05/27/1982i?
F.°. i
a
CITx CdMMLS3= SPECIAL VORK SESSION
May 27, 1982
The City Commission of the City of Clearwater met in a special work
session at the City Hall, Thursday, May 27, 1982, at 2:05 p.m., with the
following members present:
Charles F. LeCher
Paul A. Hatchett
Rita Garvey
Also present were:
Anthony L. Shoemaker
Frank Kowalski
Cyndie Goudeau
Mayor-Commissioner
Vice-Mayor/Commissioner
Commissioner
City Manager
Chief Assistant City Attorney
Deputy City Clerk
The mayor called the meeting to order.
The purpose of the meeting was to discuss proposed programs for
Housing Mortgage Revenue Bonds and Industrial Development Bonds.
Concerns were expressed regarding the impact of similar Federal and
State programs on the City of Clearwater's plans. The representative of
William R. Hough and Company stated there would only be between one and two
million dollars available for Clearwater and therefore there would be very
little impact. Discussion ensued regarding the State and Federal proposals
which are uncertain at this time.
Regarding the single-family mortgage revenue bonds, it was stated that
the tax exemptions are limited to first-time home owners unless the home to
be purchased is in a blighted area. Discussion ensued regarding whether or
not even under this plan it is feasible for persons in low income brackets
to buy a home. It was stated that the market rests in those with incomes
of $25,000 - $33,000 per year. It was stated that any of the single-family
revenue mortgage bonds targeted for the Downtown Area would come in the
form of condominium type units, townhouses, and for duplexes. The home
must be the principal residence. It was stated it was important to define
the philosophy as to whether or not you were trying to renovate and
rehabilitate vs. providing housing for low income people.
There are no monies available in the single-family program until the
January, 1983. There are monies available in the multi--family programs.
Any multi-family units financed through this program are required to remain
rental for twenty years.
Discussion ensued regarding the impact the housing bonds would have on
mortgage money available and on the sale of homes that do not qualify for
the revenue bonds. Due to the limited number of homes this program would
effect, it is felt there would be little impact.
The safety measures for insuring the finacial feasibility of these
projects were explained. The City would not put forth any money whatsoever
and in the program for single family, there are three levels of safety:
mortgage insurance; a pool of mortgage money; and a reserve fund. There
must be a project approved before the bonds are sold. There is no cost to
the City except for staff time,.
More information will be coming forth before a final decision is made
regarding the City'r participation in these programs. The general feeling
was the City should participate. Multi-family projects would be emphasized
in the Downtown area and the single-family program throughout Clearwater.
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The City Manager requested direction from the Commission regarding
restrictions of uses for Industrial Development Bonds.
There are projects authorized by Florida Statutes; but some of the
definitions put forth are not clear; i.e. "tourism facilities" - does a
hotel qualify as a tourism facility? Also discussed was whether or not the
City wished to limit the areas in which Industrial Development Bonds could
be used.
Discussion ensued regarding the pros and oons of the Industrial
Revenue Bonds and whether or not there was risk to the City.
It was stated that in proposed legislation for IDB's to remain tax-
exempt after 1985 a contribution would be required from the sponsoring
City. The type of contribution has not been designated.
Concerns regarding the screening process and how to insure the proper
applicants have the bonds approved were discussed. The question was also
raised whether or not an application fee could be charged. It was stated
that the County has a $10,000 non-refundable application fee for those
individuals applying for IDBs.
. Commission directed staff to develop guidelines and criteria and bring
back for approval.
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Meeting adjourned at 3:28 p.m.