Untitled Document

CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: April 22, 2009
SUBJECT/TITLE: Second of Two Public Hearings on Second Amendment to the Tallahassee Memorial Hospital Development Agreement and Approval of a Modification to the Current Lease Between Tallahassee Memorial Hospital and the City of Tallahassee
TARGET ISSUE:

STATEMENT OF ISSUE

On February 9, 2000, the City Commission approved a Chapter 163 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 construction of a new nursing school and to adopt a special hospital transportation concurrency policy. 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 second of two public hearings. The first public hearing was held March 25, 2009.

Also before the City Commission in this agenda item is a request for a modification to the existing lease with TMH to add property TMH is deeding to the City. The property being deeded to the City includes the site for the TCC Ghazvini Center. See Exhibit F to Attachment 2, which depicts the area of approximately 40 acres that will be deeded to the City, then added to the lease. The proposed First Modification to Third Amended and Restated Lease Agreement is attached as Attachment 4, and is also before the City Commission for approval. City staff also requests that the City Manager be authorized to execute the lease and any documents necessary to implement the development agreement and the lease.

RECOMMENDED ACTION

Option 1: Hold the second public hearing and approve the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement (Attachment 2). If the Second Amendment is approved, then approve the First Modification to Third Amended and Restated Lease Agreement (Attachment 4) and authorize the City Manager to execute the lease and any documents necessary to implement the development agreement and the lease.

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 nursing school project was to be reviewed. It was premised on the northern portion of the 81 acres being deeded to the City with all but road right-of-way and the stormwater management facility 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 20 years from the date of the second amendment (2029) pursuant to recent amendments to Chapter 163, Florida Statutes;

· Acknowledge the 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 for a pro rata share of maintenance costs for the stormwater management facility based on the City’s actual use of the 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 policies adopted in the 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 20 year reverter if not completed by the City;

· 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; removal of an unnecessary access point to the east; and clarification of how urban forest and slope requirements will apply to the development of the property deeded to the City.

Since the first public hearing on March 25, City staff and the representatives of TMH/Southeast have resolved all issues. The construction of the TCC nursing school is imminent, but cannot begin until the second amendment is approved.

Required statutory notice has been provided to the owners. (Attachment 3) The proposed amendment is before the City Commission for the second of two public hearings. The first public hearing was held March 25, 2009.

Also before the City Commission in this agenda item is a request for approval of a modification to existing lease with TMH to add property TMH is deeding to the City. The property being deeded to the City includes the site for the TCC Ghazvini Center nursing school. See the exhibit to Attachment 4, which depicts the 40 acres that will be deeded to the City, then added to the lease. The proposed First Modification to Third Amended and Restated Lease Agreement is attached as Attachment 4, and is before the City Commission for approval. This modification to the Lease will allow TCC to develop the Ghazvini Center nursing school in accordance with the requirements of the development agreement.

The terms of the development agreement and lease will require an exchange of deeds and easements between TMH, SECHS, and the City for the Property and the northern right-of-way. City staff requests, as part of this item, authorization for execution pursuant to the City Commission document signature policy of any documents necessary to implement the development agreement and lease, including, but not limited to, deeds and easements.

OPTIONS

1. Hold the second public hearing and approve the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement (Attachment 2). If the Second Amendment is approved, then approve the First Modification to Third Amended and Restated Lease Agreement (Attachment 4) and authorization for execution, pursuant to the City Commission document signature policy, of the lease and all documents necessary to implement the development agreement and the lease.

2. Hold the second public hearing and approve the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement (Attachment 2), as revised by the City Commission. If the Second Amendment is approved, then approve the First Modification to Third Amended and Restated Lease Agreement (Attachment 4), as revised; and authorization for execution, pursuant to the City Commission document signature policy, the lease and all documents necessary to implement the development agreement and the lease.

3. Hold the second public hearing and do not approve the Second Amendment to the Tallahassee Memorial Hospital New Facility Development Agreement; do not approve the First Modification to Third Amended and Restated Lease 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.
3. Notice to owners of second amendment to the 2000 Ch. 163 Development Agreement.
4. Proposed First Modification to Third Amended and Restated Lease Agreement.