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11/15/1999 (2) :. l~' : .' ~. " '~ COMMUNITY REDEVELOPMENT AGENCV MEETING CITV OF CLEARWATER November 16, 1999 Absent: Brian J. Aungst Chair Ed Hooper Trustee J. B. Johnson Trustee Ed Hart Trustee Glenn Warren Ex-Officio Robert Clark Trustee " Present: Also Present: Michael J. Roberto Bob Keller Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan City Manager Assistant City Manager/CRA Executive Director City Attorney City Clerk Board Reporter The Chair called the meeting to order at 9:40 a.m. at City Hall. To provide continuity for research. items are in agenda order although not necessarily discussed in that order. o ITEM #2 - Approval of Minutes Trustee Johnson moved to approve the minutes of the October 18, 1999, meeting, as recorded and submitted in written summation by the City Clerk to e6eh Trustee. The motion was duly seconded and carried unanimously. ITEM #3 - Authorize staff to exercise the Ootion to Purchase the Dimmitt property (two parcels, 3.48 acresl fronting on Cleveland Street, and conduct inspections, tests, environmental & any other investigations to determine suitability for intended use of the property On December 10, 1998, the City Commission approved the purchase of real property, known as the Dimmitt Property, for the Town Pond Retention Project. The City Commission also approved the Option to Purchase parcels A & B of the Dimmitt Property, which fronts Cleveland Street. The first 1 80- day option had no cost to the City. Subsequently the City Commission assigned the option to the CRA. On June 3, 1999, the CRA ICommunity Redevelopment Board) approved extending the Option to December 5, 1999, at a cost of $50,000 to allow more time for the CRA to market the property. The CRA must notify the Seller before the Option expires of its intent to purchase. On October 18, 1999, the CRA authorized the issuance of a RFP/Q IRequest for Proposals and Qualifications); on October 21, 1999, the City Commission affirmed the authorization. The RFP/Q refers to commercial, office, residential, and -0 mixed land uses. The deadline for responses is November 22, 1999. mcr1199 l' 11/15/99 ,.,1 J .' Upon eRA and City Commission authorization to exercise the Optfon to Purchase, the eRA has 60 days to conduct inspections, tests, environmental and any other investigations to determine the suitability for the intended use of the property. Upon a positive conclusion of the inspection process, the CRA has 30 days to close on the property. The agreement allows the assignment of the Option to Purchase to a proposed developer, or the CRA may purchase the property for land banking purposes. The two parcels cost $1,1 89,81 8. Staft recommends the purchase. CRA Executive Director Bob Keller stated a companion item will be presented to the City Commission. He apologized this request precedes the bid deadline. Due to the Option to Purchase's expiration date, and the property representative's unwillingness to extend the option, Mr. Keller requested the Trustees exercise the option on the Dimmitt property. Exercising the option does not limit uses of the property. It is proposed the CRA borrow from the City the funds needed for the purchase. Financial Services Administrator Margie Simmons said a 10-year City loan at 6.5% interest would require repayment at an annual rate of $167,000, which the eRA can afford. Staff is exploring other financing opportunities. tV) .~;~ Mr. Keller said Phase I and II environmental reviews of the property only uncovered a tank, which is of minor concern. If the 60wday inspection process does not uncover major problems, closing can occur in early March 2000. In addition to potential private development, this property is the top-ranked site for the new Main Library. In response to a question, Mr. Keller said the seller is responsible for all issues related to tenants. He said tenants would have 90 days to vacate. As proposed, the eRA will take possession of an empty property and not be in a position to evict anyone. In response to a question, he said the $50,000 cost of the option is not refundable. Mr. Keller said the purchase price was determined in 1998. Since then the property's value has increased. Mr. Keller said if the City determines the property is unsuitable for use due to environmental faults, at closing the seller could either cure the problem or lower the purchase price by 2 % to cover the costs of the environmental attorney representing the CRA. Trustee Johnson moved to authorize staff to exercise the Option to Purchase the Dimmitt property (2 parcels, 3.48 acres) fronting Cleveland Street at a cost not to exceed $1,189,818, plus closing costs of approximately $2,000; conduct inspections, tests, environmental, and any other investigations to determine the suitability for the intended use of the property; and authorize an intergovernmental loan between the CRA and the City to provide funding to purchase the property, such loan to come from the City's Central Insurance Fund at a term not to exceed 10 years, at the cash pool interest rate, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. ,J mcr1199 2 11/15/99 ~\"'~~::.." c,~~,' , '. . ':' ~:.,: ~~ +: ",Jr .\!i."< :'~:':""!':."'" ~f,: :.:,~,'(;, . ~ ' , , :;~ l ~,. ),,~... n~) . -...'.....'...._.'" ..... .... ". .,.. 'i. .. ' ", "" " "r r'. :. +.. ,'. J' ....,'; i ~,.. '. IJ":>,:",.., \~':'" " ,'" .." ~J:'{~': .~I"~~ ,'.""10" ~:.. y . .,' , , ;.." " ~~: ,,).J ., t"" ~i,,} .r! . ~t:. '> ~ ;'::: ~,:.. ~~"..:. C .',1; {:" "'0' ' " .I. '.' ' j"", , 'J' ~; ., il (:':0>""'1 ' . . ~ . ",'>'''' '. !.'<.- '" .'. '.. ; . ',' ':'J >. ' . " :.. \;::~'\'" H,: :',,:'::, ,~ '\:. "', ~ : -F',." I :> ',. . ", J " ITEM #4 w Executive Director (Assistant Cltv MansQer) Verbal ReDorts None. , .. ITEM #5 w Other Business - None. ITEM #6 - Adlourn The meeting adjourned at 9:64 a.m. ATTEST:~~ 2:, )L. , ,,' . City Clerk I .~IL\ ---- Q. " ' mcr1199 3 11/15/99