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08/16/1993 COMMUNITY REDEVELOPMENT AGENCY August 16, 1993 The City Commission, meeting as the Community Redevelopment Agency, met in regular session at City Hall, Monday, August 16, 1993 at 10:15 A.M., with the following members present: Arthur X. Deegan, II Chairperson Rita Garvey Vice-Chairperson Richard Fitzgerald Trustee Sue Berfield Trustee Fred Thomas Trustee Absent: Phil Henderson Ex-officio Trustee Lillian Trickel Ex-officio Trustee Also Present were: Michael J. Wright Executive Director Milton A. Galbraith, Jr. Attorney Cynthia E. Goudeau Secretary ITEM II. - Minutes: Trustee Garvey pointed out that on page 9 of the August 2 minutes, the word Agents needed to be deleted and Trustee Fitzgerald pointed out that on page 3, the fourth paragraph, there was an extra word. Trustee Fitzgerald moved to approve the minutes of the August 2, 1993, meeting as amended. The motion was duly seconded and carried unanimously. Trustee Thomas moved to approve the minutes of the Screening Committee Ft. Lauderdale trip as submitted. The motion was duly seconded and carried unanimously. ITEM III. - Unfinished Business a) Executive Director Search The Chairperson requested the CRA arrive at a consensus choice and suggested each member bring forward their first choice and why. He stated all references have not been checked and there needs to be discussion regarding the salary to be offered. Trustee Fitzgerald stated his first choice was Yvonne Magee from Ft. Lauderdale, stating she was highly professional, extremely knowledgeable regarding downtown and redeveloping and had a good knowledge regarding Florida. He stated he had a close second choice but did not care to divulge it at this time. Trustee Berfield indicated her first choice was also Ms. Magee stating she was not only experienced in working with government but also had real estate and family services experience. Trustee Thomas indicated his first choice was Peter Gozza from Pinellas Park, stating he had good technical skills, initiative in working out issues and was focusing on the Canadian market. He stated his negotiating skills and ability to put divergent groups together were an asset. He stated Ms. Magee was his second choice only in that she did not have as much negotiation skill. He stated all four were outstanding candidates and closely competent. Trustee Garvey indicated Ms. Magee and Alfred Holzman were her top two choices. Chairperson Deegan stated he agreed with Trustee Thomas regarding the caliber of all four candidates. He stated however he would tip the scales to Ms. Magee's favor stating he was impressed with her writing skills, administrative skills, program development and also found her to be personable and professional. She had experience in all areas. Chairperson Deegan requested input from the Executive Director and the Attorney. Mr. Wright indicated he had spoken to the City Manager of Ft. Lauderdale regarding Mr. Holzman and that Ms. Magee would have been one of his top two choices. The Attorney indicated he had only been able to interview two of the candidates and if the other two were as competent, there was no bad decision to be made. Trustee Thomas moved that Yvonne Magee be the CRA's first choice with whom to negotiate a contract for the CRA Executive Director. The motion was duly seconded and carried unanimously. Trustee Thomas suggested the Chairperson handle the negotiations. Concerns were expressed regarding government in the Sunshine. The Attorney reiterated the Attorney General's opinion that this would be subject to the Sunshine Law. Trustee Garvey pointed out even if there were telephone conversations, there would need to be some record. The Attorney reiterated there would need to be a notice to the public and an opportunity for the public to listen in on the negotiations. Trustee Thomas moved that the Chairperson handle the negotiations. The motion was duly seconded. Chairperson Deegan indicated he would write the letter to Ms. Magee making the offer to her and her response would be available. The Attorney indicated this would be satisfactory. Trustee Thomas requested that in the negotiations there be an incentive based on accomplishment. Upon the vote being taken, the motion that the Chairperson negotiate with Ms. Magee carried unanimously. The Chairperson questioned what should be offered stating the job had been advertised with a salary of $50,000 to $70,000 and Ms. Magee is currently making $65,000. Trustee Thomas stated that the cost of living in Ft. Lauderdale is higher than that in Clearwater and suggested a base salary of $55,000 be offered but that a significant bonus of $10,000 based upon accomplishing goals also be available. The Chairperson questioned if there were any disagreement with this approach and there was none. Trustee Fitzgerald requested a clarification regarding the $10,000 bonus, asking if that was annual. Trustee Thomas indicated it was and there would be measurable goals for each year. He stated he would like a three year contract and that the Chairperson format what is to be accomplished. The Chairperson indicated the goals are not a part of the original agreement and that is to be negotiated with the entire CRA each year. Trustee Berfield questioned if it was $55,000 plus $10,000 and Trustee Thomas indicated that they may want to include a cost of living increase. Trustee Garvey advocated no cost of living increase with the salary to be