08/14/2013 CITY COUNCIL MEETING MINUTES
CITY OF CLEARWATER
August 14, 2013
Present: Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember
Jay E. Polglaze.
Also Present: Jill S. Silverboard - Assistant City Manager, Rod Irwin -Assistant City
Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk,
and Nicole Sprague - Official Records and Legislative Services
Coordinator.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
1. Call to Order - Mayor George N. Cretekos
The meeting was called to order at 6:00 p.m. at City Hall.
2. Invocation — Bob Brubaker from Christ Community Presbyterian Church
3. Pledge of Allegiance - Councilmember Doreen Hock- iPolito
4. Presentations - Given.
4.1 Diversity Poster Award
Diversity Leadership Council representatives Jennifer Obermaier and Ben Elbo
recognized finalists in all age groups and presented gift cards to the grand prizewinner
and two runner-ups. Office on Aging Manager Kerry Marsalek reviewed diversity
Chemed activities and discussion topics that occurred at the Clearwater Aging Well
Center.
4.2 ASA Gold Nationals - Carlton Benton, ASA Florida Commissioner; Chris Wirth,
Florida ASA State Junior Olympics Commissioner; and Kevin Smith, St.
Pete/Clearwater Sports Commission Director
Mr. Benton thanked the Council and staff for their dedicated efforts and presented the
City with a signed commemorative poster.
4.3 Certificate of Appreciation to Clearwater Airpark Advisory Board - Presented by
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Yvonne Rodriquez, Commander of the Clearwater Composite Squad of the Civil
Air Patrol.
Cdr. Yvonne Rodriguez thanked the City, staff, and the Airpark Advisory Board for their
continued support and efforts related to hosting the Civil Air Patrol/Veterans Alliance
while relocating. A plaque was presented to the Airpark Advisory Board and the City
Council.
5. Approval of Minutes
5.1 Approve the minutes of the August 1, 2013 City Council Meeting as submitted in
written summation by the City Clerk.
Councilmember Doreen Hock-DiPolito moved to approve the minutes of the August 1,
2013 City Council Meeting as submitted in written summation by the City Clerk. The
motion was duly seconded and carried unanimously.
6. Citizens to be Heard re Items Not on the Agenda
Bob Fohrmeister requested Council consideration for the City to become a Purple Heart
City.
Robert Freedman thanked the City for installing concrete on the south side of Old
Coachman Road for those accessing the sidewalk with bicycles, tricycles and strollers.
Mark Blanchard expressed concerns regarding the PSTA bus stop location on the west
side of Memorial Causeway and the lack of decorative lighting on the Memorial
Causeway at night.
Public Hearings - Not before 6:00 PM
7. Administrative Public Hearings
7.1 Approve amendment to Beach by Design: A Preliminary Design for Clearwater
Beach and Design Guidelines to reference the standards by which the public
boardwalk must comply, adopt the Marina District Boardwalk Design Guidelines
and Specifications, and pass Ordinance 8438-13 on first reading.
In 2001, the City adopted Beach by Design: A Preliminary Design for Clearwater
Beach and Design Guidelines. This special area plan sets forth a series of
revitalization strategies for Clearwater Beach and established character districts to
regulate land use, location of uses, and, generally, the scale of development. The
proposed amendment to the Marina District section of Beach by Design
incorporates language referencing new Marina District Design Guidelines and
Specifications and adopts by reference detailed design guidelines and
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specifications for the development of the public boardwalk contained within the
document, which was developed, by the City's Parks and Recreation Department.
The new design guidelines and specifications address requirements including
finish materials, lighting, trash receptacles, benches, landscaping, and specific
requirements related to the boardwalk construction and materials (e.g., timber
piles, decking, and railing). Typical sections of the boardwalk and East Shore
Drive sidewalk are provided as well, in order to provide further guidance and
illustrate the requirements. The document also identifies two required public entry
nodes at Baymont and Papaya Streets as well as a public access plaza adjacent
to the public parking lot north of Memorial Causeway, and provides specifications
with regards to finish materials, landscaping, bicycle racks, water fountains, and
lighting for these entry nodes.
