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02/04/2013 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER February 4, 2013 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 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 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 1:30 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the December 3, 2012 CRA Meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the December 3, 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 Discuss and formulate a CRA board response to the discussion at the December joint CRA/DDB meeting on the Cleveland Street District, for delivery at the next joint meeting, and determine the timeframe for the next joint meeting. Subsequent to the joint meeting between the CRA Board and the Downtown Development Board, which included members of the Clearwater Downtown Partnership, the Mayor requested the CRA Executive Director to develop an CRA 2013-02-04 1 agenda item for the February CRA meeting so the CRA Board could consider how to respond to the comments/ suggestions/recommendations expressed at the joint meeting. It is anticipated that the response would be discussed with the partners at the next joint meeting, to be determined by the Board. To facilitate the discussion of the Board, the Mayor asked the Executive Director to develop, from the CRANED staff perspective, a list of the major take-aways and themes from the meeting. A similar solicitation of the key take-aways and themes from the participant organizations were also requested by the Mayor, to inform the Board' discussion. The consolidated CRANED staff list is as follows: • Heighten coordination of roles, responsibilities and work programs of major organizations involved in Downtown/Cleveland Street District redevelopment effort, to leverage more effective accomplishment of goals and objectives and avoid duplication; • Develop strategy and tactics to positively engage Downtown/Cleveland Street District property owners retail and office in efforts at redevelopment and business recruitment/retention-, • Develop strategy to catalyze private investment in Downtown/Cleveland Street District, to build upon significant public sector seed investment; • Develop and implement strategy to involve broader segment of resident population in redevelopment of Downtown/Cleveland Street District, and better communicate the importance of a economically vibrant CBD to the broader economic health of the community as a whole; • Streamline development approval and permitting process for Downtown/Cleveland Street district, particularly acknowledging and reflecting the challenges/issues unique to a traditional urban corecost, land patterns; parking; signage; etc.; • Develop and heighten implementation of branding and marketing of Downtown/Cleveland Street District. The Clearwater Downtown Partnership and DDB have been invited to submit their lists, or concur with the CRANED list, at their discretion. The Board also needs to determine a timeframe for the next joint meeting. Discussion ensued regarding scheduling quarterly meetings. It was suggested that the Clearwater Regional Chamber be included in future meetings. Staff was directed to schedule a meeting in March or April with the Clearwater Downtown Partnership and the Downtown Development Board to discuss the coordination of roles and responsibilities. CRA 2013-02-04 2 3.2 Approve Release of Request for Proposals and Qualifications 12-13 (RFP/Q) for a mixed-use infill development on the Cleveland Street and Prospect Lake Park Site; and provide direction whether to include other parcels in the RFP/Q. The purpose of this RFP/Q is to select a qualified Development Team to successfully develop the 5.91+/- acre site located on Cleveland Street and Prospect Avenue in Downtown Clearwater, one block east of the Downtown Core. The City and CRA's redevelopment strategy emphasizes the creation of a significant residential concentration in and around the downtown core, to create the support for a retail and recreation destination environment in the Cleveland Street District. The CRA views this site as a major opportunity to further this strategy. Given the economic and real estate market conditions between 2008 and 2012, the development of this site was placed on hold as the timing was not optimal for residential development in the Downtown. During this timeframe, the CRA made several strategic acquisitions to heighten the feasibility of development on the Site in preparation for improved market conditions. The St. Vincent de Paul Society Thrift Store (1.03 acre acquired in 2010) and 1005 Park Street (0.6 acre acquired in 2012) properties allow for a better segregation of uses, lower construction costs, and better site functionality. More recently, staff has received renewed interest from the development community for residential projects, with a particular interest expressed in the Prospect Lake Site because of its proximity to Downtown and the CRA's Technology District. This development interest aligns with our own market research, which indicates a need for additional multi-family rental residential development as well as available financing for this type of product. For this reason, staff recommends releasing an RFP/Q for this site to capitalize on the timing for financing residential development. In addition, staff is seeking direction whether to include two additional parcels as part of the RFP/Q. The two parcels are-1) The city-owned stormwater outparcel (0.275 acre) that has been decommissioned from the Prospect Lake stormwater project, (Parcel A); 2) The CRA-owned parcel on the corner of Park and Prospect (0.412 acre) that was originally Stage 3 of the Mediterranean Village project, (Parcel B). Staff recommends adding these two parcels to the RFP/Q as it will allow for a 0.687 acre addition to the Site for a total 