Aquarium Deal for Downtown Could be Worth $14 Million

A ticket surcharge and yearly rent payments for a potential downtown Clearwater Marine Aquarium facility could be worth more than $14 million over 60 years.

City leaders discussed some of the stipulations of a memorandum of understanding between the city and aquarium regarding a $160 million plan to build a new home for Winter the dolphin Monday.

Council member Bill Jonson asked about factoring in interest rate increases for the term of the lease.

“In 60 years, $150,000 isn’t going to be much,” he said.

Residents have to approve any deal that includes development on the waterfront. The memorandum of understanding outlines what is expected if voters approve the plan in the Nov. 5 special election. The aquarium will pay associated costs with the special election, which are estimated at $100,000.

The money to pay for the 200,000-square-foot, three-story facility would come from government sources, donations and financing. All money needed to build the project must be committed no later than Aug. 1, 2016. The city would have no obligation or liability if the aquarium defaults on its loans. And, if the aquarium does not secure financing the use of the land would go back to the city.

Part of the the aquarium rent would be paid from a .50 cent ticket surcharge, up to $7.5 million, for the construction of a new City Hall. Then the aquarium would pay $150,000 rent each year for the remainder of the 60 year lease.

The aquarium also would pay the city $75,000 for each replacement tennis court.

Mayor George N. Cretekos balked at the terms.

He suggested the $150,000 rent payment should be for the 60-year term of the lease, not a portion of it. He also said the city should eat the cost of replacement tennis courts if the terms were changed.

“We’re going to have a lot of expenses to maintain our city. We’re going to look at redesigning Coachman Park when the Harborview Center comes down,” Cretekos said. “That redesign is going to benefit the aquarium. When you consider we are going to get .50 cents a ticket for $7.5 million dollars, that’s going to take us 15 years to get our money back and then and only then would they start paying $150,000.

“That’s not a deal to me, that’s a deal breaker.”

If the plan is not approved by voters, the aquarium lease at the Harborview Center would extend to April 2016. If the plan is approved, the lease would be extended until 60 days after the opening of the aquarium, which could be in 2018.

Timeline:

• Nov. 5: Special election to allow city leaders to enter agreement for downtown Clearwater Marine Aquarium facility
• June 15, 2015: City must agree to terms of lease for the land
• Aug. 1, 2016: Aquarium must have all money lined up needed to build facility or agreement would revert
• April 2016: If special election is not approved by voters, aquarium lease at Harborview Center would extend to this date. If the plan is approved, the lease would extend until 60 days after the opening of the aquarium
• 2018: Potential opening of Clearwater Marine Aquarium downtown facility

If you go:

What: City Council meeting

When: 6 p.m. Wednesday, Aug. 14

Where: City Hall, 112 S Osceola Ave.

Related coverage:

• Super Voters to Get Aquarium Referendum Information in Mail