Warm Mineral Springs: Talks on partnership between North Port, developer halted

NORTH PORT – The city of North Port and Warm Mineral Springs Development Group halted a plan for a partnership to redevelop Warm Mineral Springs, leaving open the question of how three historic buildings there – damaged by Hurricane Ian – could be be restored.

The city announced the termination of the public-private partnership in a Friday afternoon email.

Both the city’s negotiating team and the WMS Development Group were in the midst of due diligence on the site – including surveys of the underground geology and hydrology − when the developer submitted a revised proposal that eliminated a plan to operate the springs. The two sides said the decision to end the partnership was mutual.

Negotiations had been ongoing despite the outcry of a vocal segment of the public who want the property to remain a park.

Insurance costs a barrier

Ashley Bloom, a local member of the partnership, told the Herald-Tribune that the main red flags were related to both operating and insurance costs at the springs.

“This became a project where it was going to be difficult for us to make economic sense of the springs as it pertains to our original proposal,” Bloom said.

He cited increased labor costs and astronomical increases in insurance costs after Hurricane Ian.

North Port had been self-insuring operations at Warm Mineral Springs with respect to liability, leaving WMS Development no track record of the potential cost when it formulated its proposal.

“The negotiations team of the city did a fantastic job; they were really accommodating and provided us with all of the information and helped us gain a better understanding of the operations,” Bloom said.

Bloom said that nothing revealed through geological or hydrological testing impacted the decision.

“We were given no information that there’s problems,” he added.

Springs site has a deep historical connection

Once thought to be the Fountain of Youth when it was discovered by explorer Juan Ponce de Leon, Warm Mineral Springs was developed as a spa shortly after World War II. From December 1959 to March 1960 it was one of the sites for the Florida Quadricentennial Celebration.

The 83-acre property includes the historic springs and three buildings listed on the National Register of Historic Places, all on 21.6 acres.

WMS Development had envisioned developing the 61.4-acres of surrounding parkland for recreational purposes, as well as building a 150-room resort hotel and spa, 50 rental eco-cabins and 270 condominiums.

“The city remains open to future opportunities that align with our shared vision for the future of this part of our community,” City Manager Jerome Fletcher said in a prepared statement. “We are committed to making Warm Mineral Springs Park an asset we can all be proud of.

“The extensive research and analysis done during negotiations also gives us the confidence to move forward exploring a possible Phase II for the remaining acreage and the potential benefits it could bring to our taxpayers.”

A comprehensive real estate analysis by Sarasota-based Hettema Saba LLC found the triple net market rent value of the springs operation to be $495,000 and the market value of the undeveloped land at $16.4 million.

If the city advertises a development opportunity for the surrounding parkland, Bloom said WMS Development could again submit a bid.

“We still believe in our plan, we still believe in what could go there,” Bloom said. “If  there’s a way to try to be the developer of Phase II that 's something that we’d be interested in.”

How will patrons of Warm Mineral Springs be impacted?

For now, it’s business as usual, with city parks and recreation staff overseeing the springs while housed in a temporary admissions building, and patrons using a temporary restroom facility.

City spokesman Jason Bartolone noted that the current budget already accounts for staff to operate the facility.

The next step will be for the staff to devise a plan to revitalize the Phase I area around the springs.

The release noted that would include providing a suitable admissions building and permanent restrooms but did not address the three buildings built for the Florida Quadricentennial Celebration. The buildings are the only historic structures in North Port and are believed to have been designed by Jack West, a member of the Sarasota School of Architecture.

The most unique structure, a cyclorama, is one of only 30 that remain throughout the world and one of only three still standing in the United States.

Bartolone said it is too soon to determine whether an additional study of the buildings will be required to determine their fate.

The city once earmarked $9.4 million to restore those buildings and develop Phase I, as outlined in a plan developed by consultant Kimley-Horn & Associates.

But when bids to fulfill that plan came back at roughly double the cost, the city pursued a partnership to accomplish that goal, with development of the surrounding parkland providing the incentive for the private partner.

WMS Development pledged to commit $19 million to fulfill Phase I.

Asked if WMS Development would contribute to the city’s efforts within the 21.6-acre park if it were to ultimately become the developer of the 61.4 acres, Bloom could not commit.

“Down the road, if we were the developer we would take a look at it,” he said. “We’re not sure what the city’s plan is going to be.

“I still believe in our plan in terms of being an asset but there needs to be an economic benefit in any plan.”

This article originally appeared on Sarasota Herald-Tribune: Partnership for Warm Mineral Springs development in North Port ends