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COMMUNITY REDEVELOPMENT AGENCY - ANNUAL REPORT FY 2008-2009community redevelopment agency CITY OF CLEARWATER 0 Prepared for: Pinellas County Board of Commissioners March 2010 Prepared by: ERA Staff/ Economic Developments Housing Department Annual ReDorf FY 2008-2009 _° Clearwater U A. Introduction The Florida Community Redevelopment Act of 1969 (Florida Statutes: Title XI, Chapter 163, Part 111) provides a vehicle for local communities to form a Community Redevelopment Agency (CRA) and create a Redevelopment Trust Fund through Tax Increment Financing (TIF) for financing improvements within a target area. The City of Clearwater established its CRA in FY 81-82. The CRA was expanded in 2004 and a new redevelopment plan was approved in February 2004. Pursuant to Chapter 163.356(3)(c) of the Florida Statutes, a progress report of the year's redevelopment activities, including a complete financial statement of assets, liabilities, income and expenses, is due March 31 of each year. This annual report briefly summarizes the redevelopment activities conducted by the CRA in FY 08-09 and includes the year's financial statements. In FY 08-09, the CRA concentrated on the completion of Station Square Park and the planning of the Cleveland Street Streetscape Phase 11 project. The Downtown Manager continued to spearhead retail recruitment efforts and oversaw the creation of a district website. The first year of the East Gateway District Five-Year Action Program was completed and an Annual Progress Report highlighting progress and accomplishments was completed. The East Gateway Fagade Improvement Program was initiated. A review of Downtown parking was completed and a Site Rehabilitation Completion Order (SRCO) was issued, with no restrictions to residential development, on the Clearwater Automotive Salvage Yard site. The CRA worked closely with developers, the DDB, property owners, the Clearwater Regional Chamber of Commerce, and other stakeholders to coordinate projects that impact Downtown and spur catalytic development within the CRA district. The CRA's budget for FY 08-09 was $2,210,110. B. New Activity Rule LLP (Bellini's Casanova Restaurant] Development Agreement On June 1, 2009, a Development Agreement was approved between the CRA and Rule LLP concerning Bellini's Casanova Restaurant located on Cleveland Street. The project is a full renovation and expansion of the existing structure to create a full-service, 5,835 square foot fine dining restaurant with valet parking and outdoor dining. This project is the second phase of a planned, coordinated redevelopment of the block, with the first phase including Cafe Supreme and Avis Rent-a-Car. The Development Agreement outlines the general terms and incentives for this project. The CRA is assisting with a five-year forgivable loan, with 20% forgiven per year 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. The CRA has also agreed to reimburse $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 fagade improvements; $3,500 for building permit fees; and $3,000 for an outdoor furniture grant. The CRA allocated $150,000 from its Redevelopment line item. Royalty Theatre/Capitol Theatre Built in 1921, the Capitol Theatre has enjoyed enormous popularity as a vaudeville and opera house. The theatre's classic structure, complete with a large mezzanine and furnishings reminiscent of a Hollywood theatre, is one of the oldest operating theatres in the state of Florida. For decades, many of the country's biggest stars graced the stage including Fred Astaire, Ginger Rogers and Clark Gable. In the 1940's, the theatre hosted Frank Sinatra, Dean Martin, Bob Hope and Sammy Davis, Jr. By the 1950's, the theatre had become one of Americas premier movie palaces, but continued to be a favorite venue for many world-renowned performers. In the 1960's and 1970's, concerts by Elvis Presley and Liza Minnelli helped further the theatre's reputation as a great "little opera house" The musical heritage continued as dozens of classic theatrical productions were presented over the next two decades. The theatre will be a small, but modern hub, for performing arts venues where film, live performances, jazz, classical and pop entertainment are performed on a smaller scale, but similar to the type of performances scheduled at Ruth Eckerd Hall. The City of Clearwater purchased the property as a public service performing arts center. The City, a municipal corporation of the State of Florida, recently joined forces through a License Agreement and Memorandum of Understanding with Ruth Eckerd Hall, Inc., a Florida non-profit corporation to occupy, renovate, and revitalize the historic theatre. The theatre property is located in the core of Clearwater's Downtown District located at 401 and 403 Cleveland Street. This project is part of an overall plan to reenergize downtown Clearwater and expand programming for Ruth Eckerd Hall. V'/ Bellini's Casanova Restaurant Rendering Ruth Eckerd Hall, Inc. applied for sponsorship under the Enterprise Zone Community Contribution Tax Credit Program (CCTCP) pursuant to Florida Statutes sections 220.03, 220.183 (2)(c) and Rule 12C-1.0188 Florida Administrative Code. To become an eligible sponsor, a resolution from the local government was required. The Capitol Theatre is located within the City of Clearwater Enterprise Zone 5202 as established by Resolution 98-28 on Aug. 20, 1998. On Jan. 1, 2006, this area was re-designated an Enterprise Zone by Resolution 05-46, dated Nov 16, 2005 and will be in effect until Dec. 31, 2015. The CCTCP allows any business in Florida to receive a 50% credit on their Florida corporate income tax, insurance premium tax or sales tax refund for donations made to local community development projects. Donations must be made to an eligible sponsor conducting an approved community development project. A business may receive no more than $200,000 in community contribution tax credits annually. Once the donation has been approved by the Office of Tourism, Trade and Economic Development, a copy of the approval letter must be submitted with the state tax return. The qualifying proposed project for this sponsorship is to seek in-kind, service, and cash contributions towards restoration, renovation, programming and operation of the Capitol Theatre. The City adopted Resolution 09-36 at their Sept. 28, 2009 Council meeting and certified that Ruth Eckerd Hall, Inc. is consistent with local plans and regulations including comprehensive plans for the Capitol Theatre proposed project and that Ruth Eckerd Hall, Inc. qualifies under the State's CCTCP for public resources and facilities affiliated with economic/community development efforts. The CRA committed $1,000,000 over two years for the historic renovation of the theatre. Funds will be allocated beginning in FY 11-12. Capitol Theatre Parking Agreement with Baldwin Connelly Group, LLC i ?i In Jan. 2008, three highly respected and locally-based insurance agencies joined forces to expand services available to their clients and to provide growth opportunities for their colleagues. The combined agencies currently have seven offices. The companies combined their four Pinellas County offices and