Gotham gets the edge for Largo’s former City Hall site

LARGO — City officials are moving toward negotiations with the preferred developer for the former City Hall property, but commissioners want fewer residential units than the 367 proposed.

Several commissioners said at a Sept. 8 workshop they want Gotham Property Acquisitions LLC to reduce the density of its plan for the 14-acre site at 201 Highland Ave., with some raising concerns about its affordable housing component, parking and potential flooding.

Still, Commissioner John Lauser said New York-based Gotham appeared to have the edge over a competing 220-unit proposal from Ohio’s Stanbery Development Group if the company is willing to negotiate.

“I think the tiebreaker is really Gotham is better as long as they're willing to deal with or negotiate with the density,” Lauser said.

Mayor Woody Brown agreed, saying, “Between the two, I certainly like the one that’s being recommended more.”

City staff, working with real-estate consultant CBRE, ranked Gotham first. Staff members plan to ask the commission at an upcoming meeting for authorization to negotiate a development agreement with the company.

Gotham proposes 367 apartments, including 147 affordable units, compared with 220 units and no affordable component for Stanbery. Both plans include retail, four-story buildings and surface parking.

Brown expressed interest in having at least some of Gotham's affordable units designated for seniors.

“The more I think about an intergenerational apartment complex that has affordable, senior, I think it could be really, really cool,” the mayor said. “Especially if it’s got that public space right there. I’d like to see some of the affordable — or all of the affordable — dedicated to seniors.”

Gotham is offering $5.5 million for the city-owned property, compared with $2.8 million from Stanbery. Both offers assume the city would pay to demolish the former municipal building, which had served as City Hall since the 1990s until staff relocated to downtown’s Horizon West Bay in May.

Gotham also is seeking a 30-year property-tax abatement for its affordable housing units and commercial space. Its first phase would begin in August 2027 and be completed by January 2029.

Commissioner Mike DiBrizzi said he saw enough advantages and disadvantages in both proposals that he was having trouble choosing between them.

“There's enough about each one that I like and there's enough about each one of them that I don't like that they cancel each other out to the point I don't like either one of them,” he said.

He became more apprehensive about Gotham after learning the developer expects to use Florida's Live Local Act to build at a higher density than the property's underlying land-use designation normally allows.

The site ordinarily allows 18 residential units per acre. Because Gotham's proposal includes affordable housing, however, Live Local would allow the developer to use a higher density.

“I didn't envision this project for that,” DiBrizzi said.

Lauser also called for fewer units. He pointed to Gotham's 367 residences and 422 surface parking spaces and questioned whether that would leave enough parking for visitors, retail customers and people using the public areas.

Both developers have said they would consider reducing density, commissioners were told.

Complicating either redevelopment proposal is the Largo Police Department headquarters and its emergency operations center. Both facilities remain on the property and would have to be relocated before the second phase, whose timing remains unclear, could proceed.

Assistant City Manager Meridy Semones said a facility assessment last year identified about $15.2 million in repairs needed at the police station.

City Manager John Curp said the headquarters is experiencing recurring sewage, plumbing and air-conditioning problems and estimated the city is five to 10 years from relocating the department.

“It's just not viable in the long term to maintain the station there,” Curp said.

Some commissioners questioned whether the redevelopment would generate enough money to help pay for a replacement.

Semones said the land-sale proceeds are intended to cover demolition of the former City Hall. Ideally, she said, the value created by the redevelopment also could help offset debt payments for a future police headquarters.

Any development agreement with Gotham would return to the commission, with density and other details still subject to negotiation.

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