11/29/2010COMMUNITY REDEVELOPMENT AGENCY
AGENDA
Location: Council Chambers - City Hall
Date: 11/29/2010- 9:00 AM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the September 20, 2010 CRA Meeting as submitted in written summation by the
City Clerk.
Attachments
3. CRA Items
3.1 Approve the Memorandum of Agreement between the Community Redevelopment Agency (CRA) and
Ruth Eckerd Hall, Inc. Inc, a Florida Not-for-Profit Corporation, for the provision of an expanded and
enhanced schedule of programming at the Capitol Theatre in the Cleveland Street District until facility
renovations begin; approve a $148,000-per annum appropriation to Ruth Eckerd Hall, Inc. to underwrite
the cost of the expanded, interim program schedule; approve a modification to the previously-approved
CRA contribution schedule for the Capitol Theatre reconstruction to fund the grant for interim
programming and authorize the appropriate officials to execute same.
Attachments
3.2 Authorize transfer of $1,799,927.37 from project 388-92275 to the City's project 315-92275 for the
Community Redevelopment Agency's portion of the Cleveland Street Streetscape Phase II construction
project.
Attachments
4. Adjourn
Meeting Date: 11/29/20 10
Community Redevelopment
0 Agency Agenda
Council Chambers - City
Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the September 20, 2010 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 7
COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES
CITY OF CLEARWATER
September 20, 2010
Present: Chair/Trustee Frank Hibbard, Trustee George N. Cretekos, Trustee John
Doran, Trustee Paul Gibson, Trustee Bill Jonson, and William B. Horne II -
City Manager.
Also Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City
present: Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and
Patricia O. Sullivan - Board Reporter.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
1. Call to Order - Chair Frank Hibbard
The meeting was called to order at 9:13 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the September 7, 2010 C Meeting as submitted in
written summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the September 7, 2010 CRA
Meeting as submitted in written summation by the City Clerk. The motion was duly
seconded and carried unanimously.
Community Redevelopment Agency 2010-09-20 Item #11
Attachment number 1
Page 2 of 7
This property has presented an acquisition opportunity for the CRA at this time as
the property has recently been listed for sale by the Society. The rationale for this
acquisition is that the addition of this parcel to the CRA prime future development
site the Town Lake parcel, materially increases the likelihood that pivotal site will
realize the development objectives of the CRA and City in the Downtown
redevelopment agenda, a mixed-use residential/retail development with sufficient
density to assist in the revitalization and reinvigoration of the Downtown.
The development of rental, workforce housing for young professionals and urban
residents not able to access the "for sale" market has always been seen as the
most potentially successful scenario for the site. In order to get the quality of
design, retail component and appropriate amenities, however, a project size of
200 units +/- has been sought by development interests. This threshold allows for
on-site management and leasing, as well as a distribution of fixed and operating
costs across a sufficient base to generate an acceptable per unit cost.
However, the constraints of the site under these development parameters
necessitate structured, expensive parking integrated with the residential
component, generating an expensive construction cost per square foot that
challenges the ability for projects to achieve profitability with supportable rent
levels. This was an issue with the Miles Development project, and has been cited
as a problem by other developers who have contemplated a project of the density
and quality desired by the CRA. It will likely be an issue of greater magnitude in
the immediate future development environment.
Acquisition/availability of the St. Vincent de Paul parcel has always been seen as
a means to increase the feasibility of development, by allowing a better
segregation of uses, less costly construction costs, and better site functionality.
For example, the additional acre along Cleveland Street could allow for the de-
coupling of the parking and the residential structures a significant cost
savings, and more opportunity to accommodate required amenities at a lesser
cost.
However, to date the property has not been available for purchase. CRA
acquisition and consolidation of the parcel with the existing Town Lake property
would allow the CRA to take a much more attractive project site to market and
significantly heighten our prospect of achieving our development objective for the
Community Redevelopment Agency 2010-09-20 Item #21
Attachment number 1
Page 3 of 7
site.
