DeMarcay builder seeks change of plans

As developer Greg Kveton searched for a contractor for the 18-story, 39-unit DeMarcay on Palm condominium project, he ran into a problem: Nobody wanted to build it.

The development was supposed to break ground in June at 33 S. Palm Ave., demolishing the historic DeMarcay Hotel and Roth Cigar Factory in the process. 

It’s November now, and both buildings are still standing.

It may still be a while before the construction begins. On Monday, planning consultant Joel Freedman filed an application to amend the DeMarcay site plan on behalf of XAC Developers, the Illinois-based firm behind the project.

XAC Developers is asking the city to change one condition of the plans for the project, formally approved in 2006. The plans state “precast or comparable construction shall be utilized above the sixth floor of the project.”

Those plans were approved under a different property owner; XAC Developers purchased the land in March 2014. In October 2015, the city issued a building permit for the project on the day the site plan was set to expire.

Soon after, Kveton said he discovered the mandate for precast construction led to difficulties finding a contractor willing to build the project. The requirement was designed to minimize the impact on the surrounding area. If the developer used prebuilt structures, the thinking went, construction would be quicker and less disruptive.

Ten years later, the new developer says precast construction would make the project more complex.

“Were it not for the condition specifying precast, no structural engineer or concrete shell contractor would consider using precast plank for a building like the DeMarcay,” Kveton wrote in the application. “In fact, we are unaware of any high-rise building in Sarasota that has been built with this method.”

The amendment application includes testimony from an engineer and contractor, both of whom agree with XAC Developers’ assessment of the precast construction process.

“We have built numerous 20-plus story condominiums and hotels and estimated hundreds; this is the first time we have seen (precast) hollow core on a structure of this height and slenderness,” wrote Steve Whitley, president of Reinforced Structures Inc. 

Tim Litchet, the city’s director of neighborhood and development services, believes it’s accurate that no other downtown high-rise has used that construction technique. Kveton has worked with Litchet and other city staff members in an attempt to get around the requirement for precast construction.

Litchet said the language in the site plan approval is cut and dry. Any change would be a major adjustment — one that staff couldn’t administratively approve, he said.

“They proposed it originally, not us,” Litchet said. “Their problem is they inherited what the original developer agreed to.”

As a result, the site plan amendment has to go through public hearings in front of the Planning Board and City Commission before it can be approved. According to the city’s review schedule, the plans would go before the Planning Board in January and City Commission in February.

Extended Credit

The city’s website says the building permit for the DeMarcay project expired Oct. 13.

Although the deadline to commence work on the project was originally set for October, city building official Larry Murphy said that’s no longer the case. This summer, that date was pushed back to June 6, 2017 — and the developer can thank Tropical Storm Colin.

In 2011, the state passed a statute that extends certain permitted rights when a state of emergency is issued. The statute applies to building permits issued by local governments, creating a six-month extension.

In June, Gov. Rick Scott declared a state of emergency in Sarasota County in advance of Tropical Storm Colin. As a result, representatives for XAC Developers contacted the city in August to confirm the new date for the building permit expiration.

“Whether the local government wants to or not, (the state) tacks that on as a means of making sure the natural elements don’t impede the economy,” City Attorney Robert Fournier said.