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06/18/20131. Call to Order 2. Approval of Minutes COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 6/18/2013- 9:00 AM 2.1 Approve the minutes of the Apri129, 2013 CRA Meeting as submitted in written summation by the City Clerk. � Attachments 3. Citizens to be Heard re Items Not on the Agenda 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 Stre� and Prospect Lake Park Site. � Attachments 5. Adjourn Community Redevelopment Agency Agenda Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:6/18/2013 Approve the minutes of the April 29, 2013 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo Item # 1 Attachment number 1 \nPage 1 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER � p � �;.�, , '<% r ��,.+W�� d �� s 2%Il d' ��1 _�� 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 — CRA Executive Director/Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague - Official Records and Legislative Services Coordinator. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. �� 1. Call to Order — Chair Georqe N. Cretekos The meeting was called to order at 1:00 p.m. at City Hall. 2. Approval of Minutes �' 2.1 Approve the minutes of the March 18, 2013 CRA Meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the March 18, 2013 CRA Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard re Items Not on the Aqenda — None. 4. CRA Items 4.1 Approve Rental Assistance Agreement, Promissory Note and Personal Guaranty of Agreement between the Community Redevelopment Agency (CRA) of the City of Clearwater and Great Circle Studios, LLC., a web site development company participating in the City Virtual Incubator Program , concerning the provision by the CRA of loan-to grant rental assistance in the amount of $20,000, distributable monthly over a twenty-four month period in equal monthly distributions of $833.33, to facilitate the consolidation and expansion of CRA 2013-04-29 Item # 1 Attachment number 1 \nPage 2 operations into the premises known as 600 Cleveland Street , Suite 200, Clearwater, Florida, and authorize the appropriate officials to execute same. The Economic Development Strategic Plan adopted by the City Council recognizes the potential of establishing and fostering the existing IT/software presence in the Cleveland Street District as one strategy for increasing the economic base, expanding the base of above-average employment opportunities, as well as assisting in the redevelopment of the Downtown area. The initiative involves both recruitment of established firms to the Technology District and, particularly in the case of IT/software industry clusters, providing an environment for start-up, early stage and accelerator firms to develop and grow through the collaborative interaction of the industry concentration in the District. Most job growth in the IT/software space comes from the growth and expansion of these start-up firms, and not from recruitment of established firms. Great Circle Studios is one of the accelerator firms in the District, poised to expand and grow with the appropriate support and assistance. The traditional approach to supporting the latter group of start-up, early stage and accelerator firms is through establishment of an Incubator facility with supportive services and management. The facility and operational costs are usually underwritten by the governmental sponsor, with industry members assisting with services and counseling. It involves significant contributions of capital and operating funds and usually needs a ready collection of clients to warrant the investment. Since the City/CRA are in the early stages of Technology District development, and the numbers of potential Incubator candidates are limited, pursuit