The purchase price of $587,000 represents the mid- point between appraisals of
$600,000 and $575,000 obtained on the property. The listing price was
$660,000. Because the Society has the need and desire to find a relocation site for
the Thrift Store location as a major concern and an acceptable alternative has not
yet been found, a companion lease would allow the Society to lease back the
property for $1 per annum, triple net, with the CRA held completely harmless, for
up to one year. An additional lease period of six (6) months could be exercised, at
the option of the Society, if relocation space had not been located within one year.
That extension would be at a triple-net rate of $3/square foot. No further extension
would be allowed.
Since the CRA does not anticipate the need to occupy the site over the next
eighteen months, accommodating the Society would allow us to close the
transaction without negative impact to the CRA. Should a development interest
come forward in the interim, we would have ownership and could allow
development planning to move forward with surety.
Funding for this acquisition is recommended to be from the CRA Redevelopment
Fund and the acquisition cost was included in the updated Five Year Financial
Plan presented in conjunction with the Fiscal Year 2010/2011 CRA Budget. If
approved, a new project 388-94867, entitled St Vincent de Paul Property
Acquisition, will be established for this purchase transferring $625,000 from
project 388-94714 to the new project.
Staff recommends approval of the Contract for Purchase and the lease contract.
In response to questions, Assistant City Manager Rod Irwin said the city's
redevelopment plan designates the area as the Town Lake Residential
District. Although a residential-retail component is anticipated in the district, staff could
bring forward other potential uses for the CRA's consideration.
Trustee John Doran moved to approve a Contract for Purchase of Real Property with
Society of St. Vincent de Paul Council of Upper Pinellas County, Inc., to purchase real
property described as SARAH MCMULLENS SUBDIVISION, All of Block 5 North of
Park Street, LESS the East 50m feet and LESS road on the North, according to the plat
thereof as recorded in Plat Book 1, Page 41, Public Records of Pinellas County, Florida;
together with MAGNOLIA PARK SUBDIVISION, Block 2, Lots 9 and 10, LESS road on
the north, according to the plat thereof as recorded in Plat Book 3, Page 43, Public
Records of Pinellas County, Florida, for the sum of $587,000; authorize the appropriate
officials to execute same, together with all documentation required to effect closing;
authorize establishment of a project account in the amount of $625,000 to cover
purchase, closing and related expenses; and, approve the terms and conditions of the
Community Redevelopment Agency 2010-09-20 Item #31
Attachment number 1
Page 4 of 7
related temporary occupancy lease between the CRA and the Society as referenced
in the Contract for Purchase, Exhibit A., and authorize the appropriate officials to
execute same. The motion was duly seconded and carried unanimously.
The 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, construction and
operation of the Project to enhance the quality of life, increase employment and
improve the aesthetic and useful enjoyment of the downtown.
This agreement provides CRA funding of a $50,000 restaurant build out loan-to-
grant generally mirroring the DDB Restaurant Relocation Program, which provides
for incentive reimbursement funding of eligible restaurant build out expenses, up
to a maximum of $50,000. Since the project involves the relocation and expansion
of an existing business within the Cleveland Street District, rather than a new
business coming to the District, the DDB Restaurant Relocation grant is not
available.
Staff supports CRA participation in this project for several reasons. First, Peter
Gillham's is an established, successful business in the District that indicates the
likelihood of continued successful operation at the new location. Second, Peter
Gillham's contemplates a significant expansion of their operation to leverage their
regional leadership position in the gluten-free market, an expanding sector of the
food industry, with an expanded retail and restaurant operation consistent with the
CRA recruitment strategy. Third, the cost of the tenant improvements necessary
to install a kitchen and associated facilities are significant and unlikely to be
affordable without incentive financing. Finally, the ability and willingness of the
owner to fund and move forward with the project at this time of economic
downturn, with the assistance delineated above, is very helpful in maintaining
downtown's redevelopment momentum.
