New appraisal pegs value of State Street garage parcel

Rather than weigh in on a developer’s proposal to incorporate more city-owned land into a proposed development adjacent to the State Street garage, the City Commission decided to postpone the decision until more information was available.

Now, that information has come in, putting commissioners in the position to finally decide whether to move forward with the project. Originally skeptical of a proposed purchase price that was significantly lower than the appraised value of the land in question, the new proposal casts the developer’s bid in a more favorable light.

Even though the price appears to be in line with the value of the land, additional questions remain about the board’s willingness to accommodate the new proposal.

Hembree and Associates was the high bidder for the garage’s pad property — a 5,041-square-foot liner parcel in front of the garage at State Street and Lemon Avenue. In November, Hembree and Associates President Joe Hembree appeared before the City Commission to make the request for additional land near the site, which would be used to expand the scope of the planned development.

After discovering obstacles to development with the small, shallow parcel, Hembree sought permission to buy an additional 5,409 square feet of city-owned land on the western end of the Northern Trust bank parking garage. The land, fronting nearby Pineapple Park, had an appraised value of $460,000; Hembree’s proposed price was $250,000.

The group’s original bid for the pad parcel was $688,000, more than $300,000 higher than the next closest price submitted for the downtown land. Hembree’s vision for the original property includes a six-story building with retail on the first floor, office space on the second story and 18 residential units on the remaining four levels.

Hembree said plans for the additional land would include a two-story mezzanine structure, acting as a liner building for the private parking garage and drawing pedestrians to the park. Without that land, Hembree said the pad parcel would present a challenge for any developers — and suggested he might, at some point, reconsider the purchase.

The City Commission has expressed skepticism regarding the sale, particularly given the additional property’s proximity to public space in Pineapple Park. The city also questioned the difference between the appraised value of the land and the proposed purchase price. City staff attributed the discrepancy to a difference in scale — the appraised value of the land accounted for the property’s maximum building height of 10 stories, but Hembree’s proposal pertained to a smaller project.

As a result, in February, the City Commission directed staff to conduct another appraisal to put the proposed purchase price in a more applicable context. On March 2, the city finished that appraisal. Parameters included a maximum building height of three stories and a prohibition on residential development. According to the appraisal, the land was valued at $230,000 — $20,000 less than Hembree’s proposed purchase price.

Armed with this information, the City Commission will now make a decision regarding the sale at a future meeting. Even though the price appears to be in line with the value of the land, additional questions remain about the board’s willingness to accommodate the new proposal. Either way, Hembree said he intends to try to move forward with some project at the State Street garage.

“We're still excited about the property,” Hembree said.

The city hopes to complete the State Street garage itself by late April, a month later than the original targeted date for finishing the project.