Council supports higher bid from former city employee

Dan Kulin

Wednesday, June 2, 2004 | 9:22 a.m.

Brushing aside allegations of cronyism, the Henderson City Council picked a proposal that will cost about $900,0000 more to build a smaller downtown retail and office building than was being pitched by an alternative bidder.

The council voted 4-1 Tuesday to have city staff negotiate with a development group headed by recently retired city Construction Manager John Simmons and architect Ron Hall to build a two-story building on city-owned land on the southeast corner of Basic Road and Water Street. Simmons said the building could be finished in 18 months under a best case scenario.

The Simmons/Hall proposal, like a competing proposal from the Pelican Development Corporation, is asking the city to give them the land for their projects for free. But the Simmons/Hall proposal also calls for almost $1.4 million in city redevelopment funds.

Pelican Development is asking for all 3.5 acres the city owns on that corner, which is worth about $1.3 million. Simmons/Hall asked about $834,000 worth of land, which consists of most of the corner lots.

Pelican also said it had three tenants committed for 23,100 square feet of its building whereas Simmons/Hall had one tenant committed for 2,500 square feet.

Councilwoman Amanda Cyphers, the lone vote against going with Simmons/Hall, said she wanted to go with Pelican because they were asking for less from the city and offering to build a larger building. The Pelican proposal called for building a three-story 60,000-square-foot building. The Simmons/Hall plan calls for a 30,0000-square-foot building in "phase one," but exactly what phase two would consist of is unknown, Simmons said.

"I just saw more square footage and all they wanted was the land," Cyphers said. "I have that comfort level too but I have to be responsible and look for the lowest bidder."

But it was that "comfort level" that won over the other council members. Not only were council members more comfortable dealing with Simmons, who retired in February after almost 23 years working for the city, there were some concerns with Pelican Development.

Councilman Steve Kirk said: "I have to make my decision based on comfort level, who I trust."

Kirk also said he was bothered by the state's recent revocation of Pelican Development's general contractors license.

Pelican Development President Don Ross said the license was revoked after he got a construction permit for an out-of-state contractor, which he didn't know was wrong, and decided not to fight the penalty. Ross said he doesn't need the license to continue working as a developer, and is now building three office buildings near the intersection ot Gibson Road and Horizon Ridge Parkway.

But Pelican partner Walter Watson, president of KWM construction, said he was upset by the council's decision, and said Simmons' involvement with the project so soon after leaving the city was a conflict of interest.

But Kirk brushed off the accusation of cronyism.

"That's what I'd say if I lost out," Kirk said, adding that the nearly $1.4 million subsidy is worth paying.