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02/04/2013 COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 2/4/2013- 1:00 PM 1. Call to Order 2. Approval of Minutes 2.1Approve the minutes of the December 3, 2012 CRA Meeting as submitted in written summation by the City Clerk. Attachments 3. CRA Items 3.1Discuss 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. Attachments 3.2Approve 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. Attachments 3.3Approve 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. Attachments 3.4Approve 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,Propery Acquisition 1021 Park Street, in the amount of $165,000 to fund the acquisition and attendant expenses. Attachments 4. Adjourn Meeting Date: 2/4/2013 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the December 3, 2012 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo Item # 1 Attachment number 1 \nPage 1 of 2 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER December 3, 2012 Present:Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Trustee , Trustee Paul Gibson, Trustee Trustee Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee Jay Polglaze. , Trustee Bill Jonson, and Trustee Jay Polglaze., Trustee Bill Jonson, and Trustee Jay Polglaze. Also Present:William B. Horne II -City Manager, Jill S. Silverboard -Assistant City City Manager, Jill S. Silverboard City Manager, Jill S. Silverboard Assistant City Assistant City - Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City City City Assistant City Manager, Pamela K. Akin Assistant City Manager, Pamela K. Akin - - Attorney, Rosemarie Call - City Clerk, and Nicole Sprague - Official City Clerk, and Nicole City Clerk, and Nicole Sprague Sprague Official Official - - Records and Legislative Services Coordinator Records and Legislative Services Coordinator To provide continuity for research, items are listed in agenda order although not To provide continuity for research, items are listed in agenda order although not To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. necessarily discussed in that order. Unapproved 1. Call to Order–Chair George N. Cretekos Chair George N. CretekosChair George N. Cretekos The meeting was called to order at 1:00 p.m. at City Hall. 1:00 p.m. at City Hall.1:00 p.m. at City Hall. The meeting was called to order at 2. Approval of Minutes Approval of Minutes 2.1 Approve the minutes of the October 29, 2012 CRA meeting as submitted in Approve the minutes of the October 29, 2012 CRA meeting as submitted in Approve the minutes of the October 29, 2012 CRA meeting as submitted in written summation by the City Clerk. written summatiowritten summation by the City Clerk.n by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the October 29, 2012 CRA Trustee Bill Jonson moved to approve the minutes of the October 29, 2012 CRA Trustee Bill Jonson moved to approve the minutes of the October 29, 2012 CRA meeting as submitted in written summation by the City Clerk. The motion was duly meeting as submitted in written summation by the City Clerk. The motion was duly meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. seconded and carried unanimously.seconded and carried unanimously. 3. CRA Items CRA Items 3. 3. 3.1 Approve request from the Clearwater Downtown Partnership for CRA funding in 3.1 3.1 Approve request from the Clearwater Downtown Partnership for CRA funding in Approve request from the Clearwater Downtown Partnership for CRA funding in the amount of $3,750.00 to underwrite a portion of the Downtown Partnership of $3,750.00 to underwrite a portion of the Downtown Partnership of $3,750.00 to underwrite a portion of the Downtown Partnership the amount the amount Community Workshop: For the Love of Clearwater, subject to provision of Community Workshop: For the Love of Clearwater, subject to provision of Community Workshop: For the Love of Clearwater, subject to provision of equivalent funding by the Downtown Development Board. equivalent funding by the Downtown Development Board.equivalent funding by the Downtown Development Board. Staff recommends approval, contingent on an equivalent grant amount from the Staff recommends approval, contingent on an equivalent granStaff recommends approval, contingent on an equivalent gran Downtown Development Board. The purpose of the community-building effort is Downtown Development Board. The purpose of the communityDowntown Development Board. The purpose of the community facilitative of the mission and purpose of the CRA in fostering downtown facilitative of the mission and purpose of the CRA in fostering downtown facilitative of the mission and purpose of the CRA in fostering downtown redevelopment. CRA 2012-12-031 Item # 1 Attachment number 1 \nPage 2 of 2 In response to questions, CRA Executive Director Rod Irwin said the totalcost for the event is $7,500. The Downtown Partnership will be providing in-kind services; assisting with organizing and supporting the event. The event will target a broad base group, to includedowntown property owners. One individual spoke in support; workshop participants will include downtown One individual spoke in support; workshop participants will include downtown One individual spoke in support; workshop participants will include downtown merchants, downtown employees, and other stakeholders. Discussion ensuedregarding thepositive impact the event will have in the community. event will have inevent will have in the the communitycommunity . . A concern was expressed that the Downtown Partnership is not contributing financially expressed that the Downtown Partnership is not contributing financially expressed that the Downtown Partnership is not contributing financially to the event. Trustee Doreen Hock-DiPolito moved to approve request from the Clearwater DiPolito moved to approve request from the Clearwater DiPolito moved to approve request from the Clearwater Downtown Partnership for CRA funding in the amount of $3,750.00 to underwrite a Downtown Partnership for CRA funding in the amount of $3,750.00 to underwrite a Downtown Partnership for CRA funding in the amount of $3,750.00 to underwrite a portion of the Downtown Partnership Community Workshop: For the Love of Clearwater, portion of the Downtown Partnership Community Workshop: For the Love of Clearwater, portion of the Downtown Partnership Community Workshop: For the Love of Clearwater, subject to provision of equivalent funding by the Downtown Development Board.The subject to provision of equivalent funding by the Downtown Development Board.subject to provision of equivalent funding by the Downtown Development Board.The motion was duly seconded. Trustees Paul Gibson, Doreen Hock-DiPolito, Bill Jonson, motion was duly seconded. Trustees Paul Gibson, Doreen Hockmotion was duly seconded. Trustees Paul Gibson, Doreen HockDiPolito, Bill Jonson, DiPolito, Bill Jonson, - and Jay Polglaze voted “Aye”; Chair George N. Cretekos voted “Nay”. and Jay Polglaze voted “Aye”; Chair George N. Cretekos voted “Nay”.and Jay Polglaze voted “Aye”; Chair George N. Cretekos voted “Nay”. Motion carried. Motion carried. 4. Other Business–None. Other BusinessNone.None. – 5. Adjourn 5. 