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04/18/2005 eRA Agenda Date: 04/18/2005 Location: Council Chambers - City Hall Call to Order Approval of Minutes: 01-18-2005 CRA Item 1. Accept the selection committee recommendation of Lambert Advisory, LLC and PRG Real Estate Research as the top ranked team from responses received to RFP #11-05 for a Downtown Clearwater Market Study, approve the scope of work for the Market Study at a cost of $35,000 and accept a transfer of $35,000 from the Downtown Development Board (DDB) to fund this study, 2. Accept selection committee recommendation of Wallis Murphy Boyington Architects, Inc.; Swan Development Advisors, Inc. and Wilson Miller as the top ranked team from responses received to RFP #13-05 for a Cleveland Street Fayade Design Analysis, approve scope of work for the Fayade Design Analysis at a cost of $50,000 and accept a transfer of $50,000 from the Downtown Development Board to fund this project, 3. Approve professional services contract from Swan Development Advisors, Inc. in the amount not to exceed $7,750, to conduct an analysis of the future tax increment that will be generated in the original and expanded CRA boundaries and the appropriate officials be authorized to execute same. 4. Appoint Trustees Carlen Petersen and John Doran as ex-officio members of the Downtown Development Board. 5. Deny request for an additional time extension of "Agreement of Development and Disposition of Property IMR Site II" located at 1180 Cleveland Street. Executive Director (Assistant City Manager) verbal reports Other Business Adjourn eRA Agenda 4/18/2005 Page 1 of 1 f :~. CRA Cover Memorandum Trackinq Number: 1,244 Actual Date: 04/18/2005 Subiect I Recommendation: Accept the selection committee recommendation of Lambert Advisory, LLC and PRG Real Estate Research as the top ranked team from responses received to RFP #11-05 for a Downtown Clearwater Market Study, approve the scope of work for the Market Study at a cost of $35,000 and accept a transfer of $35,000 from the Downtown Development Board (DDB) to fund this study, Summary: The current redevelopment activity in Downtown Clearwater is an indicator of the positive market potential for this area. However, a true understanding of the existing and future residential, retail, and office markets are needed in order to successfully implement redevelopment strategies. This concept was discussed at the strategic planning session of the Main Street Joint Venture meeting in July 2004 and a downtown market study was identified as a short-term project for FY 04-05 in the Downtown-Gateway Strategic Action Program. CRA staff proposed the downtown market study as a joint project between the CRA and the DDB. The DDB unanimously approved including this project in their annual FY 2004-05 budget process. A line item was established within the budget entitled Market Study in the amount of $35,000. In January 2005, RFP #11-05 Downtown Clearwater Market Study was issued to select a consultant to complete a downtown market study. The goals of the market study are to: (1) Identify Downtown Clearwater's existing economic base; (2) Identify the market potential for future redevelopment within Downtown Clearwater; (3) Identify opportunities for projects that would draw visitors and users from throughout the Tampa Bay Region to Downtown Clearwater; (4) Identify potential residential supporting uses for Downtown Clearwater; and, (5) Identify recommendations and next steps based on the baseline data collected. The Market Study is the critical first part in a multi-part analysis of downtown. The final Market Study report will be utilized to identify the future direction of redevelopment efforts, recruitment strategies and to assist the City/CRA and its partners in refining short and long-term strategies for the redevelopment and revitalization of Downtown Clearwater. The CRA received 9 proposals in response to RFP #11-05 Downtown Clearwater Market Study. The Selection Committee, composed of Geraldine Campos, Interim CRA Executive Director, Bob Fernandez, Chairman of the DDB, Doug Matthews, Public Communications, and Laura St. Clair, Colliers Arnold, met on March 11, 2005 to review the proposals. The Selection Committee recommends to the CRA the selection of the top ranked team of Lambert Advisory, LLC and PRG Real Estate Research to conduct this work. The DDB Chairman and Treasurer will provide the authorization for disbursement for an "interdepartmental transfer of funds" debiting account code #0182-09411-530100-552-000-0000 (Other Contractual Services) and crediting the CRA revenue account code 0188-00000-381782 (Inter-Fund Transfer from the DDB). The transfer may take place on or before the date of the contract with the RFP respondent chosen by the selection committee and the CRA. A copy of the selected proposal is available for review at the Office of Official Records and Legislative Services and Economic Development. f :~. CRA Cover Memorandum Oriqinatinq: Economic Development and Housing Cateqorv: Agreements/Contracts - with cost Public Hearinq: No Financial Information: ~ Other In Current Year Budqet? Yes Budqet Adiustment: No Current Year Cost: $35,000.00 Annual Operatinq Cost: $0.00 For Fiscal Year: 10/01/2004 to 09/30/2005 Total Cost: $35,000.00 Appropriation Code(s) 0182-09411-530100-552-000 0188-00000-381782 Review Approval Geraldine Camoos Geraldine Camoos Bill Horne Tina