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Commissioners split on exclusive MOU for proposed hotel and community-center reuse
Summary
Staff proposed a mitigation plan to preserve civic uses and recommended a time-limited MOU with an applicant for a hotel/residential project on the community-center site; commissioners debated exclusivity versus an open RFP and asked staff to return with detailed terms.
City staff presented a recommended two-step approach for the proposed hotel and community-center site: a mitigation plan to preserve civic functions if the community center is redeveloped, and a time-limited memorandum of understanding (MOU) with an applicant to test feasibility and developer capacity.
Dr. Richard Leavy said the city’s event inventory showed roughly 95% of community-center events could be accommodated across other city venues under a mitigation plan, but a small number of large events would require special arrangements or a future new facility. Staff recommended selling land at appraised market value (not gifting it) and requiring developer due diligence, financial-capacity proof and build-compulsion protections (city repurchase options if the developer fails to build).
The proposed MOU would give the applicant an exclusive window—staff suggested up to 180 days—to complete feasibility, secure consultants and produce site and financial plans. Staff framed the MOU as a collaborative, time-limited step that could lead to a purchase-and-sale agreement and development agreement if both sides agree.
Commissioners split on exclusivity. Some said the city should move quickly with an applicant who has been engaged and willing to invest, citing momentum and local developer ties; others pressed for an open RFP or parallel competition to ensure best value and market testing. No formal decision was recorded; staff was asked to place an MOU on a future commission agenda but the calendar date was left flexible to accommodate commissioner availability.
Staff also noted that any arrangement would preserve public waterfront access and that detailed site plans, appraisals and terms would return to the commission before any land sale or development approval. Next step: staff to prepare an MOU draft and related appraisal/specification materials for commission consideration.
