08/29/2011 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES
CITY OF CLEARWATER
August 29, 2011
Present: Chair/Trustee Frank Hibbard, Trustee George N. Cretekos, Trustee
John Doran, Trustee Paul Gibson, and Trustee Bill Jonson.
Also Present: William B. Horne 11 - City Manager, Jill S. Silverboard - Assistant City
Manager, Rod Irwin — CRA Executive Director/Assistant City Manager,
Pamela K. Akin - City Attorney, and Rosemarie Call - City Clerk.
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 9:52 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the August 15, 2011 CRA meeting as submitted in
written summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the August 15, 2011 CRA meeting
as submitted in written summation by the City Clerk. The motion was duly seconded
and carried unanimously.
3. CRA Items
3.1 Approve the Fiscal Year 2011-2012 Community Redevelopment Agency
Preliminary Budget and adopt CRA Resolution 11-01.
The major highlights of the Fiscal Year 2011-2012 proposed preliminary budget
are as follows:
Tax Increment revenues decreased by $ 194,925 due to a decrease in Taxable
Value of 5.8% in the old Downtown CRA (Downtown) and a 13.3% decrease in
the expanded CRA area (East Gateway). Operating expenditures are decreased
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by $18,100, or 3.5%, largely due to the decrease in pass through funds for the
DDB as a result of the lower assessed values. $ 75,000 has been included in the
budget to fund the Blast Friday Memorandum of Agreement.
This year the Revenues and Transfers In section of the budget anticipates the
sale of Environmental Cleanup Tax credits in the 1 st Quarter of the fiscal year,
and receipt of$ 417,432 therefrom.
Transfers Out to various projects are as designated in the CRA Six Year Plan, a
copy of which is attached for your review and context.
The Proposed Fiscal Year 2011-2012 Agency budget is consistent with the Six
Year Plan.
In response to a question, CRA Executive Director Rod Irwin said $1,000,040 was
committed to the Clearwater Center, per the development agreement, and $534,000
has been distributed. The $75,000 grant to Blast Friday is to help incentivize and
market events in downtown during this tough economic period; drawing individuals to
events and creating business opportunity for downtown merchants.
Trustee John Doran moved to approve the Fiscal Year 2011-2012 Community
Redevelopment Agency Preliminary Budget. The motion was duly seconded and
carried unanimously.
Resolution 11-01 was presented and read by title. Trustee George N. Cretekos moved
to adopt Resolution 11-01. The motion was duly seconded and upon roll call, the vote
was:
"Ayes Mayor Frank Hibbard, Trustee George N. Cretekos, Trustee John Doran,
Trustee Paul Gibson, and Trustee Bill Jonson.
"Nays None.
3.2 Approve an Interlocal Agreement between the CRA and the City of Clearwater to
provide CRA funding in Fiscal Year 2011/2012 in the amount of$145,796.57 to
underwrite the cost of additional Community Policing Services by the Clearwater
Police Department in the East Gateway CRA District, pursuant to the East
Gateway Five-Year Action Program and authorize the appropriate officials to
execute same.
The CRA approved the East Gateway District Five-Year Action Program on May
13, 2008. The Action Program responded to public input on the issues of drug
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dealing, prostitution and street crime by including an action item for increased
police presence and crime reduction within the East Gateway District.
An allowable funding source of this action item is the use of CRA Tax Increment
Financing (TIF) funds. Florida Statues allows for the use of TIF funds for
community policing innovations in Community Redevelopment Areas. The CRA
and Clearwater Police Department have reached an agreement on a proposed
scope of services and terms as delineated in the Interlocal Agreement. Included in
the scope is the delineation of specific, measurable crime reduction targets by
which to monitor the success of the initiative as well as providing clear language
required by statute assuring that the resources are applied to the CRA/East
Gateway area.