The Community Development Board (CDB) reviewed the proposed text
amendments at its public hearing on July 17, 2013 and unanimously
recommended approval.
Councilmember Doreen Hock-DiPolito moved to approve amendment to Beach by
Design: A Preliminary Design for Clearwater Beach and Design Guidelines to reference
the standards by which the public boardwalk must comply, adopt the Marina District
Boardwalk Design Guidelines and Specifications. The motion was duly seconded and
carried unanimously.
Ordinance 8438-13 was presented and read by title only. Councilmember Bill Jonson
moved to pass Ordinance 8438-13 on first reading. The motion was duly seconded and
upon roll call, the vote was:
'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
8. Quasi-judicial Public Hearings
8.1 Approve a Zoning Atlas Amendment from the Office (0) District to the Medium
Density Residential (MDR) District for property located at 1515 South Highland
Avenue, consisting of a portion of the southwest of Section 23, Township 29
South, Range 15 East, and pass Ordinance 8434-13 on first reading. (REZ2013-
05003)
This rezoning application involves a 4.91-acre property owned by Highland Group
Clearwater, LLC, located on the southeast corner of Nursery Road and South
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Highland Avenue. This property has a Future Land Use Map classification of
Residential/Office General (R/OG) and a Zoning Atlas designation of Office (0).
The request is to amend the Zoning Atlas designation from Office (0) to Medium
Density Residential (MDR), which is also consistent with the Residential/Office
General (R/OG) Future Land Use Map classification of the property.
The subject property contains primarily vacant land with a drive isle near the
eastern property line that connects to the shopping center to the south (LaBelle
Plaza); there are also approximately 93 parking spaces on the southern portion of
the parcel that are used by LaBelle Plaza. In 2007, a development order for the
subject property was issued for 68 attached dwellings and 19,199 square feet of
non-residential floor area (per a Court Order and Stipulation) through a Flexible
Development application. The development order expired in March 2010 when the
building permit requirement was not met. No application for development has
been received as of date, but the Zoning Atlas Amendment application materials
indicate the applicant intends to develop an assisted living facility on the subject
site.
The Planning and Development Department has determined that the proposed
Zoning Atlas amendment is consistent with the Community Development Code as
specified below:
• The proposed amendment is consistent with the Comprehensive Plan and
the Community Development Code;
• The proposed amendment is compatible with the surrounding property and
character of the neighborhood;
• The available uses in the Medium Density Residential (MDR) District are
compatible with the surrounding area;
• The proposed amendment will not adversely burden public facilities,
including the traffic-carrying capacities of streets, in an unreasonably or
disproportionate manner; and
• The proposed Medium Density Residential (MDR) District boundaries are
appropriately drawn in regard to location and classifications of streets,
ownership lines, existing improvements and the natural environment.
The Community Development Board reviewed this application at its public hearing
on July 16, 2013 and unanimously recommended approval of the Zoning Atlas
amendment.
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Planning and Development Director Michael Delk said the minimum standard height is
thirty feet. The maximum height available through the Level 2 flexible development
would be fifty feet. The parking spaces provided for on the Applicant's requested
property for the adjoining shopping center are in excess of city code requirements.
One individual spoke in opposition.
Councilmember Doreen Hock-DiPolito moved to approve a Zoning Atlas Amendment
from the Office (0) District to the Medium Density Residential (MDR) District for
property located at 1515 South Highland Avenue, consisting of a portion of the
southwest of Section 23, Township 29 South, Range 15 East. The motion was duly
seconded and carried unanimously.
Ordinance 8434-13 was presented and read by title only. Councilmember Jay E.
Polglaze moved to pass Ordinance 8434-13 on first reading. The motion was duly
seconded and upon roll call, the vote was:
'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
9. Second Readings - Public Hearing
9.1 Adopt Ordinance 8409-13 on third reading, annexing certain real property whose
post office address is 2200 and 2251 Montclair Road, together with all of the
right of way of Montclair Road, C.R. 584, lying in the East of the NE of Section
01, Township 29 South, Range 15 East, together with all of the right of way of
Montclair Road, C.R. 584, and Sunset Point Road, C.R. 576, lying in the NW of
Section 06, Township 29 South, Range 16 East.
