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10-19-1992 . . . '. ., .. . . .. , '. . . .' ',' ." l'- . ~ . , , '. ' '. \' '!. :~, ," ,", .:' -:' '", t . ; " ',." : . . .. . Agenda/C . 10-19-92 . .' '-." . ." > . ',' -I"' I . . '." o '! IS '~ ", - , ,. ~;:.' ~. f;~ ~i' . ~. .1\': , ~; z. - <,; I. Call to order II. History III. Future Direction IV. Rules & Procedures V. Adjournment AGENDA Community Redevelopment Agency Goal Setting Meeting October 19, 1992 9:00 A.M. I' 'If,~' /,~' ,'~ ,. ",',',' ,,", _ ",., ',,' I I, \'/," ( ,:.i' '. ',,It\'~ "<~;',, ' MEMORANDUM TO: Michael J. Wright, City Manager FROM: Jerry D. Sternstein, Economic Development Director ~ Post RFQ Status/Economic Development SUBJECT: DATE: October 15, 1992 Clearwater's downtown redevelopment activities have reached an important juncture. The most recent efforts formally began with the hiring of an Economic Development Director in June, 1989. The recruitment for the position was extensive and specific. The advertisement called for "significant private or public sector urban economic development experience with an emphasis on downtown redevelopmentll. In July, 1988, more than a year prior to the hiring of the Economic Development Director, The St Petersburg Clearwater Times ran an edl tor ial tha t succinctly summar i zed the need for such an activity. The e~ltorial dealt with the desirability of fostering construcciv2 interaction between the Community Redevelopment Agency (eRA) and the Downtown Development Board (DDB) and the creation of a new City Departme~t to carry out economic development activities in order to avoid the previous efforts which I,vere characterized as "splintered". The editorial stated that the City Manager's office and the Economic Development opera tion would def ini tely function best in tandem wi thin the City administrative structure. This editorial is attached as Exhibit 1. During the interview process which preceeded the selection of an Economic Development Director, candida tes were advised of the goals of the new venture and the resources that were potentially available to achieve the goals. No particular emphasis was given to any aspect of redevelopment that would indicate priorities favoring retail recruitment over office, entertainment or other types of development. The need for a catalyst project was discussed in detail but when it was suggested the bayfront was the most appealing site for a proJect, the controversial nature of that sit.e was stressed. Generally, the interviewers emphasized the CRA was to be the "sticks and bricks" development group while the DDB would deal wi th image building and promotions. Since promotional brochures were nonexistent, a priori ty of the DDB was to prepare a Request for Proposal to select an advertising agency. This endeavor was initiated prior to the hiring of the Economic Development Director but problems in the initial procedure necessitated a second RFP which was done by the Economic Development Director shortly after his arrival. The Director was to be responsible for the formulation -- 1 - 1.1';' r . ':' ~ >,~' ',", >'" ,"; ~< , :;,' <;: "\~:!" ~:'~~:, ~.. :: :,:) ::; :, ',; ,',: :~" '; , :,<':' '::' :', :,c~" ;,\': f',,: < I:: .' \;; Y ':'>' ,::.'>:: .../~. ../....., ....\. ,.1...... ~I ....f.__ '.'// ... .., / "" ..... . , " ----~....... ~,,' ~, .... ,'. > ," " . , . , . . and implementation of a cohesive work program that would blend the activities of the DDB's project development activities of reconciling two diverse priority by the Assistant City media/public reI a tions work of the CRA. The challenging public bodies was given a Manager and the City Manager. with task high Two memoranda from Michael J. Wright, then Assistant City Manager, both dated June 7, 1989 synthesized and formalized the roles and responsibi Ii ties of the CRA and the DDB in the newly structured downtown arrangement. These documents are included as Exhibits 2 & 3. While It was recognized that the memoranda were not and could not be all inclusive, the foundation for what was hoped would be a mutually supportive and productive relationship was established. In the cases of both the CRA and the DDB, fundamental shifts in representa tion have taken place and are 1 ikely to con tinue to occur. This makes it important that we understand what transpired in order to chart meaningful future courses of action. rrhe events \vhich began in 1989 are easily chronicled. Numerous work programs, agenda items and informational memoranda have been disseminated and are on file in the Economic Development Department. In addition, the media coverage of every aspect of the program \-ldS extensive. The first Department Work Program dated 10/89 and subsequent related memoranda are included as Exhibit 4. These documents illustrate the extensive communication with all parties involved in downtown redevelopment that characterized the economic development program. Two important Request for Proposals dominated the first year of the program. The first RFP resulted in the retention of Pearson, Thomas/LKW as the advertising agency for the DDB. While the selection of the agency was accomplished by the DDB and the CRA meeting in joint session, all agency contracts and work programs were approved by the members of the DDB meeting in public session. The memorandum dated May 18, 1992 which is part of Exhibit 4 details the advertising agency I s work program developed in concert with the Economic Development Director. These achievements are particularly notable when one considers that no brochures, targeted mailing lists or anything of promotional/outreach value existed prior to the initiation of the work agenda. It lS important to note that the elected members of the DDB analyzed, debated and approved every program initiative that was brought before them by the agency and the Economic Development Director. Due in large measure to the success of the work program, downtown Clearwater began to be mentioned as part of the major tr iad of Tampa Bay; the area was no longer referred to as Tampa/St. Petersburg but as St.Petersburg, Clearwater and Tampa. Even ts in the down town garnered local, reg ional and na tional editorial recognition. The downtown newsletter Ventures, which is prepared by the agency with oversight by the Economic Development - 2 - l.., Director, has become an important instrument in helping to tell the downtown story not only to local people but to regional and national audiences as well. The public relations arm of the agency has generated significant editorial and news coverage in the media and has secured sponsorship for major downtown events. The second RFP prepared by the Economic Developmen t Director resulted in the selection of Hunter Interests, Inc. of Annapolis, Maryland as the consultant Eor the downtown Market Assessment. The initial contract for the Market Assessment was signed on August 13, 1990. The CRA specifically excluded any consideration of the development potential of the bayfront from the Assessment. The work was completed in December, 1990 and, on December 10th, Donald Hunter made a presentation to the eRA. A transcript of that meeting is included as Exhibit 5. After hearing the presentation, the CRA voted to authorize an amendment to the original contract to enable Hunter Interests, Inc. to proceed with conceptual design work and financial and fiscal impact analysis. The project as envisioned was to encompass some forty acres with the possibility of the inclusion of a municipal complex on the site. Throughout the various studies that comprise the body of Hunter's work, the assembly by the City/CRA of forty acres of land is assumed. In April, 1991, members of the CRA traveled to Phoenix, Arizona to look at Arizona Center and other nearby developments and to talk with local officials to gain an understanding of the nature of public/private ventures. Upon their return, the City Manager and the Economic Development Director reviewed several land acquisition scenarios and on June 6, 1991 the City Commission set aside $5.8 million to begin the land purchases required to successfully accomplish a mixed use project with a municipal complex at the East End site. See Exhibit 6, Agenda Item 133. Unfortunately, key parcels of property along Cleveland Street were pr iced beyond the reach of the Ci ty. The ongoing media coverage made land assembly a costly venture. Each parcel purchased was graphically illustrated in both newspapers driving up the prices of adjoining property. For various reasons, further land purchases were halted. Once staff realized that the assembled parcel would, at best, total 25 not 40 acres and would definitely not contain a municipal complex, the decision was made to structure an open-ended Request for Qualifications designed to gauge developer interest in the land without stipulating a specific use. The acquisition by the City of the former Maas Brothers department store in November, 1991 added yet another aspect to downtown redevelopment. The development community expressed keen interest in the bayfront site to the detriment of the East End parcel. Important elements of the downtown began to choose sides as to the future use of the Maas site in particular and the upland portion of the bayfront in general. It was in this environment that the RFQ for the East End project - 3 - was issued in April, 1992. Although there was considerable developer interest in the venture, the economic malaise that had infected the development/investment community made the results uncertain. City staff had concluded that it was time to ascertain the marketabllity of the land for project purposes. If attractive proposals were received, the City Commission could determine their level of interest in pursuing a public/private venture. .If there was no interest in proceeding, the Commission could either develop the land in joint venture with a private group, hold the property for a time maintaining a status quo or sell the assembled land. Related decisions as to the use of the bayfront upland for development purposes could be deferred pending public input either via referendum, polling or both. The Department of Economic Development has carried out its charge in conformance wi th the pol icy parameter s adopted by the Ci ty Commission/ CRA and the DDB. A case in point is the media and public relations awareness program that created a great deal of interest and/or curiosity among the development community concerning the East End project. Over eighty firms requested information about the endeavor and asked to be placed on the RFQ list. This was a real measure of success particularly when the condition of the national economy is considered. Media outreach was the primary means of alerting the development groups. Resources were not devoted to extensi ve travel and conference showcasing which is the typical method of creating interest in a project. However, the effectiveness of the outreach program cannot be faulted for the level of response to the RFQ. This was influenced by the city's desire to receive fair market value for land and the "no subsidy" stipulation. These limi tations were clearly stated in the solicitation document. The tantalizing prospect of the future availability of the former Maas site for commercial development, the reduced dimensions of the East End parcel and the removal of the City Hall complex from that scenario served to eliminate interest on the part of all but the most knowledgeable and committed parties. Both the CRA and the DDB should now decide what course or courses of action to pursue. The DDB has succeeded in its image building program. Through their efforts the business community learned about downtown Clearwater. The CRA capitalized on the DOBIs media outreach and solici ted developer in teres t in a down town project. An East End residential proposal is currently under consideration by the City Commission. The CRA and the DDB need to determine vJhat they want, what can realistically be achieved, the roles they are prepared to play in order to attain their goals and the resources they will commit to implement these goals. Once these goals are defined, they can be translated into an action program and carried out by the Department of Economic Development. - 4 - ~. , . I' ,'i , \ ",. ; " , " .' I ~ ,'J",: , I ,I " , , J f' ~ ~~~~~~~HU l..-'.~ 2 TIMES CT EDITORIAL l::XlIllll'l' 1 SUNDAY. JULY3. 1908 Downtown deveDopment . .."" -- . - . ~,.~ .- :.!1eed~ l~~_~~~~~~-PI focus ,. If Cleilnv<lter is to prosper : in the 19905. llrnl and aggres- , sive policy decisions need to be made now to locus on the rede. velopment of the downtown ar. , ea~ This must be done, not at the expense of other sectors of the city, but in recognition' of a fundamental reality: All cities , need a vibrant Ile.Ht, a down. . town core that is alive, whose taxable property contributes' substnntiaJly to the city's over. all tax base. In recent days, two crucial decisions have been made to begin to move Clearwater tp-, ward a comprehensive econom- ic development strategy. First, : City Manager Ron Rabun has : targeted the employment of an :- economic development director . as a top priority of his first . : budget year. He recognizes . Clearwater must focus its now disparate eHorts. Under ex.isting conditions. if a major finance busines~, {or example, wanted to locate its headquarters in Clearwater's downtown, with whom would its leaders have to deal? They would bounce around {rom the Chamber or COllUllerce to the Downtown Development Board to the Community Redevelop- ment Agency to an assistant city manage. to Ute manager, et cetera, ad nauseam. Faced with such a cir,cuitous path. business leaders might easily decide to go to a city that has its act, together. Rabun intends to create a city department, an OlCice of Economic Deveiopment, whose director would have the same standing within the administra. tion of any department head. But this person would be very visible, both at home and on the road, selling Clearwater to pro- spective enterprises. Il is a suc. cessful fonnula that has ceen used in many cities. Economic development is one of the stren gths seen. in Rabun's own bacltground. With the many financial burdens fac- ing Clearwater, economic de. velopment must occur or the entire city will be faced with higher property taxes and higher user fees. Surely the City Commission will not only approve but ap- plaud Rabun's plan Cor an eco- nomic development director. Secondly, the Downtown Development Board has decid- ed to dismiss its executive di- rector. The board's checkered history of Cussing more than progressing could be cO/l}ing to a close. The Clearwatei com- munity owes the board's execu- tive director, James Carpel1ter, a vote of thanks for the leader- ship he provided in forcing the board to make a timely decision about his job. The board has been so di- vided that even though it has long hinted it wanled..~~~~ Cmpenter, it has failed to face up to that decision. Carpenter correctly read the situa tion, said he doubted he could be eHective durinp, any further de. lay .lnd virtually asked for his position to be eliminated. ' Fortunately, the boar~ has not voted.to abolish itself totally but to phase itseU out. While the city doesn't need the board as another duplicative develop- ment al;H:I1C\'. it docs need the agency's 1.lllill laxing authori. ty. With so Illany pressing fi. nancial needs. the last thing the City Commission should do is throwaway a revenue source. Merging the board's activ;- ties with those of the conlin is- . sion-Ied Community Redevel- opm~nt Agency seems a more prudent course for the long . term. Those downtown die- hards who worry that the city ~\anager and cOlllmission will, ,&;:ore the downtown can do two things: First, they can be- lieve Rabun when he says eco- nomic development is a very high priority in his administra- tion. Second, they can take their concerns directly to the City Commission. If they pres- ent those views with as much yigor as they have argued them !n board meetings, downtown Interests will not be over- looked. But the city's overall eco- nomic development strateg,Y cannot have sever<ll generals running aU over the place. It must be channeled through the city manager's office and the new olli~e or economic develop- ment. This will bring more ac- coun tabili ty, confidence and pror,ress than any mere re- shuffling ot old and splintered efforts. '. R(J~,t Ilell~..r~on..,...,...,..,........... Editor AU,.."..' J7:,.J....J-.- r- "~I . -') .~- I M E M 0 RAN 0 U M CUPIES TU: EXHIBIT 2 COMMISSION PRESS Dale J UNO 7 18t,;:) CITY ClERK TO: FRO~1 : t'1ayor and City Commission; Downtown Development Board Mi chae 1 \-/r; ght, ~~ant Ci ty t1anage rfCommuni ty Servi c~s" ......... Comparative AnalyJJ~ ~Of the Downtown Development Board and the Community Redevelopment Agency SU8JECT: DATE: VIA: June 7, 1989 . ~ . Ron H. Rabun, City t1anager/fl.~ Both the Clearwater Downtown Development Board (qOB) and the Clearwater Community Redevelopment Agency (eRA) were created at different times with the overall goal of improving the economic vitality of the downtown area. The 008 and the CRA are separate legal entities, with distinct and different revenue raising ability and identical jurisdictions. (Please refer to the attached ma p. ) The Qllii was created by special act of the legislature in 1970, ratified at referendum by the district freeholders and subsequently tr'ansferred to the jurisdiction of a local ordinance in 1977. It is charged \'lith certain functions including: , To act as a catalyst to see that governmental services are performed ~ut without the authority to provide such services. " To assist the City in prepar'ing and maintaining an analysis of the economic conditions and changes occurring in the downtown area. I To assist the City in formulating and 'maintaining short and long range plans for imprqving the attractiveness and accessibility to the public downtown facilities, promoting the efficient use thereof, remedying the deterioration of downtown property values.and developing the downtown area in general. . To recommend to the City action for implementing any downtown development plans, including removal, razing, repair, renovation, recons t ruct ion 1I remade 1 i ng and imp rovement 0 f ex is t i ng s t ructu res, addition of new structures' and facilities, relocation of existing struc~ures and changes in roadway facilities. . To participate in the implementation and execution of downtown development plans. , To carry. out additional undertakings related to the downtown ar-ea as . might be assigned by the City Commission. . I . , Page -2- Comparative Analysis of ODB and CRA June 7 t 1989 The ODB consists of seven members elected for three year terms by freeholders within the di strict. Board members are not compensated. and must be either property owners, or have his or her principal place of business or employment in the downtown area. Operating revenues for the DDB are derived from the levy of up to one mill of property taxes in the district. That equates to between $135,000 to $145,OOO~ The total taxable value estimate of the district is $181 million that theoretically could generate some $180,000 in revenue. However, more than $38 million in values are classified as doubtful collections, resulting in actual maximum revenues of $135,000 to $145,000. The ~ was created by resolution in 1981 as a tax increment financing district. The City Commission ...,as designated as the governing board and granted certain powers by statute that included, but were not limited to: . To prepare and follow a redevelopment plan for the district. . . The ability to execute contracts. ,To undertake communi~y redevelopment activities including the acquisition of slum or blighted areas, demolition, construction of streets, parks and other improvements, dispose of property, carry out plans for voluntary or compulsive repair and rehabilitation of buildings, acquisition of real property and air rights by negotiated purchase or eminent domain, with approval by City Commission. o To borrow money, accept grants or other financial assistance. . To develop~ test, report methods ind techniques, and carry out demonstrations and other activities, for the prevention and the elimination of slums and urban blight and developing and demonstrating new and improved means of p,"oviding housing for families and persons of 1 0\"1 income. The eRA cannot use its funds to construct or expand administrative, fire or police buildings unless agreed to by each taxing authority; construct capital imp rovement s that a re not pa rt of the red eve 1 opment plan; or pay gene ra 1 operating expenses unrelated to the redevelopment plan. Funding for the eRA comes from the increased district property values that have occurred since the base year. Property owners in the district pay the sam e 0 v era 11 taxes as do 0 t her res i de n t s of the C i t Y , ex c 1 u din 9 a ny 00 B millage. The difference is, the money from property taxes the City and County general fund would normally receive from the downto\~n area are essentially frozen in time. Any revenues as a result of increases in the tax base are diverted into the CRA trust fund for its purposes. "',#,.