Trustee Paul Gibson moved to approve an Interlocal Agreement between the CRA and
the City of Clearwater to provide CRA funding in Fiscal Year 2011/2012 in the amount
of$145,796.57 to underwrite the cost of additional Community Policing Services by the
Clearwater Police Department in the East Gateway CRA District, pursuant to the East
Gateway Five-Year Action Program and authorize the appropriate officials to execute
same. The motion was duly seconded and carried unanimously.
3.3 Approve the Interlocal Agreement with the Downtown Development Board (DDB)
to provide personnel, administrative and management responsibilities during
Fiscal Year 2011-2012 in the amount of$62,170 and refund the CRA tax
increment fee of$144,252.
Florida Statutes 163.387 requires all taxing authorities, which includes the DDB,
to make an annual appropriation in an amount equal to the incremental increase
in the ad valorem revenue within the CRA area. The DDB's increment payment is
$144,252 according to the Pinellas County Property Appraiser's office.
In a spirit of cooperation to further the downtown redevelopment plan, the CRA
Trustees executed the first Interlocal Agreement in Fiscal Year 1999-2000 to
provide personnel, administrative and management responsibilities to the DDB
and to refund the difference between the increment payment and the
management fee. This is the twelfth fiscal year that the CRA would enter into the
agreement. Pursuant to Florida Statute 163.01, the CRA and DDB can enter into
this agreement in which the DDB agrees to perform certain responsibilities and
functions including funding projects and programs consistent with and in
furtherance of the downtown redevelopment plan. The intent of this agreement is
for the DDB and the CRA to work collaboratively on projects and programs that
further downtown goals and objectives. For the second year in a row, downtown
retail and restaurant recruitment programs and downtown events are the focus for
the CRA and the DDB collaboration.
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The management of the DDB by CRA staff enables the CRA and the DDB to
utilize the public dollars more efficiently. The agreement also outlines the DDB's
commitment to financially support the construction debt service, operation and
maintenance of the boat slips, docks, boardwalk, promenade and related facilities
proposed to be constructed on the Downtown Waterfront. The DDB has made
yearly contributions of$50,000 since April 2007. Due to the economy, the City
determined that it was not in the best interest of the City and the taxpayers to
borrow funds for construction of the boat slips. Instead, the City paid for the
majority of the construction costs from City reserves.
Any of the annual DDB contribution not needed for operations of the boat slips will
be used to reimburse the City for the cost of construction. The intent of the DDB is
to contribute up to $50,000 a year for 10 years for a total not to exceed $500,000.
The DDB shall pay the CRA $62,170 for the services agreed to in the Interlocal
Agreement. The DDB approved the Interlocal Agreement at their meeting on
August 3, 2011.
Trustee Bill Jonson moved to approve the Interlocal Agreement with the Downtown
Development Board (DDB) to provide personnel, administrative and management
responsibilities during Fiscal Year 2011-2012 in the amount of$62,170 and refund the
CRA tax increment fee of$144,252. The motion was duly seconded and carried
unanimously.
3.4 Approve the Grant Funding Agreement between the CRA and Clearwater
Downtown Events, Inc, a 501 c3 Not-for-Profit Corporation, for the provision of a
revised and enhanced schedule of Blast Friday events in the Cleveland Street
District; approve a $75,000 grant to Clearwater Downtown Events, Inc. to
underwrite a portion of the expanded Blast Friday Program; and authorize the
appropriate officials to execute same.
CRA staff and the Clearwater Downtown Events, Inc., volunteer group have had
discussions concerning a mutual desire of the group, and CRA staff, to expand
and improve the Blast Friday event so that each event provides a draw
approaching the highly successful Miracle on Cleveland Street in December.
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
Community Redevelopment Agency 2011-08-29 4
restaurant/retail customers and investors to the Cleveland Street District through
attendance at District events.