Facilitation of this project will keep a proven business in the District and further the
objective of expanding quality restaurant and retail space on Cleveland Street.
Community Redevelopment Agency 2010-09-20 Item #41
Attachment number 1
Page 5 of 7
The incentive is 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 restaurant. If it ceases to be so operated
during the five-year period, the owner will have to reimburse the CRA for the
outstanding balance. Similarly, if the property was sold during the five-year period,
the outstanding balance will 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 is the CRA Retail Attraction/Assistance Project Account
94852.
In response to questions, Assistant City Manager Rod Irwin said the current facility's
interior space is limited to 1,800 sq. ft. The facility's new location will have 3,900 sq. ft.
for interior space. Shelley Jaffe, Executive Director for Peter Gillham's, said initially the
restaurant will open for breakfast and lunch six days a week and dinner 3 days a week.
Schedule will expand as demand increases. Ms. Jaffe reviewed her 20-year work
history with Food Services of America. She owned a catering company in Seattle for 11
years. Ms. Jaffe has been managing Peter Gillham's for 1.5 years. The current floor
plan includes 10 tables inside (seating for 4) and 3 tables outside (seating for 2) and an
exhibition kitchen with additional seating for 10.
Trustee George N. Cretekos moved to approve a Development Agreement between the
CRA and Mainstreet Clearwater Development LLC of Clearwater, Florida concerning
the Peter Gillham's Nutrition Center, retail and restaurant project, 422-424 Cleveland
Street, delineating the terms and conditions for the provision of certain economic
assistance by the CRA. The motion was duly seconded and carried unanimously.
On May 15, 2007, the CRA approved an assignment of the Development
Agreement from the original Developer, Clearwater Centre, LLC, to Clearwater
Espacio Development, LLC.
Construction was commenced on the project, but has since stopped. Clearwater
Espacio Development is planning on recommencing construction, and is
requesting an extension of the required completion date to October 1, 2012, and
a change in the form of the Security For Developer's Performance from a
Performance Mortgage to a Letter of Credit.
Community Redevelopment Agency 2010-09-20 Item #51
Attachment number 1
Page 6 of 7
In response to questions, the City Attorney said construction must commence before
the Development Order expires at the end of this month. Amendments to the
development agreement can be made contingent upon the Development Order
remaining active.
Staff was directed to make the amendments contingent upon the Development Order
remaining active.
The City Attorney said incentives on the project are limited to paying for impact fees up
to $425,000, street landscaping on city property up to $500,000, and relocation
of utilities up to $156,000.
Assistant City Manager Rod Irwin said staff determined the city was obligated to pay for
the relocation of utilities during the street realignment project. The developer may not
exercise the street landscaping incentive, as it was offered prior to the city implementing
the streetscaping project.
In response to a question regarding the proposed condition, the City Attorney
suggested amending the recommendation to say, "Approve second amendment,
provided however that reconstruction must be commenced by September 30, 2010."
Concern was expressed regarding the commencement date. It was stated the
developer anticipates meeting that date. Mr. Irwin said the developer understands the
city will not extend the Development Order.
Espacio representative Jeannine Pearson said the new contractor is prepared to
commence work this week and did not anticipate any problems.
Trustee Paul Gibson moved to approve second amendment, provided however that
reconstruction shall commence by September 30, 2010, to Development Agreement
between the Clearwater Redevelopment Agency and Clearwater Espacio Development,
LLC, and authorize the appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
4. Business Other Community Redevelopment Agency 2010-09-20 Item #61
Attachment number 1
Page 7 of 7
r
The meeting was adjourned at 9:36 a.m.
