05/02/2005
eRA Agenda
Date: 05/02/2005
Location: Council Chambers - City Hall
Call to Order
Approval of Minutes:
CRA Item
1. 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.
2. Approve first amendment to Agreement for Development and Disposition of Property
(Station Square Development) to reflect actual dates and party names and extend
timeframes to commence construction and CRA option to repurchase to 540 days after
closing,
Executive Director (Assistant City Manager) verbal reports
Other Business
Adjourn
eRA Agenda 5/2/2005
Page 1 of 1
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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
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CRA Cover Memorandum
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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
,;
, .'
,. ..~/o~>... -__________
Bruce Lyon
President
Swan Development Advisors, Inc.
P,O, Box 2097
Lakeland, FL 33806
From:
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,Q. 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
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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
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CRA Cover Memorandum
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Trackinq Number: 1,315
Actual Date: 05/02/2005
Subiect I Recommendation:
Approve first amendment to Agreement for Development and Disposition of Property (Station
Square Development) to reflect actual dates and party names and extend timeframes to
commence construction and CRA option to repurchase to 540 days after closing,
Summary:
The CRA entered into a Development Agreement with Station Square, LLC. (Developer) for the
redevelopment of the Station Square Parking Lot (Site) on February 17, 2004. The Developer
closed on the property on August 25, 2004. Since that time, the Developer has been seeking
financing to commence construction on the project. The Developer is bringing a new investor
into the project and is therefore requesting several amendments to the Development Agreement
to reflect an assignment of the Agreement to a new owner/developer, actual dates of submittal
of permit application and real property closing, a decrease in retail space and parking spaces (as
approved by the CDB), and request an extension of time to commence construction (definition to
be clarified) and the CRA's option to repurchase the Site.
The amendment will reflect the new changes as follows:
l)Owner/Developer name changes to Station Square Clearwater Condominium, LLC per
assignment under the Agreement.
2)Revised square feet of retail from 15,000 to 10,000 and number of parking spaces from 326 to
296. The City will still purchase 100 parking spaces for the public.
3)Reflect actual submittal date of permit application.
4)Reflect actual closing date of August 25, 2004 agreed to by both parties.
The Developer is also requesting an extension of time to commence construction from 240 days
after closing to 540 days after closing. In addition, they are also requesting that the CRA's
option to repurchase the Site if the Developer does not commence construction be extended
from 365 after closing to 540 days after closing. This request puts both key dates at 18 months
after closing (approximately February 2006).
Staff supports these changes to the Development Agreement, as a new investor will add
strength and vitality to the project. Again, the benefits to this redevelopment project include
residential in the downtown core; a mixed-use project with retail on the ground floor; 100 public
parking spaces
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CRA Cover Memorandum
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; estimated tax increment of $315,000 in year following project completion (estimated project
valued at $42 million); and construction timeline still in line with Cleveland Streetscape project.
The remaining business points to the Development Agreement remain the same.
In summary:
.Project contains 126 residential units, 100 public parking spaces. As mentioned above, the CDB
approved the revised Site Plan on August 17, 2004.
.Purchase price was $720,000; CRA holds a note on the property to be repaid when Developer
receives financing.
.Developer agrees to sell to the City 100 parking spaces for $1,250,000 (Source: Parking Fund).
.CRA agrees to reimburse project impact fees up to $460,000 over a two-year period from final
certificate of occupancy (Source: Tax Increment).
.Developer agrees to actively market ground floor retail.
.CRA/City agree to construct Cleveland Streetscape Project and improvements to Station Square
Park.
.Developer can use Station Square Park as a staging area for construction.
Oriqinatinq: Economic Development and Housing
Cateqorv: Agreements/Contracts - without cost
Number of electronic documents attached: 1
Financial Information:
Review Approval
Geraldine Campos
Pam Akin
04-26-2005 17:50:47
04-28-2005 15:12:54
04-26-2005 17:52:42
04-27-2005 15:28:29
04-27-2005 10:27:02
04-27-2005 16:34:41
Cvndie Goudeau
Geraldine Camoos
Garrv Brumback
Bill Horne
FIRST AMENDMENT TO AGREEMENT FOR DEVELOPMENT
AND
DISPOSITION OF PROPERTY
(Station Square Development)
The Agreement for Development and Disposition of Property ("Agreement") dated the
17th day of February, 2004, by and between the COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF CLEARWATER, FLORIDA, a public body being corporate and politic of the
State of Florida created pursuant to Part III, Chapter 163, Florida Statutes ("Agency"), and
STATION SQUARE, LLC, a Florida limited liability company ("Developer") is hereby amended
as follows:
WITNESSETH:
WHEREAS, Agency and Developer entered into the Agreement providing for the
conveyance of the Station Square Parking Lot Site, the development of the Station Square Project
and related Infrastructure Improvements (as defined in the Agreement);
WHEREAS, due to certain terms and conditions of the Agreement, and in order to provide
for the successful development of the Project, the Agency also entered into an interlocal
agreement with the City of Clearwater, Florida ("City"), as of February 17, 2004 ("Interlocal
Agreement"), providing for the cooperation and assistance of the City and the Agency in
accomplishing goals and objectives of the Agreement, including establishing certain other duties,
obligations, terms and conditions of the Agency and the City pertaining to the Project Site and the
Infrastructure Improvements;
WHEREAS, the Agency and the Developer now wish to amend the Agreement in order to
allow for the assignment of the Agreement, decrease both the square footage allocated for retail
space and the number of parking spaces, modify certain dates to reflect actual dates of the Permit
Application filing and real property closing, clarify the definition of Commence Construction and
applicable timeframes related thereto, and redefine the timeframe related to the City's repurchase
option.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the parties hereby agree as follows:
Section 1.
