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03/04/2002 COMMUNITY REDEVELOPMENT AGENCY MEETING CITY OF CLEARWATER March 4, 2002 Present: Brian J. Aungst Chair/CRA Trustee Ed Hart CRA Trustee Whitney Gray CRA Trustee Hoyt P. Hamilton CRA Trustee William C. Jonson CRA Trustee Glenn Warren Ex-Officio Mary Rogero Ex-Officio Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Ralph Stone CRA Executive Director/Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 9:05 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 – Approval of the Minutes Trustee Gray moved to approve the minutes of the regular meeting of February 4, 2002, motion as recorded and submitted in written summation by the City Clerk to each Trustee. The carried was duly seconded and unanimously. ITEM #3 - CRA (Community Redevelopment Agency) Rules Rules governing the CRA (Community Redevelopment Agency) have not been updated since 1993. For the most part, the rules do not need to be changed. Some procedures have changed since the last rules change was adopted. Major changes relate to City Clerk responsibilities to record minutes, keep records, and distribute agendas, and Executive Director responsibilities. In response to a question regarding Rule 2, the City Attorney stated the CRA is an independent agency that could hire an Executive Director directly. Rule 2 delegates hiring the Executive Director to the City Manager and requires the CRA to concur with the City Manager’s choice. A scrivener’s error in Rule 3 was pointed out. motion Trustee Gray moved to approve revisions to the CRA Rules. The was duly carried seconded and unanimously. ITEM #4 - Approve Development Agreement between the Community Redevelopment Agency The Balk Company, Inc of the City of Clearwater and . for a residential townhome development proposal fronting on Cleveland Street. mcr03a02 1 03/04/02 In December 1999, the CRA issued a RFP (Request for Proposals) for development of an approximately 5.4-acre site, commonly known as the Dimmitt property, fronting Cleveland Street. As a result, the CRA selected The Balk Company, Inc. to negotiate the site’s redevelopment in conjunction with City proposed development of the City lake and adjoining public park. The Balk Company proposes to construct 100 residential townhomes, a swimming pool, and community facility. The development agreement between the CRA and The Balk Company defines the terms of land acquisition, timing and scope of the development, environmental responsibilities, and development incentives. The Balk Company anticipates purchasing the 235,298 square-foot property at a rate of $7.75/squre-foot or $1,823,560 in phases: 1) $287,657 - 37,117 square-feet; 2) $935,735 - 120,740 square-feet; and 3) $600,168 - 77,441 square-feet. The Interlocal Agreement provides that the City will take necessary steps to declare surplus and sell to the CRA property necessary for the project. The CRA and Brownfields Program, on behalf of the project, agree to pay an estimated $386,771 for certain development related fees, including impact, permit, utility connection, and stormwater ”buy-in” fees. Fees will be paid as construction occurs. Pursuant to Resolution #99-43, the City agreed to reduce the CRA funded Stormwater buy-in fee from $200,000 to $100,000. Pursuant to the Brownfields Site Rehabilitation Agreement entered into between the City and FDEP (Florida Department of Environmental Protection), the City has committed to certain remedial actions on the property. State and Federal Brownfields Programs have funded the total site cleanup costs of $834,447, to date. The City will have the responsibility to hold The Balk Company harmless for pre-existing environmental issues related to existing site conditions. The City will bear additional construction costs, if any, related to groundwater contamination. The total construction value of the project at build-out is estimated to be $16,425,000. A total of $224,808 of annual ad valorem and non ad valorem revenues are projected at build-out. Ex-Officio Members Glenn Warren and Mary Rogero spoke in support of the project as important to the Main Street Community program and Downtown development. Bruce Balk, of The Balk Company, Inc., reviewed the project and said the project will have a homeowners association as the land will be deeded out fee simple. Each 2- and 3- bedroom unit will have security gate. He presented elevations of the project. He said some units already are sold. In response to a question, Mr. Balk said when the City takes over responsibility of Cleveland Street from FDOT (Florida Department of Transportation) the project will landscape the resulting additional 4 feet of available right-of-way, which is outside the development’s wall. The City Attorney referenced page 42 of the Development Agreement and reported the date February 14, 2002, has been amended to March 21, 2002. Trustee Gray moved to approve the Development Agreement between the Community Redevelopment Agency of the City of Clearwater and The Balk Company, Inc. for a residential townhome development proposal fronting on Cleveland Street, and that the appropriate officials motioncarried be authorized to execute same. The was duly seconded and unanimously. Interlocal Agreement ITEM #5 - Approve the between the Community Redevelopment Agency The Balk Company, Inc. of the City of Clearwater and the City of Clearwater regarding residential townhome development proposal fronting on Cleveland Street, and authorize the payment of $386,771 in various development, impact, and stormwater fees to the City over a three year period in Fiscal Years 2001/02 through 2003/04. mcr03a02 2 03/04/02 In addition to information listed under Item #4, The Balk Company, Inc. has agreed to pay $130,000 for soil remediation on the Stage II property and will be responsible for all backfill costs on the site. In addition, the City will provide an estimated $101,300 to finish the soil remediation and provide water quality monitoring. The CRA will have the responsibility to hold The Balk Company, Inc. harmless on pre-existing environmental issues related to existing site conditions. The City Attorney reported changes to the Interlocal Agreement’s language related to environmental issues matches language in the Development Agreement. In response to a question, the City Attorney reviewed responsibilities of the City Commission when acting as the CRA. Trustee Jonson moved to approve the Interlocal Agreement between the Community Redevelopment Agency of the City of Clearwater and the City of Clearwater regarding The Balk Company, Inc. residential townhome development proposal fronting on Cleveland Street and authorize payment of $386,771 in various development, impact, and stormwater fees to the City over a three-year period in Fiscal Years 2001/02 through 2003/04, and that the appropriate motion carried officials be authorized to execute same. The was duly seconded and unanimously. ITEM #6 - Executive Director (Assistant City Manager) Verbal Reports CRA Executive Director/Assistant City Manager Ralph Stone complimented Trustees Gray and Hamilton for their time and commitment as Ex-Officio Members of the DDB (Downtown Development Board) and contributions to the development on a strategic action plan for downtown. Mr. Stone thanked City Attorney Pam Akin for her many hours of work in developing and assembling the development and interlocal agreements regarding The Balk Company, Inc. project. ITEM #7 - Other Business It was suggested the City consider applying for designation of the downtown as a Historic District to qualify for available tax credits. Mr. Warren reported about 10 years ago, many downtown property owners had opposed a similar initiative. He suggested the issue could be revisited as some property ownership has since changed. ITEM #8 - Adjournment The meeting adjourned at 9:35 a.m. mcr03a02 3 03/04/02