based on the evaluation each year. She questioned exactly what was the $10,000 bonus, whether or not it was all or nothing. It was indicated that the bonus would be from $0 to $10,000. Trustee Berfield questioned what benefits would be available. It was indicated that the benefits would be those SAMP employees. H. M. Laursen, Human Resources Director, indicated that a standard benefit of those employees not a part of the pension plan was for a 6% contribution by the City to the ICMA deferred compensation program. The Chairperson indicated he would get with the Human Resources Director to assure that a comparable benefits package is offered. In response to a question from the Chairperson, consensus of the CRA was that relocation expenses would also be offered. The Executive Director indicated they may need to address club dues and it was indicated this would be addressed if it were requested. The Chairperson indicated another important issue had to do with whether or not a staff person would be provided. It was agreed that an administrative or executive secretary would be provided. The Executive Director questioned whether or not this would be a city employee. It was indicated they would be a CRA employee. A question was raised regarding under what plan the current economic development secretary worked and it was indicated she was under the SAMP plan. A question was raised regarding how a city employee taking this position would be affected. Mr. Laursen indicated that we had not had this situation before. It was indicated this would be addressed in the future but that the CRA Executive Director is to understand they will have a staff person. The Chairperson requested determination of a second choice should negotiations fail with Ms. Magee. Trustee Thomas indicated he still supported Mr. Gozza. Trustee Garvey stated she supported Mr. Holzman. Trustee Fitzgerald stated he would suggest Dorothy Stephenson from New Orleans as she has the appropriate background, she comes across well, is a very articulate professional person. He stated her accomplishments in New Orleans were significant. He stated that while she had no Florida orientation, he felt she would pick this up quickly. Trustee Berfield agreed with Trustee Fitzgerald regarding Ms. Stephenson stating her area in New Orleans currently dealt with waterfront property. Chairperson Deegan stated he agreed regarding Ms. Stephenson and stated he felt she would be a quick study and he was impressed with the projects in which she had been involved. Both Trustees Garvey and Thomas agreed they could support Ms. Stephenson. Trustee Berfield moved that in case an agreement could not be reached with Ms. Magee, that Dorothy Stephenson would be the back up candidate for CRA Executive Director. The motion was duly seconded and carried unanimously. b) Community Development Corporation (CDC) Status Report The Executive Director indicated he had received comments from Chairperson Deegan regarding the proposed scope and questioned if there were any other thoughts regarding this proposal. Trustee Garvey questioned whether or not this should wait for the hiring of the Executive Director and it was the consensus that this was not necessary. Chairperson Deegan emphasized that staff is currently working on essentially boiler plate materials. He had suggested several areas to be improved. The Executive Director requested that any other comments be forwarded to him as soon as possible. c) (Cont. from 8/2/93) Amended Budget for FY 1992-93 The revenue budget has been amended to equal actual tax increment revenues received and to increase the estimated interest earnings due to a larger than anticipated cash balance during the year. The expenditure budget has been modified to delete the budget for "transfers for capital projects", and instead this amount now shows at the bottom as "excess of revenues over expenditures". Unless this excess is appropriated to a "specific redevelopment project pursuant to an approved community redevelopment plan" between now and September 30, 1993, the actual balance, including funds carried forward from the prior year, will be transferred into the debt service fund and restricted for use in retiring existing CRA debt. Dan Deignan, City Finance Director, indicated the amended budget had been modified pursuant to recommendations at the August 2 meeting. He stated miscellaneous expenditures now show at $13,500, that the professional services for the East End project had been reduced and the transfer now shows funding for redevelopment projects. Chairperson Deegan questioned how much detail would be needed for the funding for redevelopment projects. The Executive Director indicated that in order to do this, they may have to identify projects per the existing plan. It was indicated that a list of potential projects would be available for CRA review at the first meeting in September. Trustee Thomas moved to approved the amended budget for fiscal year 1992/93. The motion was duly seconded and carried unanimously. d) Clarification of Budget Process The secretary requested clarification of direction provided at the August 2 meeting stating that it had been requested that a column be added for the CRA in the City budget ad. It was indicated that this was causing difficulties and the Budget Director was requesting that a separate ad be allowed for CRA. Consensus of the CRA was to allow this. The secretary also requested clarification regarding the dates and