130,000 square feet of the parking lot. The rent would become due once CBP Development finished its construction on the site or within 6 years, whichever was sooner. It would rise over time, depending on changes in consumer prices and the amount of development built on the property. The lease would run for 40 years with options to extend it another 40 years.
The port will retain about 20,000 to 30,000 square feet of the Garrison lot for cruise-related operations. The deal for the lot would terminate automatically, with the port keeping any money it had received, if development isn’t underway within five years.
The port and Vinik’s companies have discussed a possible deal for the Garrison parking lot for about three years, port attorney Charles Klug said in an email. The sale of the 20,000-square-foot parcel arose from CBP Development’s interest in building condominiums or other uses that would require ownership of that land.
The location is a "critical link" between Water Street Tampa, the port, the Channel District, Harbour Island and downtown, according to Ali Glisson, spokeswoman for Strategic Property Partners, the master development company that Vinik formed in partnership with Cascade Investment, the personal wealth fund for Microsoft founder Bill Gates.
"Our vision for the area along the Garrison Channel is that it should be activated and integrated," she said. Current plans envision lower-scale buildings along with waterfront, perhaps with outdoor dining, plus the one or two residential buildings, which would be set back from the waterfront along Channelside Drive.
The port’s decision will come as Water Street Tampa moves ahead with plans to redevelop various parts of the Channelside Bay Plaza property. In October, developers demolished one wing of Channelside Bay Plaza, with plans, at least in the near term, to create a small waterfront park and beer garden featuring pop-up bars and restaurants housed in re-purposed shipping containers.
The port’s board also will consider an agreement for CBP Development to operate the Channelside and Cruise Terminal parking garages as well as the parking lots next to cruise terminals No. 3 and No. 6. The port would get 62.5 percent of parking revenues, and CBP would get 37.5 percent.
In 2015, the port engaged Vinik’s company to run the garages "after many years of operating the garages separate from Channelside Bay Plaza with mixed results," Klug said.
The result was "a much enhanced customer experience," he said, with "a more harmonious operation of the facilities when there are events at Amalie Arena." For one thing, retailers and tenants at Channelside Bay Plaza have had fewer problems with validated parking for their customers. Operating the garages separate from those properties, Klug said, would not be as practicable.
Check back at tampabay.com for updates on this developing story. Contact Richard Danielson at [email protected] or (813) 226-3403. Follow @Danielson_Times