-;;, ,:~, '.j .' ,.: . .' ~. ; ~'t>:..C~">f;~-',;;"''l:''''f,;,i:i: "I.;' ", . ,', Page -3- Comparative Analysis of OOB and eRA June 7. 1989 Tax revenues have increas~d incrementally since the base year and are expected to be approximately $770,000 in the upcoming fiscal year. By law, these funds must be expended within the fiscal year in which they are received or committed to a limited number of options including prepayment of debt. Funds cannot be held without commitment into the next fiscal year. Thi 5 bri ef compari 50n between the DDB and eRA is not intended to be all inclusive. The statute that outlines the duties of the eRA extends for some fourteen pages and addresses a number of issues. Copies of the statute as well as the OOB ordinance are attached for background information. ' In summary. the ~ has fairly broad governmental powers that allow it to take actions that are consistent with its adopted redevelopment plan. The language in the OOB ordinance speaks specifically to its acting "as a catalyst" and assisting--or recommending specific actions in implementing the downtown development plan. Please advise 1f there are any questions. MW/kd enclosures \'.', \!ll!\~'\"/~" J''", 'l.\-' -~,,_~,' I \:~ ,J,....,. J""'?\'\"" -f.f"'''' I.'~,: '".1" ,'~: \./', ,I~"';~;" M E M 0 RAN 0 U M COPIES TO: COMMISSION PRESS Dale JUN 0 7 198~ CITY CLERK C:X111 13 1'1' j TO: Nayor and City Conmission; Do\'mto\'1n Development Soard. r1iChae~ight. Assistant City 11anager/Coll1munity Services Recommendations Regarding the Relationship Between the Community Redevelopment Agency and the Downtown Development Board FROH: SUBJECT: DATE: VIA: June 7, 1989 Ron H. Rabun, Both the Communi ty Redeve 1 opme nt Agency (eRA) and" the Downtown Deve 1 opment Board (DDS) were created independently and at separate times with the express purpose of imp rov i ng the ove ra 11 economi c vi tal i ty of downt own C 1 ea r,.,ra te r. The ~ is a separate taxing authority with the ability to levy up to one mill of property taxes that could result in approximately $135,000 to $145,000 in revenues. After this fiscal year, it will have no fixed costs or debt payments. There is an ordinance ifl-place that will result in the "sunsetting" of the DDB in September unless action is taken by the City Commission to rescind the ordinance. The eRA is a tax increment financing district that will receive about $796,000 in revenue next year. Of the total, some $770,000 is from tax increment sources and the rest is derived from interest income, rental income and other limited" m"iscellaneous sources. It has several million dollars of debt service as a result of land acquisition and parking structures that require annual payments of ~ore than $320,000 plus other payments that include $36,000 to the parking fund and about $96,000 in total administrative costs. That leaves slightly more than $340,000 available for project development or land acquisition"next year. From this amount, the MAS ONE project is expected to consume some $300,000. While there are a number of specific problems that need to be addressed in the dO\mto\'In area, one obvious and basic need is the over'all improver.lent of the dovmtown's image. This ''Ias illustrated at length in the recent focus group research project conducted by the Department of t1arketing at the University of South Florida. Without addressing other much debated needs, in light of the increased emphasis on the downtown area and the recent employment of a full-time Economic Development Director, the following actions are recommended: . The DDS be extended for at least one year and an appropriate millage be certified to the County Tax Collector prior to the July deadline. ". Funds derived from the DDS millage be used exclusively for advertising, public relations and promotion of the downtown area. The exact amount of expenditures to be decided by the DDB with input from the eRA. '., ,., t"-:; . r' ,.....'~.r'f...-~".i1~.r'~:!~',.,...""'''-;..;~t.;F''';. ...:.::~,. " ' Page -2- Recommendations Regarding Relationship Between CRA and DOB June 7, 1989 . During the next year, the City Planning staff be instructed to prepare an updated Community Redevelopment Plan that addresses a number of issues, including but not limited to: expansion of the district; housing development and the overall philosophy of the district. Input in the plan would come from a number of areas including the DDS, the CRA, the Downtown Merchants Association, property owners and others. o The Economic Development Director and the City Budget Office to serve as staff to both the DDB and the CRA. . The eRA place its emphasis and expenditures on infrastructure needs, housing development, parking and land acquisition and disposal. . The CRA and DDB continue to work closely in implementing the Redevelopment Plan with at least quarterly joint meetings of the full boa rds. . . In June 1990, re-evaluate the relationship between the DDB and the CRA and the overall implementation of the plan. . . Please advise if there are any questions. "1H/ kd "jl . 1,1 I III ~~I . ., .. i ,.' t" EXHIBIT 4 PROPOSED WORK PROGRAM Economic Development/C.R.A. Clearwater, Florida I. Orientation - f1eet community sector Walking/Auto Tour - Photo inventory: air/water view(s) Reception(s} - Luncheon(s) II. Establish Operations Base - Office construction - Furniture acquisition - File review, organization and storage of dated materials - Budget review - Clerical/secretarial search - Review available background material(s} and studies - Prepare speeches, briefing and position papers III. Involvement with Pinellas Economic Development Council (PEDC) _ Cooperate and assist in the Moran, Stahl & Boyer Study which is designed to assess assets and liabilities of Pinellas County as they relate to business relocation and development of business recruitment study for the County. - Heet area economic development players - Contribute to work program of PEDC as requested IV. .Develop Working Relationship with Clearwater Chamber of Commerce - Coordinate City's activities with those of the Chamber - Plan receptions and social events for local/regional/national developers _ Coordinate media and brochure campaign ~ith Chamber _ Integrate downtown promotional materials with Chamber's Tourism Promotion Office whenever possible - Initiate a CEO to CEO program VJith the Chamber v. Affiliate with Local, Regional, State and National Organizations and Associations (CUED, leSC, IDA, Florida Downtown Development Association) _ Develop contacts with State of Florida and with Florida Power VI. Assist and Coordinate Activities of the Downtown Development Board _ Suggest internal/external downtown activities for the DCA - Serve as staff for the DDB VII. Prepare RFP for Selection of Advertising Agency _ Evaluate proposals and Shortlist Advertising Agency _ Select ad agency and develop "Image" material brochures/video/etc., to be used for promotion of downtown Clearwater VIII.. Update "lIalcyon" l1arketing Study - Analyze dOVlnto\'1n supply and dCr.1and market - office, housing, retail, entertainment, etc. - Identify problems areas such as parking, traffic, regulatory restrictions - Identi fy "Target" gruups - Develop suggested outreach methods - Dovetail do\'mtown market study with PEDC Study IX. Expand eRA and Enterprise Zone Expand boundaries of CRA in order to incorporate housing component Assess benefits inherent in Enterprise Zone participation and expand boundaries of the zone x. Convention-Conference Center (with Clearwater Chamber of Commerce) - Develop RFP to determine feasibility of a multi-use center - Evaluate proposals - Select consultant - r.1on; tor wo rk XI. Analyze (with Planning) Development Constraints that Impact Downtown Development - Prepare a guide booklet for use by developers XII. Initiate Contacts with Local Developers - Solicit comments, reactions and if possible, commitments from potential, 1 oca 1 pl ayers XIII.. Within Six to Eight Months Lnitiate "targeted" local, regional, state and national promotion campaign for Clearwater _ Promotional campaign \'Ji11 capitalize on downtown market strengths and be focussed on prospective relocation candidates designated in the Moran, Stahl Boyer Study and - if available - the updated Downtown t1arket Study. lJseful contacts can be expected from sources within organizations to which Department of Economic Development is affiliated: IDA, ICSC, CUEO* _ Precise blend of media outreach will be contingent upon recommendations from ad agency and nature of the target group(s) tlote: Available dollars will also impact effort t1 us t h a v e b roc h u res and 0 the r s e 11 i n 9 ma t e ria 1 s Must have results of the PEDC and the downtown market study,for for targeting and promotional purposes. *IDA - International Downtown Association ICSe International Council of Shopping Centers CUED - Council of Urban Economic Development NARRAflVE TO \lORK PROGRAM Economic Development/C.R.A. Clearwater, Florida Background Those \'/110 study downto\'tns agree that the following events of the past 35 years contributed to the decline of the downtown. 1. Rise of the automobile and decline of mass transit 2. Inabi 1 i ty of downto\'/n to accommodate the new i nfl uence of the automobile 3. Construction of new expressways and opening up of peripheral areas of the city 4. Development of suburban shopping centers and office parks and residential sprawl 5. Widespread deferred maintenance of downtown property within its scattered, unconcentrated o\'lnership - many times through trust departments charged only with conservation 6 . Th ere ale s tat e deb a c 1 e 0 f the ear 1 y tom i d 197 0 ' s It is generally recognized that malls and sl)Qpping centers tend to Ilout marketll dovmto\'lns. Dovmtovtns usually Ilave outdated and inaccurate supply and demand mar'ket data. Malls hilve financial resources to spend on marketing. ~1alls knO\'/ their"synergyll. This knOlAJledge of the mix of stores and merchandi se (supply side) and thei r information about consumer/shopper preference(s) (demand side) is typically first rate. "1alls are unified while downtowns are hampered by lack of consensus. Malls and shopping centers can and do control their access, design, environment, retail mix, security, hours of operation, promotions-advertising, parking in order to create a user- friendly shopping environment. Retail Large downtown retail outlets faced with inefficient multi-storied buildings, competition from outlying malls, lack of parking and a shift in demographics responded by joining the retail exodus to suburbia \.,hich began in the 1950's and accelerated during the 60.s, 70' sand 80's. Retail is vital to creating an exciting downtown. In order to attract retail operations to a downtown, a collective view of downtown problems must exist; property owners, retailers, public officials and corporate officials are principal players and a consensus on their part is essential for success. Unless a consensus is achieved among these players and an agreement on how to deal with the problel;Js is reached, it \.Ji11 be difficult to forcefully move forward. Since market conditions (supply and demand) and demographics create sharp differences in downtowns, one experience cannot necessarily be dupl icated ; n another dm'lntovln. Up-to-date market studies deal ing \.;ith sllpply I demand, and related dO\oJntown problems are necessary to any downtown revitalization effort. Such studies should deal with problems such as parking, traffic ci rculation and policy restrictions. The studies should not simply consist of den1C'9raphic research but should explain and interpret the findings and make recommendations for I OJ ~~l action consistent ''lith the supply and del~Jnd figures and the framl?v/Ork of public policy which prevails in a given downtown. Downto\'lns are "cornr71odities". If they M'en't as desirable as competitive areas, they ultir:1ately fail. The collapse of retail is a bad omen for downtOl'/ns; once retail goes, the image of the downtown as a whole suffers. Office development and housing have helped downtown retail, however, the supply-demand forces in concert with evermore sophisticated shoppers with greater personal options, complicate the retail equation. As a "generator", retail brings people and activity into a dovmtown. HO\'Iever, at the present time, this country is awash with retailers - many with great debt levels. Retailers \'/ith good quality and good prices will continue to do well and there is every indication that developers will continue to package retail clusters. Anchor retailers and lffresh speciality" retailers are important components of downto\'Jn retail. Unfortunately, many existing downtown retailers don't know their markets and fail to adequately service their customers. The;" attrition rate is quite high. Synergy is an important concept. 'appeal to the whole area than if the components. Interaction and marketplace. Stores with certain strengths give greater they were alone. The whole is greater than critical mass makes a better retail Given the cost involved in constructing a department store, anchor retail generally cannot afford to pay competitive rents. Most developers look for c h e a p 1 and t 0 sub sid i z e the de vel 0 p men t . R 0 use, S i m 0 n, Cad ill a c - F air view are good at this. Land assemblage is one prime inducement for attracting retail development. Housing and commercial activity act as magnets as do hotels ~nd convention centers. Entertainment facilities, well-planned public spaces, downtown schools and cultural facilities also serve as activity generators. Customi zed retail focused upon a specific "niche" market - festival marketplaces - can also be effective in creating a draw. For those large retail stores that seek to expand, a first consideration is usually focused upon a particular region or site. In evaluating a site, the store's planners determine if a market exists and if so, would sales meet costs and generate a profit? The planners look at demographics, customer sources - 'office, suburban customers, tourists, etc. - and where potential client sources would be drawn. Competition, usually within six to twelve to 24 mile radii is charted. Physical layout and parking is analyzed as is the merchandise mix and synergy ,...ith other "neighboring" stores. Retailers that are in a expansionist mode and have evaluated their market potential \"ith favorable results tllen seek a developer "lith retail track experi ence. It falls to the developer to secure funding and "do the deal". Once our market studies have been completed and land assemblage accomplished, ~'e need to contact retail developers directly and interest them in Ildoing a dO\^lnto\.tn" deal. Even \/ith the current retail upheaval, the large experienced developers \'/ill still be dvJilre of expansionist retail operations and if they feel our market is attractive enough, they \'/ill promote our venture. Contacts made through the International Conference of Shopping Centers and the International D.J\'lntOl'rn Association as ,well as "opportunistic" contacts should be a good starting point. ~:.~, . . . . \, , ..; ''-:' .~ .\- '" . ' Marketing the Downtown Centrality and accessibility of the downtown to d trade area still has an appeal for development. t\ ark e tin g i s a b u i 1 din 9 0 f val u ere 1 at; 0 n s hip. The pro d u c tis the d ow n t o\m · Since centrality and accessibility of the downtown to a trade area still has an appeal for developers. the downtown could be marketed as a multidimensional location; an area that accommodates or services the needs, preferences, purposes, economic imperatives of the "target" group. lie must fulfill the value needs of the target group and this cannot be done by selling negatives - i.e., "empty spacel10w rents" \'1111 be transparent selling devices. They s11O\'I the undesirability of the market not the desirability. In marketing the downtown we should target not only retail and new business but also existing business retention. The market study will define the parameters of feasibility for office construction, hotel and conference, restaurant and entertainment facilities and will gauge the impact of policy restrictions. The PEDe Study and Clearwater's market study of the downtown will help to target those companies to which dO\'1ntown Clearwater makes economic/value perception sense. Presence, market, labor, profit are prime value inducements. . 7/t3<J HATrO~ALE FOR THE IH:TE~TIOt\ OF A,'\ AD\'E1UISING ^GEI'4CY C.R.A. District Clearwater, FL Basc..d on previous marketing studies (some of \<"hich will require updating) and a soon-to-be initiated study carried out under the auspices of the Pincllas Economic Development Corpora tion, the Ci ty of Clearwater will be in the position of having a "defined" target market.. Essentially, we will know which types of firms already in Clearwater are potential expansion candidates and which types of firms from outside the area are likely to look favorably upon the City as a relocation site or as a potential site for new development. By capitalizing upon our strengths, the advertising agency will assist. us in positioning ourselves to achieve our objectives. The agency that we select will work with the C.R.A. and the D.D.B. in analyzing the City, its competition and the composition of the target groups. The agency will then develop a unified, coherent, creative strategy that will help define Clearwa ter 's distinc ti ve posi tion and stimulate awareness and consideration by the target groups. The ad campaign will present the City in a positive and favorable manner and be cost effective in using the many media alternatives--radio, television, newspaper, direct mail and outdoor billboards. The advertising effort.s will be integrated ~ith a vigorous, well-planned public relaLions/information program. This will enhance the overall marketing program. Promotional events like the Clean,'ater Jazz Holiday should be planned and implemented not only with the idea of generating maximum attendance but also with the view of attracting the attention of the target groups and reinforcing the positive image of the City. The Jazz Holiday is an established and recogniza ble event therefore it can represent Clean,ater in a af firma ti ve way. Since Clearwater's media will be vying for attention with other local, regional, . sta te and nationCll locales, it is cri tical that all ma terial be well-written with a sense of style and have outstanding graphic appearance. Any electronic media kits should be produced to the highest standards. sur-n"lARY Clearwater's advertising campairn must deftly convey our message. It must present us in a positive and favorable manner. It must subtly differentiate us from competing locales It must reach our audience in a way that is uniquely memorable. Finally, the campaign must be cos t effective in selecting the type of media to be used. , , ~.~ . ,', \..1 $. '" . . t if.. t ,~. . ' . Economic Dcve lopment orn cc ~larket Studies: Supply - Demand PEDe "Halcyon" Target Group Identification PIO Chamber of Commerce Ad Agency - - - - .