5. AdjournAdjourn The meeting was adjourned at 1:18 p.m. The The meeting was adjourned at 1:18 p.m.meeting was adjourned at 1:18 p.m. Chair ChairChair Attest City of Clearwater AttestAttest City of ClearwaterCity of Clearwater City Clerk City Clerk City Clerk CRA 2012-12-032 Item # 1 Meeting Date: 2/4/2013 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: 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. SUMMARY: 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 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 CRA/ED 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 Boards discussion. The consolidated CRA/ED 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 core€cost, 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 CRA/ED list, at their discretion. The Board also needs to determine a timeframe for the next joint meeting. Cover Memo Item # 2 Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Attachment number 1 \nPage 1 of 3 Item # 2 Attachment number 1 \nPage 2 of 3 Item # 2 Attachment number 1 \nPage 3 of 3 Item # 2 Attachment number 2 \nPage 1 of 1 Item # 2 Attachment number 3 \nPage 1 of 2 · · · Item # 2 Attachment number 3 \nPage 2 of 2 · · · · · · · · · Item # 2 Meeting Date: 2/4/2013 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: 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. SUMMARY: 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 CRAs 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 CRAs 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 Cover Memo and allow an increase in density. If the CRA desires to include these two parcels or any additional Item # 3 parcels, the RFP/Q will be revised to reflect the decision. 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 sites 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%; and 4)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 citys website and advertised in economic development and homebuilder association websites, as well as trade publications to ensure a wide variety of responses. Cover Memo Item # 3 Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 3 Item # 3 Attachment number 2 \nPage 1 of 3 Item # 3 Attachment number 2 \nPage 2 of 3 Item # 3 Attachment number 2 \nPage 3 of 3 Item # 3 Attachment number 3 \nPage 1 of 5 Item # 3 Attachment number 3 \nPage 2 of 5 Item # 3 Attachment number 3 \nPage 3 of 5 Item # 3 Attachment number 3 \nPage 4 of 5 Item # 3 Attachment number 3 \nPage 5 of 5 Item # 3 Attachment number 4 \nPage 1 of 5 Item # 3 Attachment number 4 \nPage 2 of 5 Item # 3 Attachment number 4 \nPage 3 of 5 Item # 3 Attachment number 4 \nPage 4 of 5 Item # 3 Attachment number 4 \nPage 5 of 5 Item # 3 Attachment number 5 \nPage 1 of 7 Item # 3 Attachment number 5 \nPage 2 of 7 Item # 3 Attachment number 5 \nPage 3 of 7 Item # 3 Attachment number 5 \nPage 4 of 7 Item # 3 Attachment number 5 \nPage 5 of 7 Item # 3 Attachment number 5 \nPage 6 of 7 Item # 3 Attachment number 5 \nPage 7 of 7 Item # 3 Meeting Date: 2/4/2013 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: 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. SUMMARY: 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 Citys CRA area. The Strategic Plan identifies IT/Software as one the citys 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 Citys 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 Countys 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 CRAs 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 CRAs Technology District Incentives line item (388-94872). Cover Memo Appropration CodeAmountAppropriation Comment Item # 4 388-94872$25,000 Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Attachment number 1 \nPage 1 of 12 Item # 4 Attachment number 1 \nPage 2 of 12 Item # 4 Attachment number 1 \nPage 3 of 12 Item # 4 Attachment number 1 \nPage 4 of 12 Item # 4 Attachment number 1 \nPage 5 of 12 Item # 4 Attachment number 1 \nPage 6 of 12 Item # 4 Attachment number 1 \nPage 7 of 12 Item # 4 Attachment number 1 \nPage 8 of 12 Item # 4 Attachment number 1 \nPage 9 of 12 Item # 4 Attachment number 1 \nPage 10 of 12 Item # 4 Attachment number 1 \nPage 11 of 12 Item # 4 Attachment number 1 \nPage 12 of 12 Item # 4 Meeting Date: 2/4/2013 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: 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,Propery Acquisition 1021 Park Street, in the amount of $165,000 to fund the acquisition and attendant expenses. SUMMARY: 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 tenants continued occupancy of the property and the sellers 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 appraisers value conclusion provided an estimated range of value of the property as assembled with the Prospect Lake site between $110,000 and $120,000. Appropration CodeAmountAppropriation Comment 38894877$165,000 Review 1) Office of Management and Budget 2) Legal 3) Clerk 4) Legal 5) Assistant City Manager ED 6) City Approval: Manager 7) Clerk Cover Memo Item # 5 Attachment number 1 \nPage 1 of 8 CONTRACT FOR PURCHASE OF REAL PROPERTY BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA PARTIES: ARTHUR CORNWELL CHESNUT, SR., AS TRUSTEE OF THE ARTHUR CORNWELL CHESNUT, SR. AND JEANNE CASSENS CHESNUT JOINT REVOCABLE TRUST dated February 27, 1991, as restated November 3, 2007, and THOMAS T. CHESNUT, individually (herein "Seller"), and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida, (herein "Buyer" or "City") of 112 South Osceola Avenue, Clearwater, FL 33756, (collectively "Parties") hereby agree that the Seller shall sell and Buyer shall buy the following real property ("Property") upon the following terms and conditions. 1. PROPERTY DESCRIPTION LEGAL DESCRIPTION: See Exhibit A PERSONALTY: NONE 2. FULL PURCHASE PRICE 120,000.00 3. MANNER OF PAYMENT: Wire transfer orCity of Clearwater check in U.S. funds .... $120,000.00 4. PURCHASE PRICE The Full Purchase Price as shown herein has been reached through negotiations with the Seller by City of Clearwater staff. The Purchase Price is based upon an appraisal by James Millspaugh & Associates, Inc. 5. TIME FOR ACCEPTANCE; APPROVALS Following execution of this contract by Seller, the price, terms and conditions as contained herein shall remain unchanged and be held unconditionally open for a period of 45 days following delivery in duplicate original to City Manager of the City of Clearwater for acceptance and approval, counter-offer, or rejection by action of the Clearwater City Council ("Council"). If this agreement is accepted and approved by the Council, it will be executed by duly authorized City officials and delivered to Buyer within 10 days thereafter. If a counter-offer is approved by the Council, it shall be delivered to Seller in writing within 10 days of such action by the City Council, and Seller shall have 10 days thereafter to deliver to Buyer written notice of acceptance or rejection of such counter-offer. If written notice of acceptance is not timely delivered, or if the counter-offer is rejected by Seller, this contract shall thereafter be null and void in all respects. If this contract is rejected by the Council upon initial presentation to the Council, this contract shall be null and void in all respects and Buyer shall be so informed in writing within 5 days of such action. 