Sept. 25–Jeff Vinik is bringing in a partner with far more resources for what could be a billion-dollar redevelopment around the Amalie Arena where his team plays: Bill Gates.
Or, at least, an investment company controlled by the founder of Microsoft Corp., Seattle-based Cascade Investment.
“They are taking a leap of faith,” said Tod Leiweke, Vinik’s top executive with the Lightning and the person in charge of his redevelopment plans. “This is not for the feint of heart. But they see our passion, and they see Jeff as a unique guy.”
Leiweke did not disclose how much Cascade will invest in the project, but he said the overall goal is to make the whole district a profitable project that includes residential buildings, new offices, likely a new grocery store and an overall walking neighborhood. Vinik’s team will soon take to the road on a nation-wide tour to visit CEOs and persuade them to expand into the new neighborhood — which will likely have a new name as well.
Cascade officials “do not want to be out front, but it says to us that there is a pretty good idea here,” Leiweke said. “We are grateful that they have come along with us on this ride, but we also owe them a great effort and there is a lot of work in front of us.”
Without giving details, Leiweke said the overall plan for the area stands a chance of being a “billion dollar project,” and added that “urbanization is not a fad.” Likely the whole street grid pattern around the district will be re-alligned, with new patterns for walking, driving and other ways to get around.
Cascade’s investment is a sign that Tampa overall has come of age and is an endorsement of the city, said Tampa Mayor Bob Buckhorn, who met in private at the Arena with executives from Cascade.
“This investment by Cascade is significant,” Buckhorn said. “Not only in terms of the amount of money potentially involved, but the message it will send to the world that Tampa is an emerging marketplace and place you want to be. If you miss that train you’ll miss out on an opportunity … You’ll see other investors, hedge funds, pension funds and institutional capital looking at Tampa now as a potential investment.”
It’s just a coincidence, Leiweke said, that Gates’ non-profit foundation has contributed to remaking schools in Hillsborough County, and an investment company connected to him is now stepping into the downtown Tampa area.
Cascade will be working somewhat behind the scenes, Leiweke said, as a series of executives work to remake two-dozen acres around the newly renamed Amalie Arena.
That master plan — to be revealed more in about 60 days — will generally include new residential projects, new office buildings, probably a grocery store, a major parking garage, more entertainment venues and a host of renovations to make the area a more connected district.
Those connections should, Leiweke said, include walking, driving, boating and even paddle-boarding up to the arena. Himself an avid paddle-boarder, Leiweke has even paddled from his home on Davis Island to a hockey game at the arena.
Vinik and his team have been relatively quiet about specifics of their plans, and Leiweke declined to comment on rumors that the company would buy the Marriott Waterside hotel next door.
The Marriott, just next door from the arena where Vinik’s hockey team plays, remains a signature hotel property in the downtown area, with commanding views of downtown on one side and the Bay on the other.
Besides the Marriott, Vinik also plans another significant not-yet-named hotel project across the street from the Marriott Waterside, at the corner of Florida Avenue and Old Water Street, that is going through the zoning process with the City of Tampa.
The founder of Microsoft Corp., Gates had a net worth of $72.9 billion as of last year, according to a ranking by Bloomberg News, making him the world’s wealthiest person. His investments through Cascade include stakes inEcolab Inc., the St. Paul, Minnesota-based provider of sanitation and health services, Phoenix-based waste disposal companyRepublic Services and Montreal-based Canadian National Railway. .
The deal between Vinik and Gates did not come together from any personal connection between the two, Leiweke said, though he characterized Vinik as a “rock star” in the investment world, with a well-known reputation. Cascade saw interest in the project, Leiweke said, and about six months ago, executives from Cascade visited Tampa and they’ve been working behind the scenes ever since.
Though Cascade will be an investor, Vinik will still retain majority control of the project.
The next phase, Leiweke said, involves a nation-wide road show to visit CEOs of major companies to show off the Master Plan for the Channel District, and persuade them to expand into soon-to-be-build office buildings, if not move their headquarters here.
That “Road Show,” he said, would resemble something of an economic development venture, done in concert with officials from the City of Tampa, Hillsborough County and others.
“We can bring those prospective CEOs here,” to the Amalie Arena, Leiweke said, “and have Steve Stamkos skate up to them after a game … and take them to a Tom Petty concert, and show them what a cool, work/play place this can be.”
Leiweke’s disclosure of Cascade as an investor came with a few other developments in the area.
Vinik’s development team hopes to add a medical education complex to the neighborhood, and are still in talks with the University of South Florida for a project in the area.
The Lightning is not yet profitable as an organization, Leiweke said, but has made big progress since Vinik bought the team several years ago.
The other big change for the Channel District may well be a new name.
Vinik has hired long-time developer Bob Abberger, who originally helped develop the Marriott Waterside, as managing director of development for the area, and he said the company is pondering a new name for the district to help make its identity and brand more distinct.
“It’s more a question of what name,” Abberger said. “This will be a unique and distinct area with its own sense of brand and arrival.”
Abberger, who started his new job with Vinik on Monday, is already working on the sustainability aspects of the project, he said. “This is going to be world class.”
The hotel project, which Abberger led for Trammel Crow, and now leads for Vinik directly, may be among the first structures to break ground — likely in 2016, because of the complexity of the site.
As for the most challenging task in the overall plan, Abberger said: “Meeting Jeff’s aggressive time-frame to make things happen. He’s put his foot squarely on the gas pedal.”
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