With the state of the economy and the status of the new residential buildings in
downtown, the two major attractors to accomplish the CRA objectives delineated
above are: 1) the Capitol Theatre and 2) the 4th Friday events. The Capitol
Theatre is expanding program offerings and, the CRA staff and the 4th Friday
volunteer group wish to see an increased frequency and quality of the 4th Friday
events to create 10 signature events (similar in draw to the Miracle on Cleveland
Street at Christmas). This year, Clearwater Downtown Events, Inc., has proposed
a business concept to restructure and enhance their program operations,
including a management and production agreement with Ruth Eckerd Hall, with a
financing plan based upon, in part, a CRA grant of$75,000 and a Downtown
Development Board grant of$50,000. The remainder of costs would be through
sponsorships and/or Ruth Eckerd hall participation. The intent of the new model is
for the Clearwater Downtown Events group to leverage the production and
marketing expertise and capacity of Ruth Eckerd hall to materially enhance the
quality and attendance at the events. Downtown Events, Inc. would continue to
have overall responsibility for the Blast Friday series and be responsible for the
grant administration.
The attached Grant Funding Agreement memorializes the discussions and
provides for a $75,000 grant appropriation from the CRA Redevelopment Fund to
partially fund the $181,878 budget. CRA staff recommends approval of the Grant
Funding Agreement and approval of$75,000 to fund the CRA contribution.
Trustee John Doran moved to approve the Grant Funding Agreement between the CRA
and Clearwater Downtown Events, Inc, a 501c3 Not-for-Profit Corporation, for the
provision of a revised and enhanced schedule of Blast Friday events in the Cleveland
Street District; approve a $75,000 grant to Clearwater Downtown Events, Inc. to
underwrite a portion of the expanded Blast Friday Program; and authorize the
appropriate officials to execute same. The motion was duly seconded and carried
unanimously.
3.5 Approve an Interlocal Agreement between the Community Redevelopment
Agency of the City of Clearwater, Florida (Agency) and the City of Clearwater
(City) that outlines responsibilities for the environmental cleanup of the CarPro
site and authorize the appropriate officials to execute same.
The purpose and intent of this Agreement is to provide a means by which the
Agency and the City can mutually work together to use their existing and
anticipated resources available to meet specific expenses incurred for the
environmental cleanup of real property known as the CarPro (Project). It is also
the purpose of this Agreement, through assistance and cooperation, to define and
Community Redevelopment Agency 2011-08-29 5
delineate the responsibilities and obligations of the parties in order to accomplish
the mutually beneficial Project. The CarPro site in the East Gateway area of the
downtown has long been considered an impediment to the redevelopment of the
area. For this reason, the CRA acquired this property in August 2010. Due to the
value added incurred in obtaining this parcel, the CRA accepted these parcels as
is and without warranties, and is responsible for the demolition of all structures,
and for any future environmental due diligence and mitigation.
The City received funds from EPA as part of the Brownfields Cleanup Revolving
Loan Fund and determined that the best use of the remaining funds would be for
the cleanup of the CarPro site. The City also determined that the Agency is in a
better position to convey the Site to a developer or other private entity if it
provides for the environmental cleanup of the Site. Resolution 11-19 authorizes
a loan up to $325,440 to the CRA for the cleanup of the site. A main objective of
the Agreement is to outline that the City, rather than the CRA, is in a better
position to enter directly into contracts for environmental cleanup of the Project.
The cleanup of the project is currently estimated at $325,440, confirmed by an
engineer's estimate. While we do not anticipate that these costs will be exceeded,
the Agreement allows the City, through its Brownfields program or other sources,
or the agency to cover the additional cost of remediation and preparing the site for
redevelopment. The funds appropriated by the City from the BCRLF will have a
zero interest rate and be utilized by the CRA for this purpose and shall be repaid
to the BCRLF by the City or the CRA either from: a) amounts repaid to the City or
the CRA from the private developer or another party to whom the CRA ultimately
conveys the Site following the environmental cleanup provided for herein; b) TIF
funds; c) the General Fund of the City through budget appropriations in
subsequent years so that such BCRLF may be made available by the City for the
environmental cleanup of the other sites; d) other means legally sufficient and
approved by EPA.
