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05/15/2000CITY COMMISSION WORKSESSION CITY OF CLEARWATER May 15, 2000 Present: Brian J. Aungst Mayor/Commissioner J. B. Johnson Vice-Mayor/Commissioner Ed Hooper Commissioner Robert Clark Commissioner Ed Hart Commissioner Also present: Michael J. Roberto City Manager Bill Horne Assistant City Manager Bob Keller Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia Sullivan Board Reporter The meeting was called to order at 9:00 a.m. at City Hall. Service Awards Three service awards were presented to City employees The Commission recessed from 9:04 to 9:22 a.m. to meet as the CRA (Community Redevelopment Agency) and Pension Trustees. SBS STRATEGIC BUSINESS SERVICES Approve $165,000 expenditure & authorize City Manager to execute contract & license supplement for purchase of Computer Telephony Integration System, from SFG Technologies, Inc.; approve $26,218 expenditure to Sprint Telephone of Florida, to upgrade & expand Meridian phone switch which services the MSB; approve 5-year interfund loan from Central Insurance Fund for $165,000 This purchase of components for the CIS (Customer Information System) project is included in the original CIP approved on June 18, 1998. The CIS computer database and customer service application were implemented successfully in October 1999. The project is estimated to cost $191,218: 1) $95,000 – software; 2) $70,000 – installation & professional services; and 3) $26,218 – Meridian phone switch upgrade. Upgrades will improve customer service response: 1) optimize routing of incoming customer calls; 2) coordinate outbound service calls with customer database pop screens & service representative availability; 3) perform automated call campaigns for service information & marketing; and 4) provide basic e-commerce services such as e-mail inquiries, web callback requests; and online chat capability. The Meridian phone switch will be expanded with hardware and upgraded with software to accommodate increased call loads and routing requirements while maintaining current service capacity at the Municipal Services Building. In response to a question, Strategic Business Services Director Jim Geary said the upgrade should be in service by December 2000. The system will serve the City’s 7 utilities, which have 55,000 accounts; 45,000 are active. In response to a question, he said the system will be front-end friendly and customer telephone calls will be answered by a live human voice. GS GENERAL SUPPORT SERVICES Authorize funding capital project "SPJC Field Site Development" with additional $47,997 to be provided by a Third Quarter budget amendment from unappropriated retained earnings of the General Fund In February 2000, the City Commission approved funding a $50,000 capital project, “SPJC (St. Petersburg Junior College) Field Site Development,” to ascertain the site’s suitability as a preliminary choice and possible site for a new sports stadium. A $36,460 purchase order was issued to TBE (Tampa Bay Engineering) to conduct a subsurface investigation. The SPJC and City legal counsels halted work early pending clarification of liability issues. Negotiations between SPJC and the City revised TBE’s scope of work to be less intrusive and increase subsurface groundwater and soil analysis. The revised scope increases project costs by $37,997. Also, $10,000 is requested for attorney’s fees to Akerman, Senterfitt & Edison, P.A. for the services of William l. Pence, the environmental attorney consulted by the Legal Department. This requested funding of $47,997 will increase project costs to $97,997. In response to a question, General Support Services Administrator Keith Ashby said this site is outside the Brownfields zone and does not qualify for that funding. Discussion ensued regarding project costs. The City Attorney said due diligence requires the City to conduct these tests before accepting ownership of any property. PD POLICE Approve transfer of funds, $38,900, for total $163,900, construction of Wood Valley Police Department Substation The Wood Valley Police Substation, funded as a Capital Improvement Project for $125,000 in Penny for Pinellas revenue, is being constructed to meet community needs. After approval, the City revised its Land Development Code, which increased related costs and now exceeds the project’s budget. Costs are: 1) $120,000 – construction & architecture; 2) $10,000 – parking spaces; 3) $10,000 – site clearing, stormwater retention, & utility connections; and 4) $9,000 – landscaping. The project is projected to cost $149,000 plus a contingency fund of $14,900. Staff requests increasing the project total to $163,900. The South Greenwood Police Substation project was funded with $75,000 in Penny for Pinellas revenues. City funding of this project is no longer necessary as the Community Service Foundation obtained construction costs through a grant. All funds in the South Greenwood project, $36,100, will be returned to the Penny for Pinellas unallocated reserves at mid-year. In response to a question, Police Chief Sid Klein said the revised Land Development Code affected the site’s landscaping, parking, utility connections, and stormwater retention. The site does not have off-street parking. He said not all project cost increases are related to the new Code. In response to a question, Police Chief Klein