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02/19/2008 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER February 19, 2008 Present: Frank Hibbard Carlen Petersen John Doran George N. Cretekos Paul Gibson Also present: William B. Horne II Jill S. Silverboard Rod Irwin Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee City Manager Assistant City Manager Assistant City Manager/CRA Executive Director City Attorney City Clerk Board Reporter The Chair called the meeting to order at 9:13 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2 - Approval of Minutes 2.1 Approve the minutes of the February 4, 2008 CRA meetinQ as submitted in written summation by the City Clerk Trustee Petersen moved to approve the minutes of the Community Redevelopment Agency meeting of February 4, 2008, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. 3 - Community Redevelopment Agency Items: 3.1 Adopt the Cleveland Street LOQO Guidelines entitled "Cleveland Street BrandinQ and Style Guide." After a yearlong collaborative process with the public, the DDB (Downtown Development Board) and Public Communications and Economic Development departments, the CRA (Community Redevelopment Agency) recently approved a new brand identity for downtown Clearwater. The "Cleveland Street District" brand and logo have been designed to reflect a new energy that captures the improvements downtown and the positive direction for the district as a destination for residents, visitors, and potential businesses. As a follow-up to the approval, the Economic Development and Public Communications departments were asked to provide a framework and guidelines for the use and application of the new brand identity. The "Cleveland Street Branding and Style Guide" is designed to give guidance to internal departments, downtown partners, and interested businesses in the appropriate use and application of the logo in marketing and other materials. Community Redevelopment Agency 2008-02-19 1 In response to questions, Public Communications Director Doug Matthews said staff is working on trademarking, licensing and merchandising the Cleveland Street District and Beach Walk logos. Licensing agreements will be for organizations that want to use the logo on items to be sold. Affiliated organizations will have use agreements. The CRA Executive Director will determine which organizations are designated as affiliated. Opposition was expressed to the use of black in the logo. Consensus was for staff to develop a music-related logo. Trustee Gibson moved to adopt the Cleveland Street Logo Guidelines entitled "Cleveland Street Branding and Style Guide." The motion was duly seconded. Trustees Doran, Petersen, Gibson and Chair Hibbard voted "Aye"; Trustee Cretekos voted "Nay." Motion carried. 3.2 Approve an AQreement for the disposition and development of the Cleveland Street and Prospect Lake Park site between the CRA and MOP-Clearwater, LLC of Atlanta, GeorQia, delineatinQ the terms and conditions of the disposition and development, and authorize the appropriate officials to execute same. On September 17,2007, the CRA, pursuant to CRA RFP/Q (Request for Proposals/Qualifications) 23-07 and the recommendation of the Selection Committee: 1) Designated Miles Development Partners of Atlanta, Georgia as Preferred Developer for the purchase and development of the Cleveland Street and Prospect Lake site and 2) Approved a 90-day period of exclusive negotiation during which the CRA Executive Director was authorized to negotiate a Development Agreement and Purchase Agreement, for subsequent CRA consideration, in general conformance with the Miles Development RFP/Q response. On December 17, 2007, the CRA approved an extension of the period of exclusive negotiation until February 18, 2008, to allow orderly completion of negotiations. The purpose of this agreement is to further the implementation of the plan by providing for the sale and conveyance of the project site to the developer and the development, construction and operation of the project thereon in accordance with the project plans and specifications, all to enhance the quality of life, add new residents to the Town Lake Character District, provide workforce affordable housing, and improve the aesthetic and useful enjoyment of the area through the eradication of conditions of blight, all in accordance with and in furtherance of the plan and as authorized by and in accordance with the act. Negotiations have been successfully concluded with MOP-Clearwater, LLC for purchase of the CRA parcel and development of a project with 200 - 249 residential multi-family dwelling units - with the final unit count subject to COB (Community Development Board) approval - and up to 16,000 square-feet of ground floor retail. The units shall be constructed and operated as rental units for a period of not less than five years from receipt of a certificate of occupancy, after which the units may be converted to ownership units at the owner's discretion. Ten percent of the residential dwelling units will be reserved for workforce affordable housing for a period of twenty years. Workforce affordable housing means a residential dwelling unit leased or owned and occupied by a household with a household income of 120% or less of adjusted median income for Pinellas County. For non-rental units, the sale price may Community Redevelopment Agency 2008-02-19 2 not exceed 90% of the average area price in the area as established by the U. S. Treasury Department annually. Primary business terms of the agreement: 1) Purchase of Property: $12,050 per unit @ 249 approved units = $3,000,450. The exact unit count will be determined by the COB and the price will be adjusted by multiples of $12,050. A $250,000 performance deposit will be escrowed upon approval by the CRA of the DA (Development Agreement). Developer to purchase property on earlier of: 30 days after issuance of all building permits or October 1, 2009. The CRA may repurchase at the purchase price if the developer does not commence foundation construction within 24 months of CRA approval of the DA. 2) Performance Schedule: Developer must file a complete application with the COB by August 1,2008. Developer must file complete building permit application within 16 months of CRA approval of the DA. Developer must commence foundation construction within 24 months of CRA approval of the DA and vertical construction four months thereafter. Developer must complete construction within 24 months of commencement of the foundation. 