- Outreach Activities to TaTget Groups Chamber of Commerce: Special ~vents/receptions CEO to CEO Program Coordinate Chamber Tourism and other trips to help promote dOh'nto\Yn outreach PIO: Positive news releases - editorial comment - guest articles - City innovations, etc. Ad Agency: Tailor image/media campaign for "target" groups Potential Problems: - limited media budget - impact of growth management policies on dO\oJntO\\'n - development restrictions - 60' hci.ght limitation on bayfront - traffic pat terns and parking in the dOl.,rnto\,'n - lack of retail synergy in the do\\'ntO\oJn - lack of technical support ~crviccs from Ci ty bureaucracy ('~ ..,- ;"",. /r-- ../ . ;/ " . EInKlUC DEVELOPMENT DlROCTOR - 10 JOB TASKS Jerry D. Sternstein, January 25, 1990 1. Establish a Department of Econanic Development a. Coordinate operations with other goverrunental entities and state agencies b. Establish role and identity within city government 2. Monitor operations of Department of Economic Developnent a. Paper ElaN b. Budget preparation 3. Establish relationships with CRA and DDS a. . Serve as staff to CRA and DDS be C<x>rdinate and integrate areas of responsibility; infrastructure - media . 4. Develop constructive relationships wit.h the Chamber of Caranerce, PEOC, Florida Power and other key~ommunity or.ganizations 5. Develop RFP's for Advertising Agency, Conference Center, Market Analysis a. Monitor Work progress b. Coordinate processes to conclusion 6. In concert wi th advert ising agency and DDS a. Develop media, ~ublic relations and advertising campaigns/concepts b. Coordinate ex~cution of media campaigns 7. Initiat.c 0<:?udloper contacts through leSC, IDA and other representative membership groups. 8. Coordinate Enterprise Zone activities 9 . Assemble land par~el for downtown marketing program. 10. Special Projects: a. Conceptualize and articulate projects and proposals relevant to downtown revitalization and follow them to conclusion: ie. Seminole Docks High & Dry, Down town Teen Club ~ ~.' . ,. '>', ::~:,,{ < ";~. .,' Jerry D. Sternstein Future Job Goals Economic Development July, 1990 1. Work closely wi th Hun ter In teres ts, Inc. as Market Assessment; translate the results of solicitation packages. they conduct the Downtown the study into developer 2. Refine the Downtown Development Board's media campaign to more specifically target the developers that the Narket Assessment identifies as potential players in the downtown revitalization effort. 3. Hake marketing trips to prospective developers in order to stimulate interest in the qowntown area. I 4. Finalize the assembly of land in the downtown to be used for future development projects. . S. Expand the boundaries of the eRA to encompass downtown areas earmarked " for development. \, 6. Make the Enterprise Zone:more attractive by increasi~g local incentives. Other Florida corrununities have. reduced ocupational license and community develop~ent fees for zoning, site plan review, plan. development in order to create greater interest in their enterprise zones. ". ". to. --..,.-_----' , - CITY OF CLEARWATER Inte.rdeparbnent Correspondence Sheet m: l1ichael Wright, Assistant Ci ty Manager/Comnuni ty Services Jerry D. Sternstein, Economic Development Director ~ FROM: COPIES: File SUBJECT : The Year In Review DATE: t1arch 7, 1990 As they say, "time flies when you are having fun". We are fast approaching my one year anniversary wi~ the City; a landnark occurrence such as ~is deserves comment. When I interviewed with you and Ron Rabun, I stressed the incremental nature of downtown revitalization. I felt that it was important to proceed carefully and thoughtfully in defining the current state of Clearwater's downtown and in articulating and irrrluencing the role the City would play in the process as it unfolded. SincG I was selected for the position, it is reasonable to conclude that my "building block" strategy touched a responsive cord. Indeed, in a community where downtown revitalization was talked about for such a ~ong period but not acted upon, it is critical for the Commission/eRA to know'- what they want, what they need, whe ther these wants and needs are reasonable and attainable and the costs they carry. My arrival coincided with some well-planned groundwork initiated by you and Mr. Rabun. The MAS 1 office project had reached the contract stage so my efforts were directed toward removing any impediments to contractual agreement. It was a time-consuming activity but given the' orientation to the City bureaucracy that it 'afforded, it was well-worth the t line. The previous staff interaction with the DDS also gave me an ent.ree into a new scenario in which the DDB would concentrate its fiscal (lfforts on an advertising campaign while the CRA would do "sticks and bricks". I then settled into the staff role to both the CM and the DDS. While the- balancing of interests between the two bodies had the potential of becoming incendiary, diplomacy and conciliation generally avoided any deep schisms. I redid the RFP foe retention of an advertising agency and evaluated and made recOIlmendations concerning selection of a finalist. After the DDB chose Pearson, Thomas, LKW, I worked on every aspect of the ad campaign from brochure design and narrative to the acquisition and culling of mailing lists. I . , I , / / .e t'.~ . Page 2. - Memo to Michael Hright - The Year In Revie..., - 3/6/90 I also structured the RFP Ear the conference-convention center study and, wi th Ebe t1act1ider of the Chamber, played a key role in the evaluation and selection process. On November 6, 1989, I Eor:mally submitted my work program to the CRA. A key component of that program was a Harket Assessment of the downtown. I have always advocated professionally prepared market studies - without hype and exaggeration - used to realistically define the downtown market. I structured the RFP and worked to sell the concept to you, Ron Rabun, the CRA, the Chamber of Comnerce and the DDS. The unanimous approval of the RFP by the eM las t week is proof of the success of my efforts . I have developed a good working relationship with Ms. MacNider and Mr. Korzeniowski of the Chamber of Conmet"ce. I feel that there is an openness and supportiveness which has heretofore not characterized City- Chamber interactions. Other econanic.develop-nent tools have been refined and are in-place. Considerable efforts were devoted to winning approval of our enterprise zone expansion from the state. An analysis of incentives offered by other Florida cities is neariDg completion. B~sed upon this distillation of information, recorrmendation for new, local incentives to make our enterprise zone more attractive will be made. Even though my prlinary emphasis has been and will co~tinue to be directed toward the downtown, r recognize that other" developments outside the linmediate area frequently have a significant Lmpact. Consequently, I have had some involvement in the proposed Seminole docks High and Dry facility and in reviewing the fipancial feasibility of a wet slip marina proposed foe development on the beach. I believe that my first yeae has been extremely productive. The pieces necessary for revitalization will shortly be in. place. The next several months will see the initiation and completion .of the downtown market assessment, the conference-convention center study and the publication of our brochures and pamphlets which will be used to help promote the downtown. While it is not constructive to speculate upon the conclusions that. will emanate fromt.he mat"ket assessment, we must use the intervening time to ascertain what role or canbination of roles the Commission/eRA will be comfortable playing. The extent to which this body will assume an activist, pro-development role will in lar.ge measure influence the parameters and effectiveness. of the revitalization effort. JDS/sh TilE YEAR IN REVIEW ECONOHIC DEVELOPNENT June, 1991 As we approach the anniversary of my second year with the City, it seems appropriate to revisit the hits and misses of the period. Happily, no one occurrence can be classified as a total miss. The Conference/Convention Center study came to'an abrupt end. The set of circumstances which prompted its stillbirth are well kno\<1n to both of us and consequently do not merit elaboration. However, since I spent considerable time and effort in prepara tion of the RFP and in nur turing the endeavor and since I remain convinced that the product would have been helpful to the downtown revitalization process, I lament its premature demise. Div~rgent interests and different clientele groups were responsible for the mini-schism with the Chamber of Commerce. While staff relations are superb, there is a coolness at the executive level. Hy pursuit of the Clearwater Beach-Universal Studio initiative and tIle follow-up Film Commission enterprise created a degree of mistrust. This suspicion was reinforced by the collapse of the Conference/Convention Center Study. I have been working to rebuild executive to executive relations but the task is easier said than done. For example, I am unencumbered with bureaucratic structure. I can and do move expeditiously to formulate and implement economic development activities. The Chamber cannot execute without elaborate communication with and approval from their committee structure. Therein lies the problem. Conunittees typically do not produce timely decisions and commi ttee decision-making is often not of the highest order. Remember the old saw, "a camel is a horse designed by a committee." On other levels, the year to date has been quite successful and productive. The Hunter Market Assessment with conceptuals and financials is almost complete. I spent a significant amount of time working with Hunter and reviewing the work produced by the firm. I have written a number of outlines and perspectives on facets of the Report and incorporated the results into developer packets. Working with Pearson-Thomas, I edited the llunter product into easily understandable information formats. The DDB's Newsletter, Venturest was published in part to serve as a vehicle for the dissemination of this information to the leadership of neighborhood associations and to the development community. (2) Using local, regional and national sources, 0 hIghly refined compu tel' list was compiled. This selective compilation facilitates the process of targeting contacts within the development community. I am experimenting with an unorthodox method of reaching viable developers. Given the current condition of the national economy and its devastating effect on developers, I decided to forgo the expense of trade shows and to instead stimula te developer interest through archi tec tural and construction firms. To this end, I distributed packets to selected firms. The information includes data from Hunter I s work and a recently completed image video. The results have been encouraging. Once the conceptuals and financials are received from Hunter, we will use ODB resources to produce a Downtown Prospectus. This booklet, along with the video and other promotional materials, will be used to solicit the "triad" of construction, architecural and developer firms. If we generate a level of sustained in teres t, we can reasonably anticipa te a number of godd responses to our forthcoming RFP. I am presently compiling information on recent RFP's from other conununities. By building on their experiences we can avoid repeating their mistakes. At this writing, we are poised for project initiation. If the eRA accepts the recommendations soon to be imparted by Hunter and directs us to go fo"'ward, we can intensify our "familiarization" endeavor and work toward a fall RFP. In anticipation of eRA acceptance, I have devised a land acquisition strategy. We have thus far implemented this in incremental steps. Once the land need is clearly defined, we can become more aggressive in our acquisition. ..~~ Jerry D. St erllsteill Future Job Goals Economic Development Deparhllellt Decculber 30, 1991 The following job goals encompass activities projected to transpire over the next six to twelve months. Since the Department of Economic Development must be flexible in order to react to unanticipated opportunities and to frame innovative initiatives and in view of the limited staff resources, certain activities may be reprioritized. For example, the activities for 1991 make no mention of the negotiations and related work that led to the City's acquisition of the downtown Maas Brothers property. When these goals were written, the immediacy of the store's closing was not anticipated. Staff involvement in the successful negotiations for this important downtown property began in April, 1991 and were concluded in November, 1991. This seven (7) month involvement did not end with the purchase of the property but continued with security and maintenance arrangements. Staff currently serves as a resource to the task force appointed by the City Commission/eRA to make recommendations for the future use of the property. Some work items are not listed since to do so might jeopardize their success. An example of this would be the Kravas negotiations ~hich have been ongoing for some six (6) months and recently resulted in a tentative purchase agreement. Still other activities are added to the work agenda as circumstances merit. The promotional efforts mentioned as general objectives in the 1991 agenda - to draw Clearwater residents to the downtown and to create image and personali ty for downtown Clearwater - were given substance through the Door Prize contest and the mini-park concerts in Station Square Park. The organizational and marketing outline for the "Downtown Comes Alive" effort (Attachment 1) was developed with the Pearson-Thomas organization in mid-November to serve as a guide for the volunteer groups. The elements of the relocation and retention program are still in the formulative stages. The parameters of the effort will be influenced in large part by the commitment of the existing retailers and downtown property owners. Work has already commenced on a compendium of available space for sale or rent in the downtown. This is based upon a similar document developed and used in Evansville, Indiana (Attachment 2). The format and packaging will be done by the DDB through Pearson-Thomas but the information and data is to be provided by the local real tor community. The overall objective for the relocation-retention program is to strengthen the existing downtown retail base under the assumption that the best attraction for retailers (pending the infusion of new retailers through a catalyst project) is other strong retailers. Given the fractious nature of the small, independent retailer, this effort is likely to be difficult to achieve (Attachment 3). The "World in Clec'lrwater" concept being promoted by 1. Goodman may lend some credence to the :?:;.,:,:;.~:~,'.~~:,'~~;,i:<::.~ ;,,'~'g'.:,:\:'i'\,;t<:~,:)':~;;<re',;<':: ;:"t"?';,':~:~'~:~ >?};,,;;:":;~';::/~:\ ,':'.~~r~:,U".::'{.. ::r/~::;'>,:::~:'; . '. , .. . ./1 << effort by stimulating a cooperative environment among downtown property owners.. 1 The organizational and informational aspects of retail retention-relocation could be augmented by a rent abatement program but this would require agreement and participation on the part of the downtown property owners. The program could be structured to provide X months of free or reduced rents. Ancillary efforts like workshops and low cost loans or facade improvements would require the consent and involvement of the DDB, CRA and downtown property owners. e Prospecting for retail business will be done through target lists developed with the assistance of the Arnold organization, Florida Power and the PEDC. The Market Assessment and the new downtown plan will be used to identify desirable tenant groups or categories of users. Once this is done, mailings based upon the computer generated lists will commence. A media campaign and information packet for "recruitment" distinct from the East End effort will be developed. Some elements of our East End package can be used but the information must be scaled to appeal to the smaller retailer/businessperson. The trade area will be defined for the potential downtown businessperson as well as advantages that are unique to the area, ie traffic counts, typical rental costs, incentive programs and other useful information. Press exposure for new businesses will be provided by Pearson-Thomas. Relocation and retention activities will call for intensive involvement and coordination with the Greater Clearwater Chamber of Commerce, Florida Power and PEDC. .. ~ CITY OF CLEARWATER Interdcpm11nent Correspondence TO: Community Redevelopment Agency Downtown Development Board FROM: Jerry D. Sternstein, Economic Development Director ~ COPIES: Michael J. Wright, City Manager SUBJECT: Hyett Palma Publications on Downtown Revitalization Practices DATE: February 26, 1992 Hyett Palma Publications is a subsidiary of Hyett Palma, Inc. The publishing branch of this multi-faceted firm offers a collection of texts for local professionals and community leaders who are involved in business district revik1lization efforts. Their publications are widely read and well regarded among practitioners of downtown revitalization. The work of the firm has been f~'ltured in numerous publications including The New York Times, Nation's Cities Weekly. and The HOllsing and Development Reporter. In late January, the City Manager forwarded me the firm's publication list and I decided to order several of the new books to determine whether our activities of the past several years coincided with Hyett Palma's overview of downtown redevelopment. Essentially, this review is limited to two publications, ~uccessflll Retail - Recruitment Strategies and The Sta~e of the Art - Economic Initiatives in Downtowns. As you will note from my overview and comments, our program is well within the generally recognized parameters of current downtown thought and practices and in some instances falls well into the innovative realm. Successful Ret<\il - Recruitment Strategies is focused on strategies used by hundreds of downtowns of all sizes throughout the nation. I will comment on several salient points contained in this text. The topic "Setting the Stage for Recruitment", stresses the need to understand the local retail market. "A clear understanding of the market served by the commercial center can only be gained through an analysis of the market area and customer base. II Through the completion of a market analysis, the leadership of the commercial center should determine: - the realistic economic potentials of the commercial center and determine an appropriate market orientation for the center o - the expected customer shopping habits and realistic spending potential of the customer base 1 ';0 - the strengths and weaknesses of existing businesses within the commercial cen ter - the types of businesses which may realistically be expected to operate within the commercial center. These items were dealt with in the Downtown Market Assessment (November 1990) which was commissioned by the Community Redevelopment Agency and carried out by Hunter Interests Inc., of Annapolis, Maryland. There are four topics under the section "Presenting a Quality Business Environment". The commercial center must provide: - an aesthetically pleasing commercial environment - a safe and secure commercial center - an adequate and conveniently located supply of parking and/or attractive and affordable transportation services - a high standard of business operational practices which project a quality, unified and consi~t.ent business image for the center, with maximum emphasis placed on customer service. Over the past 2 1/2 years, we have addressed several of these items. The downtown streetscape program and the construction of Station Square Park was an effort to improve the aesthetics of the downtown core. The city assigned a policeman to patrol the downtown in order to lend a greater sense of security to the area. While the adequacy or inadequacy of parking