said the Police Department will patrol nearby areas, including large apartment complexes. Staff needs a facility that provides privacy and storage. PR PARKS AND RECREATION Amendment to agreement with Krishnan Anandan, Parks and Recreation Tennis Professional, increase term from 5/1/00 to 9/30/00 and amount from $55,000 to $90,000 For 4 years, Krishnan Anandan has worked as the City’s tennis professional under a professional service contract. His contract expired October 1, 1999. Due to a reorganization of tennis operations and construction at the McMullen Tennis Complex, the Parks & Recreation Department entered a 3-month, short-term contract with Mr. Anandan. As more time was needed to reorganize tennis operations, the City Manager approved extension of the agreement through April 30, 2000, and increased the contract amount to $55,000. On February 3, 2000, the City Commission ratified and confirmed this change. The study associated with reorganizing tennis operations is complete. Staff has determined it is best to retain Mr. Anandan under a professional service contract and recommends extending his contract through the remainder of the fiscal year and increasing the current blanket purchase order to $90,000, for 12-months from October 1, 1999 to September 30, 2000. A new tennis professional service contract will be negotiated to take effect October 1, 2000. This action does not impact expenses in the department’s operating budget. The City compensates Mr. Anandan with 80% of revenues collected for instruction he provides as the City’s contract tennis professional. The City retains the remaining 20%. In response to a question, Parks & Recreation Director Kevin Dunbar said the increase to the contract’s cost permits the City to reimburse Mr. Anandan 80% of the fees the City collects for tennis lessons taught by Mr. Anandan. The number of lessons he teaches increases during summer vacation. In response to a question, Mr. Dunbar said staff is researching the fee split and will address that issue when next year’s contract is presented in September 2000. The goal is for the City’s tennis program to be self-sufficient. Extend contract with Laub's Landscape Maintenance, Inc., from 4/1/00-3/31/01, estimated $48,000 On February 19, 1998, the City Commission, through a bid process, awarded a 12-month maintenance service contract to Laub’s Landscape Maintenance, Inc. for locations in West Clearwater through February 28, 1999. Parks & Recreation staff recently realized the first renewal option had expired and the request to approve the second renewal option had not been processed. This is the second of 2 available renewal options authorized under terms of the City’s bid. Laub’s agrees to continue providing the same services for an additional 12-month period at the original contract price. Staff has added $7,000 to the previous contract amount of $41,000 for additional unscheduled service requests and unscheduled clean-ups at contracted sites. In response to a question, Mr. Dunbar said currently staff cannot request additional help for storm clean up. It was stated that service should be included in the RFQ (Request for Qualifications). Mr. Dunbar said the City Manager’s budget for next year would include this contingency. Approve concept of land swap with Calvary Baptist Church for Chesapeake Park pending passage of referendum authorizing same The City’s Chesapeake Park on McMullen-Booth Road has a 300-foot softball field, restrooms, and a playground. Predominant use of the 4.9-acre park is for adult and youth softball. Calvary Baptist Church recently acquired property on the southwest corner of McMullen-Booth Road and Drew Street, adjacent to Chesapeake Park and plans to relocate to this site. Calvary Baptist Church wants to trade a vacant 5-acre parcel on Drew Street at Hampton Road for the Chesapeake Park land. The vacant parcel, on the north side of Drew Street, west of Eisenhower Elementary School, is conveniently linked to the Eddie Moore Softball Complex for maintenance and tournaments by a portion of the East/West Trail. On February 3, 2000, Frost Appraisal and Market Consultants, Inc., completed appraisals on both sites. The City’s parcel was value forecasted at $560,000, while the church’s parcel was value forecasted at $580,000. Staff has reviewed the site and estimates 2 softball fields can be developed, one 300 feet and one 200 feet. Calvary Baptist Church has agreed to pay the City an amount not to exceed $330,000 to construct on the new site a replacement 300-foot softball field and the same amenities that are at Chesapeake Park. Staff estimates this amount is sufficient to complete the task. Additional funding of approximately $160,000 would be needed to construct an additional 200-foot softball field. Staff requests approve to proceed with a referendum for transfer of Chesapeake Park as recreation/open space. The church has agreed to allow the City to maintain and operate the Chesapeake Park field for 3 to 4 years until the church begins construction of this area. The land swap would take place upon passage of a referendum. Church funds will be provided when the new ball field is needed. Staff recommends the land swap: 1) development of two softball fields on the north side of Drew Street would total 9 fields at the Eddie Moore Softball Complex; 2) confining all maintenance operations