time for the budget public hearings indicating that regular CRA meetings are now on the Mondays. It was her understanding that the public hearings on the budget had been set for September 2 and 16 which were Thursday night meetings for the City Commission. It was stated that it was the purpose to have the meetings on Thursday night in order to have public input. It was the consensus to have the CRA meeting begin at 5:30 p.m. on those dates in order to allow public comment on the budget. e) Sale of CRA property in conjunction with Sun Bank (Atrium) Building It was stated that this would come back to the CRA for final resolution at their August 30 meeting. A draft of the proposal has been sent to the CRA trustees. Trustee Thomas stated that in paragraph 1, the purchaser should pay all closing costs. Consensus was to make this change. Trustee Garvey questioned the provision regarding air space. Mr. Justice, representing the potential purchasers, stated this was to allow them to place a roof on the fourth floor of the parking garage. Consensus of the CRA was that the provision regarding air space was appropriate. Consensus was the joint use easement agreement was appropriate. Regarding paragraph 2, Trustee Fitzgerald expressed concerns regarding the language that they would be obligated to hold up to 150 parking spaces on the Bilgore site. It was felt the preferable language would be to offer 150 spaces. Mr. Justice indicated their purpose was to assure the spaces needed would be available on a month to month basis and that a month notice would be needed in order to provide the spaces. Trustee Thomas expressed that this was a difficult issue as the CRA would not be into the business of leasing one space at a time. He felt that once the parking lot is constructed, the purchasers should be responsible for leasing 150 spaces. Further discussion ensued regarding this commitment and Mr. Justice indicated it would not be possible for him to commit to leasing the entire 150 spaces. Chairperson Deegan emphasized today is for reaction to the proposal. Final resolution will come back on August 30. He indicated it should be in the agreement that upon notification by the buyer of the need of parking, the seller will make it available. Discussion ensued regarding whether or not the term of the lease on the Bilgore property would be five years. Trustee Thomas expressed there would be a problem for the buyer if alternative parking could not be found and they would be left without the parking spaces at the end of the five year term. Chairperson Deegan emphasized that it is not the responsibility of the CRA to provide the comparable parking however, they may help in identifying and obtaining it. Consensus of the CRA was to remove the phrase "renewable for two consecutive five year terms". Mr. Justice agreed that a buyer's concern would be that they would have 150 spaces but they would be gone in five years. Chairperson Deegan stated that paragraph 2 needed to be reworked and that the buyer will be looking for up to 150 spaces made available on the Bilgore site five years from the date of closing. The Attorney indicated the parking lot would not be built until the purchasers give notice to proceed. The Executive Director stated the CRA would need 90 to 120 days to bid and construct the parking lot. It was the consensus to include a 120 day provision to provide the parking. It was also the consensus to add a contingency that would not hold the CRA responsible should such things as weather prohibit meeting the 120 day time frame. In paragraph 3, regarding the parking garage purchase, the purchasers had proposed a price of $25,000 for the option to purchase the parking garage. Trustee Thomas recommended $200,000. It was suggested the $200,000 could be credited against the purchase price. Mr. Justice indicated he had spoken to the buyers and they had agreed to increase the option price to $50,000. Trustee Thomas stated the original cash outlay proposed by the purchasers was $430,000 for the Bilgore property. He felt strongly the price of the option should be $200,000. Trustee Fitzgerald agreed stating there would be a cash outlay in order to build the parking lot on Bilgore. Mr. Justice questioned what price had been mentioned for outright purchase of the Bilgore property and the Chairperson indicated $433,000 was the only figure he had heard mentioned. The term being renewable for two consecutive five year terms is to be deleted. Chairperson Deegan stated the CRA would be willing to extend if there is no comparable parking identified within the first five year time frame. It was indicated the purchase price would be an appraised price with a CPI increase established by the National Urban Index. It was also indicated the interest rate would be prime minus one at the time of the option being exercised and the building purchased. This figure will be adjusted on an annual basis. Discussion ensued regarding down payment on the parking garage and it was indicated that if the purchasers agree to the $200,000 option, that would simply be transferred into the down payment at the time of exercise of the option. Chairperson Deegan disagreed with a right of first refusal for lease of parking spaces on the top two floors of the parking garage stating that most often these are used by shoppers. He was concerned regarding taking these spaces away from being available to the public. Trustee Thomas recommended giving an option on up to a