Attest
City Clerk
Chair
Community Redevelopment Agency
Community Redevelopment Agency 2010-09-20 Item #71
Meeting Date: 11/29/20 10
Community Redevelopment
0 Agency Agenda
Council Chambers - City
Hall
SUBJECT / RECOMMENDATION:
Approve the Memorandum of Agreement between the Community Redevelopment Agency (CRA) and Ruth Eckerd Hall, Inc. Inc,
a Florida Not-for-Profit Corporation, for the provision of an expanded and enhanced schedule of programming at the Capitol
Theatre in the Cleveland Street District until facility renovations begin; approve a $148,000-per annum appropriation to Ruth
Eckerd Hall, Inc. to underwrite the cost of the expanded, interim program schedule; approve a modification to the previously-
approved CRA contribution schedule for the Capitol Theatre reconstruction to fund the grant for interim programming and
authorize the appropriate officials to execute same.
SUMMARY:
CRA staff and Ruth Eckerd Hall have had discussions concerning a mutual desire of the group, to expand and improve the
programming and use of the Capitol Theatre to further the goals of both organizations during the period before reconstruction of the
Capitol Theatre begins.
Program offerings at the Capitol Theatre have to date produced 18 sellouts in 32 performances, exceeding projections of demand
for the facility and generating significant private rental and event requests that could not be accommodated under terms of the
Memorandum of Understanding between the City and Ruth Eckerd Hall. Both the CRA and Ruth Eckerd Hall believe additional
programming could be successful if the necessary resources were available to meet performance opportunities and community
demand.
The CRA staff objectives are to 1) support existing retail business viability in a period of economic downturn by creating larger
crowds to create dining and retail demand for businesses in the Cleveland Street District; 2) provide retail recruitment efforts with a
better customer base to encourage new retailers/restaurateurs with the confidence to locate in the Cleveland Street District during
the current economic downturn; and 3) expose additional potential restaurant/ retail customers and investors to the Cleveland Street
District through attendance at District events.
Ruth Eckerd Hall objectives are to increase exposure, customer base and interest in the Facility as they approach the requisite
fundraising campaign for capital and endowment funds to support future operation of the renovated facility. Additionally,
development of a strong customer base during the pre-renovation period will help attendance at the renovated facility.
Ruth Eckerd hall has submitted a proposal to increase performances from the current 36 performances annually to 100
performances annually, with 52 of them live, self presented events and the remaining 48 either films or third party rentals. The
funding requested totals $ 148,000 per year, which includes the requisite staff to operate, manage and promote an enhanced
program schedule, as well as $ 5,000 in one-time funds for projection equipment necessary for film showings. The latter would be
of such a quality that it could be used in the post-renovation theatre.
The Memorandum of Agreement memorializes the discussions and provides for a $148,000 appropriation each of the next 3 fiscal
years, or until renovations commence, whichever comes first. The source of funds would be from the Redevelopment Fund.
However, in order to maintain sufficient Redevelopment Fund balances over the next several years, and to cushion the fund
balances against any further drop in tax receipts during that period, staff is also recommending a restructuring of the current CRA
funding commitment of $1,000,000 for the Capitol Theatre renovations. Staff proposes a reduction of $148,000 from the
commitment in each year that the temporary funding is utilized.
For example, the anticipated $500,000 contribution for renovations in Fiscal Year 2012/2013 would be reduced to $352,000 and the
balance rolled forward. This would continue until the entire $1,000,000 is contributed to the renovation project. Based upon the
delay in the fundraising/renovation schedule to date, Finance and Budget believe there would be no detrimental effects upon the
renovation project by this restructuring. Payment would likely be completed in three fiscal years rather than two. Cover Memo
Based upon the positive impact of this programming change has had downtown businesses and the anticipated effe[cT on'tne future
success of the renovated Capitol Theatre, CRA staff recommends approval of the Memorandum of Agreement.
Review 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) Assistant City Manager 5) Clerk 6) City
Approval: Manager 7) Clerk
Cover Memo
Item # 2
Attachment number 1
Page 1 of 3
Memorandum of Agreement
Clearwater Community Redevelopment Agency and Ruth Eckerd Hall, Inc.