to the north side of Drew Street would improve staff safety; 3) the East/West trail would connect the 3 areas; 4) playing conditions would be upgraded; 5) participant accessibility would be improved; and 6) possible partnership with the Pinellas County School Board to use Eisenhower Elementary property exists. Regarding the proposed site, an opinion was expressed that it is too small for two fields, it would disturb nursing home residents next door, inconvenience softball participants south of Drew Street, and remove land from the tax rolls. Mr. Dunbar said a spur can be built to connect the site with the East/West trail. The City is initiating discussion with the Pinellas County School Board to form a partnership for recreational facilities at Eisenhower Elementary School. Staff now must cross Drew Street to maintain Chesapeake Park. The new site would eliminate this dangerous crossing and improve access to all fields for tournament participants. It was said the proposal would improve control of complex access as improvements to Chesapeake Park would necessitate expensive fencing. Mr. Dunbar said the new site would provide adequate parking. He will provide a copy of the appraisals. Support for church plans to construct a high school on the site was stated. SFS STRATEGIES FOR SUCCESS Agreement with Public Enterprise Group, act as Clearwater's agent in exploring partnership opportunities & negotiating corporate partnerships, for amount not to exceed $40,000 of which $30,000 is recoverable with future agreements The selection committee evaluated 3 proposals submitted in response to the City’s Public/Private Partnership RFQ, and recommends PEG (Public Enterprise Group) as most qualified to act as Clearwater’s agent in exploring and negotiating corporate partnerships. Staff intends to authorize PEG to identify and negotiate agreements with appropriate corporate partners. PEG will solicit and negotiate with these corporations seeking to maximize resources of cash and in-kind to Clearwater without increasing taxes. In exchange, the City will offer corporations a package of partnership benefits to provide exclusive vending and marketing rights to municipal properties. Experience with similar cities, Huntington Beach and Garden Grove, California, has yielded revenues of $6-million and $1.6-million respectively over 10-year agreements. Staff expects the City can receive between $200,000 and $300,000 annually and recommends dedicating the first $200,000 to the Fire Department if a long term contract can be signed. The City will advance PEG $30,000 on future commissions at a rate of $5,000 upon contract execution and $5,000 monthly thereafter. The City also will reimburse PEG for travel, entertainment, and collateral marketing up to $10,000. The $30,000 advance is fully recoverable if the City enters any contract PEG brings forward for City Commission approval. The contract is structured so that PEG receives commission on revenue generated to the City at a rate of 12% for cash revenue and 5% for non-cash revenue to be paid for the life of each agreement. The consultant will submit for City approval a list of business entities that could become partners and marketing plans for each partnership package. The City Commission retains control throughout the entire process and shall have no obligation to pay consultant commissions for denial of any proposed partnership agreement even if the City previously had approved the marketing plan. The partnership will be developed so that the City never gives the perception of selling out but is credited for innovative thinking that enhances Clearwater’s image and stature. In response to a question, Strategies for Success Director Garry Brumback said the two California cities will collect money over the 10-year length of the contracts. It was stated under normal business practices, the City should not pay the firm until it produces results. Mr. Brumback said each of the bids had made similar demands for up-front payments. It was stated consideration of Fire Department needs should not be part of this issue. Concern was expressed commercial intrusion into City facilities will affect public perception. It was felt these agreements would be transparent to the public. It was recommended the City consider all streams of revenue to offset spiraling costs. It was suggested subject revenues be directed to the Fire Department and Parks & Recreation facilities. It was felt the cost is small considering the expertise necessary to negotiate deals of this magnitude. The City Manager said staff had considered handling this project in-house. The subject firm has developed nationwide contacts. PW PUBLIC WORKS Agreement with Azurix/J&J Baker, transportation, treatment & disposal of bio-solids residuals, 5/20/00-5/19/05, estimated $3,900,000 The proposed contract will provide a safer, more efficient operation of the City’s 3 AWTP (Advanced Water Treatment Plant) facilities. In 1999, operating costs of approximately $624,000 generated 21,000 processed tons. Under this contract, the cost would have been $616,000. In the CIP, $2.5-million budgeted for continued operation of the RMF (Residual Management Facility) can be eliminated. The City’s liability for processing and transporting bio-solids residuals will cease as the contractor will assume liability at the point of loading and