is always a subject for debate, the city constructed two parking garages which accommodate 679 parking spaces. _. These spaces, along with metered parking provide a sizable inventory of available parking spaces. The Market Assessment attempted to interest the downtown business people in a "Centralized Retail Management" approach but t.his found only mixed support among this group. Under the general topic of "Business Recruitment", the Downtown Development Board and the Community Redevelopment Agency have worked to promote many of the following items. - increasing market knowledge - providing personalized technical assistance - sponsoring business seminars - improving the business districC s image via improved public relations 2 ~ - improving maintenance of public areas and private property - improving business standards - expanding and testing merchandise lines -clustering businesses to increase sales The Market Assessment, the various demographic information from CACI and C-Map Services of Tampa were focused on increasing the lmowledge of the retail market. Pearson, Thomas's activities have been directed toward improving the business district's image and the idea of "clustering businesses" which involves grouping together a certain mix of businesses in ways that increase sales, customers and markets is typified by the "The World in Clearwater II proposal and the city's efforts to market a 25-acre parcel of land for a retail and/or entertainment development. We have sought to maintain contacts in the local real estate community with the objective of producing a listing of available downtown properties which would be distributed through our specialized data base. This activity has proved to be more difficult to initiate than we initially thought but we are still actively pursuing the idea. Under "Marketing the Commercial Center", the report states that the marketing effort may include: ~ j, f(. ~ , ~. ~:. - the preparation and placement of articles that relay the successes of the commercial center's enhancement efforts - the preparation and placement of articles that relay the cultural, historic and/or lifestyle ameni ties of the area - the preparation and placement of articles that tell of unique businesses that open and significant real estate development activi~ies that occur in the commercial cen ter - the preparation and placement of copy in retail trade periodicals and national news publications The marketing efforts outlined above are all carried out under the aegis of the Downtown Development Board through Pearson, Thomas/LK\V. While it is extremely difficult to quantify the results of the marketing activities, the efforts are consistent with those recommended by Hyett Palma. The State of the Art - Economic Initiatives in Downtowns is a 1990 survey and analysis of over two hundred cities from across the country. This survey deals with some 27 economic initiatives 3 ';' and the success of these initiatives. A review of this text again points out that Clearwater's program is very much in the forefront of downtown revitalization. One initiative calls for the development of an annual work program. We generally submit not one but two work programs. One is focused on the Community Redevelopment Agency's activities and one or. the Downtown Development Board's activities. Another initiative, increasing market knowledge is one which we have constantly endeavored to accomplish. Our demographic surveys and our Market Assessment are evidence of our commitment to the importance of good data collection and dissemination. Improving downtown's image by working with the media is accomplished through the Downtown Development Board and their work with Pearson, Thornas/LKW. The effort to r~ruit additional retail business is one initiative that was implicit throughout the early image building work from the Downtown Development Board and is carried forward in the current recruitment program being developed through the DDB. Business clustering is reflected by liThe World in Clearwater" proposal and will also be an offshoot of the marketing of the land in the Cleveland Street, Missouri Avenue and Court Street vicinity. Clustering is more difficult in the core because of the fragmented ownership of the businesses and the nature of the businesses. Clustering would be advanced by a centralized retail management approach but it is hoped that the success of liThe World in ClealWater" which has as a key element "Centralized Retail Management", will help popularize the concept. Cleveland Street, Court Street and Missouri A venue clustering will be far easier to accomplish since new retail/entertainment projects are clustered at inception by their developers. The comprehensive market analysis initiative which defines primary and secondary trade areas, assesses competing commercial facilities, determines market position and details the most likely new retail categories that can be attracted to the downtown has already been accomplished through our Market Assessment. This overview should be repeated in 1995. Byett Palma' recommends that the analysis be completed by an economic development professional with extensive experience and a successful track record. \Ve believe that we accomplished this through our public selection (RFP) process. The report stresses that image building through the media is a critical initiative and recommends that the campaign should he "cornprehensi ve, ongoing and developed by marketing professionals". We believe that our effort throug}l the DDB and Pearson, Thomas more than meets this standard. Another initiative calls for the production of business district literature which includes recruitment brochures and associated print pieces. This has been done through the DDB contract with Pearson, Thomas. The initiative that calls for the creation of an economic theme within the business district is recommended for downtowns with tourist potential. "The World in Clearwater" satisfies this initiative. 4 . .. The overall tabulation of initiatives is found on Table 1 of the report. I have indicated through checks those initiatives that Clearwater's program has used or is using. Donavan D. Rypkema, a consultant with the Real Estate Services Group in Washington, D. C., has produced a document called Downtowns in the 1990's. It is interesting to note that the author gives high marks to those communities that are not afraid of experimentation and possible failure. He states that: "experimentation will be necessary in order to survive. There are no pat sglutions to downtown problems and what works in one downtown might not necessarily be transferable to another. It is only to the extent that we continue to experiment that we continue to survive. Failure can no longer be something to be avoided. It must be tolerated and even rewarded. Because of the pace of change, the need to innovate and the necessity for experimentation, the price of success win be occasional failure. Communities, downtown organizations and local revitalization professionals whose track records do not indicate failures are not taking enough risk. To be so conservative as to not take some failure producing risks, will mean that conservative downtowns will be left in the dust by more innovative competitors." Clearwater's downtown revitalization effort will cont.inue to be oriented toward the conceptualization and promotion of innovative strategies crafted to take advantage of the uniqueness of the area. We have sought to foster a variety of projects with the view that several well-conceived and well-focussed catalyst activities can only help not harm the downtown. "The World in Clearwater" and the marketing for redevelopment purposes of city owned land in the eastern corridor of the downtown are two tangible offshoots of this effort. If successful, these projects will attract a diverse mix of retailers and they will, in turn, bring an expanded cuslomer base. The renewed retail activity should stimulate olher development in the downtown which will enhance the property base, provide employment opportunities and infuse new vitality to the area. 5 . q I . . II 11 q q . !i ~ BYETT-PALMA, INC. Percentage of All 210 Cities Surveyed Using Each Economic Initiative In 1990 In.lli.a1lves In UseJ3y A Majority. .o.l Su ry~ y Ear:ti ci p ants.:. Work with Local Media Set Annual Agenda of Actions Provide Personal Technical As'slstance . Collect Basic Market Research Have a Program to Enhance Public Spaces Have a Program for Business Networking Produce Print Pieces to Promote Downtown Have a Program to Enhance Private Property Conduct Seminars for Businesses Completed a Parking Plan! Assessment . 84 % .~ 790/0 v . 7,2<1/0 :/ 71 % v 690/0 6Z'/0~ 6Z'k 600/0 . 55% / 550/0 V' 1.n1.lia.tiv~s in US~ by Less than 50% buL More tb an 250/0 QlS u rYe y e.aJ:lliLlQ.a1l1s.:. Aggressively Recruit Businesses Identified Economic Themes Operate a Formal Marketing Campaign Have Separate Businesses Sharing Space Completed a Comprehensive Market Analysis Implement Real Estate Demonstration Projects Have a Program to Address Safely/Security Identify Uses for Vacant Upper Stories or Adaptive Use of Buildings Aggressively Recruit Targeted Customers Form Local Partnerships to Dev~lop BusiI'J8SSeS Enhance Business Standards 470/0..( 390/0~ 390/0 y 360/0 330/0 v 330/0 ./ 3~/o 3~/o 290/0 280/0 260/0 " Initiatives in Use..byJ..,ess than 250/0 Q.t Survey e.anicjpa(l~ Assist Businesses to Test, Expand Merchandise Annually Update Pedestrian, Resident and Business Surveys Developed a Clustering Plan . . Have a Program to Coordinate Business Hours Conduct Focus Groups Conduct Multi-language Marketing Efforts 230/0 230/0 21 % ( 190/0 130/0 40/0 Copyright (C) .. Hyatt Palma PubJjcall~s .. 1991 15 , , . .. .~ ... . . '0'6 CITY OF CLEARWATER Interdepartment Correspondence TO: Michael J. Wright, City Manager FROM: Jerry D. Sternstein, Economic Development Director rJI'Y<. (f :':" COPIES: File SUBJECT: Downtown Revitalization - An Update DATE: March 5, 1992 Several years ago, James Rouse, developer of Boston's Faneui! Hall, Baltimore's Harborplace and other landmark downtown projects, made some cogent observations regarding the status of the American city. Rouse said that the city government needs to see itself as the developer of the center of the city. It should be willing to step in and acquire land, take the necessary steps to bring in developers, and resourcefully and entrepreneurially bring new life to the city. These are not easy tasks. They require commitment on the part of local elected officials and an llnderstan~ing of the interaction of the public and private sectors. Public officials should be clear-eyed and realistic when they appraise their downtowns. They need to understand the costs and benefits associated with downtown revitalization and the penalties extracted in lost taxes and economic growth for doing nothing and permitting urban deterioration to continue. Essentially, these officials should know what they want, what can realistically be achieved, the role they are prepared to play in order to attain their goals and the resources available to successfully carry out the program. An appreciation for the unique problems and advantages that downtowns possess is also helpful. Older downtowns typically have high land prices, multi ownership of property or a shortage of readily developable land; typically, there are parking/traffic problems and the existing retail market has been weakened by the migration of stores to nearby malls and shopping centers. Add to this, the "nine to five" syndrome where office workers desert the downtown after work and there is little or no residential base left in the area to provide an evening population. On the positive side, central location and . accessibility are advantages which characterize many center cities. In addition, financial, government and legal institutions as well as corporate offices are often headquartered in downtown, making the area a frequent destination place. City officials should attempt to look at potential projects from a developer's perspective. A I '\,' ..',~ , "'I. T','~ ,~, ';, , . ' ,/,\\", Y'._, '," . ,,;'. ',' ',' / ..;/\ 'I I,.",' ",',:", ,~' '.)"" , .'11', " .," ~"":}" developer will want some assurance that the city government is serious about development, is aware of the problems facing a project, will strive to "make" the deal work and is committed for the long term through some form of participation. If a city fails to cultivate productive public-private partnerships, the burden of financing the redevelopment will fall squarely on the taxpayer! It is not particularly helpful to engage in a "chicken-egg" debate as to whether office, residential or entertainment-retail development should occur first or if development should emanate in the core of downtown or at the periphery. Each development feeds off the other. Office developments bring a segment of people to the center city just as do hotels and other activities. Retail generally brings a broader group of people and activity to the area; consequently, it is vital to generating excitement and traffic. Downtowns are "commodities". If they aren't as desirable as outlying, competitive shopping areas, they ultimately fail. The collapse of retail is a bad omen for any downtown; once retail vanishes, the image of downtown as a whole suffers. Given the retail market segmentation, competition and the costs associated with downtown development, creating retail opportunities in the center city is no small job. Retailers who are in an expansionist mode first consider the local and regional markets with emphasis on demographics, customer sources, and existing competition. If their market overview is favorable, most retailers look for a developer with extensive retail experience. Since our Downtown Market Assessment was favorable, we have, over the past year, used it as a marketing tool to tout downtown Clearwater's superb demographics and retail-entertainment opportunities to diverse developer groups. In recent years, specialty retail developments throughout the nation have proven successful in downtown, settings. In some cases, these shopping complexes have large anchor stores; other developments rely upon a mix of small stores which draw strength from each other and, as a whole, act as destination places for people who want unique retail/entertainment opportunities. There has been and will continue to be a significant body of studies and related information on downtown revitalization. These studies are interesting but it is important to have access to current information on the subject. Because of the rapidly changing events in this field, seven year old information is frequently regarded as historical. For example, both Shopping Centers Today and Southeast Real Estate News have, since 1989, printed numerous articles on downtown programs in Louisville, Cleveland, Denver, Lexington, Santa Monica, Kansas City and Memphis. It is interesting to note that these articles all chronicle the catalyst aspect of the development and the specific project's success in attracting investor interest and in bringing other businesses to the area. Management Horizons, a division of Price Waterhouse, recently published a monograph, Retailing 2000. This special report looked at major changes expected in retailing by the year 2000. Generally speaking, the report concluded that retail emphasis would change from free standing shopping centers to multi use facilities with specialty retail. We have not neglected the traditional methods of attracting new business, whether it be retail, office or entertainment to our downtown. We are, however, careful not to spend public monies 2 :; J' .:;,:\':}; '. ,:7"',,0. ',.:?,',':::.:: ...... ,)( .~;:. .:;.;:.: .:,'-,/. .,\ ,.;',' ....:." '~'.> ;.,) ... ,;:.;: \.' ;>: \: {;;f':::, '.\' t; \ :,..' ;'t,: /. ~ I. _, "", .\, '. .' 'i" i....-'..\, >.1-. /("""=..\,', ,.\. )-~. " \ ~,'. ,,', ','",,'. ,\.' ,i ,.'. ~ . ,. " ''', ,~..' . .-' ..',' ':......" duplicating efforts that are already being carried out by the private sector. These private incentives, partially dictated by prevailing economic conditions, include rental rebates and other office discounts. Hyatt-Palma publications recently issued two new texts, SuccessfUl Retail Recruitment Strategies and Economic Incentives in Downtowns. Many of the incentives called for and termed "state of the art" are already being used in Clearwater's program. Downtowns are and will continue to be ever-changing. These areas will reflect the demand for goods and services generated by those who frequent the area or who are attracted by destination shops or by nearby residential, entertainment or other amenities unique to the area. Our downtown RFQ approaches the development community on unambiguous terms. We promise no subsidy and do not champion any preconceived development concept. Our most important asset is 25 acres (+/-) of assembled, city-owned land located in a high traffic area 2 1/2 miles from a major resort beach. Our Market Assessment and associated demographic studies give credence to the term "superb demographics". We ask the development community to submit their qualifications and backgrounds. From those who qualify, we will solicit development concepts for a market-driven project. Under no circumstances will we consider speculative, ill defined proposals. Some forty developers have already expressed interest in responding to the RFQ. While our own Market Assessment suggested that upscale retail might be economically feasible on the site, other developers have tentatively proposed uses that range from apartment-condos to tourist-driven projects similar to Orlando's Church Street Station. Downtowns cannot be recast into a 1940's or 1950's mode. The exodus of people to suburbia and the development of the strip shopping and mall centers brought about profound changes in life-styles and shopping patterns that drastically altered the fabric of the downtown. With these changes new challenges have emerged. How we deal with the challenges, our vision and commitment will determine the future of our downtown. 