Monday, November 29, 2010
This Memorandum of Agreement is made and entered into this day of November, 2010,
between the Clearwater Community Redevelopment Agency, a municipal corporation of the
State of Florida, herein referred to as the("CRA") and Ruth Eckerd Hall, Inc., a Florida not-for-
profit corporation, hereafter referred to as (" Ruth Eckerd Hall").
CRA staff and Ruth Eckerd Hall have had discussions concerning a mutual desire of the group,
and CRA staff, to expand and improve the programming and use of the Capitol Theatre to further
the goals of both organizations during the period before reconstruction of the Capitol Theatre
begins.
Program offerings at the Capitol Theatre have to date produced 18 sellouts in 32 performances--
-exceeding projections of demand for the facility----and generating significant private rental and
event requests that could not be accommodated under terms of the MOU between the City and
Ruth Eckerd hall. Both the CRA and Ruth Eckerd Hall believe additional programming could be
successful if the necessary resources were available to meet performance opportunities and
community demand.
The CRA staff objectives are to 1) support existing retail business viability in a period of
economic downturn by creating larger crowds to create dining and retail demand for businesses
in the Cleveland Street District; and, 2) provide our retail recruitment efforts with a better
customer base to encourage new retailers/restaurateurs with the confidence to locate in the
Cleveland Street District during the current economic downturn; 3) "expose" additional potential
restaurant/retail customers and investors to the Cleveland Street District through attendance at
District events.
Ruth Eckerd Hall objectives are to increase exposure, customer base and interest in the
Facility as they approach the requisite fund raising campaign to raise agreed to capitol and
endowment funds to support future operation of the renovated facility. Additionally,
development of a strong customer base during the pre-renovation period will help attendance at
the renovated facility.
Ruth Eckerd hall has submitted a proposal to increase performances from the current 36
performances annually to 100 performances annually, with 52 of them live, self presented events
and the remaining 48 either films or third party rentals. The funding requested totals $ 148,000
per year, which includes the requisite staff to operate, manage and promote an enhanced
program schedule, as well as $ 5,000 in "one time" funds for projection equipment necessary for
film showings. The latter would be of such a quality that it could be used in the post-renovation
theatre.
1of3
Item # 2
Attachment number 1
Page 2 of 3
This memorandum of Agreement is entered into by the CRA and Ruth Eckerd Hall for the
purpose of formalizing the intent of the parties relating to the terms and conditions of the CRA
appropriation of funds to Ruth Eckerd Hall to partially underwrite the production and
management of an expanded performance schedule, as more fully described in the Proposal
from Ruth Eckerd hall to the Rod Irwin, Assistant City manager, dated October 7 2010 , a
copy of which is attached hereto and made a part of this Agreement.
To that end the parties agree as follows:
1) The CRA agrees to provide a $148,000 appropriation to Ruth Eckerd Hall to partially
fund the enhanced programming schedule as delineated in the attached Proposal from
Robert Freedman, President, Ruth Eckerd Hall dated ;
2) Ruth Eckerd Hall agrees to develop, produce and manage the expanded program
schedule, as more fully described in the attached Proposal and as delineated in paragraph
6 of this Agreement;
3) Unless specifically delineated herein, nothing in this Agreement supersedes the terms and
conditions of pre-construction operation of the Capitol Theatre, including the profit
sharing provision, of the November, 2008 Memorandum of Understanding between the
City of Clearwater and Ruth Eckerd Hall;
4) Ruth Eckerd Hall agrees to coordinate with the CRA Executive Director with respect to
the expanded program development and management to insure that the program is
consistent with the spirit and intent of the CRA grant; Ruth Eckerd hall will provide the
CRA Executive Director with quarterly financial and performance reports concerning the
appropriated funds ;
5) Should Ruth Eckerd Hall or the CRA at any point be unable or unwilling to meet the
requirements of this Agreement, the remainder of CRA funds shall be reimbursed to the
CRA.