indemnify the City. FDOT (Florida Department of Transportation) requires submission of an agreement signed by responsible officials of both parties for indemnification of the City. Staff operating the RMF will be reassigned to other department positions. The City can declare equipment used only to operate the RMF as surplus or assign it to other departments. Labor and operating supply costs increase annually. This contract locks in a price per ton to process City residuals for the next 5 years. In response to a question, Public Utilities Director Kevin Becotte said the City had released a RFQ (Request for Qualifications). Although the low bidder subsequently was purchased by a larger company, it has agreed to hold the bid price for five years. In response to a question, Mr. Becotte said the percentage of savings will remain constant if the amount of processed material increases. The proposed contract would be effective on May 20, 2000. It was questioned when staff plans to bring forward its request for 10 additional FTEs (Full-Time Equivalent) for the AWTP and industrial pretreatment facilities. Savings related to personnel costs where not included in the savings estimate. Staff plans to reclassify some positions. In response to a question, Public Works Administrator Mahshid Arasteh said the firm will haul the materials to their own facility. At Northeast AWTP, the City will close a building no longer needed to process materials. Staff will reprogram the $2.5-million CIP savings to other water and sewer projects. First Reading Ord. #6561-00 - Relating to utilities; amending Sec. 32.159 (water use restrictions, enforcement, penalties) to conform with Pinellas County regulations during times of declaration of water shortage condition or emergency According to this amendment, the City will follow the same water use restrictions as adopted by Pinellas County, including authorized hours. This change will eliminate City resident confusion due to varied restrictions. In the future, water use restrictions, enacted by Pinellas County, will automatically be effective in Clearwater. In response to a question, the City Attorney said this ordinance will eliminate the City’s ordinance related to water use restrictions. PLD PLANNING & DEVELOPMENT SERVICES Public Hearing & First Reading Ords. #6545-00, #6546-00 & #6547-00 - Annexation (& redefining boundary lines of City to include said addition), Land Use Plan Amendment to Residential/Office/Retail & Commercial Zoning, 1545 S. Belcher Rd., Sec. 19-29-916, M&B 33.05 & 33.07 (Greater Clearwater Association of Realtors, A00-07) The applicant has requested annexation to provide a simplified development process. The 1.76-acre property at 1545 South Belcher Road will have a Land Use Plan designation of Residential/Office/Ret il and zoning of Commercial (C). The Community Development Board endorsed the request. In response to a question, Assistant Planning Director Cyndi Hardin said the abandoned gasoline station at the intersection with Nursery Road is not part of the development. The Commission recessed from 10:47 to 11:08 a.m. CA LEGAL DEPARTMENT Regarding 7/11/00 Referendum Downtown Development Term Sheet Term Sheet definitions: a) Additional Tax Increment - tax increment paid to CRA (Community Redevelopment Agency) from time to time less existing tax increment on July 11, 2000, & less future tax increment previously committed by CRA to the IMRglobal Project; b) Bayfront - portion of lands west of Osceola between Pierce & Drew depicted on Exhibit 1 (of the Term Sheet); c) Bayfront Park Improvements - improvements to Bayfront depicted in Master Plan of Development, including removal of existing pavement & installation of landscaping material & waterfront promenade; d) City Hall Parcel - land on which existing City Hall & City Hall parking lot are located; e) Civic Space Project - addition to new Main Library with 17,000 square feet of office floor area, an auditorium that seats 155 persons & is comparable in access, finishes, & equipment to existing City Hall, plus 10,000 square feet of flexible meeting room floor area; f) Cleveland Streetscape Improvements - sidewalk, median, & landscape improvements on Cleveland Street between Osceola & Myrtle; g) Community Redevelopment Project Public Improvements - public improvements identified in Master Plan of Development: 1) Bayfront Park; 2) Osceola Place; 3) Botanical Garden; 4) Civic Space Project; 5) the Grand Steps; 6) Cleveland Streetscape Improvements; 7) Cleveland Square; 8) Memorial Causeway Bridge Pier; 9) Osceola Streetscape Improvements; 10) parking garage open to public on block surrounded by Ft. Harrison, Drew, Osceola, & Cleveland; 11) parking garage open to public on City Hall parcel; 12) parking garage open to public on Station Square Parking Lot Parcel; 13) Station Square Park improvements; & 14) any other public improvements shown on the Master Plan of Development, except for conservatory; h) Fort Harrison Parcel - any City-owned land in block surrounded by Fort Harrison, Drew, Cleveland, & Osceola; i) Harborview Parcel - parcel of land on which existing Harborview Center structure is located & area immediately north & west of Harborview structure along Osceola Street as depicted in Master Plan of Development; j) Library Parcel - 40,000 square feet of useable floor area on ground floor of new