3 CITY OF CLEARWATER Interdepartmental Correspondence TO: Downtown Development Board Members FROM: Jerry D. Sternstein, Economic Development Director COPIES: Michael J. Wright, City Manager Jean Sherry, Pearson, Thomas/LKW SUBJECT: Mid Year Review DATE: May 18, 1992 There seems to be some questions regarding the accomplishments of Pearson, Thomas/LKW and some misconceptions about the nature and purpose of t~e work done by the agency for the DDB. This agency was selected in mid 1989, after a comprehensive and impartial Request for Proposal which took several months to complete. The selection was made by the CRA and the DDB meeting in joint session. The framework for the selection process and the Proposal Format which preceded it was largely based upon a Uni vers i ty of South Florida, study. Among other findings, the study suggested that Clearwater suffered from a lack of image; when st. Petersburg and Tampa were mentioned, Clearwater was not. Most people knew that Clearwater had a beach but ,beyond that, nothing! Thus, the study concluded that "the lack of a distinct and separate image for downtown Clearwater" was a major problem that had to be overcome. When Pearson, Thomas began their activities no comprehensive strategies were in place and no promotional materials were available. The publications left from the DDB were sadly dated and unsuitable for dissemination. Working with the Ci~y's Department of Economic Development, materials were developed and media and public relations strategies were formulated and submitted to the DDB for approval. As a matter of course, every program initiative was discussed and approved by the DDB. Since the millage used to support the campaign came from the entire 255 acres of the downtown district, activities were structured so as to benefit businesses within the total geographic area. Staff also emphasized that there was no "quick fix" that ,.,ould br ing instant results to the downtown and some results, because of their tentative nature, could not be publicly discussed. The program designed by the agency and City staff has sy?tematically evolved into a well-refined effort that has garnered ,.. . If' I J \ , ' 1" ,1 I,' \ \ ,,' ..' I ,\ l' \ I' I, I I . ;,. \ t, ' '" '., I' , , ' , I downtown Clearwater considerable editorial notice in local, regional and national publications. The days when Clearwater was the "unmentioned" third city in the Tampa Bay area are over. It is easy--perhaps too easy-- to forget just how far we've come in a relatively short time period. The list ",:hich follows briefly chronicles the major activities undertaken by the agency. During year one-the start up program-the agency: 1) developed a logo and theme for downtown Clearwater; 2) created and printed the first developer promotional brochure which outlined downtown Clearwater highlights; 3) created a companion mini-brochure to compliment the developer packet; 4) researched and printed statistical inserts for the promotional brochures; 5) created and placed the first image ads which positioned downtown Clearwater; 6) commissioned photographs for use in promotional materials, one of which became the signature photo; 7) focused advertising and editorial support for the 75th anniversary through features in both the st. Petersburg Times and the Tampa Tribune; B) worked with the Maddux Report magazine to promote the publication of an eight page focus piece on downtown Clearwater. During year two-marketing to developers and retailers-the agency: 1) prepared marketing plan strategies; 2) prepared an extensive mailing list that is still being used for direct mail; 3) researched and developed the Film Commission initiative; 4) prepared a written plan of action and directed the Film Commission off ice start up, structure, procedures, promotional budget and production of the promotional materials; 5) reviewed and analyzed the Hunter Market Assessment; 6) compiled demographic data from census map research -data is raw and has to be interpreted in terms of marketing and communications; 7) researched and prepared recommendations for the Jazz Holiday budget allocation; B) initiated the downtown regional report in the September 1991 issue of the Maddux Report; 9) initiated meetings between city officials and commercial developers; 10) developed a top u.s. developers mailing list, this is a custom list which involved a great deal of research; 2 I"~ . . :: ...... ....~... '.'~,:) '...~:~:~':u"" d,:{::'~?1: ',',::i" "'<, "~::~"D<;:,:~::~::':<:', entire downtown district. -the availability, amount, and sources of matching funds to help defray the cost of the program/event. -the amount of money the DDB wishes to commit to the furtherance of its ongoing programs/events. The DDB should encourage the commitment of matching funds from program petitioners in order to avoid making organizations too dependent upon DDB funding. organizations that have their own financial resources have an independence and institutional capability that helps insure their viability and influence. There are no easy answers to the problems facing downtown Clearwater. Comprehensive, cost effective, pro-active concepts like the recently proposed plan by the City Manager constitute the type of activity that is most likely to attract the development/ investment communi ty to downtown Clearwater. It offers phased redevelopment in multiple sectors of the downtown and will bring the benefits of redevelopment to the entire downtown district. Plans such as this are many months in the maiing and in this instance it was not possible to prematurely to reveal the interrelated components because to do so might have jeopardized the overall chances for successful implementation. In a sense, this secrecy is unfortunate. Had the plans come to fruition earlier or if key components like parking could have been discussed months ago, some critics of the program might have been reassured that the direction being taken was a good one. This, however, was simply not plausible. As in any situation there are multiple alternatives; I have endeavored to cull out those choices that seem most appropriate. I feel certain that these selections will stimulate other equally valid ideas and options. First, the Board should: Carefully review the proposed recruitment program and other elements contained in the 1992-93, Pearson, Thomas proposal recently submitted to the Board. During the past several years, this agency has demonstrated their talents and multi-faceted abilities. They have also gained a familiarity with the goals, objectives and policies of both the eRA and the DDB. Board members should - as they do each year - make any changes that they believe will improve the effectiveness of the proposal. The Board should also take this occasion to assess their overall goals and objectives in order to see if a collective consensus exists as to the most productive course of action to follow. 4 If there is no desire to pursue the Pearson, Thomas recruitment program and the Board is unable to agree upon modifications to their work program, then other options need to be explored. These are: ,.;~ . 11) researched the Shopping Center Expo conference; 12) researched and prepared a mailing list for the Ventures newsletter (note: list is updated regularly); 13) agency responded to qualified leads generated from the advertising; 14) initiated a Superbowl promotional package with the hoteliers; 15) created, developed and produced the marketing video for downtown Clearwater; 16) organized a reception to premiere the marketing video; 17) represented downtown Clearwater a t the location expo in Los Angeles providing film leads and follow-ups. 3 The third year to date-retention, relocation, recruitment-the agency: 1) prepared a marketing plan which includes a very aggressive recruitment program; 2) prepared a retention/ relocation program for the downtown area and submitted the program to the DDB for review; 3) designed a RFQ packet for the East End project; 4) initiated a media campaign with door prize promotion for downtown retailers; 5) continues to respond to qualified leads generated from advertising. Two and, a half years ago, DDB meetings were typically attended only by City staff and agency representatives. The public was notable by its absence. There seemed to be a health)' skepticism regarding the willingness of the city to vigorously pursue downtown redevelopment. Now, the meetings have a very respectable public representation that, at times, brings out the critics. It matters not that decades came and went and considerable DDB resources were devoted to downtown problems without any appreciable results; the critics now demand significant and immediate results from a program that has not yet been in place for three years. To add to the pressure, various groups now eye the available ODB fiscal resources and argue that their uses, whatever they may be, would constitute a better allocation of the funds. Since many of the accomplishments resulting from the program are in the formulative stage 1 a decision to scrap the effort or reduce its impact by significantly diminishing or reallocating its funding, while simple in theory, would be a mistake. Once the DDB sets its annual millage rate and ascertains how much money will be available for the corning fiscal year, 'all fund requests should be evaluated to determine: -the degree of impact the program/event will have on the , "1 Abandon the advertising agency concept altogether and focus instead on becoming a promotional board. I am enclosing a copy of a 1990 memorandum that I sent to the DDB which deals with this option. This alternative is not without risk. It is. very difficult to gauge the true impact of promotions. They seem to work best in downtowns that have a variety of shops and attractions that can take advantage of the traffic generated by an event. Even if that contention is accepted as valid, some professionals who study downtowns are convinced that people,tend to be "event-centered". They come to hear the music or see the show; they may buy food and drinks but they don I t necessarily want to shop. Hence, the retail impact is negligible. If promotions become the driving force of the DDS, the energy and resources devoted to cultivating a "distinct" media image may be lost. 5 Initiate an RFP for the retention of an ad agency. This process would allow the DDS to assess the kind, cost and quality of ideas from competing Tampa Bay agencies. It should be noted that the RFP cannot be limited to Clearwater based agencies but must be open to all who wish to qualify. Just as the University of South Flor ida study prov ided the background concept for the 1989 RFP, the DDB must formulate concise objectives to give the agencies a common basis for response. This process is time-cunsuming (approximately three months) and tends to place ongoing activities in a state of suspended animation. If a new agency is selected, it . would probably take them from two to three months to chart their course of action and present their campaign for approval. Create a DDB administrative framework independent of CRA/City staff support. This would essentially recast the DDS in a pre-1989 mode. In 1986, DDB salaries alone accounted for $62,400. Rent, office furniture, equipment, and support services would add to the administrative costs and further reduce the dollars available for promotions and/or media. As the DDE considers various options, it should do so in full consultation with the CRA and with a wor)(ing knowledge of the two memorandums - June 7, 1989 and June 22, 1989 - that form the basis for the co-operative agreement. These documents are included for reference purposes. They are quite explicit as to the division of responsibility - media, promotions, and public relations for the DDB and project planning and initiation for the eRA. The framework provided by the agreement laid the foundation for the downtown progress made over the last two and one half years. This progress was made without the rancor that characterized pre-1989 relations ~ " , . . ~ ,'.~ . ..... . between the DDS and the eRA. Aside from the accomplishments of the DDB's advertising agency which were previously discussed, the eRA paid for demographic research and commissioned the Downtown Market Assessment. The ini tia ti ves conta ined in the city Manager I s downtown plan (Kravas purchase and Garden Avenue parking) will be funded from eRA monies. It is doubtful that such advances would have been made without the combined resources and productive interaction of both downtown entities. 6 .. .........,.................,. " ! I , , 1 . , , . . " . Itorn N ~r271 uT!Ju- . Moullng 00\10: - EX II I l3 I 'I' 5 CO~1UN ITI REDEVELOP~tENT AGENCY Agenda Coyer ..Mef!1orand~rn - .: Subject: Amendment 0 f Con tract for Downtown l-la.rket Assessmen t '-lith HUH ter In to res ts, Ine. Recom mendation/Motion: Aut.horize the Amendment of the contract with Hunter 'Interests, ;,', Inc., to include conceptual planning work and f,iscal/f inane ial ,: analyses in the amount not to e~ceed $74,000 increasing tho contract from $33,800 to $107,800, and amend the eRA budge t to include the additional appropriatio~.~~,~undinq.~~~~__~~~~e:~. 00 and that me approprlatB omClalS 09 aUlnOnZ8CJ \0 executo sarna. BACKGROUND: '" '. The first product from the Downtown Market Assessment'being done, for the Communi ty Redevelopmen t Agency by Hunter In terests, Inc., ,:1,:' has been completed. This document, a Technical Memorandum, " specifically deals with' an analysis of the downtown retail market. It is a specialized cepoce designed to send to prospective retail developers and tenants who might want to learn more about Clearwater's downtown market potential. In tone and content, this I report closely resembles a study that a developer or retailer might themselves commission. . - The analysis focuses upon net new demand rather tqan transfer rates to define market capture. This is'a rather conservative approach made even more conservative by the consultant's decision to not incorporate in the demand equation the sizeable tourist and ':: seasonal market. Even with this approach, the Technical Memorandum', , . I concludes that downtown Clearwater can support ~an,upscale retail,. project ranging from 200,000 to 250,000 squar~ feet" which is . compacable in size to Old Hyde Park in Tampa. ' The Technical Memorandum m~lti-phased development private office towers, residential units. deals with what would be phase one of a which could eventually include public- < a conference' center hotel and condo- ", The first phase shopping complex is envisioned as entertainment ,themed and could incl.ude a 5-9 screen, cinema complex, 2-4 theme': restaurants with some entertainment aspects like a sports bar, night club or comedy cafe. .' Aevh!wed by: Legal N( A Budge! Purchasing N If\ Risk Mgmt.. NL f\ DIS NL" ACM Olhor Originating Dept.:~ Costs: Economic Devel~ Continued Next Page Commis,slon Action: o Approved o Approved w/condiUons o Denied o Continued to: . " . $74,000 Talal , . , ..,; , f,' ,,(;, I ,',' . , 'I:, " . . $74,000 . Current FY Funding Source: o Cap&. Imp, o Operating o Olher User Dept.: Economic Developmen Advert/sed: Data: Paper: . ~ Not required ^flecled panl es o Notified o Not required Attachments: :\' Feasibility Analysis Cost.. Estimates Submitted by: Appropriation Code: 188-7000-301/552 o None cuy MnrH)(}Ur "T~ I ~~..,. , '- .. ,', 'I' .. :,." " ~ . . Page 2. Amendment of Contract for Downtown Market Assessment I Given the very favorable numbers found in the Technical Memorandwn, staff feels that it would be advantageous to proceed to the next stages of the development program as quickly as possible.: with a positive retail market'analysis in hand, the next two steps are to commission a conceptual design and a financial and ,fiscal impact analysis. This work will prepare staff to deal with all normal feasibility questions relevant to site requirements, development plans, phasing, developer's debt. and equity investment, public ,', sector financial participation requirements, employment and tax .' benefits and the net cost/benefit to the city at any point in time during the first ten years of project life. The Conceptual Planning work encompasses the following elements: Presentation Graphics ~- rendered site plans and per~pective drawings. Site Analysis access, functional questions. parking utilities and ,other The Financial Analysis and Fiscal Impact includes: , Financial Analysis -- capital and operating cost estimates foc'.'! the project; overall project proforma; ten year cash flowI supportable private investment levels for debt and equity; ;:,' and, definition of any capital funding gaps~ \'; . Fiscal" Impact Analysis revenue production to the city from tax flows of all types, fees, licenses, land acquisition or lease payments and other revenue flows. The estimated cost for this work is $74,ObO including a $10,000 contingency. Work details are listed on the attached sheet. Staff recommends that the eRA amend the contract with Hunter Interest, Inc., to authorize the firm to accomplish the necessary conceptual and financial analyses. . '. ::, '.':.. :::.", :'. ,,:,~~.,~.::: '.'. f " :,""'. Cost. , fEASr"BILITY ANALYSIS COST ESTIMATES Conceptual Desi@ * Establish Building Program Site Analysis Alternative Site and Development Concepts Illustrative Site Plan Image Study (Perspective Rendering) Capital Cost. Estimat.es . Operating Cost Estimates Subtotal Financial Anal~sis Prepare Cash Flow Model (5 use t.ypes..independent profit centers) Estimate Input Data - Debug Model Run Base Fxnancial Analyses Run 3-4 Sensitivity Analyses Prepare Technical Memo Subtotal Fiscal Impact Analysis 13. Prepared Analysis Structure 14. Collect Tax Rate/Collection Data 15. Confirm Data/Interviews 16. Conduct Fiscal Impact Calculations 17. Prepare Technical Memo Subtotal CONTINGENCY 1 . 2. 3 . 4. 5. 6. 7 . 8. 9. 10. 11. 12. TOTAL $ 3,000 '* .'5,000 * 11,000 5,000 2,000 6,000 2,000 $34,000 i ':. . . ','. ,. ., $ 3, 00 0 2,000 .. 3,000 7,000 -It 4,000 , $19,000 .,' . ". . ,.1. \ I . . .... $ 2,000 2,000 1,000 -It 3,000 3,000 $11,000 $64,000 $10,000 J ~ , . Assumes city staff assistance with certain data collection, interviewing and administrative support. '.~~', ',- .... . -.', . ~ . I COMMUNITY REDEVELOPMENT AGENCY MEETING DECEMBER 10, 1990 1:00 PM HUNTER INTERESTS INC. Jerry Sternstein: As you will note from your background. on the agenda item, we have distributed to you a draft of the first product from the Market Assessment. This is a Technical Memorandum that in a large sense defines what kind of retail potentials there are in the downtown area. This is not the finished product from Hunter Interests. This is merely a Technical Memorandum. It's cast in a way that we can use it to go directly to developers because it is done in such a way that a developer would do it. In large measure, this document substantiates the information that I've gathered and that I've talked about with Mr. Rabun and Mr. Wright. It's substantiates a market that we three felt was here based on material that we ordered shortly after my arrival from CACI which is a demographic company that gives information of this nature. It's also based partially on C-Map study that we did after the PEDC released their time/distance travel schedule. In fact, it's a much more optimistic yet conservative document than we had assumed. Rather than my giving you all the details of it, we have Mr. Hunter who is going to talk with you about this very important Technical Memorandum and tell you what we think the next steps ought to be to move as rapidly as possible into a development program. Mr. Don Hunter, Hunter Interests Inc.: We have another document in preparation which is a final report on our entice scope of services for you and it will include aspects of this Technical Memorandum, which is the retail market analysis portion of our work and it will also i'nclude a number of other things, an assessment of the downtown traffic and parking situation, the strategy for revi tal ization and other things. The purpose of this Technical Memorandum is to isolate only the retail market analysis portions of our work and our recommendations in that regard. I would like to summarize my own reaction to it and then I'm available for any ques t ions tha t you a 11 may have of the work to da te or wha t C s contemplated in the future. I was presently surprised with the results of the analysis. The market is stronger than I thought the technical analysis would show. Because of that strength, we made a decision to emphasize the growth segment of the market primarily to be able to say that this analysis is quite conservative in its outlook and that new retail that we recommend can be justified solely upon the growth which we anticipate in the market during the next five years. In addition to the demand that will result as a part of that growth, there is the opportunity to capture certain existing demand ../11\,)11 II~., LI.:L<..111 l..... .Jut 1.1.... Llll..:l~ t."; <..1.1.J.J '-'II .