Ordinance 8409-13 was presented and read by title only. Vice Mayor Paul Gibson
moved to adopt Ordinance 8409-13 on third and final reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
9.2 Adopt Ordinance 8423-13 on second reading, making amendments to the
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Community Development Code by amending Article 2 to establish veterinary
clinics as a minimum standard use and deleting veterinary clinics as a flexible
development use; amending Article 4 regarding the process for Hotel Density
Reserve Development Agreements and general Development Agreements, and
amending Article 8 regarding definitions of Development Agreements, General
and Development Agreements, Hotel Density Reserve.
Ordinance 8423-13 was presented and read by title only. Councilmember Bill Jonson
moved to adopt Ordinance 8423-13 on second and final reading. The motion was duly
seconded and upon roll call, the vote was:
'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
9.3 Adopt Ordinance 8437-13 on second reading, vacating the 10 ft. platted Utility
Easement, abutting the southwest property line of Lots 5 and 6, Block C,
depicted and described in the Plat titled Unit 5 Island Estates of Clearwater as
recorded in Plat Book 51, Page 34 in the public records of Pinellas County,
Florida.
Ordinance 8437-13 was presented and read by title only. Councilmember Doreen
Hock-DiPolito moved to adopt Ordinance 8437-13 on second and final reading. The
motion was duly seconded and upon roll call, the vote was:
"Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
10. Consent Agenda — Approved as submitted.
10.1 Approve the second amendment to the Management Agreement between the
City of Clearwater and the Clearwater Regional Chamber of Commerce, Inc. to
extend the Agreement for a one year period, authorize funding in the amount of
$50,000 in Fiscal Year 2013-2014 for the operation of the Beach Visitor
Information Center (BVIC), and authorize the appropriate officials to execute
same. (consent)
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10.2 Approve the purchase of excess liability, excess workers compensation, and
numerous specialty insurance policies. October 1. 2013 through October 1.
2014, at an amount not to exceed $695.000.00, and authorize the appropriate
officials to execute same. (consent)
10.3 Approve an Interlocal Agreement for Library Services in Pinellas County for a
term of five years, effective October 1. 2013, with a possible extension for an
additional five years and authorize the appropriate officials to execute same.
consent
10.4 Approve a contract (purchase order) with Backstage Library Works to complete
the RFID tagging project for the Clearwater Public Library System for an amount
not to exceed $161.000 and authorize the appropriate officials to execute same.
consent
10.5 Approve an increase to the 2012/13 Pier 60 Operations budget in the amount of
$77.000 to cover the increased cost of items for resale at Pier 60 bait house and
additional personnel costs: authorize an increase of$73.980 to the 2013/14 Pier
60 Operations budget to include additional personnel costs: authorize the
addition of 1.6 FTE positions, for a total of 7.5 FTE positions at Pier 60, funded in
2013/14: and authorize an increase to the walk on fee, from $.50 to $1.00.
consent
10.6 Approve the Fifth Amendment to Sports Facility Use Agreement between the
City of Clearwater (City) and Phillies Florida LLC (Phillies) providing for
clarification of Section 7 of the agreement involving revenue and authorize the
appropriate officials to execute same. (consent)
10.7 Approve a new Capital Improvement Project entitled Marina District Boardwalk
and Entry Nodes 315-93639, for $606.510, from undesignated Special
Development Fund retained earnings, to design and construct three access entry
nodes for the future Marina District Boardwalk at Baymont and Papaya Streets
and the pedestrian walk under bridge at SR 60. (consent)
10.8 Approve an agreement between The Governor's Commission on Volunteerism
and Community Service and the City of Clearwater renewing the AmeriCorps
Clearwater program for the period of January 1. 2014 through December 31.
2014, including a cash match in the amount of$89.291, and authorize the
appropriate officials to execute same. (consent)
10.9 Approve an Interlocal Agreement between the Clearwater Community
Redevelopment Agency (CRA) and the City of Clearwater to provide CRA
funding in Fiscal Year 2013/2014 in the amount of$159.786.00 (salary, benefits.