of an Incubator does not appear to be cost effective or feasible. Rather, the City/CRA have chosen to pursue a Virtual Incubator strategy, with services provided to target firms in commercial office buildings in the CRA area, and services provided under contract by the Tampa Bay Innovation Center, located at the County STAR Center. It is a more cost effective and efficient approach for where the Technology District finds itself from an evolutionary standpoint. However, a current impediment to fostering startups and accelerator firms is the lack of affordable lease space in the Downtown market. Virtually all available, suitable space is in the B+-A category with per square foot rentals between $15 and $22, far above the rate affordable for an early stage firm. Comparable firms can find rental space in Tampa for $7-$9 per square foot. Clearwater is at a distinct disadvantage in this regard, and must offset this impediment to allow the market to flourish. The Technology District Incentives fund approved by the CRA Board last year is intended to be utilized, in part, to even the playing field in that CRA 2013-04-29 2 Item # 1 Attachment number 1 \nPage 3 regard and fashion assistance initiatives to allow early stage firms to develop and expand in the collaborative Technology District environment critical to success. The Great Circle Studios rental assistance agreement falls into this category. The firm has negotiated a favorable lease to move into 1,812 square feet of the Bank of America building, with the landlord providing a built out suite, as well as rent concessions, to provide a turnkey occupancy and a five-year lease with enough expansion space to accommodate their growth projections. They have been successfully vetted by the Tampa Bay Innovation Center intake board and have agreed to a service program provided by the Center going forward. However, the required monthly rental of $2,337.92 ($15.50 per square foot) is beyond the ability of Great Circles to absorb over the next 24 months of company expansion and growth. They can only absorb a rental rate of $10+/- per square foot. The CRA rental Assistance Loan-to Grant is designed to bridge that affordability gap and allow the lease to be underwritten. The $833.33/month rental assistance, continuing for 2 years of a five-year lease, will be distributed directly to the landlord on behalf of the tenant, with the loan supported by a Promissory Note and Personal Guaranty executed and enforceable against all of the principals of Great Circle Studios. The assistance is structured as a loan-to-grant with amortization 20% per year over the term of the lease. Liability for repayment will be based upon failure to perform under the lease and /or breach of contract terms. Staff supports this Agreement for the following reasons: 1) The assistance is 100% funded by CRA TIF revenues, which by design are intended to allow CRA's the flexibility to address the particular challenges of redevelopment and growth in CRA areas in a more creative and innovative way than is the case with general governmental funds. Greater risk and creativity are required and anticipated. 2) This agreement offsets the structural impediment to our Technology District development, namely the unavailability of reasonable office space for early-stage and accelerator firms. The City/CRA must creatively address this issue in the short term to achieve the larger goal of economic expansion of IT/software clusters in Downtown. 