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06/15/2009COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 6/15/2009- 9:00 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the June 1, 2009 CRA Meeting as submitted in written summation by the City Clerk. Attachments 3. CRA Items 3.1 Adopt mid-year budget amendments for the Community Redevelopment Agency for fiscal year 2008/09 and approve payment of $37,000 to Brighthouse Networks for undergrounding of utilities on Missouri Avenue from East Gateway Action Program funds. Attachments 4. Other Business 5. Adjourn Meeting Date:6/15/2009 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the June 1, 2009 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 4 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER June 1, 2009 Unapproved Present: Frank Hibbard - Chair/CRA Trustee, George N. Cretekos - CRA Trustee, John Doran - CRA Trustee, Paul Gibson - CRA Trustee, and Carlen Petersen - CRA Trustee. Also William B. Horne II - City Manager, Rod Irwin - Assistant City Manager/CRA present: Executive Director, Jill S. Silverboard - Assistant City Manager, Pamela K. Akin - City Attorney, Cynthia E. Goudeau - City Clerk, and Rosemarie Call - Management Analyst. 1. Call to Order The Chair called the meeting to order at 9:13 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the arch 30, 2009 C tin as submitted in written summation by the City Clerk. Trustee Petersen moved to approve the minutes of the March 30, 2009 CRA Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and passed unanimously. 3. CRA Items 3.1 Approve Development Agreement between the C RA and Rule of Clearwater, Florida, concerning the Ilinis Casanova prof ct, 11 CI v land Street, delineating the terms and conditions for the provision of certain economic assistance by the C RA. Rule LLP is developing the "Bell ini's `Casanova"' project located at 811 Cleveland Street (former Fiore's Restaurant). The Project is a full renovation and expansion, with outdoor dining, of the existing structure to create a full-service, 5835 sq. ft. fine dining restaurant with valet parking. Flexible Development Approval was Community Redevelopment Agency 2009-06-01 Item #11 Attachment number 1 Page 2 of 4 issued by the Community Development Board (CDB) on May 16, 2009 to permit development of the Project. This agreement provides CRA payment of certain development and equipment costs for the project, reimbursement to the owner for the cost of utility undergrounding across the public right-of-way as well as on the project site to maximize development potential and facilitate redevelopment, and payment of building permit fees for the project. The purpose of this Development Agreement is to secure economic assistance through the Community Redevelopment Agency (CRA) to increase the economic feasibility of a project which supports the implementation of the City of Clearwater's "District Vision" for the revitalization of the CRA area, and to further the implementation of the Downtown Redevelopment Plan by the development and construction and operation of the Project to enhance the quality of life, increase employment and improve the aesthetic and useful enjoyment of the downtown. CRA staff has been working with the owner of the property to incentivize a full- service restaurant into the Fiore's building, via CRA assistance that would generally "mirror" Cleveland Street District incentive programs and the DDB Restaurant Relocation Program, but also including some more traditional CRA commercial redevelopment incentives: $ 85,000 for restaurant build-out and/or permanent fixtures ; $ 43,500 for utility undergrounding, across Myrtle Avenue and the Site, by Progress Energy/Verizon/developer, as a site redevelopment preparation cost; $ 15,000 for facade Improvements to insure a "unified "architectural treatment on the entire development; $ 3,500 to pay building permit fees; $3,000 for outdoor furniture grant. Due to the location of the property just beyond the "edge" of the area where our Cleveland Street District incentives are available, but also because quality redevelopment of this strategic corner with high quality restaurants is consistent with and facilitative of our downtown retail/restaurant strategy, staff believes it is appropriate for the CRA to incentivize this type of project from the Redevelopment Fund. The current project is one phase of a planned, coordinated redevelopment of the block, with the first phase including the Caf6 Supreme/Avis project. The incentives are intended to be consistent with the restaurant recruitment and facade improvements in the Cleveland Street District, with two exceptions: 1) The DDB program limits the build-out grant to $50,000, but the size (6,000 +/- sq. ft. compared to the average 2,500 sq. ft. restaurant in the CSD) and extent of investment in the project (+/- $1.5 M) indicates a higher dollar participation is appropriate in this case 2) the utility undergrounding and reimbursement of Community Redevelopment Agency 2009-06-01 Item #21 Attachment number 1 Page 3 of 4 building permit fees are a normal CRA redevelopment site preparation and incentive expenses. Additionally, the ability of the owner to self fund and move forward with the project at this time of economic