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09/04/2012 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER September 4, 2012 Present: Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Trustee Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee Jay E. Polglaze. 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, 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 George N. Cretekos The meeting was called to order at 1:36 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the August 13, 2012 CRA meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the August 13, 2012 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 2012-2013 Community Redevelopment Agency Preliminary Budget and adopt Resolution 12-02. The major highlights of the Fiscal Year 2012-2013 proposed preliminary budget are as follows: CRA 2012-09-04 1 Tax Increment revenues decreased by $ 492,957 due largely to the elimination of the $ 417,432 Fiscal Year 2011-2012 revenue from the sale of environmental tax credits. It also reflects a decrease in Taxable Value of 1.24% in the old Downtown CRA (Downtown) and a 9.63% decrease in the expanded CRA area (East Gateway). Operating expenditures are decreased by $ 21,011, or 4 %, largely due to the decrease in pass through funds for the DDB as a result of the lower assessed values and an assessment of Fiscal Year 2011-2012 operating budget expenditures. $ 75,000 has been included in the budget to fund the Blast Friday Memorandum of Agreement and $148,000 for the interim Capital Theatre support agreement. Transfers Out to various projects are as designated in the CRA Six Year Plan. The Proposed Fiscal Year 2012-2013 Agency budget is consistent with the Six Year Plan. Trustee Doreen Hock-DiPolito moved to approve the Fiscal Year 2012-2013 Community Redevelopment Agency Preliminary Budget. The motion was duly seconded and carried unanimously. Resolution 12-02 was presented and read by title only. Trustee Jay Polglaze moved to adopt Resolution 12-02. The motion was duly seconded and upon roll call, the vote was: 'Ayes Chair George N. Cretekos, Trustee Paul Gibson, Trustee Doreen Hock- DiPolito, Trustee Bill Jonson, and Trustee Jay E. Polglaze. "Nays None. 3.2 Approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management services during Fiscal Year 2012-2013 in the amount of$63,724 and refund the CRA tax increment fee of$136,709 and authorize the appropriate officials to execute same. 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 $136,709 according to the Pinellas County Property Appraiser's office. In a spirit of cooperation to further the downtown redevelopment plan, the CRA Trustees CRA 2012-09-04 2 executed the first Interlocal Agreement in Fiscal Year 1999-2000 to provide personnel, administrative and management services 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 an agreement in which the DDB agrees to perform certain responsibilities and functions including funding projects and programs consistent with 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. 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, operation and maintenance of the boat slips, docks, boardwalk, promenade and related facilities that were 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 $63,724 for the services agreed to in the Interlocal Agreement. The DDB approved the Interlocal Agreement at their meeting on August 1, 2012. Trustee Paul Gibson moved to approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management services during Fiscal Year 2012-2013 in the amount of$63,724 and refund the CRA tax increment fee of$136,709 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 3.3 Approve an Interlocal Agreement between the CRA and the City of Clearwater to provide CRA funding in Fiscal Year 2012/2013 in the amount of$149,043.67 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 CRA 2012-09-04 3 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. Funding will be from the CRA East Gateway Project account (388-94849). CRA Executive Director Rod Irwin said Community Policing Services is an operating expenditure allowance under Florida Statutes, Chapter 163, as long as services are expended within the CRA area. Economic Development and Housing Director Geri Campos Lopez said the CRA will fund two officers. Trustee Doreen Hock-DiPolito moved to approve an Interlocal Agreement between the CRA and the City of Clearwater to provide CRA funding in Fiscal Year 2012/2013 in the amount of$149,043.67 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. 