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10/29/2012 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER October 29, 2012 Present: Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Trustee Bill Jonson, and Trustee Jay E. Polglaze. Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin, Rosemarie Call - City Clerk, and Nicole Sprague - Official Records and Legislative Services Coordinator. To provide continuity for research, items are listed 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 1:02 p.m. at City Hall. It was noted that Councilmember Doreen Hock-DiPolito was not in attendance because she was out of town. 2. Approval of Minutes 2.1 Approve the minutes of the October 15, 2012 CRA meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the October 15, 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 Purchase Contract for acquisition of real property located at 1005 Park Street, Clearwater, by the Community Redevelopment Agency of the City of Clearwater (CRA), with a purchase price of $210,000 and total expenditures not to exceed $255,000 including environmental assessments, closing costs and demolition expenses; approve the terms and conditions of the related temporary occupancy lease between the CRA the seller; authorize the appropriate officials to execute same, together with all other instruments required to affect closing; and, approve a transfer of $255,000 from CRA Project 388-94847, Clearwater Centre, to a new Project 388-94876, Park Avenue Property Acquisition, in the Community Redevelopment Agency 2012-10-29 1 amount of $255,000 to fund the acquisition and attendant expenses. The subject property is located at 1005 Park Street adjacent to CRA and City land holdings assembled as the Prospect Lake site. The parcel is approximately 25,667 square feet. The acquisition will provide the opportunity to vacate a portion of Park Street resulting in an additional 9,160 square feet of land area to which the CRA will hold fee title. If acquired, this property will be included in the forthcoming Request for Proposals and Qualifications for Development of the Cleveland Street and Prospect Lake Park Site. Addition of this parcel, and a subsequent vacation of a portion of Park Street, materially improves the functional use potential and developability of the Prospect Lake site. The contract provides for the CRA to cancel the contract without penalty should a Phase II environmental analysis indicate contamination on the site. The property owner currently leases portions of the property for commercial use. Two leases are on a month-to-month basis and the other has a term expiring on July 1, 2013. Staff has negotiated a lease (Leaseback) through July 1, 2013 for the seller’s continued occupancy of the property and the administration of the above-mentioned leases. Following the expiration of the Leaseback, the property will be vacated and prepared for the demolition of improvements. The purchase price is consistent with an independent appraisal performed on the property by James Millspaugh and Associates, Inc. The appraiser’s value conclusion provided an estimated range of value of the property as assembled with the Prospect Lake site between $205,000 and $235,000. Funding for this acquisition will be provided by a budget transfer from CRA project 388-94847, Clearwater Centre-1100 Cleveland Street and establishment of a new project 388-94876, Park Avenue Property Acquisition in the amount of $255,000. The funds previously committed to the Clearwater Centre project are no longer needed. Staff recommends approval, as this acquisition would materially increase the opportunity to achieve CRA redevelopment objectives on the Prospect Lake site. CRA Executive Director Rod Irwin said the closing is expected to occur by the end of the year. Trustee Jay Polglaze moved to approve the Purchase Contract for acquisition of real property located at 1005 Park Street, Clearwater, by the Community Redevelopment Agency of the City of Clearwater (CRA), with a purchase price of $210,000 and total expenditures not to exceed $255,000 including environmental assessments, closing costs and demolition expenses; approve the terms and conditions of the related temporary occupancy lease between the CRA the seller; authorize the appropriate officials to execute same, together with all other instruments required to affect closing; and, approve a transfer of $255,000 from CRA Project 388-94847, Clearwater Centre, Community Redevelopment Agency 2012-10-29 2 to a new Project 388-94876, Park Avenue Property Acquisition, in the amount of $255,000 to fund the acquisition and attendant expenses. The motion was duly seconded and carried unanimously. 