-'i'II'" ,...... -i ~. .I~I._,-" penetrate the tourist demand segment and the pass-through demand, if you will, that is primarily the beach related traffic from further inland or from Hillsborough County. When you take those two segments of demand which cannot be quantified in detail technically as we can quantify future demand in detail, the market is even stronger and the potentials for supporting additional retail are even greater. We wanted developers and prospective retail tenants who viewed our work to view it with the attitude that it is indeed conservative and that indeed there is additional demand over and above what is quantified here. Yet be comfortable that what is quantified here supports a significant segment of additional retail space and that's what it proves. So our recommendations to you are only in the Technical Memorandum on one item and that is retail development recommendations and that recommendation is that you pursue an upscale specialty retail center that would be in the 200,000 to 250,000 square foot range in terms of size in downtown Clearwater or the downtown fringe areas and that center would be a themed retail center which would have entertainment dimensions to it as well as a compliment of food and beverage establishments. Roughly in the three to one ration, that is for square foot of food, beverage and entertainment uses in the center, there would be three square feet of specialty retail, either general merchandise retailing, apparel accessories, housewares, miscellaneous specialty retailing. And that the entire format of the center be upscale as described in terms of the competition in our document. In addition, we have other recommendations that will be in our final report which are not included in this purely retail analysis report and I would like to summarize a couple of those for you so that you know the direction that we are headed in. We also will be recommending to you that this retail center be a part of a larger mixed-use development which could include public off ice space, future private office space and conceivably residential units and possibly a lodging establishment/a conference center hotel. All of these elements we feel there is potential for in and around downtown Clearwater and the challenge is to put them together in a way where each one of these elements reinforces the other and the entire development gets over certain threshold in size and scale. Retailers use the phrase the "critical mass threshold" where once your over that threshold, the center itself becomes generative in terms of people coming for one reason but doing something else there as well and that's the nature of mixed-use developments. From a development standpoint, that's the trend or direction we are headed in for a number of different reasons which make sense from a developers perspective. From a consumer's standpoint, that direction makes equal sense in order to combine trips with multiple purposes and uses. That generally is a very summary way is what we have accomplished to date and this second document is in preparation now and will be completed shortly. We have also recommended that you go on with the process of trying to establish the general feasibility both "I.<_lt.~_\" ,_..I.. 1_ltl..tl.t....i."l .tJJ..~.Jlt!.'_J.JL \,.f~, .J with a view toward continuing down the path that you have already started down which would be to eventually solicit developers to come in and build this center in downtown Clearwater. The recommendation that we made at Jerry's request with regard to our follow-up work and what would happen next is along those lines to continue down that path. It is basically to look at conceptual design of the project and this is the larger project, not just the retail center, so that we can determine what it's site requirements are and how it would function physically. The who, what, why, when, where, how project, if you will. Then to get further into initial cost estimates, financial feasibility and fiscal impact in order to answer. all of the difficult feasibility questions and define what the city's role in the project would be and what would be expected of the city and in fact what the city would receive in terms of tax flows and revenues from the project when it was completed. That's the purpose of our additional supplements. I would happy to answer any questions that you have on the details of the technical work or really any aspect of our work. Mayor Garvey: Yes, I would like to separate that out. Are there any questions on the memorandum that we received in regards to the Technical Memorandum from Mr. Hunter and the findings that he concluded as opposed to the agenda item which we need to approve which is the second point? Was there anyone from the public that wan ted to spe ak to the memo rand urn tha t we rece i ved? Then the second point would be the current amendment to the contract, did anyone have 'any comments or questions on that Mr. Hunter could answer or Mr. sternstein? Mr. Fitzgerald: Let me start off and maybe generate some questions because we are talking about extending a contract that was $33,000 up to over $100,000 and you talked about financial feasibility but are we in a position to analyze the financial feasibility of a project for a private developer? Mr. Hunter: Yes, for a number of reasons, this is typically done in a downtown project that has a public initiative. The nature of development in this country is such that developers, particularly those seeking retail projects and large development projects are not in general seeking out downtown area locations, particularly those that are fairly built out. The redevelopment initiative in those areas is generally a public initiative and during the latter part of the decade, the 70's or BO's decade, as you are well aware the business has evolved to a point where these public initiatives are necessary. It is more or less the responsibility in redevelopment projects for the public sector to demonstrate feasibility 2nd then be able to show that feasibility to private developers th~t they are looking to corne in and build projects and take an investment risk. Furthermore, in order to do technically a fiscal impact analysis so that you can see not only what is expected of the city in terms of financial participation if any in the project, but also what the city would be receiving in the way of physical benefits from the project, employment benefits, job t ',~; IJ \J 11 U l. .J L 1 U J 1 I U 11 U S U l. IJ L L Il . 1 I) U L U u.L 1 j II d \,/ ..: l- J 'J'- l. .J V '-J l. L II d L threshold of financial feasibility because if you assume a certain project is feasible and you then do your fiscal impact work based on that and anticipate a certain circumstance and that proves ultimately infeasible, your fiscal impact work is rather academic. So the sequence of events typically is to do market analysis first to determine whether there is market potential because if there isn't you just stop there. We are over that hurdle, then the next step is typically is to define the greater project in detail and begin to locate it on a piece of ground, determine what the site requirements are going to be so that conceptual design studies can be done and costed out and then that cost input both capital cost and operating cost estimates are input into a financial feasibility equation which is fairly simple in nature. You are not doing the type of financial feasibility that a developer would do or that a developer's lender would require, it's preliminary feasibility to determine does this project make sense or does it only make sense if there a big public subsidies, is the land too expensive, the basics of financial feasibility and then the results of that analysis are input into this fiscal analysis so if there is for example a public sector capital requirement infrastructure improvements or some site acquisition and conveyance, what are the fiscal implications of that and then after the project is built, is it phased, how is it phased, how do new properties get reassessed, what are the tax flows into the city from that. Then how do we look a t those cos ts and bene fits and we igh them and make a judgement as to whether the city wants to p~oceed further or not. In some cases, city goveLnments are saying we don't want to proceed farther because it's too risky a pr-oject or too much is being expected of us. In other cases, there is a benefit cost multiple that says well we have to spend a certain amount of money up front but if we do that we've got an excellent prospect for reaping additional financial benefits in the future and particularly more or less built out are looking at that type of redevelopment activity. Cities with large undeveloped land reserves at the perimeter of the built up area tend to be less aggressive in redevelopment activities and more interested in just raw land new development and therefore less inclined to participate in redevelopment ventures. It's the logical sequence. .,' Mr. Fitzgerald: Since this is eRA money that we are dealing with and that comes of course from our downtown business property owners, I presume we will get input from those people with regards to their observation on this request. Mr. Rabun: There is that kind of input, Mr. Sternstein has made this entire effort available and it has been discussed and shown to the Downtown Development Board. Mr. Fitzgerald: I would like to see what the downtown people have to say about their views on this at some point in our discussion. Mr. Rabun: Jerry could begin with the Board and then there are residents and business people here right now. .. 11.1 1 ...I.. .1 ...1 I. .J '.- i . time. J. - ~.# I '- . ,__ ,t I '.: ...; L .l t t '::J 1. .I I .) L) '~, t .. ',. \. .. .J Mr. Fitzgerald: I would like to inquire as to what the downtown position is with regard to the business community. Mr. Nunamaker: The City of Clearwater, I feel, is unique in it's own right. In that, we don't have the deterioration a lot of the downtowns have had that have tried to renovate their areas. Do you feel that this uniqueness is enough to make a project like this more successful or have a chance of being more successful than it has in some of the other downtown areas. St. Petersburg for instance their retail market is not doing too well, from my analysis anyhow. But we do have two shopping centers that are relatively close to the downtown area and one of them, Sunshine Mall, is having its problems, struggles to keep going and the Sears Shopping Center to the south also is having some problems. Do you feel that the package that is going to be necessary such as retail and office, maybe governmental facilities, do you feel that this is what makes it have a better chance of success than some of the other projects have? Mr. Hunter: I think that aspect will help and your first point with regards to the strengths of downtown as a safe and good condition without a lot of blight. The work that has been done in the past in the city shows and comparatively, the city looks good. This coupled with the growth prospects are all the strengths that will be looked at, I believe, favorably by developers when your in the posture of soliciting them. All of that, however, kind of gets viewed by them as icing on the economic cake, if I can use that analogy. If the project economics aren't sound, it really doesn't make too much difference what the other good things are about the community. Clearwater is known, this area in the scheme of things nationally, the Tampa Bay area Is viewed as a hot area and one of the strong metropolitan markets of the 90's but it is still necessary to demonstrate project economics when trying to induce somebody to make a sizeable capital investment particularly with what's happening in the development business and the development finance business these days. It's more difficult to undertake these projects and its much more difficult to finance them than it was a few years ago. So, you stack up all your strengths but you basically go forward with a sound .project proposal and the public/private partnership that results should be, in my opinion, one in which the public sector is leading but your really leading with soft costs only. These are feasibility studies, plans for projects are soft costs. A number of years ago in the active urban renewal program, the city governments lead more aggressively with hard costs only, with hard costs as well as soft costs by undertaking sizeable capital investments in real estate before there were development commitments and we don't recommend that at all. If there are going to be any capital costs or hard costs proposed as a part of this project, that should be done hand in hand with development commitments to invest larger sums of capital dollars so that you know you are not doing it a leap of faith but ~, i.., l..J '." . J 1 .... \.., ."" 1;'\..4 1.) I. L " u \...~; J... ~ L \) L ..J 1..1 i.. '- 'J.) 1. l i ..J the procedure that we recommend, a more cautious procedure, Mr. Nunamaker: Do you feel that in order to make this retail, have you mentioned office being a major concern? Mr. Hunter: Yes, but in the futur-e, we see the pr-ivate office community responding to the project after its first phase. I would like to see a first development phase that would include a retail component, a public office component and perhaps some other- components, but because of the nature of the office market and the perception in the development community with regard to absorption rates and available space, it's not likely that there be an office component up front. I think that there could very well be in a second phase of this projec t, a pr i va te of f ice componen t in response to the public office initiative and by then a more mature market and a stronger position for downtown Clearwater to retain and attract to the downtown area, major office tenants. At the present time, office tenants are primarily attracted in by r-ent deals. By the type of deal that can be made to lease space as well as by what is there that attracts them. Often times, the competition with r-egard to a suburban office center might in the perception of the tenant have more to attract them. You can go so far with office deals and what you need is an excitement and development momentum that says this is a growing destination place where people are coming for a number of different reasons and a perception that the downtown area is again growing and on the move and this project will very much contribute to that if we can get it going in the 90's. Mr. Nunamaker: When you refer to public support are you generally r-eferring to a city hall facility or something like that? What I'm probably questioning is do you feel that the city will have to make a commitment to move their office complex into an area like this in order to help make it a success? Mr. Hunter: I don't feel that a commitment to move City Hall as a part of the project is necessary to put together a retail project that will pass muster on its own. Clearly it helps and the larger the mixed-use development and the greater the commitment and other levels of government, the greater the project and the greater the critical mass of it all. So I think that it would clearly help. In our work to date, we have become familiar with the studies that have been done internally with regard to city space and even though no decisions have been made, we've generally become aware of the options that you all have for the future and the kinds of things you'll be contemplating in the months and years ahead. We've also become aware of the situation at the Annex and the circumstances there. It would be very desirable to have when you all decide what the future of the city space situation is to have that be coupled with the decision on this project so that there is a bigger whole, if you will. The whole of it is larger and more mixed-use. Hr. Nunamaker: You've mentioned and emphasized, I think the fact L11dL, ljl)Vt..:Lllill\..:11Ld.llJIlL1Llt..:S Ildv'v Lv UL.: L11vJ.Lv<..:U 1.11 L.lll.J dllLI L...J Lll~ best of my knowledge, I don't know of any other governmental agency that ready to move into that area other than the City of Clearwater, so it was my concern as to whether we were putting ourselves into a position of committing to that area, just how serious we'd have to be to make this thing go. Mr. Hunter: What I would like to see happen is that in this next component of our work, we get further into what the city's options for its space really are and be able to show you not only graphically but in financial feasibility and fiscal impact terms highl igh t these options. Because I think it migh t give you additional information when that decision time comes. I also am not familiar with any other units of government that are footloose and fancy free and could be brought in but my firm has put together several government center complexes that have had multiple units of government and one of things that I have learned from these is that once one unit of government is viewed as being serious about new space, new location, new facility, other units of government, maybe completely unrelated, County, State began assessing their needs in the area a little harder and if they have space problems or growth prospects, there then becomes an opportunity to contact them at that time and say about this situation. When you think about possible alternative uses of space that various levels of government might be vacating, there may be some economic sense involved in a push as well as a pull and trigger a move that may not be being thought of at this point in time. I can foresee all of that happening but it mayor may not result in commitments of other units of governmenc. Mayor Garvey: I guess the bottom line is that final decision for relocation of City Hall is ours. Ms. "Berf ield: Mr. Hunter, I would like to make understand what you are saying here. You are saying that this retail project would fly on its own relocating our City Hall there, that the statistics sure tha t I that you feel without our are there? Mr. Hunter: Yes, if the market is strong enough and if you are to decide today for example that there is going to be no new City Hall for the next five or eight years and you are instructing me to help put this retail project together as alone, I would be a little bit disappointed but I would say, yes I believe this can be done. The market alone is strong enough and the market potentials are good enough. Now, tha t migh t not be the case a few years from now because of what might be built elsewhere. I was just recently at a event in Denver where a number of larger national retail developers were located and we were talking about the Tampa Bay Market in general and its very clear that in the business, other folks have uncovered in some detail the same thing that we have quantified in this Technical Memo and that there are segments of the market that aren't served well at present and also destined to have significant growth in the 90's and there could be additional project announcements that would take off part of this potential .,1' t " t. ,. for a fact that people are looking at other suburban centers that have not yet been put together but which could eat in to this market somewhat and erode the potential. So it makes sonle sense to move now and be early in this situation and be able to demonstrate an altornative that is in the center of a segment of an unserved market that may be better positionod geographically than a suburban center out on the fringe, put your best foot forward and show your strengths. So, there are significant retail potentials. I . I '_. I ,. I & . Ms. Berfield: According to the Wall street Journal, economically, the Country's a little bit light, do you see this as being a problem with getting financing for this project? Mr. Hunter: The real estate finance industry is in as distraught state as I have seen it in 26 years in the business and that's in part as a result of the savings and loan situation of the 80's, its in part a resul t of some over building in markets and concerns about the future whether its just a recessionary cycle that we are going into, how deep its going to be, how long its going to be and also uncertainties related to things like the middle east situation. Its an uncertain situation, but, people in the business continue to 99 on, development commitments are made, the nature of financing is changing and I fully expect the way in which real estate finance for large con~ercial projects is done in the decade of the 90's to be significantly different to the way it was done in the 80's with inordinately high debt levels. Much more equity finance, muoh more risk taking on the part of stable developers rather than non-risk taking on the part of less stable developers. The wheat is being sorted out from the shaft at the present time in the development business and a lot of people that really shouldn't have been in the business in the first place are no longer in the business and won't be in the business during the decade of the 90 's. But the top retail developers are continuing to look at projects, are continuing to require sites and even though they are financing differently, are continuing to grow. They are focusing more on unserved market segments and niches in existing markets than they are just on the big regional malls that kind of blast into the market. And then in the retail business, there is a number of other specialty types of retailing going on, the discount centers, the warehouse shopping centers, etc., some of these are over built in this market and there won't be activity. Other segments' like this specialty retail segment are underbuilt and underserved and there will be activity in my opinion in the 90's. Mayor Garvey: But that's only valid if we get in at the front end and not wait around and lose the market. Mr. Hunter: Well, yes. There's the timing aspect and also the aspect that from any downtown area you are somewhat disadvantaged in competing \'lith a suburban center just in terms of project economics. On the other hand, you do have some location advantages in terms of being more in the center of markets and being able to do more with a component of a project like a retail component by '4 'i,-,-. l. '1.J 1. \..