Wilson Cvndie Goudeau Pam Akin Amount $35,000.00 $35,000.00 Comments Interdepartmental Transfer of Funds Inter-Fund Transfer from the DDB 03-30-2005 17:38:38 03-30-2005 17:39:21 04-11-2005 12:47:50 04-05-2005 14:17:58 04-11-2005 12:57:37 04-05-2005 14:38:32 f :~. Garry Brumback CRA Cover Memorandum 04-11-2005 07:57:24 260 I South Bayshore Drive, Suite 300 D Miami, FL 33133 USA ph 305 860 3715 fx 305 860 3777 Ms. Geraldine Campos City of Clearwater 112 S. Osceola Avenue Clearwater, FL 33706 April 7, 2005 Re: Downtown Clearwater Market Study Dear Ms. Campos: Lambert Advisory, in conjunction with PRG Real Estate Research, is pleased to submit this proposal to support the City of Clearwater/Community Redevelopment Agency (CRA) with a Market Study for Downtown Clearwater. In conjunction with our response to RFP#11-05 dated February 28, 2005, this letter outlines: 1.) Scope of Services; 2.) Meetings and Presentations; 3.) Fees and Payment Schedule; 4.) Optional Services; and, 5.) Other Terms and Conditions. I.) Scooe of Services The scope of work outlined below highlights the primary tasks in completing the Downtown Clearwater Market Study. A schedule/timeline for commencing and completing each task is included within the attached Gantt Chart. Task 1: Notice to Proceed/Kick-Off The project will commence under the direction of the City of Clearwater/CRA, whereby Client and Consultant members will ultimately define the work plan. We envision a comprehensive area and site tour as well as introductory meetings with appropriate City officials and staff, and other community stakeholders and leaders that may have a positive impact on the overall plan. In addition, we will take this time to gather and review existing economic and demographic reports and statistics, planning studies, existing condition assessments, building and business inventory reports, and/or market profiles and surveys provided by the City. Downtown Clearwater Market Study Page 2 Task 2: Economic and Market Analysis We will analyze pertinent economic, demographic, and market factors that impact land use, business expansion, and space utilization within the Downtown area which could contribute to the overall redevelopment planning process. This analysis will focus on key economic and real estate issues such as market demand and supply conditions and includes a trade area analysis of retail/entertainment, office, and residential demand. The goal is to provide a comprehensive understanding of market conditions in downtown Clearwater, as well as surrounding neighborhoods. Specifically, we will identify those local/regional trends that a redevelopment plan may leverage to encourage investment locally. Accordingly, we will organize and analyze the research in an effort to identify the highest and best use for development of key sites within downtown that may be key catalyst for short-term opportunities. The information and data collection will be based upon both primary field research and secondary sources such as published data from government, non-profit, and private industry sources as well as additional data and information provided by the City. Demand Conditions Our analysis of demand conditions will include detailed economic and demographic trend and forecast analysis, as well as an overview of key industries and cluster identification based upon a very detailed analysis of Florida ES-202 statistical reports at the three and four digit classification levels for the past five years. The analysis will detail: Population and population characteristic trends and projections, specifically focusing upon age cohorts; Employment trends and labor force characteristics; Conduct direct interviews with some of the area's major employers and business development groups to further understand the area's propensity for employment growth; - Analyze household trends and develop projections; - Office employment trends in surrounding areas and employee daily expenditure patterns; - Visitor growth trends and profile and expenditure patterns; Define downtown's Trade Area, with estimates of drive times pre- and post capital improvements; - analyze expenditure patterns by retail good; and, - Traffic patterns and trends along the major thoroughfares. Downtown Clearwater Market Study Page 3 Supply Conditions The supply conditions analysis includes an overview of existing conditions for the primary real estate uses and business clusters that will potential growth, including: retail/entertainment, housing (for sale and rental), and office. Based upon primary field research conducted through surveys and interviews, we will provide a competitive and comparative analysis of existing and proposed projects by real estate use, to identify: - Size of retail and/or entertainment center, office building, and residential project; Major tenants in the case of commercial space; - Age and condition of development; - Sales/Rental and occupancy rates in comparable/competitive housing; - Sales per square foot in retail space; Mix of tenants, customer profile and amenities; Distance of competitive projects from the core redevelopment area; - Current zoning criteria, its relation to current land uses, and its influence in the level of success of existing businesses; and, - Other pertinent information including an overview of planned projects considered to impact the redevelopment plan. It is important to stress that our desktop research conducted