Main Library site as depicted in Master Plan of Development; k) Master Plan of Development - concept plan prepared by de Guardiola/ Renaissance - Exhibit 2 (of the Term Sheet); l) Memorial Causeway Bridge Pier Parcel - portion of existing Memorial Causeway bridge depicted in Master Plan of Development for redevelopment as a pier with kiosks, a restaurant, & marina; m) New Main Library - newly constructed library with 40,000 square feet of restaurant & retail floor area at ground level, at least 55,000 square feet of library floor space, & Civic Space Project within building’s footprint southwest of Drew & Osceola intersection as depicted in Master Plan of Development; n) Osceola Place - public park in Master Plan of Development located on top of Clearwater Bluff between Harborview & Library Parcels; o) Priority Public Improvements - first, second, & third priority public improvements; p) Stage 1 - at a minimum, elements of private development depicted in Master Plan of Development within area bounded by the Bayfront, Cleveland, Fort Harrison, & Drew; q) Stage 2:- at a minimum, private development depicted in Master Plan of Development within area bounded on the west by the Bayfront, on the south by Calvary Baptist Church property south of Pierce Street, on the east by Osceola, & on the north by Calvary Baptist Church; r) Station Square Parking Lot Parcel - municipally owned parking lot east of Station Square Park on Cleveland Street’s north side; & s) Tavern on the Bluff Parcel - right to construct a restaurant in Osceola Place with footprint of not more than 7,500 square feet in location depicted in Master Plan of Development, together with right to provide outdoor café seating on common areas adjacent to restaurant, & public amenities such as public restrooms & other similar conveniences. According to current negotiations, the Term Sheet states: 1) definitions; 2) City shall lease Fort Harrison Parcel, Tavern on the Bluff Parcel, Harborview Parcel, City Hall Parcel, Library Parcel, Memorial Causeway Bridge Pier Parcel, & Station Square Parking Lot Parcel to de Guardiola/ Renaissance for a term of 99 years at a rent of $1/year; 3) Commencing in 50th year of lease term for the City lands, de Guardiola/ Renaissance shall pay additional rent to the City in an amount equal to 7.5% of the assessed value of the land for the Fort Harrison Parcel, Tavern on the Bluff Parcel, Harborview Parcel, City Hall Parcel, Library Parcel, Memorial Causeway Bridge Pier Parcel, & Station Square Parking Lot Parcel. Where any parcel leased to de Guardiola/ Renaissance is used jointly for public & private purposes, de Guardiola/ Renaissance shall pay rent only for that portion of the parcel which is private; 4) at City option, terms of the leases may be for 60 years, provided upon the end of the leases’ term, the City shall pay de Guardiola/ Renaissance the fair market value of private improvements then located on the leased parcels, assuming a 40-year useful life. Should the City select the 60-year term, additional rent provided for in paragraph 7, shall commence in the 31st year; 5) de Guardiola/ Renaissance shall construct the New Main Library for the City and shall be reimbursed by the City for all hard and soft construction costs for those portions of the building which are not part of the Civic Space Project or the 40,000 square-feet of retail & restaurant floor area. De Guardiola/ Renaissance shall engage the design services of the City’s selected architect for the new main library project; 6) de Guardiola/ Renaissance shall ensure that common areas of the Fort Harrison Parcel, Tavern on the Bluff Parcel, Harborview Parcel, City Hall Parcel, Library Parcel, Memorial Causeway Bridge Pier Parcel, & Station Square Parking Lot Parcel are open to the public at all times, subject to reasonable security, operational, & maintenance considerations; 7) de Guardiola/ Renaissance shall be responsible for operation & maintenance of common areas depicted in the Master Plan of Development which are west of Osceola except for: a) set-up & clean-up after events promoted in common areas by public or private entities other than de Guardiola/ Renaissance; b) costs associated with any special gardens involving unique or rare plant material which may be included in the botanical garden; c) the conservatory; and d) any public improvements not depicted in the Master Plan of Development. De Guardiola/ Renaissance shall be entitled to a credit against its rent obligations for costs incurred by de Guardiola/ Renaissance for operation & maintenance of common areas west of Osceola. In the event that annual costs for operations & maintenance exceeds de Guardiola/ Renaissance’s annual rent obligations, excess credit shall be carried forward to future years & 7.5% interest shall be imputed to such carry forward. In the event that excess rent credit carried forward exceeds de Guardiola/ Renaissance’s total rent obligations, the City shall have no obligation to repay de Guardiola/ Renaissance for such unused credits; 8) de Guardiola/ Renaissance shall provide sufficient parking spaces in the development of the Station Square parking Lot Parcel to replace the number of existing surface parking spaces; 9) de Guardiola/ Renaissance shall, at a minimum, carry out, or cause to be carried out development of public & private improvements depicted