located to Downtown Clearwater. The company brought 55 jobs with an average wage of $56,500. Baldwin Connelly is leasing space at the Bank of America building located at 600 Cleveland Street. Unfortunately, the Bank of America office building does not have enough parking spaces to accommodate all the employees in the company. Baldwin Connelly requested economic assistance from the CRA for additional parking spaces needed for their employees. On Feb. 17, 2009, the CRA approved a grant to pay the cost of 30 parking spaces in the Garden Avenue Garage for 36 months. The CRA allocated $48,600 from its Economic Development Incentive line item. East Gateway District Five-Year Action Program The CRA concluded the first year of the East Gateway District Five-Year Action Program in May 2009 and prepared the East Gateway District Annual Progress Report highlighting progress and accomplishments to include: • Regular and productive meetings of the East Gateway Task Force for collaboration on neighborhood issues and opportunities • Expanded community policing unit that is improving safety and security in the neighborhood and building public trust • Organization of the East Gateway Stakeholder Advisory Group and East Gateway Business & Neighbors Association, providing greater opportunity for community engagement and grassroots problem solving • Planning and orchestration of two community celebrations: Sunday Ciclovia street festival and Ice Cream Social • Improving the appearance of the neighborhood by addressing littering and code violations The report drew attention to negative neighborhood indicators, (declining property values and homeownership rate), and listed implementation activities planned for FY 09-10. East Gateway Ice Cream Social The CRA allocated $133,644 to fund a variety of activities including community policing, multicultural events, advertising and supplies for public outreach activities. ? *_ - 4 Community Engagement Community engagement and empowerment blossomed in the East Gateway District with an active first year of stakeholder meetings and projects. The East Gateway Stakeholder Advisory Group (SAG) met bi-monthly to provide guidance on Action Program implementation (SAG meeting agenda and summaries are posted at www.myclearwater.com/eastgateway). Recognizing the need for a more defined redevelopment vision for the district, the SAG proposed a robust community visioning and planning process that gained traction during the final months of FY 08-09. The East Gateway Business & Neighbors Association, a grassroots organization, met monthly in partnership with the CRA and City staff. The partnership resulted in two neighborhood crime walks, a neighborhood crime watch organization, code violation reporting training, hands-on participation in two city-sponsored community events, a neighborhood bake sale, and identification of sidewalk projects. The CRA initiative to stabilize the East Gateway District employs East Gateway B.N.A. community events as opportunities for community-building among area residents and businesses, many of which are Hispanic. To this end, two events "Sunday Ciclovia" and East Gateway Ice Cream Social were held to bring people together in a festive social environment with a get involved message. As a street event, Sunday Ciclovia had the added benefit of involving and promoting East Gateway businesses, which are an integral part to neighborhood advancement. Sunday Ciclovia was publicized in a case study by the Pedestrian Bicycle Information Center. The Ice Cream Social featured Mexican ice cream made by an East Gateway business. CRA staff was involved with other community partners in the establishment of the Hispanic Business Council of the Clearwater Regional Chamber of Commerce. Two events held focused on strengthening local Hispanic businesses. East Gateway Community Policing Innovation Community concerns regarding illegal drug activity, prostitution, and street crimes in the CRA continue to be addressed through a CRA/Police Department interlocal agreement that provides for increased police presence. The agreement enables two additional police officers to patrol the East Gateway District, particularly during 5 V peak crime periods and at peak crime locations. The CRA approved the interlocal agreement on Aug. 18, 2008. The term of the agreement was from Oct. 1, 2008 through Sept. 30, 2009. The CRA allocated $134,023.46 from its East Gateway Project line. East Gateway District Facade and Building Lot Improvement Program In March 2009, the East Gateway District Facade & Building Lot Improvement Program was approved. The program provides incentives for private reinvestment within aging commercial corridors in the District. Program objectives are to: 1) stabilize existing businesses and stimulate new business activity by improving the overall visual quality of existing buildings; 2) improve the view from the street by focusing on improvements most visible to customers, neighboring merchants and residents, and pass-by traffic; 3) establish a positive neighborhood image and a "sense of place" that are vital to the economic revitalization of the area; 4) promote green building and Crime Prevention through Environmental Design (CPTED) techniques applicable to building facade and site design; and 5) leverage City funds for neighborhood revitalization and economic development by encouraging private investment in facade and building lot improvements. Design services up to $5,000 and construction funding up to $35,000 are available to eligible commercial property owners. Funding for design services up to $20,000 is allocated from the CRA East Gateway line item. A total of $180,000 in U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funds is allocated for project construction. In this reporting period, five program applications were accepted and two loan-to- grant commitments were issued by the CRA. East Gateway Downtown/Beach Gateway Intersection Improvements The community continued to express concern about decreased traffic volumes and business activity in the East Gateway associated with the relocation of SR 60 and Gulf to Bay Boulevard. In an effort to mitigate this condition and address the lack h -;O k4f-wily IE??t9SE'G9?f)2? hilla)9ov('l@lli pvi'Gvl,,iin l w l J of pedestrian walkways in this intersection, an attention grabbing entryway feature at the intersection of Gulf to Bay Boulevard, Highland Avenue and Court Street is proposed. The gateway feature intersection improvements would cue motorists, pedestrians and cyclists that something special lays ahead. The gateway feature intersection improvements would maximize views and vistas into the district from SR 60, reinforce community identity, create beauty and increase safety at this large- scale, five-legged intersection. Preliminary design concepts of the project were prepared by the City and presented to the East Gateway Stakeholder Advisory Group and East Gateway Business & Neighbors Association for feedback. The community remains highly supportive of the project. The City Council allocated $1,000,000 in Penny for Pinellas II funds. East Gateway Neighborhood Revitalization Strategy Area (NRSA] A Neighborhood Revitalization Strategy (NRS) was developed under the Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program that encouraged the coordination of resources to facilitate neighborhood revitalization. A NRS was approved for the East Gateway District and a NRS area was established in the District. With this designation, the City is able to offer more intensive economic assistance for addressing the community's most pressing needs. The East Gateway NRS is consistent with the East Gateway Five-Year Action Program. During development of the East Gateway NRS, input from residents, property owners, business interests, social services agencies and community groups was solicited to fulfill HUD and the Action Program directives. The East Gateway NRS was presented to the East Gateway Business and Neighbors Association, the East Gateway Stakeholder Advisory Group and the Clearwater Neighborhood Coalition in Dec. and Jan. of 2009. The Neighborhood and Affordable Housing Advisory Board recommended approval of the East Gateway NRS in Feb. 2009 and the CRA approved the NRS on March 2, 2009. Country Club Townhomes To increase the supply of owner-occupied, workforce-housing units in the East Gateway District, the City provided a $700,000 loan through CDBG funds for the purchase of property for a 36-unit townhouse project located at Drew Street and N. Betty Lane. The loan term is three-percent interest rate on the outstanding principal balance with deferred payment of principal and interest for five years. If the developer failed to reach certain timelines for site plan submittal and construction the Developer agreed, upon written demand by the City, to convey the property to the City by Special Warranty Deed in lieu of foreclosure. Given the current economic conditions and the state of the housing market, the Developer was unable to meet the agreed upon timelines and requested an extension. Economic Development and Housing staff recommended a mortgage modification to extend the timeframes for an additional five years. This extension will allow the Developer time to complete the site plan approval, construct, and sell the affordable townhomes in the East Gateway District. It is anticipated the City Council will approve the loan modification in Dec. 2009. Review and Update of 2002 Downtown Parking Study In 2002, a detailed Clearwater Downtown Parking Needs Assessment and Feasibility Study was completed. At that time, the 2002 findings suggested the current available parking capacity during normal weekday conditions meets or exceeds demand with the exception of one defined area and during special events at Coachman Park. Since completion of that assessment, 1) the CRA in 2008 adopted and is in the process of implementing the recommendations of the Cleveland Street District Retail Strategy, which projects increased retail/restaurant occupancies and use over a 2, 5 and 10 year time horizon; 2) the City Council entered into a joint venture with Ruth Eckerd Hall to acquire, renovate and re-open the Capitol Theater as a 665 seat performing arts venue; 3) the City Council has expressed their intent to close, demolish and remove the surface parking at the Harborview Center in the immediate future; 4) Temporary surface parking on the so-called "super block" is likely to disappear as the economy improves and landowners again contemplate redevelopment opportunities; and, 5) CRA/ED staff have increasingly focused on recruitment of new tenants into Downtown office properties, thus reducing vacancy rates and impacting parking capacity. In light of these changes, all of which hold the potential of impacting the Downtown parking system, the CRA and Parking staff felt an updated capacity analysis was timely. The subject review was commissioned to evaluate the impact on the existing parking system for 2, 5 & 10 year projections from the proposed Cleveland Street District restaurant/retail strategy, future office space demand, the Royalty Theater demand and office space occupancy impacts. The City's parking consultant, Haahs and Associates, conducted the analysis in conjunction with staff from Parking and Economic Development. The Study suggests that the current parking system can support the anticipated future growth over the 10-year study period of retail/ restaurant, theater and entertainment categories during typical weekdays and weekends. The exception is in the office category, where building parking limits and competitive tenant recruitment pressures on parking supply in the immediate area surrounding the "cluster" of offices near Cleveland Street and Garden Avenue. In the short term (over the next 5 years), the City/CRA will need to continue to provide incentives for additional Additional Parking Signs parking spaces to meet demand as the buildings approach full occupancy as currently provided under the parking assistance program by Economic Development. Over the long-term (next 10 years), the study concludes that if full occupancy of the office buildings is reached, there is a deficit of parking spaces to meet the office demand. It is also expected that availability in all categories would continue to be impacted by large events at Coachman Park, but would remain manageable using ancillary parking strategies already in place. Additional directional/wayfinding signage was recommended and completed, as well as implementation of an "ambassador" program to assist with parking management during large demand periods in the future. An initiative to obtain public use of private lots was also recommended as a cost effective means of expanding availability. Finally, the study did not consider the parking demand likely to be generated by an Intermodal Beach Rapid Transit (BRT) initiative under consideration for the Downtown. A parking component associated with such a center by definition requires a directly proximate mode shift capability and would need to be serviced by its own parking, not by dispersed lots competing with other use categories. Economic Development allocated $15,010 and the Parking System allocated $790 from its Professional Services line item. 9 V Authorize Issuance of a Request for Proposals (RFP) - Parcel Bounded By Chestnut Street and Prospect Avenue The City has received numerous inquiries over the years regarding the city-owned parcels on Court Street and Prospect Avenue. The adjacent, privately-owned site at 915 Court Street, a former Texaco station, is under environmental remediation and monitoring. Because of the environmental concerns, it has been the City's preference to wait until the site was "clean" before pursuing any development options for the site. However, staff has indicated to interested parties that should a desirable development proposal for the City site come forward before the scheduled remediation is completed, the City would consider disposition of the City-owned property. Given the strategic location of the site where Court and Chestnut Streets merge, this site is an ideal location for redevelopment because of its "Gateway" to the Downtown Core and Clearwater Beach. With interest in the development of the parcel, the CRA approved the issuance of a RFP at their Sept. 28, 2009 meeting. C. Multi-year Projects 1i Commitments Station Square Park Construction The Station Square Park project was initially part of the Cleveland Street Streetscape Project Phase I, but was removed from the project due to budget constraints and increased construction costs at the time. In the interim, the site was used as a staging area for the Station Square Condominiums project located on the adjacent property to the east. In March 2006, Station Square Park demolition began with the Station Square Park Ribbon Gutting removal of tables, seating and trees deemed substandard by the City's Arborist. Two Station Square Park food vendors were relocated to the western edge of the park and Biltmore Construction fenced in the staging area. In early June 2008, Station Square Condominiums no longer required the park site for construction staging and cleared the site of all their equipment and materials. 