Council 2013-08-14 7
fuel) to underwrite the cost of additional Community Policing Services by the
Clearwater Police Department in the East Gateway CRA District, pursuant to the
new East Gateway Five-Year Action Program for Fiscal Years 2012-2017, and
authorize the appropriate officials to execute same. (consent)
10.10 Approve a contract (Blanket Purchase Order) to Hose and Hydraulics. Inc. of
Clearwater. FL in the amount of$150.000 for the purchase of replacement
hydraulic parts and repairs for vehicles and equipment used by city departments
during the contract period. August 1. 2013 through July 31. 2014, in accordance
with Sec. 2.5640)(d). Code of Ordinances. Pinellas County Contract 089-0496-
Q and authorize the appropriate officials to execute same. (consent)
10.11 Authorize placement of Restrictive Covenant over City Property (Solid Waste
Fueling Site), located at 1701 N. Hercules Ave. Clearwater FL. and authorize the
appropriate officials to execute same. (consent)
10.12 Award a construction contract to Pepper Contracting Services Inc., of Tampa
Florida in the amount of$446.284.30 for Town Pond Modifications Phase II (11-
0008-EN), and authorize the appropriate officials to execute same. (consent)
Councilmember Jay Polglaze moved to approve the Consent Agenda as submitted and
authorize the appropriate officials to execute the same. The motion was duly seconded
and carried unanimously.
City Manager Reports
11. Other Items on City Manager Reports
11.1 Endorse the application for Project Banner and commit the City of Clearwater to
provide local financial support (Local Match) of ten percent of the eligible tax
refund upon certification by State of Florida Department of Economic Opportunity
(DEO) and adopt Resolution 13-18.
The Florida Legislature created Florida Statute, Section s.288.106 to encourage
the growth of Florida's high-wage, value-added employment. This program is
commonly known as the Qualified Target Industry Tax Refund Program (QTI
Program). This law authorizes Enterprise Florida, Inc. to accept, review and
recommend applications for consideration by DEO for tax refunds to qualified
target industry businesses. Pursuant to Florida Statute, Sections s.288.075 and
s.288.106, the applicant requests certain information, including the name of the
company, remain confidential until such time as is required under statute or
desired by the applicant. Project Banner is the alias name of the applicant
company.
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This Resolution provides a commitment of the City to support the QTI Program,
which provides a performance-based incentive. The incentive is negotiated in
advance of Project Banner's commitment to expand its operations in the city of
Clearwater. It does not guarantee payment until such time as the terms of the
contract made between DEO and Project Banner are met, subject to limitations
described below.
QTI Program Description
The QTI Program works as an inducement to encourage companies to locate or
expand in Florida. In accordance with the QTI Program eligibility criteria, no
commitment to expand in Florida has been made at this time. The incentive may
not exceed that which is requested in the application.
As required by the QTI Program, the Project Banner's expansion will increase the
Company's employment in Florida by greater than 10% and, as evidenced by
staff's economic impact analysis the proposed new jobs will make a significant
economic contribution to the area economy.
Description of Project
Project Banner is seeking State, County and City inducement to expand
operations and to create additional jobs in the City of Clearwater. The Company
projects to add 143 jobs over two years beginning in 2014. Project Banner's job
creation schedule is as follows:
Number of net new full-time Date by which jobs
Phase equivalent Florida jobs created in
the business unit will be created
I 39 12/31/2014
II 104 12/31/2015
... .._Total.... ............................. 143
Below are the types of jobs expected to be created by this manufacturing
company:
Business Unit................ 6 Digit _ProjectM o VAnnualized Wage
NAILS
Activities Function ($)
Code(s)
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Fabrication, Wind, 334416 75.
Assembly
bly 5% $31,741.00
Engineering, Testing z 334416 ....................3.4% $43,680.00
Base (engineer,._.__._... 334416.... ................. 21.0%....._ ........................
planning, shop ops) $78 500.00
Average Wage 100% 1 $41,968.00
t
Average wages of all new jobs created by Project Banner is to be no less than
$41,810, which is 100% of the Pinellas County's Annual Average Wage but less
than 115% of the Pinellas County average wage as published by Enterprise
Florida on January 1, 2013.
