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06/06/1996 COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING CITY OF CLEARWATER June 06, 1996 Present: Rita Garvey Chair/CRA Trustee J. B. Johnson CRA Trustee Robert Clark CRA Trustee Ed Hooper CRA Trustee Karen Seel CRA Trustee Kathy S. Rice Interim Director/Deputy City Manager Elizabeth M. Deptula City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter Absent: Elise Winters Ex-Officio Trustee David Stone Ex-Officio Trustee The Chair called the meeting to order at 5:30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 - Res. #96-01 - Agreeing in concept to initiate an amendment to the downtown plan and approve in concept a plan to facilitate the relocation of a Winn-Dixie Grocer Store to a downtown Clearwater location Interim Director/Deputy City Manager Kathy Rice said CNHS (Clearwater Neighborhood Housing Services) will be the developer of the Winn-Dixie project. She indicated the project will retain 80 jobs and add 160 jobs in the downtown area. She displayed a copy of the proposed site plan. The CRA is asked to lend CNHS $900,000 at 3% interest for 20 years. The CRA will borrow the money from the City at 6% interest. The additional 3% interest will be paid to the City through the tax increment. She reported an additional $80,000 of work is needed for the infrastructure. The resolution states what will happen if everything comes into place. It was noted the presented numbers differ greatly from ones presented June 3, 1996. Ms. Rice said if the CRA pays for the $80,000 in infrastructure, an initial deficit will occur. The deficit will be made up over the 20 years. Trustee Clark questioned if the $80,000 will be returned to the City over time. The City Attorney said the project will not repay the $80,000. Ms. Rice said the $80,000 could be repaid from the increment but not the project. She noted the resolution only addresses the $900,000 loan from the CRA. The City Commission will reach a decision regarding the $80,000 infrastructure costs in the future. The Chair noted the CRA will lend the money to CNHS. CNHS and the CRA will pay back the loan plus interest to the City. Trustee Seal questioned how the loan will be guaranteed if the store is not successful. Mr. Ferri said they will collateralize the land, not the building. If the grocery store fails, Winn-Dixie will continue their lease payment. A sub-lease would be possible. Trustee Seal noted the lease is 20 years. Mr. Ferri said Winn-Dixie is making a 20 year commitment. Trustee Clark moved to approve in concept to initiate an amendment to the downtown plan and approve in concept a plan to facilitate the relocation of a Winn-Dixie Grocery Store to a downtown Clearwater location. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #96-01 and read it by title only. Trustee Clark moved to pass and adopt Resolution #96-01 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Johnson, Clark, Hooper, Seel and Garvey "Nays": None. ITEM #3 - Adjournment The meeting adjourned at 5:42 a.m. Chair Community Redevelopment Agency  Attest:   Board Reporter