10 VI-_ The City advertised the plans for Station Square Park and received several bids. Angle & Schmid, Inc. was selected as the preferred contractor and the CRA approved the selection at their June 16, 2008 meeting. The parks features include a stage, moveable furniture, a clock, new pavers and water fountain. The park was completed and a Ribbon Cutting Ceremony held on Feb. 26, 2009. Station Square Park Entrance & Signs Two signs, one with the parks rules and one that describes the site as the location of the City's first train station, were installed at the entryway of the park. The CRA allocated $800,000 from its Capital Improvement/Station Square line item. The Clearwater Historical Society donated the sign describing the parks history. treetscape Phase II Concept Phase II is the next phase of the streetscape program that was developed by Bellomo-Herbert and Company in Aug. 2002. With the development of The Strand at Clearwater Centre, the Development Agreement with IMR/CGI, and the availability of the Prospect Lake Redevelopment Site, Phase 11 of the Cleveland Street Streetscape project is a critical infrastructure project that will continue to encourage and facilitate the City and CRAS redevelopment goals. The conceptual plan for Phase II contains the look and feel of the first phase of the Cleveland Street Streetscape, but with a less intense, and therefore less expensive, treatment. The features will include earthwork, grading, paving, underground utilities, lighting, site furnishings, mast arms, and public art. The CRA approved the conceptual plan at their Nov 3, 2008 meeting. Construction drawings are underway with a request for bids anticipated for mid-2010. 11 01 Cleveland Streetscape - Phase II The CRA has allocated $1,574,000 from its Downtown Streetscape line item and will allocate an additional $1,622,925 as the funds become available over the next one to two fiscal years to assist in funding this project. Downtown Boat Slips The DDB and the CRA, recognizing the economic impact that boat slips would bring to Clearwater, agreed to contribute a total of $2 million (CRAB commitment of $1.5 million and DDB's commitment of $500,000), over a ten year period, to fund the capital expenses necessary for construction and maintenance of 126 boats slips, docks, boardwalk, promenade and related facilities on the downtown waterfront near Coachman Park. Downtown Boat Slips Rendering On March 13, 2007, Clearwater residents approved, by referendum, the boat slips project. A RFP was released on Dec. 19, 2007 for design build services. On Feb. 8, 2008 bids were received, and on April 17, 2008 the City Council approved Misener Marine Construction, Inc. as the preferred contractor. A Notice to Proceed was issued on May 23, 2008. The environmental portion of the project was completed on June 30, 2009. A Notice to Proceed was issued for the seawall on Aug. 3, 2009. The anticipated project completion date is spring 2010. Cleveland Street and Prospect Lake Park Site On Feb. 19, 2008, a Development Agreement was approved with Miles Development Partners for the purchase and development of 200-249 residential multi-family dwelling units and up to 16,000 square feet of retail space. However, due to the current market and economic circumstances, Miles Development terminated the Development Agreement with the CRA effective July 24, 2008. \I% 12 The CRA continues to discuss with interested parties the goals for the site. The CRA will release a RFP when market conditions improve. Cleveland Street and Prospect Lake Park Cleveland Street and Prospect Lake Park Site (Brownfields] On March 7, 2002, the City Commission approved an interlocal agreement between the City and the CRA regarding the Brownfields site initially known as Dimmitt Chevrolet Property B to facilitate the proposed redevelopment of the site. The City committed to certain environmental remediation on the property pursuant to the Brownfields Site Rehabilitation Agreement (BSRA) entered into between the City and Florida Department of Environmental Protection (FDEP) on July 26, 2001. The City completed the environmental remediation of the property in Aug. 2004. In June 2004, FDEP approved a Groundwater Monitoring Plan (MOP). Wells were installed and groundwater monitoring continued until four quarterly monitoring events showed that Residential Groundwater Cleanup Target levels (GCTLs) were acceptable. On Aug. 15, 2005, the CRA accepted title to a 2,317.46-square-foot portion of the former south half right-of-way of Park Street, vacated by the City on Aug. 4, 2005. The City requested a letter from the FDEP confirming that the City had completed rehabilitation of contaminated soils at the site and would address the site's remaining groundwater contamination through an approved plan for natural attenuation with monitoring. A memo dated May 25, 2005 stated that the FDEP Department Office of Counsel had the Restrictive Covenant Agreement for groundwater under review. However, the timeframe to obtain this document from FDEP involved many months and involved the City's legal counsel. A Restrictive Covenant agreement was approved by FDEP on Aug. 29, 2006 to prevent the use of groundwater at the site, to reduce or eliminate the risk of exposure of the contaminants to the environment and to users or occupants of the property, and to reduce or eliminate the threat of migration of the contaminants. The City received the Comfort Letter on Sept. 6, 2006. In Oct. 2008, a Groundwater Monitoring Report was submitted to FDEP that presented the findings of groundwater monitoring for the first half of the first year. The report included site background, a description of field activities, and an evaluation of the data, conclusions and recommendations. In Sept. 2009, monitoring activities were completed and indicated that soil and groundwater contaminant concentrations were below the applicable Soil Cleanup Target Levels and Maximum Concentration Limits or Groundwater Cleanup Target Levels as adopted in Chapter 62-777, F.A.C., effective April 17, 2005. Therefore, site rehabilitation requirements have been satisfied from any further obligations. A request for a Site Rehabilitation Completion Order (SRCO), without conditions, was sent to FDEP Southwest District in Sept. 2009. • Clearwater Automotive Salvage Yard Long an impediment to the future redevelopment around the Prospect Lake area, an automotive junkyard was acquired by the