in the Master Plan of Development, including a multiplex cinema, not less than 1,200 residential units, the Tavern on the Bluff, renovation of street retail in the 400 block of Cleveland, all required public parking, & all Community Redevelopment Project Public Improvements; 10) de Guardiola/ Renaissance shall file application for all required permits & approvals for Stage 1 within 12 months of execution date of leases with the City for Tavern on the Bluff Parcel, Harborview Parcel, City Hall Parcel, Library Parcel, Memorial Causeway Bridge Pier Parcel, & Station Square Parking Lot Parcel. De Guardiola/ Renaissance shall commence construction within 6 months of the issuance of all permits or approvals required for construction of Stage 1, subject only to conditions of force majeure; 11) de Guardiola/ Renaissance’s obligation to construct Public Improvements is subject to the issuance of permits from local, State, & Federal governments; 12) de Guardiola/ Renaissance’s obligation to construct the Cleveland Streetscape improvements shall be subject to limitations imposed by FDOT (Florida Department of Transportation) until Cleveland Street has been de-designated as SR 60; 13) de Guardiola/ Renaissance shall commence construction of Stage 2 as soon as practicable after de Guardiola/ Renaissance takes possession of all private property within Stage 2 boundaries; 14) de Guardiola/ Renaissance shall be responsible for providing adequate parking to serve development contemplated in the Master Plan of Development including the new Main Library; 15) City shall use its best efforts to secure the de-designation of Cleveland Street as SR 60 as soon as possible; 16) City shall reimburse de Guardiola/ Renaissance for public improvements to the Bayfront which are constructed by de Guardiola/ Renaissance with the $2-million of Penny for Pinellas funds previously designated for the Bayfront Park; 17) City shall reimburse de Guardiola/ Renaissance for public improvements to new Main Library, other than Civic Space project, with funds previously designated for design & construction for the new Main Library; 18) CRA shall reimburse de Guardiola/ Renaissance for Community Redevelopment Project Public Improvements with Additional Tax Increment, subject to conditions: a) CRA shall not reimburse de Guardiola/ Renaissance for any public improvements with Additional Tax Increment until Additional Tax Increment is used or committed for Priority Public Improvements which reimbursement shall be in priority order: 1) Civic Space Project; 2) Cleveland Streetscape Improvements; and 3) Bayfront Park Improvements; b) as a condition precedent to reimbursement, de Guardiola/ Renaissance shall provide City with a sworn statement of costs incurred by de Guardiola/ Renaissance in an amount equal to any reimbursement requested by de Guardiola/ Renaissance; c) except for Priority Public Improvements, de Guardiola/ Renaissance shall have the discretion to prioritize the construction of Community Redevelopment Project Public Improvements to coordinate public & private improvements provided for in the Master Plan of Development in a logical & efficient manner; and d) compliance with all requirements under Part III, Chapter 163 Florida Statute (1999); 19) City shall grant de Guardiola/ Renaissance a license to use the Amphitheater: a) for presentation of 60 commercial entertainment productions on at least 60 days and b) first right of refusal for any additional dates not used by the City or other public or non-profit entity for the presentation of additional commercial entertainment productions; 20) City shall provide de Guardiola/ Renaissance with taxable industrial development revenue bond financing for revenues guaranteed or otherwise secured by de Guardiola/ Renaissance up to a maximum $25-million; 21) CRA shall provide de Guardiola/ Renaissance with tax free tax increment bond financing based on the Additional Tax Increment; 22) when requested by de Guardiola/ Renaissance, City & CRA shall use their best efforts to assist de Guardiola/ Renaissance in regard to required permits, approvals, grants, or other assistance from other agencies of government; and 23) City shall undertake all necessary & appropriate steps to establish a special assessment or other revenue sources to pay for the Amphitheater building & the Conservatory & any other public improvements which would enhance the success of the development proposed in the Master Plan of Development. Charles Siemon, of Siemon & Larsen, said the financial risk has been allocated to the developer, de Guardiola/ Renaissance, who will reap the potential reward. Private development will include 1,200 residential units, a multiplex theater anchor, restaurants, street retail, a hotel, 20,000 square feet of meeting rooms and all required parking. The Cleveland Street streetscape will be improved between East and Osceola. City Hall activities will be relocated to the top floor of the new library and the chambers will be available for meeting space. The bayfront will include a bluff top park, waterfront promenade, a new amphitheater with terraced seating, and botanical gardens. De Guardiola/Renaissance has requested the City grant them 60 days annually to produce commercial entertainment at the amphitheater. To maintain consistent quality, de Guardiola/Renaissance also has requested the