3) This type initiative is facilitative of the City/CRA virtual incubator strategy, thereby avoiding the possibility of greater long-term cost and operational impact of a physical incubation facility at this point. Some additional risk is offset by greater cost avoidance. CRA 2013-04-29 Item # 1 Attachment number 1 \nPage 4 4) Staff would consider this primarily a one-off solution to a particular set of circumstances and not a precedent for our technology incentive initiative. The basic approach in the past, and going forward, will continue to be assistance through participation in capital and TIA, with security for the investment based upon a security agreement with the building ownership. However, the particular circumstances of this situation, a turnkey occupancy needing no capital improvements and a property under transitional ownership not desiring to complicate marketability, indicated a different approach required to get the deal completed. 5) The structure of this Agreement is such that the funds are distributed over a twenty-four month period, not at the outset, which will give the CRA risk exposure control to assess the performance of the lease before all the funds are released. If approved, staff recommends funding from CRA Project 94872, Technology District Incentives. In response to questions, Great Circle Studios, LLC representative John Stanard said the company focuses on social media marketing and search engine optimization for small businesses and the company has grown 2 1/2 times its size in the last year. Trustee Doreen Hock-DiPolito moved to approve Rental Assistance Agreement, Promissory Note and Personal Guaranty of Agreement between the Community Redevelopment Agency (CRA) of the City of Clearwater and Great Circle Studios, LLC., a web site development company participating in the City Virtual Incubator Program , concerning the provision by the CRA of loan-to grant rental assistance in the amount of $20,000, distributable monthly over a twenty-four month period in equal monthly distributions of $833.33, to facilitate the consolidation and expansion of operations into the premises known as 600 Cleveland Street , Suite 200, Clearwater, Florida, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. The meeting adjourned at 1:18 p.m. Attest City Clerk CRA 2013-04-29 Chair City of Clearwater 4 Item # 1 Community Redevelopment Agency Agenda Council Chambers — City Hall Meeting Date:6/18/2013 SUBJECT / RECOMMENDATION: Authorize Executive Director to negotiate a Development and Purchase Agreement with top—ranked develo�nent 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. SUMMARY: The CRA released a Request for Proposals/ Qualifications (RFP/Q) 12-13 on February 19, 2013 with thegoal of selecting a qualified Development Team to successfully develop the 5.91+/— acre site located on Cleveland Street ald Prospect Avenue in Downtown Clearwater, one block east of the Downtown Core. The CRA highlighted several goals for this site: * A mixed—use project with a primary residential mmponent 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 April2nd. 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 25th to review the proposals and rank the proposals far oral presentations. The Committee invited all four respondents to present their proposals for greater clari�cation. The development teams presented their proposals to the Committee on May 8th. 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—�anlced development team, for the following reasons: * Experience — The development team showed strongexperience working as a team in developing inixed—u� infill developments (residential and retail) in downtown redevelopment areas (Tampa's Encore and Orlando's Creative Village). * Financial Feasibility — The development team hassubmitted letters of interest for both debt and equity. A revie�v of t�l eir financials shows abiliry to perform. over emo * Conceptual Development Program — The mixed—use poject is consistent with CRA goals and vision for the site�terp # 2 * Economic Benefit to CRA — Proposed purchased pr�e of $2.5 million far 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�ut 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—bedrom units with 8 live—work units, a strong residential amenity package and 15,000 square—feet of retail on Cleveland Street. Theproposed design is urban, modern and well—designed, incorporating green techriques 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—fiot 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 rr�eets all stated CRA objectives: * A market—rate, urban residential project with gnund 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. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant Ciry Manager 5) City Manager 6) Clerk Cover Memo Item # 2 May 8, 2013 Presented by: Roxanne Amoroso Frank Tetel Tim Baker LL ° e arv�a r U � .-. � .-. .. .� f City of CEearwater Cnrmmunfty Redevelopment Agency �� [� � � n ��"T' REAL ESTATE 1\ 1 1 GROUP growth guided by experience Development of the Cleveland Street & Prospect Lake Park Site � � �� R�4 � � � �� 1 �� . � .� � �!; � � � --�.r—� _ �f _ �! _ � _. i �� .� . ';j t� �..�r� �� -:� �` �' !� � � �� r' , r �� ; �� !�. � ___ .- �� -� �rh�.::�+�i�� .� wtr � � f - .� 'r ` �'I • k` ' �` : � �� F� ��,� .i_ � r �� , � �- . a�.au •i i 3� �'� ��1(1�� r �■ _. . !,, ..,` � � �' A � � �� '� « I . �� .� � "� i . �� T" r,� �� ' Il �i � -� : �� i .i►;, � � �,�►.� .. �� s� � ! �. � Introduction h� COHENIIIm � REAL ESiATE CAPRAL �C � � y�l , L "� nnnaROSo RE Oewelc�i��7�. �-. I-: � . � � �. , . . _�� .. . � �o��.A��.�o.,. �� rc'7I'[�17Q TBE Shaping ihe FuNre +a�,. j ` y�. � �' KELLERHALS T FERGUSON FLETCHER KROBLfN LLP �r,. i Item # 2 , �� JO P�Q�PE�T I GROUpSTATE growth guided by esperience � CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE �/I S I O I'1 � ,�'� � , � _ �': •-�,� f, � � , ��, , � ,, ��, , A place where creativity comes together in an innovative way. A new LIVE, WORK and PLAY neighborhood that defines a new industry cluster for the urban professional. �JO P�Q�PE�T I GROUpSTATE growth guided by esperience I � I ��,�l� � �' ��h� �� Item # 2 i �� _ ��.� _ e:�ie9-1t�. .. ....:4'�. 1� �� :, CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET & PROSPECT LAKE PARK SITE The Plan ■Placemaking that drives creative industry ■Reinforce the urban edge ■Cluster the retail, create plaza ■Connect the urban street �,�� - �� r�� o ■Embrace the lake „� � -' �, � _ �. �� . � -(} � i v, ■Walkable, bikeable community '' ,`, �: �., ■Transit connectivity ■Art & Programming CLEVELAND SiREE7 � u ° 'Jo I �� `;� o � �}_� �� ` � ,P.,, � �;; �," o I,` � � ) �.,�� 9,. (7 � �-^� � �' .1.� . r `y �� :4, ,.x` � : � �� :� �� :� 1. �-c: _ ,-� , � � D (. c�. � , _ �� JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience � � �. � � c�c: � � �� CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE � � 0 � � w S � Z � � The U rban Edge • Activate Cleveland Street • Scale / texture � The "it" factor • Street rhyth m � Layer the art ' � �� - �. ' ' � ' � � �� .. .� , .� •fi � _ � , ' � ,� � �� — � �•��.� _ _ �� - �� ,.�, "„ ��.. � a' � � � � ; _ � � � � � i,� �,� a — �� .+,�• ri :'} ` x "�_ ` �I 3 _ �.'' r :-�, � . . T �- _ ' - ;� :. ��+t' �.,y_,i�,� �_�`'�� ` � w '�I ML � �� d. _ o� �� , .. � 9'� 1 � � � } . � . ��I` �� L .�� `� � s �` �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience �' � .! � �- � a i .r � - o'� ; �',' I � �� i ` _ � _� � . �. �� r _1 _I� � :. . ~q ° � � ��. ry `P � � ,. � � � � �� , . 1� � " � ,� � zr . _ _ � ,��, ��- �-,.,� � . � . r � . . . �i:�� ' :��' ~ c�r . _: _ � � ■ ,. • �- � � � � � _. _ � . . -!� n �. �� 3i� .�-cai, �. ' - _ _ It r.^ 1� � i■ a�� ll�lll �l�ll .__ « �i�i`riiii * 7 �� y � � r � `�� ,�,y?.. � �'I � � J � ' ' �.� �:, .