Affirming the Project Banner is a manufacturing project, it is eligible to receive a
waiver of the average wage requirement authorized by s.288.106 (4)(b)l.b,
Florida Statutes. Staff supports this request because the proposed expansion will
improve long-term viability of an existing product line, benefit local suppliers,
increase the capital investment of real and personal property and create 143 new
jobs in the City.
QTI Program Request & Local Match Commitment
The requested tax refund is to be paid to the applicant each state fiscal year (July
1- June 30) for a period of five years. If approved by DEO, Pinellas County and
the City of Clearwater, the applicant will receive a refund for each new job
created in the City of Clearwater. The QTI Program allows for a refund of eligible
taxes paid that will equal a maximum of$3,000 per new job created. Eighty
percent of this award is provided by the State of Florida, with a Local Match of
ten percent from the City of Clearwater and ten percent from Pinellas County.
Therefore, the maximum Local Match award per new job created is $300 for a
total Local Match of$42,900.
Payment Schedule
Disbursement of the Local Match is spread over a period of five years. Twenty-
five percent of the Local Match is paid out over a four-year period for each phase
in which the jobs are created. The schedule is as follows:
:PHASE #JOBS ELIGIBLE MAX OF FY14 15 FY15-16 �'FY16-17 �FY17-18 ,FY18-19
AWARD 25%/YR
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--------------2 925-----------------------------
S11,700 1$2,925 $2,925 S2,925 S2,925 1$ ,
i39
$31,200 $7,800 1 , 1$7,800 $7,800
04 1$7,800 $7 800
-------------------- ------------------ -------------- ---------- -----
TOTAL S10,725 1$10,725 �$10,725 $7 800;143::::::
43 $42,900 25
i i
The payment schedule is subject to the applicant continuing to meet all eligibility
criteria, which is verified each year by the DEO, the City of Clearwater and
Pinellas County. Upon verification, the DEO requests the Local Match
disbursement check from the City up to the maximum yearly allowed amount.
The DEO then provides the disbursement to the applicant.
Conditions of Limitation & Termination
During the term of the agreement, the Local Match may be lowered under the
following conditions-
0 If in any year the applicant does not achieve the job creation schedule but
achieves at least eighty percent of the required new jobs, the company will
receive a pro-rated refund less five percent penalty of the schedule award
amount for that year.
0 If the total of the eligible taxes paid by the company is less than the
maximum eligible refund amount awarded, the Local Match will be reduced on a
pro-rated basis. The refunded amount will not exceed the amount of eligible
taxes paid by the company.
The Local Match may be eliminated under the following conditions-
If job creation falls below 80% of the required jobs, the company will not
;eceive a refund and will be terminated from the program.
If the average wage falls below $41,810, the company will not receive a
;efund and will be terminated from the program.
Funding Source
The Fiscal Year 2014-2015 funding is currently available from Economic
Development budget account number 181-99846. Future year funding will need
to be allocated during the City's annual budget process.
Councilmember Jay Polglaze moved to endorse the application for Project Banner and
commit the City of Clearwater to provide local financial support (Local Match) of ten
percent of the eligible tax refund upon certification by State of Florida Department of
Economic Opportunity (DEO). The motion was duly seconded and carried
unanimously.
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Resolution 13-18 was presented and read by title only. Vice Mayor Paul Gibson moved
to adopt Resolution 13-18. The motion was duly seconded and upon roll call, the vote
was:
'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
11.2 Authorize the Economic Development Director to negotiate possible tax refunds
and exemptions, fee waivers, reductions or refunds to encourage Project Banner
to expand within the City of Clearwater, providing that the fiscal and economic
impact analysis of the proposed expansion yields a maximum payback period of
7 years and a minimum rate of return of 10%, and adopt Resolution 13-21.
Pursuant to Florida Statute, Section s.288.075 the applicant requests certain
information, including the name of the company, remain confidential until such
time as is required under statute or desired by the applicant. Project Banner is
the alias name of the applicant company.
Project Banner is seeking to expand operations, thereby adding 143 jobs
meeting 100% of the Pinellas County average annual wage as published by
Enterprise Florida, Inc. in January 2013, and making significant capital
investment improving the overall tax base.