6.597+/- acres available for development, which will improve site functionality for parking and allow an increase in density. If the CRA desires to include these two parcels or any additional parcels, the RFP/Q will be revised to reflect the decision. CRA 2013-02-04 3 The City and CRA desire a mixed-use urban infill project in this location, with a predominant residential component. The draft RFP/Q lays out the preferred criteria for the site as follows: The major building massing should occur along Cleveland Street Development along Cleveland Street should span the width of the property, but should be no more than 3-4 stories in height, with the possibility of stepping up in height as the building(s) move back on the site. Commercial uses should be located on the first floor (along Cleveland Street) and residential uses on the upper floors. The building should have a pedestrian orientation with no means of vehicular ingress/egress on Cleveland Street. The orientation of the development should capitalize on the site's proximity to Prospect Lake Park (i.e. integrate the Lake as a design feature of the site concept) but not wall-off the park. The Downtown Plan allows up to 30 dwelling units or 40 hotel units per acre; an FAR of 1 for commercial; and up to 75 feet in height. Additional density can be attained through the Public Amenities Incentive Pool through approval by the Community Development Board. As requested by the Board at the August 2012 CRA meeting, the RFP/Q includes language that if greater height is needed, City Council/CRA may be open to revising the Downtown Redevelopment Plan for a development of extraordinary opportunity; however the process could take approximately seven months. Submissions reflecting significant variations from the preferred concept may be considered, but at the sole and exclusive option of the CRA. Proposals submitted will provide Developers the opportunity to demonstrate their ability to undertake the planning, design, financing, construction, and implementation of the project envisioned. A screening team will be formed to evaluate all submissions according to the following evaluation criteria: 1) Developer experience and qualifications 25%; 2) Financial feasibility of the developer and project 25%; 3) Conceptual development program and vision 25%; and4) Economic benefit to the CRA 25%. The Screening Team will recommend a Preferred Developer to the CRA, who will make the final selection. The anticipated selection schedule is as follows: Release RFP February 2013 Proposal Submittal Deadline March 2013 Project Evaluation and Rankings April 2013 Oral Presentations May 2013 Approval of Selection by CRA June 2013 If authorized, the RFP will be available on the city's website and advertised in economic development and homebuilder association websites, as well as trade publications to ensure a wide variety of responses. CRA 2013-02-04 4 In response to questions, Economic Development and Housing Director Geri Campos Lopez said the Request for Proposals and Qualifications (RFP/Q) states the CRA prefers a mixed-use building with a predominantly residential component fronting Cleveland Street. The building should be three to four stories tall with pedestrian orientation to Cleveland Street and no vehicular access. Maximum height of building is 75 feet. Ms. Campos Lopez said the site orientation should capitalize on the proximity to the lake and integrate the lake into the design feature. Staff anticipates the proposal would include the demolition of the existing buildings on the sites. In response to a concern, the City Attorney said the CRA Statute refers to fair value, which is not the same as fair market value, allowing some room to address the price. The negotiated price will be based on the overall development proposal and the economic benefit to the CRA. Staff was directed to extend the RFP/Q submission period to six weeks. Ms. Campos Lopez said in addition to Parcels A and B, staff also recommends including property listed in Agenda Item 3.4 as an option to the RFP/Q. Trustee Paul Gibson moved to Table Item 3.2. The motion was duly seconded and carried unanimously. See Item 3.4 for motion to approve. 3.3 Approve an Interlocal Agreement between the City of Clearwater (City) and the Community Redevelopment Agency of the City of Clearwater (CRA) that outlines responsibilities for funding a Virtual Incubator Program, which fosters early- and mid-stage IT/Software company growth in the Technology District of the CRA, and authorize the appropriate officials to execute same. The purpose and intent of the Interlocal Agreement is to permit the CRA and the City to collaborate and make the most efficient use of their resources and capabilities to implement a Virtual Incubator Program that encourages the growth of IT/Software start-up and mid-stage companies in the CRA. In November 2011, the City of Clearwater approved a citywide Economic Development Strategic Plan (Plan) that calls for the creation of a Technology District and provides incentives and/or assistance to foster Information Technology (IT)/Software company growth in the City's CRA area. The Strategic CRA 2013-02-04 5 Plan identifies IT/Software as one the city's industry clusters with the highest potential for job growth. Toward that end, the City desires to assist start-up and mid-stage companies, which generate significant job growth in the IT/Software area, that are either already located or are considering locating in the City's defined Technology District to facilitate the retention, growth and attraction of high-wage primary jobs envisioned by the Plan. In order to identify, assess, and support the growth and development of high potential start-up firms, the City needs to engage a third party that specializes in providing financial and feasibility assessment and support services for early- and mid-stage technology