CLICK HERE TO VIEW THE E-NEWSLETTER

Welcome back to LCRA Now.  This is our second quarterly issue. We have 2nd quarter reports on  leasing and sales activity in our Downtown and Dixieland Community Redevelopment Areas and more information that will be useful to businesses as they locate in our city.   Please let us know of any deals and/or development issues that should be featured.  We look forward to your feedback.

It seems that the food scene is what’s happening Downtown.  We have one new restaurant open, one announced,  one expansion of both space and service, a new owner of a favorite outdoor dining spot, and a new wine bar in one of Downtown’s established fine dining destinations!

• At 127 S. Kentucky Avenue the Paca family has opened Bosphorous Turkish Kitchen.  They leased the entire 2,200 SF and are serving authentic Turkish cuisine for lunch and dinner.
• The Left Bank Bistro, an 800 SF cafe in the Parisian style, will be opening on July 18 in the Lake Mirror Tower on Massachusetts Ave.  The menu will include chicken salad, lobster bisque and other light fare.
• Fresco’s Bakery and Bistro owners Tina and Tim Calhoon are in the process of expanding to the contiguous 1,200 SF on the north side of their location.  This expansion will result in not only more space for those daily lunch crowds, but a new wine bar and dinner service.
• New owner, Barbara Shaw Reardon,  of the Garden Bistro at the Magnolia Building has updated the look of the space and the menu including wine and tapas on Friday nights.
• Bay Street Bistro owners James Rawlins and Stephen Blois will be offering a wine tasting dinner menu on Friday nights beginning July 29 with live jazz.  The new wine bar with $5 glasses and $20 bottles is open as of July 1.

Office leases signed in the 2nd Quarter include:

• 808 E. Main Street, 3,600 SF to Fidelity and Guarantee of Florida, LLC
• 226 N. Kentucky Ave, Clonts Building, 1,800 SF to Lakeland Economic Development Council, move in date November 1, 2011- both of these deals were handled by A. J. Tomlinson of  Maxim Commercial Realty LLC.
• 100 S. Kentucky Avenue, The McKay Building, Platform Art has leased a 305 SF office suite in this downtown building.
• SunTrust Plaza, 210 S. Florida Avenue, Trilogi has expanded to take the entire 12,000+ SF fifth floor – Jack Stollo of Broadway Real Estate Services handled these two leases.
• 402 S. Kentucky Avenue, citizens Bank & Trust Building, The Department of Education – Blind Services has expanded by 900 SF for a new total of 2,265 SF and extended their lease for six years – Philip Weber of CB Richard Ellis was the broker for this transaction.
• 231 N. Tennessee Ave, Tennessee Carriage Lofts, the Downtown Lakeland Partnership has moved into one of the office suites in this renovated office/loft mixed use property. This gives the Partnership a much needed physical presence Downtown.  Bruce Lyon of Swan Advisors leased the space.
• 101 W. Main Street, 650 SF leased to Main Street Financial by Cory Petcoff of Baron Realty.

Developers’ Corner

Wastewater impact fees: what are they, who pays them, when are they assessed and by whom? These are all questions we have been asked by business owners, brokers, and property owners.  The most recent inquiry came from a business owner who was caught by surprise when he received a bill for Excess Wastewater Impact Fees.  How does this happen and how can this be avoided?

To find out we met with Kimberly Parolini, Manager of Finance Customer Billing, City of Lakeland.

Typically, the initial wastewater impact fee for any commercial property is paid by the developer or owner prior to the initial occupancy.  The consumption calculation is done by an engineer hired by the developer/owner or by the City’s Water Engineering Department.  The calculation is based on a number of criteria, including, but not limited to: type of business, square footage, amount and types of plumbing fixtures, and floor plans.  For restaurants, seating capacity is also considered.  All water usage is monitored by location and all impact fee credits associated with those locations are tracked.

If the space has previously been occupied there may not be any new impact fee calculated or assessed.  However, this is how a customer can be surprised at a later date by an Excess Wastewater Impact Fee.   An Excess Wastewater Impact Fee is assessed when current usage surpasses the initial consumption calculation/usage.  Following occupancy, if the customer has more wastewater usage than had been anticipated, the consumption calculation will be completed again based on the actual use and all the other factors.  If the previous impact fee covers the new calculation, no new fee will be assessed.  If the new calculation is higher, an additional fee will be assessed

Customers will be notified in writing thirty (30) business days prior to billing for Excess Wastewater Impact Fee.  It is important for the customer to respond to the letter if they are aware of leaks that existed at the location.  The City offers a free water audit to determine if leaks are present which may be considered when assessing the fee.  Excess Wastewater Impact Fees can be paid over a six month period.

But how can this situation be avoided?  Whether you are a broker or owner leasing space, or a business owner moving into a space where the use is the same, find out what the credit capacity is for the space for that use.  That way the customer (business owner) can monitor water usage, see if they are staying within the capacity established.  If they are not, remedial action can be taken – installation of low flow toilets, motion sensor faucets, making sure that there are no leaking fixtures, etc.

What happens if the usage is lower than the capacity calculation for which the impact fee has been paid?  The customer must keep the flow lower for two years.  Following this, a new capacity calculation can be completed and a refund is possible.  If a customer who has been billed for an Excess Wastewater Impact Fee lowers their usage, there is a possibility that there could be a refund.  Once again, the new lower consumption must be monitored for a substantial period of time prior to that consideration and the same tenant must be in the space and paying the monthly utility bill for a two (2) year period.

If you have questions regarding this subject, Ms. Parolini is available to answer or will be able to direct you to an expert who can address your question.  She can be reached at 863-834-8276.  And remember it is always in the best interest of us all to conserve water whenever and however possible – it could save you some dollars too!