City moves forward with U.S. 41 land swap

If the city is going to build a roundabout at the intersection of U.S. 41 and Fruitville Road, it’s going to need to use some land it currently does not own.

Since 2016, the city has had an ongoing dialogue with Palsar Developments Inc., which owns 1.85 acres at the northeast corner of U.S. 41 and Fruitville. Now, although Palsar isn’t sure what it wants to build on the site, the city has reached a preliminary agreement on a land swap with the private developer.

On Monday, the City Commission voted 4-1 to initially approve the terms of a land deal with Palsar. If the deal is finalized, the city would agree to transfer a portion of land near Fruitville and U.S. 41 in exchange for pieces of property the city needs to construct the roundabout.

There are remaining hurdles the agreement still must clear. The approval is contingent on some land use changes when Palsar is ready to develop its property. The city must agree to rezone the eastern segment of the land, designated downtown edge, as downtown core.

The zoning change would allow for greater density and height on the Palsar property. The western segment of the site is already zoned downtown bayfront, which allows the developer to construct buildings up to 18 stories tall.

The city must also agree to vacate the public use of a segment of an alley between Fruitville and Fourth Street that cuts through Palsar’s land. Under the proposal, the city would create a new point of exit and entry for the alley via Fruitville Road.

The terms of the land agreement don’t bind the city to approve the requested rezone, alley vacation or any forthcoming site plan for the Palsar property. The city previously approved a similar land swap with Palsar in 2016, but that deal was never finalized as Palsar’s previous plans to develop the property did not advance.

If the city does not approve the land use changes, though, the deal will fall apart — putting the roundabout in jeopardy.

“If we want to do the roundabout, at some point, we’re going to need this property,” City Engineer Alex DavisShaw said.

The reason the proposed land deal is coming forward now is because the city is eager to begin construction on the Fruitville Road roundabout. So, too, is GreenPointe Holdings, the owner of the nearby Quay property.

As part of its development agreement for the 15-acre bayfront site, GreenPointe agreed to help construct the roundabout ahead of the schedule the Florida Department of Transportation would otherwise approve.

Charlie Bailey, a land use attorney representing GreenPointe, argued the deal was largely favorable for the city. He urged the commission to support the proposed agreement so the Quay owners could proceed with construction on a key entry point to the private development.

“Palsar is doing us a solid,” Bailey said.

Even though Palsar doesn’t know what it wants to build, it’s already made some promises to neighboring property owners.

In December, Palsar held a community workshop as part of its pursuit of a rezone and alley vacation. The proposal drew concerns from neighboring residents, who complained about the lack of detail associated with any development on the Palsar site.

On Monday, however, a lawyer representing the adjacent Encore condominium building told the commission the residents supported the land deal  because Palsar agreed to some limits on the scope of its development.

Although the downtown core zoning would allow buildings up to 10 stories, Palsar agreed to build no taller than five stories on the eastern end of the property near Encore. On the easternmost portion of the land, Palsar agreed to a three-story limit, designed to better transition from the existing residential buildings on Fruitville.

Commissioner Jen Ahearn-Koch was the lone vote against the land agreement. She expressed concern the alley vacation would sacrifice a portion of public land to a private property.

But the rest of the board wasn’t troubled, particularly because the alley would become a dead-end at U.S. 41 once the roundabout is constructed.

“Maintaining the grid is very important — but this wouldn’t maintain the grid in any event,” Vice Mayor Liz Alpert said.