for this analysis will be supported by a strong field-based effort. Only after matching our desktop analysis with fieldwork will we understand the direction of the market for each particular use and specific geographic areas. Lambert Advisory Retail Trade Model Specific to retain/entertainment opportunities in downtown Clearwater, we will develop a detailed retail trade model which estimates the total demand for retail space by category for the area on a five to ten year projection basis. The model will estimate net new demand from local residents, workers, and visitors and will compare this to the existing competitive retail stock in the area. Driving the model is a significant amount of fieldwork to determine the current mix of retail in the area and how competitive retail will impact any proposed development. Market Conclusions Based upon the findings from the supply and demand analysis and general understanding of the community and its residents, we will be able to clearly understand how to focus retail and office business expansion as well as housing development. As part of our market conclusions we will begin to assess what sites or nodes within the downtown area could contribute to the overall value of a redevelopment plan. Importantly, we will create a general phasing plan for the downtown area to broadly define where prospective Downtown Clearwater Market Study Page 4 investment (both public and/or private) should be targeted to meet underlying market trends. Task 3: Marketing Initiatives As part of our economic and market analysis, we will identify opportunities related to special events and promotions for Downtown Clearwater. This marketing effort is considered to serve two rolls: 1.) identify events and related activities that will directly support existing businesses and stakeholders; and, 2.) consider promotional activities that will heighten the awareness of Downtown Clearwater's future vision and planning effort. To assess the most effective event and marketing programs for downtown Clearwater, we will benchmark other downtown communities that we have worked with, and/or other communities, to provide the City with a general profile of potential of space needs, target audience, funding/cost parameters, and other related characteristics that related to effective events and promotions. Task 4: Redevelopment Opportunities/Preliminary Programs Based upon the collection and analysis of information from the economic and market evaluation, we will develop a detailed strategy of potential short-term (1 to 5 years) redevelopment opportunities for Downtown Clearwater. The strategy will recognize the goal of capitalizing on development opportunities including mixed-use development programs. Notably, an important component to the success of a long-term vision for Downtown Clearwater is housing development, both market rate and affordable. In terms of identifying strategic sites that should be targeted for short-term and long-term development redevelopment, including those locations that the City/CRA has noted, as well as other potential properties, the market study will help answer critical questions, including: ~ What is the highest and best use of the prospective site(s)? Outside of a direct property valuation, is there a viable strategic program that both maximizes the site's value, as well as creating value and incentive for investment within the surrounding area? How could other surrounding properties, if owned or controlled by the City (or other public agency), add value to the overall development program? ~ What liabilities need to be addressed before certain redevelopment programs can be employed and how does the City address those liabilities? What liabilities exist which must be addressed before redevelopment can actually occur? What is the strategy for addressing these liabilities? Downtown Clearwater Market Study Page 5 ~ What type of entity should be the principal developer of the Property? The goal is to optimize the redevelopment plan through a developer primarily familiar with housing, commercial or mixed use development. As the program(s) for redeveloping downtown sites emerges, the opportunity to link the redevelopment options to physical planning options may be addressed. To this extent, we will be able to provide comprehensive insight into issues such as: ~ How do we continue to strengthen Downtown Clearwater's identity? Upon evaluation of certain architectural and design attributes within each area, we may provide recommendations as to how to make use of existing features to market the program. ~ How do we effectively integrate various sites with their surrounding Land Uses? The success of a community often times depends on an adequate mix of land uses. We will help to identify (through Aerial photography and maps) strengths and weaknesses in the existing mix of surrounding uses and its corresponding impact on the redevelopment opportunity. ~ Is there an opportunity to improve pedestrian mobility and create sense of place? An inventory and relationship analysis of existing access routes, public transportation, landscape features, and activity centers may be conducted in order to understand how to better implement the necessary improvements. We feel strongly that an important part of the market study will be to focus intently on short-term opportunities (1 to 5 years). We will also prepare a long-term development vision for certain