The repayment term is five years from the completion of the environmental
cleanup of the site as indicated by a site rehabilitation completion order (SRCO). It
is the intent of the CRA to use either sale proceeds, TIF, brownfields funds, and/or
environmental cleanup tax credit proceeds for the repayment of the loan. While
City general funds are not anticipated to be used, any payment from the City of
Clearwater General Fund is subject to the annual appropriations process. As
stated earlier, a portion of the loan may be discounted to reduce total funds due to
the BCRLF.
In response to questions, Economic Development and Housing Director Geri Campos
Lopez said the CarPro site is located at 1359 Cleveland Street. CarPro is within the
East Gateway district. The East Gateway Vision Plan is looking at future opportunities
that may be available if the environmental issues are addressed. Ms. Campos Lopez
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said the property will remain vacant, with no redevelopment opportunities, if the
environmental clean up is not performed.
Trustee George N. Cretekos moved to approve an Interlocal Agreement between the
Community Redevelopment Agency of the City of Clearwater, Florida (Agency) and the
City of Clearwater (City) that outlines responsibilities for the environmental cleanup of
the CarPro site and authorize the appropriate officials to execute same. The motion
was duly seconded and carried unanimously.
3.6 Accept the Brownfields Cleanup Revolving Loan Fund dollars in the amount of
$325,440 to meet specific expenses incurred for the environmental cleanup of
real property identified as Pinellas County parcel 15/29/15/64890/003/0010
known as the CarPro site per City Resolution 11-19.
In October 1999, the City Council authorized the City Manager to sign a Loan
Fund Agreement and Work Plan for the $500,000 award received from the United
States Environmental Protection Agency (EPA) for the Clearwater Brownfields
Cleanup Revolving Loan Fund (BCRLF). EPA awarded the City an additional
$700,000 in September 2006.
The BCRLF was structured to provide low-interest loans to parties interested in
the redevelopment of environmentally impaired properties. The BCRLF also
allows government entities to loan to other government agencies, but requires a
City resolution.
The first loan was made to the CRA for the environmental remediation of the
Clearwater Automotive property. The City determined that the best use of the
remaining loan funds from EPA would be for the cleanup of the CarPro site. The
City also determined that the CRA is in a better position to convey the Site to a
developer or other private entity if it provides for the environmental cleanup of the
Site.
For these reasons, the City Council adopted Resolution 11-19 authorizing the use
of$325,440 earmarked for loan funds provided to the City by the EPA as part of
the BCRLF to the Community Redevelopment Agency for the environmental
cleanup of the CarPro project. An interlocal agreement will outline the City and
CRA responsibilities.
The funds so appropriated by the City from the BCRLF will have a zero interest
rate and be utilized by the CRA for this purpose shall be repaid to such BCRLF by
the City or the CRA either from: a) amounts repaid to the City or the CRA from the
private developer or another party to whom the CRA ultimately conveys the Site
Community Redevelopment Agency 2011-08-29 7
following the environmental cleanup provided for herein; b) TIF funds; c) the
General Fund of the City through budget appropriations in subsequent years so
that such BCRLF may be made available by the City for the environmental
cleanup of the other sites; d) other means legally sufficient and approved by EPA.
Any payment from the City of Clearwater General Fund is subject to the annual
appropriations process. The repayment term is five years from the completion of
the environmental cleanup of the site as indicated by a site rehabilitation
completion order (SRCO).
A budget amendment will establish project 388-94869, Car Pro Site Clean Up, with
CRA funds representing the loan from the revolving loan agreement.
Trustee Paul Gibson moved to accept the Brownfields Cleanup Revolving Loan Fund
dollars in the amount of$325,440 to meet specific expenses incurred for the
environmental cleanup of real property identified as Pinellas County parcel
15/29/15/64890/003/0010 known as the Car Pro site per City Resolution 11-19. The
motion was duly seconded and carried unanimously.
4. Other Business — None.
5. Adjourn
The meeting was adjourned at 10:15 a.m.
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