City in Oct. 2003 through an exchange of real property between the City and Clearwater Mall, LLC. The land value of the exchange was $1.2 million. This exchange contract resulted in a remnant parcel (Miller Property) that the CRA acquired, with a $48,000 loan from the DDB, which consolidates the block into a potential redevelopment site. Given the prior uses of the site as a foundry and an automotive scrap yard, the City hired Tampa Bay Engineering (TBE) to assist with site demolition, environmental assessment and remediation activities. TBE prepared the approved Florida Department of Environmental Protection (FDEP) Brownfields Site Rehabilitation Agreement (BSRA). In order to prepare the site for an official groundbreaking and cleanup, a fence was installed and the property was cleared of vegetation. A Groundbreaking Demolition Party was held March 1, 2006 celebrating the beginning of a new face for this downtown eyesore. In attendance were residents, businesses, city, state, county and federal government officials. The program covered the importance of Brownfields redevelopment in downtown, acquisition of the property, the Brownfields process, funding for remediation, and environmental issues. Site-wide delineation sampling of exposed soils was completed and followed with a contract to demolish six commercial structures awarded to Cross Environmental Services on Feb. 15, 2006. The structures were removed and a Waste Disposal and Volume Summary Report was sent to the Environmental Protection Agency (EPA). In order to continue to prepare the site for redevelopment, the CRA accepted title from the City of Clearwater for the Clearwater Automotive Salvage Yard and the former Miller property on July 18, 2006. On July 18, 2006, a partnership between the City and the CRA was established through an Interlocal Agreement to jointly complete the environmental remediation. A $350,000 intergovernmental loan to the CRA was approved from the City's Brownfields Revolving Loan Cleanup Fund. Repayment of the loan is required upon redevelopment/disposal of the property. In Sept. 2006, Jamson Environmental was contracted for the excavation and offsite disposal of building foundations and sub-grade structures (including tanks/ sumps), excavation, staging and offsite disposal of contaminated debris. Total costs incurred were $218,491.26. Phase 1-I1-III delineation samples were collected from November 2006 through Jan. 2007. In Jan. and Feb. 2007, more than 1,131 tons of contaminated soil was excavated and disposed of. From March 2007 through Oct. 2007 delineation continued of off-site soil impacts. Final soil excavation and removal, both on-site and off-site, will be performed pending FDEP approval of the Brownfields Site Assessment Report Addendum and Interim Source Removal Plan to be submitted to FDEP. 1 \I% 14 In order to obtain a Site Rehabilitation Completion Order (SRCO) from FDEP for the Clearwater Auto site, the City was obligated to address off-site contamination related to the Clearwater Auto site. The presence of foundry sands/slag material at depths of between two and six feet below land surface was documented in soil borings at the Ron's AAMCO site. This material historically ties Clearwater Auto activities to the adjacent Ron's AAMCO property. As a result, this material must be delineated and evaluated for potential remediation as part of the Clearwater Auto site assessment. On June 2, 2008 the CRA approved additional monies, in the form of a loan, in the amount not to exceed $350,000 to complete the remediation of the Clearwater Auto site and to address off-site environmental impacts (AAMCO site). In Oct. 2008, Jamson completed soil excavation and confirmed sampling. An Interim Source Removal Completion Report was completed and sent to FDEP on Oct. 21, 2008. Contractors prepared final cleanup work at the site that included additional fill material, grading, fence repairs, seeding and debris removal. FDEP reviewed the Interim Source Removal Completion Report for a No Further Action (NFA). A Site Rehabilitation Completion Order (SRCO) was issued on July 1, 2009 with no restrictions to residential development. Discussions will ensue in FY 09-10 to determine the direction the CRA would like to take on this redevelopment site. The Strand at Clearwater Centre Development Agreement On Jan. 16, 2007, a Development Agreement was approved between the CRA and Clearwater Centre, LLC concerning the Strand at Clearwater Centre located on Cleveland Street. The Strand at Clearwater Centre will have 71 tower residences, 17 city homes and 21,000 square feet of retail/restaurant space. The Development Agreement outlines the general terms and incentives for this project. The CRA will reimburse impact fees The Strand At Clearwater Centre Rendering • not to exceed $425,000 as they become due and certain water and utility relocation costs not to exceed $260,000. The CRA also agreed to make streetscape and landscape improvements in a total amount not to exceed the lesser of $500,000, or the amount of funds remaining in the project account after payment of the impact fees and utility relocation upon completion. The total payments by the CRA shall not exceed $1,040,000. Construction is expected to be completed in late 2010. Station Square Parking Lot Redevelopment Project In order to spur catalytic redevelopment in the downtown core, the CRA made one of its prime real estate sites, the Station Square Parking Lot site, available for mixed- use redevelopment to include new urban housing and retail in the Downtown core. The CRA owned the 35,968+/- square-foot site, which was used as a public surface parking lot. The CRA issued a RFPQ in May 2003 for the redevelopment of the Station Square Parking Lot Site on Cleveland Street as a retail/residential infill development. In July 2003, the CRA selected Beck, LLC as the developer for the project and authorized the negotiation of a Development Agreement. The Development Agreement was approved in Feb. 2004. The project contains 126 residential condominiums, 12,000 square feet of restaurant/retail space and 326 parking spaces, of which 100 are public. The developer, once financing was obtained, paid fair market value for the Station Square Parking Lot property for $720,000 plus accrued interest at 4 percent. The Developer agreed to sell to the City 100 parking spaces, $12,500 per space for a total of $1,250,000. The CRA also agreed to pay for the developer's impact fees once the building was completed. The CRA allocated $460,000 from the City's portion of the TIF generated by the project to pay for the impact fees over a two- year period, one year after the project receives its Certificate of C77 ompletion. On May 2, 2005, the CRA agreed to amendments to the Development Agreement which: changed the name to properly reflect the new Owner/Developer; revised the square footage of retail required to 10,000 square feet; amended the number of parking spaces to 296; reflected the actual closing date of Aug. 25, 2004; Station Square Condos 04 16 requested an extension of time to commence construction; and requested an extension of 540 days after closing before the CRA can exercise its option to repurchase the site, if the Developer did not