12/13/2011
COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES
CITY OF CLEARWATER
December 13, 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 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 agenda order although not
necessarily discussed in that order.
1. Call to Order – Chair Frank Hibbard
The meeting was called to order at 8:30 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the October 31, 2011 CRA Meeting as submitted in
written summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the October 31, 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 an amendment to the Development Agreement between the
Community Redevelopment Agency and Water's Edge Real Estate Acquisition,
LP, successor in interest to Opus South Development, LLC and authorize the
appropriate officials to execute same.
The Community Redevelopment Agency and the Developer's predecessor in
interest, OPUS SOUTH DEVELOPMENT, L.L.C., entered into a Development
Agreement dated December 19, 2006, as evidenced by that certain Memorandum
of Development Agreement dated December 22, 2006, and recorded in Official
Record Book 15557, Page 1062 of the Public Records of Pinellas County, Florida,
Community Redevelopment Agency 2011-12-13 1
to develop certain parcels located at the southwest corner of the intersection of
Cleveland Street and Osceola Avenue, Clearwater, Florida, for a development
known as the Water's Edge project (Water's Edge Project or Project) in the
community redevelopment area of the City. Subsequent thereto, OPUS SOUTH
DEVELOPMENT, L.L.C. and its related entities, assigned their rights under the
Development Agreement to Water's Edge Clearwater, LLC, a Delaware limited
liability company, which subsequently assigned its rights under the Development
Agreement to Developer pursuant to the Assignment and Assumption Agreement
recorded August 5, 2010 in Official Record Book 16993, Page 1845 of the Public
Records of Pinellas County, Florida. This Development Agreement contained
certain assurances and incentives to ensure the success of the Project, including
provisions for annual reimbursement of impact fees paid and annual
reimbursement of a portion of the costs of sidewalk and site improvements, which
reimbursements are to be paid from a portion of the ad valorem taxes for the
Project. The Agency paid said annual reimbursements to Developer for the last
two years, (2009/10 Annual Reimbursement Payment and 2010/11 Annual
Reimbursement Payment, respectively); however, the calculation method utilized
by the Agency for the 2009/10 Annual Reimbursement Payment differed from the
calculation method utilized by the Agency for the 2010/11 Annual Reimbursement
Payment. It is Developer's position that the proper and intended calculation
method was the calculation method utilized by the Agency for the 2009/10 Annual
Reimbursement Payment. Therefore, it is the parties desire to amend the
Development Agreement to reflect the intended calculation method as utilized by
the Agency for the 2009/10 Annual Reimbursement Payment.
The City Attorney said the development agreement included language that the City
would reimburse the project for streetscape improvements and impact fee costs via TIF
(Tax Increment Financing) generated by the project. The language, as drafted, stated
the project would be entitled to the developer’s ad valorem contribution; it did not
include the contributions for sold units. The City Attorney said the Developer believes he
is entitled to reimbursement for a portion of the ad valorem taxes paid by units that have
been sold. The proposed amendment would allow the Developer to be reimbursed 50%
of the ad valorem taxes paid for the entire project, not just the units owned by the
Developer.
In response to questions, Economic Development and Housing Director Geri Campos
Lopez said staff calculated the reimbursement payment based on 50% of the taxes
generated for entire project; which was set aside in the 6-yr plan. The reimbursement
payment for the first year was fine; there was a $70,000 gap for the second year.
Discussion ensued concerning the legislative intent of the development agreement.
Community Redevelopment Agency 2011-12-13 2
In response to questions, Water's Edge representative Gina Grimes said the
development agreement, as drafted, defined developer to include successors and
assigns. It was always contemplated the developer would sell all the units and the
reimbursement payment would come from the project's annual ad valorem taxes. Ms.
Campos Lopez said the calculated reimbursement for 50% of the project's total TIF for
the next two years, in addition to what has already been paid, would be approximately
$800,000.
Trustee John Doran moved to approve an amendment to the Development Agreement
between the Community Redevelopment Agency and Water's Edge Real Estate
Acquisition, LP, successor in interest to Opus South Development, LLC 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 8:52 a.m.
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Chair
Attest Community Redevelopment Agency
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Community Redevelopment Agency 2011-12-13 3