3.2 Approve the Non-Exclusive Revocable License Agreement for Parking between the Community Redevelopment Agency (CRA) and the InterCultural Advocacy Institute, Inc. and authorize the appropriate officials to execute same. The InterCultural Advocacy Institute (ICAI) has partnered with the City of Clearwater and the Pinellas County Health Department and has proposed to create a farmers market in the East Gateway District. The ICAI has identified a critical need for parking spaces for vendors and has requested the use of a portion of the former Economy Inn lot owned by the CRA for the duration of the Clearwater Gateway Farmers Market. The Clearwater Gateway Farmers Market is anticipated to take place every Saturday from 9 am to 2 pm. The 2012-2013 season is expected to begin on November 17, 2012 and finish in May 2013. A Special Event Permit application has been submitted and received conditional approval. According to the proposed License Agreement, the ICAI will use the property only during the event time and the premises will be locked at all other times. The ICAI will be responsible for cleaning all trash and debris from the property after each Farmers Market event. The ICAI shall procure and maintain during the term of this License Comprehensive General Liability Insurance. The License Fee is $1.00 for the term of the License Agreement. Either party may terminate this License without cause upon 30 days written notice to the other party. The ICAI will fully restore the premises to at least the same quality of condition upon termination of the Agreement. The Clearwater Gateway Farmers Market meets the goals of the East Gateway Vision Plan approved by the CRA in January 2012. The Plan calls for the creation of a walkable district and events that will attract more visitors to the District and create activities for community interaction and economic opportunity. The farmers market would support local businesses by expanding their customer base, creating new supply lines, providing marketing opportunities, and improving their entrepreneurial skills. Furthermore, it would create a unique and positive identity that revitalizes the East Gateway District and instills neighborhood pride and a sense of ownership. In response to questions, Economic Development and Housing Director Geri Campos Lopez said city code allows temporary parking on a grass lot. Planning and Development Director Michael Delk said the special event would be issued a temporary parking permit. Ms. Campos Lopez said the planned start for the farmers market has been moved to January 12, 2013. The term of the agreement will be from January 2013 to May 2013. Community Redevelopment Agency 2012-10-29 3 Trustee Bill Jonson moved to amend Item 3.2, defining season of the farmers market to be January 2013 through May 2013. The motion was duly seconded and carried unanimously. Trustee Jay Polglaze moved to approve Item 3.2 as amended. The motion was duly seconded and carried unanimously. 3.3 Approve the First Amendment to Development Agreement between the Community Development Agency of the City of Clearwater and Mainstreet Clearwater, LLC., entered August 18, 2010 concerning a restaurant relocation assistance grant at 422-424 Cleveland Street, to allow the removal of certain restaurant equipment to other contiguous areas of the grantee premises, and authorize the appropriate officials to execute same. In 2010, a five-year restaurant loan-to-grant agreement was entered into between the CRA and Mainstreet Clearwater, LLC, to facilitate the kitchen build out of the 422-424 premises to facilitate the relocation of the Peter Gillham’s Green Organic operation to said premises. Peter Gillham has subsequently retired and closed the Green Organic restaurant, with three years remaining on the grantee’s obligation for the equipment loan-to-grant. The adjoining restaurant, Tony’s Pizzeria has leased the space for expansion of their adjacent restaurant but does not need all of the kitchen equipment installed under the grant. It is currently being stored in the back of the leased area and interrupting the proposed use by Tony’s. Mainstreet Clearwater, LLC has requested to move and store the equipment in adjacent premises until such time as an additional restaurant can be recruited for their leasable adjacent space, after which the equipment would be installed for the purpose of the grant program, with the amortization of the grant to continue during this period. The First Amendment would approve removal and storage of the equipment to adjacent parcels owned by the grantee, with an installation in a restaurant within twelve months of CRA approval of the Amendment. Failure to install by the end of the 12-month period, or removal of the equipment from the adjacent premises, would result in a default of the loan-to-grant agreement and the unamortized portion of the loan-to-grant would become due and payable to the CRA. Similarly, failure of the 422-424 premises to continue in use as a restaurant by Tony’s during this period would trigger a default. Community Redevelopment Agency 2012-10-29 4 As this Amendment facilitates the expansion of Tony's Pizzeria into the 422-424 space, and the resumption of a restaurant facility at that location, staff recommends approval of the Amendment. Trustee Paul Gibson moved to approve the First Amendment to Development Agreement between the Community Development Agency of the City of Clearwater and Mainstreet Clearwater, LLC., entered August 18, 2010 concerning a restaurant relocation assistance grant at 422-424 Cleveland Street, to allow the removal of certain restaurant equipment to other contiguous areas of the grantee premises, 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 1:31 p.m. cgs t'r t(1 Cr At ol Chair Attest Community Redevelopment Agency ,t iz iha2 ic 0 e `034F;;:i,, City Clerk Q<G (01)/4.,,,,,,,,, i c CORPORA :On s zy: * T =� . SEAL a1= y: iOt7 �? ,OR'DP,`$````�. Community Redevelopment Agency 2012-10-29 5