commence construction on time. The Development Agreement allowed the use of Station Square Park, a passive urban park to the west of the project, as a construction staging area. Construction commenced on Dec. 11, 2006 and was completed on March 13, 2009. Marriott Residence Inn Development Agreement On May 15, 2007, a Development Agreement was approved between the CRA and Clearwater Hospitality Properties, LLC. The Marriott Residence Inn has 115 hotel units to include studios, one- bedroom and two-bedroom suites. The Development Agreement outlined the general terms and incentives for this project. In Nov 2008 the CRA reimbursed the developer impact and permit fees in the amount of $178,000 when the Certificate 1"W.m--- o Marriott Residence Inn of Occupancy was issued. The CRA will also reimburse the City only portion of the TIF to offset extraordinary costs associated with the amenity package required by the Marriott Corporation, and to allow the project to meet minimum rates of return necessary to construct the project. The total reimbursement under the City's portion of TIF shall not exceed $400,000. The construction of the Marriott Residence Inn was completed in Sept. 2008. i/ \?% Water's Edge Development Agreement On Dec. 12, 2006, a Development Agreement was approved between the CRA and OPUS South Development, LLC concerning Water's Edge located on Cleveland Street. Water's Edge has 157 condominium units and 10,000 square feet of retail space. t^ the general terms and incentives for this project. The CRA will reimburse impact fees not to exceed $535,000 and reimburse sidewalk and site improvements following the Osceola Streetscape Conceptual Design not to exceed $500,000. Starting in the fiscal year in which tax increments are expected to be generated (2009), the CRA budgeted for the anticipated reimbursement to the developer until the reimbursement is paid in full. The total payments by the CRA shall not exceed $1,035,000. The construction of Water's Edge was completed in Sept. 2008. Water's Edge Condos Cleveland Street District Facade Improvement Program The CRA approved the Scope of Work for the team of Wallis Murphey Boyington Architects, Wilson Miller, and Swan Development Advisors in response to a Request For Proposals (RFP) for the Cleveland Street Fagade Design Analysis at their April 18, 2005 CRA meeting. The three goals outlined were: 1) identify opportunities for facade improvements along Cleveland Street, from Osceola to Myrtle Avenues in downtown Clearwater; 2) prepare illustrative concepts of facade improvements to selected buildings; and 3) establish a vision for building design, reflective of Clearwater's unique character. The team proposed that the City provide grants and loans to property owners whose intended renovations and improvements contributed to the Cafe Society or Sidewalk Cafe District. On Feb. 2, 2007, a Request for Qualifications (RFQ) for the development of the Facade Improvement Program guidelines was sent out and Swan Development Advisors, Inc. along with Market Knowledge were selected. The program developed several tools to include architectural design assistance to be provided by the CRA and funded by the DDB via contracts with local architects and two financial incentives. The financial incentives are a $10,000 matching grant and a $25,000 16 my zero interest loan. On Sept. 4, 2007, the CRA approved the Cleveland Street District Facade Improvement Program. The Cleveland Street District Facade Improvement Program guidelines were sent to the property and business owners on Cleveland Street. Follow-up phone calls were made and meetings were held with eight property owners to further discuss the elements of the program. In this reporting period two property owners with buildings located at 410-418,420-428 and 645 Cleveland Street took advantage of architectural design services for a total of $7,717. Three property owners Uivino's III] I)rovelll Pill IS with buildings located at 415 and 635 Cleveland Street and 22 N. Fort Harrison Avenue enhanced their storefronts with grant assistance in the amount of $25,077.98. As new business owners relocate to downtown, staff informs them of the program and meetings are held with those who express an interest. Marketing of the program is ongoing and will continue throughout the next fiscal year. Sidewalk Cafe Furniture Grant Program In April 2005, the CRA initiated a Facade Design Analysis for Cleveland Street within the Cleveland Street District. Recommendations from the analysis called for changes to the CRAB existing Fagade Improvement Program and pursuit of a unifying concept whereby efforts and resources could be prioritized and allocated. The unifying concept chosen was the Cleveland Street Cafe District, which promotes a sidewalk cafe environment. On Jan. 14, 2008, the CRA approved the Sidewalk Cafe Furniture Grant Program. The grant provides financial assistance to eligible applicants seeking to furnish an approved Tony's Pizzeria Sidewalk Furniture sidewalk cafe area within the Cleveland Street District. This one-time grant funds up to 75 percent of the total project cost, to a maximum of $2,500 per grant award. This project is funded by the DDB and administered by the CRA. An applicant must meet certain standards set forth by the CRA. Funds are disbursed as a reimbursement upon final CRA staff inspection of the furniture installation. During this reporting period Tony's Pizzeria located at 530 Cleveland Street received $2,332.80 and Dunkin Donuts located at 534 Cleveland Street received $2,500 in reimbursement for their sidewalk cafe furniture. Downtown Marketing and Implementation Plan The public relations and marketing firm of Vaughn Wedeen Creative submitted their report that included a strategy to establish a clear identity for downtown Clearwater and the DDB. The DDB allocated $20,000 for professional services to undertake this project. A draft report was developed outlining a preliminary strategy, message, budget, implementation plan and timeline and was presented to the DDB at a special meeting on Aug. 30, 2006. In late Sept. 2006, Vaughn Wedeen Creative, Inc., with direction from the board, finalized the report including draft designs of proposed materials, budget for material development, printing and fabrication. Vaughn Wedeen recommended the City create a communications and promotion plan that focused on Cleveland Street. The plan would help to better define potential development and create a positive image for Downtown. The report was the basis for the CRA's strategy for branding and promoting the "Cleveland Street District" The report also included specific recommendations and a budget for implementing the branding program. Upon review of the report, the DDB retained Vaughn Wedeen to develop several logos for consideration. The DDB chose a logo to forward to the CRA for their review and comment. To ensure that the new logo was consistent with the image of a revitalized downtown Clearwater, the CRA requested several additional logos in April 2007 from Vaughn Wedeen that could be market tested. Those that participated in the testing were likely users of new downtown amenities. Vaughn Wedeen developed a total of four logos that represented a range