TAMPA - Jacob "Booky" Buchman, the man who stood up at a city council meeting last week and offered to pay more than $4 million for a stake in Centro Ybor, made his deal official Tuesday.

Buchman's attorney, Bob Warchola, sent a letter to the city Tuesday in which he outlined the eight conditions they want met before Buchman makes good on his money.

City Attorney David Smith, however, says several of the conditions are impossible to meet and questions whether the offer was made in good faith.

"It's unacceptable," Smith said.

Buchman declined to comment.

"It's a written offer," his attorney said. "The city can accept or reject it."

On Thursday the city council, meeting as a Community Redevelopment Agency, was set to consider a deal with M&J Wilkow, the new owners of the Centro Ybor entertainment complex. The deal would set up a schedule for Wilkow to pay the city, which, in turn, would use the money to repay an outstanding loan to the U.S. Department of Housing and Urban Development. The agreement between Wilkow and the city also would allow the developer to bring office and residential uses to the predominately retail complex.

With several council members and Ybor City activists questioning whether the deal was in the city's best interest, Councilman Charlie Miranda pointed out the city doesn't have a better option. Then, speaking off the cuff, he said that if someone would offer to pay even half of the city's debt to HUD, he'd take that person up on the offer - and even shine his shoes.

Buchman, a deep-pocketed, long-time Ybor City property owner, said he'd take Miranda up on the offer.

Taxpayers On The Hook

The city's taxpayers long have been on the hook to subsidize Centro Ybor. In 1997, the city guaranteed a $9 million loan from HUD to help finance the center. The debt is in the form of a second mortgage on the property.

The city hoped that Centro Ybor would generate enough money that it could pay off its debt. That didn't happen, and the city pays about $770,000 a year in debt service. The city still owes more than $8 million to the federal agency.

Of that $770,000, nearly $200,000 is paid with tax dollars generated at Centro Ybor. Tax increment finance districts are common throughout the city. Taxes collected in TIFs above a base level are spent on improvements in the neighborhood.

In the letter to the city Monday, Warchola wrote that Buchman would pay up to $4.1 million to the city, representing half the city's obligation to HUD. The letter states that the city must give Buchman time to complete his due diligence as well as assign him all rights under the development agreement between the city and Wilkow.

The agreement spells out terms such as how the property can be developed, parking requirements and other zoning requirements.

Smith says that's a deal breaker. The city can only assign a development agreement to a property owner, not simply the owner of a second mortgage.

Miranda agreed.

"I'm not a lawyer, but when the offer was made, it was not made with conditions," he said.

City Attorney Rejects Offer

In a letter to the council late Tuesday, Smith wrote that the city will not accept the offer. He said that the offer is more complicated than it appears on its face, asserting that Buchman wants to buy Centro Ybor from Wilkow.

"As such, the proposed offer seems more likely intended to disrupt the pending transaction with Wilkow, with the prospect of increasing their leverage for negotiating a lower purchase price of the property in which event they will not need our second mortgage," Smith wrote. "That is, it is highly unlikely that they really intend to purchase our second mortgage, since they are really trying to buy the property."

Buchman has declined to talk about his motivation to offer the city more than $4 million, though those who own the second mortgage on a property have the right to try to buy the first mortgage. That means if Buchman were to secure the second mortgage, he could try to buy Centro.

Wilkow Senior Vice President David Harvey said Buchman's attorney called Wilkow's local attorney and asked whether the Chicago-based company would consider an offer on the property.

"The bottom line is, we have not received a verbal offer," Harvey said. "I have a hard time imagining they would offer us enough money that we would part with the property at this point."

Unclear is to what extent activists Joseph Capitano and Alan Kahana are part of the deal.

Kahana said the offer letter was drawn up by Buchman's counsel, but "depending on what happens here in the future, I might be involved."

Capitano declined to comment.

Kahana and Capitano earlier made a bid to buy Centro Ybor, but the seller opted to sell it to Wilkow instead.

Buchman and Capitano are owners of Buc-Cap, the company that owns the S. Agliano & Sons Fish Co. property on Seventh Avenue in Ybor City.

Mayor Pam Iorio did not return a call for comment. The council is expected to address the issue Thursday.

Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com.