Commission packet includes comprehensive agreement for 292-space downtown parking garage amid contamination checks

City staff on May 26 recommended the commission consider a comprehensive agreement arising from an unsolicited public-private partnership proposal to design, build and convey a 292-space parking facility to the City of Winter Haven.

City manager Stavrez summarized the P3 background: the city received an unsolicited proposal in October 2025 and convened the statutorily required public meetings (Nov. 24 and Dec. 8, 2025). The commission previously adopted a public-interest determination (Resolution R-25-58) finding the proposal serves a public purpose. Staff said the agreement before the commission defines duties for 6 10 LLC (the developer) and Urban Action LLC (landowner) and calls for a guaranteed maximum price (GMP) of roughly $10,217,000.

"6 10 shall be responsible for the design, permitting, and construction of the parking facility as a design build project," Stavrez said. Urban Action would convey the parcel to the city after completion; that conveyance is incorporated into the purchase price, staff said.

Staff and legal counsel highlighted environmental due diligence as a key condition: consultants disclosed historic contamination tied to a former gas station on the parcel that has been in the FDEP abandoned tanks program. The agreement includes a 120-day land inspection and concurrent 120-day permit approval period. Staff said the city will rely on an environmental consultant’s verification and on Kimley Horn to perform due diligence and oversight during that period.

Assistant city attorney Drew Crawford described contractual protections and risk exposure: the developer had requested authority to place long-lead orders and estimated up to $1,540,000 of hard costs they might incur before closing. "If we were to terminate the agreement for our convenience...we would have to be on the hook for that," Crawford said, noting the contract requires mitigation efforts by the developer but also recognizes a potential city exposure during the inspection/lead-time window.

Staff said insurance, performance bonds and the agreement’s default/remedy provisions are included, and independent review by Walker Consultants previously concluded the garage proposal demonstrated public benefit and cost effectiveness relative to market norms. City staff also recommended Kimley Horn provide design review, permitting support, construction-phase advisory services and environmental verification under a task order.

Commissioners asked for clarification on Kimley Horn's role and timing, how much of the Urban Action parcel is affected by contamination, and who would bear remediation costs. Staff said Urban Action is expected to bear remediation costs through cooperation agreements, but the comprehensive agreement includes protections and conditional close provisions if undisclosed conditions increase costs beyond 5% of the construction budget.

Mayor Yates disclosed a potential conflict and said he would not offer opinions or vote on the item at the formal hearing.

Next steps: staff recommended the commission authorize the comprehensive agreement for consideration on Tuesday, with Kimley Horn tasked to complete due-diligence work during the 120-day land inspection period prior to any closing.