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06/18/1998 COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING CITY OF CLEARWATER June 18, 1998 Present: Rita Garvey Chair/CRA Trustee Ed Hooper Vice-Chair/CRA Trustee J. B. Johnson CRA Trustee Robert Clark CRA Trustee Karen Seel CRA Trustee Bob Keller Assistant City Manager/CRA Director Michael J. Roberto City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Chair called the meeting to order at 4:30 p.m. at City Hall. Item #2 - New Business a. Approve the Agreement for Development and Disposition of Property (IMR Global Center Project) between the CRA of the City of Clearwater and Information Management Resources, Inc. (IMR) On January 12, 1998, the CRA Trustees approved negotiations with the Justice Corporation for development of the former annex site. Negotiations ensued and resulted in a proposed Development Agreement. The CRA agrees to sell to IMR the 14.3-acre site, minus 23 feet on the west side of the property. The purchase price, minus the 23 feet of right-of-way is approximately $1.5 million. IMR proposed to build 150,000 to 180,000 square feet of headquarters, research and development, and training facilities in 3 buildings. The Agreement has a 10-year life, subject to earlier termination under certain conditions. The CRA agrees to pay or obtain waivers of certain permit fees related to the development of the project. In addition, the CRA will construct, or cause to be constructed, certain infrastructure improvements. The CRA has certain rights to repurchase part of the property in the event the developer does not commence certain construction within 4 years. IMR can terminate the agreement before expiration by paying the CRA an agreed-upon amount. The City Manager said this has been a long effort resulting in a wonderful partnership and a tremendous opportunity for the community and IMR. CRA Director Bob Keller said the IMR Global Center Project is the biggest business development deal in the history of Clearwater. The development will place the “annex” property back on the tax roll, make that under-utilized site productive, and serve as the eastern anchor to downtown. The development will raise property values for downtown. Based on an independent analysis done by USF (University of South Florida), over the next 20 years, it is estimated $3.2 million in property taxes and other fees will be received for the City, County and school system. A conservative estimate of 1,539 jobs created with wage increases of approximately $51,000,000 will be realized. Through the efforts of the City Commission, City staff, and Senator Jack Latvala, this will be the first major development in the State’s first Brownfields area. The owner of the “Chick mcr06b98 1 06/18/98 Smith” property is rethinking his plans for the site now that this development agreement has been finalized. The City has received a QTI (Qualified Target Incentive) award for this project. In addition to IMR’s award of $3,5000 to $4,500 per job out of a possible $5,000 award, they will receive an additional $2,500 per job extra allowance for locating in a Brownfields area. This is a tremendous tribute to all those involved in the development agreement. He felt the waiver of fees and the environmental costs are a good investment for the City. The City is applying for a Federal grant to offset part of the City’s costs. In addition to being good for the City and downtown, it is good for the City as a government body, illustrating the City can compete with anyone to accomplish great things. Mr. Keller gave special praise to the Economic Development staff, staff in other City departments who made enormous contributions to this project, and the City Manager and City Attorney. He said the City Commission deserves the credit for this project for its direction and encouragement. Al Justice of the Justice Corporation, expressed his appreciation for IMR and the community’s commitment and confidence in this project. He thanked City staff for their cooperation, dedication, blood, sweat, and tears. He noted the City Attorney’s patience and dedication to the objective is greatly appreciated by IMR. He acknowledged the tremendous effort extended by IMR’s law firm. Referring to a site development plan, he said IMR will be ready and able to proceed with construction of a 3-story office building the first week of August 1998. The first phase will be the office building; the second phase will be a 2-story software development, and the third phase a training center. A satellite communication tower, parking area for 703 automobiles, and a myriad of details have been submitted for approval. A 23-foot high sculpture will rest in a reflecting pool near the intersection of Missouri Avenue and Cleveland Street. In response to a question, it was indicated the IMR logo, not a sign, will appear on the tower. In response to a question, Mr. Keller said there are protections in the contract with IMR. The length of the agreement is for 10 years. Benchmark provisions will allow the City the ability to recapture a portion of the property or be compensated for the unused portion should IMR decide to conclude its building plan due to unforeseen circumstances. The legal agreement is designed to protect both the City and IMR. The City Attorney requested the Commission approve the agreement for development and disposition of property between the CRA and IMR in the form provided. Changes made this morning were inadvertently “destroyed” by the computer. Those changes were not substantive and were agreed upon changes. The final version will be ready for signature tomorrow. Trustee Clark moved to approve in substantive form the agreement for development and disposition of property (IMR Global Center project) between the CRA of the City of Clearwater and motioncarried IMR. The was duly seconded and unanimously. b. Approve the Interlocal Agreement for the IMR Global Center Project between the CRA of the City of Clearwater and the City of Clearwater The Agreement for Development and Disposition of Property (IMR Global Center Project) between the CRA of the City of Clearwater and IMR has been negotiated. The CRA agrees to sell to IMR the 14.3-acre site, minus 23 feet on the west side of the property for approximately $1.5 million. IMR proposes to build 150,000 to 180,000 square feet of headquarters, research and development, and training facilities in 3 buildings. The Interlocal Agreement for the IMR Global Center project will facilitate the implementation of the Development Agreement. mcr06b98 2 06/18/98 Trustee Hooper moved to approve in substantive form the Interlocal Agreement for the IMR Global Center Project between the CRA of the City of Clearwater and the City of Clearwater. The motioncarried was duly seconded and unanimously. Item #3 - Assistant City Manager Verbal Reports - None. Item #4 - Other Business - None. Item #5 - Adjournment The meeting adjourned at 4:59 p.m. mcr06b98 3 06/18/98