3) Project Scope: Approximately 220 units of rental @ market rate. Units must be maintained for five years after Certificate of Occupation before conversion. Approximately 24 affordable units @ 120% (or less) of AMI (Area Medium Income) for 20 years (Deed restriction). Units must be maintained for five years after Certificate of Occupation before conversion. If converted to ownership after five years, balance of the 20-year requirement to be met by sale, income, and occupancy controls to assure that 120% AMI is achieved. Developer to be initially responsible for qualification and monitoring of the program, with cooperation of CRA. Upon sale of units, owner will be responsible to work with Housing Division of City to insure affordability requirements are met/maintained. 4) Utility Relocation: CRA agrees to relocate, or reimburse the developer for the relocation of necessary utilities on site to allow the project to be constructed on the parcel, in an amount not to exceed $250,000. Although not a provision of the CRA Development Agreement, the developer also has agreed to contribute $570,000 for streetscape improvements proximate to the project site, on Cleveland, Prospect, and Park streets in conjunction and consistent with the City's Cleveland Street Streetscape, Phase II project. This commitment will be memorialized in the Development Order as a community benefit related to additional density pool units. As requested by the CRA, the developer is required to file a COB application with a preliminary site plan and design consistent with their response to the RFP/Q, a copy of which will be attached to the Development Agreement as an exhibit, and agrees that any material changes to the preliminary site plan will be submitted to the CRA for approval. The site plan approved shall be the basis for the subsequent project plans and specifications, which shall be submitted to the CRA for review and approval as owner. Any material modification of the design and/or site plan by the COB will require an amendment from the CRA. Finally, the City received a HUD (Housing & Urban Development) Department) grant in the amount of $1 ,295,000 for costs associated with the development of a regional stormwater Community Redevelopment Agency 2008-02-19 3 retention facility which became the Prospect Lake project. Since a portion of the land not actually needed is to be conveyed for the Miles project, the City/CRA will be required to reimburse HUD in the amount of $542,097 from the proceeds of the sale. At an estimated value of $35,000,000 (land and improvements), the project is estimated to generate $368,053 in tax increment in the first full assessment year the project is operational (estimated in 2013). A total of $2,689,970 in TIF (Tax Increment Financing) revenue is estimated to be generated through the expiration of TIF authorization in 2019. CRA Executive Director Rod Irwin reported staff is working with HUD to determine if the grant award must be reimbursed. The site is no longer needed for stormwater retention but is critical for the project's workforce housing component. Staff will review affordable unit sales documents to verify compliance with deed restrictions, including limits to income and sales price. It was stated that further CRA review would be necessary only if the project changes significantly. The developer and staff were thanked for their efforts. Trustee Doran moved to approve an Agreement for the disposition and development of the Cleveland Street and Prospect Lake Park site between the CRA and MOP-Clearwater, LLC of Atlanta, Georgia, delineating the terms and conditions of the disposition and development, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4 - Other Business Mr. Irwin reported that Courtney Orr began today as the Downtown Manager. 5 - Adjourn The meeting adjourned at 10:01 a.m. Chair Community Redevelopment Agency Attest: City Clerk Community Redevelopment Agency 2008-02-19 4 retention facility which became the Prospect Lake project. Since a portion of the land not actually needed is to be conveyed for the Miles project, the City/CRA will be required to reimburse HUD in the amount of $542,097 from the proceeds of the sale. At an estimated value of $35,000,000 (land and improvements), the project is estimated to generate $368,053 in tax increment in the first full assessment year the project is operational (estimated in 2013). A total of $2,689,970 in TIF (Tax Increment Financing) revenue is estimated to be generated through the expiration of TIF authorization in 2019. CRA Executive Director Rod Irwin reported staff is working with HUD to determine if the grant award must be reimbursed. The site is no longer needed for stormwater retention but is critical for the project's workforce housing component. Staff will review affordable unit sales documents to verify compliance with deed restrictions, including limits to income and sales price. It was stated that further CRA review would be necessary only if the project changes significantly. The developer and staff were thanked for their efforts. Trustee Doran moved to approve an Agreement for the disposition and development of the Cleveland Street and Prospect Lake Park site between the CRA and MOP-Clearwater, LLC of Atlanta, Georgia, delineating the terms and conditions of the disposition and development, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4 - Other Business Mr. Irwin reported that Courtney Orr began today as the Downtown Manager. 5 - Adjourn The meeting adjourned at 10:01 a.m. ~ ~~/ Chair Community Redevelopment Agency Attest: (!~:2 City erk jJ~~.Doc. _ / - \ \ \\"" """ I'", ""')..-.J€.\..OPM~;,!II" ""^~,.;_~f\WA~~"~~ ~ ;(iV",- ~.......... J:!o'- ~ ~ :n..Vr ,'v.... '1:"/V'1 ~ ~\. ' - v.... ~T '~ ~ ~.....~." ....#rt\ ~ ~!::::oi tORPORA"'" \<"::~1't-~ :::;z. ..A.. 'e . 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