By Shawna Sundin
Times-Union staff writer

ST. AUGUSTINE -- The St. Augustine City Commission this week picked a well-known Jacksonville development company as its top choice to develop the San Sebastian River waterfront property.

An 85-slip marina, hotel, residential buildings, restaurants, shops and a river walk are some of the things The Vestcor Cos., in partnership with a Jacksonville building company, have planned for the 14-acre property along King Street.

The commission on Monday authorized city officials to begin negotiations with Vestcor and The Hutson Cos. after hearing presentations from a committee of former mayors formed earlier this year to review the four development proposals.

The Vestcor-Hutson proposal earned the most points from the committee. Points were given based on several things, including the amount of money offered to buy the property, the various uses for the property and the number of public amenities, Commissioner Alex Christine said.

"Vestcor clearly came out ahead in almost every category," Christine said.

Christine said Vestcor-Hutson's proposal stood out among the other three because it combined so many different uses for the property, bordered by King and Lorida streets.

The proposed development, at one of the city's entrances, includes a water play area for children, public restrooms, two- and three-bedroom condominiums and town houses, public waterfront access, cafes, boutiques, public parking and a hotel with rooms for conventions and conferences.

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The Vestcor-Hutson team offered $3.7 million for the property, which was appraised at $3.2 million, said Assistant City Manager Jack Cubbedge.

The City Commission initially voted in 1999 to sell the riverfront property to the Gainesville-based McGurn Investment Co. until St. Augustine developer Doug Randall offered the city $4 million-plus -- more than McGurn's offer of $2.5 million.

After hearing the drastically different offers, the commission decided in May to request more proposals and formed the committee to review them.

A contract was never signed between McGurn and the city because of issues regarding the land, such as the cleanup of soil contaminated by a plant once housed there.

The city acquired the land about 10 years ago from several property owners, including Atlanta Gas & Light, which has since taken responsibility for the contamination and is under an order from the U.S. Environmental Protection Agency to clean up the site.

The Sebastian Inland Harbor Development Group, which Randall put together, earned the second-highest number of points from the committee. The group offered $3.5 million for the property, Cubbedge said.

Lee Enterprise Southeast of Steinhatchee, which offered $6 million for the property, ranked third. But the company wanted to pay the city as parts of the developmentd, Cubbedge said.

Cubbedge said he hopes to present a contract with Vestcor-Hutson to the commission for approval by the end of the year.

Construction can begin as soon as the cleanup at the site is completed, and the U.S. Environmental Protection Agency OKs it. Cubbedge said that should take about two months.