� � �'� lllt ��..�:��ii 1, � � �_`- ��yy�� =� ^� Item # 2 I I � t� � � �ii %_�.I!_ . w�;;;; -� . i� ' fiu � �, � !!. . e �. w. �,� ' Ft °- � �� !� A � T;�� CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET & PROSPECT LAKE PARK SITE The Plaza - Clearwater "Live" . ■ . ■ . Cyber cafe Cluster the retail Program the plaza See & be seen Cool factor �i�% �i �1'; : . -s Il ' .� 11�. � __ . �. I ■' �� ■, � � .� �, �� I r� �� ■I ■� �r � �� I�� ■ i ' I � „ ■ �! �-��_ i� �so� � �� I �. . . �.+�:.�� ;� � ��; a ,� .. �, , r_,•.�. ` ��' - �O P�Q�PE�T I GROUpSTATE growth guided by esperience � _ �-� � ,_ _._ -" "� �� F. �� ; �. ��, � � , � �� es s� � �� 7 ��,�i , ��, � �--� � _ , �I�I " " � ' _ ' �� e k"iP r C� 1 z.� :_ �� a - �� f �I1�--'-. .1+ , f� �: ' ' ��}" � o I� � � �,__: �—� ...,, 1 a� i �� '' _�� _. - �� ' �, �, ' .� � — I�i �ii =' �ijp ' j ° ;� ,� 1� m— —�' ' ;�;,� � : ��' 1! CI�� IiYIA'I �� Ff.'+� Rm'A� ... �s'�� ..w � 1��r� � Iw t� I�Ij�� s r� "�r�- �-�, ��.. �� I■ !■ � �� 1� 1� !�� 1 �. �i � � �� ,�� 1��,_ �� r -�_. ,� � t I ,. _� 1 1 �� .�1 � �-''1 rr � sa.h7�a�i• ,� ° �y� I � ' I - � � '� U.. J� �iJ �.� ��f� ��r .� .� - �� _, � � r" � � �-- � � ��' �m' � - - �,. �M �. �� _ '�� 4�.�0 ,�� I _L : s rr� ■ r�I� _ " 'F R � �i „w nn rra s�w 9�.1 �� , �� .� �� '�- � ��'�'l11 :� _� - ��* rP _�r °�� c� � — � �:: �� . T I; �`"�� y '` �� k � ' ��,. ,� V� Item # 2 �_ � � � CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Embrace the Lake ■ Brownstones on the water ■ Eyes on the park ■ New amenity features ■ Promote Prospect Lake z �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP grawth guided by esperience 3 L�L' i#� __ ��r-t� �1 , ;� �'1,rif ,', f� � � �` 1 ��a �' ti'� �a� �",�� " �i�,. - � ��'.Gry i �: �� _ rp . �� ` P(;� _ �� -�, ` � - �- _ �s..- -- - � -�` ,� � � = � � i �i. °,,� : � -_, � - , �� _ � � �! �' � � � r�t' M i 1 ,�fv t n �� I^ N�_ �,. f l � _ � _ � - � , � x � � � ,� �. � , _� � ' i y!, �� -- 1 � �..._. � !r:_, 4�. F ° ` . _�� 'lA�' _ `'�i; � - � � I - r;�. y .�1�- ,� .�_ �:�a -. r � -� � . - � �'� •-�"- -�.: �:�r t' � �_ ��.. �- .` �`� _ ��;��`� �_ _ _ - _ _ �.. _- �.,• �: ° .-�`- �--- N � • � _ f �_ : �. �� s�y � � c '' �� _� _�� - = �� . _ ..,� � �-_ �..��; - � �.- � =�--- - _ - ._ : `� ,,�-� _ � . � _. ,,� d � _ � _ � . _� � -,�-, -�..` � ...� -�; � � ,.a� _ `, -z j '`�.s_�' __-�` °�i'a�. j ,.. �c ..' �� . / d�i . �.�► ! ,/r, . � � a � `_.+�i�sF _"f'-,ti,� r�' -'�� - _ I , � Item # 2 ��'T �8�� i1. -- �° � -��-� �'� � z,��, _ � �.,�_ _ =}: � . � f� � � �t;� � ��4 t � ti '1"�'� . 1t1 :'�:�i� �f�� CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Work - New Industry Cluster . . . . � Co-working space Membership driven The future work environment Flex-space „�.�� . � �. _ -- . �O PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience I � �- � i _� „ _ ,. - �.�.,� � ; __ � ,�, � � i , � � i � _ • - . �. . - �.� . �� - � � - � _ � , �� 0 s+-� < � � � �;.� � -� ,. � � _�-_- �� ;� r � , � ,� �� _-,-=� Item # 2 �, ryti� �/, �. CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Amenity Program 6,000 SF Retail ! -. -�r � � I R,@TA; L _ --°-- 9L1�9 SF �':-- I - LJ Cyber Cafe _ �Y�e��.�E �� F �S � �'a � Fitness Center �� = -� � Club House � -- _ _ � • -,,��, �,� ��;��' --� � _ . � � - �, � � Swimming Pool�= - .T - � � � '� , .� �� _� �O PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience � � � �;�r�,� 9, 000 S F Reta i I °.y:�U SF �� ,�` � � },e � �f l � RL4�7EFiTIqL � hA+E!�TY r r 75�i SF I� �� i F�GRF,.4.TI &FC�� '��,��;' �'��, s�� ._,. � �- Residential Amenity Space ROutdoor Garden and Recreation BBQ Pavilion .-�- �� :--' i Club House �� :`�, � Dog Park h'4 � I CITY OF CLEARWATER CONiIViUIVI"i�Y Ft�UEVELUF'fVitlV I AG�IV(;Y • �EVt��-��YV i�DF 7iit CL�vt�r�iNU � � Ktt � r� wKUSf�ECT LAKE PARK SITE Market Feasibility The Tampa Bay apartment market is healthy �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience ...�� c� ��r�� r�r�� rur ��:� Employment: Increasing by 22,800 jobs Occupancy: Rents: Increasing to 95% occ. rate Increasing 3.5% from last year Marcus & Millichap Real Estate Research 2013 Annual Report Item # 2 CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Market Feasibility Reta i I S pace > > > > �. .. � •� i�� ! �I �I � �1 �i II Significant street presence but easily absorbed �O PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience Great visibility on Cleveland Street with 9,500 vehicles per day Developer casts the retail — selects complimentary tenants Retail enhances the community (virtuous cycle) � ��. ! � � � 1 , �� i �� i� �I .� ' f - � � � w "� . i �' �1 � e � � �' �� ' �Y• . � �' � jt'� t� �� 1� i Q� ��.� _ -„ . . _ � ` � ;� � �� ir _ _ � �1 �7 � j=t i1 �� - ,� �" � � '�;'� n � �' '��' '� � � l � �� !� �� f� • ;i1 � � �7 � � !{ - � �i � �� /� � 1 ? ' � i �' � �� ,. � }p � �� r �.�+,'4�:'�Wi��.- `..� - � � � ��_ �� ^y � � � � � �.. � " — 1!� !� � CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • � � _ DEVELOPMENT OF THE CLEVELAND STREET & PROSPECT LAKE PARK SITE � � ■ Market Feasibility Residential > Quality product in excellent location > Stylish design with appealing floor plans > Array of amenities plus Prospect Lake Park Amalfi Apts rents $1,225 - $1,600 .� � � �, � - �,. .;,��- � �`��. � � s�'` � '�� y. _� 1 1��r. 1-, �� +� "7 � I�l � � ' a I ..� . � � '�� _ ; �R1 � � •`;T�. � � � � .. � "�� .II�i" � � . �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience Prospect Place proposed rents $1,125 - $1,325 �, " .,: , �� , �' ., � � �� i � ,� ,� � . I� _ � � � �� :_q� ��. � A� �^ �� i � � � �� ., � ,, ii i � �. .� ., • , ' ��,. -a� � : o.,�+';�_ x 'y. �--=;-� � Item # 2 , � , � - = - -� r � � �, , . -� . rr�`� . '� . . . '� R _. —^ . .- . � . �: � � ��7�Y - � . '— :�� .. �1 � - -- a � � � CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Market Feasibility �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience "The large generation-Y demographic cohort orients away from the suburbs to more urban lifestyles, and these young adults willingly rent �smaller-sized] apartment units as long as neighborhoods have enticing amenities with access to mass transit. " - Urban Land Institute, 2013 Emerging Trends in Real Estate �� 1 � "Bottom line? In real estate, smaller, leaner and more urban trends will all become big drivers in 2013. " - Robert Trigaux, Tampa Bay Times 10/17/12 Item # 2 CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Fi nanci ng Forge Capital Partners has strategy proposed by Prospect, reviewed and forma for Prospect Place Apartments. includes equ�ty. the $25,579,097 loan cost �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience the financial approves the pro The financial plan and $8,400,000 °�� r '� ,� f�,�, � � � � _ r�, i � i � ry � � i � � � �`� Peter Collins, Principal Forge Capital Partners Item # 2 CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Fi nanci ng Loan Amount: Approximately $25,500,000 (up to 75% of acquisition and development costs) �JO PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience �� ; �' �� ,� ,�� ° � ��,� � �, ,� �` � �i �� , � � � �� r� a� ``�� < � � � � ; �, ��"� �. �� ► � �� 1 �� I � I � � �I ' Todd Cohen, Principal Cohen Real Estate Capital Item # 2 CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Timeline �JO P�Q�PE�T I GROUpSTATE growth guided by esperience Task Name Duration Start Finish 20�3 2014 2o�s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cleveland Street Redevelopment 630 days Tue 2119I13 Mon 7l20115 Release RFP1Q 0 days Tue 2119I13 Tue 2l19113 � 2I19 Proposal Submittal Deadline 0 days Tue 4(2113 Tue 4I2113 � 412 Approval of Selection by CRA 56 days Tue 4!2l13 Mon 6110f13 � Negotiakians and Legal Documenks 96 days Tue 6111113 Mon 10/14/13 � Pre-Design and Master Planning 42 days Mon 912113 Mon 1U114113 � Construction aesign Dacuments 75 days Tue 10115!'