Church Street Station's $3M Incentives Deal Winds Down

The $1.5 million is part of a total $3-million incentives package offered to the developers by the city and the state. City staffers and Downtown brokers in a position to know tell GlobeSt.com the revised economic incentives agreement calls for the developers to create 300 full-time jobs by the end of 2004 and 500 jobs by yearend 2005. The original deal called for Pearlman-Kling to create 500 fulltime jobs by year-end 2003 and another 100 jobs by the end of 2006.

The incentives controversy escalated earlier this year when the city withheld funds to the developers after alleging they missed certain construction and renovation deadlines. Orange County Circuit Court records show at least 10 subcontractors have filed construction liens totaling $2.5 million against Church Street Station.

Most of the $1.5 million coming from the city is earmarked for the restoration of the 100-year-old, 136,000-sf, three-story Church Street Exchange building, the developers have previously confirmed. Under the agreement, Pearlman-Kling has 14 years to repay the money to the city and will pay only the interest on the loan for the first four years.

Pearlman-Kling is also getting 12 years of tax rebates with an estimated annual value of $60,000, starting in 2005 and based on a percentage of any increase in the property's assessed value resulting from the partnership's improvements, according to city officials.

The developers also negotiated to receive a total 500 free parking spaces from the city--400 under Interstate 4 Downtown for up to five years and 100 in the Church Street Market parking garage, also for five years.

Pearlman, Kling and their investment group bought Church Street Station on May 5, 2000 for nearly $15.9 million from the Joe Lewis investment group of Orlando and London. Area land brokers dealing in Downtown dirt tell GlobeSt.com that based on the property's 7.3 acres alone, the $15.9-million price equates to $2.2 million per acre or about $49.84 per sf, a bargain at the time for prime acreage fronting Interstate 4.