businesses. In order to provide these third-party assessments and services, the City of Clearwater Economic Development and Housing Department will enter into an agreement with the Tampa Bay Innovation Center (TBIC), a Florida-based not-for- profit corporation that was established to support business development in the form of business incubation and business acceleration services. They provide a well-established process for business feasibility analysis and growth support services for the incubator program at the County's Star Center. The TBIC agreement will allow the City to access these specialized services, normally available only through an on-site incubator center, in the CRA's Technology District without having to incur the expense of a physical location. The City is best-suited to enter into the agreement with TBIC because the Department is designated by the State as the economic development agency. The CRA will pay the application fees, background check fees, security deposits and monthly program fees for the Program clients. Client participation is capped at no more than six clients per calendar year. The total annual amount of the Program will not exceed $25,000. However, the parties agree that the CRA will allot additional monies in its sole discretion and as needed. The funding for this Program will be allocated from the CRA's Technology District Incentives line item (388-94872). In response to questions, Economic Development and Housing Director Geri Campos Lopez said the businesses will already be in Clearwater but desire a physical location in the CRA. The Tampa Bay Innovations Center provides programs and offices the businesses can use. There are nine technology/software related companies in Downtown Clearwater. Trustee Bill Jonson moved to approve an Interlocal Agreement between the City of Clearwater (City) and the Community Redevelopment Agency of the City of Clearwater (CRA) that outlines responsibilities for funding a Virtual Incubator Program, which fosters early- and mid-stage IT/Software company growth in the Technology District of CRA 2013-02-04 6 the CRA, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 3.4 Approve the Purchase Contract for the purchase of real property located at 1021 Park Street, Clearwater, by the Community Redevelopment Agency of the City of Clearwater (CRA), with a purchase price of$120,000 and total expenditures not to exceed $165,000 including environmental assessments, survey, closing costs and demolition expenses; approve the terms and conditions of the related temporary occupancy lease between the CRA the seller; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing; and approve a transfer of$165,000 from CRA Project 388- 94847, Clearwater Centre, to new Project 388-94877,P rope ry Acquisition 1021 Park Street, in the amount of$165,000 to fund the acquisition and attendant expenses. The subject property is located at 1021 Park Street adjacent to CRA and City land holdings assembled as the Prospect Lake Park site. The parcel is approximately 11,105 square feet. The acquisition will provide the opportunity to vacate a portion of Park Street resulting in an additional 1,800 square feet of land area to which the CRA would 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. The property owner currently leases out the property for commercial use. The lease is on a month-to-month basis. Staff has negotiated a lease (Leaseback) for a period of six months, beginning on the closing date, for the tenant's continued occupancy of the property and the seller's administration of the above-mentioned lease. 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 $110,000 and $120,000. Trustee Doreen Hock-DiPolito moved to Approve the Purchase Contract for the purchase of real property located at 1021 Park Street, Clearwater, by the Community Redevelopment Agency of the City of Clearwater (CRA), with a purchase price of $120,000 and total expenditures not to exceed $165,000 including environmental assessments, survey, closing costs and demolition expenses; approve the terms and conditions of the related temporary occupancy lease between the CRA the seller; and CRA 2013-02-04 7 authorize the appropriate officials to execute same, together with all other instruments required to affect closing; and approve a transfer of$165,000 from CRA Project 388- 94847, Clearwater Centre, to new Project 388-94877,Propery Acquisition 1021 Park Street, in the amount of$165,000 to fund the acquisition and attendant expenses. The motion was duly seconded and carried unanimously. Trustee Jay Polglaze moved to take Item 3.2 off the table. The motion was duly seconded and carried unanimously. Trustee Paul Gibson moved to approve Item 3.2, to include Parcels A and B and 1021 Park Street. The motion was duly seconded and carried unanimously. 4. Other Business CRA Executive Director Rod Irwin thanked Real Estate Services Coordinator Chuck Lane for his efforts with the Ruth Eckerd Hall easement negotiation process. Mr. Irwin said the Blast Friday events have been successful and now experiencing crowd issues. Staff has been informed that Ruth Eckerd Hall and the Blast Friday Group may request to close the intersection of Ft. Harrison Avenue on Cleveland Street through a special event permit. Engineering Director Mike Quillen said vehicular traffic would be diverted to Osceola and Garden Avenues; police officers will be needed to direct traffic. Discussion ensued with council consensus to allow the request, if submitted, for the remainder of the 2013 season. It was suggested that staff review the street closure process after each event and pull the permit if needed. 5. Adjourn The meeting adjourned at 2:50 p.m. ¶ to ft e 4 fol ic r \obi, ENT,y"i',, Chair Attest QiP �...... �F �v° �''. TE'..(po,iCity of Clearwater EtA ' � tick ,,k6ctukeiA e - City Clerk -7vvA S R iimoimmo CRA 2013-02-04 8