3.4 Approve relocation build out assistance loan-to-grant for Blue Dahlia Marketplace, in conjunction with their desire to move from the 409 Cleveland Street building, as a result of the City acquisition of said premises for the Capital Theatre use, to 410 Cleveland Street and authorize the appropriate officials to execute same. The Blue Dahlia Marketplace is being displaced from their current location as a result of the incorporation of the 409 Cleveland Street building into the Capital Theatre. The owner has entered discussions with CRA staff concerning a retail assistance grant to underwrite the build out cost of 1000 sq. ft. +/- in the 410 Cleveland Street building, in exchange for a lease rate from the landlord consistent with her ability to pay. Build out assistance is estimated to be $ 25,000. The landlord and tenant have agreed to a lease term of at least five (5) years to assure a continued retail presence. CRA 2012-09-04 4 CRA staff support the request, as Blue Dahlia Marketplace has been a pioneer retail establishment in the Cleveland Street District redevelopment strategy, and its continued operation in the Cleveland Street district is facilitative of the redevelopment strategy of the CRA. However, due to current economic conditions, the business is unable to meet commercial lease rates and CRA build out assistance will allow a lease rate supportable for the five-year term. The premises to be occupied by the Blue Dahlia is a carve-out from the space to be renovated for the Clearwater Regional Chamber of Commerce, and the contractor is willing to phase and build out the Blue Dahlia space to facilitate occupancy on, or before, November I, 2012 as requested by Ruth Eckerd Hall. Staff seeks CRA Board approval for the contractor to undertake build out for the Blue Dahlia space, and to reimburse the contractor for approved work completed, due to the unusual circumstances. Funds would be from CRA Retail Attraction and Assistance Fund. Trustee Doreen Hock-DiPolito declared a conflict and abstained from voting. Trustee Paul Gibson moved to approve relocation build out assistance loan-to-grant for Blue Dahlia Marketplace, in conjunction with their desire to move from the 409 Cleveland Street building, as a result of the City acquisition of said premises for the Capitol Theatre use, to 410 Cleveland Street and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously; Trustee Hock-DiPolito abstained from voting. 3.5 Provide direction concerning the Clearwater Regional Chamber of Commerce request for a relocation build out assistance grant in conjunction with their move from the Lokey Building, 401 Cleveland Street, to new leased premises at 410- 412 Cleveland Street. The Clearwater Regional Chamber of Commerce has submitted a request for relocation build out assistance to facilitate their relocation from 401 Cleveland Street, to a new headquarters location at 401 Cleveland Street. The landlord has agreed to a reduced rental structure for the Chamber, but will not provide build out. The Chamber seeks CRA assistance in funding the build out. Staff seeks direction on whether to assist the Chamber, and if so, in what amount and from what source of funds. Trustee Doreen Hock-DiPolito declared a conflict and abstained from voting. CRA 2012-09-04 5 In response to questions, CRA Executive Director Rod Irwin said the CRA has a retail attraction assistance program for property owners relocating a business in the CRA. The CRA also provides relocation assistance for restaurants and technology companies. Since the property owner of the Blue Dahlia is not participating, a Promissory Note from the Blue Dahlia Marketplace owner for a five-year lease has been provided to the City. Mr. Irwin said build out assistance for the Chamber is estimated at $50,000 maximum. Trustee Hock-DiPolito said the estimated build out cost for the Blue Dahlia will be approximately $17,000 and the Chamber's estimate is approximately $67,000. The City Attorney said Trustee Hock Di-Polito's firm has been providing services pro Bono; the firm will not be doing the work. Clearwater Regional Chamber of Commerce President Bob Clifford said the Chamber wishes to remain in Downtown and will be investing an additional $35,000 to $50,000 for interior renovations. The Blue Dahlia is expected to be working from the new location on November 1, 2012 and the Chamber on December 1, 2012. The Chamber's current lease agreement is for five years with two two-year extensions. Mr. Clifford said the Chamber allows the Downtown Merchants Association, Clearwater Economic Development, Clearwater Arts Alliance, and the Capitol Theater to use the Meeting Room at no charge. In response to a question, Mr. Irwin said the CRA is not establishing a build out assistance program for non-profits. The request before the Trustees is specific to the Clearwater Regional Chamber of Commerce. Staff would bring individual cases to the CRA for further consideration. A concern was expressed regarding participating in a discussion after one has recused themselves; it was suggested that council rules be amended to disallow discussion after abstaining from voting. Staff was directed to issue a matching grant for the Chamber, 50:50, with the CRA's contribution not to exceed $50,000. There was consensus to pursue a 5-year lease if a 10-year lease is not possible. Trustee Jay Polglaze moved to approve a relocation build out assistance grant for the Clearwater Regional Chamber of Commerce. The motion was duly seconded and carried unanimously; Trustee Hock-DiPolito abstained from voting. Trustee Paul Gibson moved to approve a grant agreement that includes an unsecured non-recourse note; a 5-year term, to the extent the landlord is unwilling to go longer; a 50:50 match on all expenditures with CRA contribution not to exceed $50,000; and CRA 2012-09-04 6 amortization over the 5-year term. The motion was duly seconded and carried unanimously; Trustee Hock-DiPolito abstained from voting. 4. Other Business — None. 5. Adjourn The meeting was adjourned at 2:38 p.m. ----cteorLe. 