This resolution provides authorization for the Economic Development Director to
negotiate possible tax refunds and exemptions and cash and non-cash
incentives as an inducement to expand Project Banner's operations in the City of
Clearwater. Incentives may include:
Tax Refunds and Exemptions -
Real and tangible property tax exemption of up to 75% per year for 10 years on
the City-portion of real and tangible taxes. (Exemption allowed on the increment
only, not on the current taxes.)
Tax refund of certain taxes as identified by the Qualified Target Industry Tax
Refund Program (10% Local Match only).
Cash and Non-Cash Incentives —
Cost of road improvements as deemed warranted by independent traffic study
Impact fees (City-portion only)
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Permit fees
Application fees
Public Art fees
Other fees as required by the City
Fast track permitting
Utility rate concessions
Utility franchise fees
Other rebates, exemptions, waivers, refunds, reductions
Incentives offered to and negotiated with Project Banner must yield an estimated
payback period of no greater than 7 years with an estimated rate of return of no
less than 10% as determined by economic impact analysis. The maximum cash
and value of non-cash incentives is not to exceed the value of the road
improvements, fees, fee refunds, reductions or waivers.
Impact Analysis
The Economic Development Director has conducted an impact analysis of the
expansion of Project Banner, using Total Impact TM model software by Impact
DataSource, an economic consulting, research and analysis firm that provides
high-quality economic research specializing in economic and fiscal impact
analysis and incentive analysis. Total Impact model software evaluates relevant
direct and indirect economic impacts of the expansion of Project Banner,
including the number of new jobs created, number of new workers and residents
in the city, new taxable sales in the area, new taxable lodging sales in the area,
and new residential and commercial property to be added to the city tax rolls.
The software also performs an evaluation of fiscal impacts, which estimates the
fiscal impact of additional revenues and costs for City of Clearwater and provides
an analysis of possible incentives under consideration including what-if analysis,
which evaluates cash incentives as an investment in the project and determines
the rate of return and payback period for the investment. The analysis compares
the incentives to the net fiscal benefit for the community over a period of time,
and serves as a consistent and objective way to evaluate projects.
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Incentives Policy
It is the intention of the Economic Development Director to bring forward at a
future date an incentives policy to provide guidelines with an established
minimum rate of return and maximum payback period using this Total Impact
model. This resolution does not establish such guidelines for future projects and
reflects only the guidelines for use with Project Banner.
Any agreement reached under this resolution must be brought back before the
City Council for final consideration.
Councilmember Bill Jonson moved to authorize the Economic Development Director to
negotiate possible tax refunds and exemptions, fee waivers, reductions or refunds to
encourage Project Banner to expand within the City of Clearwater, providing that the
fiscal and economic impact analysis of the proposed expansion yields a maximum
payback period of 7 years and a minimum rate of return of 10%. The motion was duly
seconded and carried unanimously.
Resolution 13-21 was presented and read by title only. Councilmember Doreen Hock-
DiPolito moved to adopt Resolution 13-21. The motion was duly seconded and upon roll
call, the vote was:
'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember
Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Jay E.
Polglaze
"Nays None
11.3 Award a contract (purchase order) to Trane US of Tampa, FL for the purchase of
one Air Cooled Scroll Compressor Chiller in the amount of$171,397 in
accordance with Sec. 2.560)(d), Code of Ordinances-other governmental bid,
and authorize the appropriate officials to execute same.
This chiller will be purchased through GSA Contract GS-07F-0248K and quote
dated May 31, 2013.This chiller replaces the current chiller installed at the Water
Pollution Control (WPC) laboratory.
The new chiller will have the Condenser Coil and internal/external cabinet Spray
Coating to prevent premature rust and comes with a 10- year warranty on parts,
labor, and refrigerant.
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The installation of the chiller will be bid under separate heading and a different
company will perform the installation work.
In response to a question, Solid Waste and General Services Director Earl Gloster said
the chiller will replace the existing 12-year old unit that has reached the end of its useful
life. The new chiller will be more efficient.
