Story Created:
Mar 16, 2007 at 9:52 AM CST
Story Updated:
Mar 16, 2007 at 3:35 PM CST
Corpus Christi City Manager George K. “Skip” Noe today announced that the negotiations regarding the future development of Memorial Coliseum between the City and TRT Holdings have been jointly discontinued.
The City Manager also issued the following statement concerning the status of the Memorial Coliseum Redevelopment Project:
"As you know, one of the City’s goals has been to secure a redevelopment of the Memorial Coliseum site. The City Council authorized a process for procuring a plan and developer which included solicitation of interest from developers across the country. From that solicitation, four developers were selected to prepare specific, detailed proposals. The RFP included a clear indication that the City was not going to provide any financial rewards, guarantees or incentives as part of the project. The four proposals were reviewed by staff. All responsive proposals along with a staff recommendation were submitted to Council. Council selected the TRT proposal which was the proposal recommended by staff. The TRT proposal which has been titled Boardwalk by the Bay was proposed to include an entertainment center comprised of state-of-the-art rides, attractions, restaurants, concession and retail facilities. The TRT proposal also included provisions for lease of the land and annual lease payment the City equal to fifty percent of the net cash flow of the project.
During the first 8 months of 2006, staff and TRT representatives met on numerous occasions to negotiate the detailed business term sheet and a definitive project plan for public and Council consideration. The negotiations were put on hold briefly in the fall of 2006 due to time constraints on the part of the developer. After the November vote on beach access, TRT indicated that they would require a show of public support through a public vote/election before they would proceed with their project. Since that time, staff and Council have been deliberating that proposal along with other options for moving forward with redevelopment of the site. Over the last week, we have had a number of additional discussions with TRT, confirming their position on Boardwalk by the Bay and exploring other options.
It is staff’s opinion that this proposal represents the best opportunity to secure redevelopment of the site without city financial participation. While there are certainly ideas for projects which would have more economic or community significance as well as those which would more closely represent the highest and best use for the site, such projects would require some financial participation on the City’s part. It is also clear that there are a number of groups who object to this use for various reasons. That fact only serves to reinforce the TRT position on having a public election before undertaking a significant investment.
At this point, I do not believe there is support from a majority of City Council to place this item on the ballot in November of this year or any other election date. Therefore, staff and TRT representatives have terminated discussions on Boardwalk by the Bay by mutual agreement. I have visited with Mayor Garrett and he shares my view of the Council’s position and concurs in the action being taken. TRT remains interested in the long-term development of Corpus Christi and this site. Staff will continue to communicate with them as opportunities arise.
I want to thank TRT for their good faith proposal to invest in Corpus Christi. They submitted the Boardwalk by the Bay project not because it was part of their core business but because of their commitment to our community. We are aware of their interest in other development opportunities in the downtown area and have committed to work with them as a significant property owner in downtown Corpus Christi. "
With this process concluded, the City is in a position to evaluate all its options. The redevelopment of the Coliseum site continues to be an opportunity. To accomplish this goal, however, the city must be willing to be a partner in any redevelopment. The level of that commitment will be determined by the extent of our vision. Under current plans, this is one of the few sites in downtown Corpus Christi for a development which would directly interact with the water. That certainly is a unique opportunity and one that must be done right. Staff is working on a development process which acknowledges the need for a private-public partnership in the redevelopment. That process will require economic feasibility and planning up front. Citizen input would be solicited during that initial planning phase. Recommendations for a new redevelopment process along with other options for the use of the Coliseum site will be ready for consideration by the next Council.
