Vero Beach Waterfront Redevelopment Gets More Time To Reach Deal

The proposed redevelopment of Vero Beach’s 38-acre Three Corners waterfront property will remain in negotiations for at least another month after the City Council approved a third 30-day extension for ClearBlue Holdings. The latest extension runs through Oct. 12 and keeps alive plans to transform the city-owned property at the western end of the 17th Street Bridge into a mixed-use waterfront destination.

The city and development team have been negotiating since March 11, when a 120-day negotiation period began. As the original deadline approached without a completed agreement, the city granted an initial 30-day extension, followed by a second extension in August and now a third.

The latest delay came amid city concerns about several outstanding project documents. In early September, City Manager Monte Falls requested a revised concept plan, updated construction schedule, business pro forma and materials demonstrating that the development team had an adequate financing strategy. By the Sept. 8 City Council meeting, most of those materials had been submitted, although the financial disclosures were still outstanding. Falls subsequently told Vero News that the remaining information had since been received.

ClearBlue is a partnership involving Clearpath Services and Madison Marquette. Clearpath participated in an earlier selection process for the Three Corners project and later joined with Madison Marquette, which had provided financing support for a competing development proposal.

The current plan calls for Vero Beach to retain ownership of the property and lease it to the developer for 99 years. The envisioned waterfront district would include a hotel, marina, restaurants, retail space and public amenities. The site includes the former “Big Blue” municipal power plant property and the city’s existing sewer plant, which is scheduled for demolition in 2028.

Project representatives say work is continuing on several fronts, including environmental and permitting requirements associated with the marina. ClearBlue has also completed a hotel market study as negotiations continue.

The extended timetable reflects the complexity of structuring a long-term ground lease and development agreement for a large public waterfront site. At the same time, some city officials and residents have expressed increasing concern about the pace of the process and whether the project can move from concept to execution without further delays.

For Vero Beach, the stakes are significant. Three Corners has the potential to create a new waterfront commercial district with hospitality, dining, retail and public-access components on a property that has been largely unavailable for private redevelopment for decades.

The next several weeks should provide a clearer indication of whether the city and ClearBlue can resolve the remaining deal points and move the project closer to a final development agreement.

Source: Vero News