Delray nearing deal on Old School Square garage space?

By David Sedore, Palm Beach Business.com

DELRAY BEACH — Delray Beach is inching closer to doing a deal with a local general contractor who wants to put a blues club/market in the city’s Old School Square parking garage.

At the same time, it’s leaving open the possibility that the 10,000-square-foot space could be used as an artist’s co-op instead.

Thomas Kinsloe, a Delray Beach resident and contractor, is proposing a lease/purchase deal for the space as a venue for live music, a restaurant, culinary arts kitchen and assorted specialty foods markets.

At the same time, the Artists of Palm Beach County is eyeing the space as an artist’s co-op, which would provide studio space, galleries, performance and meeting space, plus workshops and community outreach programs. It would be open to every type of art, according to group spokeswoman Beverly Snow. The co-op would provide a link between the city’s Pineapple Grove Arts District to the north and east and Old School Square, the hub of cultural activities in the city, to the south and west, Snow said.

old school square garage retail space in delray beach

Delray Beach has been trying to find a buyer for the Old School Square parking garage retail space for nearly two years. The city might have a buyer in Thomas Kinsloe.

Old School Square Executive Director Joe Gillie said the co-op would have “great synergy” with Crest Theater, Cornell Museum, entertainment pavilion and the myriad programs that take place there.

The idea of an artist’s co-op in the garage space has considerable appeal for city commissioners, who are looking for ways to increase pedestrians to Pineapple Grove, an area that is pedestrian-starved. But in the end it might come down to money, especially with the city in cash strapped and likely to become more so over the next year or two.

Kinsloe is proposing to lease the space for four years at a cost of $140,000 a year with an option to buy it for $1.44 million, about $90,000 more than it is current appraised value. He also would cover the cost of finishing the space for about $500,000. The rent payments and the construction costs would go toward the purchase price. Additionally, leasing the space would put it on the tax rolls and generate a few thousand dollars a year for the city.

The Artists of Palm Beach County, meanwhile, are proposing a five-year lease at $1 per year, with an option to buy at the end. The city would be responsible for rough-finishing the space — pouring a concrete floor and basic plumbing at a cost estimated to be in the vicinity of $180,000.

“It’s a tough call,” Commissioner Fred Fetzer said. One the one hand, the artist’s co-op would be a boon to the area. On the other hand, there’s that nasty budget problem the city has. “I still worry about the fiduciary duty we have. The city is obviously faced with the major financial concerns.”

“I’d absolutely love to have the artists,” Mayor Woodie McDuffie said. “Unfortunately, at this time, it would be irresponsible for us to do that. We’ve got revenue staring us in the face. We’ve got to take a strong, strong look at it.”

Commissioner Gary Eliopoulos said a better route might be to hold on the property — lease the space until the commercial real estate market bounces back in four or five years. He also noted the garage’s prime location in the heart of Delray two blocks off the city’s major artery, Atlantic Avenue. He also criticized the Kinsloe offer as “wishy-washy.”

Commissioners Tuesday agreed to have City Attorney Brian Shutt negotiate several issues with Kinsloe, while giving the Artists of Palm Beach County a chance to sweeten its offer.

 

 

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