Section 1.01 is hereby amended to read as follows:
1.01 Definitions.
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(39) "Station Square Project" or "Project" means the not more than 146 residential
condominium units and appurtenant facilities, not more than 10,000 square foot allowable
retail space, and approximately 296 parking spaces, approximately 100 of which will be
public parking, to be located on the Project Site as contemplated by the Proposal and this
Agreement and constructed substantially in accordance with the Station Square Plans and
Specifications.
Section 2.
Section 2.01 is hereby amended to read as follows:
2.01. Intent; Purpose of Agreement.
(b) (1) The Project Site is to be redeveloped according to Station Square Project Plans and
Specifications for use as not more than 146 residential condominium units and 10,000 square feet
of Allowable Retail Uses, together with approximately 296 parking spaces, 100 of which will be
public parking.
Section 3.
Sections 3.07 (b) and (c) are hereby amended to read as follows:
3.07. Permitted Uses.
(b) The proj ect shall have approximately 296 parking spaces, 100 of which are public parking
spaces.
(c) The project shall contain approximately 10,000 square feet of Allowable Retail Uses on
the first floor
Section 4.
Section 4.02 is hereby amended to read as follows:
4.02. Preparation of Station Square Project Plans and Specifications.
(d) The Developer shall file the Station Square Project Plans and Specifications with the
Agency no later than March 1,2005. The Agency and the Developer recognize and acknowledge
the need for expedited review of the Station Square Project Plans and Specifications and approval
by the Agency.
Section 5.
Section 7.11 is hereby amended to read as follows:
7.11. Closing.
2
The parties hereto acknowledge that Developer purchased the Station Square Parking Lot Site on
August 25,2004 ("Closing Date").
Section 6.
Section 8.02 is amended to read as follows:
8.02. Construction of the Project.
(a) (1) The Developer shall construct the Station Square Project on the Station Square Parking
Lot Site substantially in accordance with the Station Square Project Plans and Specifications
therefore. Subject to Unavoidable Delay and the terms and conditions in this Agreement, the
Developer shall Commence Construction of the Station Square Project within five hundred forty
(540) days of the Closing Date.
(2) For purposes of this Section 8.02, "Commence Construction" of the Project, means
the start of meaningful physical development of a material part of the Proj ect as authorized by the
Building Permit therefore which is continued and prosecuted with reasonable diligence toward
and with the objective of completion of that part of the Station Square Project.
(3) If for any reason, including Unavoidable Delay, the Developer does not commence
construction of the Station Square Project on or before the five hundred fortieth (540th) day after
the Closing Date, then as of that date the Agency shall no longer be obligated to plan, design,
construct or install the Infrastructure Improvements in accordance with the Infrastructure
Schedule, and Agency and Developer shall thereafter undertake to mutually agree upon a revised
Infrastructure Schedule for the design, construction and installation of the Infrastructure
Improvements by Agency.
Section 7.
Section 8.07 is hereby amended to read as follows:
8.07. Repurchase of the Site Property.
(a) In the event Developer shall not have commenced construction of the Station Square
Project within eighteen months following the Closing Date, then in such event, Agency shall have
an option to purchase the Property upon the terms and conditions as set forth in this Section 8.07
(the "Property Option"). The Property Option shall be exercised by Agency within ninety (90)
days following the expiration of the eighteen-month period following the Closing Date. The
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Property Option shall be exercised by Agency providing written notice to Developer of its intent
to exercise the Option within said ninety (90) day period (time being of the essence with respect
to such notice). In the event that Agency should fail to provide such written notice of its exercise
of the Property Option within said ninety (90) day period, then the Property Option shall
immediately and automatically lapse.
(c) Until the commencement of construction by the Developer on the Property or the
expiration of the eighteen month period in which such construction was to commence plus the
ninety (90) day period during which the Agency may exercise its option to repurchase the
Property, the Developer covenants and agrees with the Agency not to cause any mortgage or lien
to be levied, assessed or placed on the Property with respect to any financing of Developer's
construction of the Station Square Project or other corporate financings of any type without the
prior consent of the Agency.
Section 8. The parties hereto hereby acknowledge the assignment of Station Square Project
and all of the Developer's (Station Square, LLC' s) right, title, interest and obligations under this
Agreement to Station Square Clearwater Condo, LLC, ("SSCC"), a Florida limited liability
company. The parties further acknowledge that the transfer does not result in a joint venture, the
Developer is not a general partner in SSCC, nor does the Developer have a controlling interest or
management rights in SSCC, therefore, said assignment requires prior of approval by the Agency
under Section 17.01 of the Agreement before such assignment shall become effective
Section 9.
Effective Date.
This
amendment
shall
be
effective
upon
execution.
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COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
CLEARWATER, FLORIDA
By:
Frank V. Hibbard
Chairperson
Approved as to form:
Attest:
Pamela K. Akin
City Attorney
Cynthia E. Goudeau
City Clerk
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me this _ day of , 2005
by FRANK V. HIBBARD and CYNTHIA E. GOUDEAU, Chairperson and City Clerk,
respectively, of the Community Redevelopment Agency of the City of Clearwater, Florida. The
are personally known to me or have produced valid Florida drivers' licenses as identification
(Seal)
Notary Public, State of Florida
Printed or typed name
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STATE OF FLORIDA )
COUNTY OF PINELLAS )
STATION SQUARE, LLC
By:
President
The foregoing instrument was acknowledged before me this _ day 2005, by
, President of a Florida corporation, on behalf of
Print/Type Name:
Notary Public
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