VERO BEACH, Fla. — The Vero Beach City Council had half a billion reasons to pick Indiana-based developer Clearpath’s proposal to develop “Three Corners," a 33-acre spread across three plots of land comprising a former power plant, water treatment plant and former post office location on Tuesday night.
But it chose a joint venture between SūDā, CREC Capital and Madison Marquette’s proposal instead at a city council meeting on Tuesday night. According to city documents, developers plan to build a food market, retail space, a hotel with about 175 to 225 keys and a marina with more than 100 slips catering to boats from 25-feet to 125-foot yachts.
Before the vote, a majority of speakers during public comment urge city council members to choose SūDā’s proposal.
I see the attention of the SūDā’s team plan as inclusive and respectful to our local shared lives and values and importantly takes in our environmental impact,” said Jessie Stray.
“I personally really greatly prefer the SūDā plan,” said another speaker. “In terms of its suitability to our community. It’s appropriate scale and it’s mindful of the logon”
“There is one plan in front of you today that fits the scale and character of Vero Beach,” said another attendee. “And in addition to that the group behind that project has the expertise and the resources.”
The city’s website shows it planned for bids from developers as early as 2022. One city council member said it started the process in 2018. SūDā will receive access to 33.7 acres of land across three parcels of land, which has 1,300 feet of waterfront.
Clearpath, which is based in Indiana, was the second most popular proposal among the commissioners. It planned on creating restaurants, bars, retail spaces, a marina, a museum hotel and a green amphitheater.
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A select committee of people almost unanimously selected the option presented by Clearpath. Jeb Bittner, who is a retired developer on the committee, said their project would make the city a destination
"There's nothing like it in Vero Beach currently," Bittner said. "It becomes iconic the day it's finished."
City documents show the company plans to spend more than $500 million on the project, which is more than double the other three proposals reviewed by a real estate agency Colliers International, Florida. Vista Blue Venture Partners, the second most, was estimated to invest $172 Million.
PFM Advisors, who was paid by the city, to evaluate the proposals said Clearpath’s proposal provides the most financial risk to the city out of the four outcomes. It ranked it as “moderately high”, partially citing it’s cost, compared to the other proposals ranked “low” or “moderately low”.
“Clearpath's proposal faces the following potential financing risks: considerably higher development costs compared to the other proposals received by the City, weak debt service coverage early on as indicated in their cash flows, low estimated internal rates of return, and a very long payback period for investors,” it said. “These factors suggest that the proposed project, without considerable City support or an eventual downsizing of the proposed facilities, could be challenged by financing considerations. If the City proceeds with this developer, it should anticipate that economic realities and financing hurdles could impact the project's feasibility as envisioned in the original proposal.”
Councilmember Tracey Zudans brought up those concerns before costing her vote, which other people also mentioned during public comment.
“There was supposed to be no city money invested,” she said. No tax dollar funding and that’s important to remember.”