specific number. Mr. Justice indicated they had been told 42 spaces are leased on a monthly basis and he indicated they would need a minimum of 100. Chairperson Deegan stated he would be willing to give a right of first refusal of up to a specific number and it was the consensus of the CRA to put in 100 spaces. Trustee Thomas questioned the proposal that the purchase of the garage be a five year balloon with a 20 year amortization. It was indicated the purchasers had not requested that and therefore, it was not in the agreement. The Executive Director questioned who would pay taxes, including property and sales taxes. It was the consensus that the CRA would pay property taxes on Bilgore, if any, and any sales taxes would be paid by the purchasers. Regarding paragraph 4, regarding the police station, again it was requested the 2 consecutive five year terms be deleted. Chairperson Deegan expressed concern that it be clear that Charter requirements be met and it was the consensus to add "unless the City receives a higher offer which the buyer is unwilling to match". Paragraph 5, regarding the spaces surrounding the parking garage, was discussed. A question was asked regarding whether or not there were 38 or 39 spaces. The Executive Director recommended the language be changed to "as indicated on the survey". Consensus was to do this. Concern was expressed that this would cut off access to the driveway and this would need to be addressed. Mr. Justice indicated that if the purchasers exercise the option to buy the parking garage, they would then own those spaces. Concern was expressed that these spaces would need to be available to the police department. Mr. Justice indicated his concern was that there would be no legal access to the spaces and he would like for it to be understood that an easement will be there when they exercise the option to buy the garage. The Executive Director indicated the concern was that the easement cuts off part of the police department property. Trustee Thomas questioned if Mr. Justice was saying that if the option is exercised, that the purchasers can then use those spaces. Mr. Justice indicated he is saying it is a concern that they not be denied access by not having an easement. A concern was expressed that an easement would devalue the property. Trustee Berfield questioned whether an easement could be granted with the acceptance of a right of first refusal and whether or not they could legally block someone's access. Mr. Justice indicated he is asking the City to recognize that they have spaces that they will not be able to access. The Chairperson indicated there were several options and he recommended going with the City Attorney's recommendation. It was also requested that the term of 99 years be removed. Mr. Justice indicated he would get with the Executive Director and the Attorney and come back on August 30 in order to conclude this transaction. Trustee Garvey questioned the term for the right of first refusal on the police department property. It was indicated it would last as long as the purchasers owned the Sun Bank (Atrium) Building. In paragraph 6, Chairperson Deegan requested that it be researched again with the title company regarding who has claims on the alley. Concerns were expressed regarding harm to the businesses on Cleveland that use the alley. It was the consensus to delete the last two sentences which had been added. No changes were requested to paragraphs 7, 8, 9 and 10. It was stated this item would be brought for final action at the August 30, 1993 CRA meeting. ITEM IV. - New Business - None. ITEM V. - Executive Director Verbal Reports a) Joint Meeting with DDB The secretary stated that the joint meeting with the DDB had been canceled and is to be rescheduled. The Chairperson suggested that the scheduling of this joint meeting wait for the CRA Executive Director and the city wide Economic Development Director. It was suggested the CRA could meet with the DDB once the Executive Director is hired. Trustee Thomas indicated that at the last DDB meeting, they are wanting to develop a budget, hire people, etc. and they were asked to wait to make these decisions until they meet with the CRA. Chairperson Deegan indicated the recommended role is supposed to be put on their agenda. It was the consensus to wait to schedule a joint meeting until the CRA Executive Director is hired. ITEM VI. - Other Trustee Business Trustee Garvey stated she wished to throw out for people to start thinking about whether or not the CRA should use some of its funds as an incentive for purchase of the Oaks of Clearwater in order to provide housing in downtown area. The Executive Director indicated this would be discussed at an upcoming City Commission meeting. Chairperson Deegan questioned whether or not the Oaks facility was in the enterprise zone. Chairperson Deegan requested that the secretary add to the agenda tracking list the following items: 1) Hiring Executive Director & Administrative Assistant; 2) Community Development Corporation (CDC) organization; 3) CDC Planning Grant; 4) Parking on Bilgore property; 5) Budget for FY93/94; 6) Appropriating funds before year end (project list); 7) a Main Street program; 8) Quarterly meetings with the DDB; and 9) Role of the DDB. Chairperson Deegan also reported that they had received a check for $1,000 in response to an application of a grant from the Florida Power Corporation. ITEM VII. - Adjournment: The meeting adjourned at 1:40 P.M.