of options from traditional to modern/edgy. The options were intended to help reposition downtown Clearwater and brand the "Cleveland Street District" as the new up-and- coming destination. The Cleveland Street District is defined as the area from Osceola to Myrtle Avenues Cleveland Street District Logo and Pierce to Drew Streets. Geographically, this corresponds with the Downtown Fagade Improvement Program and Sidewalk Cafe District approved by the CRA on Sept. 4, 2007. On Dec. 3, 2007, the CRA approved, after a yearlong collaborative process with the public, the DDB, Public Communications and Economic Development, a new brand identity for downtown Clearwater. The "Cleveland Street District" brand and logo reflects a new energy that captures the improvements accomplished in downtown and the positive direction for the district. As a follow-up to the approval, Economic Development and Public Communications provided guidelines for the use and application of the new brand. On Feb. 19, 2008, the CRA approved the Cleveland Street District Logo Guidelines entitled "Cleveland Street Branding and Style Guide' The new logo is used on various media to include the Cleveland Street District Streetscene newsletter and bi-weekly update; a Cleveland Street District postcard directing recipients to sign-up for the District newsletter; a DDB sponsored eco-friendly reusable bag that is distributed at events; and in District event advertisements. Retail Recruitment and Marketing Services On Jan. 14, 2008, the CRA released a RFP for Retail Recruitment and Marketing Services with the objective being to support and enhance the existing retail base within the Cleveland Street District. On March 3, 2008, the CRA retained Economics Research Associates/Downtown Works of Washington D.C. to evaluate retail conditions in the Cleveland Street District and to create a Retail Strategy and Implementation Program. The Retail Strategy and Implementation Program was adopted by the CRA in Aug. 2008. The program guides CRA staff in recruiting unique, destination retail and restaurants. Program philosophy is if people are provided a unique merchandise mix, with one-of-a-kind retailers and restaurants, they will visit the District because of its interesting tenant mix. The consultant's approach to accomplishing this is through a dedicated retail recruiter whose primary responsibility is generating retail prospects. The Downtown Manager acts as the retail recruiter. The approach is hands-on with more emphasis on action, on-the-ground retail recruitment. The retail recruiter has been actively recruiting since adoption of the program. More than 300 establishments have been visited with 150 qualified as potential prospects. Continually managing a relationship with prospects and engaging them with new information about the district is an ongoing process. Nine months into the recruitment program, the first full-service restaurant was recruited to the District. La Cachette, a fine dining restaurant serving French cuisine, is scheduled to open in Nov 2009. 21 V Though the retail consultant's contract ended in the spring of 2009, the recruitment process continues to ensure that qualified tenants establish themselves in the district to further the downtown destination concept. The CRA allocated $165,000 from its Retail Attraction/ Assistance and Downtown Redevelopment line items. IMR/CGI Landscaping Fund La Cachette According to the IMR/CGI Development Agreement, the CRA made a multi-year commitment to allocate the TIF generated from this project in a fund to pay for streetscape or landscaping improvements around the immediate site. The CRA made its final commitment in FY 02-03. The CRA approved the Cleveland Street Streetscape Phase II conceptual plan, from Myrtle to Missouri Avenue, at their Nov 3, 2008 meeting. Once the plans are completed and the bids received for the project, the $302,401 allocated from the IMR/ CGI Development Agreement will be used to assist in the financing of Phase II of the Streetscape project. The monies allocated in this fund have been moved to the Streetscape Phase II Capital Project. Downtown Clearwater Farmer's Market The Downtown Clearwater Farmer's Market celebrated their thirteenth year in operation started the season in front of City Hall. With the completion of the Cleveland Street streetscape project, approval was granted to move the market onto the 500 block of Cleveland Street. This move resulted in a successful year that brought more pedestrian traffic to the District on market days and increased the number of vendors that participated. wntown Farmer's Market * L/ The market operates on Wednesdays from Nov through April. The season was so successful that market managers requested, and were approved, to run the market for an additional month in May 2009. The Farmer's Market continues to be known as a green market and holds several special events during the season. It attracts weekly visitors to the area and creates a unique place to visit for downtown workers, city residents and area tourists. This year, volunteers assisted the market with their 13th Anniversary celebration. The CRA allocated $6,000 and the DDB allocated $15,000 from its Downtown Market line item. CRA and DDB Intergovernmental Relationship The CRA, the DDB and City of Clearwater Economic Development and Housing Department staff work well together through an interlocal agreement, currently in its ninth year. The CRAB administration fee for the fiscal year was $57,480. Embracing the same mission and goals, the DDB and the CRA have provided for a process that strengthens communication leading to many downtown development projects, infrastructure improvements, merchant retail promotion and a redevelopment plan that has enticed the private sector to invest. In the spirit of cooperation with the CRA, the DDB has invested in the future of downtown by providing funding for several research studies currently being implemented to create the framework for a destination downtown. The DDB supported the Boat Slip Referendum and agreed to a 10-year funding schedule in the amount of $50,000 per year for construction and maintenance. The referendum passed and construction is currently underway. The DDB funded a Conference Center Feasibility Study, the inserts for the Streetscape Directory Kiosks and continued to promote the Merchant Parking Validation Program. The DDB is active in supporting Clearwater's annual events in Coachman Park and at the Harborview Center. The Fun `n Sun Festival, the Sea Blues Festival, the world renowned Clearwater Jazz Holiday Festival, the yearly Festival of Trees fundraiser for the Upper Pinellas County Association for Retarded Citizens, the Fourth of July Clearwater Celebrates America Pet Festival CJ ??? event, and DDB events such as the Spring Pet Festival and Cleveland Street Poetry Walk. This year, the DDB took on a leadership role by funding $25,000 to begin downtown Clearwater's 4th Friday - Party on Cleveland Street, a monthly event coordinated by the Clearwater Downtown Partnership. The DDB sponsored the inaugural DDB Wreath Decorating Contest, Ciclovia - a multi-cultural, car-free bicycle event, Clearwater Fashion Show 5-day event and Miles for Hope, a fund