downturn---with the assistance delineated above---is very helpful to our redevelopment momentum and is another reason to support our investment. The incentives are to be structured as a five-year "forgivable" loan, secured with a performance mortgage, with 20 % "forgiven" annually as long as the property continues to be used as a full-service, white tablecloth restaurant. If it ceases to be so operated during the five-year period, the owner would have to reimburse the CRA for the outstanding balance. Similarly, if the property was sold during the five-year period, the outstanding balance would become due and payable to the CRA, unless the CRA agreed to the assumption of the development agreement by the new owner. The source of funds would be the CRA Redevelopment Fund. A concept rendering and site plan is attached to the Development Agreement and is for your information/ use. The design is to be as an exhibit to the agreement. The Development Agreement requires that any substantive change to the design or site plan is to be subject to CRA approval. In response to questions, CRA Executive Director Rod Irwin said the utility undergrounding is for the entire block. Rule LLP is investing $1.6 million in redeveloping this critical parcel in the CRA. Developer Elias Louis Leousis said the site plan incorporates an outdoor terrace. The project envisions a caf6 style environment with limited outdoor seating on Cleveland Street, which will be driven by demand. The original plan did include planters encroaching the sidewalk but were no longer part of the site plan. Corrected renderings will be provided. Concerns were expressed regarding the 5-foot walkway requirement on the other side of Myrtle Avenue. It was stated that future outdoor seating must meet requirements as stated in ordinance at that time. Mr. Irwin said most of the business will take place after 4:30 p.m. and that parking spaces at the Municipal Services Building (MSB), Station Square, and Garden Avenue garages would be available as flex space. It was stated that a permit to use parking at MSB, Station Square and Garden Avenue for valet would not be needed if used after hours. Liability above what is required is not needed. Mr. Leousis said the restaurant is expected to open before the holidays and will seat 200-250 individuals. Rule LLP will pay for undergrounding costs that exceed $43,500. There will be an entrance on Cleveland Street and on the side. Community Redevelopment Agency 2009-06-01 Item #31 Attachment number 1 Page 4 of 4 In response to questions, Planning Director Michael Delk said to achieve an urban environment, there are no setbacks in downtown. The valet drop-off point will initially be in the rear. Trustee Doran moved to approve a Development Agreement between the CRA and Rule LLP of Clearwater, Florida, concerning the Bellinis Casanova project, 811 Cleveland Street, delineating the terms and conditions for the provision of certain economic assistance by the CRA. The motion was duly seconded and passed unanimously. 4. Other Business - None. 5. The meeting adjourned at 10:00 a.m. Chair Community Redevelopment Agency Attest City Clerk Community Redevelopment Agency 2009-06-01 Item #41 Meeting Date:6/15/2009 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Adopt mid-year budget amendments for the Community Redevelopment Agency for fiscal year 2008/09 and approve payment of $37,000 to Brighthouse Networks for undergrounding of utilities on Missouri Avenue from East Gateway Action Program funds. SUMMARY: Amendments to the revenues of the operating budget recognize the decrease of $3,259 in TIF received for FY08/09, as well as the increase of $5,000 in Other General Income associated with sponsorships for the April 26th event of Ciclovia. There are amendments to the operating expenditures as shown. Under Transfers Out, we transfer revenue received from the Downtown Development Board (DDB) in the amount of $2,000 to the East Gateway project line item 388-94849 to cover expenses associated with Ciclovia. All expenditure activity reflected in the Capital Projects Fund is for the period ending April 30, 2009. Staff is also requesting approval of funding in the amount of $37,000 to Bright House Networks from the CRA East Gateway uncommitted project line item (388-94849) to retroactively pay for undergrounding approximately 1200' feet of cable along the west side of Missouri Avenue crossing Cleveland Street. As part of the East Gateway Five-Year Action Program, staff identified areas in the East Gateway that needed additional streetlights. As part of this project, this section of Missouri Avenue was identified as an area that still had overhead cables in spite of the existence of underground conduit. Considering the safety issues as well as the ragged appearance of the old poles and overhead wires, Paul Bertels requested in a letter to Scott Creasey that BrightHouse bury approximately 1200' feet of cable along the west side of Missouri crossing Cleveland, Pierce and Franklin Circle. Bright House conducted the work (directional bore along the west side of Missouri and two directional bores of Missouri at Pierce and Franklin including permitting, cabling, splicing and wreckout with pole removal) and requested $37,000 in city funding. As this project is part of