Councilmember Doreen Hock-DiPolito moved to award a contract (purchase order) to
Trane US of Tampa, FL for the purchase of one Air Cooled Scroll Compressor Chiller in
the amount of$171,397 in accordance with Sec. 2.56(1)(d), Code of Ordinances-other
governmental bid, and authorize the appropriate officials to execute same. The motion
was duly seconded and carried unanimously.
11.4 Approve a Memorandum of Understanding with the Clearwater Marine Aquarium
(CMA) for the construction of a new facility, parking garage and lease of the City
Hall property and authorize the appropriate officials to execute same.
The Clearwater Marine Aquarium (CMA) approached the City with a proposal to
build a new facility on the current City Hall location. City Council directed staff to
negotiate a memorandum of understanding with the CMA. The memorandum of
understanding (MOU) will provide the basis for the future documents following
the passage of the referendum on November 5, 2013. The MOU provides for the
following:
The City is required to obtain voter approval in order to lease the property for an
initial term of 60 years for the Project. The City has scheduled the referendum on
November 5, 2013. CMA agreed to pay all costs of the referendum.
CMA shall be responsible for the design, construction, maintenance, and funding
of the Project. CMA intends to finance the Project through a combination of
private gifts and grants, government grants and funding, and through third-party
financing. In the event of default, CMA's creditors will be limited to changing the
management of the new aquarium and assuming all of CMA's rights and
obligations for the remainder of the lease or abandoning the city property and
disassembling the building and collecting CMA's assets. The City will have no
obligation or liability in the event CMA defaults on any of its loans or obligations.
CMA shall have all funds necessary for the construction of the Project committed
by no later than August 1, 2016.
CMA shall pay the city $.50 per ticket of admissions revenue actually received by
CMA not to exceed $7,500,000.00 in order to provide for the replacement of the
City Hall. Following full payment of the City Hall Payment, CMA shall pay an
annual rent payment of$150,000.00 to the City.CMA shall be responsible for
Council 2013-08-14 15
acquiring a mutually agreeable parcel for the construction of a public parking
garage (Parking Garage Parcel). CMA shall have the option to construct,
operate, and maintain a parking garage.
If mutually agreed, CMA may convey the Parking Garage Parcel to the City for
the City to construct, operate, and maintain a parking garage and any additional
uses the City deems appropriate. CMA shall be responsible for reimbursing the
City for the replacement costs of the existing tennis courts in the amount of
$75,000.00 per court. The City shall be responsible for the improvement of the
Pierce Street extension to Drew Street and associated improvements to
Cleveland Street.
The City Attorney reviewed the MOU and changes requested at the work session:
• Page 1, Paragraph 1: THIS MEMORANDUM OF UNDERSTANDING IS
INTENDED SOLELYAS A PRELIMINARY EXPRESSION OF THE GENERAL
INTENTION OF THE PARTIES AND iS TO BE USED FOR DiSGUSSiQ
oUQ OSES 04L THE PARTIES INTEND THAT NEITHER SHALL HAVE
ANY CONTRACTUAL OBLIGATIONS TO THE OTHER WITH RESPECT TO
THE MATTERS REFERRED TO HEREIN UNLESS AND UNTIL DEFINITIVE
AGREEMENTS HAVE BEEN FULLY EXECUTED AND DELIVERED BY THE
PARTIES. THE PARTIES AGREE THAT THIS T€RM TMMMORANDUM
OF UNDERSTANDING IS NOT INTENDED TO CREA TE ANY A GREEMENT
OR OBLIGATION BYANY OF THE PARTIES TO ENTER INTO DEFINITIVE
AGREEMENTS.
• Page 2, Paragraph 3: CMA intends to finance the Project through a combination
of private gifts and grants, government grants and funding and through third-
party financing. No general fund revenues of the City will be expended on the
design, construction, operation, or maintenance of the new aquarium. In the
event of default, CMA's lender will be limited to changing the management of the
new aquarium and assuming all of CMA's rights and obligations for the
remainder of the lease or abandoning the City Property and disassembling the
building and collecting CMA's assets. The City will have no obligation or liability
in the event CMA defaults on any of its loans or obligations. CMA shall have all
funds necessary for the construction of the Project committed by no later than
August 1, 2016.
