TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding Warm Mineral Springs Park Phase I Cost Estimates, Review of Insurance Options, and Potential Next Steps for Phase II Improvements.
Recommended Action
Discussion and possible action regarding Warm Mineral Springs Park Phase I cost estimates, review of insurance options, and potential next steps for Phase II improvements.
Background Information
During the May 28, 2024, City Commission Regular Meeting, staff presented information on the status of action items related to Warm Mineral Springs Park Phase I Improvements and Phase II Future Development. Subsequent to discussion, the following direction was provided:
Ø To direct the City Manager to halt the demolition of all three buildings at Warm Mineral Springs Park.
Ø To direct the City Manager to prepare separate cost estimates for the restoration of all three buildings, cost of water and sewer, and sanitation facilities including separate flood mitigation and hardening costs for all three buildings.
Ø To direct the City Manager to explore additional insurance options, including historic designation insurance.
Ø To direct the City Manager to work with Friends of Legacy Trail to pursue design and funding options for route 1.
Ø To direct the City Manager to coordinate and invite Sarasota County and state elected officials to North Port for a special meeting to discuss Warm Mineral Springs and potential available options as soon as possible.
In response to Commission direction, the City engaged with John Bryant, Principal/Vice President of Sweet Sparkman Architecture & Interiors. Mr. Bryant provided the following services pertinent to the Warm Mineral Springs Park Phase I Improvements and related insurance options:
Ø Cost estimates for the project.
Ø Lead a project charette with stakeholders including Lorrie Muldowney and Erin DiFazio of the Sarasota Alliance for Historic Preservation; John Bryant and Jenna Albers of Sweet Sparkman Architecture & Interiors; Chuck Hardwick of Wharton Smith Construction; Scott Crawford of Crawford Williams Engineering; Kelsey Shy of Kimley-Horn & Associates, Inc.; Curtis Ross of Snell Engineering; and Sandy Pfundheller, Parks and Recreation Director, Trish Sturgess, Assistant Parks and Recreation Director, Steve Lambert, Senior Risk Management Coordinator, David Greenbaum, Chief Building Official, and Kim Humphrey, Project Manager, of the City of North Port. Discussion encompassed the proposed renovations to the buildings; associated site work; considerations for flood mitigation, building hardening, and utilities; insurance options; and potential impacts to the character of the historic structures. Several measures for flood mitigation were reviewed including dry floodproofing, elevating the buildings, and wet floodproofing, however, it was determined that the only feasible course of action given the structural condition of the buildings was wet floodproofing.
Ø As a result of this multi-disciplinary collaboration, the team was able to identify the following two options for historic renovation of the existing buildings:
ü Option No. 1: Full restoration of all three buildings, maintaining historic designation, carrying forward existing programmed spaces, and incorporating wet floodproofing measures.
ü Option No. 2: Full restoration of admission building and a hybrid renovation of spa building to support current operations, maintaining historic designation, incorporating wet floodproofing measures, and preservation/mothballing of cyclorama until sufficient funding is available for restoration.
ü Additionally, and as previously presented during the March 5, 2024, City Commission Regular Meeting, there is an option to construct a new code compliant building (without historic designation) at a higher elevation in accordance with Federal Emergency Management Agency (FEMA) flood zone requirements.
As part of staff’s due diligence, the City’s Senior Risk Management Coordinator contacted National Trust Insurance Services, LLC, a subsidiary of the National Trust for Historic Preservation, which serves as a specialty broker/agent for historic property owners and the organizations that work to protect historic resources. Based on initial conversations, a two-year builder’s risk (property) policy including wind coverage would cost between $95,000 -$120,000 for this project based on a $9,000,000 limit of insurance ($1M for existing structures + $8M hard construction costs). It is anticipated that premiums for the finished structures would be lower once completed, however, the market changes are constant and are difficult to accurately estimate this far in advance of completion. Using the City’s 2023-2024 rates, a preliminary annual premium estimate for the completed buildings is projected at $81,000.
Staff recommends that Commission proceed with Option No. 2 for the following reasons:
Ø The historic character of the buildings will be maintained.
Ø The needs of staff and patrons of the Warm Mineral Springs Park will be accommodated.
Ø Close alignment with available project funding.
Ø As documented in the attached memo from Lorrie Muldowney, Immediate Past President, Sarasota Alliance for Historic Preservation and Erin DiFazio, Program Director, Sarasota Alliance for Historic Preservation, the Sarasota Alliance for Historic Preservation supports this approach and has committed to provide technical guidance for the project moving forward.
Subsequent to City Commission approval of Option No. 2 as recommended by staff or one of the other two options referenced above, staff will proceed with the following action plan:
Ø Process Contract Amendment to Agreement 2017-40 with Kimley-Horn & Associates, Inc. for necessary design, engineering, and construction management services to support Phase I Improvements (repairs to buildings).
Ø Adherence to regulatory deadlines.
Ø Proceed with fulfilling the FEMA request process for projects related to Hurricane Ian.
With regard to Phase II improvements on the undeveloped 60 acres, staff are in support of pursuing a conservation easement that would allow for the preservation of the property and provide the time needed to secure alternative funding for improvements identified in the 2019 Warm Mineral Springs Park Master Plan. Preliminary discussions have taken place with representatives from the Gulf Coast Community Foundation and the Conservation Foundation of the Gulf Coast to outline a potential path forward involving the Transfer of Development Rights (which would sever the development rights from the 60 acres) prior to the placement of a conservation easement. This path would provide the City with the option to sell or transfer (via incentive for affordable housing, economic development, etc.) those severed rights to a developer to use on another property within the City. Should City Commission be in agreement with this path, it is recommended that authorization be provided for staff to begin formal discussions with representatives from the Gulf Coast Community Foundation and Conservation Foundation of the Gulf Coast.
Strategic Plan
Quality of Life
Financial Impact
The current balance of Capital Improvement Program Project #WM19BR is $8,667,374.88 which includes funding from the Warm Mineral Springs, Park Impact Fees, and Surtax funds. Currently, a pending encumbrance will reduce the available project balance to $8,628,440.88.
Procurement
Pending Commission direction, a Contract Amendment to Agreement 2017-40 with Kimley-Horn & Associates, Inc. will be submitted for necessary design, engineering, and construction management services to support Phase I improvements.
Attachments:
1. Presentation
2. Historic Alliance Memo
3. Preservation Brief 31 - Mothballing Buildings
4. WM19BR Project Activity Summary
5. Warm Mineral Springs (125) Fund Balance Analysis
6. 5-28-2024 City Commission Regular Meeting Minutes
7. 3-5-2024 City Commission Regular Meeting Minutes
Prepared by: Sandy Pfundheller, Parks & Recreation Director
Department Director: Sandy Pfundheller, Parks & Recreation Director