sites/areas that will most likely be integrated into the overall plan during the 5 to 10+ year timeframe. These opportunities will be evaluated in a similar manner as the prospective short- term programs; however, one focus will be on providing the City/CRA with a program to help property owner(s) and/or the public understand how important these particular sites will be to the long-term vision in hopes of preempting any development that is not in the best interest of the community. Task 5: Downtown Market Study (Report) Based upon the economic and market findings, marketing and community outreach, redevelopment opportunities (short-term and long-term), the final step to the Market Study will be to prepare a final document (report) that includes all research, analysis, and conclusions. Accordingly, the document will be completed in electronic format for presentation on the City of Clearwater web-site. Downtown Clearwater Market Study Page 6 II. Meetinas and Presentations Based upon the scope of services outlined herein, and considering timing and budget parameters, we recommend the following meetings/presentations: 1.) The first meeting comprises the "kick-off" meeting detailed in Task 1 above. As we identify the date for the "kick-off" meeting (assumed to be immediately after contract execution), we should coordinate the list of participants so that appropriate Management and Staff from the City/CRA and/or community will be available. The goal of this "kick- off" meeting will be to finalize the work plan, collect information and data to ensure Lambert has all updated published economic, planning and related documentation from the City/CRA, formally introduce the consulting team to the geographic boundaries of Downtown and surrounding areas, and establish lines of communication. 2.) We propose the second meeting to be a presentation (referred to as Presentation 1) to the City/CRA (Board) approximately 45 days after project commencement. This presentation will include a comprehensive overview of market research, analysis and findings associated with Task II above(which will be completed by this point), as well as provide preliminary insight into both the Marketing Initiatives (Task III) and Redevelopment Opportunities/Preliminary Programs (Task IV). We believe that the format of this presentation should allow for open dialogue, especially as it relates to formulating strategic redevelopment efforts. 3.) The final presentation will be made to the City/CRA (Board) and will focus intently on Redevelopment Opportunities/Preliminary Programs and proposed Marketing Initiatives. This final presentation will be the last opportunity for feedback from the City/CRA prior to the delivery of the Downtown Market Study report. This presentation will most likely occur fifteen to thirty days following the first presentation, with the Market Study report provided fifteen days after the second presentation. III. Fees and Payment Schedule As stipulated within the RFP, Lambert Advisory agrees to the total fee of $35,000 for the Downtown Clearwater Market Study. The fee stated herein includes out of pocket or ancillary expenses such as travel costs (including air and subsistence in the field), automobile costs, printing costs, long distance telephone, postage and courier, and photocopying. We propose to invoice the City of Clearwater as follows: $12,000 upon the 30th day following project commencement, $12,000 upon the 60th day Downtown Clearwater Market Study Page 7 following project commencement, and the balance due upon project completion. If, at some point during the course of the work, a decision is made to discontinue, our fee will be based upon the actual professional time expended to date. IV. Ootional Services One of the primary goals of the Downtown Clearwater Market Study is intended for the City/CRA (and community) to use as a gUideline for visioning both short- and long-term redevelopment strategies. However, the practicality of a strategic plan is marginalized unless the plan is methodically set into "action." This often times proves to be a difficult task by virtue of the fact that some areas in and immediately around downtown are faced with a number of barriers that could serve to minimize, or simply negate, the redevelopment effort. Therefore, Lambert Advisory is prepared to identify critical issues and introduce various options that may be available to "bridge the gap" between opportunity and impediment and, most importantly, create a plan that is acceptable and desirable to the community. To this extent, Lambert is prepared to assist the City/CRA with a comprehensive and detailed project-by-project evaluation to better understand and support prospective investment in a single (or multiple) program. This includes various design, operating, and/or financial services such as: 1.)Physical Plan/Design and Cost Estimates - Considering the physical features and market potential of a prospective redevelopment site, it may be recommended to prepare preliminary site plans and design layouts, with associated hard and soft costs estimates. Initially, this may be very "high-profile" in nature, primarily to provide a benchmark for design and cost parameters. The City may choose its own planning and/or design firm, or Lambert Advisory can help in this process. 