- L I.' 1_1 ,. .,t I .J .. '. Itt l .:~\_.,,,J I-A,....'- .',;" '_ L'# ~J'. ',. \ tJ lure and has a certain attraction. A large shopping center financial commitment by itself, particularly in a suburban area is a different kind of investment commitment and a different kind of risk than going into a project where you are competing in multiple markets at the same time wi th a mixed-use project and perhaps growing incrementally through phasing as you penetrate a market. Ms. Berfield: One of the suggestions for the first phase is the 5- 9 cinema. If you go south about 3 or 4 blocks, we have a theater there, was that taken into consideration? Mr. Hunter: Yes, we looked hard at that project and at that entertainment dimension. There are questions in my own mind as to how effective that cinema not only in penetrating its own market but contributing to retailing at the mall because of the lack of a kind of functional integration. You can go to the theater without going in the mall. Sunshine Mall has its own concerns with regards to positioning in the market. At the time the mall was constructed, it may have represented good thinking with how to do a strip center plus. Its more than a strip center, you can't really call it a strip center, but as it has evolved, it really hasn't been on the mainstream of any clearly defined segment in the retail business. Consequently, it suffers in the market place from being kind of a neither fish nor fowl center. It needs to reposition itself. I am convinced that the type of retail development that we are talking will be helpful to Sunshine Mall as well as helpful to retailing in downtown Clearwater because of additional economic activity and generation of business that comes into the whole area. People won't be going to this project that we are proposing for the same type of retailing that exists either in the core area of Cleveland Street or at Sunshine Mall. But together, these types of retail opportunities become complimentary. We are not talking about really head-to-head competition with either but supplementary penetration of additional market and a clearly defined segment that's higher end specialty retailing. Destination trips from shoppers that are looking not only for certain other aspects of the shopping trip like perhaps a meal and entertainment as well as a shopping trip but also a specialized type of retail trip. Mayor Garvey: The bottom line of the agenda i tern says it could include, it does not say it would include. Which means the market analysis would determine what's going to be put there? Mr. Hunter: Well, part of it is the market analysis but its also developers desires. You see we were somewhat cautious in our recommendations by having a range of square footage in our recommendation because different developers have a different project signature, a different kind of project and some are more entertainment and food/beverage oriented, others are more traditional retailing oriented. I think you have to maintain and ought to maintain a cer:tain amount of flexibili ty so that you welcome everybody. Come forward with your project proposals, tell l) \ 'I E. I \" ~ I I I , , ,.' . , { " ; K, . f 'I ,', . ~.: . J '., I , :.. , \ I. " , \ I " U.. ,J tf" ,-' .. i '/.4 ".... 1._ '.." . . I. ..,. . ""_ \, I __ . J ., ~' j , hero, tell us what you want to do. Sonic developer might not propose a cinema complex or might propose a smaller one. The only reason that we recommended 5-9 is because of the economics of that business. What's happening in that business now is that there are economies of scale and operations as you get a larger number of theaters and there is a different view of market penetration and who your market is and what you are going after in that business and its desirable generally to have more movies available or an array of movies available. We would like to see that, but, there is no way I can say with any certainty as to whether or not that woul~ be in or any other component would be in. A trend in the busine~s is toward specialty centers that have two looks if you will, a daytime look and an eveni ng look. I t goes to the point where really the nature of the center changes when you go into the evening hours. An individual shops one set of lights and one look in the window and inside the kind of music that's being played goes off another whole evening look comes on. The idea with these combined entertainment centers is to be able to spread out the shopping hours, attract a different clientele and have two different looks, two different kinds of market penetration and this is one of the things we will see more of in the shopping centers in the decade of the 90's. This is what the developers are talking about and the retailers particularly the large chain retailers, are very interested in this and are pushing somewhat more stodgy developers in that direction. Let's be able to serve a number of different market segments. These are trends in the business that ~e feel would be the kind of thing developers would want to do and which will in fact assist your market penetration and help bring people into downtown Clearwate~ in the evening hours. Mayo~ Garvey: But, the bottom line is that what we are lcoking at is potenti al. We are not say ing wha t 's going to be there or demanding what's going to be there. We are just saying, we are open to any kind market the developer wants. Mr. Hunter: Yes, that is correct. But the more that your analysis of potential is in line with the trends in the business, the better you will be received by the development community. You will be perceived not only as a city who knows what's going on in the business but has an opportunity that really fits the trends in the business and that's good. That will help you in putting that project togethe~. Mayor Garvey: So as part of the next phase of the analysis, you are going to look at what the market is in the next 10 years and put an analysis together. Mr. Hunter: That and really a step beyond that because we'll be putting project concepts together to test the feasibility them. For example, on that work program, the reason we put in there a desire for a rendered conceptual site plan and a image study is solely to illustrate a possible way of doing this project. But illustrated in some greater detail. What you want to do is . I I ' ,.' f, / \ "I, , \ It"" / ' ", 1, . . ~ 'f I I I I \ / ,J I \......~I;,.I.,..J_l_...~\~_ ,_..)'I'L~.".~~.'1.';', ..L,.\"1 L'~ .....A .j...j~.JL.lLl.J'.'I. j '&......(.A. "J standpoint of how it functions and operates yet in urban context, wh ich you are, a nd one of the trends in the suburban s hopp ing center business is a main street look. If you look at the new Restin Town Center compared to the old Restin Town Center it's very main streety as opposed to shopping centery. So what we want to do is capitalize on all the3e trends as well as the realities of the circumstance here to demonstrate that it will work and that it fits these trends and that all the functional requirements that developers, customers and retailers have can be satisfied in a manner similar to a suburban shopping center without some of the perceived difficulties of downtown areas. Park your car in a structure as opposed to a lot, can't see your destination when you get out of your car which is highly desirable, all these surveys that analyze why these things work. We want to demonstrate that we can achieve those types of requirements of the project in an urban context and do it in a way that's financially feasible and fiscally sound for the city to be involved. ,I Mayor Garvey: Is there any more questions or comments? Is there anyone from the public that would like to make any comments? Lawrence Lindner - DCA: I believe that it was you, Commissioner Fitzgerald, that asked what was the opinion of the merchants and the people downtown to the whole study? Basically one of skepticism. Over the years there have been different studies done, you hear it in the paper, grandiose ideas and nothing was ever carried forward. So even the study by Mr. Hunter, people are still skeptical, why spend more money, nothing is ever done with it. My whole conclusion would be is what the people downtown want is a study showing a viable way that the downtown can go and then actually following through and trying to develop that rather than just letting the market force take over. So what we are really looking for is direction. Mayor Garvey: Is there anybody else? Carol Warren - DDS: I sit on the Downtown Development Board and obviously I can't speak on behalf of the Board but we are committed to the development of downtown and to see downtown grow. On a personal level, I work in downtown Clearwater, my husband's family business and real estate has been in downtown Clearwater for 60 years. I feel like we are on leading edge to see our downtown grow and 11m pretty excited by this. I think we need to make an aggressive stance and I don't like to see my tax dollars spent needlessly but I think we need to make a commitment. I am encouraged and I thank you for this time. Mayor Garvey: I can understand the concern that it would be another study put on the shelf. I just hope that we that are here today will not let it sit on the shelf and that something we will have to work on. Mr. Fitzgerald: That's my concern, we are spending another $74,000 ~' \ ' \ I. \" ,I, . J I \ , " "1 \ ,1 t" I , J . ~ I . I . "f, ,l " I I . . 4 l J ., _J .. ~ '" I! " I~,) I l. J I ...; I l' l ",,) we started out with a $33,000 fee and now we are getting ready to take another step and we are spending somebody else's money here. We don't want to waste it in any way. There is the potential, of course of coming up with a situation that we would not wish to continue. We certainly wouldn't if it showed us that we couldn't do it but I also have the concerns that the gentlemen has that he's skeptical because we have to be a little skeptical. Mr. Nunamaker: I am sure that we are all skeptical but it seems like we are at a point that if we are going to try to promote downtown development, we are going to have to have the study in order to go forward with a educated promotional program and so the decision is whether we are going to spend the eRA funds for the advancement of that area. That's where the funds come from and that's what we are here to help promote. I know that there is no other alternative other than to put an educated program together in order to promote it. Mayor Garvey: If we don't take this step, we take nothing. Mr. Fitzgerald: That's the problem that I foresee also. We at that juncture that if we a dedicated to trying to redevelop the downtown we've got to put all the things in the arsenal to be able to do that. Without this we are sort of at the point where we really don't know much more than we did to start with except saying that there is a community out there to be able to support something. . But I also think it doesn't hurt to be a little skeptical to keep that in mind because we all want to make it work. Mayor Garvey: I think being skeptical is why Sue brought up the idea of the theaters, I mean how many theaters do we need next to each other. But what we need to know is what the market out there says is in demand or what is the critical mass that makes it work and that's what we are paying the experts to do. Mr. Fitzgerald: If we sit back where we are now, we do not have any plan for proceeding that I am aware of that is going to cause the overall regeneration of the downtown. Ms. Berfield: In your opinion as a professional, do you think this project will benef i t other businesses further downtown? These people have businesses in downtown this project is on the edge. Mr. Hunter: Yes, I do for a couple of reasons. First of all if you look at the nature of downtown retailing now,what is necessary is really more people being brought in. There is a segment serving the downtown daytime office population, there are a nUTl\ber of establishments that niches or have long customer histories and their customers come to them and would continue coming to them no matter where they are. There are some destination trips for Maas Brothers for example. There might some spinoff from that but I don't think its significant. Not at all like the spinoff that occurs in a shopping center from what your anchors or major stores I i l' ,. I: i ,. . V. ! . ,. I , ; .' ,-. " ,:1 :p ...." '- '. I~ '.4 ..... '- . I, t.... ~ " '''I to,....; l ..... .... '_ l_ t-1 .L it..: L 1. 11 'J~) 'VI 1 J L .' , I I _. I "t.. L " .' ~ . , ) l"l t. . look for is traffic. What you want in the retail business is traffic and anything that brings additional people in is good. What you have well in the decade of the 80's and 70's that created an environment that is for the most part problem free and that is attractive. But what isn't happening is attractions or reasons to go into downtown Clearwater to shop whether you are a resident customer or whether you are a tourist on the beach or someone else in another pact of Pinellas. What we want to do is create a penetration of a broader market that will bring people into downtown Clearwater from as far away as 45 minutes to an hour's driving time. If you take a look at the competitive specialty centers now, you have that driving time and more by people that really aren't coming into downtown Clearwater at all. Desirably, for maximum impact, we would superimpose this center right on the heart of the downtown area. That's physically impossible and would be financially and economically infeasible so we tried to do the next best thing which is to create the largest possible retail and project critical mass as close as we can. The tradeoffs become distance versus land cost versus development size economics and those are the issues that we will be grappling with in this next segment. Will people walk, what will be the nature of the relationship, its presently unclear as site gets defined, but you really can't be in the retail business in downtown Clearwater and be opposed to something like this because its only going to help. Mayor Garvey: Is there a motion to approve the agenda item? I move that the agenda item be approve as Mr. Nunamaker: described. The vote was unanimous. t ". " . \' II ' , ", ~" \ I' . , ,~ .'" I .' t 'I. , . I j ... , . . . EXHIBIT 6 . ',' '~1~~;;;:~~~4....,.. ..~. < i . Clearwater city 'commission Agend~ Cover Kemorandum J tem , .3.3- M.etlng DUel 6/6/9L Subject: ESTABLISH FU~DI~G FOR PROPERTY PURCHASES Recommendation/Motion: Approve the appropriation of $2.3 million in unreserved retained earnings of the Parking Fund to the special Development Fund as undesignated fund balance, and the subsequent appropriation of $3.5 million of undesignated fund balance of the Special Development Fund to F~oject 315-4413, to be used for land acquisition. X end thet the appropriate offlclel. be euthorlz~ to execute lame. BACKGROUND: Project 315-4413 has been established to provide funds for the City to acquire land for a combined City Hall, upscale retail development complex. city staff has researched funds available and recommends the use of $2.3 million in parking funds and $1.2 million in accumulated ~arnings on Special Development Fund investments. The preliminary appropriation of Parking Funds to the Special Development Fund is done to insure that ownership of the property acquired is not attributed to the Parking Fund and therefore not subject to restrictions which might otherwise be imposed by the 1983 Parking System Revenue Bonds. If approved, $162,000 of this appropriation will be used for the purchase of Lots 9, 10 and 11 of R.H. Padgett's SUbdivision, already approved by the City Commission on 3/21/91 and 4/4/91, in lieu of the direct parking Fund transfer anticipated in the original purchase approval. ~ RevIewed by: Clriull'Ultire Dept: Costs: c~i.slon Action: l~gal N/1\ DOAS/F lnance Total X. Approved audget ~ Approved w/coodltlonc Purchasing N/A Den I td R hie Ho;wt. N/lI Curr~nt FY Coot lnu~ to: DlS N/A F~1(llng Source: ,. ACH AdvertIsed: Clip I tal I/I'P. A tt lIChmef'I t . : Other Date: Operlt Ing PCl~r : Other fu~ Not Requl red Affected Parties Approprlltlon Code: Notl fled CI ty Menao-r J/ot RequIred NOM ....'t.::: '''~.'''..-..... ._\ ..... "! . ......_-- '. -t.1 Conun~llt (1"2 Lo edit): l CCI\ILg b/6/~1 J CITY cur,U'llSSlUN HC;C;'l'li'H.J JUll~ LJ, 1 ' . 4AA6~&&~t&~~~~~&~&6&&&&&AA~&&&&&&&6&A&&&&&&A&&&&&&&&&&&6&&&&&&6&&&&&&&&&&&&&&&&& ITEM #33 - Appropriation of 2.3 million in the unreserved retained earnings of the Parking Fund to the Special Development Fund as undesignated fund balance, and the subsequent appropriation of 3.5 million of undesignated fund balance of the Special Development Fund to Project 315-4413 to be used for land acquisition Project 315-4413 has been established to provide funds for the City to acquire land for a combined City Hall upscale retail development complex. Staff has researched funds available and recommends the use of 2.3 million in parking funds and 1.2 million in accumulated earnings on Special Development Fund investments. The preliminary appropriation of parking funds to the special development fund is done to ensure that ownership of the property acquired is not attributed .to the parking fund and therefore, not subject to restrictions which might otherwise be imposed by the 1983 parking system revenue bonds. If approved, $162,000 of this appropriation will be used for the purchase of Lots 9, 10 and 11 of R. H. Padgett Subdivision already approved by the Commission on March 21 and April 4, 1991, in lieu of the direct parking fund transfer anticipated in the original purchase approval. A citizen raised concerns regarding recommendations of the Blue Ribbon Task Force for Clearwater Beach, including the use of parking funds for some of those improvements. Concern was also raised regarding these properties being off the tax roll until such time as they can be developed. A questi~n was also raised regarding whether or not we were meeting the obligations of the parking revenue bonds. It wap indicated the Commission could reallocate these funds in any manner they felt appropriate and that parking revenue bond obligations are being met. Con~issioner Regulski moved to approve the appropriation of 2.3 million dollars in unreserved, retained earnings of the parking fund to the special development fund as undesignated fund balance and the subsequent appropriation of 3.5 million dollars to undesignated fund balance of the special development fund to Project 315-4413 to be used for land a~quisition and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. ITEM #42 - Settlement of Reservoir No.2 Contract Dispute - City'S payment to ----------------------------------------------~-------------------------------- aaaaaaaaaaaaaaaaaaaaaaaa&aaaaaaaaaaaaaa&a&aaaaa&&aaaaaaaaaaaaaaaaaa&&aaaaaaaaaaa land acquisition 20 Files Retrieved File's Group Is: Everyone ,I ~ ":--..--.... ....... .... -....------::---~_,._.....,.l..-_.~~.-.:~~. .-"'-' .., . <.: ~'. ". . .":" ". .. ~. :.' . -. ~.. -"'~.~ ':.: ~~3.: :.~..~~..~:.. . ':...;~:.:.