TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Termination of the Warm Mineral Springs Park Site Access Agreement between the City of North Port, Florida, and WMS Development Group, LLC.
Recommended Action
Approve termination of the Warm Mineral Springs Park Site Access Agreement between the City of North Port, Florida, and WMS Development Group, LLC.
Background Information
The following provides a chronological order of events pertinent to the Warm Mineral Springs Park Site Access Agreement:
Ø November 22, 2022: During the City Commission Regular Meeting, the Commission made a motion to make a preliminary determination that the WMS Development Group LLC’s (WMSDG) unsolicited detail proposal is for a facility or project that serves a public purpose, or a facility or infrastructure that is used or will be used by the public or in support of a public purpose or activity, and that it meets the definition of a “qualifying project” in Florida Statutes Section 255.065(1)(I).
Ø July 25, 2023: During the City Commission Regular Meeting, the Commission made a motion to direct staff to move forward with the Public Private Partnership (P3) process and work with the WMSDG.
Ø October 24, 2023: During the City Commission Regular Meeting, the Commission approved the Site Access Agreement between the City of North Port, Florida, and WMSDG to provide authorized access to the parcel for surveys, inspections, analyses, appraisals, and similar investigations.
Ø January 23, 2024: WMSDG submitted a revised proposal modifying the terms of the plan. The revisions outlined that WMSDG would not operate Warm Mineral Springs Park or undertake the initial rehabilitation of a customer service/restroom building. In addition, the revised proposal sought to reevaluate site infrastructure and land valuation.
Ø February 1, 2024: Pursuant to Florida Statutes Section 255.065(5)(c) and City Code Sec. 2-420(e), the City’s Warm Mineral Springs Public Private Partnership Negotiation Team voted unanimously to find that the revised proposal was no longer within the best interests of the City and recommended negotiations on the project cease.
Ø February 2, 2024: City Manager Fletcher accepted and agreed with the Negotiation’s Team recommendation and directed that efforts on this Public Private Partnership proposal cease. Notification of that decision was sent to WMSDG.
Section 2, Term and Termination, of the approved Site Access Agreement states: This Agreement is effective as of the date the last party approves or executes it, as applicable (the "Effective Date"), and terminates automatically upon the earliest of: (a) the date the Developer delivers written notice to the City that it has completed the Inspections and removed from the Property all equipment, machinery, supplies, materials, waste and debris used or produced in the conduct of the Inspections; or (b) the date the City delivers written notice to the Developer that the City is terminating the Agreement, regardless of whether termination is for cause or for convenience.
Upon approval of the termination, a Notice of Termination for Convenience of the Warm Mineral Springs Park Site Access Agreement will be sent to WMSDG.
Strategic Plan
Good Governance
Financial Impact
There is no financial impact associated with the termination of the Site Access Agreement.
Procurement
There is no Procurement associated with the termination of the Site Access Agreement.
Attachments:
1. Warm Mineral Springs Park Site Access Agreement
2. Commission Meeting Minutes Nov 22, 2022
3. Commission Meeting Minutes July 25, 2023
4. Commission Meeting Minutes Oct 24, 2023
5. Negotiation Team’s Recommendation
6. City Manager Memo to Negotiation Team
7. Florida Statutes Section 255.065
8. City Code Sec. 2-420
Prepared by: Tricia Wisner, Assistant Director of Public Works
Department Director: Sandy Pfundheller, Director of Parks and Recreation