�3 Mon 1127114 Review antl Permitting 66 days Tue 1l28l14 Mon 4121114 � Canstruction 325 days Mon 4I21I14 Mon 7120l15 Start Construction Q days Mon 4f21114 Mon 4121114 A4121 Environmental Cleanup 90 days Tue 4122114 Mon 8125114 � Sitework 120 days Tue 4122l14 Mon 1016114 � Building Construction 265 days Tue 7115I14 Mon 712Q115 � Task �� Summary Item # 2 e Milestone CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE A Great Opportunit v ■ Create jobs . ■ Grow housing stock for young professionals Build on the community's success with Cleveland Streetscape and Prospect Lake Park ■ Drive a new vibrant district — Clearwater "Live" � . , � �O PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience -•- � i- 4..�—�-'�rn► � y� ``:�� n � s� � ��._ i� � � � �� ;. . ?� wu nv ei `��+�r .�Fa..� . l ��C � �� 1 C�� C �� , �t �� M �� : �� ' ��' � � _ . ` I�. , � � ,�v.�„l•� r � , � �, � � ��^a � 'r ' },. � � f�� ` `�� '�I 7 � . � � � � �r: .x r,� � �� * `�r' , � . �- . , � •,r,�� ' , � � �'•''•-.�.. r ,,.. s...� "� :�.. vsn,i � `��r �� - f� . , , � 3 �� .'. � r4 � � _i5, '� ��,�'�� :`„"' "'`"",�141� � `�' � �. � � �: .� _��`. .�,_. � �; �� "� �-- "y , ,� �,w, w� ,, �—.•- _ , ��-.r.�. ��'�`�� ..!'r°'i }*_+�! ras�i� .. � � �" � �'"� ,,ie , .., .,,,a. � 'ra r. � Ls �! 1� --� �e - , .-�' �w:� � . �'��"� �- � � .;� :�.� � , ,��- � _. CfTY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • DEVELOPIYIENT OF THE CLEVELAND STREET & PROSPECT LAKE PARK SITE A Great Opportunit v ■ Create a new industry cluster focused on the creative urban professional. ■ Activate the community. ■ A new LIVE, WORK and PLAY neighborhood. �� t � � �� r.� �.. _�`�r� a '` �� y.`,�' I�'� r�. �I 7' . � ' R.'!"'y44' I � � r� I I i I � � G7� 4 _, -�:[, y` ,F" �� ` � � � �� :e �-'��r�. "'�: , �� °�'�' �I II I� �O PQ O�j��"'�" I REAL ESTATE 1. 1 � GROUP growth guided by esperience �-rtF' e , --"'. u `� _ ,y , � � � , �,�, `ti � .�r"?° ., �_z+.i�� i �� `��`.. ��_ �i+s u �#�� — ,. �_� c� � �, �<<,-_i 4. � _ �� °.� , � - r�el F',� t _ � , �� r'� �;-�a a d - . _. � -� �� _�� y - �:� .�. .+F� �� , � ��+ � � ' � � � `�� CITY OF CLEARWATER COMMUNITY REDEVELOPMENTAGENCY • DEVELOPMENT OF THE CLEVELAND STREET 8� PROSPECT LAKE PARK SITE Let's G et Sta rted Create "The Place to Be" � �� -�' ��. � � �. , �� :� �' � � � . �JO P�Q�PE�T I GROUpSTATE growth guided by esperience Leverage the development to drive the neighborhood �� ,� �_r.. �4 : � , . �� i$i `,�,,� �'� � � - � �^"- y� : �" II � �.'Eii�4. . �i � , � '� �_ �� I # ��, ;.�; �� !:�. - . � . CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY • uEVItLOPMENT OF THE CLEVELAND STREET & PROSPECT LAKE PARK SITE Summary of Proposals CLEVELAND STREET AND PROSPECT LAKE PARK SITE - RFPQ - 12-13 Ranking Development Teams Summary Prospect Real Estate Group *Development team is experienced with mixed-use urban, infill projects. 'Total Development Cost $34m. Proposing $2.5m purchase of land. *247 market-rate residential units with 15k square feet of retail targeting young professionals. Unit mix and rents: 166 1-bd ($1125) and 81 2-bd ($1325). 8 live/work spaces on Cleveland Street. 1.4 parking spaces per unit with all spaces behind buildings. Strong amenity package for the residential units with active public space leading to the lake (cyber cafe, dog run, clubhouse). Design is modern with green techniques and provides view to the lake. *Timeframe is reasonable: Construction start 2014-July 2015. *Financial references are strong and have letters of interest for debt and equity. �Incentives requested: 42 units from the density pool, assistance with buildout of retail spaces, filling live/work spaces, and construction of 15k sq.ft. community services building (if desired--not essential to the project). 