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10/31/2011 COMMUNITY REDEVELOPMENT AGENCYMEETING MINUTES CITY OF CLEARWATER October 31, 2011 Present: Chair/Trustee Frank Hibbard, Trustee George N. Cretekos, Trustee Paul Gibson, and Trustee Bill Jonson. Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague – Official Records and Legislative Services Coordinator. 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 9:07 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the August 29, 2011 CRA Meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the August 29, 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 a parking agreement between the Community Redevelopment Agency and Sports Facilities Advisory to pay the cost of additional parking needed, not to exceed $6,480, for the company’s expansion in the CRA Downtown Business District and authorize the appropriate officials to execute same. The Sports Facilities Advisory (SFA) corporate headquarters office is located at 600 Cleveland Street, Suite 910, and provides services to new and existing sports and recreation center operators. The services fall into four (4) main categories (Plan, Open, Manage, Optimize) which encompass business plans, feasibility studies, economic impact studies, funding support, staff recruitment and development, marketing, management systems, and asset management services for sport and recreation centers. SFA is regularly engaged by economic development entities, government agencies, conventions and visitors bureaus, Community Redevelopment Agency 2011-10-31 1 sports commissioners and parks and recreation departments. The goal of the SFA's economic development clients is to develop sports tourism destinations that have a positive economic impact. SFA also offers services for the evaluation of eco-tourism and non-traditional sports. The City of Clearwater receives great exposure as the operations of this business take the management team around the world, and SFA also brings potential clients to their offices in Downtown Clearwater. They have participated in notable projects in Saudi Arabia, Canada, the Bahamas, and in more than 20 states in the United States of America. SFA also holds four conferences annually in Clearwater. SFA estimates that between their visiting clients and conferences, over one hundred (100) clients visit Clearwater annually.SFA has a three-year lease with 2,818 square feet of office space and their lease is about to expire. They currently have seven employees and have indicated that they would like to add three to six new jobs with an average wage of $50,000+ over a four-year period. Given the economical pricing of the current office market, SFA is currently negotiating office space in other locations and intend to make a decision quickly. However, they would like to stay at 600 Cleveland (Bank of America Building) and are negotiating with the leasing agent for a new 4-year lease. Existing space will be reconfigured with additional build out to be provided by the landlord. SFA will be investing in additional furniture and equipment. As part of the lease negotiations, SFA has indicated a need for three additional parking spaces in the Garden Avenue Garage. Unfortunately, the Bank of America office building cannot accommodate the additional employees. The Bank of America building has a parking ratio of roughly 2.7 spaces per 1,000 square feet of leasable space. In today's market, office space demands ratios in the 4.0 to 6.0 spaces per 1,000 square feet. This trend toward higher parking ratios is having a negative impact on the competitiveness of older office properties, especially in downtown areas, since they cannot compete with newer, suburban properties. An incentive is needed to offset that competitive disadvantage and allow this important expansion in our Downtown. After several meetings with the leasing agent and SFA's Owner/Chief Operating Officer to enhance this business retention and expansion in the downtown business district and maintain a competitive advantage over other locations, staff is recommending approval of a parking incentive. The parking agreement outlines the CRA's offer of three (3) parking spaces in the Garden Avenue Garage for four years as an incentive to renew their lease at 600 Cleveland Street, retain the current seven (7) jobs with an annual payroll of $329,000, and add three (3) new jobs for a new annual payroll that will exceed $463,390. An estimated $1.3 million in personal income will have been generated from the ten (10) jobs maintained at the Sports Facilities Advisory operation in the downtown Clearwater business district at the end of the four-year parking incentive. The terms of the parking agreement would be as follows: Three spaces for 4 years for a total incentive of $6,480.SFA must create one (1) job above the median wage of $40,724 within one (1) year of agreement. An Community Redevelopment Agency 2011-10-31 2 Three spaces for 4 years for a total incentive of$6,480.SFA must create one (1) job above the median wage of$40,724 within one (1) year of agreement. An additional two (2)jobs will be created above the 115% median wage of$46,833 within two (2) years of the agreement. All three jobs will need to remain in place through the agreement terms (4 years). The term of the parking agreement will not exceed four years (4) from the date of execution of the parking agreement. Economic Development staff will confirm job creation through payroll reports.SFA agrees to maintain its leased facilities in the CRA Downtown Business District for a period of not less than four (4) years from the date of the parking agreement.SFA agrees to pay for each refundable card deposit required by the City parking system. Each cardholder will be required to complete a standard monthly parking application. This parking incentive will be conditional upon confirmation of at least seven full-time employees at its downtown location verified by a notarized letter from the owner/COO and confirmed by payroll reports. Employment verification is required semi-annually. Funding is available in the CRA's 99963 Economic Development Incentives line item for this project. Trustee George N. Cretekos moved to approve a parking agreement between the Community Redevelopment Agency and Sports Facilities Advisory to pay the cost of additional parking needed, not to exceed $6,480, for the company's expansion in the CRA Downtown Business District and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4. Other Business — None. 5. Adjourn The meeting was adjourned at 9:14 a.m. Chair Attest Community Redevelopment Agency k olp City Clerk ,a @'Q. P;�E�AF�-�^%, 1 I Vie• coo vas.: eeOat nn OP`\````� Community Redevelopment Agency 2011-10-31 3