$22 Million OLF-8 Deal Runs Into Stumbling Blocks, County And Developer To Continue Negotiations

March 8, 2024

Thursday night, a multi-million dollar deal between Escambia County and developer Fred Hemmer and his partners with Beulah Town Center (BTC) for the OLF-8 property on Nine Mile Road ran into some stumbling blocks to send the parties back into negotiations.

In February, the Escambia County Commission voted unanimously to enter into two weeks of contract term negotiations with BTC. At that time, BTC’s offer was $20 million, but they returned with a “top line” $22 million offer this week for 290 acres while sticking with the master plan for the property.

“I think it’s time to move forward,” District 1 Commissioner Jeff Begosh, who represents that area, said to open commission discussion Thursday night. “We’ve been living this thing since 2015…We are at a point where we have an offer on the table that really would give us all a win.”

“I think they’ve a good faith offer,” Bergosh continued. “It allows us to keep 250 acres to create jobs. That field generates no money for us right now, no money for taxpayers. It sits there empty…Now is the time to cash it in.”

“Candidly, there are a number of items in the proposal that I’m not going to be able to support in the way they’ve been presented to us.” Barry told the board. “I would be comfortable, what we gave last time, was saying that currently we are negotiating with them. If the intent of the majority of the board is to continue those negotiations to see if we can get to a point that we are able to agree, then I would be comfortable with that.”

“It’s more than one or two things. There Are a few sections that I think are going to need some attention. The top line number may need some attention,” Barry added, saying that the language in some sections of the proposed agreement need attention. “We received an agreement, now we can work off that as a base.”

“I actually agree. Eventually, we have to sell that property and get tax dollars off it,” Commissioner Mike Kohler said. “I do think the up front money and the overall price could improve a little bit.”

Barry took issue with the county becoming a member of an association that would public funds for a main road, aesthetics and maintenance of common infrastructure.

Barry said the closing might be 18 months to two years because it “almost puts perpetual extension on the due diligence period”, adding that he wants to see more hard money with non-refundable deposits.

“I do think the main road going through and the county being part of the association is a no-go. It doesn’t make sense to me,” Kohler said.

Hemmer said the county needs to build the road. He said the developers would not need the road if the county did not have 250 aces at the back of the overall parcel.

Commission Lumon May said his deciding factor will be the top line number and the return on investment for the county and citizens of all five districts.

“There has to be an ROI for the citizens I represent,” May added.

Commissioners will meet individually with County Administrator Wes Moreno and County Attorney Alison Rogers to express their concerns as Moreno and Rogers work to come to terms with FTC. They will have a goal of returning any revised agreement to the commission at their April 4 meeting.

Hemmer asked the county to have their changes to him within two weeks, if possible, for additional negotiations before the meeting date.

Comments

5 Responses to “$22 Million OLF-8 Deal Runs Into Stumbling Blocks, County And Developer To Continue Negotiations”

  1. JOHN on March 12th, 2024 2:56 pm

    They can always build another car wash and Starbucks on that property. It’s not like we need actual good paying jobs in Escambia County. LOL

  2. Brian on March 8th, 2024 4:15 pm

    At this rate, I’ll be able to afford this land soon.

  3. Concerned Beulah resident on March 8th, 2024 11:58 am

    I keep seeing all the development plans and wonder why the BOCC are not proposing the best plan for the community and telling the developers this is what is left to purchase and have them submit their proposed development plan from there. Like the plan above. Why would anyone want to build a main road thru a mixed use residential neighborhood to get to the back of the property to access light industrial? It makes no sense, unless the County has plans for access from another route not yet disclosed. And if so, then who is being impacted by those unknown plans? The County was given one of the best remaining large properties around and they are about to screw it up over a developer wanting to take advantage of the housing and retail market. Develop the property into something the community can be proud of and the County residents can stand behind with you on. Its sad when Navy Fed builds a park better than anything the County has and its open to the public and we cant even get our elected officials to propose a real community development plan. Oh wait we did, but they didn’t want to discuss that taxpayer funded study and attempted to squash it with back door conversations and hidden emails.. how soon some forget.

    Build a legacy, not another house..

  4. John Connor on March 8th, 2024 9:39 am

    This is ridiculous it has taken this long. If you don’t want to sell it then DONT!!! Stop cookie cutting it and changing your minds then get upset when you get horrible offers from shady developers. No one just wants 210 acres or what ever they want it all. At this point you might as well just not sell it and turn it into a county landfill. That would be fitting for Escambia County and how it’s ran by it commissioners.

  5. Native on March 8th, 2024 9:05 am

    I was a resident of Escambia county for 35 years and have lived in a few other cities since. The intransigence that exists on the board keeps the area from prospering. You just don’t see this type of delay in other cities/counties where the local government supports growth, modernization and development that improves quality of life. Beulah will always be a backwater as long as the board is populated with obstructionists with no real background in compromise and modernization.

Written by William Reynolds · Filed Under News