06/18/2013 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES
CITY OF CLEARWATER
June 18, 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/CRA Executive Director,
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 9:01 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the April 29, 2013 CRA Meeting as submitted in written
summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the April 29, 2013 CRA Meeting
as submitted in written in summation by the City Clerk. The motion was duly seconded
and carried unanimously.
3. Citizens to be Heard re Items Not on the Agenda - None.
4. CRA Items
4.1 Authorize Executive Director to negotiate a Development and Purchase
Agreement with top-ranked development team, Prospect Real Estate Group, in
response to RFP/Q 12-13 (RFP/Q), to develop a mixed-use infill development on
the Cleveland Street and Prospect Lake Park Site.
The CRA released a Request for Proposals/ Qualifications (RFP/Q) 12-13 on
February 19, 2013 with the goal of selecting 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.
CRA 2013-06-18 1
The CRA highlighted several goals for this site-
* A mixed-use project with a primary residential component and ground floor retail
to support the workforce for the CRA's Technology District;
• Ability to begin construction of the project within a year; and
• Ability to attract the requisite financing for the project.
The deadline for responses to the RFP/Q was April 2, 2013. The CRA
received proposals from the following four development teams-
* Bayshore Broadway, Inc.
• Hatfield Development Co., Ranck and Associates, Oxford Properties
• New Vision Communities, LLC; and
• Prospect Real Estate Group.
A Selection Committee, made up of the Executive Director of the CRA, Planning
and Development Director, Engineering Director, Real Estate Coordinator, and
the Economic Development and Housing Director (Chairperson), evaluated all
written submissions according to the following evaluation criteria stated in the
RFP/Q:
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 Committee met on April 25, 2013 to review the proposals and rank the
proposals for oral presentations. The Committee invited all four respondents to
present their proposals for greater clarification. The development teams presented
their proposals to the Committee on May 8, 2013. Subsequent to the oral
presentations, the Committee completed their evaluations, rankings, and
reference checks of the four proposals.
The final ranking is as follows:
1) Prospect Real Estate Group
2) Hatfield Development Co.
3) New Vision Communities, LLC
4) Bayshore Broadway, Inc.
The Selection Committee unanimously recommends negotiations with Prospect
Real Estate Group, the top-ranked development team, for the following reasons-
* Experience - The development team showed strong experience working as a
team in developing mixed-use infill developments (residential and retail) in
CRA 2013-06-18 2
downtown redevelopment areas (Tampa's Encore and Orlando's Creative
Village).
* Financial Feasibility - The development team has submitted letters of interest for
both debt and equity. A review of their financials shows ability to perform.
* Conceptual Development Program - The mixed-use project is consistent with
CRA goals and vision for the site.
* Economic Benefit to CRA - Proposed purchased price of$2.5 million for the site
is within market standards of pricing land cost on a per unit basis. The incentives
requested are an estimated 42 units from the density pool as well as assistance
with the build-out of the retail spaces and marketing the retail and live-work units.
Prospect Real Estate Group proposed a $34 million project to include 247 market-
rate one and two-bedroom units with 8 live-work units, a strong residential
amenity package and 15,000 square-feet of retail on Cleveland Street. The
proposed design is urban, modern and well-designed, incorporating green
techniques and views to Prospect Lake. The size, unit mix, and proposed rents for
the units are consistent with market rents for similar projects in St. Petersburg and
Clearwater.
While the developer also proposed a 15,000 square-foot building as a potential
business incubator to be funded by the CRA on the Park Street outparcel, the
building is optional and does not affect the proposed development financials and
pro-forma.
In summary, the Prospect Real Estate Group's proposal meets all stated CRA
objectives-
* A market-rate, urban residential project with ground floor retail;
• Ability to finance the proposed $34m project;
• Ability to construct the project in the timeframe requested; and
• A purchase price of the site within market value.
Next Steps:
1) Staff negotiates a Development and Purchase Agreement;
2) CRA Board considers Development and Purchase Agreement for approval;
3) Developer files development application with Planning and Development Dept;
4) CDB considers site plan; Development order is issued;
5) Developer files for permits;
6) Property transfers according to purchase terms in the Agreement;
7) Construction commences.
CRA 2013-06-18 3
Prospect Real Estate Group (Prospect) CEO Mark Filburn said Richard Zahn removed
himself from all ties to Prospect at the end of last year when an investigation into a
personal matter came up. Prospect did not disclose the matter because it no longer
had any affiliation with Mr. Zahn.
In response to questions, the City Attorney said the RFP did not include a statement
requiring the disclosure of criminal charges against a director or member of the
company. The RFP does refer to the Public Entity Crime Provision, Florida Statute
287.132 and 287.133. There is no statutory requirement to disclose an arrest or guilty
plea of an individual who is no longer affiliated with the entity submitting a proposal.
The City Attorney said Prospect has submitted information documenting Mr. Zahn is no
longer affiliated with the entity.
A concern was expressed that the information on Mr. Zahn was not disclosed prior to a
recently published newspaper article. It was suggested that consideration be given to
require entities providing an RFP submittal to disclose when a member of the entity has
been arrested or charged within the last six months.
The City Attorney said at the time the RFP was issued, Mr. Zahn was no longer
affiliated with Prospect.
In response to questions, Prospect representative Leigh Fletcher said Mr. Zahn
resigned from operational control and legal ownership interest in December 2012.
Prospect's bonding capability is $100 million.
CRA Executive Director Rod Irwin said the development agreement will delineate
project benchmarks and performance standards, as well as the terms and conditions.
Staff will present the development agreement and the purchase contract within the next
ninety days. The City Attorney said the performance standards are subject to
negotiation. The City owns and controls the property. The purchase of the property is
not expected to occur until the Community Development Board grants the development
approval.
It was suggested that the development agreement include language requiring payment
to the City if the performance standards are not met.
Two individuals spoke in support.
Trustee Bill Jonson moved to authorize the Executive Director to negotiate a
Development and Purchase Agreement with top-ranked development team, Prospect
Real Estate Group, in response to RFP/Q 12-13 (RFP/Q), to develop a mixed-use infill
development on the Cleveland Street and Prospect Lake Park Site. The motion was
CRA 2013-06-18 4
duly seconded; Trustees Paul Gibson, Doreen Hock - DiPolito, Bill Jonson, and Jay E.
Polglaze voted "Aye "; Trustee George N. Cretekos voted "Nay ".
Motion carried.
5. Adjourn
The meeting adjourned at 9:50 a.m.
Attest
1r ,1I�a� ct_
City Clerk
\```0111111111 ,/,„ Chair
��� -\NAT r. Cjty of Clearwater
\�VP QORATE ✓.��0��'.c'
'-d Cp4 p
t o
SEA z
//J FLOFI��P.`��`�.
/11ff111l11111 W
CRA 2013 -06 -18 5