6. TITLE Seller warrants legal capacity to and shall convey marketable title to the Property by Statutory Warranty Deed, subject only to matters contained in Paragraph 7 acceptable to Buyer. Otherwise title shall be free of liens, easements and encumbrances of record or known to Seller, but subject to property taxes Item # 5 for the year of closing; covenants, restrictions and public utility easements of record; and no others Attachment number 1 \nPage 2 of 8 provided there exists at closing no violation of the foregoing and none of them prevents Buyer's intended use of the Property. Seller warrants and represents that there is ingress and egress to the Property sufficient for the intended use as described herein. 7. TITLE EVIDENCE 15 Seller shall, at Seller expense and within days prior to closing date deliver to Buyer a title insurance commitment issued by a Florida licensed title insurer agreeing to liens, encumbrances, exceptions or qualifications set forth in this Contract, and those which shall be discharged by Seller at or before closing. Seller shall convey a marketable title subject only to liens, encumbrances, exceptions or qualifications set forth in this Contract. Marketable title shall be determined according to applicable Title Standards adopted by The Florida Bar and in accordance with law. Buyer shall have 5 days from receiving evidence of title to examine it. If title is found defective, Buyer shall, within 3 days thereafter, notify Seller in writing specifying defect(s). If the defect(s) render title unmarketable, Seller will have 120 days from receipt of notice within which to remove the defect(s), failing which Buyer shall have the option of either accepting the title as it then is or withdrawing from this Contract. Seller will, if title is found unmarketable, make diligent effort to correct defect(s) in title within the time provided therefor, including the bringing of necessary suits. 8. SURVEY Buyer, at Buyer's expense, within time allowed to deliver evidence of title and to examine same, may have Real Property surveyed and certified to the Buyer by a registered Florida land surveyor. If survey shows any encroachment on Real Property, or that improvements located on Real Property encroach on setback lines, easements, lands of others, or violate any restrictions, contract covenants or applicable governmental regulation, the same shall constitute a title defect. The survey shall be performed to minimum technical standards of the Florida Administrative Code and may include a description of the property under the Florida Coordinate System as defined in Chapter 177, Florida Statutes. 9. CLOSING PLACE AND DATE Seller shall designate closing agent and this transaction shall be closed in the offices of the designated closing agent in Pinellas County, Florida, no later than June 30, 2013, unless extended by other provisions of this contract. If either party is unable to comply with any provision of this contract within the time allowed, and be prepared to close as set forth above, after making all reasonable and diligent efforts to comply, then upon giving written notice to the other party, time of closing may be extended up to 60 days without effect upon any other term, covenant or condition contained in this contract. The City of Clearwater shall retain $10,000 of purchase proceeds at time of closing in an interest bearing trust account in accordance with the terms and provisions of that certain Business Lease Contract as referenced in paragraph 32 hereof. 10. CLOSING DOCUMENTS Seller shall furnish closing statements for the respective parties, deed, bill of sale (if applicable), mechanic's lien affidavit, assignments of leases, tenant and mortgage estoppel letters, and corrective instruments. If Seller is a corporation, Seller shall deliver a resolution of its Board of Directors authorizing the sale and delivery of the deed and certification by the corporate Secretary certifying the resolution and setting forth facts showing the conveyance conforms with the requirements of local law. Item # 5 Page 2 of 8 Attachment number 1 \nPage 3 of 8 11. CLOSING EXPENSES Documentary stamps on the deed, unless this transaction is exempt under Chapter 201.24, Florida Statutes, shall be paid by the Seller. Seller shall also pay the costs of recording any corrective instruments. Recordation of the deed shall be paid by Buyer. 12. PRORATIONS; CREDITS Any governmental assessments levied of record and accruing against the Property shall be paid by Seller at time of closing. As it is the intent of the parties that the Seller shall Lease back and remain in occupancy of the Property following closing and until December 31, 2013, no ad valorem taxes shall be prorated and collected through the day prior to closing. Seller, being a non-exempt entity, as provided in the referenced Lease appended responsible and obligated for the payment of all intangible and real property taxes assessed and due during its ownership of the Property, as well as during and throughout the full term of the Lease. 13. OCCUPANCY , Ace Auto and Marine Electric, Inc. (Ace Auto). Seller warrants that a lease with Ace Auto in effect at the time of closing shall not provide for a term extending beyond December 31, 2013. Seller warrants that there are no other leases, agreements, or contracts of any kind for occupancy of the Property. Further, Seller shall not enter into any lease, agreement or contract of any kind for occupancy of the Property other than with Ace Auto as provided herein. 14. LEASES Seller shall, not less than 15 days before closing, furnish to Buyer copies of all written leases and estoppel letters from each tenant specifying the nature and duration of the tenant's occupancy, rental rates, advanced rent and security deposits paid by tenant. If Seller is unable to obtain such letter from each tenant, the same information shall be furnished by Seller to Buyer within that time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenants to confirm such information. Notwithstanding the provisions above, the Parties acknowledge and agree that Seller may continue to occupy the Property under a Business Lease Contract between the City and Seller as provided for in paragraph 32 below and Seller may sublease the Property and collect rents pursuant to said Business Lease Contract 15. PROPERTY CONDITION Seller shall deliver the Property to Buyer at time of closing in its present "as is" condition, ordinary wear and tear excepted, and shall maintain the landscaping and grounds in a comparable condition. Seller makes no warranties other than is disclosed herein in Paragraph 21 in the following paragraph. As Is With Right of Inspection: a. Buyer may, at Buyer expense and until March 31, 2013 ("Inspection Period"), conduct inspections, tests, environmental and any other investigations of the Property Buyer deems necessary to determine suitability for Buyer's intended use. execution hereof, Seller shall grant reasonable access to the Property to Buyer, its agents, contractors Item # 5 Page 3 of 8 Attachment number 1 \nPage 4 of 8 and assigns for the purposes of conducting the inspections provided, however, that all such persons enter the Property and conduct the inspections and investigations at their own risk. Seller will, upon reasonable notice, provide utilities services as may be required for Buyer's inspections and investigations. Buyer shall not engage in any activity that could result in a mechanics lien being filed against the Property without Seller's prior written consent. Buyer may terminate this contract by written notice to Seller prior to expiration of the Inspection Period if the inspections and/or investigations reveal conditions which are reasonably unsatisfactory to Buyer, including environmental contamination. In the alternative, if Seller offers to repair or otherwise remedy such conditions to Buyer satisfaction, Buyer may accept such offer; or Buyer, at its option, may elect to accept a credit at closing of the total estimated repair costs as determined by a licensed general contractor of Buyer's selection and expense. If Buyer terminates this contract, and this transaction does not close, Buyer agrees, at Buyer expense, to repair all damages to the Property resulting from the inspections and investigations and return the Property to its present condition. 