~. ~~:~. :~.:"~:>' ~:' . : : '.: ~.:~<~ :;.,,~. :.~~'..:.. . . ~ "; .': .,:. ;',~~, ,.,."..:.: " ~:<:,' : ;,', i.:',.; ."' 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':'f":'" I:.t::,...l...,..::~....:'.;-.;:~;,:.~\~..,I.'.i..:~.;.;; ':,~ .i....-\:,..:.:"'~.:...::;: :~ IJri.:;:"-'" t""" l' ~" .... ...... # ...."..;..~.,.,... !4t"~ .;.:; '..i'. ~~~ ,~fI';'~.~ (';l,~~',-~~""ft~"~\~\ ";~r.;': ';;~;"'\'4;~/_ 'J~1'.~"~('~... P,'. ":..~ ~...'.~l'. "f_.~.~.,..'\-:-O~ l..~..~I~ -:;, ;"::~/; f..,,; ~. i,..:-.,..r. '7'~. f'~,..,..."..,! .".....~;-'.~l'':'l!...\..:'':"'.:5~d.~~...."'f;h':'\1 ." ~ ".. Ii t :,..\, . ,:-.'. ,:~:.~..~ti:?:~tP/:..'7S~..; ',) :~~~ ~'.~:~~;: ;'.r:: :::'~'~:~"\:~ !~'.+::::::~":'~?;::::~i,';:;~~~'\i~.:;' .:~ :.;..,.;.,.;. :';:~.~P:;.;:;:~::;;.~ /~::~'Uig;':?~';::':;::.:.:J:.t"~:':'~.j';~~'~ !'i!;.i~ ~~.';,!;;~'~':'. r.:..: ,. : '\':.' , '.:: ..::': : ". .' I I I , \ lq.} ., U f, /1 ; .~ V AGENCY RESOLUTION No. 8 3 - 4 (C ~ A I~ g.3 -. I ) A RESOLUTION ADOPTING A SET OF RULES TO GUIDE THE Cor.lMUN ITY REDEVE LOP~.IENT AGENCY IN CO;.J DUCTI NG ITS BUSINESS AND MEETINGS. \\'HEREAS,the Community Redevelopment Agency '~as established by Resolution 81-68 of the City of Clearwater, pursuant to provisions of state law; and WHEREAS, the Commtmity Redevelopment Agency at the present time does not have a set of guidelines or rules to guide it in the conduct of business; and \\'HEREA~., the Commtmity Redevelopment Agency desires to adopt and implement such a set of rules or guidelines; - NOW, THERE FORE, BE IT RE SO L VE D BY THE Cm.fNUN 1 TY REDEVELOPr-IENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, IN SESSION DULY .~~D REGULARLY ASSEMBLED, AS FOLLOWS: That the Community Redevelopment Agency of Clearwater, Florida, hereby adopts' the fOlloh'ing rules to govern it in the considera tion of its affairs and business prese~-~d to it; RULE 1 The membership of the CommunitY' Redevelopment Agency shall be composed of the Mayor-Commissioner and Commissioners of the City of Clearwater. A quorum for the transaction of business bv the Redevelooment Agency shall consist of three (3)'members. . Presiding Officer of the Redevelopment Agency shall be the Mayor-Commissioner of the Clearwater City Commission, who shall be known as the Chairman of the Community Redevelopment Agency. In case of his absence, the Vice Mayor shall assume those responsibili ties, and if both are absent, the senior Commissioner in years of service shall preside. The Presiding Officer shall preserve order. The Presiding Officer may call to order any member of the Agency who shall violate any of the rules; and, the Presiding Officer shall decide all questions of order, subject to a majority vote on a motion to ap~eal. The chair shall recognize all members who seek the floor under correct procedure. Normally, members of the public shall be allowed to speak. All ques tions shall be stated and put by ~he Presiding Officer, and the Presiding Officer shall declare all votes. RULE 2 The City Manager of the City of Clear~ater shall also serve as the Executive Director of the Conmunity RcdevclopIilent Agency. The City Clerk shall serve as the clerk for the COr.Hilunity Redevelopment Agency and shall make correct minutes of the proceedings of each Redevelopment Agency meeting, and shall furnish copies - 1 - .2/ -o7C: -00 (7''. RULE 6 . . "1 '\ "- . of the minutes of each regularly schel uled met.;\.lng to the Chairman and ~o each me~ber at least twenty-four (24) hours prior ~o the next regular meeting. Su~h minutes shall stand confirmed at the regular meetIng of the Redevelopment Agency without the reading thercof in open meeting unless Some inaccuracy or error be pointed out by some member o:f the agency present,- and in such event, an appropriate correc~ion shall be made. Upon request, the City Manager wi]l cause the City Clerk to provide any member 'With transcJ:ibed excerpt of tapes of Redevelopment Agency meetings. RULE 3 All motions shall be made and seconded before debate. All resolutions and contracts require three (3) affir- mative vo;es for passage. RULE 4 A copy of each resolution '....hen passed shall be furnished by the City Clerk to the heads of all City departments concerned. RULE 5 The Community Redevelopment Agency shall rnee~ immediately prior to the conduct of business at City Commission meetings. Meetings of the COl'Tlmunity Redevelopment Agency shall be call- ed from time to time by the Chairman, Executive Director, or any two of the menbers. Every effort shall be made to pro- videat least twenty-four (24) hours public notice of any special meetings. Except for items advertised for public hearings, items -may be removed from the agenda and additional items may be added. The agenda may be Te-ordered. Minutes shall be taken and distributed by the City Clerk. The Communi ty Re deve lopmen t Agen cy sh all appo in tan\' committees or advisory boards as may be required for successful execution of Redevelopment Agency business. RU LE 7 According to applicable provisions of state law, no member shall voluntarily or involuntarily acquire any personal interest, direct or indirect, in any community redevelopment projec1:., in any property included or proposed to be included in any community redevelopment project, or in any contract or proposed contract in connection ''lith any cornmlmi ty redevelopment project. Should any menber involuntarily acquire any interest in a community redevelopment project, that interest shall be immediately disclosed in writing. If any member presently olms or controls or O\.;ned or con- trolled within the preceding two (2) years any in- terest, direct or indirect, in any property included or planned to be included in a community rcdevelopment project, that interest shall immediately be disclosed in writing, and such disclosure shall be e~tered upon the minutes of the City Commission of the City of Clear- ','ater. Any member disclosing such interest shall not participate in any decision of the Communit)' Redevelop- ment Agen~y affecting such property. - 2 - 110 RULE 13 RULE 8 . . The City officials whose regular attendance shall be required during the sittings of the Redevelopment Agency shall be the City Clerk'iExecutive Director and the City Attorney or their substitutes; but all or any other officers of the City shall be bound to attend any me~t- ings upon direction of the Executive Director or by special request of any member to the Executive Director. ,,----. RULE 9 No citizen, except those determined to be out of order and subject to removal by the Chief of Police, shall be excluded from any meeting of the Redevelopment Agency whether it be regularly scheduled or specially called. RULE 10 Any member of the Redevelopment Agency \'Jho voted \.Jith the prevailing side may move a reconsideration of any action of the whole Redevelopment Agency provided that the motion be made at the same meeting at, which the action was taken. A motion to reconsider shall be in order at any time (during the meeting at \vhich the action was taken) except when a motion on some other subject is pending. No motion to reconsider shall be made more than once on any subject or matter at the same meeting. Redevelopment Agency action may be rescinded by a 4/5 vote. The motion may be made by any member. RULE 11 The Executive Director, City Attorney, or any member may agenda an item. Any citizen may request to be agendaed, even though staff has assured petitioner that adverse action may result. The Chair cannot depa~t from the prescribed agenda but 'the Redevelopment Agency may do so by a 4/5 vote orby consensus in response to a suggestion from the Chair. RULE 12 These rules, or any of them, with the exception of pro- visions of state law, may be amended or temporarily suspended at any meeting of the Redevelopment Agency by an affirmative vote of four (4) members thereof. These rules are for the efficient and orderly conduct of the business ~f the Redevelopment Agen~y only, and no viola- tion of such rules shall invalidate any action of the Redevelopment Agency when approved by the majority vo te s . Any ~ember of the Redevelopment Agency making a motion or second shall address the Chairman and 3h'ait recogni- tion before speaking. The Chair must recognize any person who seeks the floor while entitled to it. The person making the motion is entitled to the floor first for debate. No one is entitled to the floor a second time on the same motion as long as any other member who has not spoken on the issue desires the floor. When a motion is made and seconded, it shall be stated by the Chairman before any debate shall be in order. Upon presentation of agenda items, members may ask questions and request additional information prior to making motions. For a member to discuss a matter \~hile no motion is pending requires permission from the Redevelopment Agency. ~lotions and any amendments can - 3 - ) be; RULE 14 , ' , ~. ' , ' '" ' ( J' . . be wi thdra,\'n lor modi fied by the maker ..\ any tim~ prior to the Chair stating the question on the motion; after that ti~e, the permission of the Redevelopment Agency majority must be obtained,. The Chair cannot close debate as long as any mellibcr who has not exhaus ted his right to debate desires the floor except by an affirma- tive vote of four (4) members. A tie vote shall consti- tute a continuance to the next regularly scheduled meeting. The following motions are not debatable: To adj ourn To lay on the table To take from the table For the previous question RULE IS I~dividuals speaking on non-agenda items shall be limited to five minutes. RULE 16 All material prepared by the Executive Director for the Redevelopment Agency shall be provided to the press and to the public via a special box in the City Clerk's office. Reports shall be made available in the Clerk's office for the public to check out and study at leisure. RULE 17 All mail to the Agency Chairman and members arrlvlng at City Hall received pursuant to law or in connection with the transaction of official business by the City of Cl e aTl"a ter s hall be cop ie d i mme dia te ly an d pro vi ded to the 0 ther members and to the press \"i th the fa llo'''ing excep tions: (a) Nail from governmental agencies, addressed to the Chairman clearly intended for the Chief Administrative Officer of the Redevelopment Agency which requires administrative action or staff action, will be delivered to the Executive Director with informational copy to the Chairman. " (b) ( c) Anonvmous letters will not be distributed. , Publications and lengthy agenda materials for other boards upon which the members serve Hill not be copied. Only the agendas will be circulated. Items of considerable length (such as petitions) will not be copied, but instead a memo will be distributed an- nouncing the availabili ty of. the i tern in the offi ce . Cd) (e) Nail \{i th the ''''0 rds s imi 1 a r to "Pc rson al" , "Confidential", or "For the Addressee Only" will be delivered unopened to the addressee. The Chairman and members receiving individually addressed mail will be responsible for replying, . asking the Executive Director or City Attorney to reply, or placing the matter on the agenda for formal Redevelopment Agency consideration. - 4 - It/t '.r'.' ;'1 f;,.;\.'.' ,",'. .,,'\::;I'~ ""-';,\ ~',<"""'7.(., .~.".'.~...~.(. ....",..: ~ ' -, . . ~') ,,"1 I The E.x~cutive Director will be responsible for seeing that mail addressed to the Chairman and other members is properly answered ,or placed on the agenda. '"'\ , ". . (!) PASSED AND ADOPTED iliis 20th day of January. A. D. '198'3. /5/ Charles F. LeCher Mayor-Commissioner Attest: /5/ Lucille Williams City Clerk /5/ James M. Calderbank Commis sione r /5/ Paul A. Hatchett Commissioner /5/ James L. Berfield Commissioner /5/ Rita Garvey Commissioner - 5.. ,I ,.'. .; b1~' , ,. \ ' " "', r \', I' .' ," , ' ,\" j" : I.' I \' ,. ---_...------...~-..~ ~c I&. Ie'; 11/9 2- Cfl-fJ- 1 CHAPTER 92-162 Senate Bill No. 1038 An act relating to community redevelopment areas; amending s. 163.380, F .S.; providing that community redevelopment real property may be Bold at a value determined to be in the public interest; providing guidelines for determining if the value is in the public interest; providing for approv- al by the governing body after a puLlic hearing under certain circum- stances; providing an effective date. Be It Enacted by the Legislature of the State of Floridn: Section 1. Section 163.380, Florida Statutes, is amended to read: 163.380 Disposal of property in community redevelopment area.- (1) Any county, municipality, or community redevelopm~nt agency may sell, lease, dispose of, or otherwise transfer real property or any interest therein ac- quired by it for community redevelopment in a community redevelopment area to any private person, or may retain such property for public use, and may enter into contracts with respect thereto for residential, recreational, commercial, industrial, educational, or other uses, in accordance with the community redevelopment plan, subject to such covenants, conditions, and restrictions, including covenants run- ning with the land, as it deems necessary or desirable to assist in preventing the development or spread of future slums or blighted arens or to otherwise carry out the purposes of this part. However, such sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the community redevelopment plan by the governing body. The purchasers or lessees and their successors and assigns shall be obligated to devote such real property only to the uses specified in the community redevelopment plan and may be obli- gated to comply with such other requirements as the county, municipality, or com- munity redevelopment agency may determine to be in the public interest, includ- ing the obligation to begin any improvements on such. real property required by the community redevelopment plan within a reasonable time. (2) Such real property or interest shall be solcl, leased, otherwise transferred, or retained at net-less-thftrHts-faito n value determined to he in the DubHc int~ for uses in accordance with the community redevelopment plan and in accordance with such reasonable disposal eempefl.tive-bidtling procedures as any county, mu- nicipality, or community redevelopment agency may prescribe. In determining the fmr value of real property AR being in the public interest for uses in accordance with the community redevelopment plan, the county, municipality, or community rede- velopment agency shall take into account and give consideration to the lon~-terITl benefits to be Rchieved bv the county. municioality. or community reoevelopment agency resulting from incurring ~hort-term lQ..sses or costs in the disposal of such real prooert)': the uses provided in such plan; the restrictions upon, and the cove- nants, conditions, and obligations assumed by, the purchaser or lessee or by the county, municipality, or community redevelopment agency retaining the property; and the objectives of such plan for the prevention of the recurrence of slum or 1 CODING: Words stfldten are deletions; words underlined arc additions. ...~.. ..:!....- I (F) eh.92-162 LA WS OF FLORIDA Ch.92-162 .....~W"'W~........ I blighted areas. In the event the value of 8\Jch real oroncrty being disposed of is for less than the fail' v111ue.' 8uch.d.isvpsition Shflll reQuire the approval of the govern~ body, which lWprovaI may only be ~iven {ollowing a duly noticed public hearin~. The county, municipality, or community redevelopment agency may provide in any instrument of conveyance to a private purchaser or lessee that such purchaser or lessee is without power to sell, lease, or otherwise transfer the real property with- out the prior written consent of the county, municipality, or community redevelop- ment agency until he has completed the construction of any or all improvements which he has obligated himself to construct thereon. Real property acquired by the county, municipality, or community redevelopment agency which, in accord!lnce with the provisions of the community redevelopment plan, is to be transferred shall be transferred as rapidly as feasible in the public interest, consistent with the carrying out of the provisions of the community redevelopment plan. Any contract for such transfer and the community redevelopment plan, or such part or parts of such contract or plan as the county, municipality, or community redevelopment agency may determine, may be recorded in the land records of the clerk of the cir- cuit court in such manner as to afford actual or constructive notice thereof. (3) Prior to disposition of any real property or interestthereiu in a community rede'/elopment area, any county, municipality. or community rede'vclopment agen- cy shall give public notice of such disposition by publication in a newspaper having a general circulation in the community, at least 30 days prior to the execution of any contract to sell, lease, or otherwise transfer real property and. prior to !.:':'c d~- livery of any instrument of conveyance with respect thereto under the provisions of this section, invite proposals from, and make all pertinent information available to, private redevelopers or any persons interested in undertaking to redevelop or rehabilitate a community redeve~:)TJment area or any part thereof. Such notice shall identify the lll'ea or portion thereof and shall state that proposals must be made by those interested within 30 days after the date of publication of the llotice and that such further information as is available may be obtained at such office as is designated in the notice. The county, municipality, or community redevelop- ment agency shall consider all such redevelopment or rehabilitation proposals and the financial and legal ability of the persons making such proposals to carry them out; and the county, municipality. or community redevelopment agency may nego- tiate with any persons for proposals for the purchase, lease, or other transfer of any real property acquired by it in the cornnlwlity redevelopment area. The county, municipality, or community redevelopment agency may accept such proposal as it deems to be in the public interest and in furtherance of the purposes of this part; however, a notification of intention to accept such proposal must be filed with the governing body not less than 30 days p: iur to any such acceptance. Thereafter, the county, municipality, or community redevelopment agency may execute such con- tract in accordance with the provisions of subsection (1) and deliver deeds, leases, and other instruments and take all steps necessary to effectuate such contract. (4) Any county, municipality, or community redevelopment agency may tem- porarily operate and maintain real property acquired by it in a community redevel- opment area for or in connection with a community redevelopment plan pending the disposition of the property as authorized in this part, without regard to the pro- visions of subsection (1), for such uses and purposes as may be deemed desirable, even though not in conformity with the community redevelopment plan. (5) If any conflict exists between the provisions of this section and s. 159.61, the provisions of this section govern and supersede those of s. 159.61. 2 CODING: Words strieken are deletions; words underlined Ilre additions, .'I.~~~ " ' <l-..~ ... ...;....,. ---'" -~... ~,..,. . . ,a.' "<<. ' ~.'" .<. " , ~. ,. .f. ,""".--:".~:""'''..'':\.'~~''''~'''''' Ch.92-162 LAWS OF FLORIDA "j I I , Ch.92-162 " ' Section 2. This act shall take effect October I, 1992. Became a law without the Governor's approval April 9, 1992. Filed in Office Secretary of State April 8, 1992. \ I, ";' , , \' , " .~ I) \' ~ \ ' ~:.. .,.~ t 1 }:~ ~ r I ., ' ,I 'I' " , .' .\ .:,:j' j(', " ~ ,'/,. \\,' .~ ! ;.' \' 'or' ' ;\, .,' '"r~ ~1 (.;;'~' :.~ \l'~"\ i::"~;: ;~~:\~ ~j"~'~:;':" ;} ::.~~. :,,~~:~::, .",." :- ".l.'; , ;'~i' '\" \ (;5, . : 1~'1 i ,~: L 1/1 J . .;i~ ',:,\ ,",,' "';': ..1 , . ~ , " -..:- ,',,' 3 CODING: Words stricken are deletions; words underlined are additions. . '~ .; 1 y:, ' ~..!.~:j\ } ,l '~ ,(,ji' \ '~ :-; (: ,\' ~~.. ~'- '''ft., " ' " ,\ . .;~ /'