first right of refusal on other days except for public or non-profit presentations. The "Grand Steps,” west of Osceola, will feature a unique place of assembly. A ceremonial square will top the stairs. Osceola Place will feature a 7,500 square foot Tavern on the Bluff and common areas. The current Memorial Causeway Bridge will be replaced by a public pier with marina slips and an over water restaurant. Surface parking at Station Square Park will be replaced by retail, residential, and a parking garage to reenergize this part of Cleveland Street. Mr. Siemon said the library building will also feature retail and restaurant functions on the first floor. The Harborview Center will be redeveloped or rebuilt as a multiplex movie theater with retail and restaurants. The hotel will be developed during Phase 2. Mr. Siemon reviewed the Downtown Development Term Sheet. He said de Guardiola/Renaissance has requested the City actively work to remove the SR 60 designation from Cleveland Street. The basic terms of a 99-year lease will require referendum approval of an amendment to the City Charter. The City will invest its developed land for a lease rate of $1/year and de Guardiola/Renaissance will match that investment with the acquisition of private land and development worth between $250- and $300-million. Starting in the 51st year, de Guardiola/Renaissance has agreed to pay additional rent based on a formula. De Guardiola/Renaissance has agreed to operate and maintain the common areas west of Osceola Street, except for the clean up after events by other parties. De Guardiola/Renaissance will be credited operation and maintenance costs against future rents. He said the City has an interest in the bayfront being well managed but has no source of revenue to cover those costs. Mr. Siemon said the City will commit Penny for Pinellas funds previously earmarked for the bayfront and new Main Library. De Guardiola/Renaissance will build as much library as the City can afford. De Guardiola/Renaissance has requested the CRA (Community Redevelopment Agency) reimburse them for public improvements from the additional tax increment created by the redevelopment projects. Without redevelopment, the tax increment will not increase. The City will use its borrowing power to provide a source of revenue without City security or guarantee. De Guardiola/Renaissance also will seek CRA authority to bond the tax increment. The City will seek all funding available for public improvements and has pledged to help the developer obtain permits. He said the diversity of the botanical gardens will depend on public participation in the funding and maintenance. Mr. Siemon reported de Guardiola/Renaissance has agreed to obtain all necessary permits within 1 year of the agreement and begin construction within 6 months of obtaining necessary permits. The first projects to be constructed are the improvements to the Cleveland Street streetscape, the Bayfront Park, and the civic space. De Guardiola/Renaissance will construct all public improvements listed in the master plan, including the new Main Library, subject to the availability of funds. The City’s selected library architect will be used for the Library. De Guardiola/Renaissance has no legal obligation to build the proposed conservatory. All common areas will be open to the public. The project will provide adequate parking. Mr. Siemon said de Guardiola/Renaissance had offered a 60-year buyout option if a 99-year lease is not approved. He said maintenance and operation costs most likely will be greater than any future rents owed. The tax increment stops in 30 years. He said the agreement will create an operational legacy for the future. In response to a question, Assistant City Manager/CRA Executive Director Bob Keller said the CRA staff supports the proposed redevelopment project. No new taxes are proposed. Mr. Siemon said more taxes will be created by the additional value of the properties. The Bayfront Park will extend from Drew Street to south of Cleveland Street. City programming of the amphitheater has first choice of dates. De Guardiola/Renaissance wants to sign off on other events to provide consistent quality. It was noted de Guardiola/Renaissance will charge admission to amphitheater events. Concern was expressed fencing necessary to limit access would be unsightly. The City Manager said the Commission will need to approve any fencing. It was noted the baseline increment tax rate will be established on July 12, 2000, if the referendum is approved. Mr. Siemon said previous commitments of the tax to IMRglobal will not be affected. In response to a question, Mr. Siemon said if de Guardiola/Renaissance fails, the transactional documents will include measures to control the project’s fate in case of failure. Related language is common is such contracts. Concern was expressed de Guardiola/Renaissance had not furnished the City with a financial statement and that the developer plans to abandon the project if the referendum items fail. It was felt the developer will limit its entertainment offerings to weekends. The City Manager said staff intends to obligate dates not currently used. The City has first right of choice. The City Attorney said the City can act as a conduit for the developer to obtain industrial bonds without liability. Mr. Siemon said the City will apply for available