16. WALK-THROUGH INSPECTION At a time mutually agreeable between the parties, but not later than the day prior to closing, Buyer may conduct a final "walk-through" inspection of the Property to determine compliance with any Seller obligations and to insure that all Property is in and on the premises. No new issues may be raised as a result of the walk-through. 17. SELLER HELD HARMLESS Buyer is self insured, and subject to the limits and restrictions of the Florida Sovereign immunity statute, F.S. 768.28, agrees to indemnify and hold harmless the Seller from claims of injury to persons or property during the inspections and investigations described in Paragraph 15(a) resulting from Buyer's own negligence only, or that of its employees or agents only, subject to the limits and restrictions of the sovereign immunity statute. 18. RISK OF LOSS If the Property is damaged at no fault of either party hereto by fire or other casualty before closing, neither party hereto shall have the obligation to restore the property and this contract shall remain in full force and effect. original condition for the purpose of maintaining the leasehold interest as described in paragraph 32 below. If Seller does not restore the Property, the Lease shall be null and void. 19. PROCEEDS OF SALE; CLOSING PROCEDURE The deed shall be recorded upon clearance of funds. Proceeds of sale shall be held in escrow by Seller's attorney or by such other mutually acceptable escrow agent for a period of not longer than 5 days from and after closing, during which time evidence of title shall be continued at Buyer's expense to show title in Buyer, without any encumbrances or change which would render Seller's title unmarketable from the date of the last title evidence. If Seller's title is rendered unmarketable through no fault of the Buyer, Buyer shall, within the 5 day period, notify the Seller in writing of the defect and Seller shall have 30 days from the date of receipt of such notification to cure the defect. If Seller fails to timely cure the defect, all funds paid by or on behalf of the Buyer shall, upon written demand made by Buyer and within 5 days after demand, be returned to Buyer and simultaneously with such repayment, Buyer shall vacate the Property and reconvey it to Seller by special warranty deed. If Buyer fails to make timely demand Item # 5 Page 4 of 8 Attachment number 1 \nPage 5 of 8 for refund, Buyer shall take title "as is", waiving all rights against Seller as to any intervening defect except as may be available to Buyer by virtue of warranties contained in the deed. The escrow and closing procedure required by this provision may be waived if title agent insures adverse matters pursuant to Section 627.7841, F.S. (1987), as amended. 20. DEFAULT If this transaction is not closed due to any default or failure on the part of the Seller, other than to make the title marketable after diligent effort, Buyer may seek specific performance or unilaterally cancel this agreement upon giving written notice to Seller. If this transaction is not closed due to any default or failure on the part of the Buyer, Seller may seek specific performance. If a Broker is owed a brokerage fee regarding this transaction, the defaulting party shall be liable for such fee. 21. SELLER WARRANTIES Seller warrants that there are no facts known to Seller that would materially affect the value of the Property, or which would be detrimental to the Property, or which would affect Buyer's desire to (Specify known defects. purchase the property except as follows: ___________________ Buyer shall have the number of days granted in Paragraph 15(a) above ("Inspection Period") to investigate said matters as disclosed by the Seller, and shall notify Seller in writing whether Buyer will close on this contract notwithstanding said matters, or whether Buyer shall elect to cancel this contract. If Buyer fails to so notify Seller within said time period, Buyer shall be deemed to have waived any objection to the disclosed matters and shall have the obligation to close on the contract. 22. RADON GAS NOTIFICATION In accordance with provisions of Section 404.056(8), Florida Statutes (1989), as amended, Buyer is hereby informed as follows: RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. 23. CONTRACT NOT RECORDABLE; PERSONS BOUND Neither this contract nor any notice of it shall be recorded in any public records. This contract shall bind and inure to the benefit of the parties and their successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. 24. NOTICE All notices provided for herein shall be deemed to have been duly given if and when deposited in the United States Mail, properly stamped and addressed to the respective party to be notified, including the Item # 5 Page 5 of 8 Attachment number 1 \nPage 6 of 8 parties to this contract, the parties attorneys, escrow agent, inspectors, contractors and all others who will in any way act at the behest of the parties to satisfy all terms and conditions of this contract. 25. ASSIGNABILITY; PERSONS BOUND This contract is not assignable. The terms "Buyer", "Seller", and "Broker" (if any) may be singular or plural. This Contract is binding upon Buyer, Seller, and their heirs, personal representatives, successors and assigns (if assignment is permitted). 26. ATTORNEY FEES; COSTS In any litigation arising out of this contract, the prevailing party shall be entitled to recover reasonable attorney's fees and costs. 27. TYPEWRITTEN OR HANDWRITTEN PROVISIONS Typewritten or handwritten provisions shall control all printed provisions of contract in conflict with them. 28. BROKER REPRESENTATION Seller is Seller choose to obtain the services of a License Real Estate Broker, Seller shall be responsible for any Broker fee or expense due to said Broker. 29. EFFECT OF PARTIAL INVALIDITY The invalidity of any provision of this contract will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this contract is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 30. GOVERNING LAW It is agreed by and between the parties hereto that this contract shall be governed by, construed, and enforced in accordance with the laws of the State of Florida. 