6) This agreement shall terminate at the end of three years from the date of execution by the
parties, or at the commencement of renovations of the Theatre, whichever occurs first.
In acknowledgement and agreement with the terms and conditions of this Memorandum of
Agreement, as delineated above, the Agreement is executed by the authorized representatives of
the CRA and Ruth Eckerd Hall:
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF
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Item # 2
Attachment number 1
Page 3 of 3
CLEARWATER, FLORIDA
Frank V. Hibbard
Chairperson
Approved as to form:
Pamela K. Akin
City Attorney
RUTH ECKERD HALL, INC:
Robert Freedman
President and CEO
Attest:
Rosemarie Call
City Clerk
3 of 3
Item # 2
Attachment number 2
Page 1 of 1
To: Rod Irwin, Assistant City Manager
From: Robert A. Freedman, President and CEO, Ruth Eckerd Hall
Subject: Additional Programming at Capitol Theatre
Date: October 7, 2010
In order for Ruth Eckerd Hall to expand programming at the Capitol Theatre, we feel the following
underwriting is necessary to accomplish that goal. The primary ongoing expenses are for additional staff
and materials to be able to handle the additional work load; and a one time purchase for infrastructure
cost.
Proposal
Ruth Eckerd Hall proposes the need to hire a Theatre manager, maintenance/cleaning staff, part time
ticket office staff (ticket office would only be open for performances), part time marketing staff, part
time house management staff, food and beverage staff to prepare and operate shows, etc.
In addition, we would install 35 mm projection equipment to be able to do classic and other type film
presentations. The cost for the projection equipment is approximately $5,000 including equipment and
installation.
We estimate the increased cost for the above mentioned personal to be $148,000 on an annual basis
during the pre renovation period. We would like to see this funding in place by mid-November.
Currently we are booking two to three performances each month at the Capitol Theatre. The above
level of staffing would allow us to increase programming to 100 events per year, with 52 being live
performances and the remainder being film screenings and/or facility rentals.
Please let me know if you have any questions or how you might like to proceed.
Thank you for consideration of this request.
Item # 2
Meeting Date: 11/29/20 10
Community Redevelopment
0 Agency Agenda
Council Chambers - City
Hall
SUBJECT / RECOMMENDATION:
Authorize transfer of $1,799,927.37 from project 388-92275 to the City's project 315-92275 for the Community Redevelopment
Agency's portion of the Cleveland Street Streetscape Phase 11 construction project.
SUMMARY:
In November 2008, the Community Redevelopment Agency (CRA) approved the conceptual plan for Phase 11 of the Cleveland
Street Streetscape. Engineering, Economic Development and the City's consultant, Bellomo-Herbert, worked closely to develop the
construction drawings for this project.
The final conceptual design was discussed and approved by the City Council on May 17, 2010.
Nine general contractors purchased plans and specifications for this project; seven met the specific prequalification requirements
and all seven submitted bids. The bids ranged from the low bid of $2,940,906.83 to the high of $4,045,111.94. The engineer's
estimate was $3,348,466.96.
The lowest responsible bid received in accordance with the plans and specifications was MTM Contractors of Pinellas Park. The
construction bid is in the amount of $2,940,906.83.
Construction will start following award of contract, shop drawing review, and mobilization (January 2011). Construction is
anticipated to take up to twelve months, and will be done in two phases. Each phase will take up to six months. Phase one will be
from Missouri Avenue westward through the intersection of Martin Luther King Jr. (MLK) Avenue. Phase two will be from the
west side of MLK Avenue to Myrtle Avenue.
Upon completion, the landscaping, irrigation and site furnishings will be maintained by Parks and Recreation. The sidewalks and
roadway improvements will be maintained by Public Services.
Review 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) Assistant City Manager 5) Clerk 6) City
Approval: Manager 7) Clerk
Cover Memo
Item # 3