The Fort Lauderdale Aquatic Center, including a 27-meter dive tower that cost taxpayers $8 million, is shown in this March photo. \u00a9Amy Beth Bennett <\/p>\n
The rising cost of a redesigned International Swimming Hall of Fame on city-owned land \u2014 now approaching $219 million \u2014 has commissioners calling for the developer to shoulder more risk in the face of future economic uncertainty.<\/p>\n
Fort Lauderdale will be required to contribute up to $11 million a year in lease payments over the course of a 30 years toward the public-private project, a total of $330 million. Now, the developer wants the lease amount increased to $13.6 million a year, bringing the overall payment to $408 million.<\/p>\n
The city would recoup money through revenue-sharing from tenants. But if the onsite businesses were to fail, taxpayers would be left holding the bag, city officials say.<\/p>\n
\u201cThis is just a huge risk to the city,\u201d Commissioner Ben Sorensen said at a City Hall meeting. \u201cWhether it\u2019s fully leased (or not), we are on the hook for $13.6 million a year.\u201d<\/p>\n
Vice Mayor John Herbst also expressed concern.<\/p>\n
\u201cIf the revenue targets are not met, then the city has to make up the shortfall,\u201d he said. \u201cWe might make money, we might lose money. We are truly a partner in this in that respect, that we share a little bit of the upside and potentially a lot of the downside.\u201d<\/p>\n
The commission has asked staff to return to the negotiating table to work out a better deal for the city. Any changes to the comprehensive agreement will require commission approval.<\/p>\n
Two years ago, Fort Lauderdale commissioners made a deal with Hall of Fame Partners to rebuild and modernize the east and west buildings that flank the city\u2019s Fort Lauderdale Aquatic Center at 501 Seabreeze Blvd<\/a>.<\/p>\n The project now includes an aquarium and elevated promenade, increasing project costs from $190.4 million to $218.8 million.<\/p>\n The city is not borrowing the money but is guaranteeing the debt.<\/p>\n If all goes well, Fort Lauderdale would receive $14.7 million a year in net annual revenue from the project, according to the developer. After making an annual lease payment of $13.6 million, the city would see a gain of $1.1 million a year.<\/p>\n To help offset the increase in the master lease payment, the developer is offering to increase other revenue that would be paid to the city from $2 million to $4.75 million.<\/p>\n Mario Caprini, CEO of Capital Group P3 of Florida and a partner in the project with Hensel Phelps, told commissioners he was worried any changes might force another redesign<\/a> of the project.<\/p>\n The height of the west building has already been scaled back in response to critics who worried it might eclipse<\/a> the Aquatic Center\u2019s iconic dive tower, which stands nearly nine stories high. The original design called for a building standing 134 feet. That was scaled back to 120 feet. Now it\u2019s down to 85 feet.<\/p>\n Story Continues <\/p>\n The east building has also gotten shorter. Initial plans called for a building standing 95 feet high. The new plan brings that down to 50 feet.<\/p>\n