31. COUNTERPARTS; FACSIMILE COPY This contract may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. A facsimile copy of this contract, including any addendum, attachments and any written modifications hereof, and any initials or signature thereon shall be deemed an original. 32. BUSINESS LEASE CONTRACT ADDENDUM It is agreed by and between the Parties that execution, implementation and fulfillment of the terms and provisions of that certain Business Lease Contract respective to the Property, an exact copy of which is , and will be executed and effective as of the closing date. Item # 5 Page 6 of 8 Attachment number 1 \nPage 7 of 8 33. ENTIRE AGREEMENT Upon execution by Seller and Buyer, this contract shall constitute the entire agreement between the parties, shall supersede any and all prior and contemporaneous written and oral promises, representations or conditions in respect thereto. All prior negotiations, agreements, memoranda and writings shall be merged herein. Any changes to be made in this agreement shall only be valid when expressed in writing, acknowledged by the parties and incorporated herein or attached hereto. 34. ESCROW AGENT Escrow Agent is acting as a stakeholder only with respect to the Lease Deposit and shall have no liability except for willful or wanton negligence. If there is any dispute as to whether Escrow Agent is obligated to deliver the Deposit or as to whom the Lease Deposit is to be delivered, Escrow Agent shall refuse to make any delivery, and shall continue to hold the Lease Deposit in Escrow until receipt by Escrow Agent of an authorization in writing, signed by Seller and Buyer, directing the delivery of the Lease Deposit. In the absence of such authorization, Escrow Agent shall hold the Lease Deposit until a final determination of the rights of the Parties in an appropriate judicial proceeding. If such written authorization is not given, or a proceeding for such determination is not begun, within thirty (30) days of the expiration or termination of the Lease, then Escrow Agent may commence a proceeding to deposit the Lease Deposit in a court of competent jurisdiction pending such determination. The party determined not to be entitled to the Lease Deposit shall reimburse Escrow Agent for all costs and incurred by Escrow Agent. Upon delivery of the Lease Deposit in any of the manners herein provided, Escrow Agent shall have no further liability or obligation hereunder. The Remainder of This Page Intentionally Left Blank Item # 5 Page 7 of 8 Attachment number 1 \nPage 8 of 8 EXECUTED this _____ day of ________________________, 2013 by Seller. ARTHUR CORNWELL CHESNUT, SR. AND JEANNE CASSENS CHESNUT JOINT REVOCABLE TRUST dated February 27, 1991, as restated November 3, 2007, and THOMAS T. CHESNUT individually Attest: ______________________________ By: _________________________________ Arthur Cornwell Chesnut, Sr. as Trustee ______________________________ Print Name ______________________________ By: _________________________________ Thomas T. Chesnut ______________________________ Print Name APPROVED BY BUYER & EFFECTIVE this _____ day of _________________________, 2013. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: _____________________________ George N. Cretekos, Chairperson Approved as to form: Attest: _________________________ ___________________________ Laura Lipowski Mahony Rosemarie Call Assistant City Attorney City Clerk Item # 5 Page 8 of 8 Attachment number 2 \nPage 1 of 9 BUSINESS LEASE CONTRACT THIS BUSINESS LEASE CONTRACT, entered into this ____ day of ____________, 2013, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida, whose address is 112 S. Osceola Avenue, Clearwater, Florida, as Lessor, and ARTHUR CORNWELL CHESNUT, SR., AS TRUSTEE OF THE ARTHUR CORNWELL CHESNUT, SR. AND JEANNE CASSENS CHESNUT JOINT REVOCABLE TRUST dated February 27, 1991, as restated November 3, 2007, and THOMAS T. CHESNUT, individually, whose address is 2650 Pearce Drive # 407, Clearwater, Florida 33764, as Lessee. W I T N E S S E T H: That the Lessor does lease to the Lessee the following described property located in Pinellas County, Florida: See EX Such property shall hereinafter be referred to as the"Leased PDemised " Premises" or the "Leased Property. 1. LEASE TERM. The term of this lease shall commence on the day of closing of that certain Contract for Purchase of Real Property by and between the Parties entered into the ______ day of _________________, 2013 and shall remain in full force and effect for a period of six (6) months Lease . If Lessee is not in default of any lease provision, Lessee shall further have the privilege and option of terminating this Lease prior to the expiration hereof, upon giving Lessor not less than thirty (30) days written notice prior to vacating the Lease Premises, and fully paying any and all costs, including, but not limited to, rent, utilities, taxes and insurance expenses for which Lessee is responsible, through the effective date of termination. 2. RENT . The Lessee agrees to pay and the Lessor agrees to accept as rent during the term of this lease the sum of One and 00/100 Dollars ($1.00), and other good and valuable consideration, including compliance with the terms and conditions of this Lease, the receipt and sufficiency of which is hereby acknowledged. 3.ESCROW DEPOSIT . Lessee shall deposit with Lessor, on the signing of this lease, the sum of Ten Thousand and 00/100 Dollars ($10,000.00) as security for the performance of Lessee's obligations under this lease, including without limitation the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of this lease. Item # 5 Attachment number 2 \nPage 2 of 9 4.USE OF PREMISES . The premises are leased to Lessee solely for the following uses and no other use can be made of the premises during the term without the written consent of the Lessor: The premises will be used by Lessee in continuance of the existing business operation as an automobile repair shop. Further, Lessee may continue to sublease the property to Ace Auto and Marine Electric, Inc. occupying portions of the Property on the effective date hereof under existing terms and conditions. Lessee shall not enter into any new sublease(s) and shall not change the terms of any existing sublease. Any and all subleases shall terminate and the Leased Property shall be vacant at the expiration or termination of the Lease Term. Seller warrants that prior to acquisition of the Demised Property, Sublessee is on a month-to-month lease with Seller and Sublessee is not permitted to occupy the Demised Property beyond the six-month Lease Term as provided in paragraph 1 above. 5.UTILITIES . Water, sewer, electric and all other utilities of any kind shall be billed directly to Lessee or Ace Auto and are or shall be individually metered for the subject premises. All deposits for such utilities shallbe the sole responsibility of Lessee. 