CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: March 25, 2009
SUBJECT/TITLE: First of Two Public Hearings on Second Amendment to the Tallahassee Memorial Hospital Development Agreement
TARGET ISSUE:

STATEMENT OF ISSUE

On February 9, 2000, the City Commission approved a Chapter 163 Development Agreement titled the “Tallahassee Memorial Health Care New Facility Development Agreement” between Tallahassee Memorial Healthcare, Inc. (TMH), and Southeast Community Health Services, Inc. (Southeast), and the City of Tallahassee related to the development of 81.453 acres located adjacent to the property owned by the City and TMH on which the hospital is located. (Attachment 1-sketch of 81 acres) The agreement was amended in 2007 to address the Tallahassee Community College Ghazvini Center, a nursing school, which had been announced. The City adopted applicable transportation concurrency principles as part of the agreement. TMH and Southeast are requesting a second amendment to the development agreement based on changes in the development of the hospital complex and to clarify and implement the 2007 First Amendment. (Attachment 2) The proposed amendment is before the City Commission for the first of two public hearings. The second public hearing is scheduled for April 7, 2009.

RECOMMENDED ACTION
Option 1: Hold the first public hearing and schedule the second public hearing on the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement for Wednesday, April 7, 2009.

FISCAL IMPACT
None expected.

James R. English, City Attorney

For Information, please contact: Linda Hudson, Assistant City Attorney, Ext. 8554

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
On February 9, 2000, the City Commission approved a Chapter 163 Development Agreement titled the “Tallahassee Memorial Health Care New Facility Development Agreement” between Tallahassee Memorial Healthcare, Inc. (TMH), Southeast Community Health Services, Inc. (Southeast), and the City of Tallahassee related to the development of the area of about 81 acres adjacent to the property owned by the City and TMH on which the hospital is located. [Attachment 1-sketch of 81 acres] The development agreement is in the Leon County Public Records in Book R2363, beginning at Page 00422.

On December 13, 2006, the City approved a first amendment to the development agreement based on acquisition of additional property and changes in the development of the Medical Center Complex. The first amendment clarified how vested rights in vehicle trips would be applied to development on the newly acquired property, clarified the development process for the 81 acres, and established specific concurrency procedures for hospital traffic. It also discussed how the TCC project was to be treated. It was premised on the northern portion of the 81 acres being dedicated to the City with all but road right-of-way being added to the City’s lease with TMH. The term of the current development agreement extends to 2016. At this time, TMH and Southeast are requesting a second amendment to the development agreement to include the following:

• Extend the term of the development agreement for up to 20 years pursuant to recent legislative amendments to Chapter 163, Florida Statutes. The discussion about the term of the agreement is ongoing;
• Acknowledge imminent transfer of the northern acreage (not including the stormwater management facility) to the City and inclusion of property less proposed right-of-way for the connector between Surgeon’s Drive and Centerville Road in the lease with TMH. Clarify responsibilities of the City, if any, to pay a pro rata share of costs of maintenance of the stormwater management facility;
• Verify vested rights and allow each party’s vested rights to be used on the other’s property if written consent given;
• Clarify concurrency requirements which will allow TMH to choose between special hospital transportation concurrency adopted in 2007 amendment to the development agreement and whatever language is in the City’s concurrency manual at the time of development;
• Revise the alignment of the planned roadway extending from Surgeon’s Drive to Centerville Road for more development efficiency and provide for a 10-20 year reverter if not completed by the City. Discussions about the length of time for the reverter are still under discussion;
• Designate TMH as owner’s agent for purposes of proceeding with development on property dedicated to City; and
• Clarify a number of smaller development issues, including removal of a 50’ foot buffer on the eastern edge of the property, formerly required by a limited use site plan due to the presence of adjacent residential uses; removal of purported wetlands on the northern part of the property because the wetlands designation has been revised and the area is no longer considered to be wetlands; and clarification of how urban forest and slope requirements will apply to the development deeded to the City.

Staff has met with the applicants’ representatives, and will have a recommendation on all issues, including the issues still under discussion, before the second public hearing proposed for April 7, 2009. The construction of the TCC nursing school is imminent, and TMH/Southeast would like for the second amendment to the development agreement to be approved as soon as possible.

The proposed amendment is before the City Commission for the first of two public hearings. The second public hearing is scheduled for April 7, 2009.

OPTIONS

1. Hold the first public hearing and schedule the second public hearing on the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement for Wednesday, April 7, 2009.

2. Hold the first public hearing and schedule the second public hearing on the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement, as it may be revised by the City Commission, for Wednesday, April 7, 2009.

3. Do not hold the first public hearing on the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement, and provide directions to staff.

ATTACHMENTS/REFERENCES

1. Sketch of 81 acres owned by Southeast Community Health Services, Inc.
2. Proposed second amendment to the 2000 Ch. 163 Development Agreement.