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06/01/2010COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER June 1, 2010 Present: Chair/Trustee Frank Hibbard, Trustee George N. Cretekos, Trustee John Doran, Trustee Paul Gibson, and Trustee Bill Jonson. Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City present: Manager, Rod Irwin - CRA Executive Director/Assistant City Manager, Pamela K. Akin - City Attorney, Cynthia E. Goudeau - City Clerk, and Rosemarie Call - Management Analyst. Unapproved To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 1. Call to Order - Chair/Trustee Frank Hibbard The meeting was called to order at 9:00 a.m. at City Hall. 2. CRA Items 2.1 Approve a Contract For Purchase of Real Property with Gilbert G. Jannelli, to purchase real property described as OVERBROOK SUBDIVISION, Block 3, Lots 1, 2, 3 and 4 for the sum of $296,000 plus estimated expenses in an amount not to exceed $7,000 for a boundary survey and transaction closing costs and authorize appropriate officials to execute same, together with all documentation required to effect closing, and establish project 388-94862 (CarPro Site) in the amount of $325,000 to cover the costs of property purchase and demolition by transferring $325,000 from project 388-94714 (Downtown Redevelopment). In December 2009, the Economic Development and Housing Department (ED) identified 1359 Cleveland Street as a candidate for participation in the city's Brownfields program given the site's outstanding environmental issues, specifically groundwater contamination, and available sources of funding to address those issues. Staff outlined a strategy to purchase the CarPro site for the purposes of environmental remediation, the removal of a non-conforming land use, and potential future redevelopment of the site. The subject property is located on the southwest corner of Cleveland Street and S. Evergreen Avenue in the East Gateway District of the Community Redevelopment Agency (CRA) boundaries and referred to as the CarPro site. Community Redevelopment Agency 2010-06-01 At least four different phases of environmental site assessment have been conducted prior to May 2007 at this site. These investigations have identified potential adverse environmental conditions within the property boundaries of the CarPro site and the two adjacent properties to the west. Access to these properties will be necessary to conduct and complete the remediation at the CarPro site. Staff has determined through discussions with the property owners that obtaining access easements to those properties, instead of seeking to purchase them, to be the best course of action. Based on previous environmental assessments, the City's environmental consultant, CardnoTBE, has estimated the general cost for implementing the preferred remediation strategy will range from $595,000 to $680,000. The assessment portion of this estimate (up to $190,000) will be covered by the 2009 American Recovery and Reinvestment Act (ARRA) assessment funds and existing Brownfields grants. The remediation portion of this estimate (up to $492,000) will be funded through the Brownfields Cleanup Revolving Loan Fund (BCRLF) and the sale of the City's Voluntary Cleanup Tax Credits. These costs are preliminary and will be more definitive once assessment is completed. The 2009 ARRA assessment funds and BCRLF both have strict timelines that must be met. It is necessary to spend 35% of granted ARRA (or stimulus) funds by July 2010. BCRLF dollars expire in June 2010 and must be returned to the Environmental Protection Agency (EPA) if not expended. Staff has contacted EPA to inform them of the contract to purchase and have agreed to work with the City/CRA on these timelines as we progress with this project. Staff recommends the CRA purchase the CarPro site utilizing the Downtown Redevelopment Fund as the source of funds. An appraisal was performed by K. Mitchell Caldwell, MAI and concluded that the market value of the proposed acquisition is $280,000. As a condition to closing, an access easement will be required from the two adjacent property owners to be able to conduct the necessary examination and remediation in an acceptable manner. In addition to the acquisition of the CarPro site, it is estimated that the CRA will need to expend approximately $20,000 to complete the demolition of the structure after closing. The benefits of this project are as follows: - Addresses documented contaminated site and the associated impediments to redevelopment (i.e. financing and remediation) of the site and immediately adjacent properties. - Enhances the environment through clean-up of a contaminated property. - Stimulates investment in a particularly blighted area of the East Gateway District. Community Redevelopment Agency 2010-06-01 2 - Allows expenditures of federal recovery funds (35% of total award of $400,000, or $140,000, must be spent by July 2010). - Removes a non-conforming land use and implements several action items in the East Gateway Five-Year Action Program addressing specific community concerns in this area, i.e. business environment and neighborhood appearance. Funding for the acquisition, closing costs and demolition are recommended from the CRA Downtown Redevelopment project 388-94714. In response to questions, Economic Development and Housing Director Geri Campos Lopez said addressing the environmental contamination on the CarPro site and the adjacent properties will make all 3 properties more marketable for redevelopment. If redeveloped, it will increase the city's tax base. It is unlikely a private property owner can afford to finance the environmental remediation. If the city does not purchase the property and address the environmental issues, the clean-up will not occur and the contamination will get worse. The BCRLF funds are monies given to the city by EPA that are loaned to a separate entity to finance environmental clean-up of brownfield properties. Staff was directed to provide tax information for the Crum Center property. Trustee Bill Jonson moved to approve a Contract For Purchase of Real Property with Gilbert G. Jannelli, to purchase real property described as OVERBROOK SUBDIVISION, Block 3, Lots 1, 2, 3 and 4 for the sum of $296,000 plus estimated expenses in an amount not to exceed $7,000 for a boundary survey and transaction closing costs and authorize appropriate officials to execute same, together with all documentation required to effect closing, and establish project 388-94862 (CarPro Site) in the amount of $325,000 to cover the costs of property purchase and demolition by transferring $325,000 from project 388-94714 (Downtown Redevelopment). The motion was duly seconded and carried unanimously. 3. Other Business - None. Community Redevelopment Agency 2010-06-01 3 4. Adiourn The meeting was adjourned at 9:27 a.m. - G' Chair Community Redevelopment Agency Attest p M EN 7. ATFR IQ PRATE ?00 Ci Clerk --=?Z0 ooze ??°?,_ J ' 00, /,'????rrtrrr? F O' D CRA 2010-6-1 4