6, Crt 1:0S Chair Attest `"W111111111//,,,� Community Redevelopment Agency City Clerk }� 1�� ZE �, 4"...............) w 41 iihniuminto CRA 2012-09-04 7 FORM 8B MEMORANDUM OF VOTING CONFLICT FOR COUNTY, MUNICIPAL, A ND OTHER LOCAL PUBLIC OFFICERS LAST NrAlc T NAM IDDLE N -`) NAME OF B D,COUNCIL,COMMISSION,AUTHORITY,OR COMMITTEE MAILING ADD ESS — THE BOARD,COUNCIL,COMMISSION,AUTHORITY OR COMMITTEE ON Q WHICH I SERVE IS A UNIT OF: O�v■L" -� � CITY --- COU l TY El COUNTY DOTHER LOCAL AGENCY \1roAt IS NAME OF POLITICAL SUBDIVISION: DATE ON WHICH VOTE OCCURRED 9 MY POSITION IS: \ LECTIVE EI APPOINTIVE WHO MUST FILE FORM 8B This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board, council, commission, authority, or committee. It applies equally to members of advisory and non-advisory bodies who are presented with a voting conflict of interest under Section 112.3143, Florida Statutes. Your responsibilities under the law when faced with voting on a measure in which you have a conflict of interest will vary greatly depending on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form before completing the reverse side and filing the form. INSTRUCTIONS FOR COMPLIANCE WITH SECTION 112.3143, FLORIDA STATUTES A person holding elective or appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure which inures to his or her special private gain or loss. Each elected or appointed local officer also is prohibited from knowingly voting on a mea- sure which inures to the special gain or loss of a principal (other than a government agency)by whom he or she is retained (including the parent organization or subsidiary of a corporate principal by which he or she is retained);to the special private gain or loss of a relative; or to the special private gain or loss of a business associate. Commissioners of community redevelopment agencies under Sec. 163.356 or 163.357, F.S., and officers of independent special tax districts elected on a one-acre, one-vote basis are not prohibited from voting in that capacity. For purposes of this law, a "relative" includes only the officer's father, mother, son, daughter, husband, wife, brother, sister, father-in-law, mother-in-law, son-in-law, and daughter-in-law. A"business associate" means any person or entity engaged in or carrying on a business enterprise with the officer as a partner,joint venturer, coowner of property, or corporate shareholder(where the shares of the corporation are not listed on any national or regional stock exchange). . . . . . . . . . . . . . . . . ELECTED OFFICERS: In addition to abstaining from voting in the situations described above, you must disclose the conflict: PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly the nature of your interest in the measure on which you are abstaining from voting;and WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for recording the min- utes of the meeting,who should incorporate the form in the minutes. . . . . . . . . . . . . . * * . APPOINTED OFFICERS: Although you must abstain from voting in the situations described above, you otherwise may participate in these matters. However, you must disclose the nature of the conflict before making any attempt to influence the decision,whether orally or in writing and whether made by you or at your direction. IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH THE VOTE WILL BE TAKEN: • You must complete and file this form(before making any attempt to influence the decision)with the person responsible for recording the minutes of the meeting,who will incorporate the form in the minutes. (Continued on other side) APPOINTED OFFICERS (continued) • A copy of the form must be provided immediately to the other members of the agency. • The form must be read publicly at the next meeting after the form is filed. IF YOU MAKE NO ATTEMPT TO INFLUENCE THE DECISION EXCEPT BY DISCUSSION AT THE MEETING: • You must disclose orally the nature of your conflict in the measure before participating. • You must complete the form and file it within 15 days after the vote occurs with the person responsible for recording the minutes of the meeting,who must incorporate the form in the minutes.A copy of the form must be provided immediately to the other members of the agency, and the form must be read publicly at the next meeting after the form is filed. DISCLOSURE OF LOCAL OFFICER'S INTEREST I, ef-o s>,s T�,,b hereby disclose that on ‹...____I\ \-- 20 (a)A measure came or will come before my agency which(check one) ❑ inured to my special private gain or loss; "ti V inured to the special gain or loss of my business associate, \ \)— ‘N(' G,,r ; inured to the special gain or loss of my relative, ; inured to the special gain or loss of , by whom I am retained;or inured to the special gain or loss of ,which is the parent organization or subsidiary of a principal which has retained me. (b)The measure before my agency and the nature of my conflicting interest in the measure is as follows: C 'ik It/Li/11S 3.4 Chid 3.5 I t \ p, 1 ` 1 f. . 4:41)i, _ Mt.. Signature Date Filed Si 9 NOTICE: UNDER PROVISIONS OF FLORIDA STATUTES §112.317, A FAILURE TO MAKE ANY REQUIRED DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY ONE OR MORE OF THE FOLLOWING: IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE OR EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND, OR A CIVIL PENALTY NOT TO EXCEED$10,000. CE FORM 8B-EFF.1/2000 PAGE 2