CRA board backs CAC plan to work with Railroad Square cohort after investor offer and owner rejection

The Tallahassee Community Redevelopment Agency voted 3–2 on Jan. 16 to adopt the Greater Frenchtown–Southside citizen advisory committee recommendation to not acquire 6.8 acres at Railroad Square and to direct CRA staff to work with a Railroad Square revitalization cohort on a funding and management proposal.

The action follows months of study by CRA staff, an appraisal and public comment by tenants and arts advocates who urged the board to back a community-led plan rather than a direct CRA purchase.

Director Cox read an email from Bruce Foster, who said he represents a group of private investors who offered the sellers the appraised value of $6,400,000 and said the group planned to redevelop Railroad Square into an arts destination with apartments, galleries, commercial space and public areas. Director Cox also read a reply from Lily Kaye on behalf of the Kaye family that said the family “is not entertaining that offer,” arguing the CRA appraisal undervalued the property because it did not reflect the property’s highest-and-best use.

CRA staff had presented four acquisition scenarios and a due-diligence summary that included an appraisal. Staff reported that renovating deferred maintenance would cost “upwards of $400,000,” recommended demolition of Building 650, and estimated roughly 50,000 square feet would be available under one scenario. Staff also reported the property’s current rent roll was roughly $55,000–$60,000 per month when fully leased (about $700,000 annually), that external property management would cost roughly $52,000–$86,000 annually, and that insurance would run about $40,000 annually. The appraisal showed a current-use (as-is) value of about $6,400,000 for the full 6.8-acre parcel and a highest-and-best-use estimate of about $10,400,000.

Board members split over whether the CRA should reserve funds or time to pursue acquisition. Several board members said they supported Option 5 — the CAC recommendation — because it signals CRA willingness to work with community partners without obligating the agency to a multiyear buyout that could strain existing neighborhood commitments. Director Cox had advised the board that committing to a purchase near the highest-and-best-use number would require a substantial multiyear commitment and likely reduce the CRA’s ability to fund other Neighborhood First initiatives in Providence and South City.

Public speakers from the Railroad Square cohort urged the board to back the cohort’s preferred option. Gabrielle Simpson, who identified herself as a Railroad Square tenant, said the cohort supported “option number 5” and hoped to return with a community-funded proposal. Gordon McGill and other speakers cited national arts-economy studies and regional examples as models for a publicly supported arts district.

Mayor (name not specified) said he was disappointed the Kaye family did not attend the meeting and urged the owners to consider the investor offer; he described the offer at appraised value as an opportunity to preserve an arts legacy. Other board members warned that staff time and CRA budget constraints meant any CRA financial role would need a concrete plan from the cohort and could not be open-ended.

The board voted 3–2 in favor of the CAC recommendation to decline immediate acquisition and to work with the Railroad Square revitalization cohort on a funding proposal. The CRA did not commit to a dollar amount; staff said any future CRA contribution would be brought back to the board after the cohort submits a detailed plan and financing gap analysis.