6.COMMON AREA MAINTENANCE AND TAXES. Lessee shall be responsible for the common area maintenance expenses on the Leased Property. If any ad valorem taxes, intangible property taxes, personal property taxes, or other liens or taxes of any kind are assessed or levied lawfully on the Leased Property, based on the L use of the Leased Property during the Lease Term, the Lessee agrees to pay all such taxes, assessments or liens, within thirty (30) days after receiving written notice from the Lessor. In the event the Lessee fails to pay all such taxes assessed or levied on the Proporty within thirty (30) days after receiving written notice, the Lessor may, at its sole option, pay such taxes, liens, or assessments, subject to immediate reimbursement thereof together with any interest, calculated at the maximum rate allowed by law, and any administrative costs incurred by the Lessor, which shall be considered additional rent due hereunder. Failure of the Lessee to pay any taxes or assessments pursuant to this paragraph will constitute a material default of this Lease. 7.OBSERVANCE OF LAWS AND ORDINANCES . Lessee agrees to observe, comply with and execute promptly at its expense during the Lease Term, all laws, rules, requirements, orders, directives, codes, ordinances and regulations of governmental authorities and agencies and of insurance carriers which relate to its use or occupancy of the Leased Premises. 8. ASSIGNMENT OR SUBLEASE . Lessee shall not, without first obtaining the written consent of Lessor, assign, mortgage, pledge, or encumber this lease, in whole or in part, other than sublet as provided for in Paragraph 4 above. This covenant shall be binding on the legal representatives of Lessee, and on every person to whom Lessee's interest under this lease passes by operation of law, but it shall not apply to an Item # 5 Page 2 of 9 Attachment number 2 \nPage 3 of 9 assignment or subletting to the parent or subsidiary of a corporate lessee or to a transfer of the leasehold interest occasioned by a consolidation or merger involving such lessee. If the premises are sublet or occupied by anyone other than Lessee or approved Sublessee, and Lessee is in default hereunder, or if this lease is assigned by Lessee, Lessor may collect rent from the assignee, unauthorized subtenant, or unauthorized occupant, and apply the net amount collected to the rent herein reserved. No such collection shall be deemed a waiver of the covenant herein against assignment and subletting, or the acceptance of such assignee, subtenant, or occupant as Lessee, or a release of Lessee from further performance of the covenants herein contained. 9. ALTERATIONS AND IMPROVEMENTS . The Lessee shall not makeany structural alterations or modifications or improvements which are part of the Leased Property without the written consent of the Lessor, and any such modifications or additions to said property shall become the property of the Lessor upon the termination of this lease or, at Lessor's option, the Lessee shall restore the Leased Property at Lessee's expense to its original condition. The restrictions of this paragraph shall not apply to maintenance of the Leased Property, but shall apply to any change which changes the architecture or purpose of the property or which changes any of the interior walls of the improvements or which annexes a fixture to any part of the Leased Property which cannot be removed without damage thereto. In the event Lessee desires to make any alterations or modifications, written notice shall be given to the Lessor. Unless the Lessor objects to such proposals by notice to Lessee within twenty (20) days after written notice from Lessee, the proposal shall be deemed approved. Lessee shall have no power or authority to permit Leased Property in connection with maintenance, alterations or modifications. Lessee shall, within fifteen (15) days after notice from Lessor, discharge any mechanic's liens for materials or labor claimed to have been furnished to the premiseson Lessee's behalf. Not later than the last day of the term Lessee shall, at Lessee's expense, remove all of Lessee's personal property and those improvements made by Lessee which have not become the property of Lessor, including trade fixtures and the like. All property remaining on the premises after the last day of the term of this lease shall be conclusively deemed abandoned and may be removed by Lessor and Lessee shall reimburse Lessor for thecost of such removal. 10. RISK OF LOSS . All personal property placed or moved in the premises shall be at the risk of the Lessee or owner thereof. The Lessor shall not be responsible or liable to the Lessee for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connected with the premises hereby leased or any part of the building which the Leased Premises are apart of or any loss or damage resulting to the Lessee or its property from bursting, stopped up or leaking water, gas, sewer or steam pipes unless the same is due to the negligence of the Lessor, its agents, servants or employees. 11. RIGHT OF ENTRY. The Lessor, or any of its agents, shall have the right to enter said premises during all reasonable hours, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit Item # 5 Page 3 of 9 Attachment number 2 \nPage 4 of 9 said premises. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations or additions, which do not conform to this agreement. 12. RESTORING PREMISES TO ORIGINAL CONDITION. Lessee represents that the premises leased are in good, sanitary and tenantable condition for use by Lessee. Lessee's acceptance or occupancy of the Leased Premises shall constitute a recognition of such condition. Lessee hereby accepts the premises in the condition they are in at the beginning of this lease and agrees to maintain said premises in the same condition, order and repair as they are at the commencement of said term, and to return the premises to their original condition at the expiration of the term, excepting only reasonable wear and tear arising from the use thereof under this agreement. The Lessee agrees to make good to said Lessor immediately upon demand, any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the walls or the building caused by any act or neglect of Lessee or of any person or persons in the employ or under the control of the Lessee. 13. INSURANCE B attached hereto and made a part hereof as if said document were fully set forth at length herein. 14. MAINTENANCE . Lessor shall keep the foundation, outer walls, roof and buried conduits of the premises in good repair, except that the Lessor shall not be called on to make any such repairs occasioned by the negligence of the Lessee, its agents, express or implied invitees, or employees. Lessee shall keep the inside of said premises and the interior doors, windows and window frames of said premises in good order, condition and repair and shall also keep the premises in a clean, sanitary and safe condition in accordance with law and in accordance with all directions, rules and regulations of governmentalagencies having jurisdiction. The Lessee shall be responsible for providing all light bulbs used on the premises. The plumbing facilities shall not be used for any other purposes than that for which theyare constructed and no foreign substances of any kind shall be thrown therein, and the expense of any breakage, stoppage or damage resulting from the violation of this provision shall be borne by the Lessee. The heating and air-conditioning system and plumbing facilities shall be under the control of Lessee, and Lessee agrees that all operation, upkeep, repairs and replacements will be at Lessee's expense, except where the repairs or replacements shall be caused by the negligence or misuse by Lessor or its employees, agents, invitees, or licensees. In the event Lessor pays any monies required to be paid by Lessee hereunder, said monies shall constitute additional rent hereunder, and Lessor shall demand repayment of same from Lessee and Lessee shall make payment within ten (10) days of receipt of said demand. Lessee's failure to make such repayment within the ten (10) day period shall constitute a default under the terms of this lease. 