the approved East Gateway Action Program under Safety and Security Action Items: S.4 Install street lighting to eliminate identified dark spots in East Gateway (CRA approved in May 2008), staff recommends paying this amount out of the East Gateway project line item. Appropration Code Amount Appropriation Comment 388-94849 $37,000 Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager ED 5) Clerk 6) City Manager 7) Clerk Cover Memo Item # 2 Attachment number 1 Page 1 of 2 Community Redevelopment Agency Mid Year Review For the Seven Month Period of October 1, 2008 - April 30, 2009 2008109 Revenue/ Mid Year 2008109 Adopted Expenditures Proposed Amended Amend Budget To Date Amendments Budget Ref Revenues & Transfers In Tax Increment Financing Revenues 338930 Pinellas County 381115 City of Clearwater 381116 Downtown Development Board Total TIF Revenues Other Revenues 361101 Interest Earnings 369901 Other General Revenue Transfers In 381782 DDB Administration 381782 Loan Payment From DDB Total Revenues & Transfers In Expenditures & Transfers Out Operating Expenditures 530100 Professional Services 540200 Document Reproduction 540300 Telephone Variable 540700 Postal Service 541500 Garage Variable 542300 Gas, Water, Sanitation 542500 Postage 543100 Advertising 543200 Other Promotional Activities 543400 Printing & Binding 547100 Uniforms 547200 Employee Expense-Travel 548000 Other Services 550100 Office Supplies 550400 Operating Supplies 557100 Memberships and Subscriptions 557300 Training and Reference 581000 Payments to Other Agencies-DDB 582000 Aid to Private Organizations Total Operating Expenditures Transfers Out 590200 General Fund- Administrative 590800 East Gateway Project (94849) 590800 Cleveland Street Maintenance (99968) 590800 Cleveland Streetscape Phase II 590800 Restricted County TIF Funds 590800 Fagade Improvement Grant Fund 590800 Downtown Redevelopment Fund 590800 Affordable Housing Projects (94851) 590800 Retail Attraction/Assistance (94852) 590800 Cleveland Street Branding (94852) Total Transfers Out 962,643 961,161 (1,482) 961,161 932,254 930,594 (1,660) 930,594 148,146 148,029 (117) 148,029 2,043,043 2,039,784 (3,259) 2,039,784 100,000 22,390 - 100,000 2,198 4,998 4,998 57,480 41,378 57,480 7,848 - 7,848 2,208,371 2,105,750 1,739 2,210,110 76,900 134 76,900 10,000 2,417 10,000 1,500 566 1,500 2,000 32 2,000 3,600 - 3,600 418 656 656 10 50 50 15,000 (1,000) 14,000 2,500 216 2,500 500 72 - 500 140 150 150 6,500 1,149 - 6,500 2,200 2,175 2,200 1,000 3 1,000 3,000 347 3,000 4,000 1,483 4,000 4,000 1,306 - 4,000 148,146 148,029 (117) 148,029 6,000 6,000 - 6,000 286,846 164,497 (261) 286,585 295,067 172,123 - 295,067 140,000 140,000 2,000 142,000 20,000 20,000 - 20,000 173,487 173,487 173,487 962,644 962,644 962,644 50,000 50,000 50,000 140,327 140,327 140,327 25,000 25,000 25,000 100,000 100,000 100,000 15,000 15,000 - 15,000 1,921,525 1,798,581 2,000 1,923,525 Total Expenditures & Transfers Out 2,208,371 1,963,078 1,739 2,210,110 Excess of Revenues & Transfers In Over Expenditures & Transfers Out Budget Amendments to Operating Budget Item # 2 Attachment number 1 Page 2 of 2 Community Redevelopment Agency CRA Capital Improvement Projects Mid Year Review For the Seven Month Period of October 1, 2008 - April 30, 2009 Project # Description Budget 101112009 Mid Year Proposed Amendmnts Amended Budget Actual Expenditures Project Open To Date Encumbr Available Balance Amend Ref 388-92269 Downtown Streetscape 1,595,702 (1,574,000) 21,702 20,920 782 1 388-92275 Downtown Streetscape Phase II 1,574,000 1,574,000 28,388 500 1,545,112 1 388-93405 Downtown Boat Slips 500,000 500,000 500,000 0 388-94714 Downtown Redevelopment 2,016,616 (308,066) 1,708,551 19,600 1,688,951 2 388-94765 IMR Development 99,271 99,271 4,660 94,611 388-94847 Clearwater Centre-1100 Cleveland 1,040,000 1,040,000 505,917 534,083 388-94848 Station Square Park 800,000 800,000 800,000 0 388-94849 East Gateway 290,384 2,000 292,384 7,552 284,832 3 388-94851 Affordable Housing 225,000 225,000 225,000 388-94852 Retail Attraction/Assistance 265,000 265,000 139,857 67,143 58,000 388-94853 Cleveland District Branding 76,000 76,000 3,671 72,329 388-94855 Cleveland Auto EPA Loan 350,000 350,000 298,827 48,087 3,087 388-94856 Marriiott Residence Inn 178,000 178,000 178,000 0 388-99881 Clearwater Auto Site - General 187,659 187,659 1,170 186,489 388-99963 Economic Development Incentive 153,861 153,861 16,200 137,661 388-99968 Cleveland Street Maintenance 50,676 50,676 9,813 40,863 388-99979 Historical Facade Program 212,165 212,165 30,078 182,087 388-99886 Mediterranean Village 259,538 259,538 37,572 5,611 216,355 Total 8,299,872 (306,066) 7,993,806 2,602,225 121,340 5,270,241 Budget Amendments to Projects To record a budget transfer of $1,574,000 in CRA revenue from project 388-92269, Downtown Streetscape to establish a new project 388-92275, Downtown Streetscape Phase II as approved by the CRA on November 3, 2008. To reflect a budget decrease reflecting the fiscal year 2007/08 year end journal entry to transfer $308,065.79 back to the CRA operating fund to cover the year end operating deficit due to the funding of the Clearwater EPA loan authorized by the CRA in fiscal 2007/08. DDB Reimbursement to CRA for East Gateway Project/Ciclovia Expenditures Item # 2