grants to cover related costs. It was noted the size of the new Main Library has been reduced from a proposed 112,000 square feet to 55,000 square feet. Mr. Siemon said de Guardiola/Renaissance had heeded community wishes to include the new Main Library as a viable part of downtown redevelopment. The library could be larger if additional funding is appropriated. The City Manager said an additional $4-million will be needed to construct 50,000 square feet of unimproved space at the new civic building. The space will provide room for expansion. Concern was expressed the City had increased the lease rate for Clearwater Country Club but now proposes to charge this developer only $1/year. It was felt too many unknowns exist. Mr. Siemon said the subject bluff parcels are already developed. The Tavern on the Bluff and fishing pier are the only new development proposed. Most of the bayfront now is covered by asphalt and concrete. Parking for the Harborview Center will be built across Osceola. It was felt botanical garden maintenance costs could be significant. It was noted the referendum is the beginning of the process as it grants permission to the Commission to move forward. Mr. Siemon estimated negotiations of related contracts will take up to 5 months to complete due to their complexity. A vehicle for citizen input was recommended. Mr. Siemon said more public workshops and public hearings are planned. In response to a question, he said the contract will have conditions requiring the developer demonstrate control of the Lee Arnold and Calvary Baptist church properties. In response to a concern, Mr. Siemon said he was satisfied parking will be sufficient and available for public and private uses. Operational schedules for the parking garage, along with cost and design details, will be included in the final document. In response to a question, Mr. Siemon said amphitheater scheduling will be done approximately 2 years out. He said the redevelopment will create a good address and attract further development. It was stated the City is being asked to give up a little to get a lot. Mr. Siemon said the City was deploying its property for effective public use. He said if downtown is not redeveloped, residential ad valorem obligations will increase significantly as will downtown code and law enforcement problems. He said downtown improvements are needed. A $7-million City investment in a parking garage would provide parking but no attractions. Coachman Park currently attracts few people. Mr. Siemon estimated a 4,400-seat multiplex movie theater would attract at least 65,000 to 80,000 people per month. He said tourists list a great downtown as an asset when choosing a destination. Most current users of the Harborview Center attend meetings and leave without walking through the downtown. Mr. Siemon said the tax increment is only a portion of taxes collected. Increased value will increase support of agencies such as the School Board and Juvenile Welfare Board. He said many corporate relocation decisions are based on quality of life issues. People like vibrant downtowns. He said Clearwater’s bayfront is an underused asset. The City Attorney said the CRA will need to request County approval of plans to disburse the increment tax. First Reading Ord. #6559-00 - Calling for Special Election; submitting to city electors a proposed amendment to the City Charter to add Subsection 2.01(d)(8) for purpose of authorizing development and redevelopment of certain municipally owned real property located in downtown, leasing of certain properties for maximum lease term of 99 years, and construction of certain improvements in that area west of Osceola Avenue between Drew Street & Pierce Street lying below the 28' mean sea level elevation; providing for a referendum election The City Attorney said the ordinance creates an exception to the City charter to allow a 99-year lease of seven parcels and to make improvements below the 28-foot elevation of the bluff. She reviewed the ballot question. In response to a question, she said the ordinance has exhibits: 1) Downtown Planned Development and 2) a map identifying the seven parcels. Res. #00-22 - Submitting to city electors a referendum question authorizing issuance of revenue bonds for constructing and furnishing the new Main Library, constructing future library, civic or municipal space; providing for referendum election The City Attorney said the bonds will be used for construction of the library and expansion space. The tax increment will be used to pay for the civic space. In response to a question, Financial Services Administrator reviewed funds available for the library. The City Manager said the City needs an additional $4-million to cover costs related to civic space. The City Attorney said the foyer is included in the square footage of the library. The building will feature 10,000 square feet of meeting space plus the chamber, which will seat 155. Commission Discussion Items Downtown Development Term Sheet – Discussed with referendum issues. Other Commission Action Hooper recommended staff discourage skateboarders whose activities are damaging the short walls at Pier 60 Park. Hooper said as the light is a continuous green at the exit of the Memorial Causeway Bridge onto Pierce, the “No Turn On Red” sign needs to be removed. Adjourn The meeting adjourned at 1:21 p.m.