2.) Market Performance and Operating Estimates - Utilizing the market demand and pricing estimates determined within the Downtown Market Study, as well as industry operating benchmarks, we will prepare a projected statement of operations through development stabilization for a single use, or mixed-use development program. This includes development phasing, absorption and lease "ramp-up," marketing/lease-up costs, and other related operating estimates. 3.) Financial/"Gap" Analysis - Based upon the market performance and operating estimates for each specific development, we will assist in assembling statements of projected cash flow (before depreciation, amortization and income taxes). The statement of Project Cash Flow Downtown Clearwater Market Study Page 8 will be assembled based upon certain assumptions concluded within the cost and operating estimates summarized above, notably: y cash flow from operations developed by Lambert Advisory; y timing and amount of development costs (as provided by the planning and engineering specialists); y hypothetical financing structures developed by Lambert that will consider local, State and/or federal grants, conventional mortgage-backed financing instruments, and/or other sources of financing that may be obtained for public, private or joint- development program. The results of the financial analysis will help to determine investment returns from a specific development, residual land value and potential capital and non-capital "gaps" in the development of each project. 4.) Capital Investment and Risk/Return Analysis - From the results of the Financial/"Gap" analysis, Lambert will assist in the evaluation of "risk and return" that the City/CRA will need to address related to its level of capital participation for each specific project. To this extent, we will provide a multitude of participation alternatives that the City will use as the basis for the final investment decisions. 5.)Assistance with the preparation and selection process related to RFP's for Developers/Owners - We will assist the City/CRA in developing RFP/RFQ's to identify development partners and/or comparative for incentives. This assistance will include preparation of the RFP based upon the market, physical and financial parameters previously developed to ensure that the City/CRA gets the greatest return in development and financial terms given its investment. 6.) Deal Negotiation Support - We will assist the City, and its legal representative, negotiate finalized agreements with any joint- development partners. Importantly, these optional services are intended to provide the City/CRA with an understanding of some of the services and analyses that may help effectuate initiatives identified in the Downtown Market Study. The City/CRA may elect to undertake certain optional services at any point during the study, or after the study is complete. Optional Services is not included as part of the Downtown Clearwater Market Study; as such, pricing for these services will be done immediately upon request. Downtown Clearwater Market Study Page 9 V. Other Terms and Conditions Our studies, reports and analyses are subject to the following restrictions and conditions: . Lambert Advisory has no obligation to update our findings and conclusions for changes in market conditions which occur subsequent to our work. Any such changes in market conditions may affect the validity of our estimates. . Documents we prepare are based upon assumptions and estimates which are subject to uncertainly and variation. These estimates are often based on data obtained in interviews with third parties, and such data are not always completely reliable. In addition, we make assumptions as to the future behavior of consumers and the general economy which are highly uncertain. Therefore, while our estimates will be conscientiously prepared on the basis of our experience and the data available to us, we make no warranty of any kind that occupancy, rates, revenues, or other related projections will, in fact, be achieved. We hope this letter correctly addresses your needs. If you have any questions regarding the scope of work or business arrangements, please call me at (305) 860-3715. We thank you for the opportunity to present this proposal and look forward to working with you on this exciting assignment Very truly yours, Paul M. Lambert Managing Principal THE PROPOSAL AND ITS TERMS AND CONDITIONS ARE ACCEPTED IN ITS ENTIRETY BY: NAM E AN D TITLE: COMPANY: SIGNATURE: DATE: Downtown Clearwater Market Study Page 10 ATTACHMENT >. "C ::::J - (J) s:: _ o Q) :;:;Io.~ ~ Q) ~ a. ns :2!: E ~ 10. o C'CS Q) uQ)ns o U ~ ..........C'CS Q) 0 Q) ::::JZ'u "C ~U~ (.) 0 (J) - s:: ~ o c o .... ..If:: Qj ~ Q) ..If:: Qj ~ co ..If:: Qj ~ ..... ..If:: Qj ~ CD ..If:: Qj ~ ." ..If:: Qj ~ "It ..If:: Qj ~ M ..If:: Qj ~ C\I ..If:: Qj ~ iI ~ '- .... o ..If:: Qj ~ ..If:: If) III I- "'C Qj Qj U o ... a. o - Qj U :;:; o z If) 'iij :>- (ij s::: Qj <C -0 _ 0 ~ :2: ... Qj III -0 :2: Cll "'C~ ~UJ lij.2 ~ ~.Q u'625l~ 'e 5 '6 .:; u ooc-oc s::: 0 <C 0 o-oOtO UC~Qj"" wCllo...cQj E Q E ~ C\lt3~j~ ..If:: If) III I- ..If:: If) III I- If) Qj > :;:; III E s::: Ig :;:; Qj ..If:: ... 