1 'Proposal is strong and meets all stated CRA objectives. Hatfield Development Co. �Development team is experienced with multi-family development. *Total Development Cost $23.5m. Proposing $2.08m purchase of land. '208 market-rate residential units with a variety of floor plans at different prices. Unit mix and rents: 104 1-bd (minimum $950) and 104 2-bd (maximum $1550). Design includes an urban form on Cleveland Street with buildings that line the street (4 stories) and lake. Design includes a community pocket part; however, design doesn't open up to the lake. Amenities for apts only. 1.5 parking spaces per unit with all spaces behind buildings includes standalone garages. �Timeframe is reasonable: Construction start Jan 2014 with 12-14 months; lease up in 6-8 months. 'Financial references and letters of interest provided. *Incentives requested: 15 density units; waiver of impact fees $874k; and 10 years of tax abatement ($2m). W hile 10-year tax abatement is not allowed, CRA can negotiate reimbursements of taxes paid but full real estate taxes over 10 years does not meet CRA expectations (would equal cost of the land over 10 years). 2 �Proposal is for a residential only project which does not meet CRA vision for a mixed-use project on the site. New Vision Communities, LLC �Development team is experienced with affordable senior and multi-family development. *Total Development Cost is $16m for senior development. Proposing a purchase money mortgage at $2.5m with 0% interest, 30 years with no amortization, forgiven at maturity (the purchase price to be put into an escrow account to be used if needed, however, if used, it will result in a zero land cost). `90 units of low-income senior apartments. Unit mix: 45 1-bd and 45 2-bd units; a land pad for a hotel (120 rooms) and townhomes (20 units) meant to be sold to another developer with no design specifics given. *Letters demonstrate credit worthiness. However, LIHTC financing is speculative. *Timeframe does not meet CRA desire with construction start estimated at Dec 2014 (with no guarantee that in can start at that time). *Incentives requested: $2.5m purchase money mortgage, $5m in additional subsidy (potentially). 3 �Proposal for low-income senior housing does not meet CRA objectives of a mix of uses and density/intensity that activate the street level. Bayshore Broadway, Inc. 'Development team is experienced with "Town Center" mixed-use projects in Hillsborough County and Pasco County. Experience shows large acreage/DRI tracts in greenfield areas which are more suburban in nature. � *No specific project proposed so no specifics given as to the purchase price of the site or the incentives needed. y � *Timeframe does not meet CRA goals. v � *Proposal concept of a"master developer" for the area poses challenges for a variety of reasons: 1) a"Town Center" master planning concept is not�onducive to a redevelopment area because the *k number of lots and varied ownership of the those lots increases the risk, time and cost of development; 2) additional planning would mean additionaic�osts for charrettes, market studies, etc. to the N 4 CRA; 3) additional planning would mean extended timeframes for construction with potential increases in construction costs and lost window of opp� unity for the availability of development financing. c 3 a m N � � N � � Attachment number 2 \nPage 2 Sheet2 Item # 2 Page 2 Attachment number 2 \nPage 3 Sheet2 Item # 2 Page 3