15. DESTRUCTION OF PREMISES . In the event that the building should be partially or totally destroyed by fire, earthquake or other cause, this lease may be terminated by either Party hereto. Lessor shall not be required to repair or rebuild. Lessee, may, at its discretion, choose the Lessee intends to rebuild or repair the premises, he shall, within fifteen (15) days after the date of such damage, give written notice to Lessor of the intention to rebuild or repair and shall proceed with Item # 5 Page 4 of 9 Attachment number 2 \nPage 5 of 9 reasonable diligence to restore the building to substantially the same condition in which it was immediately prior to the destruction. 16. EMINENT DOMAIN . If the whole or any part of the premises hereby leased shall be taken by any public authority under power of eminent domain, then the term of this lease shall cease on the part so taken from the date title vests pursuant to such taking, and the rent and any additional rent shall be paid up to that day, and if such portion of the Demised Premises is so taken as to destroy the usefulness of the premises for the purpose for which the premises were leased, then from that day the Lessee shall have the right toeither terminate this lease or to continue in possession of theremainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the premises taken. The parties agree that the Lessee shall not be entitled to any damages by reason of the taking of this leasehold, or be entitled to any part of the award for such taking, or any payment in lieu thereof. 17. SUBORDINATION . This lease and the rights of the Lessee hereunder are hereby made subject and subordinate to all bona fide mortgages now or hereafter placed upon the said premises by the Lessor and any other owner provided, however, that such mortgages will not cover the equipment and furniture or furnishings on the premises owned by the Lessee. The Lessee further agrees to execute any instrument of subordination which might be required by mortgagee of the Lessor. 18.DEFAULT; REMEDIES . (a) The Lessee further covenants that, if default shall be made in the payment of rent, or any additional rent, when due, or if the Lessee shall violate anyof the othercovenants of this lease and fail to correct such default within fifteen (15) days after a written request by the Lessor to do so, then the Lessor may, at its option, deem this lease terminated, accelerate all rents and future rents called for hereunder and Lessee shall become a tenant at sufferance, and the Lessor shall be entitled to obtain possession of the premises as provided by law. (b) In case the Leased Property shall be abandoned, as such term is defined by Florida Statutes, the Lessor, after written notice as provided by Florida Statutes to the Lessee, Lessor may (i)re-enter the premises as the agent of the Lessee, either by force or otherwise, without being liable to any prosecution or claim therefor, and may relet the Leased Property as the agent of the Lessee and receive the rent therefor and apply the same to the payment of such expenses as Lessor may have incurred in connection with the recovery of possession, reduction, refurbishing or otherwise changing or preparing for reletting, including brokerage and reasonable attorneys fees. Thereafter, it shall be applied to the payment of damages in amounts equal to the rent hereunder and to the cost and expenses of performance of the other covenants of Lessee as provided herein; or (ii) the Lessor may, at its option, terminate this lease by giving the Lessee fifteen (15) days' written notice of such intention served upon the Lessee or left upon the Leased Property, and the term hereof shall absolutely expire and terminate immediately upon the expiration of said fifteen (15) day period, but the Lessee shall nevertheless and thereafter be liable to the Lessor for any deficiency between the rent due hereunder for the balance of the term of this lease andthe rent actually received by Lessor from the Leased Property for the balance of said term. Item # 5 Page 5 of 9 Attachment number 2 \nPage 6 of 9 (c) The Lessor, at its option, may terminate this lease as for a default upon the occurrence of any or all of the following events: an assignment by Lessee for the benefit of creditors; or the filing of a voluntary or involuntary petition by or against Lessee under any law for the purpose of adjudicating Lessee bankrupt; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; or the appointment of a receiver of the assets of Lessee; or the bankruptcy of the Lessee. Each of the foregoing events shall constitute a default by Lessee and breach of this lease. (d) Lessor, at its option, may terminate this Lease in the event that the City Council determines, at a duly constituted City Council meeting that the Leased Premises are required for other municipal purposes and serves Lessee with thirty (30) days written notice. 19.MISCELLANEOUS . (a) The Lessor shall have the unrestricted right of assigning this lease at any time, and in the event of such assignment, the Lessor shall be relieved of all liabilities hereunder. (b) This contract shall bind the Lessor and its assigns or successors, and the Lessee and assigns and successors of the Lessee. (c) It is understood and agreed between the partieshereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. (d) It is understood and agreed between the parties hereto that written notice sent by certified or registered mail, or hand delivered to the premises leased hereunder, shall constitute sufficient notice to the Lessee, and written notice sent by certified or registered mail or hand delivered to the office of the Lessor shall constitute sufficient notice to the Lessor, to comply with the terms of this contract. (e) The rights of the Lessor under the foregoing shall be cumulative, and failure on the part of the Lessor to exercise promptly any rights given hereunder shall not operate to forfeit any of the said rights. (f) It is hereby understood and agreed that Lessee shall use no signs in connection with the premises hereunder, except existing signs and signs inside the building, which signs shall be subject to the prior approval of the Lessor, and in accordance with the law. (g) It is understood that no representations or promises shall be binding on the parties hereto except those representations and promises contained herein or in some future writing signed by the party making such representations or promises. (h) It is hereby agreed that if any installment of rent or any other sum due from Lessee is not received by Lessor within five (5) days after such amount shall be due, Lessee shall pay to Lessor a late charge equal to five percent (5%) of such overdue amount. The Lessor shall not be required to accept any rent not paid within five (5) days subsequent of the date when due absent the simultaneous payment of this late charge. The requirement for a late charge set out herein shall not be construed to create a curative period or a grace period for the timely payment of rent. 20. SUBROGATION. Item # 5 Page 6 of 9 Attachment number 2 \nPage 7 of 9 The Lessor and Lessee do agree that each will cause its policies of insurance for fire and extended coverage to be so endorsed as to waive any rights of subrogation which would be otherwise available to the insurance carriers, by reason of any loss or damage to the Leased Property or property of Lessor. Each party shall look first to any insurance in its favor before making any claim against the other party. Nothing contained herein shall in any way be considered or construed as a waiver or release by the Lessor of any and all of the other covenants and conditions contained in this lease to be performed by the Lessee. 