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CRA Cover Memorandum Trackinq Number: 1,245 Actual Date: 04/18/2005 Subiect I Recommendation: Accept selection committee recommendation of Wallis Murphy Boyington Architects, Inc.; Swan Development Advisors, Inc. and Wilson Miller as the top ranked team from responses received to RFP # 13-05 for a Cleveland Street Fac;ade Design Analysis, approve scope of work for the Fac;ade Design Analysis at a cost of $50,000 and accept a transfer of $50,000 from the Downtown Development Board to fund this project, Summary: A major component of downtown revitalization, the Cleveland Streetscape project is an infrastructure project that will address improvements to the public realm along Downtown's "Main Street." The next step to complement the new Cleveland Streetscape project is to encourage the adjacent private property and business owners to improve the facades of their buildings. This concept was discussed at the strategic planning session of the Main Street Joint Venture meeting in July 2004 and a fac;ade design analysis project was identified as a short-term project for FY 04-05 in the Downtown-Gateway Strategic Action Program. CRA staff proposed the fac;ade design analysis for Cleveland Street as a joint project between the CRA and the DDB. The DDB unanimously approved including this project in their annual FY 2004-05 budget process. A line item was established within the budget entitled Facade Design Analysis in the amount of $50,000. In January 2005, the CRA released a Request for Proposals to select a consultant to complete a fac;ade desig n a na lysis for Clevela nd Street. The goa Is of the a na lysis a re to: 1) Identify opportunities for fac;ade improvements along Cleveland Street, from Osceola Avenue to Myrtle Avenue, in Downtown Clearwater; 2) Prepare illustrative concepts of fac;ade improvements to selected buildings; and, 3) Establish a "vision" for building design and character for Cleveland Street, from Osceola Avenue to Myrtle Avenue, reflective of Clearwater's unique character. The final Fac;ade Design Analysis will be utilized to identify and illustrate the form and design of future building renovations and redevelopment along Cleveland Street. The analysis will also serve as a basis for the improvement of the CRA's Fac;ade Improvement Grant Program. The CRA received 4 proposals to RFP #13-05 Cleveland Street Fac;ade Design Analysis. The Selection Committee, composed of Geraldine Campos, Interim CRA Executive Director, Bob Fernandez, Chairman of the DDB, Gina Clayton, Planning Department, and Laura St. Clair, Colliers Arnold, met on March 10, 2005 to review the proposals. The Selection Committee recommends to the CRA the selection of the top ranked team of Wallis Murphy Boyington Architects, Inc.; Swan Development Advisors, Inc. and Wilson Miller to conduct this work. The DDB Chairman and Treasurer will provide the authorization for disbursement for an "interdepartmental transfer of funds" debiting account code #0182-09411-530100-552-000-0000 (Other Contractual Services) and crediting the CRA revenue account code 0188-00000-381782 (Inter-Fund Transfer from the DDB). The transfer may take place on or before the date of the contract with the RFP respondent chosen by the selection committee and the CRA. A copy of the selected proposal is available for review at the Office of Official Records and Legislative Services and Economic Development. f :~. CRA Cover Memorandum Oriqinatinq: Economic Development and Housing Cateqorv: Agreements/Contracts - with cost Public Hearinq: No Financial Information: ~ Other In Current Year Budqet? Yes Budqet Adiustment: No Current Year Cost: $50,000.00 Annual Operatinq Cost: $0.00 For Fiscal Year: 10/01/2004 to 09/30/2005 Total Cost: $50,000.00 Appropriation Code(s) 0182-09411-530100-552-000 0188-00000-381782 Review Approval Geraldine Campos Geraldine Camoos Bill Horne Tina Wilson Cvndie Goudeau Pam Akin Garry Brumback Amount $50,000.00 $50,000.00 Comments Iinterdepartmental Transfer of Funds Inter-Fund Transfer from the DDB 03-30-2005 17:37:51 03-30-2005 17:39:55 04-11-2005 12:48:33 04-05-2005 14: 18:31 04-11-2005 12:59:41 04-05-2005 14:41:07 04-11-2005 07:56:24 f :~. CRA Cover Memorandum Trackinq Number: 1,246 Actual Date: 05/16/2005 Subiect I Recommendation: Approve professional services contract from Swan Development Advisors, Inc. in the amount not to exceed $7,750, to conduct an analysis of the future tax increment that will be generated in the original and expanded CRA boundaries and the appropriate officials be authorized to execute same. Summary: As part of the Downtown Clearwater Redevelopment Plan, approved by the County in February 2004, CRA staff conducted tax increment revenue projections for the original and the expanded CRA over a 30-year period. In the Redevelopment Plan, TIF is identified as one of the funding sources for several capital and infrastructure improvement projects. In addition, TIF is envisioned to be used for paying impact fees, "buying in" of public parking in private projects, assembling redevelopment sites, purchasing land and/or buildings, environmental remediation, and fac;ade improvement grants. In its 23-year history, the CRA and TIF has been a critically effective tool in positioning downtown for redevelopment. The CRA is seeing visible signs of improvement with increases in property values in the last several years translating into additional TIF. In order to make informed decisions and plan for upcoming projects and developments, the CRA needs to revise, update, and incorporate new and anticipated projects to the tax increment projections. The consultant will undertake an analytical review of the factors affecting the tax increment in the CRA and review the original projections made in 