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12/15/1988 COMMUNITY REDEVELOPMENT AGENCY December 15, 1988 The City Commission met as the Community Redevelopment Agency at the City Hall, Thursday, December 15, 1988, at 6:15 P.M., with the following members present: Rita Garvey Mayor-Commissioner/Chairperson James Berfield Vice-Mayor/Commissioner Lee Regulski Commissioner Don Winner Commissioner William Nunamaker Commissioner Also Present were: Ron H. Rabun City Manager/Executive Director Joseph R. McFate III Planning & Development Director M. A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk/Secretary ITEM #2 - Minutes. Commissioner Nunamaker moved to approve the minutes of the September 15, 1988 meeting. Motioncarried was duly seconded and unanimously. ITEM #3 - Development Proposals to Construct Housing on the Bilgore Tract. On June 19, 1986, the Community Redevelopment Agency (CRA) approved the purchase of the tract of land known as the Bilgore Tract for $690,000.00. The property is located in the tax increment financing district of downtown Clearwater and is bounded by East Avenue, Pierce Street, Myrtle Avenue, and Park Street. The purpose of the acquisition by the CRA was to (1) provide future development opportunity and furtherance of the Downtown Redevelopment Plan and (2) provide interim off-street parking if necessary. The property is presently used for parking of police vehicles and Lots 6 and 7 at the southeast corner of the site are under a lease which expires on February 28, 1989. On November 14, 1988, the City Commission heard presentations for constructing residential units on the site from two developers, Arlington Capital Corporation and H & G Structures. The Commission requested staff continue to investigate both proposals and to come back with additional information which would help to decide which of the two proposals, if any, should be pursued for final negotiation of an agreement for sale. Arlington Capital Corporation's proposal is to construct a 90-unit apartment complex on the property, to lease the property from the City, selling after a 5-year period with 50 percent of the profits going to the 88 City. They stated that the apartment complex will attract young professionals to the downtown area. An influx of people to live in downtown is needed for a firm econonic base in the area. H & G Structures' proposal is to buy the land and to develop it as condominium units. They stated that while there may not be as many condominium units as rental apartments, the people buying the condominiums will actually be making an investment in the downtown area. Richard Whaley, representing Arlington Capital Corporation, gave a brief review of their proposal and John Gallant, representing H & G Structures, reviewed that proposal. Discussion ensued regarding the two alternatives with concerns being raised regarding the Arlington Capital Corporation's proposal that the City would still be involved with the property at least during the 5-year period before sale, and that with the H & G Structures' project, once the City closes on the sale, the City is no longer a party to the property. In response to a question, Mr. Gallant said he has letters of intent for the purchase of condominium units and he stated, if the City were to choose his project, they will have 50 percent of the units sold by March 1, 1989. Some concern was raised regarding H & G's proposal to buy only that portion of the land on which the structure was placed and Mr. Gallant indicated they would purchase the whole property. Questions were raised regarding the purchase price and it was indicated this would be determined through negotiations. Commissioner moved to authorize staff to negotiate with H & G Structures. The motion was duly seconded and carried unanimously. ITEM 4 - Request for Extension of Lease by Bilgore Groves. Mr. William Donaldson under the name of Bilgore Groves is leasing the building presently located on the Bilgore tract. That lease is currently scheduled to expire February 28, 1989. Mr. Donaldson is requesting a 90-day extension to terminate on May 30, 1989. He operates a citrus fruit mail-order business from this location and his season does not end until May. Discussion ensued regarding the impact this would have on the sale of the property to H & G Structures. It was indicated that the closing was anticipated March 1, 1989. However, after that time, there would still need to be architectural and design work prior to any construction taking place on the property. Discussion ensued regarding whether or not to extend the lease until April 30, 1989, with an option to lease for another 30 days. The City Attorney stated that H & G Structures could purchase the property with the understanding that the lease would be valid until whatever time the Commission sets. It was indicated that there was a 30-day cancellation clause in the present lease. Commissioner Nunamaker moved to extend the lease to Bilgore Groves to April 30, 1989. The motion was duly seconded and carried unanimously. ITEM #5 - Resolution 88-1 Requesting County Commissioners to Cancel and Discharge a Certain Tax Lien Upon Municipal Property Acquired for Public Purposes and to Grant a Tax Exemption. When the City purchased the property known as the CETA property from the County, it was indicated it would not be necessary for the City to request tax exemption. However, the City has 89 received a tax bill for this property and it is now necessary to request that the County discharge the existing tax lien and exempt the property from taxes as long as the CRA continues to own it. Commissioner Regulski moved to adopt Resolution 88-1. The motion was duly seconded and carried unanimously. ITEM #6 - Warranty Deed for Right-of-Way at Park Street and Myrtle Avenue. Commissioner Nunamaker moved to grant the warranty deed to the City of Clearwater. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business. There was no other business. ITEM #8 - Adjournment. The meeting adjourned at 6:52 P.M. 90