Ahearn-Koch in minority
On a 4-1 vote this week, the members of the Sarasota City Commission approved the final payment to the Sarasota Performing Arts Foundation to fulfill the city’s 50% obligation for the expense of the concept design for the proposed Sarasota Performing Arts Center (SPAC) within The Bay Park in downtown Sarasota.
Commissioner Jen Ahearn-Koch cast the “No” vote.
Additionally, part of the $340,705 budget transfer the board approved will cover the city’s expense for a study of the tax-increment financing district funds that the city is expected to receive for the 30-year life of that district, as well as the potential use of revenue from ticket sales for performing arts events, in regard to paying for the SPAC, the city’s financial administration director, Kelly Strickland, explained during the regular commission meeting on Nov. 17.
In years past, city staff has talked about the potential that including a surcharge on tickets sold for events at the Van Wezel Performing Arts Hall could help produce the revenue the city would need to cover its share of the SPAC’s overall cost. Then, after the SPAC was completed, the surcharge could continue on tickets for performances and events at the new facility, to continue producing the necessary funding.
In November 2020, both the City Commission and the Sarasota County Commission approved the establishment of the tax-increment financing (TIF) district, which encompasses not only the 53 acres of The Bay Park in downtown Sarasota but also a number of surrounding properties. The property tax revenue generated by that district is to be used to pay for the amenities within The Bay Park.
Finance Director Strickland has explained that, in accord with the interlocal agreement, the city and the county apply the lower of the two local governments’ millage rates each year to any annual increase in the total value of the properties in that district; then, each sets aside that money for its share of the park expenses.
On Nov. 5, as The Sarasota News Leader has reported, the Sarasota County commissioners voted unanimously in declaring that they would not approve the use of any money out of county TIF proceeds for the proposed new performing arts venue.
However, an agreement between what was then the Van Wezel Foundation and is now the Sarasota Performing Arts Foundation (SPAF) calls for the city not only to pay for half of the cost of the SPAC, but also to cover the expense of the necessary infrastructure — such as new utility lines — to serve the facility. The city is obligated, as well, to provide for adequate parking for patrons of the venue.
Why pay now?
The Nov. 17 Agenda Request Form for the SPAF item said that, of the $340,705 budget transfer the commissioners were asked to approve that day, $155,812 would go to the Genoa, Italy-based architectural firm Renzo Piano Building Group for its work on the concept design for the SPAC; $134,893 would cover consulting work handled by Professional Facilities Management; and $50,000 would go to PFM Financial advisers.
The item was part of the Consent Agenda 2 of routine business matters for the City Commission’s regular meeting. Both Vice Mayor Kathy Kelley Ohlrich and Commissioner Ahearn-Koch had pulled it for discussion.
In response to a question from Ohlrich, Finance Director Strickland explained that the money going to Renzo Piano would complete the city’s $1.1-million, 50% share of the expense of the design concept for the new performing arts venue.
Yet, Ahearn-Koch told Strickland that she remembered that the City Commission agreed a number of months ago to hold off on paying the remainder of that $1.1 million.
Interim City Manager Dave Bullock replied, explaining that, while he was not aware of that decision, the SPAF did send the city an invoice for the rest of the money owed to the architectural firm
“This completes the concept design phase of this project,” he added, with emphasis.
Then Jennifer Jorgensen, the city’s director of governmental affairs, confirmed that Ahearn-Koch’s recollection was correct. It was included in a letter from former City Manager Marlon Brown to the SPAF leaders, she added. (Brown left city employment on Oct. 15, 2024. Bullock was named interim manager in late May.)
Jorgensen also reiterated Bullock’s comment about the SPAF’s having provided the city an invoice for the remainder of the Renzo Piano design concept payment.
Mayor Debbie Trice told Jorgensen that she wanted clarification “that this payment will enable us to get the information to learn what the anticipated cost of constructing the performing arts center” would be, which “the city really does not have at this point,” as Trice understood the situation.
Trice also sought assurance that she was correct in understanding “we’re not on the hook for building [the SPAC] until we see how much it’s going to cost. So this can be the make-or-break answer we’re looking for?”
In accord with the agreement between the city and the SPAF, Jorgensen said, the City Commission is to receive the concept design from the Foundation, as well as the final proposed budget for the SPAC.
The City Commission has to approve any further work by Renzo Piano before it can begin, Jorgensen added. Moreover, she pointed out, the City Commission can terminate the agreement with Renzo Piano at any time.
That clause does require the city to pay whatever is owed to the firm at the time of such a decision, along with a 10% termination fee. During the commission’s May 20, 2024 discussion prior to approval of the Renzo Piano contract, Jorgensen estimated that the termination fee plus the expense of the concept design would be approximately $3.7 million. Again, she noted at the time, the city would be liable for half of the total.
On Nov. 17, interim City Manager Bullock also noted that the concept design will make it clear how much square footage will be dedicated to the specific elements of the SPAC.
“So without this, we are operating in the dark?” Trice asked.
“The concept design draws everything together,” Bullock told her. The completed design and the budget will be in one report, he added.
Commissioner Liz Alpert ended up making the motion to approve the budget amendment that will cover the payment to Renzo Piano, and Commissioner Kyle Battie seconded it.