City explores downtown land deal with developer

Plans for a roundabout at U.S. 41 and Fruitville Road are still years from becoming reality, but the city may take action soon to ensure the project can move ahead.

In a 3-2 vote, the City Commission directed staff to negotiate a potential land swap with Palsar Developments Inc., the owner of a 1.5-acre site at the northeast corner of U.S. 41 and Fruitville.

Palsar is working with Core Development Inc. to build on the property, and submitted preliminary plans for an 18-story hotel and condo project at 332 N. Taimiami Trail in February. The developers, represented by attorney Brenda Patten, have said uncertainty regarding the roundabout design has made development a challenge.

If the commission eventually approves the land swap — and the developers earn approval for a future site plan — the city would obtain land along Fruitville and U.S. 41 that is incorporated in the Florida Department of Transportation’s conceptual designs for the roundabout.

In return, the developer would get a portion of adjacent city-owned land at the corner of Fruitville and U.S. 41 not used for the construction of the roundabout.

Although final designs for the roundabout will likely take at least two years to complete, initial concepts call for the use of 24 feet of Palsar property along Fruitville and 17 feet along U.S. 41. It’s unclear what ability the city would have to deny plans for a future project based on a project that has not yet been designed, Patten said.

As a result, she suggested clearing up any points of contention now would be in the city’s interest as well as the property owner’s.

“Would FDOT condemn part of a building that’s already been constructed, or would that cause them to completely redesign the roundabout?” Patten asked. “Those are the kind of problems we’re all trying to avoid.”

Commissioner Susan Chapman, one of two votes against further negotiations, questioned whether the city should be interested in facilitating another large project — a contributing factor to the gridlock the roundabouts are designed to address.

Fournier said a large project could move ahead on the Palsar property without any action from the city, which could complicate future improvements at Fruitville and U.S. 41 in.

“If there’s a building built there out to the right-of-way, which is consistent with the zoning, then there probably won’t be any improvements to the intersection,” Fournier said. “I don’t know if the city or FDOT could afford to condemn, under the circumstances.”

The continued growth in downtown Sarasota is a major guiding force in the future of the intersection. Across the street from the Palsar property, plans to develop a mixed-use project on the 14.5-acre Sarasota Quay property are beginning to move ahead.

“This is going to be a very important intersection with the considerable amount of development that’s being discussed,” City Manager Tom Barwin said.

Although any deal would be contingent on an approved site plan, any proposed project would be judged on its own merits against the city code. Patten said the developer is interested in a project that would recognize the significance of the downtown intersection.

“This will be a special place on the corner, a special building,” Patten said. “They want to do their best to enhance that.”

Patten said that the uncertainty surrounding the site means it is unlikely the preliminary plans for a Marriott hotel would move forward. If a deal is eventually approved, she said the developer would likely submit new plans to the city within a matter of weeks.

Ultimately, a majority of the commission voted to continue the conversation with Palsar about a land swap — as well as engage with FDOT to gather more information regarding the land necessary to construct a roundabout.

“(Palsar) could come in and just develop it right now,” Commissioner Liz Alpert said. “I think it’s better we work with them and try to figure out a better process so we get a better right-of-way for the roundabout.”