• Page 2, Paragraph 5: By no later than June 1, 2015 CMA and the City shall
agree to the terms of the lease for the City Property. The City agrees to vacate
the City Property upon 180 days notice from CMA and verification by the City that
CMA+t has the necessary financing to commence construction. CMA shall pay
the City $.50 per ticket of admissions revenue actually received by CMA not to
exceed $7,500,000.00 plus accrued interest as provided below in order to
provide for the replacement of the City Hall ("City Hall Payment"). The Gity Hall
Payment shall be s uhiont to o fived rote of interact cot of the exeG Mien date of
the Lease equal to the one (1) year United States Treasury (Mote rounded to the
Council 2013-08-14 16
nearest tenth of a pow Principal payment will be made quarterly based on paid
ticket sales for the previous quarter. Following the City's funding of the City Hall
capital project, but not before the opening of the new aquarium, interest will
accrue and intteres will be paid annually in arrears by CMA based on the actual
cost for a new City Hall not to exceed $7.5 million. The annual interest rate will
be set at the beginning day of the lease period and reset at each anniversary
date based on the interest rate consistent with the City's cash pool rate of return
rounded to the nearest 10th of a percent. The annual interest rate will be applied
to the average annual principale and accrued interest balance of CMA's
obligation of the preceding year until the actual cost of the new City Hall or$7.5
million, whichever is less is recaptured by the City. Following full payment of the
City Hall Payment, CMA shall pay an annual rent payment of$4250,000.00 per
year to the City.
In response to a question, the City Attorney said the appraisal received in April reflects
the value for the entire city hall property ($6,625,000), which is larger than the proposed
leased site. The appraised value of the proposed site will be based on the actual
square footage to be leased.
Fifteen individuals spoke in support. Five individuals spoke in opposition.
Vice Mayor Paul Gibson moved to approve a Memorandum of Understanding with the
Clearwater Marine Aquarium (CMA) for the construction of a new facility, parking
garage and lease of the City Hall property and authorize the appropriate officials to
execute same. The motion was duly seconded.
The Council recessed from 8:06 p.m. to 8:15 p.m.
Discussion ensued with support expressed that the proposed aquarium will positively
impact further economic development in downtown, create jobs, capture a younger
worker demographic, and increase tourism.
Upon the vote being taken, the motion carried unanimously.
Miscellaneous Reports and Items
12. City Manager Verbal Reports
12.1 Approve the Business Lease Contract between the City of Clearwater and Pool
Mate Pictures. LLC for the use of the City-owned property located at 320
Cleveland Street: and authorize appropriate officials to execute same.
Council 2013-08-14 17
Pool Mate Pictures, LLC (Bottlenose) has approached the City with a request to
lease City -owned property for activities associated with the production of the
motion picture, Dolphin Tale 2. The proposed lease provides for the occupancy
of available portions of the ground floor of the Harborview Center.
Specific terms of the lease are summarized below:
The lease has an initial term of six months beginning on August 21, 2013, with
three options to extend for one month. The initial term will expire on February
15, 2014, and the final extended term, if applied, will expire on May 15, 2014.
Portions of the ground floor are currently under lease to the Clearwater Marine
Aquarium. The remaining 42,000 square feet will be leased to Bottlenose for
the construction of movie sets and ancillary facilities at a lease rate of $1.00 for
the lease term (lease rate is consistent with previous lease terms for original
Dolphin Tale production). Bottlenose will accept the building in the "as is"
condition and will be responsible for all utilities, taxes, maintenance and repair of
the leased premises. Bottlenose may use the parking area west of the building
only, leaving the parking area north of the building available for patrons of the
Library.
Vice Mayor Paul Gibson moved to approve the Business Lease Contract between the
City of Clearwater and Pool Mate Pictures, LLC for the use of the City -owned property
located at 320 Cleveland Street; and authorize appropriate officials to execute same.
The motion was duly seconded and carried unanimously.
13. Closing Comments by Mayor
Mayor George N. Cretekos reviewed recent and upcoming events.
14. Adjourn
The meeting adjourned at 8:49 p.m.
- cteofIt^uAdzi
Council 2013-08-14
Mayor
City of Clearwater
18