raiser for brain cancer survivors. These events are just a few of the many events celebrated and enjoyed by our residents and visitors from around the world. Phasing Out of Main Street Program The Economic Development and Housing Department administered the City's Main Street Program through a full-time Main Street Coordinator and four standing committees: the Joint Venture Committee, the Promotion Committee, the Design Committee, and the Economic Development Committee. The Economic Development Director, as CRA Representative, chaired the Joint Venture Committee containing representatives from each of the Main Street committees, the DDB, and the Spring Clean-Up CRA Board. In the fall of 2007, a reorganization of the Economic Development and Housing Department and the CRA took place to better serve the needs of a revitalizing downtown. As part of this process, a Downtown Manager was hired to spearhead the downtown efforts full-time. A decision was made to put the Main Street Design and Economic Development Committees on hold until after the Downtown Manager was hired. The Main Street Promotion Committee was active and coordinated the Third Annual Spring Pet Fair and the Cleveland Street Poetry Walk. As the DDB has supported the Main Street Program and its functions since its inception, staff recommended that the DDB be the umbrella organization that oversees business visitation and downtown promotions functions. These functions are "traditional" functions of the DDB. The DDB created two committees: • Business Visitation Committee - to visit new and existing businesses to solicit information on needs and issues for input to the DDB and staff • Promotions Committee - to support downtown events \/? L i Staff recommended the DDB establish "lead" members for the two committees. The "lead member" would co-chair the committee with a co-chair volunteer and report on committee activities at the DDB meetings. The volunteers that are currently participating in the committees could be retained and expanded. This would provide a streamlined coordination, enhance the participatory role of the DDB, improve the effectiveness of our Downtown/Cleveland Street District efforts, ensure better allocation of responsibilities among the stakeholder groups and reduce staff support requirements for duplicative efforts. The DDB accepted staff recommendation and agreed to a more active role with the two committees. The City has withdrawn as a Main Street Program participant. As a result of the phasing out of the Main Street Program, the DDB desired a mechanism to enhance coordination among downtown stakeholders during this timeframe. The Downtown Coordination Committee was created specifically for this function and is made up of the Executive Director of the CRA, the President/CEO of the Clearwater Regional Chamber of Commerce, the Chair of the DDB, and the Chair of the Clearwater Downtown Partnership. This committee meets on a monthly basis to discuss current and future activities and programs and their impact to downtown and how best for each of the stakeholders to address the issues. The Promotions Committee members were involved in a host of activities during this reporting year to include: coordinating the fall and spring cleanups in conjunction with Keep Pinellas Beautiful, the holiday lighting of the buildings and landscaping and the holiday lighting ceremony, the 4th Annual Spring Pet Festival and the Cleveland Street Poetry Walk. The Downtown Programs Coordinator attended the Florida Main Street Annual Conference held in Sept. 2009. The Downtown Programs Coordinator alerted downtown merchants about marketing opportunities through the Clearwater City Employees Vendor Discount Program and Healthy Choices for a Healthy Clearwater Program and assisted merchants with various issues, questions and concerns. Holiday Lighting The DDB financially supports the labor and materials to light the trees and building rooftops on Cleveland Street from Osceola to Myrtle Avenues. The official lighting ceremony is one of the festive events sponsored, in part, by Holiday Lighting 5 Wreath Contest the DDB in cooperation with the City of Clearwater. A lighting ceremony, with elected officials, will be held as part of the Clearwater Downtown Partnership's Miracle on Cleveland Street event. Attendees at this year's holiday light-up will enjoy participating in the People's Choice portion of the inaugural DDB Wreath Decorating Contest, hearing live music, refreshments, 20 tons of snow on a toboggan run and visiting with Santa Claus. Facade Improvement Grant The CRA continues to offer a Fagade/Storefront Improvement Grant to new and existing businesses that are located outside of the Cleveland Street District boundaries, but within the existing CRA boundaries. The Fagade Improvement Grant encourages aesthetic improvements and retention of character in the urban design district. The grant currently offers a maximum of $5,000 per building owner or tenant. The funding formula is a 50/50 split between the applicant and CRA. During this reporting period, one property owner was approved and received a $5,000 grant. Cleveland Street Maintenance The CRA provided for the general maintenance of planters, bricks, street furniture, and updating the planter flowers twice a year. Parks and Beautification staff handled daily trash removal on the sidewalks. The CRA funded the pressure washing of the sidewalks in March 2009. The DDB and CRA allocated $10,000 from their Cleveland Street Maintenance line items. 01 26 City of Clearwater, Florida Community Redevelopment Agency Governmental Balance Sheet for the year ended September 30, 2009 General Capital Total Projects Govemnmental Funds Assets Cash on Hand and in Banks $ 743,097 Interest Receivable 6,741 Other Receivables 39,241 Land Held for Resale 1,914,050 $ 5,686,767 $ 6,429,864 42,778 49,519 - 39,241 - 1,914,050 Wtal $ 2,703,129 $ 5,729,545 $ 8,432,674 Liabilities Accounts and Contracts Payable $ 1,838 $ 763 $ 2,601 Due to Other Government Entities 48,000 - 48,000 Advances from Other Funds 700,000 - 700,000 Deferred Revenue 39,241 - 39,241 Total Liabilities $ 789,079 $ 763 $ 789,842 Fund Balances Reserved for Land Held for Resale Unreserved, Reported in Capital Projects Fund Total Fund Balances $ 1,914,050 - 1,914,050 - 5,728,782 5,728,782 $ 1,914,050 $ 5,728,782 $ 7,642,832 ZO \'? City of Clearwater, Florida Community Redevelopment Agency Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Comparison Schedule - General Fund for the year ended September 30, 2009 Original Final GAAP Variance with Basis Actual Final Budget Amounts Positive [Negative) Expenditures Current - Economic Environment Excess of Revenues of Expenditures Other Financing Sources [Uses] Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances $ 286,846 $ 286,585 $ 174,591 $ 111,994 Fund Balance, End of Year $ 1,914, 050 $ 1,914, 050 $ 1,914, 050 $ - 194 28 I I Ae Community Redevelopment Agency Board Frank Hibbard, Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul F. Gibson, Councilmember Bill Jonson, Councilmember Executive Director of the Community Redevelopment Agency and Assistant City Manager ?kod Irwin Director of Economic Development and Housing Geraldine Campos Lopez