2003. The consultant will also examine the taxable nature of all the anticipated projects in the CRA in order to determine an accurate projection of the future tax increment of the CRA. The consultant will prepare a schedule of tax increment projections that will enable the CRA to make informed decisions and plan for upcoming projects and developments. The $7,750.00 is available in the Professional Services line item of the CRA's FY 04-05 Operating Budget. Oriqinatinq: Economic Development and Housing Cateqorv: Agreements/Contracts - with cost Public Hearinq: No Financial Information: ~ Other In Current Year Budqet? Yes Budqet Adiustment: No f :~. CRA Cover Memorandum Current Year Cost: $7,750.00 Annual Operatinq Cost: $0.00 For Fiscal Year: 10/01/2004 to 09/30/2005 Not to Exceed: $7,750.00 Appropriation Code(s) 188-09311-530100-552-000 Amount $7,750.00 Comments Review Approval Geraldine Camoos Pam Akin 03-30-2005 17:37:14 03-30-2005 17: 40 : 31 04-11-2005 13: 12:38 04-05-2005 14:19:15 04-11-2005 13:17:23 04-05-2005 14:43:09 04-11-2005 07: 54: 10 Geraldine Camoos Bill Horne Tina Wilson Cvndie Goudeau Garry Brumback Swan Development Advisors, Inc. Community and Real Estate Development Consulting PROFESSIONAL SERVICES PROPOSAL To: Ms, Geraldine Campos Economic Development and Housing Director CRA Interim Executive Director City of Clearwater 112 S. Osceola Avenue Clearwater, FL 33756 ,; From: , .' ,. ..~/o~>... -__________ Bruce Lyon President Swan Development Advisors, Inc. P,O, Box 2097 Lakeland, FL 33806 Date: March 21, 2005 Subject: Professional Services Proposal Tax Increment Analysis Downtown Community Redevelopment Area (CRA) Clearwater, FL Scope of Services Overview I, The City of Clearwater Director of Economic Development requests Swan Development Advisors to submit a proposal outlining the Scope of Work and Fee structure for assisting the City of Clearwater to undertake an analysis of the future tax increment that will be generated in the Downtown Clearwater Community Redevelopment Area. 2. It is the intent of the consultant and the City of Clearwater Community Redevelopment Agency to prepare a schedule of tax increment projections that will enable the City of Clearwater and the CRA to make informed decisions regarding methods to utilize the tax increment for upcoming projects and developments. 3, Mr. Bruce Lyon of Swan Development Advisors, Inc. will serve as the project manager, performing the technical and analytical project tasks for the tax increment study, 4. Ms, Geraldine Campos of the City of Clearwater will provide the necessary project related information to Swan Development Advisors, and will be available on a periodic basis to meet with Swan Development Advisors to examine the draft work product, to provide additional information as needed and to make certain assumptions regarding the timing and taxable nature of future projects. P.O. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com Swan Development Advisors, Inc. Community and Real Estate Development Consulting Tax Increment Analvsis Swan Development Advisors will undertake an analytical review of the factors affecting the tax increment in the CRA utilizing information provided by the City of Clearwater to develop tax increment projections for the area. Swan Development Advisors will revise, update and incorporate new and anticipated projects to these projections in order to determine an accurate projection ofthe future tax increment that the City of Clearwater Downtown Community Redevelopment Agency will receive in the future. I I. Swan Development Advisors will attend up to two (2) initial meetings with the Client for the purpose of reviewing and reaffirming the Client needs and objectives and to review the data to be provided by the Client that the Client may need to collect from various City Departments. These meetings may include interviews or discussions with key staff members regarding specific projects and their taxable structure. 2. Consultant will attend up to three (3) additional meetings with Client to review variables, assumptions and findings prior to submission of final report. 3, Swan Development Advisors, Inc. will undertake an examination of current tax increment projections to validate their accuracy and/or to adjust for externalities not integrated into the current modeling. 4. Swan Development Advisors will examine the taxable nature of all anticipated projects to be located in the Downtown CRA for the purpose of projecting the tax revenues that will be generated by these projects and thus the tax increment to be contributed to the CRA by the projects. 5. Consultant will provide a draft report based on the review and validation of assumptions by Client... Report will contain a written description of the process, findings and conclusions supported by exhibits that detail the tax increment projections for the Downtown CRA. 6. Client will provide editorial or technical feedback to Consultant regarding the draft report within fifteen business days of receipt upon which time the Consultant will produce a final report within fifteen business days. Fee Schedule The above professional services are available to the Clearwater Downtown Community Redevelopment Agency on a lump-sum basis. Invoices to be paid monthly on a percentage completion basis. Tax Increment Analysis $7,250.00 Reimbursables $ 500,00 (Including travel, mileage, subsistence, long distance communication, postage, shipping, reports and reproductions. Out-of-Pocket expenses will be billed at cost plus 15%)) Total Maximum Contract Amount $7.750.00 P.O. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com 2 Swan Development Advisors, Inc. Community and Real Estate D""elopment Consulting Timeline for Completion of Project Barring delays, the project activities can be completed as indicated below, Final Report - 100% 60 business days from receipt of Tax increment data and required project information 15 business days from receipt of CRA comments . Tax Increment Analysis Tax Increment Analysis Draft Report - 80% complete Acceptance and Authorization to Proceed Pre-Payment - The Client will make an initial payment of 0 .00 upon execution of this agreement. Payment Schedule - Fees will be billed monthly on a percentage completion basis. Invoices to be paid by Client within 30 days of invoice date. Full payment shall be due to Swan Development Advisors, Inc. upon final billing. Client agrees to review all billing invoices/statements and promptly notify Swan Development Advisors, Inc., in writing, of any discrepancies or errors with fifteen (15) days from the receipt of the invoice/statement. If this proposallAgreement satisfactorily sets forth Client's entire understanding of the agreement, please sign the agreement below in the space provided and return it to Swan Development Advisors, Inc. as authorization to proceed with the work. Accepted this day of , 2005. Signature Ms. Geraldine Campos, Economic Development and Housing Director CRA Interim Executive Director 112 S. Osceola Avenue Clearwater, FL 33756 P.O. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com 3 f :~. CRA Cover Memorandum Trackinq Number: 1,268 Actual Date: 04/18/2005 Subiect I Recommendation: Appoint Trustees Carlen Petersen and John Doran as ex-officio members of the Downtown Development Board. Oriqinatinq: Official Rec and Legislative Svc Cateqorv: Other Public Hearinq: No Financial Information: ~ Other Review Approval Cvndie Goudeau 04-15-2005 10:13:15 Garrv Brumback 04-14-2005 16:52:50 Bill Horne 04-15-2005 09:43:11 f :~. CRA Cover Memorandum Trackinq Number: 1,288 Actual Date: 04/18/2005 Subiect I Recommendation: Deny request for an additional time extension of "Agreement of Development and Disposition of Property IMR Site II" located at 1180 Cleveland Street. Summary: The Community Redevelopment Agency (CRA) approved the original Development Agreement with Information Management Resources, Inc. (IMR) on October 27, 1998 for the purchase of the approximate 1.23-acre parcel (Site) located on the north side of Cleveland Street in the amount of $131,770.00. IMR sold the Site on March 10, 2000 to Paul Simone or assignees (Buyer) for the proposed hotel development. On April 12, 2000, the Buyer assigned all rights to S&P who assumed all of IMR's obligations under the Development Agreement. As a result, the Development Agreement was amended at the request of S&P Properties LC (S&P) to allow the construction of 55 hotel rooms, as described in the amended Development Agreement. In order to obtain the incentive, that is payment of impact fees, the Project was required to commence by October 2003. Additionally, the Agreement provides that if the Project does not commence by October 2003, the Developer is required to pay $35,000 to the CRA. The $35,000 represents the difference between the Purchase Price of the Site payable pursuant to this Agreement and the estimated Fair Market Value of the Site. The Developer is requesting a 12-month time extension. This is the third request for an extension of time by S&P. A 12-month extension was granted in October 2003. On October 18, 2004, the CRA again extended the timeframe for commencement of the Project through April 30, 2005. These prior amendments were requested because of the downturn in the tourism economy due to the events of September 11, 2001 and the fact that IMR was purchased by CGI (who has since sold the building to CRUM Services). During the last several years, the Developer has been seeking interest for a joint venture to develop the property. A hotel and office condominiums were areas that the Developer explored that did not work out. S&P currently has the property listed with Keller Williams, a national real estate firm whose commercial division is trying to locate a prospect for the site. If the commencement requirement of the Development Agreement is not extended, the Developer is in default of the Agreement and shall pay the CRA $35,000. Additionally, the CRA will not be obligated to pay impact fees for the Project. The payment of impact fees and sale of the property for "fair value" as opposed to fair market value are CRA incentives for the timely redevelopment of the property. The commencement date has been shifted from October of 2003 to October of 2004 to April of 2005. Staff sees no benefit to the CRA in extending the commencement date for the Project. Staff recommends that the time extension be denied. Oriqinatinq: Economic Development and Housing Cateqorv: Agreements/Contracts - without cost Number of electronic documents attached: 1 Public Hearinq: No Financial Information: f :~. CRA Cover Memorandum Review Approval Geraldine Campos 04-13-2005 12:50:35 Cvndie Goudeau 04-15-2005 10: 12:20 Geraldine Camoos 04-13-2005 12:51:33 Garrv Brumback 04-14-2005 16:55:09 Pam Akin 04-13-2005 14:26:29 Bill Horne 04-15-2005 09:44:28