11/15/1999 (2)
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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
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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.
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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.
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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.
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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.
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ITEM #4 w Executive Director (Assistant Cltv MansQer) Verbal ReDorts
None.
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ITEM #5 w Other Business - None.
ITEM #6 - Adlourn
The meeting adjourned at 9:64 a.m.
ATTEST:~~ 2:, )L.
, ,,' . City Clerk
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