21. ESTOPPEL LETTER. In the event Lessor shall obtain a loan from an institutional lender, and if the following shall be a requirement of such loan, the Lessee agrees to execute an estoppel letter in favor of the lender verifying the standing of the lease, the terms thereof, and all amounts paid thereunder and such other matters as may be reasonably requested. 22. PARKING SPACES . Lessee shall have the right to use the parking lot adjacent to the building of which the Leased Premises is a part. 23. INDEMNIFICATION. The Lessee shall indemnify the Lessor against all liabilities, expenses and losses incurred by the Lessor arising out of or related to the Leased Premises, Lessee's use or occupancy thereof, to include but not being limited to (a) failure by the Lessee, Sublessees, or their agents, to perform any provision, term, covenant or agreement required to be performed by the Lessee or Sublessses under this agreement; (b) any occurrence, injury or personal or property damage which shall happen in or about the Leased Property or appurtenances resulting from the condition, maintenance, construction on or of the operation of the Leased Property; (c) failure to comply with any requirements of any governmental authority or insurance company insuring the Leased Property or its contents; (d) any security agreement, conditional bill of sale or chattel mortgage or mechanic's lien connected with Lessee or Sublessees, their obligations or operations, filed against the Leased Property, fixtures, equipment or personality therein; and (e) any construction, work, alterations or improvements by Lessee or Sublessees on the Leased Property. Such This provision shall survive expiration or termination of this Lease. 24. . The Lessee accepts the Leased P obligation to improve or remodel the Leased Premises. 25. CONSTRUCTIVE EVICTION . Lessee shall not be entitled to claim a constructive eviction from the premises unless Lessee shall have first notified Lessor in writing of the condition or conditions giving rise thereto and, if the complaints be justified, unless Lessor shall have failed within a reasonable time after receipt of such notice to remedy such conditions. Item # 5 Page 7 of 9 Attachment number 2 \nPage 8 of 9 26. JANITORIAL EXPENSES . Lessee shall obtain janitorial services for the Leased Premises at its expense. 27. SEVERANCE . The invalidity or unenforceability of any portion of this lease shall in nowise affect the remaining provisions and portions hereof. 28. CAPTIONS . The paragraph captions used throughout this lease are for the purpose of reference only and are not to be considered in the construction of this lease or in the interpretation of the rights or obligations of the parties hereto. 29.NO HAZARDOUS MATERIALS . The Lessee herewith covenants and agrees that no hazardous materials, hazardous waste, or other hazardous substances will be used, handled, stored or otherwise placed upon the property or, in the alternative, that such materials, wastes or substances may be located on the property, only if necessary for Sublessee to conduct normal business practices or upon the prior written consent of the Lessor hereunder, and only in strict accord and compliance with any and all applicable state and federal laws and ordinances. In the event such materials are utilized, handled, stored or otherwise placed upon the property, Lessee expressly herewith agrees to indemnify and hold Lessor harmless from any and all costs incurred by Lessor or damages as may be assessed against Lessor in connection with or otherwise relating to said hazardous materials, wastes or substances at anytime, without regard to the term of this lease. This provision shall survive the termination hereof. 30. CONFORMANCE WITH LAWS. Lessee agrees to comply with all applicable federal, state and local laws during the life of this Contract. 31. . In the event that either party seeks to enforce this Contract through attorneys at law, then the parties agree that each party shall bear its own attorney fees and costs. 32.GOVERNING LAW . The laws of the State of Florida shall govern this Contract, and any action brought by either party shall lie in Pinellas County, Florida. Item # 5 Page 8 of 9 Attachment number 2 \nPage 9 of 9 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date set forth above. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: _____________________________ George N. Cretekos, Chairperson Approved as to form: Attest: _________________________ ___________________________ Laura Lipowski Mahony Rosemarie Call Assistant City Attorney City Clerk ARTHUR CORNWELL CHESNUT, SR. AND JEANNE CASSENS CHESNUT JOINT REVOCABLE TRUST dated February 27, 1991, as restated November 3, 2007, and THOMAS T. CHESNUT individually Attest: __________________________ By: ________________________________ Witness Arthur Cornwell Chesnut, Sr. as Trustee __________________________ Print Witness Name __________________________ By: ________________________________ Witness Thomas T. Chestnut __________________________ Print Witness Name Item # 5 Page 9 of 9 Attachment number 3 \nPage 1 of 1 LOCATION MAP GROVE ST LAURA ST Proposed Acquisition PARK ST ² Legend: CRA & City Owned Land Adjacent to Prospect Lake Proposed Acquisition Prepared by: Item # 5 Engineering Department Geographic Technology Division 100 S. Myrtle Ave, Clearwater, FL 33756 Map Gen By:CRM Reviewed By: C_L Date:01/25/2013 Grid #:287A S-T-R:15-29S-15E Scale:N.T.S. Ph: (727)562-4750, Fax: (727)526-4755 www.MyClearwater.com Path: V:\GIS\Engineering\Location Maps\1005 Park St prospect lake\New Prospect Lake Land Holding.mxd Attachment number 4 \nPage 1 of 1 South R/W SARAH McMULLEN REPLAT 5 OR 16428 Pages 225-227 1-41 OR 16428 Pages 225-227 B COACHMAN HEIGHTS SUBDIVISION REPLAT 20 - 26 Legal Description: Parcel I and Parcel II, as described in the Official Records Book 16428, Pages 225-227 of the Public Records of Pinellas County, along with that portion of the vacated 15.4 foot alley way, described in the Official Records Book 6628, Page 1131 of the Public Records of Pinellas County, abutting each said parcel. Item # 5 Attachment number 5 \nPage 1 of 1 Acquisition Costs for the Purchase of 1021 Park Street Purchase Price $120,000 Environmental $13,329.23 + 10% contingency $1,332.92 Closing costs $50 Demolition / Asbestos $25,000 +10% contingency $2,500 Survey $2,200 TOTAL $164,412.15 Agenda memo states total expenditures not to exceed $165,000 Item # 5